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  KEY: stricken = old language to be removed
  underscored = new language to be added
							
     a17-0414

1.1Senator .................... moves to amend S.F. No. 605 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1
1.4STATE GOVERNMENT APPROPRIATIONS

1.5
Section 1. APPROPRIATIONS.
1.6The sums shown in the columns marked "Appropriations" are appropriated to the agencies
1.7and for the purposes specified in this article. The appropriations are from the general fund,
1.8or another named fund, and are available for the fiscal years indicated for each purpose.
1.9The figures "2018" and "2019" used in this article mean that the appropriations listed under
1.10them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
1.11"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
1.12is fiscal years 2018 and 2019.
1.13
APPROPRIATIONS
1.14
Available for the Year
1.15
Ending June 30
1.16
2018
2019

1.17
Sec. 2. LEGISLATURE
1.18
Subdivision 1.Total Appropriation
$
83,057,000
$
82,123,000
1.19
Appropriations by Fund
1.20
2018
2019
1.21
General
82,929,000
81,995,000
1.22
Health Care Access
128,000
128,000
1.23The amounts that may be spent for each
1.24purpose are specified in the following
1.25subdivisions.
1.26
Subd. 2.Senate
32,299,000
32,105,000
1.27
Subd. 3.House of Representatives
32,383,000
32,383,000
1.28
Subd. 4.Legislative Coordinating Commission
18,375,000
17,635,000
1.29
Appropriations by Fund
1.30
General
18,247,000
17,507,000
1.31
Health Care Access
128,000
128,000
1.32Appropriations provided by this subdivision
1.33may be used for designated staff to support
2.1the following offices and commissions: Office
2.2of the Legislative Auditor; Office of the
2.3Revisor of Statutes; Legislative Reference
2.4Library; Geographic Information Services;
2.5Legislative Budget Office; Legislative-Citizen
2.6Commission on Minnesota Resources;
2.7Legislative Commission on Pensions and
2.8Retirement; Legislative Energy Commission;
2.9and the Lessard-Sams Outdoor Heritage
2.10Council. The operation of all other joint
2.11offices and commissions must be supported
2.12by the central administrative staff of the
2.13Legislative Coordinating Commission. This
2.14appropriation may additionally be used for
2.15central administrative staff to support the work
2.16of the Economic Status of Women Advisory
2.17Committee.
2.18From its funds, $10,000 each year is for
2.19purposes of the legislators' forum, through
2.20which Minnesota legislators meet with
2.21counterparts from South Dakota, North
2.22Dakota, and Manitoba to discuss issues of
2.23mutual concern.
2.24Legislative Auditor. $6,744,000 the first year
2.25and $6,564,000 the second year are for the
2.26Office of the Legislative Auditor.
2.27Of these amounts, $130,000 the first year is
2.28for the transit financial activity reviews
2.29required by Minnesota Statutes, section 3.972,
2.30subdivision 4.
2.31No later than January 15, 2018, the legislative
2.32auditor must complete a review of the small
2.33business investment tax credit incentive
2.34established in Minnesota Statutes, section
2.35116J.8737. The review must follow the
3.1evaluation plan established for review of a
3.2general incentive program under Minnesota
3.3Statutes, section 3.9735, subdivision 4.
3.4No later than January 15, 2018, the legislative
3.5auditor must complete an assessment of the
3.6adequacy of the county audits performed by
3.7the state auditor in calendar year 2016. The
3.8standards for conducting the assessment must
3.9be identical to those described in the report of
3.10the state auditor dated March 2017, titled
3.11"Assessing the Adequacy of 2015 County
3.12Audits Performed by Private CPA Firms."
3.13Revisor of Statutes. $6,430,000 the first year
3.14and $6,093,000 the second year are for the
3.15Office of the Revisor of Statutes.
3.16Of these amounts, $250,000 in the first year
3.17is for upgrades and repairs to the information
3.18technology data center located in the State
3.19Office Building.
3.20Legislative Budget Office. $864,000 the first
3.21year and $818,000 the second year are for the
3.22Legislative Budget Office established in
3.23section 3.8853.
3.24Legislative Reference Library. $1,622,000
3.25the first year and $1,445,000 the second year
3.26are for the Legislative Reference Library.
3.27Of these amounts, $177,000 the first year is
3.28for the digital preservation of audio recordings
3.29documenting committee hearings and floor
3.30sessions of the legislature.

3.31
3.32
Sec. 3. GOVERNOR AND LIEUTENANT
GOVERNOR
$
4,403,000
$
4,403,000
4.1(a) This appropriation is to fund the Office of
4.2the Governor and Lieutenant Governor.
4.3(b) Up to $19,000 the first year and up to
4.4$19,000 the second year are for necessary
4.5expenses in the normal performance of the
4.6Governor's and Lieutenant Governor's duties
4.7for which no other reimbursement is provided.
4.8(c) The following amounts that are
4.9appropriated from the general fund in fiscal
4.10years 2018 and 2019 to the specified agency
4.11and are budgeted to be transferred to the
4.12governor for personnel costs incurred by the
4.13Offices of the Governor and the Lieutenant
4.14Governor to support the agencies are canceled
4.15to the general fund and the base for each
4.16agency is reduced by the specified amount for
4.17fiscal years 2020 and 2021.
4.18
Agency
2018
2019
4.19
Commerce
67,000
67,000
4.20
4.21
Employment and
Economic Development
109,000
109,000
4.22
Education
58,000
58,000
4.23
4.24
Office of Higher
Education
25,000
25,000
4.25
Administration
25,000
25,000
4.26
4.27
Management and
Budget
21,000
21,000
4.28
MN.IT Services
25,000
25,000
4.29
Revenue
41,000
41,000
4.30
Health
58,000
58,000
4.31
Human Services
247,000
247,000
4.32
Veterans Affairs
16,000
16,000
4.33
Military Affairs
17,000
17,000
4.34
Corrections
58,000
58,000
4.35
Transportation
20,000
20,000
4.36(d) Appropriations provided by this section
4.37may not be used to support the hiring of
5.1additional personnel in the Office of the
5.2Governor, to support current personnel in the
5.3office assigned to oversee federal policy or
5.4federal government relations, or to maintain
5.5office space located in the District of
5.6Columbia.

5.7
Sec. 4. STATE AUDITOR
5.8
Subdivision 1.Total Appropriation
$
9,243,000
$
9,488,000
5.9The amounts that may be spent for each
5.10purpose are specified in the following
5.11subdivisions.
5.12
Subd. 2.Audit Practice
7,449,000
7,694,000
5.13Notwithstanding Minnesota Statutes, section
5.146.581, subdivision 3, or any other law to the
5.15contrary, the rates included in the state
5.16auditor's schedule of charges for examinations
5.17conducted in fiscal years 2018 and 2019 must
5.18be no greater than the rates included in the
5.19schedule of charges established for
5.20examinations conducted in calendar year 2016.
5.21
Subd. 3.Legal and Special Investigations
272,000
272,000
5.22
Subd. 4.Government Information
511,000
511,000
5.23
Subd. 5.Pension Oversight
485,000
485,000
5.24
Subd. 6.Operations Management
305,000
305,000
5.25
Subd. 7.Constitutional Office
221,000
221,000

5.26
Sec. 5. ATTORNEY GENERAL
5.27
Subdivision 1.Total Appropriation
$
23,265,000
$
23,265,000
5.28
Appropriations by Fund
5.29
2018
2019
5.30
General
20,465,000
20,465,000
5.31
5.32
State Government
Special Revenue
2,405,000
2,405,000
5.33
Environmental
145,000
145,000
6.1
Remediation
250,000
250,000
6.2The amounts that may be spent for each
6.3purpose are specified in the following
6.4subdivisions.
6.5
Subd. 2.Government Legal Services
3,652,000
3,652,000
6.6
Subd. 3.Regulatory Law and Professions
5,002,000
5,002,000
6.7
Appropriations by Fund
6.8
2018
2019
6.9
General
2,223,000
2,223,000
6.10
6.11
State Government
Special Revenue
2,384,000
2,384,000
6.12
Environmental
250,000
250,000
6.13
Remediation
145,000
145,000
6.14
Subd. 4.State Government Services
6,157,000
6,157,000
6.15
Appropriations by Fund
6.16
2018
2019
6.17
General
6,136,000
6,136,000
6.18
6.19
State Government
Special Revenue
21,000
21,000
6.20
Subd. 5.Civil Law Section
3,010,000
3,010,000
6.21
Subd. 6.Civil Litigation
1,495,000
1,495,000
6.22
Subd. 7.Administrative Operations
3,949,000
3,949,000

6.23
Sec. 6. SECRETARY OF STATE
6.24
Subdivision 1.Total Appropriation
$
5,419,000
$
5,530,000
6.25The base for fiscal year 2020 is $5,419,000
6.26and the base for fiscal year 2021 is
6.27$5,419,000.
6.28The amounts that may be spent for each
6.29purpose are specified in the following
6.30subdivisions.
6.31
Subd. 2.Administration
512,000
525,000
6.32
Subd. 3.Safe at Home
659,000
676,000
6.33
Subd. 4.Business Services
1,422,000
1,174,000
7.1
Subd. 5.Elections
2,826,000
3,155,000

7.2
7.3
Sec. 7. CAMPAIGN FINANCE AND PUBLIC
DISCLOSURE BOARD
$
924,000
$
924,000

7.4
Sec. 8. STATE BOARD OF INVESTMENT
$
139,000
$
139,000

7.5
Sec. 9. ADMINISTRATIVE HEARINGS
7.6
Subdivision 1.Total Appropriation
$
8,170,000
$
8,170,000
7.7
Appropriations by Fund
7.8
2018
2019
7.9
General
383,000
383,000
7.10
7.11
Workers'
Compensation
7,787,000
7,787,000
7.12The amounts that may be spent for each
7.13purpose are specified in the following
7.14subdivisions.
7.15
Subd. 2.Campaign Violations
115,000
115,000
7.16These amounts are for the cost of considering
7.17complaints filed under Minnesota Statutes,
7.18section 211B.32. These amounts may be used
7.19in either year of the biennium.
7.20
Subd. 3.Data Practices
6,000
6,000
7.21These amounts are for the cost of considering
7.22data practices complaints filed under
7.23Minnesota Statutes, section 13.085. These
7.24amounts may be used in either year of the
7.25biennium.
7.26
Subd. 4.Municipal Boundary Adjustments
262,000
262,000

7.27
Sec. 10. OFFICE OF MN.IT SERVICES
7.28
Subdivision 1.Total Appropriation
$
2,622,000
$
2,622,000
7.29The amounts that may be spent for each
7.30purpose are specified in the following
7.31subdivisions.
8.1The state chief information officer must
8.2prioritize use of appropriations provided by
8.3this section to enhance cybersecurity across
8.4state government.
8.5
Subd. 2.State Chief Information Officer
1,316,000
1,316,000
8.6The commissioner of management and budget
8.7is authorized to provide cash flow assistance
8.8of up to $110,000,000 from the special
8.9revenue fund or other statutory general funds
8.10as defined in Minnesota Statutes, section
8.1116A.671, subdivision 3, paragraph (a), to the
8.12Office of MN.IT Services for the purpose of
8.13managing revenue and expenditure
8.14differences. These funds shall be repaid with
8.15interest by the end of the fiscal year 2019
8.16closing period.
8.17During the biennium ending June 30, 2019,
8.18the Office of MN.IT Services must not charge
8.19fees to a public noncommercial educational
8.20television broadcast station eligible for funding
8.21under Minnesota Statutes, chapter 129D, for
8.22access to the state broadcast infrastructure. If
8.23the access fees not charged to public
8.24noncommercial educational television
8.25broadcast stations total more than $400,000
8.26for the biennium, the office may charge for
8.27access fees in excess of these amounts.
8.28
Subd. 3.Geospatial Information Office
871,000
871,000
8.29
Subd. 4.Enterprise IT Security
435,000
435,000

8.30
Sec. 11. ADMINISTRATION
8.31
Subdivision 1.Total Appropriation
$
19,984,000
$
19,584,000
8.32The amounts that may be spent for each
8.33purpose are specified in the following
8.34subdivisions.
9.1
Subd. 2.Government and Citizen Services
7,013,000
7,013,000
9.2This appropriation includes funds for
9.3information technology project services and
9.4support subject to the provisions of Minnesota
9.5Statutes, section 16E.0466. Any ongoing
9.6information technology costs must be
9.7incorporated into the service level agreement
9.8and must be paid to the Office of MN.IT
9.9Services by the commissioner of
9.10administration under the rates and mechanism
9.11specified in that agreement.
9.12Appropriations provided by this section may
9.13not be used to fund continuous improvement
9.14initiatives, including the Office of Continuous
9.15Improvement (LEAN).
9.16Council on Developmental Disabilities.
9.17$74,000 the first year and $74,000 the second
9.18year are for the Council on Developmental
9.19Disabilities.
9.20Olmstead Plan. $148,000 each year is for the
9.21Olmstead plan.
9.22Materials Management. $2,139,000 each
9.23year is for materials management.
9.24Plant Management. $390,000 each year is
9.25for plant management.
9.26$7,500,000 the first year of the balance in the
9.27facility repair and replacement account in the
9.28special revenue fund is canceled to the general
9.29fund. These amounts are in addition to
9.30amounts transferred under Minnesota Statutes,
9.31section 16B.24, subdivision 5, paragraph (d).
10.1Real Estate and Construction Services.
10.2$2,198,000 each year is for real estate and
10.3construction services.
10.4Enterprise Real Property. $601,000 each
10.5year is for enterprise real property.
10.6State Agency Accommodation
10.7Reimbursement. $200,000 the first year and
10.8$200,000 the second year are credited to the
10.9accommodation account established in
10.10Minnesota Statutes, section 16B.4805.
10.11Community Services. $1,263,000 each year
10.12is for community services.
10.13(a) $192,000 the first year and $192,000 the
10.14second year are for the state archaeologist.
10.15(b) $468,000 the first year and $468,000 the
10.16second year are for information policy
10.17analysis.
10.18(c) $487,000 the first year and $487,000 the
10.19second year are for the state demographer.
10.20(d) $116,000 the first year and $116,000 the
10.21second year are for the Office of Grants
10.22Management.
10.23
Subd. 3.Strategic Management Services
1,794,000
1,794,000
10.24Executive Leadership/Partnerships.
10.25$528,000 each year is for executive
10.26leadership/partnerships.
10.27School Trust Lands Director. $185,000 each
10.28year is for school trust lands director.
10.29Financial Management and Reporting.
10.30$706,000 each year is for financial
10.31management and reporting.
11.1Human Resources. $375,000 each year is for
11.2human resources.
11.3
Subd. 4.Fiscal Agent
11,177,000
10,777,000
11.4In-Lieu of Rent. $8,158,000 the first year and
11.5$8,158,000 the second year are for space costs
11.6of the legislature and veterans organizations,
11.7ceremonial space, and statutorily free space.
11.8Public Television. (a) $1,550,000 the first
11.9year and $1,550,000 the second year are for
11.10matching grants for public television.
11.11(b) $250,000 the first year and $250,000 the
11.12second year are for public television
11.13equipment grants under Minnesota Statutes,
11.14section 129D.13.
11.15(c) The commissioner of administration must
11.16consider the recommendations of the
11.17Minnesota Public Television Association
11.18before allocating the amounts appropriated in
11.19paragraphs (a) and (b) for equipment or
11.20matching grants.
11.21Public Radio. (a) $392,000 the first year and
11.22$392,000 the second year are for community
11.23service grants to public educational radio
11.24stations. This appropriation may be used to
11.25disseminate emergency information in foreign
11.26languages.
11.27(b) $117,000 the first year and $117,000 the
11.28second year are for equipment grants to public
11.29educational radio stations. This appropriation
11.30may be used for the repair, rental, and
11.31purchase of equipment including equipment
11.32under $500.
11.33(c) $310,000 the first year and $310,000 the
11.34second year are for equipment grants to
12.1Minnesota Public Radio, Inc., including
12.2upgrades to Minnesota's Emergency Alert and
12.3AMBER Alert Systems.
12.4(d) $400,000 the first year is for a grant to
12.5Minnesota Public Radio, Inc. for upgrades to
12.6Minnesota's Emergency Alert and AMBER
12.7Alert Systems.
12.8(e) The appropriations in paragraphs (a) to (d)
12.9may not be used for indirect costs claimed by
12.10an institution or governing body.
12.11(f) The commissioner of administration must
12.12consider the recommendations of the
12.13Association of Minnesota Public Educational
12.14Radio Stations before awarding grants under
12.15Minnesota Statutes, section 129D.14, using
12.16the appropriations in paragraphs (a) and (b).
12.17No grantee is eligible for a grant unless they
12.18are a member of the Association of Minnesota
12.19Public Educational Radio Stations on or before
12.20July 1, 2017.
12.21(g) Any unencumbered balance remaining the
12.22first year for grants to public television or
12.23public radio stations does not cancel and is
12.24available for the second year.

12.25
12.26
Sec. 12. CAPITOL AREA ARCHITECTURAL
AND PLANNING BOARD
$
345,000
$
345,000

12.27
12.28
Sec. 13. MINNESOTA MANAGEMENT AND
BUDGET
$
17,920,000
$
18,320,000
12.29
Subdivision 1.Appropriations
12.30The amounts that may be spent for each
12.31purpose are specified in the following
12.32subdivisions.
13.1This appropriation includes funds for
13.2information technology project services and
13.3support subject to the provisions of Minnesota
13.4Statutes, section 16E.0466. Any ongoing
13.5information technology costs must be
13.6incorporated into the service level agreement
13.7and must be paid to the Office of MN.IT
13.8Services by the commissioner of management
13.9and budget under the rates and mechanism
13.10specified in that agreement.
13.11
Subd. 2.Accounting Services
3,758,000
3,958,000
13.12
Subd. 3.Budget Services
2,416,000
2,616,000
13.13
Subd. 4.Economic Analysis
424,000
424,000
13.14
Subd. 5.Debt Management
367,000
367,000
13.15
13.16
Subd. 6.Enterprise Communications and
Planning
830,000
830,000
13.17
Subd. 7.Enterprise Human Resources
2,681,000
2,681,000
13.18Appropriations provided by this section or
13.19transferred to the commissioner from another
13.20agency may not be used to support a statewide
13.21executive recruiting program.
13.22
Subd. 8.Labor Relations
868,000
868,000
13.23
Subd. 9.Agency Administration
6,576,000
6,576,000
13.24No later than June 30, 2018, the commissioner
13.25must credit at least $1,000,000 to the general
13.26fund based on savings realized through
13.27implementation of the employee gainsharing
13.28program required by Minnesota Statutes,
13.29section 16A.90. If a credit of at least this
13.30amount has not been made to the general fund
13.31as of that date, the appropriation provided in
13.32this subdivision for fiscal year 2019 is reduced
13.33in an amount equal to the difference between
13.34the amount actually credited to the general
14.1fund and the total credit required by this
14.2paragraph.

14.3
Sec. 14. REVENUE
14.4
Subdivision 1.Total Appropriation
$
141,485,000
$
141,310,000
14.5
Appropriations by Fund
14.6
2018
2019
14.7
General
137,249,000
137,074,000
14.8
Health Care Access
1,749,000
1,749,000
14.9
14.10
Highway User Tax
Distribution
2,184,000
2,184,000
14.11
Environmental
303,000
303,000
14.12Notwithstanding the appropriations provided
14.13by this section, the amounts allocated for tax
14.14compliance activities of the department must
14.15be no less than the amounts allocated for those
14.16activities during fiscal year 2017, and the
14.17commissioner must prioritize processing
14.18personal income tax returns, taxpayer fraud
14.19prevention, and assuring that taxpayer refunds
14.20are not delayed when determining spending
14.21plans for each of the activities in this section.
14.22This appropriation includes funds for
14.23information technology project services and
14.24support subject to the provisions of Minnesota
14.25Statutes, section 16E.0466. Any ongoing
14.26information technology costs must be
14.27incorporated into the service level agreement
14.28and must be paid to the Office of MN.IT
14.29Services by the commissioner of revenue
14.30under the rates and mechanism specified in
14.31that agreement.
14.32
Subd. 2.Tax System Management
114,128,000
113,953,000
14.33
Appropriations by Fund
14.34
2018
2019
14.35
General
109,892,000
109,717,000
15.1
Health Care Access
1,749,000
1,749,000
15.2
15.3
Highway User Tax
Distribution
2,184,000
2,184,000
15.4
Environmental
303,000
303,000
15.5
(a) Operations Support
15.6
General
9,356,000
9,356,000
15.7
Health Care Access
126,000
126,000
15.8
(b) Appeals, Legal Services, and Tax Research
15.9
General
6,932,000
6,932,000
15.10
Health Care Access
113,000
113,000
15.11
(c) Payment and Return Processing
15.12
General
12,927,000
12,927,000
15.13
Health Care Access
51,000
51,000
15.14
15.15
Highway User Tax
Distribution
343,000
343,000
15.16
(d) Administration of State Taxes
15.17
General
54,904,000
54,729,000
15.18
Health Care Access
1,407,000
1,407,000
15.19
15.20
Highway User Tax
Distribution
1,621,000
1,621,000
15.21
Environmental
303,000
303,000
15.22(1) $15,000 from the general fund in the first
15.23year is for preparing and submitting a
15.24supplemental 2017 tax incidence report
15.25meeting the requirements of Minnesota
15.26Statutes, section 270C.13, subdivision 1, as
15.27amended by this act. The supplemental report
15.28must be completed and submitted no later than
15.29January 2, 2018.
15.30(2) $160,000 from the general fund in the first
15.31year is for administration of a first-time home
15.32buyer savings account program. This
15.33appropriation is canceled to the general fund
15.34if income tax provisions related to first-time
15.35home buyer savings accounts are not enacted
16.1by law at the 2017 regular or special
16.2legislative session.
16.3
16.4
(e) Technology Development, Implementation,
and Support
16.5
General
21,781,000
21,781,000
16.6
Health Care Access
52,000
52,000
16.7
16.8
Highway User Tax
Distribution
220,000
220,000
16.9
(f) Property Tax Administration and State Aid
16.10
General
3,992,000
3,992,000
16.11
Subd. 3.Debt Collection Management
27,357,000
27,357,000

16.12
Sec. 15. HUMAN RIGHTS
$
3,954,000
$
3,954,000

16.13
Sec. 16. GAMBLING CONTROL
$
3,422,000
$
3,457,000
16.14These appropriations are from the lawful
16.15gambling regulation account in the special
16.16revenue fund.

16.17
Sec. 17. RACING COMMISSION
$
845,000
$
908,000
16.18These appropriations are from the racing and
16.19card playing regulation accounts in the special
16.20revenue fund.

16.21
Sec. 18. STATE LOTTERY
16.22Notwithstanding Minnesota Statutes, section
16.23349A.10 , subdivision 3, the State Lottery's
16.24operating budget must not exceed $32,500,000
16.25in fiscal year 2018 and $33,000,000 in fiscal
16.26year 2019.

16.27
Sec. 19. AMATEUR SPORTS COMMISSION
$
300,000
$
300,000

16.28
16.29
Sec. 20. COUNCIL ON MINNESOTANS OF
AFRICAN HERITAGE
$
401,000
$
401,000

16.30
Sec. 21. COUNCIL ON LATINO AFFAIRS
$
386,000
$
386,000

17.1
17.2
Sec. 22. COUNCIL ON ASIAN-PACIFIC
MINNESOTANS
$
364,000
$
364,000

17.3
Sec. 23. INDIAN AFFAIRS COUNCIL
$
576,000
$
576,000

17.4
17.5
Sec. 24. MINNESOTA HISTORICAL
SOCIETY
17.6
Subdivision 1.Total Appropriation
$
22,893,000
$
22,893,000
17.7The amounts that may be spent for each
17.8purpose are specified in the following
17.9subdivisions.
17.10
Subd. 2.Operations and Programs
22,572,000
22,572,000
17.11$750,000 the first year and $750,000 the
17.12second year are for digital preservation and
17.13access, including planning and implementation
17.14of a program to preserve and make available
17.15resources related to Minnesota history. These
17.16are onetime appropriations.
17.17
Subd. 3.Fiscal Agent
17.18
(a) Global Minnesota
39,000
39,000
17.19
(b) Minnesota Air National Guard Museum
17,000
17,000
17.20
(c) Minnesota Military Museum
50,000
50,000
17.21
(d) Farmamerica
115,000
115,000
17.22
(e) Hockey Hall of Fame
100,000
100,000
17.23Any unencumbered balance remaining in this
17.24subdivision the first year does not cancel but
17.25is available for the second year of the
17.26biennium.

17.27
Sec. 25. BOARD OF THE ARTS
17.28
Subdivision 1.Total Appropriation
$
7,530,000
$
7,530,000
17.29The amounts that may be spent for each
17.30purpose are specified in the following
17.31subdivisions.
18.1
Subd. 2.Operations and Services
591,000
591,000
18.2
Subd. 3.Grants Program
4,800,000
4,800,000
18.3
Subd. 4.Regional Arts Councils
2,139,000
2,139,000
18.4Any unencumbered balance remaining in this
18.5section the first year does not cancel, but is
18.6available for the second year.
18.7Money appropriated in this section and
18.8distributed as grants may only be spent on
18.9projects located in Minnesota. A recipient of
18.10a grant funded by an appropriation in this
18.11section must not use more than five percent
18.12of the total grant for costs related to travel
18.13outside the state of Minnesota.

18.14
Sec. 26. MINNESOTA HUMANITIES CENTER
$
950,000
$
950,000
18.15(a) $325,000 each year is for the Healthy
18.16Eating, Here at Home program under
18.17Minnesota Statutes, section 138.912. No more
18.18than three percent of the appropriation may
18.19be used for the nonprofit administration of this
18.20program.
18.21(b) $250,000 each year is for grants to the
18.22Veterans Defense Project. Grants must be used
18.23to support, through education and outreach,
18.24military veterans who are involved with the
18.25criminal justice system. These are onetime
18.26appropriations.

18.27
Sec. 27. BOARD OF ACCOUNTANCY
$
641,000
$
641,000

18.28
18.29
18.30
18.31
Sec. 28. BOARD OF ARCHITECTURE
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
794,000
$
794,000

18.32
18.33
Sec. 29. BOARD OF COSMETOLOGIST
EXAMINERS
$
1,346,000
$
1,346,000
19.1The executive director must report quarterly
19.2to the chairs and ranking minority members
19.3of the committees in the house of
19.4representatives and senate with jurisdiction
19.5over state government finance on the number
19.6of inspections conducted by license type in
19.7the past quarter, number and percent of total
19.8salons and schools inspected within the last
19.9year, total number of licensees by type, and
19.10the number of inspectors employed by the
19.11board. The first report must be submitted by
19.12July 15, 2017.

19.13
Sec. 30. BOARD OF BARBER EXAMINERS
$
325,000
$
325,000

19.14
19.15
Sec. 31. GENERAL CONTINGENT
ACCOUNTS
$
750,000
$
500,000
19.16
Appropriations by Fund
19.17
2018
2019
19.18
General
250,000
-0-
19.19
19.20
State Government
Special Revenue
400,000
400,000
19.21
19.22
Workers'
Compensation
100,000
100,000
19.23(a) The appropriations in this section may only
19.24be spent with the approval of the governor
19.25after consultation with the Legislative
19.26Advisory Commission pursuant to Minnesota
19.27Statutes, section 3.30.
19.28(b) If an appropriation in this section for either
19.29year is insufficient, the appropriation for the
19.30other year is available for it.
19.31(c) If a contingent account appropriation is
19.32made in one fiscal year, it should be
19.33considered a biennial appropriation.

19.34
Sec. 32. TORT CLAIMS
$
161,000
$
161,000
20.1These appropriations are to be spent by the
20.2commissioner of management and budget
20.3according to Minnesota Statutes, section
20.43.736, subdivision 7. If the appropriation for
20.5either year is insufficient, the appropriation
20.6for the other year is available for it.

20.7
20.8
Sec. 33. MINNESOTA STATE RETIREMENT
SYSTEM
20.9
Subdivision 1.Total Appropriation
$
14,893,000
$
15,071,000
20.10The amounts that may be spent for each
20.11purpose are specified in the following
20.12subdivisions.
20.13
20.14
Subd. 2.Combined Legislators and
Constitutional Officers Retirement Plan
8,893,000
9,071,000
20.15Under Minnesota Statutes, sections 3A.03,
20.16subdivision 2; 3A.04, subdivisions 3 and 4;
20.17and 3A.115.
20.18If an appropriation in this section for either
20.19year is insufficient, the appropriation for the
20.20other year is available for it.
20.21
Subd. 3.Judges Retirement Plan
6,000,000
6,000,000
20.22For transfer to the judges retirement fund
20.23under Minnesota Statutes, section 490.123.
20.24$6,000,000 each fiscal year is included in the
20.25base for fiscal years 2020 and 2021. This
20.26transfer continues each fiscal year until the
20.27judges retirement plan reaches 100 percent
20.28funding as determined by an actuarial
20.29valuation prepared according to Minnesota
20.30Statutes, section 356.214.

20.31
20.32
Sec. 34. PUBLIC EMPLOYEES RETIREMENT
ASSOCIATION
$
6,000,000
$
6,000,000
21.1General employees retirement plan of the
21.2Public Employees Retirement Association
21.3relating to the merged former MERF division.
21.4State payments from the general fund to the
21.5Public Employees Retirement Association on
21.6behalf of the former MERF division account
21.7are $6,000,000 on September 15, 2017, and
21.8$6,000,000 on September 15, 2018.
21.9These amounts are estimated to be needed
21.10under Minnesota Statutes, section 353.505.

21.11
21.12
Sec. 35. TEACHERS RETIREMENT
ASSOCIATION
$
29,831,000
$
29,831,000
21.13The amounts estimated to be needed are as
21.14follows:
21.15Special Direct State Aid. $27,331,000 the
21.16first year and $27,331,000 the second year are
21.17for special direct state aid authorized under
21.18Minnesota Statutes, section 354.436.
21.19Special Direct State Matching Aid.
21.20$2,500,000 the first year and $2,500,000 the
21.21second year are for special direct state
21.22matching aid authorized under Minnesota
21.23Statutes, section 354.435.

21.24
21.25
Sec. 36. ST. PAUL TEACHERS RETIREMENT
FUND
$
9,827,000
$
9,827,000
21.26The amounts estimated to be needed for
21.27special direct state aid to the first class city
21.28teachers retirement fund association authorized
21.29under Minnesota Statutes, section 354A.12,
21.30subdivisions 3a and 3c.

21.31
Sec. 37. MILITARY AFFAIRS
21.32
Subdivision 1.Total Appropriation
$
25,616,000
$
19,616,000
22.1The amounts that may be spent for each
22.2purpose are specified in the following
22.3subdivisions.
22.4
Subd. 2.Maintenance of Training Facilities
9,661,000
9,661,000
22.5Of the funds transferred to maintenance of
22.6training facilities in Laws 2015, chapter 77,
22.7article 1, section 36, subdivision 4, $2,000,000
22.8in fiscal year 2017 may be transferred to the
22.9enlistment incentives appropriation to address
22.10a projected fiscal year 2017 deficit in the
22.11enlistment incentives program.
22.12
Subd. 3.General Support
3,067,000
3,067,000
22.13
Subd. 4.Enlistment Incentives
12,888,000
6,888,000
22.14The appropriations in this subdivision are
22.15available until expended, except that any
22.16unspent amounts allocated to a program
22.17otherwise supported by this appropriation are
22.18canceled to the general fund upon receipt of
22.19federal funds in the same amount to support
22.20administration of that program.
22.21If appropriations for either year of the
22.22biennium are insufficient, the appropriation
22.23from the other year is available. The
22.24appropriations for enlistment incentives are
22.25available until June 30, 2021.

22.26
Sec. 38. VETERANS AFFAIRS
22.27
Subdivision 1.Total Appropriation
$
84,029,000
$
74,029,000
22.28The amounts that may be spent for each
22.29purpose are specified in the following
22.30subdivisions.
22.31
Subd. 2.Veterans Programs and Services
16,811,000
16,811,000
22.32Veterans Service Organizations. $353,000
22.33each year is for grants to the following
23.1congressionally chartered veterans service
23.2organizations as designated by the
23.3commissioner: Disabled American Veterans,
23.4Military Order of the Purple Heart, the
23.5American Legion, Veterans of Foreign Wars,
23.6Vietnam Veterans of America, AMVETS, and
23.7Paralyzed Veterans of America. This funding
23.8must be allocated in direct proportion to the
23.9funding currently being provided by the
23.10commissioner to these organizations.
23.11Minnesota Assistance Council for Veterans.
23.12$750,000 each year is for a grant to the
23.13Minnesota Assistance Council for Veterans
23.14to provide assistance throughout Minnesota
23.15to veterans and their families who are
23.16homeless or in danger of homelessness,
23.17including assistance with the following:
23.18(1) utilities;
23.19(2) employment; and
23.20(3) legal issues.
23.21The assistance authorized under this paragraph
23.22must be made only to veterans who have
23.23resided in Minnesota for 30 days prior to
23.24application for assistance and according to
23.25other guidelines established by the
23.26commissioner. In order to avoid duplication
23.27of services, the commissioner must ensure that
23.28this assistance is coordinated with all other
23.29available programs for veterans.
23.30Honor Guards. $200,000 each year is for
23.31compensation for honor guards at the funerals
23.32of veterans under Minnesota Statutes, section
23.33197.231.
24.1Minnesota GI Bill. $200,000 each year is for
24.2the costs of administering the Minnesota GI
24.3Bill postsecondary educational benefits,
24.4on-the-job training, and apprenticeship
24.5program under Minnesota Statutes, section
24.6197.791.
24.7Gold Star Program. $100,000 each year is
24.8for administering the Gold Star Program for
24.9surviving family members of deceased
24.10veterans.
24.11County Veterans Service Office. $1,100,000
24.12each year is for funding the County Veterans
24.13Service Office grant program under Minnesota
24.14Statutes, section 197.608.
24.15Veterans Journey Home. $350,000 each year
24.16is for grants to the veterans Journey Home
24.17program. Grants must support the development
24.18of new or rehabilitated affordable housing
24.19dedicated for low-to-moderate income
24.20veterans and their families. These are onetime
24.21appropriations.
24.22
Subd. 3.Veterans Health Care
67,218,000
57,218,000
24.23The general fund appropriations made to the
24.24department may be transferred to a veterans
24.25homes special revenue account in the special
24.26revenue fund in the same manner as other
24.27receipts are deposited according to Minnesota
24.28Statutes, section 198.34, and are appropriated
24.29to the department for the operation of veterans
24.30homes facilities and programs.
24.31No later than January 15, 2018, the
24.32commissioner must submit a report to the
24.33legislative committees with jurisdiction over
24.34veterans affairs and state government finance
25.1on reserve amounts maintained in the veterans
25.2homes special revenue account. The report
25.3must detail current and historical amounts
25.4maintained as a reserve, and uses of those
25.5amounts. The report must also include data on
25.6the utilization of existing veterans homes,
25.7including current and historical bed capacity
25.8and usage, staffing levels and staff vacancy
25.9rates, and staff-to-resident ratios.
25.10New Veterans Homes. $10,000,000 in the
25.11first year is for planning, design, construction,
25.12and operation of new veterans homes, and any
25.13other requirements necessary for federal
25.14approval of those homes. The commissioner
25.15must select locations for construction of new
25.16homes based on geographic need, consistent
25.17with any guidance or requirements provided
25.18by federal law. This is a onetime appropriation
25.19and is available until spent.
25.20Maximize Federal Reimbursements. The
25.21department will seek opportunities to
25.22maximize federal reimbursements of
25.23Medicare-eligible expenses and will provide
25.24annual reports to the commissioner of
25.25management and budget on the federal
25.26Medicare reimbursements received.
25.27Contingent upon future federal Medicare
25.28receipts, reductions to the homes' general fund
25.29appropriation may be made.

25.30    Sec. 39. PRESERVATION OF PROGRAMS AND SERVICES.
25.31To the extent that appropriations provided by this article are less than the amounts
25.32appropriated for fiscal year 2017, the affected constitutional office, agency, board, or
25.33commission must prioritize reductions to its central administration and general operations
25.34in absorbing those reductions. Costs for programs or services that are not provided a specific
26.1appropriation in this act must be funded through appropriations to the constitutional office,
26.2agency, board, or commission that are not designated for another purpose. Unless otherwise
26.3specified, reductions must not be made to programs or services of the constitutional office,
26.4agency, board, or commission that are provided directly to members of the public.

26.5    Sec. 40. APPROPRIATION CANCELLATIONS.
26.6All unspent funds estimated to be $7,166,000, as provided in Minnesota Statutes, section
26.7240A.085, under Laws 2016, chapter 189, article 13, section 56, are canceled to the general
26.8fund on June 30, 2017.

26.9    Sec. 41. SAVINGS FROM INSURANCE OPT OUT; APPROPRIATION
26.10REDUCTION FOR EXECUTIVE AGENCIES.
26.11The commissioner of management and budget must reduce general fund appropriations
26.12to executive agencies, including constitutional offices, for agency operations for the biennium
26.13ending June 30, 2019, by $4,394,000 due to savings from permitting employees to opt out
26.14of insurance coverage under the state employee group insurance coverage.
26.15If savings obtained through permitting employees to opt out of insurance coverage under
26.16the state employee group insurance coverage yield savings in nongeneral funds other than
26.17those established in the state constitution or protected by federal law, the commissioner of
26.18management and budget may transfer the amount of savings to the general fund. The amount
26.19transferred to the general fund from other funds reduces the required general fund reduction
26.20in this section. Reductions made in 2019 must be reflected as reductions in agency base
26.21budgets for fiscal years 2020 and 2021. The commissioner of management and budget must
26.22report to the chairs and ranking minority members of the committees in the senate Finance
26.23Committee and the house of representatives Ways and Means Committee regarding the
26.24amount of reductions in spending by each agency under this section.

26.25    Sec. 42. SAVINGS; APPROPRIATION REDUCTIONS FOR INFORMATION
26.26TECHNOLOGY CONSOLIDATION.
26.27(a) The commissioner of management and budget must reduce general fund appropriations
26.28to agencies subject to the executive branch information technology consolidation required
26.29by Laws 2011, First Special Session chapter 10, article 4, by at least $3,000,000 for the
26.30biennium ending June 30, 2019, to reflect savings on enterprise services personnel costs
26.31resulting from the consolidation.
27.1(b) If savings obtained through the completion of information technology consolidation
27.2yield savings in nongeneral funds other than those established in the state constitution or
27.3protected by federal law, the commissioner may transfer the amount of savings to the general
27.4fund. The amount transferred to the general fund from other funds reduces the required
27.5general fund reduction in this section. Reductions made in 2019 must be reflected as
27.6reductions in agency base budgets for fiscal years 2020 and 2021.

27.7    Sec. 43. REDUCTION IN PROFESSIONAL AND TECHNICAL SERVICES
27.8CONTRACT EXPENDITURES.
27.9During the biennium ending June 30, 2019, the commissioner of management and budget
27.10must reduce planned general fund expenditures by executive branch state agencies on
27.11contracts for professional or technical services by at least $2,255,000. The commissioner
27.12must allocate this reduction among each executive branch state agency. For purposes of
27.13this section, "professional or technical services" has the meaning given in Minnesota Statutes,
27.14section 16C.08, subdivision 1, and "executive branch state agency" has the meaning given
27.15in Minnesota Statutes, section 16A.011, subdivision 12a, and includes the Minnesota State
27.16Colleges and Universities.

27.17    Sec. 44. BASE BUDGET REPORT.
27.18No later than October 15, 2017, the commissioners of management and budget, revenue,
27.19and veterans affairs must each submit a report to the chairs and ranking minority members
27.20of the legislative committees with jurisdiction over state government finance that detail the
27.21agency's base budget, by fiscal year. At a minimum, the report must include:
27.22(1) a description of each appropriation rider enacted for the agency, and the year the
27.23rider was first enacted in a substantially similar form;
27.24(2) a description of the agency's use of appropriated funds that are not directed by a
27.25rider, including an itemization of programs that appeared in a rider in a prior biennium and
27.26continue to receive funding despite no longer appearing in a rider; and
27.27(3) an itemization of any appropriations provided to the agency under a provision of
27.28statute or the state constitution.

27.29ARTICLE 2
27.30STATE GOVERNMENT OPERATIONS

27.31    Section 1. [2.92] DISTRICTING PRINCIPLES.
28.1    Subdivision 1. Applicability. The principles in this section apply to legislative and
28.2congressional districts.
28.3    Subd. 2. Nesting. A representative district may not be divided in the formation of a
28.4senate district.
28.5    Subd. 3. Equal population. (a) Legislative districts must be substantially equal in
28.6population. The population of a legislative district must not deviate from the ideal by more
28.7than 0.5 percent, plus or minus.
28.8(b) Congressional districts must be as nearly equal in population as practicable.
28.9    Subd. 4. Contiguity; compactness. The districts must be composed of convenient
28.10contiguous territory. To the extent consistent with the other principles in this section, districts
28.11should be compact. Contiguity by water is sufficient if the water is not a serious obstacle
28.12to travel within the district. Point contiguity is not sufficient.
28.13    Subd. 5. Numbering. (a) Legislative districts must be numbered in a regular series,
28.14beginning with house district 1A in the northwest corner of the state and proceeding across
28.15the state from west to east, north to south, but bypassing the 11-county metropolitan area
28.16until the southeast corner has been reached; then to the 11-county metropolitan area. In a
28.17county that includes more than one whole senate district, the districts must be numbered
28.18consecutively.
28.19(b) Congressional district numbers must begin with district one in the southeast corner
28.20of the state and end with district eight in the northeast corner of the state.
28.21    Subd. 6. Minority representation. (a) The dilution of racial or ethnic minority voting
28.22strength is contrary to the laws of the United States and the state of Minnesota. These
28.23principles must not be construed to supersede any provision of the Voting Rights Act of
28.241965, as amended.
28.25(b) A redistricting plan must not have the intent or effect of dispersing or concentrating
28.26minority population in a manner that prevents minority communities from electing their
28.27candidates of choice.
28.28    Subd. 7. Minor civil divisions. (a) A county, city, or town must not be unduly divided
28.29unless required to meet equal population requirements or to form districts composed of
28.30convenient, contiguous territory.
28.31(b) A county, city, or town is not unduly divided in the formation of a legislative or
28.32congressional district if:
29.1(1) the division occurs because a portion of a city or town is noncontiguous with another
29.2portion of the same city or town; or
29.3(2) despite the division, the known population of any affected county, city, or town
29.4remains wholly located within a single district.
29.5    Subd. 8. Preserving communities of interest. (a) Districts should attempt to preserve
29.6identifiable communities of interest where that can be done in compliance with the principles
29.7under this section.
29.8(b) For purposes of this subdivision, "communities of interest" means recognizable areas
29.9with similarities of interests including but not limited to racial, ethnic, geographic, social,
29.10or cultural interests.
29.11    Subd. 9. Incumbents. The districts must not be drawn for the purpose of protecting or
29.12defeating an incumbent.
29.13    Subd. 10. Data to be used. (a) The geographic areas and population counts used in
29.14maps, tables, and legal descriptions of the districts must be those used by the Geographic
29.15Information Systems Office of the Legislative Coordinating Commission. The population
29.16counts shall be the block population counts provided to the state under Public Law 94-171
29.17after each decennial census, subject to correction of any errors acknowledged by the United
29.18States Census Bureau.
29.19(b) Nothing in this subdivision prohibits the use of additional data, as determined by the
29.20legislature.
29.21    Subd. 11. Consideration of plans. A redistricting plan must not be considered for
29.22adoption by the senate or house of representatives until a block equivalency file showing
29.23the district to which each census block has been assigned, in a form prescribed by the director
29.24of the Geographic Information Systems Office, has been filed with the director.
29.25    Subd. 12. Priority of principles. Where it is not possible to fully comply with the
29.26principles contained in subdivisions 2 to 9, a redistricting plan must give priority to those
29.27principles in the order in which they are listed, except to the extent that doing so would
29.28violate federal or state law.
29.29EFFECTIVE DATE. This section is effective the day following final enactment and
29.30applies to any plan for districts enacted or established for use on or after that date.

30.1    Sec. 2. Minnesota Statutes 2016, section 3.305, subdivision 1, is amended to read:
30.2    Subdivision 1. Definitions. (a) "Legislative commission" means a joint commission,
30.3committee, or other entity in the legislative branch composed exclusively of members of
30.4the senate and the house of representatives.
30.5(b) "Joint offices" means the Revisor of Statutes, Legislative Reference Library, the
30.6Office of Legislative Auditor, the Legislative Budget Office, and any other joint legislative
30.7service office.

30.8    Sec. 3. Minnesota Statutes 2016, section 3.855, subdivision 2, is amended to read:
30.9    Subd. 2. State employee negotiations. (a) The commissioner of management and budget
30.10shall regularly advise the commission on the progress of collective bargaining activities
30.11with state employees under the state Public Employment Labor Relations Act. During
30.12negotiations, the commission may make recommendations to the commissioner as it deems
30.13appropriate but no recommendation shall impose any obligation or grant any right or privilege
30.14to the parties.
30.15(b) The commissioner shall submit to the chair of the commission any negotiated
30.16collective bargaining agreements, arbitration awards, compensation plans, or salaries for
30.17legislative approval or disapproval. Negotiated agreements shall be submitted within five
30.18days of the date of approval by the commissioner or the date of approval by the affected
30.19state employees, whichever occurs later. Arbitration awards shall be submitted within five
30.20days of their receipt by the commissioner. If the commission disapproves a collective
30.21bargaining agreement, award, compensation plan, or salary, the commission shall specify
30.22in writing to the parties those portions with which it disagrees and its reasons. If the
30.23commission approves a collective bargaining agreement, award, compensation plan, or
30.24salary, it shall submit the matter to the legislature to be accepted or rejected under this
30.25section.
30.26(c) When the legislature is not in session, the commission may give interim approval to
30.27a negotiated collective bargaining agreement, salary, compensation plan, or arbitration
30.28award. When the legislature is not in session, failure of the commission to disapprove a
30.29collective bargaining agreement or arbitration award within 30 days constitutes approval.
30.30The commission shall submit the negotiated collective bargaining agreements, salaries,
30.31compensation plans, or arbitration awards for which it has provided approval to the entire
30.32legislature for ratification at a special legislative session called to consider them or at its
30.33next regular legislative session as provided in this section. Approval or disapproval by the
30.34commission is not binding on the legislature.
31.1(d) When the legislature is not in session, the proposed collective bargaining agreement,
31.2arbitration decision, salary, or compensation plan must be implemented upon its approval
31.3by the commission, and state employees covered by the proposed agreement or arbitration
31.4decision do not have the right to strike while the interim approval is in effect. Wages and
31.5economic fringe benefit increases provided for in the agreement or arbitration decision paid
31.6in accordance with the interim approval by the commission are not affected, but the wages
31.7or benefit increases must cease to be paid or provided effective upon the rejection of the
31.8agreement, arbitration decision, salary, or compensation plan, or upon adjournment of the
31.9legislature without acting on it.
31.10EFFECTIVE DATE.This section is effective the day following final enactment.

31.11    Sec. 4. Minnesota Statutes 2016, section 3.8843, subdivision 7, is amended to read:
31.12    Subd. 7. Expiration. This section expires June 30, 2017 2019.
31.13EFFECTIVE DATE.This section is effective the day following final enactment.

31.14    Sec. 5. [3.8853] LEGISLATIVE BUDGET OFFICE.
31.15The Legislative Budget Office is established under control of the Legislative Coordinating
31.16Commission to provide the house of representatives and the senate with nonpartisan, accurate,
31.17and timely information on the fiscal impact of proposed legislation, without regard to political
31.18factors. The Legislative Coordinating Commission shall appoint a director who may hire
31.19staff necessary to do the work of the office. The director serves a term of six years and may
31.20not be removed during a term except for cause after a public hearing.

31.21    Sec. 6. Minnesota Statutes 2016, section 3.971, subdivision 2, is amended to read:
31.22    Subd. 2. Staff; compensation. (a) The legislative auditor shall establish a Financial
31.23Audits Division and a Program Evaluation Division to fulfill the duties prescribed in this
31.24section.
31.25    (b) Each division may be supervised by a deputy auditor, appointed by the legislative
31.26auditor, with the approval of the commission, for a term coterminous with the legislative
31.27auditor's term. The deputy auditors may be removed before the expiration of their terms
31.28only for cause. The legislative auditor and deputy auditors may each appoint a confidential
31.29secretary to serve at pleasure. The salaries and benefits of the legislative auditor, deputy
31.30auditors and confidential secretaries shall be determined by the compensation plan approved
31.31by the Legislative Coordinating Commission. The deputy auditors may perform and exercise
32.1the powers, duties and responsibilities imposed by law on the legislative auditor when
32.2authorized by the legislative auditor.
32.3(c) The legislative auditor must appoint a fiscal oversight officer with duties that include
32.4performing the review under section 3.972, subdivision 4.
32.5    (d) The deputy auditors and the confidential secretaries serve in the unclassified civil
32.6service, but the fiscal oversight officer and all other employees of the legislative auditor are
32.7in the classified civil service. Compensation for employees of the legislative auditor in the
32.8classified service shall be governed by a plan prepared by the legislative auditor and approved
32.9by the Legislative Coordinating Commission and the legislature under section 3.855,
32.10subdivision 3 .
32.11    (e) While in office, a person appointed deputy for the Financial Audit Division must
32.12hold an active license as a certified public accountant.
32.13EFFECTIVE DATE.This section is effective the day following final enactment.

32.14    Sec. 7. Minnesota Statutes 2016, section 3.971, subdivision 6, is amended to read:
32.15    Subd. 6. Financial audits. The legislative auditor shall audit the financial statements
32.16of the state of Minnesota required by section 16A.50 and, as resources permit, Minnesota
32.17State Colleges and Universities, the University of Minnesota, state agencies, departments,
32.18boards, commissions, offices, courts, and other organizations subject to audit by the
32.19legislative auditor, including, but not limited to, the State Agricultural Society, Agricultural
32.20Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical Society,
32.21ClearWay Minnesota, Minnesota Sports Facilities Authority, Metropolitan Council,
32.22Metropolitan Airports Commission, and Metropolitan Mosquito Control District. Financial
32.23audits must be conducted according to generally accepted government auditing standards.
32.24The legislative auditor shall see that all provisions of law respecting the appropriate and
32.25economic use of public funds and other public resources are complied with and may, as
32.26part of a financial audit or separately, investigate allegations of noncompliance.
32.27EFFECTIVE DATE.This section is effective the day following final enactment.

32.28    Sec. 8. Minnesota Statutes 2016, section 3.972, is amended by adding a subdivision to
32.29read:
32.30    Subd. 4. Certain transit financial activity reporting. (a) The legislative auditor must
32.31perform a transit financial activity review of financial information for the Metropolitan
32.32Council's Transportation Division and the joint powers board under section 297A.992.
33.1Within 14 days of the end of each fiscal quarter, the legislative auditor must submit the
33.2review to the Legislative Audit Commission and the chairs and ranking minority members
33.3of the legislative committees with jurisdiction over transportation policy and finance, finance,
33.4and ways and means.
33.5(b) At a minimum, each transit financial activity review must include:
33.6(1) a summary of monthly financial statements, including balance sheets and operating
33.7statements, that shows income, expenditures, and fund balance;
33.8(2) a list of any obligations and agreements entered into related to transit purposes,
33.9whether for capital or operating, including but not limited to bonds, notes, grants, and future
33.10funding commitments;
33.11(3) the amount of funds in clause (2) that has been committed;
33.12(4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues
33.13and fund balance compared to expenditures, taking into account:
33.14(i) all expenditure commitments;
33.15(ii) cash flow;
33.16(iii) sufficiency of estimated funds; and
33.17(iv) financial solvency of anticipated transit projects; and
33.18(5) a notification concerning whether the requirements under paragraph (c) have been
33.19met.
33.20(c) The Metropolitan Council and the joint powers board under section 297A.992 must
33.21produce monthly financial statements as necessary for the review under paragraph (b),
33.22clause (1), and provide timely information as requested by the legislative auditor.
33.23EFFECTIVE DATE.This section is effective the day following final enactment.

33.24    Sec. 9. Minnesota Statutes 2016, section 3.98, subdivision 1, is amended to read:
33.25    Subdivision 1. Preparation. (a) The head or chief administrative officer of each
33.26department or agency of the state government, including the Supreme Court, Legislative
33.27Budget Office shall prepare a fiscal note at the request of the chair of the standing committee
33.28to which a bill has been referred, or the chair of the house of representatives Ways and
33.29Means Committee, or the chair of the senate Committee on Finance.
33.30(b) The head or chief administrative officer of each department or agency of state
33.31government, including the Supreme Court, shall supply information for fiscal notes upon
34.1request of the director of the Legislative Budget Office. The Legislative Budget Office may
34.2adopt standards and guidelines governing timing of responses to requests for information
34.3and governing access to data, consistent with laws governing access to data. Agencies must
34.4comply with these standards and guidelines.
34.5(c) For purposes of this subdivision, "Supreme Court" includes all agencies, committees,
34.6and commissions supervised or appointed by the state Supreme Court or the state court
34.7administrator.

34.8    Sec. 10. Minnesota Statutes 2016, section 3.98, subdivision 4, is amended to read:
34.9    Subd. 4. Uniform procedure. The commissioner of management and budget Legislative
34.10Budget Office shall prescribe a uniform procedure to govern the departments and agencies
34.11of the state in complying with the requirements of this section.

34.12    Sec. 11. Minnesota Statutes 2016, section 3.987, subdivision 1, is amended to read:
34.13    Subdivision 1. Local impact notes. The commissioner of management and budget
34.14Legislative Budget Office shall coordinate the development of a local impact note for any
34.15proposed legislation introduced after June 30, 1997, upon request of the chair or the ranking
34.16minority member of either legislative Tax, Finance, or Ways and Means Committee. Upon
34.17receipt of a request to prepare a local impact note, the commissioner office must notify the
34.18authors of the proposed legislation that the request has been made. The local impact note
34.19must be made available to the public upon request. If the action is among the exceptions
34.20listed in section 3.988, a local impact note need not be requested nor prepared. The
34.21commissioner office shall make a reasonable and timely estimate of the local fiscal impact
34.22on each type of political subdivision that would result from the proposed legislation. The
34.23commissioner of management and budget office may require any political subdivision or
34.24the commissioner of an administrative agency of the state to supply in a timely manner any
34.25information determined to be necessary to determine local fiscal impact. The political
34.26subdivision, its representative association, or commissioner shall convey the requested
34.27information to the commissioner of management and budget office with a signed statement
34.28to the effect that the information is accurate and complete to the best of its ability. The
34.29political subdivision, its representative association, or commissioner, when requested, shall
34.30update its determination of local fiscal impact based on actual cost or revenue figures,
34.31improved estimates, or both. Upon completion of the note, the commissioner office must
34.32provide a copy to the authors of the proposed legislation and to the chair and ranking minority
34.33member of each committee to which the proposed legislation is referred.

35.1    Sec. 12. Minnesota Statutes 2016, section 6.481, subdivision 3, is amended to read:
35.2    Subd. 3. CPA firm audit. A county audit performed by a CPA firm must meet the
35.3standards and be in the a form required by the state auditor meeting recognized industry
35.4auditing standards. The state auditor may require additional information from the CPA firm
35.5if the state auditor determines that is in the public interest, but the state auditor must accept
35.6the audit unless the state auditor determines it the audit or its form does not meet recognized
35.7industry auditing standards or is not in the form required by the state auditor. The state
35.8auditor may make additional examinations as the auditor determines to be in the public
35.9interest.

35.10    Sec. 13. Minnesota Statutes 2016, section 6.481, subdivision 6, is amended to read:
35.11    Subd. 6. Payments to state auditor. A county audited by the state auditor must pay the
35.12state auditor for the costs and expenses of the audit. If the state auditor makes additional
35.13examinations of a county whose audit is performed by a CPA firm, the county must pay the
35.14auditor for the cost of these examinations. Payments must be deposited in the state auditor
35.15enterprise general fund.

35.16    Sec. 14. Minnesota Statutes 2016, section 6.56, subdivision 2, is amended to read:
35.17    Subd. 2. Billings by state auditor. Upon the examination of the books, records, accounts,
35.18and affairs of any political subdivision, as provided by law, such political subdivision shall
35.19be liable to the state for the total cost and expenses of such examination, including the
35.20salaries paid to the examiners while actually engaged in making such examination. The
35.21state auditor may bill such political subdivision periodically for service rendered and the
35.22officials responsible for approving and paying claims are authorized to pay said bill promptly.
35.23Said payments shall be without prejudice to any defense against said claims that may exist
35.24or be asserted. The state auditor enterprise general fund shall be credited with all collections
35.25made for any such examinations, including interest payments made pursuant to subdivision
35.263.

35.27    Sec. 15. Minnesota Statutes 2016, section 6.581, subdivision 4, is amended to read:
35.28    Subd. 4. Reports to legislature. At least 30 days before implementing increased charges
35.29for examinations, the state auditor must report the proposed increases to the chairs and
35.30ranking minority members of the committees in the house of representatives and the senate
35.31with jurisdiction over the budget of the state auditor. By January 15 of each odd-numbered
35.32year, the state auditor must report to the chairs and ranking minority members of the
36.1legislative committees and divisions with primary jurisdiction over the budget of the state
36.2auditor a summary of the state auditor enterprise fund anticipated revenues, and expenditures
36.3related to examinations for the biennium ending June 30 of that year. The report must also
36.4include for the biennium the number of full-time equivalents paid by the fund, by division,
36.5employed by the Office of the State Auditor, any audit rate changes stated as a percentage,
36.6the number of audit reports issued, and the number of counties audited.

36.7    Sec. 16. [6.92] LITIGATION EXPENSES.
36.8(a) Unless funds are otherwise expressly provided by law for this purpose, all costs
36.9incurred by the state auditor in preparing and asserting a civil claim or appeal, or in defending
36.10against a civil claim or appeal, related to the proper exercise of the auditor's constitutionally
36.11authorized core functions must be paid by the auditor's constitutional office division. Only
36.12allocations made to the constitutional office division may be used to pay these costs. The
36.13state auditor must report to the chairs and ranking minority members of the committees in
36.14the house of representatives and the senate with jurisdiction over the Office of the State
36.15Auditor by May 1, 2017, and January 1, 2018, and each January 1 thereafter, on the state
36.16auditor's litigation expenses. The report must list each lawsuit the state auditor has brought
36.17or is defending, the grounds for each suit, the litigation expenses incurred since the previous
36.18report under this section, and the projected expenses to complete the suit.
36.19(b) In complying with paragraph (a), the state auditor may not, directly or indirectly,
36.20decrease allocations previously made to, transfer funds from, or otherwise reduce services
36.21provided by any other division of the office.

36.22    Sec. 17. [15.0395] INTERAGENCY AGREEMENTS AND INTRA-AGENCY
36.23TRANSFERS.
36.24(a) The head of each agency must provide quarterly reports to the chairs and ranking
36.25minority members of the legislative committees with jurisdiction over the department or
36.26agency's budget on:
36.27(1) interagency agreements or service-level agreements and any renewals or extensions
36.28of existing interagency or service-level agreements with another agency if the cumulative
36.29value of those agreements is more than $50,000 in a single fiscal year; and
36.30(2) transfers of appropriations between accounts within or between agencies, if the
36.31cumulative value of the transfers is more than $50,000 in a single fiscal year.
37.1The report must include the statutory citation authorizing the agreement, transfer or dollar
37.2amount, purpose, and effective date of the agreement, the duration of the agreement, and a
37.3copy of the agreement.
37.4(b) As used in this section, "agency" includes the departments of the state listed in section
37.515.01, a multimember state agency in the executive branch described in section 15.012,
37.6paragraph (a), the Office of MN.IT Services, and the Office of Higher Education.

37.7    Sec. 18. [16A.1282] TRANSFERS TO THE GOVERNOR.
37.8An agency shall not transfer money to the governor for services provided by the governor
37.9or to reimburse expenses incurred by the governor.

37.10    Sec. 19. Minnesota Statutes 2016, section 16A.90, is amended to read:
37.1116A.90 EMPLOYEE GAINSHARING SYSTEM.
37.12    Subdivision 1. Commissioner must establish program. (a) The commissioner shall
37.13establish a program to provide onetime bonus compensation to state employees for efforts
37.14made to reduce the costs of operating state government or for ways of providing better or
37.15more efficient state services. The commissioner may authorize an executive branch appointing
37.16authority to make a onetime award to an employee or group of employees whose suggestion
37.17or involvement in a project is determined by the commissioner to have resulted in documented
37.18cost-savings to the state. Before authorizing awards under this section, the commissioner
37.19shall establish guidelines for the program including but not limited to:
37.20(1) the maximum award is ten percent of the documented savings in the first fiscal year
37.21in which the savings are realized up to $50,000;
37.22(2) the award must be paid from the appropriation to which the savings accrued; and
37.23(3) employees whose primary job responsibility is to identify cost savings or ways of
37.24providing better or more efficient state services are generally not eligible for bonus
37.25compensation under this section except in extraordinary circumstances as defined by the
37.26commissioner.
37.27(b) The program required by this section must be in addition to any existing monetary
37.28or nonmonetary performance-based recognition programs for state employees, including
37.29achievement awards, continuous improvement awards, and general employee recognitions.
37.30    Subd. 2. Biannual legislative report. No later than August 1, 2017, and biannually
37.31thereafter, the commissioner must report to the chairs and ranking minority members of the
38.1house of representatives and senate committees with jurisdiction over Minnesota Management
38.2and Budget on the status of the program required by this section. The report must detail:
38.3(1) the specific program guidelines established by the commissioner as required by
38.4subdivision 1, if the guidelines have not been described in a previous report;
38.5(2) any proposed modifications to the established guidelines under consideration by the
38.6commissioner, including the reason for the proposed modifications;
38.7(3) the methods used by the commissioner to promote the program to state employees,
38.8if the methods have not been described in a previous report;
38.9(4) a summary of the results of the program that includes the following, categorized by
38.10agency:
38.11(i) the number of state employees whose suggestions or involvement in a project were
38.12considered for possible bonus compensation, and a description of each suggestion or project
38.13that was considered;
38.14(ii) the total amount of bonus compensation actually awarded, itemized by each suggestion
38.15or project that resulted in an award and the amount awarded for that suggestion or project;
38.16and
38.17(iii) the total amount of documented cost-savings that accrued to the agency as a result
38.18of each suggestion or project for which bonus compensation was granted; and
38.19(5) any recommendations for legislation that, in the judgment of the commissioner,
38.20would improve the effectiveness of the bonus compensation program established by this
38.21section or which would otherwise increase opportunities for state employees to actively
38.22participate in the development and implementation of strategies for reducing the costs of
38.23operating state government or for providing better or more efficient state services.

38.24    Sec. 20. Minnesota Statutes 2016, section 16B.04, subdivision 2, is amended to read:
38.25    Subd. 2. Powers and duties, generally. Subject to other provisions of this chapter, the
38.26commissioner is authorized to:
38.27    (1) supervise, control, review, and approve all state contracts and purchasing, provided
38.28that the commissioner may not approve a state contract with, or the purchase of goods from,
38.29a vendor who intentionally refuses to do business, or who intentionally discriminates in the
38.30basic terms, conditions, or performance of a contract or sale, on the basis of a person's
38.31national origin;
38.32    (2) provide agencies with supplies and equipment;
39.1    (3) investigate and study the management and organization of agencies, and reorganize
39.2them when necessary to ensure their effective and efficient operation;
39.3    (4) manage and control state property, real and personal;
39.4    (5) maintain and operate all state buildings, as described in section 16B.24, subdivision
39.51 ;
39.6    (6) supervise, control, review, and approve all capital improvements to state buildings
39.7and the capitol building and grounds;
39.8    (7) provide central mail facilities;
39.9    (8) oversee publication of official documents and provide for their sale;
39.10    (9) manage and operate parking facilities for state employees and a central motor pool
39.11for travel on state business;
39.12    (10) provide rental space within the capitol complex for a private day care center for
39.13children of state employees. The commissioner shall contract for services as provided in
39.14this chapter;
39.15(11) settle state employee workers' compensation claims;
39.16(12) purchase, accept, transfer, warehouse, sell, distribute, or dispose of surplus property
39.17in accordance with state and federal rules and regulations. The commissioner may charge
39.18a fee to cover any expenses incurred in connection with any of these acts; and
39.19(13) provide and manage a central distribution center for federal and state surplus personal
39.20property, as defined in section 16B.2975, and may provide and manage a warehouse facility.

39.21    Sec. 21. Minnesota Statutes 2016, section 16B.055, subdivision 1, is amended to read:
39.22    Subdivision 1. Federal Assistive Technology Act. (a) The Department of Administration
39.23is designated as the lead agency to carry out all the responsibilities under the Assistive
39.24Technology Act of 1998, as provided by Public Law 108-364, as amended. The Minnesota
39.25Assistive Technology Advisory Council is established to fulfill the responsibilities required
39.26by the Assistive Technology Act, as provided by Public Law 108-364, as amended. Because
39.27the existence of this council is required by federal law, this council does not expire.
39.28    (b) Except as provided in paragraph (c), the governor shall appoint the membership of
39.29the council as required by the Assistive Technology Act of 1998, as provided by Public
39.30Law 108-364, as amended. After the governor has completed the appointments required by
39.31this subdivision, the commissioner of administration, or the commissioner's designee, shall
40.1convene the first meeting of the council following the appointments. Members shall serve
40.2two-year terms commencing July 1 of each odd-numbered year, and receive the compensation
40.3specified by the Assistive Technology Act of 1998, as provided by Public Law 108-364, as
40.4amended. The members of the council shall select their chair at the first meeting following
40.5their appointment.
40.6(c) After consulting with the appropriate commissioner, the commissioner of
40.7administration shall appoint a representative from:
40.8(1) State Services for the Blind who has assistive technology expertise;
40.9(2) vocational rehabilitation services who has assistive technology expertise;
40.10(3) the Workforce Development Council; and
40.11(4) the Department of Education who has assistive technology expertise.

40.12    Sec. 22. Minnesota Statutes 2016, section 16B.335, subdivision 1, is amended to read:
40.13    Subdivision 1. Construction and major remodeling. (a) The commissioner, or any
40.14other recipient to whom an appropriation is made to acquire or better public lands or buildings
40.15or other public improvements of a capital nature, must not prepare final plans and
40.16specifications for any construction, major remodeling, or land acquisition in anticipation
40.17of which the appropriation was made until the agency that will use the project has presented
40.18the program plan and cost estimates for all elements necessary to complete the project to
40.19the chair of the senate Finance Committee and the chair of the house of representatives
40.20Ways and Means Committee and the chairs have made their recommendations, and the
40.21chair and ranking minority member of the senate Capital Investment Committee and the
40.22chair and ranking minority member of the house of representatives Capital Investment
40.23Committee are notified. "Construction or major remodeling" means construction of a new
40.24building, a substantial addition to an existing building, or a substantial change to the interior
40.25configuration of an existing building. The presentation must note any significant changes
40.26in the work that will be done, or in its cost, since the appropriation for the project was
40.27enacted or from the predesign submittal. The program plans and estimates must be presented
40.28for review at least two weeks before a recommendation is needed. The recommendations
40.29are advisory only. Failure or refusal to make a recommendation is considered a negative
40.30recommendation.
40.31(b) The chairs and ranking minority members of the senate Finance and Capital
40.32Investment Committees and, the house of representatives Capital Investment and Ways and
40.33Means Committees, and the house of representatives and senate budget committees or
41.1divisions with jurisdiction over the agency that will use the project must also be notified
41.2whenever there is a substantial change in a construction or major remodeling project, or in
41.3its cost. This notice must include the nature and reason for the change and the anticipated
41.4cost of the change. The notice must be given no later than ten days after signing a change
41.5order or other document authorizing a change in the project, or if there is not a change order
41.6or other document, no later than ten days after the project owner becomes aware of a
41.7substantial change in the project or its cost.
41.8(b) (c) Capital projects exempt from the requirements of this subdivision in paragraph
41.9(a) to seek recommendations before preparing final plans and specifications include
41.10demolition or decommissioning of state assets, hazardous material projects, utility
41.11infrastructure projects, environmental testing, parking lots, parking structures, park and ride
41.12facilities, bus rapid transit stations, light rail lines, passenger rail projects, exterior lighting,
41.13fencing, highway rest areas, truck stations, storage facilities not consisting primarily of
41.14offices or heated work areas, roads, bridges, trails, pathways, campgrounds, athletic fields,
41.15dams, floodwater retention systems, water access sites, harbors, sewer separation projects,
41.16water and wastewater facilities, port development projects for which the commissioner of
41.17transportation has entered into an assistance agreement under section 457A.04, ice centers,
41.18a local government project with a construction cost of less than $1,500,000, or any other
41.19capital project with a construction cost of less than $750,000. The requirements in paragraph
41.20(b) to give notice of changes applies to these projects.

41.21    Sec. 23. Minnesota Statutes 2016, section 16B.371, is amended to read:
41.2216B.371 ASSISTANCE TO SMALL AGENCIES.
41.23(a) The commissioner may provide administrative support services to small agencies.
41.24To promote efficiency and cost-effective use of state resources, and to improve financial
41.25controls, the commissioner may require a small agency to receive administrative support
41.26services through the Department of Administration or through another agency designated
41.27by the commissioner. Services subject to this section include finance, accounting, payroll,
41.28purchasing, human resources, and other services designated by the commissioner. The
41.29commissioner may determine what constitutes a small agency for purposes of this section.
41.30The commissioner, in consultation with the commissioner of management and budget and
41.31small agencies, shall evaluate small agencies' needs for administrative support services. If
41.32the commissioner provides administrative support services to a small agency, the
41.33commissioner must enter into a service level agreement with the agency, specifying the
41.34services to be provided and the costs and anticipated outcomes of the services.
42.1(b) The Minnesota Council on Latino Affairs, the Council for Minnesotans of African
42.2Heritage, the Council on Asian-Pacific Minnesotans, the Indian Affairs Council, and the
42.3Minnesota State Council on Disability must may use the services specified in paragraph
42.4(a).
42.5    (c) The commissioner of administration may must assess agencies for services it provides
42.6under this section. The amounts assessed are appropriated to the commissioner.
42.7(d) For agencies covered in this section, the commissioner has the authority to require
42.8the agency to comply with applicable state finance, accounting, payroll, purchasing, and
42.9human resources policies. The agencies served retain the ownership and responsibility for
42.10spending decisions and for ongoing implementation of appropriate business operations.

42.11    Sec. 24. Minnesota Statutes 2016, section 16B.4805, subdivision 2, is amended to read:
42.12    Subd. 2. Reimbursement for making reasonable accommodation. The commissioner
42.13of administration shall reimburse state agencies for up to 50 percent of the cost of expenses
42.14incurred in making reasonable accommodations eligible for reimbursement for agency
42.15employees and applicants for employment to the extent that funds are available in the
42.16accommodation account established under subdivision 3 for this purpose.

42.17    Sec. 25. Minnesota Statutes 2016, section 16B.4805, subdivision 4, is amended to read:
42.18    Subd. 4. Administration costs. The commissioner may use up to 15 percent $5,000 of
42.19the biennial appropriation for administration of this section.

42.20    Sec. 26. Minnesota Statutes 2016, section 16B.97, is amended by adding a subdivision to
42.21read:
42.22    Subd. 6. Commerce grants. The office must monitor grants made by the Department
42.23of Commerce.

42.24    Sec. 27. [16B.991] TERMINATION OF GRANT.
42.25Each grant agreement subject to sections 16B.97 and 16B.98 must provide that the
42.26agreement will immediately be terminated if:
42.27(1) the recipient is convicted of a criminal offense relating to a state grant agreement;
42.28or
43.1(2) the agency entering into the grant agreement or the commissioner of administration
43.2determines that the grant recipient is under investigation by a federal agency, a state agency,
43.3or a local law enforcement agency for matters relating to administration of a state grant.

43.4    Sec. 28. Minnesota Statutes 2016, section 16E.016, is amended to read:
43.516E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY SERVICES
43.6AND EQUIPMENT.
43.7(a) The chief information officer is responsible for providing or entering into managed
43.8services contracts for the provision, improvement, and development of the following
43.9information technology systems and services to state agencies:
43.10(1) state data centers;
43.11(2) mainframes including system software;
43.12(3) servers including system software;
43.13(4) desktops including system software;
43.14(5) laptop computers including system software;
43.15(6) a data network including system software;
43.16(7) database, electronic mail, office systems, reporting, and other standard software
43.17tools;
43.18(8) business application software and related technical support services;
43.19(9) help desk for the components listed in clauses (1) to (8);
43.20(10) maintenance, problem resolution, and break-fix for the components listed in clauses
43.21(1) to (8);
43.22(11) regular upgrades and replacement for the components listed in clauses (1) to (8);
43.23and
43.24(12) network-connected output devices.
43.25(b) All state agency employees whose work primarily involves functions specified in
43.26paragraph (a) are employees of the Office of MN.IT Services. This includes employees who
43.27directly perform the functions in paragraph (a), as well as employees whose work primarily
43.28involves managing, supervising, or providing administrative services or support services
43.29to employees who directly perform these functions. The chief information officer may assign
43.30employees of the office to perform work exclusively for another state agency.
44.1(c) Subject to sections 16C.08 and 16C.09, the chief information officer may allow a
44.2state agency to obtain services specified in paragraph (a) through a contract with an outside
44.3vendor when the chief information officer and the agency head agree that a contract would
44.4provide best value, as defined in section 16C.02, under the service-level agreement. The
44.5chief information officer must require that agency contracts with outside vendors ensure
44.6that systems and services are compatible with standards established by the Office of MN.IT
44.7Services.
44.8(d) The Minnesota State Retirement System, the Public Employees Retirement
44.9Association, the Teachers Retirement Association, and the State Board of Investment, the
44.10Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide Radio
44.11Board are not state agencies for purposes of this section.
44.12(e) Effective upon certification by the chief information officer that the information
44.13technology systems and services provided under this section meet all professional and
44.14technical standards necessary for the entity to perform its functions, the following are state
44.15agencies for purposes of this section: the Campaign Finance and Public Disclosure Board,
44.16the State Lottery, and the Statewide Radio Board.

44.17    Sec. 29. Minnesota Statutes 2016, section 16E.0466, is amended to read:
44.1816E.0466 STATE AGENCY TECHNOLOGY PROJECTS.
44.19    Subdivision 1. Consultation required. (a) Every state agency with an information or
44.20telecommunications project must consult with the Office of MN.IT Services to determine
44.21the information technology cost of the project. Upon agreement between the commissioner
44.22of a particular agency and the chief information officer, the agency must transfer the
44.23information technology cost portion of the project to the Office of MN.IT Services. Service
44.24level agreements must document all project-related transfers under this section. Those
44.25agencies specified in section 16E.016, paragraph (d), are exempt from the requirements of
44.26this section.
44.27(b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating balance
44.28appropriated to a state agency may be transferred to the information and telecommunications
44.29technology systems and services account for the information technology cost of a specific
44.30project, subject to the review of the Legislative Advisory Commission, under section 16E.21,
44.31subdivision 3 .
44.32    Subd. 2. Legislative report. No later than October 1, 2017, and quarterly thereafter, the
44.33state chief information officer must submit a comprehensive project portfolio report to the
45.1chairs and ranking minority members of the house of representatives and senate committees
45.2with jurisdiction over state government finance on projects requiring consultation under
45.3subdivision 1. The report must itemize:
45.4(1) each project presented to the office for consultation in the time since the last report;
45.5(2) the information technology cost associated with the project, including the information
45.6technology cost as a percentage of the project's complete budget;
45.7(3) the status of the information technology components of the project's development;
45.8(4) the date the information technology components of the project are expected to be
45.9completed; and
45.10(5) the projected costs for ongoing support and maintenance of the information technology
45.11components after the project is complete.

45.12    Sec. 30. [43A.035] LIMIT ON NUMBER OF FULL-TIME EQUIVALENT
45.13EMPLOYEES; USE OF AGENCY SAVINGS.
45.14    Subdivision 1. Number of full-time equivalent employees limited. The total number
45.15of full-time equivalent employees employed in all executive branch agencies may not exceed
45.1631,691. The commissioner of management and budget may forbid an executive agency from
45.17hiring a new employee or from filling a vacancy as the commissioner determines necessary
45.18to ensure compliance with this section. Any reductions in staff should prioritize protecting
45.19client-facing health care workers, corrections officers, public safety workers, and mental
45.20health workers. As a means of achieving compliance with this subdivision, the commissioner
45.21may authorize an agency to provide an early retirement incentive to an executive branch
45.22employee, under which the state will continue to make the employer contribution for health
45.23insurance after the employee has terminated state service. The commissioner must prescribe
45.24eligibility requirements and the maximum duration of the payments.
45.25    Subd. 2. Use of savings resulting from vacant positions. To the extent that an executive
45.26branch agency accrues savings in personnel costs resulting from the departure of an agency
45.27employee or the maintenance of a vacant position, those savings may only be used to support
45.28a new employee in that position at an equal or lesser rate of compensation, and for an equal
45.29or lesser full-time equivalent work status. Savings accrued from departed personnel or
45.30maintenance of a vacant position may not be transferred or reallocated to another program
45.31or activity within the executive branch agency, or used to increase the number of full-time
45.32equivalent employees at the agency, unless expressly authorized by law.
46.1    Subd. 3. Definition. For purposes of this section, an "executive branch agency" does
46.2not include the Minnesota State Colleges and Universities or statewide pension plans.

46.3    Sec. 31. Minnesota Statutes 2016, section 43A.17, subdivision 11, is amended to read:
46.4    Subd. 11. Severance pay for certain employees. (a) For purposes of this subdivision,
46.5"highly compensated employee" means an employee of the state whose estimated annual
46.6compensation is greater than 60 percent of the governor's annual salary, and who is not
46.7covered by a collective bargaining agreement negotiated under chapter 179A or a
46.8compensation plan authorized under section 43A.18, subdivision 3a.
46.9(b) Severance pay for a highly compensated employee includes benefits or compensation
46.10with a quantifiable monetary value, that are provided for an employee upon termination of
46.11employment and are not part of the employee's annual wages and benefits and are not
46.12specifically excluded by this subdivision. Severance pay does not include payments for
46.13accumulated vacation, accumulated sick leave, and accumulated sick leave liquidated to
46.14cover the cost of group term insurance. Severance pay for a highly compensated employee
46.15does not include payments of periodic contributions by an employer toward premiums for
46.16group insurance policies. The severance pay for a highly compensated employee must be
46.17excluded from retirement deductions and from any calculations of retirement benefits.
46.18Severance pay for a highly compensated employee must be paid in a manner mutually
46.19agreeable to the employee and the employee's appointing authority over a period not to
46.20exceed five years from retirement or termination of employment. If a retired or terminated
46.21employee dies before all or a portion of the severance pay has been disbursed, the balance
46.22due must be paid to a named beneficiary or, lacking one, to the deceased's estate. Except
46.23as provided in paragraph (c), severance pay provided for a highly compensated employee
46.24leaving employment may not exceed an amount equivalent to six months of pay the lesser
46.25of:
46.26(1) six months pay; or
46.27(2) the highly compensated employee's regular rate of pay multiplied by 35 percent of
46.28the highly compensated employee's accumulated but unused sick leave hours.
46.29(c) Severance pay for a highly compensated employee may exceed an amount equivalent
46.30to six months of pay the limit prescribed in paragraph (b) if the severance pay is part of an
46.31early retirement incentive offer approved by the state and the same early retirement incentive
46.32offer is also made available to all other employees of the appointing authority who meet
46.33generally defined criteria relative to age or length of service.
47.1(d) An appointing authority may make severance payments to a highly compensated
47.2employee, up to the limits prescribed in this subdivision, only if doing so is authorized by
47.3a compensation plan under section 43A.18 that governs the employee, provided that the
47.4following highly compensated employees are not eligible for severance pay:
47.5    (1) a commissioner, deputy commissioner, or assistant commissioner of any state
47.6department or agency as listed in section 15.01 or 15.06, including the state chief information
47.7officer; and
47.8    (2) any unclassified employee who is also a public official, as defined in section 10A.01,
47.9subdivision 35.
47.10(e) Severance pay shall not be paid to a highly compensated employee who has been
47.11employed by the appointing authority for less than six months or who voluntarily terminates
47.12employment.
47.13EFFECTIVE DATE.This section is effective the day following final enactment.

47.14    Sec. 32. Minnesota Statutes 2016, section 43A.24, is amended by adding a subdivision to
47.15read:
47.16    Subd. 1a. Opt out. (a) An individual eligible for state-paid hospital, medical, and dental
47.17benefits under this section has the right to decline those benefits, provided the individual
47.18declining the benefits can prove health insurance coverage from another source. Any
47.19individual declining benefits must do so in writing, signed and dated, on a form provided
47.20by the commissioner.
47.21(b) The commissioner must create, and make available in hard copy and online a form
47.22for individuals to use in declining state-paid hospital, medical, and dental benefits. The form
47.23must, at a minimum, include notice to the declining individual of the next available
47.24opportunity and procedure to re-enroll in the benefits.
47.25(c) No later than January 15 of each year, the commissioner of management and budget
47.26must provide a report to the chairs and ranking minority members of the legislative
47.27committees with jurisdiction over state government finance on the number of employees
47.28choosing to opt-out of state employee group insurance coverage under this section. The
47.29report must provide itemized statistics, by agency, and include the total amount of savings
47.30accrued to each agency resulting from the opt-outs.

48.1    Sec. 33. [118A.09] ADDITIONAL LONG-TERM EQUITY INVESTMENT
48.2AUTHORITY.
48.3    Subdivision 1. Definition; qualifying government. "Qualifying government" means:
48.4(1) a county or statutory or home rule charter city with a population of more than 100,000;
48.5(2) a county or statutory or home rule charter city which had its most recently issued
48.6general obligation bonds rated in the highest category by a national bond rating agency; or
48.7(3) a self-insurance pool listed in section 471.982, subdivision 3.
48.8A county or statutory or home rule charter city with a population of 100,000 or less that is
48.9a qualifying government, but is subsequently rated less than the highest category by a
48.10national bond rating agency on a general obligation bond issue, may not invest additional
48.11funds under this section but may continue to manage funds previously invested under
48.12subdivision 2.
48.13    Subd. 2. Additional investment authority. Qualifying governments may invest the
48.14amount described in subdivision 3:
48.15(1) in index mutual funds based in the United States and indexed to a broad market
48.16United States equity index; or
48.17(2) with the Minnesota State Board of Investment subject to such terms and minimum
48.18amounts as may be adopted by the board. Index mutual fund investments must be made
48.19directly with the main sales office of the fund.
48.20    Subd. 3. Funds. (a) Qualifying governments may only invest under subdivision 2
48.21according to the limitations in this subdivision. A qualifying government under subdivision
48.221, clause (1) or (2), may only invest its funds that are held for long-term capital plans
48.23authorized by the city council or county board, or long-term obligations of the qualifying
48.24government. Long-term obligations of the qualifying government include long-term capital
48.25plan reserves, funds held to offset long-term environmental exposure, other postemployment
48.26benefit liabilities, compensated absences, and other long-term obligations established by
48.27applicable accounting standards.
48.28(b) Qualifying governments under subdivision 1, clause (1) or (2), may invest up to 15
48.29percent of the sum of:
48.30(1) unassigned cash;
48.31(2) cash equivalents;
48.32(3) deposits; and
49.1(4) investments.
49.2This calculation must be based on the qualifying government's most recent audited statement
49.3of net position, which must be compliant and audited pursuant to governmental accounting
49.4and auditing standards. Once the amount invested reaches 15 percent of the sum of
49.5unassigned cash, cash equivalents, deposits, and investments, no further funds may be
49.6invested under this section; however, a qualifying government may continue to manage the
49.7funds previously invested under this section even if the total amount subsequently exceeds
49.815 percent of the sum of unassigned cash, cash equivalents, deposits, and investments.
49.9(c) A qualified government under subdivision 1, clause (3), may invest up to the lesser
49.10of:
49.11(1) 15 percent of the sum of its cash, cash equivalents, deposits, and investments; or
49.12(2) 25 percent of its net assets as reported on the pool's most recent audited statement
49.13of net position, which must be compliant and audited pursuant to governmental accounting
49.14and auditing standards.
49.15    Subd. 4. Approval. Before investing pursuant to this section, the governing body of the
49.16qualifying government must adopt a resolution that includes the following statements:
49.17(1) the governing body understands that investments under subdivision 2 have a risk of
49.18loss;
49.19(2) the governing body understands the type of funds that are being invested and the
49.20specific investment itself; and
49.21(3) the governing body certifies that all funds designated for investment through the
49.22State Board of Investment meet the requirements of this section and the policies and
49.23procedures established by the State Board of Investment.
49.24    Subd. 5. Public Employees Retirement Association to act as account administrator.
49.25A qualifying government exercising authority under this section to invest amounts with the
49.26State Board of Investment shall establish an account with the Public Employees Retirement
49.27Association (PERA), which shall act as the account administrator.
49.28    Subd. 6. Purpose of account. The account established under subdivision 5 may only
49.29be used for the purposes provided under subdivision 3. PERA may rely on representations
49.30made by the qualifying government in exercising its duties as account administrator and
49.31has no duty to further verify qualifications, use, or intended use of the funds that are invested
49.32or withdrawn.
50.1    Subd. 7. Account maintenance. (a) A qualifying government may establish an account
50.2to be held under the supervision of PERA for the purposes of investing funds with the State
50.3Board of Investment under subdivision 2. PERA shall establish a separate account for each
50.4qualifying government. PERA may charge participating qualifying governments a fee for
50.5reasonable administrative costs. The amount of any fee charged by PERA is annually
50.6appropriated to the association from the account. PERA may establish other reasonable
50.7terms and conditions for creation and maintenance of these accounts.
50.8(b) PERA must report to the qualifying government on the investment returns of invested
50.9funds and on all investment fees or costs incurred by the account.
50.10    Subd. 8. Investment. (a) The assets of an account shall be invested and held as required
50.11by this subdivision.
50.12(b) PERA must certify all money in the accounts for which it is account administrator
50.13to the State Board of Investment for investment under section 11A.14, subject to the policies
50.14and procedures established by the State Board of Investment. Investment earnings must be
50.15credited to the account of the individual qualifying government.
50.16(c) For accounts invested by the State Board of Investment, the investment restrictions
50.17shall be the same as those generally applicable to the State Board of Investment.
50.18(d) A qualifying government may provide investment direction to PERA, subject to the
50.19policies and procedures established by the State Board of Investment.
50.20    Subd. 9. Withdrawal of funds and termination of account. (a) A government may
50.21withdraw some or all of its money or terminate the account.
50.22(b) A government requesting withdrawal of money from an account created under this
50.23section must do so at a time and in the manner required by the executive director of PERA,
50.24subject to the policies and procedures established by the State Board of Investment.

50.25    Sec. 34. Minnesota Statutes 2016, section 138.69, is amended to read:
50.26138.69 PUBLIC AREAS OF THE CAPITOL.
50.27The Minnesota State Historical Society is designated the research agency and is
50.28responsible for the interpretation of the public areas for visitors to the Capitol. This involves
50.29conducting or approving public programs and tours in the Capitol and State Office Building,
50.30including exhibits held in the Capitol, providing informational services, acting as advisor
50.31on preservation, recommending appropriate custodial policies, and maintaining and repairing
50.32all works of art. Notwithstanding section 138.668, the society may not charge a fee for
51.1general tours at the Capitol but may charge fees for special programs other than general
51.2tours.

51.3    Sec. 35. Minnesota Statutes 2016, section 155A.30, subdivision 5, is amended to read:
51.4    Subd. 5. Conditions precedent to issuance. A license must not be issued unless the
51.5board first determines that the applicant has met the requirements in clauses (1) to (8) (9):
51.6(1) the applicant must have a sound financial condition with sufficient resources available
51.7to meet the school's financial obligations; to refund all tuition and other charges, within a
51.8reasonable period of time, in the event of dissolution of the school or in the event of any
51.9justifiable claims for refund against the school; to provide adequate service to its students
51.10and prospective students; and to maintain proper use and support of the school;
51.11(2) the applicant must have satisfactory training facilities with sufficient tools and
51.12equipment and the necessary number of work stations to adequately train the students
51.13currently enrolled, and those proposed to be enrolled;
51.14(3) the applicant must employ a sufficient number of qualified instructors trained by
51.15experience and education to give the training contemplated;
51.16(4) the premises and conditions under which the students work and study must be sanitary,
51.17healthful, and safe according to modern standards;
51.18(5) each occupational course or program of instruction or study must be of such quality
51.19and content as to provide education and training that will adequately prepare enrolled
51.20students for testing, licensing, and entry level positions as a cosmetologist, esthetician, or
51.21nail technician;
51.22(6) the school must have coverage by professional liability insurance of at least $25,000
51.23per incident and an accumulation of $150,000 for each premium year;
51.24(7) the applicant shall provide evidence of the school's compliance with section 176.182;
51.25(8) the applicant, except the state and its political subdivisions as described in section
51.26471.617 13.02, subdivision 1 11 , shall must file with the board a continuous corporate surety
51.27bond in the amount of no less than ten percent of the preceding year's gross income from
51.28student tuition, fees, and other required institutional charges, but in no event less than
51.29$10,000, conditioned upon the faithful performance of all contracts and agreements with
51.30students made by the applicant. New schools must base the bond amount on the anticipated
51.31gross income from student tuition, fees, and other required institutional charges for the third
51.32year of operation, but in no event less than $10,000. The applicant must compute the amount
52.1of the surety bond and verify that the amount of the surety bond complies with this
52.2subdivision. The bond shall run to the state of Minnesota board and to any person who may
52.3have a cause of action against the applicant arising at any time after the bond is filed and
52.4before it is canceled for breach of any contract or agreement made by the applicant with
52.5any student. The aggregate liability of the surety for all breaches of the conditions of the
52.6bond shall not exceed $10,000. The surety of the bond may cancel it upon giving 60 days'
52.7notice in writing to the board and shall be relieved of liability for any breach of condition
52.8occurring after the effective date of cancellation; and
52.9(9) the applicant must, at all times during the term of the license, employ appoint a
52.10designated licensed school manager who maintains a cosmetology salon manager license.
52.11EFFECTIVE DATE.This section is effective the day following final enactment.

52.12    Sec. 36. Minnesota Statutes 2016, section 179A.20, is amended by adding a subdivision
52.13to read:
52.14    Subd. 2b. Limited by appropriation. The commissioner of management and budget
52.15may not contract to pay more to employees in compensation and benefits in a biennium
52.16than is permitted under an approved spending plan as provided in section 16A.14.

52.17    Sec. 37. Minnesota Statutes 2016, section 270C.13, subdivision 1, is amended to read:
52.18    Subdivision 1. Biennial report. The commissioner shall report to the legislature by
52.19March 1 of each odd-numbered year on the overall incidence of the income tax, sales and
52.20excise taxes, and property tax. The report shall present information on the distribution of
52.21the tax burden as follows: (1) for the overall income distribution, using a systemwide
52.22incidence measure such as the Suits index or other appropriate measures of equality and
52.23inequality; (2) by income classes, including at a minimum deciles of the income distribution;
52.24and (3) by other appropriate taxpayer characteristics. The report must also include information
52.25on the distribution of the burden of federal taxes borne by Minnesota residents.

52.26    Sec. 38. Minnesota Statutes 2016, section 353.27, subdivision 3c, is amended to read:
52.27    Subd. 3c. Former MERF members; member and employer contributions. (a) For
52.28the period July 1, 2015, through December 31, 2031, the member contributions for former
52.29members of the Minneapolis Employees Retirement Fund and by the former Minneapolis
52.30Employees Retirement Fund-covered employing units are governed by this subdivision.
53.1(b) The member contribution for a public employee who was a member of the former
53.2Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75 percent of the salary of
53.3the employee.
53.4(c) The employer regular contribution with respect to a public employee who was a
53.5member of the former Minneapolis Employees Retirement Fund on June 29, 2010, is 9.75
53.6percent of the salary of the employee.
53.7(d) For calendar years 2015 and 2016, The annual employer supplemental contribution
53.8is the employing unit's share of $31,000,000. For calendar years 2017 through 2031, the
53.9employer supplemental contribution is the employing unit's share of $21,000,000.
53.10(e) Each employing unit's share under paragraph (d) is the amount determined from an
53.11allocation between each employing unit in the portion equal to the unit's employer
53.12supplemental contribution paid or payable under Minnesota Statutes 2012, section 353.50,
53.13during calendar year 2014.
53.14(f) The employer supplemental contribution amount under paragraph (d) for calendar
53.15year 2015 must be invoiced by the executive director of the Public Employees Retirement
53.16Association by July 1, 2015. The calendar year 2015 payment is payable in a single amount
53.17on or before September 30, 2015. For subsequent calendar years, the employer supplemental
53.18contribution under paragraph (d) must be invoiced on January 31 of each year and is payable
53.19in two parts, with the first half payable on or before July 31 and with the second half payable
53.20on or before December 15. Late payments are payable with compound interest at the rate
53.21of 0.71 percent per month for each month or portion of a month that has elapsed after the
53.22due date.
53.23(g) The employer supplemental contribution under paragraph (d) terminates on December
53.2431, 2031.

53.25    Sec. 39. Minnesota Statutes 2016, section 353.505, is amended to read:
53.26353.505 STATE CONTRIBUTIONS; FORMER MERF DIVISION.
53.27(a) On September 15, 2015, and September 15, 2016, and annually thereafter, the state
53.28shall pay to the general employees retirement plan of the Public Employees Retirement
53.29Association, with respect to the former MERF division, $6,000,000. By September 15 of
53.30each year after 2016, the state shall pay to the general employees retirement plan of the
53.31Public Employees Retirement Association, with respect to the former MERF division,
53.32$16,000,000.
53.33(b) State contributions under this section end on September 15, 2031.

54.1    Sec. 40. Minnesota Statutes 2016, section 471.6161, subdivision 8, is amended to read:
54.2    Subd. 8. School districts; group health insurance coverage. (a) Any entity providing
54.3group health insurance coverage to a school district must provide the school district with
54.4school district-specific nonidentifiable aggregate claims records for the most recent 24
54.5months within 30 days of the request.
54.6(b) School districts shall request proposals for group health insurance coverage as
54.7provided in subdivision 2 from a minimum of three potential sources of coverage. One of
54.8these requests must go to an administrator governed by chapter 43A. Entities referenced in
54.9subdivision 1 must respond to requests for proposals received directly from a school district.
54.10School districts that are self-insured must also follow these provisions, except as provided
54.11in paragraph (f). School districts must make requests for proposals at least 150 days prior
54.12to the expiration of the existing contract but not more frequently than once every 24 months.
54.13The request for proposals must include the most recently available 24 months of
54.14nonidentifiable aggregate claims data. The request for proposals must be publicly released
54.15at or prior to its release to potential sources of coverage.
54.16(c) School district contracts for group health insurance must not be longer than two four
54.17years unless the exclusive representative of the largest employment group and the school
54.18district agree otherwise.
54.19(d) All initial proposals shall be sealed upon receipt until they are all opened no less
54.20than 90 days prior to the plan's renewal date in the presence of up to three representatives
54.21selected by the exclusive representative of the largest group of employees. Section 13.591,
54.22subdivision 3 , paragraph (b), applies to data in the proposals. The representatives of the
54.23exclusive representative must maintain the data according to this classification and are
54.24subject to the remedies and penalties under sections 13.08 and 13.09 for a violation of this
54.25requirement.
54.26(e) A school district, in consultation with the same representatives referenced in paragraph
54.27(d), may continue to negotiate with any entity that submitted a proposal under paragraph
54.28(d) in order to reduce costs or improve services under the proposal. Following the negotiations
54.29any entity that submitted an initial proposal may submit a final proposal incorporating the
54.30negotiations, which is due no less than 75 days prior to the plan's renewal date. All the final
54.31proposals submitted must be opened at the same time in the presence of up to three
54.32representatives selected by the exclusive representative of the largest group of employees.
54.33Notwithstanding section 13.591, subdivision 3, paragraph (b), following the opening of the
54.34final proposals, all the proposals, including any made under paragraph (d), and other data
55.1submitted in connection with the proposals are public data. The school district may choose
55.2from any of the initial or final proposals without further negotiations and in accordance
55.3with subdivision 5, but not sooner than 15 days after the proposals become public data.
55.4(f) School districts that are self-insured shall follow all of the requirements of this section,
55.5except that:
55.6(1) their requests for proposals may be for third-party administrator services, where
55.7applicable;
55.8(2) these requests for proposals must be from a minimum of three different sources,
55.9which may include both entities referenced in subdivision 1 and providers of third-party
55.10administrator services;
55.11(3) for purposes of fulfilling the requirement to request a proposal for group insurance
55.12coverage from an administrator governed by chapter 43A, self-insured districts are not
55.13required to include in the request for proposal the coverage to be provided;
55.14(4) a district that is self-insured on or before the date of enactment, or that is self-insured
55.15with more than 1,000 insured lives, or a district in which the school board adopted a motion
55.16on or before May 14, 2014, to approve a self-insured health care plan to be effective July
55.171, 2014, may, but need not, request a proposal from an administrator governed by chapter
55.1843A;
55.19(5) (3) requests for proposals must be sent to providers no less than 90 days prior to the
55.20expiration of the existing contract; and
55.21(6) (4) proposals must be submitted at least 60 days prior to the plan's renewal date and
55.22all proposals shall be opened at the same time and in the presence of the exclusive
55.23representative, where applicable.
55.24(g) Nothing in this section shall restrict the authority granted to school district boards
55.25of education by section 471.59, except that districts will not be considered self-insured for
55.26purposes of this subdivision solely through participation in a joint powers arrangement.
55.27(h) An entity providing group health insurance to a school district under a multiyear
55.28contract must give notice of any rate or plan design changes applicable under the contract
55.29at least 90 days before the effective date of any change. The notice must be given to the
55.30school district and to the exclusive representatives of employees.
55.31(i) The exclusive representative of the largest group of employees shall comply with
55.32this subdivision and must not exercise any of their abilities under section 43A.316,
56.1subdivision 5, notwithstanding anything contained in that section, or any other law to the
56.2contrary.
56.3EFFECTIVE DATE.This section is effective the day following final enactment.

56.4    Sec. 41. Minnesota Statutes 2016, section 471.617, subdivision 2, is amended to read:
56.5    Subd. 2. Jointly. Any two or more statutory or home rule charter cities, counties, school
56.6districts, or instrumentalities thereof which together have more than 100 employees may
56.7jointly self-insure for any employee health benefits including long-term disability, but not
56.8for employee life benefits, subject to the same requirements as an individual self-insurer
56.9under subdivision 1. Self-insurance pools under this section are subject to section 62L.045.
56.10A self-insurance pool established and operated by one or more service cooperatives governed
56.11by section 123A.21 to provide coverage described in this subdivision qualifies under this
56.12subdivision, but the individual school district members of such a pool shall not be considered
56.13to be self-insured for purposes of section 471.6161, subdivision 8, paragraph (f). The
56.14commissioner of commerce may adopt rules pursuant to chapter 14, providing standards or
56.15guidelines for the operation and administration of self-insurance pools.
56.16EFFECTIVE DATE.This section is effective the day following final enactment.

56.17    Sec. 42. Minnesota Statutes 2016, section 508.12, subdivision 1, is amended to read:
56.18    Subdivision 1. Examiner and deputy examiner. The judges of the district court shall
56.19appoint a competent attorney in each county within their respective districts to be an examiner
56.20of titles and legal adviser to the registrar in said county, to which examiner all applications
56.21to register title to land are referred without further order, and may appoint attorneys to serve
56.22as deputy examiners who shall act in the name of the examiner and under the examiner's
56.23supervision and control, and the deputy's acts shall be the acts of the examiners. The examiner
56.24of titles and deputy examiners shall hold office subject to the will and discretion of the
56.25district court by whom appointed. The examiner's compensation and that of the examiner's
56.26deputies shall be fixed and determined by the court and paid in the same manner as the
56.27compensation of other county employees is paid except that in all counties having fewer
56.28than 75,000 inhabitants, and in Stearns, Dakota, Scott, Wright, Sherburne, and Olmsted
56.29Counties the fees and compensation of the examiners for services as legal adviser to the
56.30registrar shall be determined by the judges of the district court and paid in the same manner
56.31as the compensation of other county employees is paid, but in every other instance shall be
56.32paid by the person applying to have the person's title registered or for other action or relief
56.33which requires the services, certification or approval of the examiner.

57.1    Sec. 43. Minnesota Statutes 2016, section 518A.79, is amended by adding a subdivision
57.2to read:
57.3    Subd. 3a. Open meetings. Except as otherwise provided in this section, the task force
57.4is subject to chapter 13D. A meeting of the task force occurs when a quorum is present and
57.5the members receive information, discuss, or take action on any matter relating to the duties
57.6of the task force. The task force may conduct meetings as provided in section 13D.015 or
57.713D.02. The task force may conduct meetings at any location in the state that is appropriate
57.8for the purposes of the task force as long as the location is open and accessible to the public.
57.9For legislative members of the task force, enforcement of this subdivision is governed by
57.10section 3.055, subdivision 2. For nonlegislative members of the task force, enforcement of
57.11this subdivision is governed by section 13D.06, subdivisions 1 and 2.
57.12EFFECTIVE DATE.This section is effective January 1, 2018.

57.13    Sec. 44. Laws 2016, chapter 127, section 8, is amended to read:
57.14    Sec. 8. EFFECTIVE DATE; APPLICATION.
57.15Sections 1 to 7 are effective the day following final enactment. With respect to eyelash
57.16technicians, the Board of Cosmetologist Examiners must not enforce sections 1 to 7 until
57.17July 1, 2017 February 1, 2018. Any educational or training requirements developed by the
57.18board regarding eyelash technicians must be 14 hours.

57.19    Sec. 45. COMMISSIONER OF REVENUE TO DETERMINE ADEQUACY OF
57.20CURRENT RULES AND VALUATION PRACTICES FOR STATE-ASSESSED
57.21PIPELINES.
57.22The commissioner of revenue must review all current rules and practices relating to the
57.23valuation of pipeline companies that are assessed by the state. The commissioner must
57.24determine whether current rules and practices provide accurate estimates of market value.
57.25By February 1, 2018, the commissioner must prepare testimony for the house of
57.26representatives and senate committees having jurisdiction over property taxes recommending
57.27changes to the rules and practices to provide more accurate assessments and reduce the
57.28number and amount of judgments against the state and counties for state-assessed pipeline
57.29property. Costs associated with conducting the review required by this section must be paid
57.30from existing funds appropriated to the commissioner by law.

58.1    Sec. 46. OFFICE OF MN.IT SERVICES; PERFORMANCE OUTCOMES
58.2REQUIRED.
58.3    Subdivision 1. Completion of agency consolidation. No later than December 31, 2018,
58.4the state chief information officer must complete the executive branch information technology
58.5consolidation required by Laws 2011, First Special Session chapter 10, article 4. The head
58.6of any state agency subject to consolidation must assist the state chief information officer
58.7as necessary to implement the requirements of this subdivision.
58.8    Subd. 2. Information technology efficiencies and solutions. No later than December
58.931, 2018, the state chief information officer shall:
58.10(1) host at least 25 percent of all state agency servers on a public cloud solution;
58.11(2) store at least 35 percent of all state agency data on a public cloud solution; and
58.12(3) operate no more than six data centers statewide.
58.13    Subd. 3. Enterprise services; personnel efficiencies. No later than June 30, 2019, the
58.14state chief information officer shall reduce the Office of MN.IT Services' total cost for
58.15enterprise services personnel by at least $3,000,000.
58.16    Subd. 4. Legislative report; application consolidation. No later than January 1, 2018,
58.17the state chief information officer must submit a report to the chairs and ranking minority
58.18members of the house of representatives and senate committees with jurisdiction over state
58.19government finance on the status of business application software consolidation across state
58.20agencies. At a minimum, the report must describe the outcomes achieved to date, a plan
58.21and timeline for continued consolidation of business application software with measurable
58.22outcome goals, and recommendations, if any, on legislation necessary to facilitate
58.23achievement of these goals.

58.24    Sec. 47. INITIAL TRANSIT FINANCIAL ACTIVITY REPORTING.
58.25(a) The first transit financial activity review and report submitted under Minnesota
58.26Statutes, section 3.972, subdivision 4, must include financial information from the period
58.27beginning on January 1, 2016, and through the end of the fiscal quarter immediately preceding
58.28the date of the report.
58.29(b) The legislative auditor must provide a copy of the review under paragraph (a) to
58.30each county that is party to the joint powers agreement under Minnesota Statutes, section
58.31297A.992.
58.32EFFECTIVE DATE.This section is effective the day following final enactment.

59.1    Sec. 48. LIMIT ON EXPENDITURES FOR ADVERTISING.
59.2During the fiscal years ending June 30, 2018, and June 30, 2019, an executive branch
59.3agency's spending on advertising and promotions may not exceed 90 percent of the amount
59.4the agency spent on advertising and promotions during the fiscal year ending June 30, 2016.
59.5The commissioner of management and budget must ensure compliance with this limit and
59.6may issue guidelines and policies to executive agencies. The commissioner may forbid an
59.7agency from engaging in advertising as the commissioner determines necessary to ensure
59.8compliance with this section. This section does not apply to the Minnesota Lottery, Explore
59.9Minnesota Tourism, or the Minnesota State Colleges and Universities. Spending during the
59.10biennium ending June 30, 2019, on advertising relating to a declared emergency, an
59.11emergency, or a disaster, as those terms are defined in Minnesota Statutes, section 12.03,
59.12is excluded for purposes of this section.

59.13    Sec. 49. TRANSITION; STATE AUDITOR ENTERPRISE FUND.
59.14Notwithstanding any law to the contrary, receipts received by the state auditor on or
59.15after July 1, 2017, from examinations conducted by the state auditor under Minnesota
59.16Statutes, chapter 6, must be credited to the general fund. Amounts in the state auditor
59.17enterprise fund at the end of fiscal year 2017 are transferred to the general fund.

59.18    Sec. 50. REIMBURSEMENT OF LEGAL COSTS FOR WRIGHT, BECKER, AND
59.19RAMSEY COUNTIES.
59.20The state auditor shall reimburse Wright, Becker, and Ramsey Counties for legal fees
59.21incurred and costs and disbursements made as a result of defending against the state auditor's
59.22lawsuit against them.

59.23    Sec. 51. LIMIT ON INCREASE IN MANAGERIAL COMPENSATION.
59.24(a) Except as provided in paragraph (b), during the biennium ending June 30, 2019, an
59.25employee covered by the managerial plan in Minnesota Statutes, section 43A.18, subdivision
59.263, may not be granted a percentage increase in annual salary that exceeds the lesser of:
59.27(1) the percentage increase in Minnesota median household income, as determined by
59.28the American Community Survey compiled by the United States Bureau of the Census, for
59.29the most recent 12-month period for which data is available; or
59.30(2) the percentage increase in the Consumer Price Index, as determined by the United
59.31States Bureau of Labor Statistics, for the most recent 12-month period for which data is
59.32available.
60.1(b) This section does not apply to an employee whose salary is established according to
60.2Minnesota Statutes, section 15A.083.

60.3    Sec. 52. SALARY LIMIT.
60.4(a) During the fiscal year ending June 30, 2018, the aggregate amount spent by all
60.5executive branch agencies on employee salaries may not exceed 101 percent of the aggregate
60.6amount these agencies spent on employee salaries in the fiscal year ending June 30, 2017.
60.7(b) During the fiscal year ending June 30, 2019, the aggregate amount spent by all
60.8executive branch agencies on employee salaries may not exceed 103 percent of the aggregate
60.9amount these agencies spent on employee salaries in the fiscal year ending June 30, 2017.
60.10(c) For purposes of this section, "executive branch" has the meaning given in Minnesota
60.11Statutes, section 43A.02, subdivision 22, and includes the Minnesota State Colleges and
60.12Universities but not constitutional offices.

60.13    Sec. 53. ICE PALACE ON CAPITOL GROUNDS AUTHORIZED.
60.14    Subdivision 1. Use agreement; terms required. The commissioner of administration
60.15may enter a use agreement with the St. Paul Festival and Heritage Foundation for the
60.16construction, operation, and removal of an ice palace and related temporary structures on
60.17the grounds of the State Capitol complex. If a use agreement for this purpose is entered, the
60.18terms must include the following:
60.19(1) mutually agreed upon beginning and end dates for access to the grounds for
60.20construction, operation, and removal of the ice palace and related temporary structures;
60.21(2) notwithstanding Minnesota Rules, part 7525.0400, an allowance for the St. Paul
60.22Festival and Heritage Foundation to establish fees for admission to the ice palace and for
60.23participation in related activities, and for vendors to sell concessions subject to terms
60.24negotiated in the use agreement. Any fees established must allow a reasonable opportunity
60.25for all Minnesotans, regardless of income, to access the palace and participate in related
60.26activities, and must allow free or discounted admission to members of the military, military
60.27veterans, and their families. A fee may not be charged for general admission to the Capitol
60.28grounds or, to the extent practicable, for access to public memorials and monuments located
60.29on the Capitol grounds;
60.30(3) notwithstanding Minnesota Statutes, section 15B.28, and related rules of the Capitol
60.31Area Architectural and Planning Board, an allowance for the St. Paul Festival and Heritage
61.1Foundation to erect advertising devices promoting the ice palace and its sponsors and donors,
61.2subject to terms negotiated in the use agreement;
61.3(4) a restriction on private events that limit public access to the ice palace or surrounding
61.4Capitol grounds, without prior approval of the commissioner of administration; and
61.5(5) a requirement that, following removal of the ice palace and related temporary
61.6structures, the St. Paul Festival and Heritage Foundation restore the Capitol grounds to the
61.7same condition as existed prior to their construction.
61.8    Subd. 2. Additional terms. In addition to the terms required by subdivision 1, a use
61.9agreement authorized by this section may include additional terms as necessary to preserve
61.10the integrity, dignity, and security of the State Capitol building, the Capitol grounds, and
61.11the surrounding public buildings, memorials, and monuments, and to ensure compliance
61.12with other applicable laws governing commercial activity on public property.
61.13    Subd. 3. Costs, expenses, and liabilities. Unless expressly provided in the use agreement,
61.14any costs or expenses incurred by the state or the city of St. Paul in implementing a use
61.15agreement entered under this section must be paid or reimbursed by the St. Paul Festival
61.16and Heritage Foundation. Notwithstanding Minnesota Statutes, section 3.736, subdivision
61.171, and Minnesota Statutes, section 466.02, the state, the city of St. Paul, and their employees
61.18are not liable for losses incurred during the construction, operation, or removal of an ice
61.19palace or related temporary structures, or losses incurred by a person while visiting the ice
61.20palace or participating in related activities.
61.21EFFECTIVE DATE.This section is effective the day following final enactment.

61.22    Sec. 54. WAITE PARK; HOTEL INSPECTION.
61.23(a) Notwithstanding any other law to the contrary and in addition to any other requirement
61.24in law, the city of Waite Park may adopt an ordinance to require a hotel, motel, or lodging
61.25establishment operating within the city's jurisdiction to have a valid license issued by the
61.26city. The license may prohibit the licensee from:
61.27(1) knowingly allowing a room to be occupied for purposes of sex trafficking;
61.28(2) knowingly allowing a room to be occupied for the purposes of illegal drug activity;
61.29(3) knowingly allowing a room to be occupied by a minor for the consumption of
61.30alcoholic beverages;
61.31(4) prohibiting the inspection of the licensed premises;
62.1(5) failing to report observed or suspected illegal activity to the police in a reasonable
62.2period of time; and
62.3(6) failure to maintain the licensed premises to all building, fire, mechanical, zoning or
62.4licensing codes.
62.5The ordinance may provide for inspections related to the activities the license addresses.
62.6The city may collect a reasonable fee related to the cost of issuing the license and conducting
62.7inspections.
62.8(b) "Hotel," "motel," and "lodging establishment" are as defined in Minnesota Statutes,
62.9section 157.15.
62.10(c) The authority in this section does not replace or diminish the authority of the
62.11community health board to inspect and license any hotel, motel, or lodging establishment
62.12in the city.
62.13EFFECTIVE DATE.This section is effective the day following final enactment without
62.14local approval, as provided in Minnesota Statutes, section 645.023, subdivision 1, paragraph
62.15(a).

62.16    Sec. 55. EYELASH TECHNICIAN GRANDFATHERING.
62.17(a) The board must issue grandfathered eyelash technician licenses no later than February
62.181, 2018, under the conditions in this section.
62.19(b) A complete grandfathering application for an eyelash technician license must be
62.20received in the board office between August 1, 2017, and January 31, 2018, and must contain:
62.21(1) proof of a high school diploma or equivalent;
62.22(2) proof of completion of an eyelash extension training course before July 1, 2017;
62.23(3) proof of completion of a six-hour board-approved public health and safety course
62.24provided by a board-licensed school or a board-recognized professional association organized
62.25under Minnesota Statutes, chapter 317A. Four hours must be related to health, safety, and
62.26infection control and two hours must be related to Minnesota laws and rules governing
62.27cosmetology;
62.28(4) original passing results no more than one year old of board-approved laws and rules
62.29test and theory tests; and
62.30(5) the practitioner fees required under Minnesota Statutes, section 155A.25.
63.1(c) A complete grandfathering application for an eyelash salon manager license must
63.2be received in the board office between August 1, 2017, and January 31, 2018, and must
63.3contain:
63.4(1) proof of a high school diploma or equivalent;
63.5(2) proof of completion of an eyelash extension training course before July 1, 2017;
63.6(3) documentation of at least 2,700 hours of experience performing eyelash extensions
63.7within the last three years;
63.8(4) original passing results no more than one year old of board-approved laws and rules
63.9test and theory tests;
63.10(5) original passing results no more than one year old of board-approved salon manager
63.11test;
63.12(6) proof of a six-hour board-approved public health and safety course provided by a
63.13board-licensed school or a board-recognized professional association organized under
63.14Minnesota Statutes, chapter 317A. Four hours must be related to infection control and two
63.15hours must be related to Minnesota laws and rules; and
63.16(7) the practitioner fees required under Minnesota Statutes, section 155A.25.
63.17(d) Grandfathered licenses must not be expedited under Minnesota Statutes, section
63.18155A.25, subdivision 7. The application timelines under Minnesota Statutes, section 155A.25,
63.19subdivisions 5, 6, and 8, do not apply to grandfathered licenses.
63.20EFFECTIVE DATE.This section is effective the day following final enactment.

63.21    Sec. 56. EYELASH TECHNICIAN RULEMAKING.
63.22The Board of Cosmetologist Examiners shall adopt rules governing the eyelash technician
63.23and salon licenses, which must include scope of practice, the conditions and process of
63.24issuing and renewing the license, requirements related to education and testing, and 14 hours
63.25of training regarding application of eyelash extensions in a board-licensed school. The board
63.26may use the expedited rule process in Minnesota Statutes, section 14.389. The grant of
63.27rulemaking authority under this section expires May 31, 2019.

63.28    Sec. 57. EYELASH TECHNICIAN LICENSING.
63.29The Board of Cosmetologist Examiners must not issue an eyelash practitioner license
63.30before February 1, 2018, except for grandfathered licenses issued under section 39. The
64.1Board of Cosmetologist Examiners must not require a person to have an eyelash practitioner
64.2license for eyelash extensions before February 1, 2018.

64.3    Sec. 58. REPEALER.
64.4    Subdivision 1. State auditor enterprise fund. Minnesota Statutes 2016, section 6.581,
64.5subdivision 1, is repealed.
64.6    Subd. 2. Washington, D.C. office. Minnesota Statutes 2016, section 4.46, is repealed.

64.7ARTICLE 3
64.8STATE BUDGETING TECHNICAL

64.9    Section 1. Minnesota Statutes 2016, section 15.0596, is amended to read:
64.1015.0596 ADDITIONAL COMPENSATION FROM CONTINGENT FUND
64.11PROHIBITED.
64.12In all cases where the compensation of an officer of the state is fixed by law at a specified
64.13sum, it shall be unlawful for any such officer or employee to receive additional compensation
64.14for the performance of official services out of the contingent fund of the officer or the
64.15department, and it shall be unlawful for the head of any department of the state government
64.16to direct the payment of such additional compensation out of the contingent fund; and the
64.17commissioner of management and budget is hereby prohibited from issuing a warrant
64.18payment upon such contingent fund in payment of such additional compensation.
64.19Every person offending against the provisions of this section shall be guilty of a
64.20misdemeanor.

64.21    Sec. 2. Minnesota Statutes 2016, section 15.191, subdivision 1, is amended to read:
64.22    Subdivision 1. Emergency disbursements. Imprest cash funds for the purpose of making
64.23minor disbursements, providing for change, and providing employees with travel advances
64.24or a portion or all of their payroll warrant where the warrant payment has not been received
64.25through the payroll system, may be established by state departments or agencies from
64.26existing appropriations in the manner prescribed by this section.

64.27    Sec. 3. Minnesota Statutes 2016, section 15.191, subdivision 3, is amended to read:
64.28    Subd. 3. Warrant Payment against designated appropriation. Imprest cash funds
64.29established under this section shall be created by warrant drawn payment issued against the
64.30appropriation designated by the commissioner of management and budget.

65.1    Sec. 4. Minnesota Statutes 2016, section 16A.065, is amended to read:
65.216A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES
65.3DOCUMENTS.
65.4Notwithstanding section 16A.41, subdivision 1, the commissioner may allow an agency
65.5to make advance deposits or payments for software or software maintenance services for
65.6state-owned or leased electronic data processing equipment, for information technology
65.7hosting services, for sole source maintenance agreements where it is not cost-effective to
65.8pay in arrears, for exhibit booth space or boat slip rental when required by the renter to
65.9guarantee the availability of space, for registration fees where advance payment is required
65.10or advance payment discount is provided, and for newspaper, magazine, and other
65.11subscription fees, and other costs where advance payment discount is provided or are
65.12customarily paid for in advance. The commissioner may also allow advance deposits by
65.13any department with the Library of Congress and federal Supervisor of Documents for items
65.14to be purchased from those federal agencies.

65.15    Sec. 5. Minnesota Statutes 2016, section 16A.13, subdivision 2a, is amended to read:
65.16    Subd. 2a. Procedure. The commissioner shall see that the deduction for the withheld
65.17tax is made from an employee's pay on the payroll abstract. The commissioner shall approve
65.18one warrant payable payment to the commissioner for the total amount deducted on the
65.19abstract. Deductions from the pay of an employee paid direct by an agency shall be made
65.20by the employee's payroll authority. A later deduction must correct an error made on an
65.21earlier deduction. The paying authority shall see that a warrant or check payment for the
65.22deductions is promptly sent to the commissioner. The commissioner shall deposit the amount
65.23of the warrant or check payment to the credit of the proper federal authority or other person
65.24authorized by federal law to receive it.

65.25    Sec. 6. Minnesota Statutes 2016, section 16A.134, is amended to read:
65.2616A.134 CHARITABLE ORGANIZATIONS PAYROLL DEDUCTIONS.
65.27An employee's contribution to a registered combined charitable organization defined in
65.28section 43A.50 may be deducted from the employee's pay. On the employee's written request,
65.29the commissioner shall deduct a requested amount from the pay of the employee for each
65.30pay period. The commissioner shall issue a warrant payment in that amount to the specified
65.31organization.

66.1    Sec. 7. Minnesota Statutes 2016, section 16A.15, subdivision 3, is amended to read:
66.2    Subd. 3. Allotment and encumbrance. (a) A payment may not be made without prior
66.3obligation. An obligation may not be incurred against any fund, allotment, or appropriation
66.4unless the commissioner has certified a sufficient unencumbered balance or the accounting
66.5system shows sufficient allotment or encumbrance balance in the fund, allotment, or
66.6appropriation to meet it. The commissioner shall determine when the accounting system
66.7may be used to incur obligations without the commissioner's certification of a sufficient
66.8unencumbered balance. An expenditure or obligation authorized or incurred in violation of
66.9this chapter is invalid and ineligible for payment until made valid. A payment made in
66.10violation of this chapter is illegal. An employee authorizing or making the payment, or
66.11taking part in it, and a person receiving any part of the payment, are jointly and severally
66.12liable to the state for the amount paid or received. If an employee knowingly incurs an
66.13obligation or authorizes or makes an expenditure in violation of this chapter or takes part
66.14in the violation, the violation is just cause for the employee's removal by the appointing
66.15authority or by the governor if an appointing authority other than the governor fails to do
66.16so. In the latter case, the governor shall give notice of the violation and an opportunity to
66.17be heard on it to the employee and to the appointing authority. A claim presented against
66.18an appropriation without prior allotment or encumbrance may be made valid on investigation,
66.19review, and approval by the agency head in accordance with the commissioner's policy, if
66.20the services, materials, or supplies to be paid for were actually furnished in good faith
66.21without collusion and without intent to defraud. The commissioner may then draw a warrant
66.22to pay the claim just as properly allotted and encumbered claims are paid.
66.23(b) The commissioner may approve payment for materials and supplies in excess of the
66.24obligation amount when increases are authorized by section 16C.03, subdivision 3.
66.25(c) To minimize potential construction delay claims, an agency with a project funded
66.26by a building appropriation may allow a contractor to proceed with supplemental work
66.27within the limits of the appropriation before money is encumbered. Under this circumstance,
66.28the agency may requisition funds and allow contractors to expeditiously proceed with a
66.29construction sequence. While the contractor is proceeding, the agency shall immediately
66.30act to encumber the required funds.

66.31    Sec. 8. Minnesota Statutes 2016, section 16A.17, subdivision 5, is amended to read:
66.32    Subd. 5. Payroll duties. When the department prepares the payroll for an agency, the
66.33commissioner assumes the agency head's duties to make authorized or required deductions
67.1from, or employer contributions on, the pay of the agency's employees and to prepare and
67.2issue the necessary warrants payments.

67.3    Sec. 9. Minnesota Statutes 2016, section 16A.272, subdivision 3, is amended to read:
67.4    Subd. 3. Section 7.19 16A.271 to apply. The provisions of Minnesota Statutes 1941,
67.5section 7.19 16A.271, shall apply to deposits of securities made pursuant to this section.

67.6    Sec. 10. Minnesota Statutes 2016, section 16A.40, is amended to read:
67.716A.40 WARRANTS AND ELECTRONIC FUND TRANSFERS.
67.8Money must not be paid out of the state treasury except upon the warrant of the
67.9commissioner or an electronic fund transfer approved by the commissioner. Warrants must
67.10be drawn on printed blanks that are in numerical order. The commissioner shall enter, in
67.11numerical order in a warrant payment register, the number, amount, date, and payee for
67.12every warrant payment issued.
67.13The commissioner may require payees to supply their bank routing information to enable
67.14the payments to be made through an electronic fund transfer.

67.15    Sec. 11. Minnesota Statutes 2016, section 16A.42, subdivision 2, is amended to read:
67.16    Subd. 2. Approval. If the claim is approved, the commissioner shall complete and sign
67.17a warrant issue a payment in the amount of the claim.

67.18    Sec. 12. Minnesota Statutes 2016, section 16A.42, subdivision 4, is amended to read:
67.19    Subd. 4. Register. The commissioner shall enter a warrant payment in the warrant
67.20payment register as if it were a cash payment.

67.21    Sec. 13. Minnesota Statutes 2016, section 16A.42, is amended by adding a subdivision to
67.22read:
67.23    Subd. 5. Invalid claims. If the commissioner determines that a claim is invalid after
67.24issuing a warrant, the commissioner may void an unpaid warrant. The commissioner is not
67.25liable to any holder who took the void warrant for value.

67.26    Sec. 14. Minnesota Statutes 2016, section 16A.56, is amended to read:
67.2716A.56 COMMISSIONER'S RECEIPT AND CLAIM DUTIES.
68.1The commissioner or a designee shall examine every receipt and claim, and if proper,
68.2approve them, name the account to be charged or credited, and issue warrants payments to
68.3pay claims.

68.4    Sec. 15. Minnesota Statutes 2016, section 16A.671, subdivision 1, is amended to read:
68.5    Subdivision 1. Authority; advisory recommendation. To ensure that cash is available
68.6when needed to pay warrants make payments drawn on the general fund under appropriations
68.7and allotments, the commissioner may (1) issue certificates of indebtedness in anticipation
68.8of the collection of taxes levied for and other revenues appropriated to the general fund for
68.9expenditure during each biennium; and (2) issue additional certificates to refund outstanding
68.10certificates and interest on them, under the Constitution, article XI, section 6.

68.11    Sec. 16. Minnesota Statutes 2016, section 16B.37, subdivision 4, is amended to read:
68.12    Subd. 4. Work of department for another. To avoid duplication and improve efficiency,
68.13the commissioner may direct an agency to do work for another agency or may direct a
68.14division or section of an agency to do work for another division or section within the same
68.15agency and shall require reimbursement for the work. Reimbursements received by an
68.16agency are reappropriated to the account making the original expenditure in accordance
68.17with the transfer warrant procedure established by the commissioner of management and
68.18budget.

68.19    Sec. 17. Minnesota Statutes 2016, section 16D.03, subdivision 2, is amended to read:
68.20    Subd. 2. State agency reports. State agencies shall report quarterly to the commissioner
68.21of management and budget the debts owed to them. The commissioner of management and
68.22budget, in consultation with the commissioners of revenue and human services, and the
68.23attorney general, shall establish internal guidelines for the recognition, tracking, and
68.24reporting, and collection of debts owed the state. The internal guidelines must include
68.25accounting standards, performance measurements, and uniform reporting requirements
68.26applicable to all state agencies. The commissioner of management and budget shall require
68.27a state agency to recognize, track, report, and attempt to collect debts according to the
68.28internal guidelines. The commissioner, in consultation with the commissioner of management
68.29and budget and the attorney general, shall establish internal guidelines for the collection of
68.30debt owed to the state.

69.1    Sec. 18. Minnesota Statutes 2016, section 16D.09, subdivision 1, is amended to read:
69.2    Subdivision 1. Generally. When a debt is determined by a state agency to be
69.3uncollectible, the debt may be written off by the state agency from the state agency's financial
69.4accounting records and no longer recognized as an account receivable for financial reporting
69.5purposes. A debt is considered to be uncollectible when (1) all reasonable collection efforts
69.6have been exhausted, (2) the cost of further collection action will exceed the amount
69.7recoverable, (3) the debt is legally without merit or cannot be substantiated by evidence,
69.8(4) the debtor cannot be located, (5) the available assets or income, current or anticipated,
69.9that may be available for payment of the debt are insufficient, (6) the debt has been
69.10discharged in bankruptcy, (7) the applicable statute of limitations for collection of the debt
69.11has expired, or (8) it is not in the public interest to pursue collection of the debt. The
69.12determination of the uncollectibility of a Uncollectible debt must be reported by the state
69.13agency along with the basis for that decision as part of its quarterly reports to the
69.14commissioner of management and budget. The basis for the determination of the
69.15uncollectibility of the debt must be maintained by the state agency. Determining that the
69.16debt is uncollectible does not cancel the legal obligation of the debtor to pay the debt.

69.17    Sec. 19. Minnesota Statutes 2016, section 21.116, is amended to read:
69.1821.116 EXPENSES.
69.19All necessary expenses incurred in carrying out the provisions of sections 21.111 to
69.2021.122 and the compensation of officers, inspectors, and employees appointed, designated,
69.21or employed by the commissioner, as provided in such sections, together with their necessary
69.22traveling expenses, together with the traveling expenses of the members of the advisory
69.23seed potato certification committee, and other expenses necessary in attending committee
69.24meetings, shall be paid from, and only from, the seed potato inspection account, on order
69.25of the commissioner and commissioner of management and budget's voucher warrant budget.

69.26    Sec. 20. Minnesota Statutes 2016, section 43A.30, subdivision 2, is amended to read:
69.27    Subd. 2. Payroll deduction. If an eligible person who is on any payroll of the state or
69.28an eligible person's dependents is enrolled for any of the optional coverages made available
69.29by the commissioner pursuant to section 43A.26 the commissioner of management and
69.30budget, upon the person's written order, shall deduct from the salary or wages of the person
69.31those amounts required from time to time to maintain the optional coverages in force, and
69.32issue a warrant payment therefor to the appropriate carrier.

70.1    Sec. 21. Minnesota Statutes 2016, section 43A.49, is amended to read:
70.243A.49 VOLUNTARY UNPAID LEAVE OF ABSENCE.
70.3(a) Appointing authorities in state government may allow each employee to take unpaid
70.4leaves of absence for up to 1,040 hours in each two-year period beginning July 1 of each
70.5odd-numbered year. Each appointing authority approving such a leave shall allow the
70.6employee to continue accruing vacation and sick leave, be eligible for paid holidays and
70.7insurance benefits, accrue seniority, and accrue service credit and credited salary in retirement
70.8plans as if the employee had actually been employed during the time of leave. An employee
70.9covered by the unclassified plan may voluntarily make the employee contributions to the
70.10unclassified plan during the leave of absence. If the employee makes these contributions,
70.11the appointing authority must make the employer contribution. If the leave of absence is
70.12for one full pay period or longer, any holiday pay shall be included in the first payroll warrant
70.13payment after return from the leave of absence. The appointing authority shall attempt to
70.14grant requests for the unpaid leaves of absence consistent with the need to continue efficient
70.15operation of the agency. However, each appointing authority shall retain discretion to grant
70.16or refuse to grant requests for leaves of absence and to schedule and cancel leaves, subject
70.17to the applicable provisions of collective bargaining agreements and compensation plans.
70.18(b) To receive eligible service credit and credited salary in a defined benefit plan, the
70.19member shall pay an amount equal to the applicable employee contribution rates. If an
70.20employee pays the employee contribution for the period of the leave under this section, the
70.21appointing authority must pay the employer contribution. The appointing authority may, at
70.22its discretion, pay the employee contributions. Contributions must be made in a time and
70.23manner prescribed by the executive director of the applicable retirement system.

70.24    Sec. 22. Minnesota Statutes 2016, section 49.24, subdivision 13, is amended to read:
70.25    Subd. 13. Disposition of unclaimed dividends. Upon the liquidation of any financial
70.26institution liquidated by the commissioner as statutory liquidator, if any dividends or other
70.27moneys set apart for the payment of claims remain unpaid, and the places of residence of
70.28the owners thereof are unknown to the commissioner, the commissioner may pay same into
70.29the state treasury as hereinafter provided. Whenever the commissioner shall be satisfied
70.30that the process of liquidation should not be further continued the commissioner may make
70.31and certify triplicate lists of any such unclaimed dividends or other moneys, specifying the
70.32name of each owner, the amount due, and the last known address. Upon one of such lists,
70.33to be retained by the commissioner shall be endorsed the commissioner's order that such
70.34unclaimed moneys be forthwith deposited in the state treasury. When so deposited, one of
71.1said lists shall be delivered to the commissioner of management and budget and the
71.2commissioner shall retain in the commissioner's office such records and proofs concerning
71.3said claims as the commissioner may have, which shall thereafter remain on file in the
71.4office. The commissioner of management and budget shall execute upon the list retained
71.5by the commissioner a receipt for such money, which shall operate as a full discharge of
71.6the commissioner on account of such claims. At any time within six years after such receipt,
71.7but not afterward, the claimant may apply to the commissioner for the amount so deposited
71.8for the claimant's benefit, and upon proof satisfactory to the governor, the attorney general
71.9and the commissioner, or to a majority of them, they shall give an order to the commissioner
71.10of management and budget to issue a warrant payment for such amount, and such warrant
71.11payment shall thereupon be issued. If no such claim be presented within six years, the
71.12commissioner shall so note upon the commissioner's copy of said list and certify the fact
71.13to the commissioner of management and budget who shall make like entries upon the
71.14commissioner of management and budget's corresponding lists; and all further claims to
71.15said money shall be barred. Provided, that the commissioner of management and budget
71.16shall transfer to the commissioner of commerce's liquidation fund created by this section
71.17not to exceed 50 percent of the amount so turned over by the commissioner, to be used to
71.18partially defray expenses in connection with the liquidation of closed banks and the conduct
71.19of the liquidation division, in such amounts and at such times as the commissioner shall
71.20request.
71.21There is hereby appropriated to the persons entitled to such amounts, from such moneys
71.22in the state treasury not otherwise appropriated, an amount sufficient to make such payment.

71.23    Sec. 23. Minnesota Statutes 2016, section 49.24, subdivision 16, is amended to read:
71.24    Subd. 16. Transfers to liquidation fund. The following moneys shall be transferred to
71.25and deposited in the commissioner of commerce's liquidation fund:
71.26(1) All moneys paid to the commissioner of management and budget by the commissioner
71.27out of funds of any financial institution in the commissioner's hands as reimbursement for
71.28services and expenses pursuant to the provisions of subdivision 7.
71.29(2) All moneys in the possession of the commissioner set aside for the purpose of meeting
71.30unforeseen and contingent expenses incident to the liquidation of closed financial institutions,
71.31which funds have been or shall be hereafter established by withholding portions of final
71.32liquidating dividends in such cases.
71.33(3) All moneys which the commissioner shall request the commissioner of management
71.34and budget to transfer to such fund pursuant to the provisions of subdivision 13.
72.1(4) All moneys in the possession of the commissioner now carried on the commissioner's
72.2books in "stamp account," "suspense account," and "unclaimed deposit account."
72.3(5) All moneys in the possession of the commissioner which the commissioner may be
72.4authorized by order of any district court having jurisdiction of any liquidation proceedings
72.5to transfer to such fund, or to use for any of the purposes for which the fund is established.
72.6(6) All moneys in the possession of the commissioner carried on the commissioner's
72.7books in the "unclaimed bonds account." At any time within six years after any bond the
72.8proceeds of the sale of which constitute a portion of the moneys in this paragraph referred
72.9to came into the possession of the commissioner as liquidator of any financial institution,
72.10any claimant thereto may apply to the commissioner for the proceeds of the sale of such
72.11bond, and, upon proof satisfactory to the governor, the attorney general, and the
72.12commissioner, or a majority of them, they shall give an order to the commissioner of
72.13management and budget to issue a warrant payment for such amount, without interest, and
72.14such warrant payment shall thereupon be issued and the amount thereof paid out of the
72.15commissioner of commerce's liquidation fund. If no such claim be presented within such
72.16period, all further claims to the proceeds of any such bond shall be barred.
72.17(7) All sums which the commissioner may receive from the sale of personal property of
72.18liquidated financial institutions where the final dividend has been paid and no disposition
72.19of said property made by any order of the court, and the proceeds of sales of any personal
72.20property used by the liquidation division which have been purchased with funds of financial
72.21institutions in liquidation.

72.22    Sec. 24. Minnesota Statutes 2016, section 69.031, subdivision 1, is amended to read:
72.23    Subdivision 1. Commissioner's warrant payment. (a) The commissioner of management
72.24and budget shall issue to the Public Employees Retirement Association on behalf of a
72.25municipality or independent nonprofit firefighting corporation that is a member of the
72.26voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, to
72.27the Department of Natural Resources, the Department of Public Safety, or the county,
72.28municipality, or independent nonprofit firefighting corporation certified to the commissioner
72.29of management and budget by the commissioner a warrant payment for an amount equal
72.30to the amount of fire state aid or police state aid, whichever applies, certified for the
72.31applicable state aid recipient by the commissioner under section 69.021.
72.32(b) Fire state aid and police state aid is payable on October 1 annually. The amount of
72.33state aid due and not paid by October 1 accrues interest payable to the state aid recipient at
73.1the rate of one percent for each month or part of a month that the amount remains unpaid
73.2after October 1.

73.3    Sec. 25. Minnesota Statutes 2016, section 80A.65, subdivision 9, is amended to read:
73.4    Subd. 9. Generally. No filing for which a fee is required shall be deemed to be filed or
73.5given any effect until the proper fee is paid. All fees and charges collected by the
73.6administrator shall be covered into the state treasury. When any person is entitled to a refund
73.7under this section, the administrator shall certify to the commissioner of management and
73.8budget the amount of the fee to be refunded to the applicant, and the commissioner of
73.9management and budget shall issue a warrant in payment thereof out of the fund to which
73.10such fee was credited in the manner provided by law. There is hereby appropriated to the
73.11person entitled to such refunds from the fund in the state treasury to which such fees were
73.12credited an amount to make such refunds and payments.

73.13    Sec. 26. Minnesota Statutes 2016, section 84A.23, subdivision 4, is amended to read:
73.14    Subd. 4. Drainage ditch bonds; reports. (a) Immediately after a project is approved
73.15and accepted and then after each distribution of the tax collections on the June and November
73.16tax settlements, the county auditor shall certify to the commissioner of management and
73.17budget the following information relating to bonds issued to finance or refinance public
73.18drainage ditches wholly or partly within the projects, and the collection of assessments
73.19levied on account of the ditches:
73.20(1) the amount of principal and interest to become due on the bonds before the next tax
73.21settlement and distribution;
73.22(2) the amount of money collected from the drainage assessments and credited to the
73.23funds of the ditches; and
73.24(3) the amount of the deficit in the ditch fund of the county chargeable to the ditches.
73.25(b) On approving the certificate, the commissioner of management and budget shall
73.26draw a warrant issue a payment, payable out of the fund pertaining to the project, for the
73.27amount of the deficit in favor of the county.
73.28(c) As to public drainage ditches wholly within a project, the amount of money paid to
73.29or for the benefit of the county under paragraph (b) must never exceed the principal and
73.30interest of the bonds issued to finance or refinance the ditches outstanding at the time of
73.31the passage and approval of sections 84A.20 to 84A.30, less money on hand in the county
73.32ditch fund to the credit of the ditches. The liabilities must be reduced from time to time by
74.1the amount of all payments of assessments after April 25, 1931, made by the owners of
74.2lands assessed before that date for benefits on account of the ditches.
74.3(d) As to public drainage ditches partly within and partly outside a project, the amount
74.4paid from the fund pertaining to the project to or for the benefit of the county must never
74.5exceed a certain percentage of bonds issued to finance and refinance the ditches so
74.6outstanding, less money on hand in the county ditch fund to the credit of the ditches on
74.7April 25, 1931. The percentage must bear the same proportion to the whole amount of these
74.8bonds as the original benefits assessed against lands within the project bear to the original
74.9total benefits assessed to the entire system of the ditches. This liability shall be reduced
74.10from time to time by the payments of all assessments extended after April 25, 1931, made
74.11by the owners of lands within the project of assessments for benefits assessed before that
74.12date on account of a ditch.
74.13(e) The commissioner of management and budget may provide and prescribe forms for
74.14reports required by sections 84A.20 to 84A.30 and require any additional information from
74.15county officials that the commissioner of management and budget considers necessary for
74.16the proper administration of sections 84A.20 to 84A.30.

74.17    Sec. 27. Minnesota Statutes 2016, section 84A.33, subdivision 4, is amended to read:
74.18    Subd. 4. Ditch bonds; funds; payments to counties. (a) Upon the approval and
74.19acceptance of a project and after each distribution of the tax collections for the June and
74.20November tax settlements, the county auditor shall certify to the commissioner of
74.21management and budget the following information about bonds issued to finance or refinance
74.22public drainage ditches wholly or partly within the projects, and the collection of assessments
74.23levied for the ditches:
74.24(1) the amount of principal and interest to become due on the bonds before the next tax
74.25settlement and distribution;
74.26(2) the amount of money collected from the drainage assessments and credited to the
74.27funds of the ditches, not already sent to the commissioner of management and budget as
74.28provided in sections 84A.31 to 84A.42; and
74.29(3) the amount of the deficit in the ditch fund of the county chargeable to the ditches.
74.30(b) On approving this certificate of the county auditor, the commissioner of management
74.31and budget shall draw a warrant issue a payment, payable out of the fund provided for in
74.32sections 84A.31 to 84A.42, and send it to the county treasurer of the county. These funds
74.33must be credited to the proper ditch of the county and placed in the ditch bond fund of the
75.1county, which is created, and used only to pay the ditch bonded indebtedness of the county
75.2assumed by the state under sections 84A.31 to 84A.42. The total amount of warrants drawn
75.3payments issued must not exceed in any one year the total amount of the deficit provided
75.4for under this section.
75.5(c) The state is subrogated to all title, right, interest, or lien of the county in or on the
75.6lands so certified within these projects.
75.7(d) As to public drainage ditches wholly within a project, the amount paid to, or for the
75.8benefit of, the county under this subdivision must never exceed the principal and interest
75.9of the bonds issued to finance or refinance a ditch outstanding on April 22, 1933, less money
75.10on hand in the county ditch fund to the credit of a ditch. These liabilities must be reduced
75.11from time to time by the amount of any payments of assessments extended after April 22,
75.121933, made by the owners of lands assessed before that date for benefits on account of the
75.13ditches.
75.14As to public drainage ditches partly within and partly outside a project the amount paid
75.15from the fund pertaining to the project to or for the benefit of the county must never exceed
75.16a certain percentage of bonds issued to finance and refinance a ditch so outstanding, less
75.17money on hand in the county ditch fund to the credit of a ditch on April 22, 1932. The
75.18percentage must bear the same proportion to the whole amount of the bonds as the original
75.19benefits assessed against these lands within the project bear to the original total benefits
75.20assessed to the entire system for a ditch. This liability must be reduced from time to time
75.21by the payments of all assessments extended after April 22, 1933, made by the owners of
75.22lands within the project of assessments for benefits assessed before that date on account of
75.23a ditch.

75.24    Sec. 28. Minnesota Statutes 2016, section 84A.40, is amended to read:
75.2584A.40 COUNTY MAY ASSUME BONDS.
75.26Any county where a project or portion of it is located may voluntarily assume, in the
75.27manner specified in this section, the obligation to pay a portion of the principal and interest
75.28of the bonds issued before the approval and acceptance of the project and remaining unpaid
75.29at maturity, of any school district or town in the county and wholly or partly within the
75.30project. The portion must bear the same proportion to the whole of the unpaid principal and
75.31interest as the last net tax capacity, before the acceptance of the project, of lands then
75.32acquired by the state under sections 84A.31 to 84A.42 in the school districts or towns bears
75.33to the total net tax capacity for the same year of the school district or town. This assumption
75.34must be evidenced by a resolution of the county board of the county. A copy of the resolution
76.1must be certified to the commissioner of management and budget within one year after the
76.2acceptance of the project.
76.3Later, if any of the bonds remains unpaid at maturity, the county board shall, upon
76.4demand of the governing body of the school district or town or of a bondholder, provide
76.5for the payment of the portion assumed. The county shall levy general taxes on all the taxable
76.6property of the county for that purpose, or issue its bonds to raise the sum needed, conforming
76.7to law respecting the issuance of county refunding bonds. The proceeds of taxes or bonds
76.8must be paid by the county treasurer to the treasurer of the school district or town. No
76.9payments shall be made by the county to the school district or town until the money in the
76.10treasury of the school district or town, together with the money to be paid by the county, is
76.11sufficient to pay in full each of the bonds as it becomes due.
76.12If a county fails to adopt and certify the resolution, the commissioner of management
76.13and budget shall withhold from the payments to be made to the county under section 84A.32
76.14a sum equal to that portion of the principal and interest of the outstanding bonds that bears
76.15the same proportion to the whole of the bonds as the above determined net tax capacity of
76.16lands acquired by the state within the project bears to the total net tax capacity for the same
76.17year of the school district or town. Money withheld from the county must be set aside in
76.18the state treasury and not paid to the county until the full principal and interest of the school
76.19district and town bonds have been paid.
76.20If any bonds remain unpaid at maturity, upon the demand of the governing body of the
76.21school district or town, or a bondholder, the commissioner of management and budget shall
76.22issue to the treasurer of the school district or town a warrant payment for that portion of the
76.23past due principal and interest computed as in the case of the county's liability authorized
76.24in this section to be voluntarily assumed. Money received by a school district or town under
76.25this section must be applied to the payment of past-due bonds and interest.

76.26    Sec. 29. Minnesota Statutes 2016, section 84A.52, is amended to read:
76.2784A.52 ACCOUNTS; EXAMINATION, APPROPRIATION, PAYMENT.
76.28As a part of the examination provided for by section 6.481, of the accounts of the several
76.29counties within a game preserve, area, or project established under section 84A.01, 84A.20,
76.30or 84A.31, the state auditor shall segregate the audit of the accounts reflecting the receipt
76.31and disbursement of money collected or disbursed under this chapter or from the sale of
76.32tax-forfeited lands held by the state under section 84A.07, 84A.26, or 84A.36. The auditor
76.33shall also include in the reports required by section 6.481 summary statements as of
76.34December 31 before the examination that set forth the proportionate amount of principal
77.1and interest due from the state to the individual county and any money due the state from
77.2the county remaining unpaid under this chapter, or from the sale of any tax-forfeited lands
77.3referred to in this section, and other information required by the commissioner of management
77.4and budget. On receiving a report, the commissioner of management and budget shall
77.5determine the net amount due to the county for the period covered by the report and shall
77.6draw a warrant issue a payment upon the state treasury payable out of the consolidated fund
77.7for that amount. It must be paid to and received by the county as payment in full of all
77.8amounts due for the period stated on the warrants payments from the state under any
77.9provision of this chapter.
77.10Money to pay the warrants make the payments is appropriated to the counties entitled
77.11to payment from the consolidated fund in the state treasury.

77.12    Sec. 30. Minnesota Statutes 2016, section 88.12, subdivision 1, is amended to read:
77.13    Subdivision 1. Limitation. The compensation and expenses of persons temporarily
77.14employed in emergencies in suppression or control of wildfires shall be fixed by the
77.15commissioner of natural resources or an authorized agent and paid as provided by law. Such
77.16compensation shall not exceed the maximum rate for comparable labor established as
77.17provided by law or rules, but shall not be subject to any minimum rate so established. The
77.18commissioner is authorized to draw and expend from money appropriated for the purposes
77.19of sections 88.03 to 88.22 a reasonable sum and through forest officers or other authorized
77.20agent be used in paying emergency expenses, including just compensation for services
77.21rendered by persons summoned and for private property used, damaged, or appropriated
77.22under sections 88.03 to 88.22. The commissioner of management and budget is authorized
77.23to draw a warrant issue a payment for this sum when duly approved by the commissioner.
77.24The commissioner or agent in charge shall take proper subvouchers or receipts from all
77.25persons to whom these moneys are paid, and after these subvouchers have been approved
77.26they shall be filed with the commissioner of management and budget. Authorized funds as
77.27herein provided at any time shall be deposited, subject to withdrawal or disbursement by
77.28check or otherwise for the purposes herein prescribed, in a bank authorized and bonded to
77.29receive state deposits; and the bond of this bank to the state shall cover and include this
77.30deposit.

77.31    Sec. 31. Minnesota Statutes 2016, section 94.522, is amended to read:
77.3294.522 TRANSMISSION OF WARRANTS PAYMENTS TO COUNTY
77.33TREASURERS; USE OF PROCEEDS.
78.1It shall be the duty of the commissioner of management and budget to transmit warrants
78.2on payments from the state treasury to the county treasurer of the respective counties for
78.3the sums that may be due in accordance with section 94.521, which sums are hereby
78.4appropriated out of the state treasury from the amounts received from the United States
78.5government pursuant to the aforesaid acts of Congress, and such money shall be used by
78.6the counties receiving the same for the purposes and in the proportions herein provided.

78.7    Sec. 32. Minnesota Statutes 2016, section 94.53, is amended to read:
78.894.53 WARRANT PAYMENT TO COUNTY TREASURERS; FEDERAL LOANS
78.9TO COUNTIES.
78.10It shall be the duty of the commissioner of management and budget to transmit warrants
78.11on payments from the state treasury to the county treasurers of the respective counties for
78.12the sum that may be due in accordance with sections 94.52 to 94.54, which sum or sums
78.13are hereby appropriated out of the state treasury from the amounts received from the United
78.14States government pursuant to the aforesaid act of Congress. The commissioner of
78.15management and budget, upon being notified by the federal government or any agencies
78.16thereof that a loan has been made to any such county the repayment of which is to be made
78.17from such fund, is authorized to transmit a warrant or warrants payment to the federal
78.18government or any agency thereof sufficient to repay such loan out of any money apportioned
78.19or due to such county under the provisions of such act of Congress, approved May 23, 1908
78.20(Statutes at Large, volume 35, page 260).

78.21    Sec. 33. Minnesota Statutes 2016, section 116J.64, subdivision 7, is amended to read:
78.22    Subd. 7. Processing. (a) An Indian desiring a loan for the purpose of starting a business
78.23enterprise or expanding an existing business shall make application to the appropriate tribal
78.24government. The application shall be forwarded to the appropriate eligible organization, if
78.25it is participating in the program, for consideration in conformity with the plans submitted
78.26by said tribal governments. The tribal government may approve the application if it
78.27determines that the loan would advance the goals of the Indian business loan program. If
78.28the tribal government is not participating in the program, the agency may directly approve
78.29or deny the loan application.
78.30(b) If the application is approved, the tribal government shall forward the application,
78.31together with all relevant documents pertinent thereto, to the commissioner of the agency,
78.32who shall cause a warrant request a payment to be drawn in favor of issued to the applicant
79.1or the applicable tribal government, or the agency, if it is administering the loan, with
79.2appropriate notations identifying the borrower.
79.3(c) The tribal government, eligible organization, or the agency, if it is administering the
79.4loan, shall maintain records of transactions for each borrower in a manner consistent with
79.5good accounting practice. The interest rate on a loan shall be established by the tribal
79.6government or the agency, but may be no less than two percent per annum nor more than
79.7ten percent per annum. When any portion of a debt is repaid, the tribal government, eligible
79.8organization, or the agency, if it is administering the loan, shall remit the amount so received
79.9plus interest paid thereon to the commissioner of management and budget through the
79.10agency. The amount so received shall be credited to the Indian business loan account.
79.11(d) On the placing of a loan, additional money equal to ten percent of the total amount
79.12made available to any tribal government, eligible organization, or the agency, if it is
79.13administering the loan, for loans during the fiscal year shall be paid to the tribal government,
79.14eligible organization, or the agency, prior to December 31 for the purpose of financing
79.15administrative costs.

79.16    Sec. 34. Minnesota Statutes 2016, section 126C.55, subdivision 2, is amended to read:
79.17    Subd. 2. Notifications; payment; appropriation. (a) If a school district or intermediate
79.18school district believes that it may be unable to make a principal or interest payment on any
79.19outstanding debt obligation on the date that payment is due, it must notify the commissioner
79.20as soon as possible, but not less than 15 working days before the date that principal or
79.21interest payment is due. The notice must include the name of the school district or
79.22intermediate school district, an identification of the debt obligation issue in question, the
79.23date the payment is due, the amount of principal and interest due on the payment date, the
79.24amount of principal or interest that the school district or intermediate school district will be
79.25unable to repay on that date, the paying agent for the debt obligation, the wire transfer
79.26instructions to transfer funds to that paying agent, and an indication as to whether a payment
79.27is being requested by the school district or intermediate school district under this section.
79.28If a paying agent becomes aware of a potential default, it shall inform the commissioner of
79.29that fact. After receipt of a notice which requests a payment under this section, after
79.30consultation with the school district or intermediate school district and the paying agent,
79.31and after verification of the accuracy of the information provided, the commissioner shall
79.32notify the commissioner of management and budget of the potential default. The notice
79.33must include a final figure as to the amount due that the school district or intermediate
79.34school district will be unable to repay on the date due.
80.1    (b) Except as provided in subdivision 9, upon receipt of this notice from the
80.2commissioner, the commissioner of management and budget shall issue a warrant payment
80.3and authorize the commissioner of education to pay to the paying agent for the debt obligation
80.4the specified amount on or before the date due. The amounts needed for the purposes of
80.5this subdivision are annually appropriated to the department from the state general fund.
80.6    (c) The Departments of Education and Management and Budget must jointly develop
80.7detailed procedures for school districts and intermediate school districts to notify the state
80.8that they have obligated themselves to be bound by the provisions of this section, procedures
80.9for school districts or intermediate school districts and paying agents to notify the state of
80.10potential defaults and to request state payment under this section, and procedures for the
80.11state to expedite payments to prevent defaults. The procedures are not subject to chapter
80.1214.

80.13    Sec. 35. Minnesota Statutes 2016, section 126C.55, subdivision 9, is amended to read:
80.14    Subd. 9. State bond rating. If the commissioner of management and budget determines
80.15that the credit rating of the state would be adversely affected thereby, the commissioner of
80.16management and budget shall not issue warrants payments under subdivision 2 for the
80.17payment of principal or interest on any debt obligations for which a district did not, prior
80.18to their issuance, obligate itself to be bound by the provisions of this section.

80.19    Sec. 36. Minnesota Statutes 2016, section 126C.68, subdivision 3, is amended to read:
80.20    Subd. 3. Warrant Payment. The commissioner shall issue to each district whose note
80.21has been so received a warrant payment on the debt service loan account of the maximum
80.22effort school loan fund, payable on presentation to the commissioner of management and
80.23budget out of any money in such account. The warrant payment shall be issued by the
80.24commissioner in sufficient time to coincide with the next date on which the district is
80.25obligated to make principal or interest payments on its bonded debt in the ensuing year.
80.26Interest must accrue from the date such warrant payment is issued. The proceeds thereof
80.27must be used by the district to pay principal or interest on its bonded debt falling due in the
80.28ensuing year.

80.29    Sec. 37. Minnesota Statutes 2016, section 126C.69, subdivision 14, is amended to read:
80.30    Subd. 14. Participation by county auditor; record of contract; payment of loan. The
80.31district must file a copy of the capital loan contract with the county auditor of each county
80.32in which any part of the district is situated. The county auditor shall enter the capital loan,
81.1evidenced by the contract, in the auditor's bond register. The commissioner shall keep a
81.2record of each capital loan and contract showing the name and address of the district, the
81.3date of the contract, and the amount of the loan initially approved. On receipt of the resolution
81.4required in subdivision 12, the commissioner shall issue warrants payments, which may be
81.5dispersed in accordance with the schedule in the contract, on the capital loan account for
81.6the amount that may be disbursed under subdivision 1. Interest on each disbursement of the
81.7capital loan amount accrues from the date on which the commissioner of management and
81.8budget issues the warrant payment.

81.9    Sec. 38. Minnesota Statutes 2016, section 127A.34, subdivision 1, is amended to read:
81.10    Subdivision 1. Copy to commissioner of management and budget; appropriation.
81.11The commissioner shall furnish a copy of the apportionment of the school endowment fund
81.12to the commissioner of management and budget, who thereupon shall draw warrants on
81.13issue payments from the state treasury, payable to the several districts, for the amount due
81.14each district. There is hereby annually appropriated from the school endowment fund the
81.15amount of such apportionments.

81.16    Sec. 39. Minnesota Statutes 2016, section 127A.40, is amended to read:
81.17127A.40 MANNER OF PAYMENT OF STATE AIDS.
81.18It shall be the duty of the commissioner to deliver to the commissioner of management
81.19and budget a certificate for each district entitled to receive state aid under the provisions of
81.20this chapter. Upon the receipt of such certificate, it shall be the duty of the commissioner
81.21of management and budget to draw a warrant in favor of issue a payment to the district for
81.22the amount shown by each certificate to be due to the district. The commissioner of
81.23management and budget shall transmit such warrants payments to the district together with
81.24a copy of the certificate prepared by the commissioner.

81.25    Sec. 40. Minnesota Statutes 2016, section 136F.46, subdivision 1, is amended to read:
81.26    Subdivision 1. Request; warrant payment. The commissioner of management and
81.27budget, upon the written request of an employee of the board, may deduct from an employee's
81.28salary or wages the amount requested for payment to a nonprofit state college or university
81.29foundation meeting the requirements in subdivision 2. The commissioner shall issue a
81.30warrant payment for the deducted amount to the nonprofit foundation. The Penny Fellowship
81.31and the Nellie Stone Johnson Scholarship Program of the Minnesota State University Student
82.1Association shall be considered nonprofit state college and university foundations for
82.2purposes of this section.

82.3    Sec. 41. Minnesota Statutes 2016, section 136F.70, subdivision 3, is amended to read:
82.4    Subd. 3. Refunds. The board may make refunds to students for tuition, activity fees,
82.5union fees, and any other fees from imprest cash funds. The imprest cash fund shall be
82.6reimbursed periodically by checks or warrants drawn on payments issued from the funds
82.7and accounts to which the refund should ultimately be charged. The amounts necessary to
82.8pay the refunds are appropriated from the funds and accounts to which they are charged.

82.9    Sec. 42. Minnesota Statutes 2016, section 162.08, subdivision 10, is amended to read:
82.10    Subd. 10. Project approval, reports. When the county board of any county determines
82.11to do any construction work on a county state-aid highway or other road eligible for the
82.12expenditure of state aid funds within the county, and desires to expend on such work a
82.13portion of the money apportioned or allocated to it out of the county state-aid highway fund,
82.14the county shall first obtain approval of the project by the commissioner. Thereafter the
82.15county engineer shall make such reports in such manner as the commissioner requires under
82.16rules of the commissioner. Upon receipt of satisfactory reports, the commissioner shall
82.17certify to the commissioner of management and budget the amount of money that is eligible
82.18to be paid from the county's apportionment or allocation for the work under contract or
82.19actually completed. The commissioner of management and budget shall thereupon issue a
82.20warrant payment in that amount payable to the county treasurer. In no event shall the warrant
82.21payment with all other warrants payments issued exceed the amount apportioned and
82.22allocated to the county.

82.23    Sec. 43. Minnesota Statutes 2016, section 162.08, subdivision 11, is amended to read:
82.24    Subd. 11. Certification required to issue warrants payment. The commissioner of
82.25management and budget shall not issue any warrants payments without the certification of
82.26the commissioner.

82.27    Sec. 44. Minnesota Statutes 2016, section 162.14, subdivision 4, is amended to read:
82.28    Subd. 4. Project approval and reports. When the governing body of any such city
82.29determines to do any construction work on any municipal state-aid street or other streets
82.30within the city upon which money apportioned out of the municipal state-aid street fund
82.31may be used as provided in subdivision 2, the governing body shall first obtain the approval
83.1of the commissioner. Thereafter, the engineer of the city shall make reports in such manner
83.2as the commissioner requires in accordance with the commissioner's rules. Upon receipt of
83.3satisfactory reports the commissioner shall certify to the commissioner of management and
83.4budget the amount of money that is eligible to be paid from the city's apportionment for the
83.5work under contract or actually completed. The commissioner of management and budget
83.6shall thereupon issue a warrant payment in that amount payable to the fiscal officers of the
83.7city. In no event shall the warrant payment with all other warrants payments issued exceed
83.8the amount apportioned to the city.

83.9    Sec. 45. Minnesota Statutes 2016, section 162.14, subdivision 5, is amended to read:
83.10    Subd. 5. Certification required to issue warrant payment. The commissioner of
83.11management and budget shall not issue any warrants payments as provided for in subdivision
83.124 without the prior certification of the commissioner.

83.13    Sec. 46. Minnesota Statutes 2016, section 162.18, subdivision 4, is amended to read:
83.14    Subd. 4. Certification to commissioner of money required. Any municipality issuing
83.15and selling bonds pursuant to this section shall certify to the commissioner the amount of
83.16money required annually for the payment of principal and interest on the obligation. Upon
83.17receipt thereof, the commissioner shall certify to the commissioner of management and
83.18budget the sum of money needed annually by the municipality for the principal and interest,
83.19provided that the amount certified by the commissioner shall not exceed the limit heretofore
83.20specified. The commissioner of management and budget shall thereafter, until said bonds
83.21are retired, issue a warrant payment annually in the amount certified payable to the fiscal
83.22officer of the municipality, and the amount thereof shall be deposited by the fiscal officer
83.23in the sinking fund from which the obligations are payable.

83.24    Sec. 47. Minnesota Statutes 2016, section 162.181, subdivision 4, is amended to read:
83.25    Subd. 4. Certification to commissioner of money required. Any county issuing and
83.26selling bonds pursuant to this section shall certify to the commissioner the amount of money
83.27required annually for the payment of principal and interest on the obligation. Upon receipt
83.28thereof, the commissioner shall certify to the commissioner of management and budget the
83.29sum of money needed annually by the county for the principal and interest, provided that
83.30the amount certified by the commissioner shall not exceed the limit heretofore specified.
83.31The commissioner of management and budget shall thereafter, until said bonds are retired,
83.32issue a warrant payment annually in the amount certified payable to the county treasurer of
84.1the county, and the amount thereof shall be deposited by the county treasurer in the sinking
84.2fund from which the obligations are payable.

84.3    Sec. 48. Minnesota Statutes 2016, section 163.051, subdivision 3, is amended to read:
84.4    Subd. 3. Distribution to county; appropriation. On a monthly basis, the registrar of
84.5motor vehicles shall issue a warrant payment in favor of the treasurer of each county for
84.6which the registrar has collected a wheelage tax in the amount of such tax then on hand in
84.7the county wheelage tax account. There is hereby appropriated from the county wheelage
84.8tax account each year, to each county entitled to payments authorized by this section,
84.9sufficient moneys to make such payments.

84.10    Sec. 49. Minnesota Statutes 2016, section 176.181, subdivision 2, is amended to read:
84.11    Subd. 2. Compulsory insurance; self-insurers. (a) Every employer, except the state
84.12and its municipal subdivisions, liable under this chapter to pay compensation shall insure
84.13payment of compensation with some insurance carrier authorized to insure workers'
84.14compensation liability in this state, or obtain a written order from the commissioner of
84.15commerce exempting the employer from insuring liability for compensation and permitting
84.16self-insurance of the liability. The terms, conditions and requirements governing
84.17self-insurance shall be established by the commissioner pursuant to chapter 14. The
84.18commissioner of commerce shall also adopt, pursuant to paragraph (d), rules permitting
84.19two or more employers, whether or not they are in the same industry, to enter into agreements
84.20to pool their liabilities under this chapter for the purpose of qualifying as group self-insurers.
84.21With the approval of the commissioner of commerce, any employer may exclude medical,
84.22chiropractic and hospital benefits as required by this chapter. An employer conducting
84.23distinct operations at different locations may either insure or self-insure the other portion
84.24of operations as a distinct and separate risk. An employer desiring to be exempted from
84.25insuring liability for compensation shall make application to the commissioner of commerce,
84.26showing financial ability to pay the compensation, whereupon by written order the
84.27commissioner of commerce, on deeming it proper, may make an exemption. An employer
84.28may establish financial ability to pay compensation by providing financial statements of
84.29the employer to the commissioner of commerce. Upon ten days' written notice the
84.30commissioner of commerce may revoke the order granting an exemption, in which event
84.31the employer shall immediately insure the liability. As a condition for the granting of an
84.32exemption the commissioner of commerce may require the employer to furnish security the
84.33commissioner of commerce considers sufficient to insure payment of all claims under this
84.34chapter, consistent with subdivision 2b. If the required security is in the form of currency
85.1or negotiable bonds, the commissioner of commerce shall deposit it with the commissioner
85.2of management and budget. In the event of any default upon the part of a self-insurer to
85.3abide by any final order or decision of the commissioner of labor and industry directing and
85.4awarding payment of compensation and benefits to any employee or the dependents of any
85.5deceased employee, then upon at least ten days' notice to the self-insurer, the commissioner
85.6of commerce may by written order to the commissioner of management and budget require
85.7the commissioner of management and budget to sell the pledged and assigned securities or
85.8a part thereof necessary to pay the full amount of any such claim or award with interest
85.9thereon. This authority to sell may be exercised from time to time to satisfy any order or
85.10award of the commissioner of labor and industry or any judgment obtained thereon. When
85.11securities are sold the money obtained shall be deposited in the state treasury to the credit
85.12of the commissioner of commerce and awards made against any such self-insurer by the
85.13commissioner of commerce shall be paid to the persons entitled thereto by the commissioner
85.14of management and budget upon warrants prepared payments requested by the commissioner
85.15of commerce out of the proceeds of the sale of securities. Where the security is in the form
85.16of a surety bond or personal guaranty the commissioner of commerce, at any time, upon at
85.17least ten days' notice and opportunity to be heard, may require the surety to pay the amount
85.18of the award, the payments to be enforced in like manner as the award may be enforced.
85.19(b) No association, corporation, partnership, sole proprietorship, trust or other business
85.20entity shall provide services in the design, establishment or administration of a group
85.21self-insurance plan under rules adopted pursuant to this subdivision unless it is licensed, or
85.22exempt from licensure, pursuant to section 60A.23, subdivision 8, to do so by the
85.23commissioner of commerce. An applicant for a license shall state in writing the type of
85.24activities it seeks authorization to engage in and the type of services it seeks authorization
85.25to provide. The license shall be granted only when the commissioner of commerce is satisfied
85.26that the entity possesses the necessary organization, background, expertise, and financial
85.27integrity to supply the services sought to be offered. The commissioner of commerce may
85.28issue a license subject to restrictions or limitations, including restrictions or limitations on
85.29the type of services which may be supplied or the activities which may be engaged in. The
85.30license is for a two-year period.
85.31(c) To assure that group self-insurance plans are financially solvent, administered in a
85.32fair and capable fashion, and able to process claims and pay benefits in a prompt, fair and
85.33equitable manner, entities licensed to engage in such business are subject to supervision
85.34and examination by the commissioner of commerce.
86.1(d) To carry out the purposes of this subdivision, the commissioner of commerce may
86.2promulgate administrative rules pursuant to sections 14.001 to 14.69. These rules may:
86.3(1) establish reporting requirements for administrators of group self-insurance plans;
86.4(2) establish standards and guidelines consistent with subdivision 2b to assure the
86.5adequacy of the financing and administration of group self-insurance plans;
86.6(3) establish bonding requirements or other provisions assuring the financial integrity
86.7of entities administering group self-insurance plans;
86.8(4) establish standards, including but not limited to minimum terms of membership in
86.9self-insurance plans, as necessary to provide stability for those plans;
86.10(5) establish standards or guidelines governing the formation, operation, administration,
86.11and dissolution of self-insurance plans; and
86.12(6) establish other reasonable requirements to further the purposes of this subdivision.

86.13    Sec. 50. Minnesota Statutes 2016, section 176.581, is amended to read:
86.14176.581 PAYMENT TO STATE EMPLOYEES.
86.15Upon a warrant request prepared by the commissioner of administration, and in
86.16accordance with the terms of the order awarding compensation, the commissioner of
86.17management and budget shall pay compensation to the employee or the employee's
86.18dependent. These payments shall be made from money appropriated for this purpose.

86.19    Sec. 51. Minnesota Statutes 2016, section 176.591, subdivision 3, is amended to read:
86.20    Subd. 3. Compensation payments upon warrants request. The commissioner of
86.21management and budget shall make compensation payments from the fund only as authorized
86.22by this chapter upon warrants request of the commissioner of administration.

86.23    Sec. 52. Minnesota Statutes 2016, section 192.55, is amended to read:
86.24192.55 PAYMENTS TO BE MADE THROUGH ADJUTANT GENERAL.
86.25All pay and allowances and necessary expenses for any of the military forces shall, when
86.26approved by the adjutant general, be paid by the commissioner of management and budget's
86.27warrants issued budget to the several officers and enlisted members entitled thereto; provided,
86.28that upon the request of the adjutant general, approved by the governor, the sum required
86.29for any such pay or allowances and necessary expenses shall be paid by the commissioner
86.30of management and budget's warrant budget to the adjutant general, who shall immediately
87.1pay and distribute the same to the several officers or enlisted members entitled thereto or
87.2to their commanding officers or to a finance officer designated by the adjutant general. The
87.3receipt of any such commanding officer or finance officer for any such payment shall
87.4discharge the adjutant general from liability therefor. Every commanding officer or finance
87.5officer receiving any such payment shall, as soon as practicable, pay and distribute the same
87.6to the several officers or enlisted members entitled thereto. The officer making final payment
87.7shall, as evidence thereof, secure the signature of the person receiving the same upon a
87.8payroll or other proper voucher.

87.9    Sec. 53. Minnesota Statutes 2016, section 196.052, is amended to read:
87.10196.052 GIFT ACCEPTANCE AND INVESTMENT.
87.11On the behalf of the state, the commissioner may accept any gift, grant, bequest, or
87.12devise made for the purposes of this chapter and chapter 197. The commissioner must
87.13administer the funds as directed by the donor. All funds must be deposited in the state
87.14treasury and credited to the veterans affairs endowment, bequest, and devises fund. The
87.15balance of the fund is annually appropriated to the commissioner of veterans affairs to
87.16accomplish the purposes of this chapter and chapter 197. Funds received by the commissioner
87.17under this section in excess of current needs must be invested by the State Board of
87.18Investment in accordance with section 11A.24. Disbursements from this fund must be in
87.19the manner provided for the issuance of other state warrants payments. The commissioner
87.20may refuse to accept any gift, grant, bequest, or devise if acceptance would not be in the
87.21best interest of the state or Minnesota's veterans.

87.22    Sec. 54. Minnesota Statutes 2016, section 198.16, is amended to read:
87.23198.16 PLANNED GIVING.
87.24The commissioner is authorized to accept on behalf of the state any gift, grant, bequest,
87.25or devise made for the purposes of this chapter, and administer the same as directed by the
87.26donor. All proceeds therefrom including money derived from the sale of any real or personal
87.27property must be deposited in the state treasury, invested by the State Board of Investment
87.28in accordance with sections 11A.24 and 11A.25, and credited to the Minnesota veterans
87.29home endowment, bequest, and devises fund. That fund consists of separate accounts for
87.30investing general and restricted gifts, money, and donations received and for any currently
87.31expendable proceeds.
87.32The commissioner shall maintain records of all gifts received, clearly showing the identity
87.33of the donor, the purpose of the donation, and the ultimate disposition of the donation. Each
88.1donation must be duly receipted and must be expended or used by the commissioner as
88.2nearly in accordance with the condition of the gift or donation as is compatible with the
88.3best interests of the residents of the homes. Money in the fund is appropriated to the
88.4commissioner for the purposes for which it was received. Disbursements from this fund
88.5shall be made in the manner provided for the issuance of other state warrants payments.
88.6Whenever the commissioner shall deem it advisable, in accordance with law, to sell or
88.7otherwise dispose of any real or personal property thus acquired, the commissioner of
88.8administration upon the request of the commissioner shall sell or otherwise dispose of said
88.9property in the manner provided by law for the sale or disposition of other state property
88.10by the commissioner of administration.

88.11    Sec. 55. Minnesota Statutes 2016, section 237.30, is amended to read:
88.12237.30 TELEPHONE INVESTIGATION FUND; APPROPRIATION.
88.13A Minnesota Telephone Investigation Fund shall exist for the use of the Department of
88.14Commerce and of the attorney general in investigations, valuations, and revaluations under
88.15section 237.295. All sums paid by the telephone companies to reimburse the department
88.16for its expenses pursuant to section 237.295 shall be credited to the revolving fund and shall
88.17be deposited in a separate bank account and not commingled with any other state funds or
88.18moneys, but any balance in excess of $25,000 in the revolving fund at the end of each fiscal
88.19year shall be paid into the state treasury and credited to the general fund. All subsequent
88.20credits to said revolving fund shall be paid upon the warrant of by the commissioner of
88.21management and budget upon application of the department or of the attorney general to
88.22an aggregate amount of not more than one-half of such sums to each of them, which
88.23proportion shall be constantly maintained in all credits and withdrawals from the revolving
88.24fund.

88.25    Sec. 56. Minnesota Statutes 2016, section 241.13, subdivision 1, is amended to read:
88.26    Subdivision 1. Contingent account. The commissioner of corrections may permit a
88.27contingent account to remain in the hands of the accounting officer of any such institution
88.28from which expenditures may be made in case of actual emergency requiring immediate
88.29payment to prevent loss or danger to the institution or its inmates and for the purpose of
88.30paying freight, purchasing produce, livestock and other commodities requiring a cash
88.31settlement, and for the purpose of discounting bills incurred, but in all cases subject to
88.32revision by the commissioner of corrections. An itemized statement of every expenditure
88.33made during the month from such account shall be submitted to the commissioner under
89.1rules established by the commissioner. If necessary, the commissioner shall make proper
89.2requisition upon the commissioner of management and budget for a warrant payment to
89.3secure the contingent account for each institution.

89.4    Sec. 57. Minnesota Statutes 2016, section 244.19, subdivision 7, is amended to read:
89.5    Subd. 7. Certificate of counties entitled to state aid. On or before January 1 of each
89.6year, until 1970 and on or before April 1 thereafter, the commissioner of corrections shall
89.7deliver to the commissioner of management and budget a certificate in duplicate for each
89.8county of the state entitled to receive state aid under the provisions of this section. Upon
89.9the receipt of such certificate, the commissioner of management and budget shall draw a
89.10warrant in favor of issue a payment to the county treasurer for the amount shown by each
89.11certificate to be due to the county specified. The commissioner of management and budget
89.12shall transmit such warrant payment to the county treasurer together with a copy of the
89.13certificate prepared by the commissioner of corrections.

89.14    Sec. 58. Minnesota Statutes 2016, section 256B.20, is amended to read:
89.15256B.20 COUNTY APPROPRIATIONS.
89.16The providing of funds necessary to carry out the provisions hereof on the part of the
89.17counties and the manner of administering the funds of the counties and the state shall be as
89.18follows:
89.19(1) The board of county commissioners of each county shall annually set up in its budget
89.20an item designated as the county medical assistance fund and levy taxes and fix a rate
89.21therefor sufficient to produce the full amount of such item, in addition to all other tax levies
89.22and tax rate, however fixed or determined, sufficient to carry out the provisions hereof and
89.23sufficient to pay in full the county share of assistance and administrative expense for the
89.24ensuing year; and annually on or before October 10 shall certify the same to the county
89.25auditor to be entered by the auditor on the tax rolls. Such tax levy and tax rate shall make
89.26proper allowance and provision for shortage in tax collections.
89.27(2) Any county may transfer surplus funds from any county fund, except the sinking or
89.28ditch fund, to the general fund or to the county medical assistance fund in order to provide
89.29money necessary to pay medical assistance awarded hereunder. The money so transferred
89.30shall be used for no other purpose, but any portion thereof no longer needed for such purpose
89.31shall be transferred back to the fund from which taken.
90.1(3) Upon the order of the county agency the county auditor shall draw a warrant on the
90.2proper fund in accordance with the order, and the county treasurer shall pay out the amounts
90.3ordered to be paid out as medical assistance hereunder. When necessary by reason of failure
90.4to levy sufficient taxes for the payment of the medical assistance in the county, the county
90.5auditor shall carry any such payments as an overdraft on the medical assistance funds of
90.6the county until sufficient tax funds shall be provided for such assistance payments. The
90.7board of county commissioners shall include in the tax levy and tax rate in the year following
90.8the year in which such overdraft occurred, an amount sufficient to liquidate such overdraft
90.9in full.
90.10(4) Claims for reimbursement and reports shall be presented to the state agency by the
90.11respective counties as required under section 256.01, subdivision 2, paragraph (p). The state
90.12agency shall audit such claims and certify to the commissioner of management and budget
90.13the amounts due the respective counties without delay. The amounts so certified shall be
90.14paid within ten days after such certification, from the state treasury upon warrant payment
90.15of the commissioner of management and budget from any money available therefor. The
90.16money available to the state agency to carry out the provisions hereof, including all federal
90.17funds available to the state, shall be kept and deposited by the commissioner of management
90.18and budget in the revenue fund and disbursed upon warrants in the same manner as other
90.19state funds.

90.20    Sec. 59. Minnesota Statutes 2016, section 260B.331, subdivision 2, is amended to read:
90.21    Subd. 2. Cost of group foster care. Whenever a child is placed in a group foster care
90.22facility as provided in section 260B.198, subdivision 1, clause (2) or (3), item (v), the cost
90.23of providing the care shall, upon certification by the juvenile court, be paid from the welfare
90.24fund of the county in which the proceedings were held. To reimburse the counties for the
90.25costs of providing group foster care for delinquent children and to promote the establishment
90.26of suitable group foster homes, the state shall quarterly, from funds appropriated for that
90.27purpose, reimburse counties 50 percent of the costs not paid by federal and other available
90.28state aids and grants. Reimbursement shall be prorated if the appropriation is insufficient.
90.29The commissioner of corrections shall establish procedures for reimbursement and certify
90.30to the commissioner of management and budget each county entitled to receive state aid
90.31under the provisions of this subdivision. Upon receipt of a certificate the commissioner of
90.32management and budget shall issue a state warrant payment to the county treasurer for the
90.33amount due, together with a copy of the certificate prepared by the commissioner of
90.34corrections.

91.1    Sec. 60. Minnesota Statutes 2016, section 260C.331, subdivision 2, is amended to read:
91.2    Subd. 2. Cost of group foster care. Whenever a child is placed in a group foster care
91.3facility as provided in section 260C.201, subdivision 1, paragraph (b), clause (2) or (3), the
91.4cost of providing the care shall, upon certification by the juvenile court, be paid from the
91.5welfare fund of the county in which the proceedings were held. To reimburse the counties
91.6for the costs of promoting the establishment of suitable group foster homes, the state shall
91.7quarterly, from funds appropriated for that purpose, reimburse counties 50 percent of the
91.8costs not paid by federal and other available state aids and grants. Reimbursement shall be
91.9prorated if the appropriation is insufficient.
91.10The commissioner of corrections shall establish procedures for reimbursement and certify
91.11to the commissioner of management and budget each county entitled to receive state aid
91.12under the provisions of this subdivision. Upon receipt of a certificate the commissioner of
91.13management and budget shall issue a state warrant payment to the county treasurer for the
91.14amount due, together with a copy of the certificate prepared by the commissioner of
91.15corrections.

91.16    Sec. 61. Minnesota Statutes 2016, section 273.121, subdivision 1, is amended to read:
91.17    Subdivision 1. Notice. Any county assessor or city assessor having the powers of a
91.18county assessor, valuing or classifying taxable real property shall in each year notify those
91.19persons whose property is to be included on the assessment roll that year if the person's
91.20address is known to the assessor, otherwise the occupant of the property. The notice shall
91.21be in writing and shall be sent by ordinary mail at least ten days before the meeting of the
91.22local board of appeal and equalization under section 274.01 or the review process established
91.23under section 274.13, subdivision 1c. Upon written request by the owner of the property,
91.24the assessor may send the notice in electronic form or by electronic mail instead of on paper
91.25or by ordinary mail. It shall contain: (1) the market value for the current and prior assessment,
91.26(2) the qualifying amount of any improvements under section 273.11, subdivision 16, for
91.27the current assessment, (3) the market value subject to taxation after subtracting the amount
91.28of any qualifying improvements for the current assessment, (4) the classification of the
91.29property for the current and prior assessment, (5) the assessor's office address, and (6) the
91.30dates, places, and times set for the meetings of the local board of appeal and equalization,
91.31the review process established under section 274.13, subdivision 1c, and the county board
91.32of appeal and equalization. If the classification of the property has changed between the
91.33current and prior assessments, a specific note to that effect shall be prominently listed on
91.34the statement. The commissioner of revenue shall specify the form of the notice. The assessor
92.1shall attach to the assessment roll a statement that the notices required by this section have
92.2been mailed. Any assessor who is not provided sufficient funds from the assessor's governing
92.3body to provide such notices, may make application to the commissioner of revenue to
92.4finance such notices. The commissioner of revenue shall conduct an investigation and, if
92.5satisfied that the assessor does not have the necessary funds, issue a certification to the
92.6commissioner of management and budget of the amount necessary to provide such notices.
92.7The commissioner of management and budget shall issue a warrant payment for such amount
92.8and shall deduct such amount from any state payment to such county or municipality. The
92.9necessary funds to make such payments are hereby appropriated. Failure to receive the
92.10notice shall in no way affect the validity of the assessment, the resulting tax, the procedures
92.11of any board of review or equalization, or the enforcement of delinquent taxes by statutory
92.12means.

92.13    Sec. 62. Minnesota Statutes 2016, section 287.08, is amended to read:
92.14287.08 TAX, HOW PAYABLE; RECEIPTS.
92.15    (a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any
92.16county in this state in which the real property or some part is located at or before the time
92.17of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and
92.18the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes
92.19any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall
92.20be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from
92.21taxation the endorsement shall, in substance, be "exempt from registration tax." In either
92.22case the receipt must be signed by the treasurer. In case the treasurer is unable to determine
92.23whether a claim of exemption should be allowed, the tax must be paid as in the case of a
92.24taxable mortgage. For documents submitted electronically, the endorsements and tax amount
92.25shall be affixed electronically and no signature by the treasurer will be required. The actual
92.26payment method must be arranged in advance between the submitter and the receiving
92.27county.
92.28    (b) The county treasurer may refund in whole or in part any mortgage registry tax
92.29overpayment if a written application by the taxpayer is submitted to the county treasurer
92.30within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
92.31of the application, the taxpayer may bring an action in Tax Court in the county in which
92.32the tax was paid at any time after the expiration of six months from the time that the
92.33application was submitted. A denial of refund may be appealed within 60 days from the
92.34date of the denial by bringing an action in Tax Court in the county in which the tax was
93.1paid. The action is commenced by the serving of a petition for relief on the county treasurer,
93.2and by filing a copy with the court. The county attorney shall defend the action. The county
93.3treasurer shall notify the treasurer of each county that has or would receive a portion of the
93.4tax as paid.
93.5    (c) If the county treasurer determines a refund should be paid, or if a refund is ordered
93.6by the court, the county treasurer of each county that actually received a portion of the tax
93.7shall immediately pay a proportionate share of three percent of the refund using any available
93.8county funds. The county treasurer of each county that received, or would have received,
93.9a portion of the tax shall also pay their county's proportionate share of the remaining 97
93.10percent of the court-ordered refund on or before the 20th day of the following month using
93.11solely the mortgage registry tax funds that would be paid to the commissioner of revenue
93.12on that date under section 287.12. If the funds on hand under this procedure are insufficient
93.13to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in
93.14which the action was brought shall file a claim with the commissioner of revenue under
93.15section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the
93.16remaining portion upon receipt of a warrant payment from the state issued pursuant to the
93.17claim.
93.18    (d) When any mortgage covers real property located in more than one county in this
93.19state the total tax must be paid to the treasurer of the county where the mortgage is first
93.20presented for recording, and the payment must be receipted as provided in paragraph (a).
93.21If the principal debt or obligation secured by such a multiple county mortgage exceeds
93.22$10,000,000, the nonstate portion of the tax must be divided and paid over by the county
93.23treasurer receiving it, on or before the 20th day of each month after receipt, to the county
93.24or counties entitled in the ratio that the estimated market value of the real property covered
93.25by the mortgage in each county bears to the estimated market value of all the real property
93.26in this state described in the mortgage. In making the division and payment the county
93.27treasurer shall send a statement giving the description of the real property described in the
93.28mortgage and the estimated market value of the part located in each county. For this purpose,
93.29the treasurer of any county may require the treasurer of any other county to certify to the
93.30former the estimated market value of any tract of real property in any mortgage.
93.31    (e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee
93.32may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee
93.33collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee
93.34has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax
94.1collected for that purpose and the mortgagor is relieved of any further obligation to pay the
94.2tax as to the amount collected by the mortgagee for this purpose.

94.3    Sec. 63. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:
94.4    Subdivision 1. Cities of the first class. (a) The commissioner shall order and direct a
94.5surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross
94.6premiums, less return premiums, on all direct business received by any licensed foreign or
94.7domestic fire insurance company on property in a city of the first class, or by its agents for
94.8it, in cash or otherwise.
94.9(b) By July 31 and December 31 of each year, the commissioner of management and
94.10budget shall pay issue to each city of the first class a warrant payment for an amount equal
94.11to the total amount of the surcharge on the premiums collected within that city since the
94.12previous payment.
94.13(c) The treasurer of the city shall place the money received under this subdivision in a
94.14special account or fund to defray all or a portion of the employer contribution requirement
94.15of public employees police and fire plan coverage for city firefighters.

94.16    Sec. 64. Minnesota Statutes 2016, section 299C.21, is amended to read:
94.17299C.21 PENALTY ON LOCAL OFFICER REFUSING INFORMATION.
94.18If any public official charged with the duty of furnishing to the bureau fingerprint records,
94.19biological specimens, reports, or other information required by sections 299C.06, 299C.10,
94.20299C.105 , 299C.11, 299C.17, shall neglect or refuse to comply with such requirement, the
94.21bureau, in writing, shall notify the state, county, or city officer charged with the issuance
94.22of a warrant for the payment of the salary of such official. Upon the receipt of the notice
94.23the state, county, or city official shall withhold the issuance of a warrant for the payment
94.24of the salary or other compensation accruing to such officer for the period of 30 days
94.25thereafter until notified by the bureau that such suspension has been released by the
94.26performance of the required duty.

94.27    Sec. 65. Minnesota Statutes 2016, section 348.05, is amended to read:
94.28348.05 COMMISSIONER OF MANAGEMENT AND BUDGET TO ISSUE
94.29WARRANT PAYMENT.
94.30The commissioner of management and budget shall audit all such claims, and, on the
94.31first Monday of October, in each year, shall issue a warrant payment to the several claimants
95.1for the amount to which each is entitled; but, if the aggregate of compensation due to all
95.2such claimants shall exceed the appropriation therefor, the commissioner shall distribute
95.3the available amount amongst them pro rata, which distribution shall relieve the state from
95.4further obligation to such claimants for the year.

95.5    Sec. 66. Minnesota Statutes 2016, section 352.04, subdivision 9, is amended to read:
95.6    Subd. 9. Erroneous deductions, canceled warrants payments. (a) Deductions taken
95.7from the salary of an employee for the retirement fund in excess of required amounts must,
95.8upon discovery and verification by the department making the deduction, be refunded to
95.9the employee.
95.10(b) If a deduction for the retirement fund is taken from a salary warrant or check payment,
95.11and the check payment is canceled or the amount of the warrant or check payment returned
95.12to the funds of the department making the payment, the sum deducted, or the part of it
95.13required to adjust the deductions, must be refunded to the department or institution if the
95.14department applies for the refund on a form furnished by the director. The department's
95.15payments must likewise be refunded to the department.
95.16(c) If erroneous employee deductions and employer contributions are caused by an error
95.17in plan coverage involving the plan and any other plans specified in section 356.99, that
95.18section applies. If the employee should have been covered by the plan governed by chapter
95.19352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken
95.20in error must be directly transferred to the applicable employee's account in the correct
95.21retirement plan, with interest at the rate of 0.71 percent per month until June 30, 2015, and
95.220.667 percent per month thereafter, compounded annually, from the first day of the month
95.23following the month in which coverage should have commenced in the correct defined
95.24contribution plan until the end of the month in which the transfer occurs.

95.25    Sec. 67. Minnesota Statutes 2016, section 352.05, is amended to read:
95.26352.05 COMMISSIONER OF MANAGEMENT AND BUDGET TO BE
95.27TREASURER OF SYSTEM.
95.28The commissioner of management and budget is ex officio treasurer of the retirement
95.29funds of the system. The general bond to the state shall cover all liability for actions as
95.30treasurer of these funds. Funds of the system received by the commissioner of management
95.31and budget must be set aside in the state treasury to the credit of the proper fund. The
95.32commissioner of management and budget shall deliver to the director copies of all payroll
95.33abstracts of the state together with the commissioner of management and budget's warrants
96.1payments covering the deductions made on these payroll abstracts for the retirement fund.
96.2The director shall have a list made of the commissioner of management and budget's warrants
96.3payments. These warrants payments must then be credited to the retirement fund. The
96.4commissioner of management and budget shall pay out of this fund only upon abstracts
96.5signed by the director, or by the finance officer designated by the director during the disability
96.6or the absence of the director from the city of St. Paul, Minnesota. Abstracts for investments
96.7may be signed by the executive director of the State Board of Investment.

96.8    Sec. 68. Minnesota Statutes 2016, section 352.115, subdivision 12, is amended to read:
96.9    Subd. 12. Death, return of warrants payments. If at the time of death a retired
96.10employee, a disabled employee, or a survivor has in possession the commissioner of
96.11management and budget's warrants payments covering a retirement annuity, disability
96.12benefit, or survivor benefit from the retirement fund, in the absence of probate proceedings,
96.13and upon the return of the warrants payments for cancellation, payment of the accrued
96.14annuity or benefit, shall be made as provided in subdivision 11, or 352.12, subdivision 4.
96.15Payments made under this subdivision shall be a bar to recovery by any other person or
96.16persons.

96.17    Sec. 69. Minnesota Statutes 2016, section 352.12, subdivision 13, is amended to read:
96.18    Subd. 13. Refund, beneficiary. If upon death a former employee has in possession a
96.19commissioner of management and budget's warrant payment which does not exceed $1,000
96.20covering a refund of accumulated contributions in the retirement fund, in the absence of
96.21probate proceedings the commissioner of management and budget's warrant payment may
96.22be returned for cancellation, and then upon application made by the last designated
96.23beneficiary of the deceased former employee, refund of the accumulated contributions must
96.24be paid to the last designated beneficiary. Payments made under this subdivision are a bar
96.25to recovery by any other person or persons.

96.26    Sec. 70. Minnesota Statutes 2016, section 353.05, is amended to read:
96.27353.05 CUSTODIAN OF FUNDS.
96.28The commissioner of management and budget shall be ex officio treasurer of the
96.29retirement funds of the association and the general bond of the commissioner of management
96.30and budget to the state must be so conditioned as to cover all liability for acts as treasurer
96.31of these funds. All money of the association received by the commissioner of management
96.32and budget must be set aside in the state treasury to the credit of the proper fund or account.
97.1The commissioner of management and budget shall transmit monthly to the executive
97.2director a detailed statement of all amounts so received and credited to the funds. Payments
97.3out of the funds may only be made on warrants as payments issued by the commissioner of
97.4management and budget, upon abstracts signed by the executive director; provided that
97.5abstracts for investment may be signed by the executive director of the State Board of
97.6Investment.

97.7    Sec. 71. Minnesota Statutes 2016, section 353.27, subdivision 7, is amended to read:
97.8    Subd. 7. Adjustment for erroneous receipts or disbursements. (a) Except as provided
97.9in paragraph (b), erroneous employee deductions and erroneous employer contributions and
97.10additional employer contributions to the general employees retirement plan of the Public
97.11Employees Retirement Association or to the public employees police and fire retirement
97.12plan for a person who otherwise does not qualify for membership under this chapter, are
97.13considered:
97.14(1) valid if the initial erroneous deduction began before January 1, 1990. Upon
97.15determination of the error by the association, the person may continue membership in the
97.16association while employed in the same position for which erroneous deductions were taken,
97.17or file a written election to terminate membership and apply for a refund upon termination
97.18of public service or defer an annuity under section 353.34; or
97.19(2) invalid, if the initial erroneous employee deduction began on or after January 1,
97.201990. Upon determination of the error, the association shall refund all erroneous employee
97.21deductions and all erroneous employer contributions as specified in paragraph (e). No person
97.22may claim a right to continued or past membership in the association based on erroneous
97.23deductions which began on or after January 1, 1990.
97.24(b) Erroneous deductions taken from the salary of a person who did not qualify for
97.25membership in the general employees retirement plan of the Public Employees Retirement
97.26Association or in the public employees police and fire retirement plan by virtue of concurrent
97.27employment before July 1, 1978, which required contributions to another retirement fund
97.28or relief association established for the benefit of officers and employees of a governmental
97.29subdivision, are invalid. Upon discovery of the error, allowable service credit for all invalid
97.30service if forfeited and, upon termination of public service, the association shall refund all
97.31erroneous employee deductions to the person, with interest as determined under section
97.32353.34, subdivision 2 , and all erroneous employer contributions without interest to the
97.33employer. This paragraph has both retroactive and prospective application.
98.1(c) Adjustments to correct employer contributions and employee deductions taken in
98.2error from amounts which are not salary under section 353.01, subdivision 10, must be
98.3made as specified in paragraph (e). The period of adjustment must be limited to the fiscal
98.4year in which the error is discovered by the association and the immediate two preceding
98.5fiscal years.
98.6(d) If there is evidence of fraud or other misconduct on the part of the employee or the
98.7employer, the board of trustees may authorize adjustments to the account of a member or
98.8former member to correct erroneous employee deductions and employer contributions on
98.9invalid salary and the recovery of any overpayments for a period longer than provided for
98.10under paragraph (c).
98.11(e) Upon discovery of the receipt of erroneous employee deductions and employer
98.12contributions under paragraph (a), clause (2), or paragraph (c), the association must require
98.13the employer to discontinue the erroneous employee deductions and erroneous employer
98.14contributions reported on behalf of a member. Upon discontinuation, the association must:
98.15(1) for a member, provide a refund in the amount of the invalid employee deductions
98.16with interest on the invalid employee deductions at the rate specified under section 353.34,
98.17subdivision 2 , from the received date of each invalid salary transaction through the date the
98.18credit or refund is made;
98.19(2) for a former member who:
98.20(i) is not receiving a retirement annuity or benefit, return the erroneous employee
98.21deductions to the former member through a refund with interest at the rate specified under
98.22section 353.34, subdivision 2, from the received date of each invalid salary transaction
98.23through the date the credit or refund is made; or
98.24(ii) is receiving a retirement annuity or disability benefit, or a person who is receiving
98.25an optional annuity or survivor benefit, for whom it has been determined an overpayment
98.26must be recovered, adjust the payment amount and recover the overpayments as provided
98.27under this section; and
98.28(3) return the invalid employer contributions reported on behalf of a member or former
98.29member to the employer by providing a credit against future contributions payable by the
98.30employer.
98.31(f) In the event that a salary warrant or check payment from which a deduction for the
98.32retirement fund was taken has been canceled or the amount of the warrant or check payment
98.33returned to the funds of the department making the payment, a refund of the sum deducted,
99.1or any portion of it that is required to adjust the deductions, must be made to the department
99.2or institution.
99.3(g) If the association discovers that a retirement annuity, survivor benefit, or disability
99.4benefit has been incorrectly calculated by using invalid service or salary, or due to any
99.5erroneous calculation procedure, the association must recalculate the annuity or benefit
99.6payable and begin payment of the corrected annuity or benefit effective the first of the month
99.7following discovery of the error. Any overpayment resulting from the incorrect calculation
99.8must be recovered as provided under subdivision 7b, if the accrual date, or any adjustment
99.9in the amount of the annuity or benefit calculated after the accrual date, except adjustments
99.10required under section 353.656, subdivision 4, falls within the current fiscal year and the
99.11two immediate previous fiscal years.
99.12(h) Notwithstanding the provisions of this subdivision, the association may apply the
99.13Revenue Procedures defined in the federal Internal Revenue Service Employee Plans
99.14Compliance Resolution System and not issue a refund of erroneous employee deductions
99.15and employer contributions or not recover a small overpayment of benefits if the cost to
99.16correct the error would exceed the amount of the member refund or overpayment.
99.17(i) Any fees or penalties assessed by the federal Internal Revenue Service for any failure
99.18by an employer to follow the statutory requirements for reporting eligible members and
99.19salary must be paid by the employer.

99.20    Sec. 72. Minnesota Statutes 2016, section 354.42, subdivision 7, is amended to read:
99.21    Subd. 7. Erroneous salary deductions or direct payments. (a) Any deductions taken
99.22from the salary of an employee for the retirement fund in excess of amounts required must
99.23be refunded to the employee upon the discovery of the error and after the verification of
99.24the error by the employing unit making the deduction. The corresponding excess employer
99.25contribution and excess additional employer contribution amounts attributable to the
99.26erroneous salary deduction must be refunded to the employing unit.
99.27(b) If salary deductions and employer contributions were erroneously transmitted to the
99.28retirement fund and should have been transmitted to the plan covered by chapter 352D,
99.29353D, 354B, or 354D, the executive director must transfer these salary deductions and
99.30employer contributions to the account of the appropriate person under the applicable plan.
99.31The transfer to the applicable defined contribution plan account must include interest at the
99.32rate of 0.71 percent per month, compounded annually, from the first day of the month
99.33following the month in which coverage should have commenced in the defined contribution
99.34plan until the end of the month in which the transfer occurs.
100.1(c) A potential transfer under paragraph (b) that would cause the plan to fail to be a
100.2qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be
100.3made by the executive director. Within 30 days after being notified by the Teachers
100.4Retirement Association of an unmade potential transfer under this paragraph, the employer
100.5of the affected person must transmit an amount representing the applicable salary deductions
100.6and employer contributions, without interest, to the account of the applicable person under
100.7the appropriate plan. The retirement association must provide a credit for the amount of the
100.8erroneous salary deductions and employer contributions against future contributions from
100.9the employer.
100.10(d) If a salary warrant or check payment from which a deduction for the retirement fund
100.11was taken has been canceled or the amount of the warrant or if a check payment has been
100.12returned to the funds of the employing unit making the payment, a refund of the amount
100.13deducted, or any portion of it that is required to adjust the salary deductions, must be made
100.14to the employing unit.
100.15(e) Erroneous direct payments of member-paid contributions or erroneous salary
100.16deductions that were not refunded during the regular payroll cycle processing must be
100.17refunded to the member, plus interest computed using the rate and method specified in
100.18section 354.49, subdivision 2.
100.19(f) Any refund under this subdivision that would cause the plan to fail to be a qualified
100.20plan under section 401(a) of the Internal Revenue Code, as amended, may not be refunded
100.21and instead must be credited against future contributions payable by the employer. The
100.22employer is responsible for refunding to the applicable employee any amount that was
100.23erroneously deducted from the salary of the employee, with interest as specified in paragraph
100.24(e).
100.25(g) If erroneous employee deductions and employer contributions are caused by an error
100.26in plan coverage involving the plan and any other plan specified in section 356.99, that
100.27section applies.

100.28    Sec. 73. Minnesota Statutes 2016, section 354.52, subdivision 4, is amended to read:
100.29    Subd. 4. Reporting and remittance requirements. An employer shall remit all amounts
100.30due to the association and furnish a statement indicating the amount due and transmitted
100.31with any other information required by the executive director. If an amount due is not
100.32received by the association within 14 calendar days of the payroll warrant payment, the
100.33amount accrues interest at an annual rate of 8.5 percent compounded annually from the due
100.34date until the amount is received by the association. All amounts due and other employer
101.1obligations not remitted within 60 days of notification by the association must be certified
101.2to the commissioner of management and budget who shall deduct the amount from any state
101.3aid or appropriation amount applicable to the employing unit.

101.4    Sec. 74. Minnesota Statutes 2016, section 354.52, subdivision 4b, is amended to read:
101.5    Subd. 4b. Payroll cycle reporting requirements. An employing unit shall provide the
101.6following data to the association for payroll warrants payments on an ongoing basis within
101.714 calendar days after the date of the payroll warrant payments in a format prescribed by
101.8the executive director:
101.9(1) association member number;
101.10(2) employer-assigned employee number;
101.11(3) Social Security number;
101.12(4) amount of each salary deduction;
101.13(5) amount of salary as defined in section 354.05, subdivision 35, from which each
101.14deduction was made;
101.15(6) reason for payment;
101.16(7) the beginning and ending dates of the payroll period covered and the date of actual
101.17payment;
101.18(8) fiscal year of salary earnings;
101.19(9) total remittance amount including employee, employer, and additional employer
101.20contributions;
101.21(10) reemployed annuitant salary under section 354.44, subdivision 5; and
101.22(11) other information as may be required by the executive director.

101.23    Sec. 75. Minnesota Statutes 2016, section 401.15, subdivision 1, is amended to read:
101.24    Subdivision 1. Certified statements; determinations; adjustments. Within 60 days
101.25of the end of each calendar quarter, participating counties which have received the payments
101.26authorized by section 401.14 shall submit to the commissioner certified statements detailing
101.27the amounts expended and costs incurred in furnishing the correctional services provided
101.28in sections 401.01 to 401.16. Upon receipt of certified statements, the commissioner shall,
101.29in the manner provided in sections 401.10 and 401.12, determine the amount each
101.30participating county is entitled to receive, making any adjustments necessary to rectify any
102.1disparity between the amounts received pursuant to the estimate provided in section 401.14
102.2and the amounts actually expended. If the amount received pursuant to the estimate is greater
102.3than the amount actually expended during the quarter, the commissioner may withhold the
102.4difference from any subsequent monthly payments made pursuant to section 401.14. Upon
102.5certification by the commissioner of the amount a participating county is entitled to receive
102.6under the provisions of section 401.14 or of this subdivision the commissioner of
102.7management and budget shall thereupon issue a state warrant payment to the chief fiscal
102.8officer of each participating county for the amount due together with a copy of the certificate
102.9prepared by the commissioner.

102.10    Sec. 76. Minnesota Statutes 2016, section 446A.086, subdivision 4, is amended to read:
102.11    Subd. 4. Notifications; payment; appropriation. (a) After receipt of a notice of a
102.12default or potential default in payment of principal or interest in debt obligations covered
102.13by this section or an agreement under this section, and after consultation with the
102.14governmental unit and the paying agent, and after verification of the accuracy of the
102.15information provided, the authority shall notify the commissioner of the potential default.
102.16The notice must include a final figure as to the amount due that the governmental unit will
102.17be unable to repay on the date due.
102.18    (b) Upon receipt of this notice from the authority, the commissioner shall issue a warrant
102.19payment and authorize the authority to pay to the bond holders or paying agent for the debt
102.20obligation the specified amount on or before the date due. The amounts needed for the
102.21purposes of this subdivision are annually appropriated to the authority from the general
102.22fund.

102.23    Sec. 77. Minnesota Statutes 2016, section 446A.16, subdivision 1, is amended to read:
102.24    Subdivision 1. Functions of commissioner of management and budget. Except as
102.25otherwise provided in this section, money of the authority must be paid to the commissioner
102.26of management and budget as agent of the authority and the commissioner shall not
102.27commingle the money with other money. The money in the accounts of the authority must
102.28be paid out only on warrants drawn by the commissioner of management and budget on
102.29requisition of the chair of the authority or of another officer or employee as the authority
102.30authorizes. Deposits of the authority's money must, if required by the commissioner or the
102.31authority, be secured by obligations of the United States or of the state of a market value
102.32equal at all times to the amount of the deposit and all banks and trust companies are
102.33authorized to give security for the deposits.

103.1    Sec. 78. Minnesota Statutes 2016, section 462A.18, subdivision 1, is amended to read:
103.2    Subdivision 1. Functions of commissioner of management and budget. All moneys
103.3of the agency, except as otherwise authorized or provided in this section, shall be paid to
103.4the commissioner of management and budget as agent of the agency, who shall not
103.5commingle such moneys with any other moneys. The moneys in such accounts shall be
103.6paid out on warrants drawn by the commissioner on requisition of the chair of the agency
103.7or of such other officer or employee as the agency shall authorize to make such requisition.
103.8All deposits of such moneys shall, if required by the commissioner or the agency, be secured
103.9by obligations of the United States or of the state of a market value equal at all times to the
103.10amount of the deposit and all banks and trust companies are authorized to give such security
103.11for such deposits.

103.12    Sec. 79. Minnesota Statutes 2016, section 475A.04, subdivision 1, is amended to read:
103.13    Subdivision 1. Procedure. In the event that funds sufficient to pay all of the principal
103.14and interest due on any guaranteed bond are not in the hands of the municipal treasurer or
103.15the paying agent at least 15 days before the due date, the treasurer or agent shall report the
103.16amount of the deficiency to the paying agent and the auditor who shall grant a loan to the
103.17issuer in this amount and shall certify to the issuer, the paying agent, and the auditor and
103.18treasurer of each county in which property subject to taxation by the issuer is situated, the
103.19amount of the loan and interest to accrue thereon to the due date of the loan, and the
103.20commissioner of management and budget shall issue a warrant payment for the principal
103.21amount and shall remit it to the paying agent on or before the due date. If the municipal
103.22treasurer fails to deposit funds with the paying agent sufficient to pay all principal and
103.23interest due on any guaranteed bond on any date, without having previously given the notice
103.24herein required, the paying agent may report the amount of the deficiency to the
103.25commissioner of management and budget, who shall forthwith grant a loan to the issuer for
103.26this amount plus interest to accrue thereon for one month at the rate represented by the
103.27coupons then due, and the loan shall be certified and remitted as provided above. The paying
103.28agent may advance its own funds for the payment of any guaranteed bonds and interest due
103.29for which it has not received sufficient funds from the municipality, and may contract with
103.30the municipality to make such advances, and shall be entitled to reimbursement therefor
103.31from the proceeds of the loan, with interest at the rate represented by the coupons due. The
103.32issuing municipality shall give a receipt to the commissioner of management and budget
103.33for the amount of the loan and interest.

104.1    Sec. 80. Minnesota Statutes 2016, section 525.841, is amended to read:
104.2525.841 ESCHEAT RETURNED.
104.3In all such cases the commissioner of management and budget shall be furnished with
104.4a certified copy of the court's order assigning the escheated property to the persons entitled
104.5thereto, and upon notification of payment of the estate tax, the commissioner of management
104.6and budget shall draw a warrant issue a payment or execute a proper conveyance to the
104.7persons designated in such order. In the event any escheated property has been sold pursuant
104.8to sections 11A.04, clause (9), and 11A.10, subdivision 2, or 16B.281 to 16B.287, then the
104.9warrant payment shall be for the appraised value as established during the administration
104.10of the decedent's estate. There is hereby annually appropriated from any moneys in the state
104.11treasury not otherwise appropriated an amount sufficient to make payment to all such
104.12designated persons. No interest shall be allowed on any amount paid to such persons.

104.13ARTICLE 4
104.14ADMINISTRATIVE RULEMAKING

104.15    Section 1. Minnesota Statutes 2016, section 3.842, subdivision 4a, is amended to read:
104.16    Subd. 4a. Objections to rules or proposed rules. (a) For purposes of this subdivision,
104.17"committee" means the house of representatives policy committee or senate policy committee
104.18with primary jurisdiction over state governmental operations. The commission or a committee
104.19may object to a rule or proposed rule as provided in this subdivision. If the commission or
104.20a committee objects to all or some portion of a rule because the commission or committee
104.21considers it to be on the grounds that the rule or proposed rule:
104.22(1) is beyond the procedural or substantive authority delegated to the agency, including
104.23a proposed rule submitted under section 14.15, subdivision 4, or 14.26, subdivision 3,
104.24paragraph (c);
104.25(2) is inconsistent with the enabling statute;
104.26(3) is unnecessary or redundant;
104.27(4) has a substantial economic impact as defined in section 14.02, subdivision 5;
104.28(5) is not based on sound, reasonably available scientific, technical, economic, or other
104.29information;
104.30(6) is not cost-effective;
104.31(7) is unduly burdensome; or
105.1(8) is more restrictive than the standard, limitation, or requirement imposed by federal
105.2law or rule pertaining to the same subject matter.
105.3If the commission or committee objects to all or some portion of a rule or proposed rule,
105.4the commission or committee may shall file that objection in the Office of the Secretary of
105.5State. The filed objection must contain a concise statement of the commission's or
105.6committee's reasons for its action. An objection to a proposed rule submitted by the
105.7commission or a committee under section 14.15, subdivision 4, or 14.26, subdivision 3,
105.8paragraph (c), may not be filed before the rule is adopted For a proposed rule, the objection
105.9must be filed within 30 days of receipt of the notice under section 14.14, 14.22, 14.386,
105.1014.388, 14.389, or 14.3895.
105.11(b) The secretary of state shall affix to each objection a certification of the date and time
105.12of its filing and as soon after the objection is filed as practicable shall electronically transmit
105.13a certified copy of it to the agency issuing the rule in question and to the revisor of statutes.
105.14The secretary of state shall also maintain a permanent register open to public inspection of
105.15all objections by the commission or committee.
105.16(c) The commission or committee shall publish and index an objection filed under this
105.17section in the next issue of the State Register. The revisor of statutes shall indicate the
105.18existence of the objection adjacent to the rule in question when that rule is published in
105.19Minnesota Rules.
105.20(d) Within 14 days after the filing of an objection by the commission or committee to a
105.21rule or proposed rule, the issuing agency shall respond in writing to the objecting entity.
105.22After receipt of the response, the commission or committee may withdraw or modify its
105.23objection. After the filing of an objection that is not subsequently withdrawn, the agency
105.24may not adopt the rule until the legislature adjourns the annual legislative session that began
105.25after the objection was filed. If the commission files an objection that is not subsequently
105.26withdrawn, the commission may, as soon as practical, make a recommendation on a bill
105.27that approves the proposed rule, prohibits adoption of the proposed rule, or amends or repeals
105.28the law governing a previously adopted rule for which an objection was filed.
105.29(e) After the filing of an objection by the commission or committee that is not
105.30subsequently withdrawn, the burden is upon the agency in any proceeding for judicial review
105.31or for enforcement of the rule to establish that the whole or portion of the rule objected to
105.32is valid and demonstrates that the objection raised under paragraph (a) is not justified, based
105.33on the criteria for objecting to a rule under paragraph (a).
106.1(f) The failure of the commission or a committee to object to a rule is not an implied
106.2legislative authorization of its validity.
106.3(g) In accordance with sections 14.44 and 14.45, the commission or a committee may
106.4petition for a declaratory judgment to determine the validity of a rule objected to by the
106.5commission or committee. The action must be started within two years after an objection
106.6is filed in the Office of the Secretary of State.
106.7(h) The commission or a committee may intervene in litigation arising from agency
106.8action. For purposes of this paragraph, agency action means the whole or part of a rule, or
106.9the failure to issue a rule.

106.10    Sec. 2. Minnesota Statutes 2016, section 14.002, is amended to read:
106.1114.002 STATE REGULATORY POLICY.
106.12The legislature recognizes the important and sensitive role for administrative rules in
106.13implementing policies and programs created by the legislature. However, the legislature
106.14finds that some regulatory rules and programs have become overly prescriptive and inflexible,
106.15thereby increasing costs to the state, local governments, and the regulated community and
106.16decreasing the effectiveness of the regulatory program. Therefore, whenever feasible, state
106.17agencies must develop rules and regulatory programs that emphasize superior achievement
106.18in meeting the agency's regulatory objectives and maximum flexibility for the regulated
106.19party and the agency in meeting those goals.

106.20    Sec. 3. Minnesota Statutes 2016, section 14.02, is amended by adding a subdivision to
106.21read:
106.22    Subd. 5. Substantial economic impact. A rule has a "substantial economic impact" if
106.23the rule would result in, or likely result in:
106.24(1) an adverse effect or impact on the private-sector economy of the state of Minnesota
106.25of $5,000,000 or more in a single year;
106.26(2) a significant increase in costs or prices for consumers, individual private-sector
106.27industries, state agencies, local governments, individuals, or private-sector enterprises within
106.28certain geographic regions inside the state of Minnesota;
106.29(3) significant adverse impacts on the competitiveness of private-sector Minnesota-based
106.30enterprises, or on private-sector employment, investment, productivity, or innovation within
106.31the state of Minnesota; or
107.1(4) compliance costs, in the first year after the rule takes effect, of more than $25,000
107.2for any one business that has fewer than 50 full-time employees, or for any one statutory
107.3or home rule charter city that has fewer than ten full-time employees.

107.4    Sec. 4. Minnesota Statutes 2016, section 14.05, subdivision 1, is amended to read:
107.5    Subdivision 1. Authority to adopt original rules restricted. (a) Each agency shall
107.6adopt, amend, suspend, or repeal its rules:
107.7(1) in accordance with the procedures specified in sections 14.001 to 14.69, and;
107.8(2) only pursuant to authority delegated by law; and
107.9(3) in full compliance with its duties and obligations.
107.10(b) If a law authorizing rules is repealed, the rules adopted pursuant to that law are
107.11automatically repealed on the effective date of the law's repeal unless there is another law
107.12authorizing the rules.
107.13(c) Except as provided in section sections 14.055, 14.06, 14.388, 14.389, and 14.3895,
107.14sections 14.001 to 14.69 shall not be authority for an agency to adopt, amend, suspend, or
107.15repeal rules.

107.16    Sec. 5. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to
107.17read:
107.18    Subd. 1a. Limitation regarding certain policies, guidelines, and other interpretive
107.19statements. An agency shall not seek to implement or enforce against any person a policy,
107.20guideline, or other interpretive statement that meets the definition of a rule under this chapter
107.21if the policy, guideline, or other interpretive statement has not been adopted as a rule in
107.22accordance with this chapter including but not limited to solid waste policy plan revisions
107.23authorized by other law. In any proceeding under chapter 14 challenging an agency action
107.24prohibited by this subdivision, the reviewing authority must independently and without
107.25deference to the agency determine if the agency has violated this subdivision. The agency
107.26must overcome the presumption that its action may not be enforced as a rule.

107.27    Sec. 6. Minnesota Statutes 2016, section 14.05, subdivision 2, is amended to read:
107.28    Subd. 2. Authority to modify proposed rule. (a) An agency may modify a proposed
107.29rule in accordance with the procedures of the Administrative Procedure Act. However, an
107.30agency may not modify a proposed rule so that it is substantially different from the proposed
107.31rule in the notice of intent to adopt rules or notice of hearing.
108.1(b) A modification does not make a proposed rule substantially different if:
108.2(1) the differences are within the scope of the matter announced in the notice of intent
108.3to adopt or notice of hearing and are in character with the issues raised in that notice;
108.4(2) the differences are a logical outgrowth of the contents of the notice of intent to adopt
108.5or notice of hearing and the comments submitted in response to the notice; and
108.6(3) the notice of intent to adopt or notice of hearing provided fair warning that the
108.7outcome of that rulemaking proceeding could be the rule in question.
108.8(c) In determining whether the notice of intent to adopt or notice of hearing provided
108.9fair warning that the outcome of that rulemaking proceeding could be the rule in question
108.10the following factors must be considered:
108.11(1) the extent to which persons who will be affected by the rule should have understood
108.12that the rulemaking proceeding on which it is based could affect their interests;
108.13(2) the extent to which the subject matter of the rule or issues determined by the rule are
108.14different from the subject matter or issues contained in the notice of intent to adopt or notice
108.15of hearing; and
108.16(3) the extent to which the effects of the rule differ from the effects of the proposed rule
108.17contained in the notice of intent to adopt or notice of hearing.
108.18(d) A modification makes a proposed rule substantially different if the modification
108.19causes a rule that did not previously have a substantial economic impact to have a substantial
108.20economic impact.

108.21    Sec. 7. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to
108.22read:
108.23    Subd. 5a. Review and repeal of rules. By December 1 of each odd-numbered year,
108.24beginning December 1, 2017, an agency must submit to the governor, the Legislative
108.25Coordinating Commission, the policy and funding committees and divisions with jurisdiction
108.26over the agency, and the revisor of statutes, a list of any rules or portions of rules that are
108.27obsolete, unnecessary, or duplicative of other state or federal statutes or rules. The list must
108.28also include an explanation of why the rule or portion of the rule is obsolete, unnecessary,
108.29or duplicative of other state or federal statutes or rules. The agency must either report a
108.30timetable for repeal of the rule or portion of the rule, or must develop a bill for submission
108.31to the appropriate policy committee to repeal the obsolete, unnecessary, or duplicative rule.
108.32A report submitted under this subdivision must be signed by the person in the agency who
109.1is responsible for identifying and initiating repeal of obsolete rules. The report also must
109.2identify the status of any rules identified in the prior report as obsolete, unnecessary, or
109.3duplicative. If none of an agency's rules are obsolete, unnecessary, or duplicative, an agency's
109.4report must state that conclusion.

109.5    Sec. 8. Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to
109.6read:
109.7    Subd. 5b. Review and repeal of environmental assessment worksheets and impact
109.8statements. By December 1, 2017, and each odd-numbered year thereafter, the
109.9Environmental Quality Board, Pollution Control Agency, Department of Natural Resources,
109.10and Department of Transportation, after consultation with political subdivisions, shall submit
109.11to the governor, the Legislative Coordinating Commission, the chairs and ranking minority
109.12members of the house of representatives and senate committees having jurisdiction over
109.13environment and natural resources, and the revisor of statutes a list of mandatory
109.14environmental assessment worksheets or mandatory environmental impact statements for
109.15which the agency or a political subdivision is designated as the responsible government
109.16unit, and for each worksheet or statement, a document including:
109.17(1) intended outcomes of the specific worksheet or statement;
109.18(2) the cost to state and local government and the private sector;
109.19(3) the relationship of the worksheet or statement to other local, state, and federal permits;
109.20and
109.21(4) a justification for why the mandatory worksheet or statement should not be eliminated
109.22and its intended outcomes achieved through an existing permit or other federal, state, or
109.23local law.

109.24    Sec. 9. Minnesota Statutes 2016, section 14.05, subdivision 6, is amended to read:
109.25    Subd. 6. Veto of adopted rules. The governor may veto all or a severable portion of a
109.26rule of an agency as defined in section 14.02, subdivisions 2 and 4, by submitting notice of
109.27the veto to the State Register within 14 days of receiving a copy of the rule from the secretary
109.28of state under section 14.16, subdivision 3, 14.26, subdivision 3 5, or 14.386, or the agency
109.29under section 14.389, subdivision 3, or section 14.3895. The veto is effective when the veto
109.30notice is submitted to the State Register. This authority applies only to the extent that the
109.31agency itself would have authority, through rulemaking, to take such action. If the governor
110.1vetoes a rule or portion of a rule under this section, the governor shall notify the chairs of
110.2the legislative committees having jurisdiction over the agency whose rule was vetoed.

110.3    Sec. 10. Minnesota Statutes 2016, section 14.05, subdivision 7, is amended to read:
110.4    Subd. 7. Electronic documents permitted. (a) If sections 14.05 to 14.3895 require an
110.5agency to provide notice or documents to the public, the legislature, or other state agency,
110.6the agency may send the notice or document, or a link to the notice or document, using any
110.7reliable method of electronic transmission.
110.8(b) The agency must also send a paper copy of the notice or document if requested to
110.9do so by a member of the public, legislature, or other state agency.
110.10(c) An agency may file rule-related documents with the Office of Administrative Hearings
110.11by electronic transmission in the manner approved by that office and the Office of the
110.12Revisor of Statutes by electronic transmission in the manner approved by that office.

110.13    Sec. 11. Minnesota Statutes 2016, section 14.101, subdivision 1, is amended to read:
110.14    Subdivision 1. Required notice. In addition to seeking information by other methods
110.15designed to reach persons or classes categories of persons who might be affected by the
110.16proposal, an agency, at least 60 days before publication of a notice of intent to adopt or a
110.17notice of hearing, shall solicit comments from the public on the subject matter of a possible
110.18rulemaking proposal under active consideration within the agency by causing notice to be
110.19published in the State Register. The notice must include a description of the subject matter
110.20of the proposal and the types of groups and individuals likely to be affected, and must
110.21indicate where, when, and how persons may comment on the proposal and whether and
110.22how drafts of any proposal may be obtained from the agency.
110.23This notice must be published within 60 days of the effective date of any new or
110.24amendatory law requiring rules to be adopted, amended, or repealed.
110.25An agency intending to adopt an expedited rule under section 14.389 is exempt from
110.26the requirements of this section.

110.27    Sec. 12. [14.105] RULE NOTIFICATION.
110.28    Subdivision 1. Rule notification list. (a) Each agency shall maintain a list of all persons
110.29who have registered with the agency for the purpose of receiving notice of rule proceedings.
110.30A person may register to receive notice of rule proceedings by submitting to the agency:
110.31(1) the person's electronic mail address; or
111.1(2) the person's name and United States mail address, along with a request to receive
111.2copies of the notices by mail.
111.3(b) The agency shall post information on its Web site describing the registration process.
111.4    (c) The agency may inquire as to whether those persons on the list in paragraph (a) wish
111.5to remain on it and may remove persons for whom there is a negative reply or no reply
111.6within 60 days.
111.7    Subd. 2. Additional notice. (a) Each agency shall make reasonable efforts to notify
111.8persons or categories of persons who may be significantly affected by the rule being proposed
111.9by giving notice of its rule proceedings in newsletters, newspapers, or other publications,
111.10or through other means of communication.
111.11(b) For each rulemaking, the agency shall develop an additional notice plan describing
111.12its efforts to provide additional notification to persons or categories of persons who may be
111.13affected by the proposed rule or must explain why these efforts were not made. The additional
111.14notice plan must be submitted to the administrative law judge with the other submissions
111.15required by section 14.14, subdivision 2a, or 14.26. The agency also may seek prior approval
111.16of the additional notice plan under the rules of the Office of Administrative Hearings.

111.17    Sec. 13. Minnesota Statutes 2016, section 14.116, is amended to read:
111.1814.116 NOTICE TO LEGISLATURE.
111.19(a) By January 15 each year, each agency must submit its current rulemaking docket
111.20maintained under section 14.366, and the official rulemaking record required under section
111.2114.365 for any rule adopted during the preceding calendar year, to the chairs and ranking
111.22minority members of the legislative policy and budget committees with jurisdiction over
111.23the subject matter of the proposed rule and to the Legislative Coordinating Commission.
111.24Each agency must post a link to its rulemaking docket on the agency Web site home page.
111.25(b) When an agency mails sends a notice of intent to adopt rules hearing under section
111.2614.14 or a notice of intent to adopt rules or dual notice under section 14.22, the agency must
111.27send a copy of the same notice and a copy of the statement of need and reasonableness to
111.28the chairs and ranking minority party members of the legislative policy and budget
111.29committees with jurisdiction over the subject matter of the proposed rules and to the
111.30Legislative Coordinating Commission.
111.31(c) In addition, if the mailing of the notice is within two years of the effective date of
111.32the law granting the agency authority to adopt the proposed rules, the agency shall make
111.33reasonable efforts to send a copy of the notice and the statement to all sitting legislators
112.1who were chief house of representatives and senate authors of the bill granting the rulemaking
112.2authority. If the bill was amended to include this rulemaking authority, the agency shall
112.3make reasonable efforts to send the notice and the statement to the chief house of
112.4representatives and senate authors of the amendment granting rulemaking authority, rather
112.5than to the chief authors of the bill.

112.6    Sec. 14. Minnesota Statutes 2016, section 14.125, is amended to read:
112.714.125 TIME LIMIT ON AUTHORITY TO ADOPT, AMEND, OR REPEAL
112.8RULES.
112.9An agency shall publish a notice of intent to adopt rules or a notice of hearing under
112.10section 14.14, or a notice of intent to adopt rules or dual notice under section 14.22, within
112.1118 months of the effective date of the law authorizing or requiring rules to be adopted,
112.12amended, or repealed. If the notice is not published within the time limit imposed by this
112.13section, the authority for the rules expires. The agency shall not use other law in existence
112.14at the time of the expiration of rulemaking authority under this section as authority to adopt,
112.15amend, or repeal these rules agency shall report to the Legislative Coordinating Commission,
112.16other appropriate committees of the legislature, and the governor its failure to publish a
112.17notice and the reasons for that failure.
112.18An agency that publishes a notice of intent to adopt rules or a notice of hearing within
112.19the time limit specified in this section may subsequently amend or repeal the rules without
112.20additional legislative authorization.

112.21    Sec. 15. Minnesota Statutes 2016, section 14.127, is amended to read:
112.2214.127 LEGISLATIVE APPROVAL REQUIRED.
112.23    Subdivision 1. Cost thresholds Substantial economic impact. An agency must
112.24determine if the cost of complying with a proposed rule in the first year after the rule takes
112.25effect will exceed $25,000 for: (1) any one business that has less than 50 full-time employees;
112.26or (2) any one statutory or home rule charter city that has less than ten full-time employees.
112.27For purposes of this section, "business" means a business entity organized for profit or as
112.28a nonprofit, and includes an individual, partnership, corporation, joint venture, association,
112.29or cooperative has a substantial economic impact, as defined in section 14.02, subdivision
112.305.
112.31    Subd. 2. Agency determination. An agency must make the determination required by
112.32subdivision 1 before the close of the hearing record, or before the agency submits the record
113.1to the administrative law judge if there is no hearing. The administrative law judge must
113.2review and approve or disapprove the agency determination under this section agency gives
113.3notice under section 14.14, 14.22, 14.225, or 14.389.
113.4    Subd. 3. Legislative approval required. (a) If the agency determines that a proposed
113.5rule has a substantial economic impact, the agency must request the legislative auditor to
113.6convene a five-person peer review advisory panel to conduct an impact analysis of the
113.7proposed rule. Within 30 days of receipt of the agency's request, the legislative auditor shall
113.8convene a peer review advisory panel. The advisory panel must be made up of individuals
113.9who have not directly or indirectly been involved in the work conducted or contracted by
113.10the agency and who are not employed by the agency. The agency must pay each panel
113.11member for the costs of the person's service on the panel, as determined by the legislative
113.12auditor. The agency shall transfer an amount from the agency's operating budget to the
113.13legislative auditor to pay for costs for convening the peer review advisory panel process.
113.14The panel may receive written and oral comments from the public during its review. The
113.15panel must submit its report within 60 days of being convened. The agency must receive a
113.16final report from the panel before the agency conducts a public hearing on a proposed rule
113.17or, if no hearing is held, before the rule is submitted to the administrative law judge. The
113.18panel's report must include its conclusions on the extent to which the proposed rule:
113.19(1) is based on sound, reasonably available scientific, technical, economic, or other
113.20information or rationale; and
113.21(2) is more restrictive than a standard, limitation, or requirement imposed by federal law
113.22or rule pertaining to the same subject matter, and a justification based on sound, reasonably
113.23available scientific, technical, economic, or other information and rationale that the more
113.24stringent standard is necessary to protect the public's health, safety, or welfare.
113.25(b) If the agency determines that a rule does not have a substantial economic impact,
113.26the administrative law judge must review this determination. If the administrative law judge
113.27determines that a rule may have a substantial economic impact, the agency must have the
113.28legislative auditor arrange for the analysis required by paragraph (a), and the agency must
113.29give new notice of intent to adopt the proposed rule after receiving this analysis. The
113.30administrative law judge may make this determination as part of the administrative law
113.31judge's report on the proposed rule, or at any earlier time after the administrative law judge
113.32is assigned to the rule proceeding.
113.33(c) If the agency determines that the cost exceeds the threshold in subdivision 1 proposed
113.34rule has a substantial economic impact, or if the administrative law judge disapproves the
114.1agency's determination that the cost rule does not exceed the threshold in subdivision 1,
114.2any business that has less than 50 full-time employees or any statutory or home rule charter
114.3city that has less than ten full-time employees may file a written statement with the agency
114.4claiming a temporary exemption from the rules. Upon filing of such a statement with the
114.5agency, the rules do not apply to that business or that city until the rules are have a substantial
114.6economic impact, the agency or the administrative law judge shall deliver the determination
114.7and peer review advisory panel report to the Legislative Coordinating Commission and to
114.8the chairs and ranking minority members of the house of representatives and senate
114.9committees and divisions with jurisdiction over the subject matter of the rule, and the
114.10proposed rule does not take effect until the rule is approved by a law enacted after the agency
114.11determination or administrative law judge disapproval.
114.12    Subd. 4. Exceptions. (a) Subdivision 3 does not apply if the administrative law judge
114.13approves an agency's determination that the legislature has appropriated money to sufficiently
114.14fund the expected cost of the rule upon the business or city proposed to be regulated by the
114.15rule.
114.16(b) (a) Subdivision 3 does not apply if the administrative law judge approves an agency's
114.17determination that the rule has been proposed pursuant to a specific federal statutory or
114.18regulatory mandate.
114.19(c) (b) This section does not apply if the rule is adopted under section 14.388 or under
114.20another law specifying that the rulemaking procedures of this chapter do not apply.
114.21(d) (c) This section does not apply to a rule adopted by the Public Utilities Commission.
114.22(e) Subdivision 3 does not apply if the governor waives application of subdivision 3.
114.23The governor may issue a waiver at any time, either before or after the rule would take
114.24effect, but for the requirement of legislative approval. As soon as possible after issuing a
114.25waiver under this paragraph, the governor must send notice of the waiver to the speaker of
114.26the house and the president of the senate and must publish notice of this determination in
114.27the State Register.
114.28    Subd. 5. Severability. If an administrative law judge determines that part of a proposed
114.29rule exceeds the threshold specified in subdivision 1 has a substantial economic impact, but
114.30that a severable portion of a proposed rule does not exceed the threshold in subdivision 1
114.31have a substantial economic impact, the administrative law judge may provide that the
114.32severable portion of the rule that does not exceed the threshold have a substantial economic
114.33impact may take effect without legislative approval.

115.1    Sec. 16. [14.1275] RULES IMPACTING RESIDENTIAL CONSTRUCTION OR
115.2REMODELING; LEGISLATIVE NOTICE AND REVIEW.
115.3    Subdivision 1. Definition. As used in this section, "residential construction" means the
115.4new construction or remodeling of any building subject to the Minnesota Residential Code.
115.5    Subd. 2. Impact on housing cost; agency determination. An agency must determine
115.6if implementation of a proposed rule, or any portion of a proposed rule, will, on average,
115.7increase the cost of residential construction or remodeling by $1,000 or more per unit. The
115.8agency must make this determination before the close of the hearing record. Upon request
115.9of a party affected by the proposed rule, an administrative law judge must review and
115.10approve or disapprove an agency's determination that any portion of a proposed rule will
115.11increase the cost of a dwelling unit by $1,000 or more.
115.12    Subd. 3. Notice to legislature; legislative approval. (a) If the agency determines that
115.13the impact of a proposed rule meets or exceeds the cost threshold provided in subdivision
115.142, or if the administrative law judge separately confirms the cost of any portion of a rule
115.15exceeds the cost threshold provided in subdivision 2, the agency must notify, in writing,
115.16the chairs and ranking minority members of the policy committees of the house of
115.17representatives and the senate with jurisdiction over the subject matter of the proposed rule
115.18within ten days of the determination.
115.19(b) If a committee of either the house of representatives or senate with jurisdiction over
115.20the subject matter of the proposed rule or a portion of a rule that meets or exceeds the
115.21threshold in subdivision 2 votes to advise an agency that the rule should not be adopted as
115.22proposed, the agency may not adopt the rule unless the rule is approved by a law enacted
115.23after the vote of the committee. Section 14.126, subdivision 2, applies to a vote of a
115.24committee under this subdivision.
115.25    Subd. 4. Severability. If the agency or an administrative law judge determines that part
115.26of a proposed rule meets or exceeds the threshold provided in subdivision 2, but that a
115.27severable portion of the proposed rule does not meet or exceed that threshold, the agency
115.28may proceed to adopt the severable portions of the proposed rule regardless of whether a
115.29legislative committee has voted under subdivision 3 to advise an agency that the rule should
115.30not be adopted as proposed.
115.31EFFECTIVE DATE.This section is effective August 1, 2017, and applies to
115.32administrative rules proposed on or after that date.

116.1    Sec. 17. [14.129] IMPACT ANALYSIS OF PROPOSED RULE.
116.2    Subdivision 1. Analysis. (a) Within 30 days of receipt of the notice required under
116.3section 14.116, paragraph (b), a standing committee with jurisdiction over the subject matter
116.4of a proposed rule may request the legislative auditor to conduct an impact analysis of the
116.5proposed rule. The request must be sent in writing to the legislative auditor and the agency.
116.6Upon receipt of the request, the agency may not proceed to adopt the proposed rule until it
116.7has received a positive declaration from the requesting standing committee. Within 60 days
116.8of receipt of a request, the legislative auditor shall convene a five-person peer review panel
116.9to review the proposed rule. The advisory panel must be made up of individuals who have
116.10not directly or indirectly been involved in work conducted or contracted by the agency and
116.11who are not employed by the agency. The panel may receive written and oral comments
116.12from the public during its review of the proposed rule. The panel must prepare a report that
116.13includes a conclusion on whether the proposed rule:
116.14(1) is based on sound, reasonably available scientific, technical, economic, and other
116.15information and rationale; and
116.16(2) if the proposed rule is more restrictive than a standard, limitation, or requirement
116.17imposed by federal law or rule pertaining to the same subject matter, a justification based
116.18on sound, reasonably available scientific, technical, economic, or other information and
116.19rationale that the more stringent standard is necessary to protect the public's health, safety,
116.20or welfare.
116.21(b) Within 150 days of being convened, the panel must submit its report to the chairs
116.22and ranking minority members of the requesting committee and the legislative auditor.
116.23Within five days of receipt of the panel's report, the requesting standing committee shall
116.24send the report to the agency along with either:
116.25(1) a positive declaration that the agency may proceed with the proposed rule; or
116.26(2) a negative declaration that the agency may not proceed with the proposed rule in its
116.27current form.
116.28(c) If the requesting standing committee issues a negative declaration to an agency under
116.29paragraph (b), clause (2), the agency may not adopt the rule until the legislature adjourns
116.30the annual legislative session that began after the issuance of the negative declaration.
116.31    Subd. 2. Severability. If any one or more provision, sentence, clause, phrase, or word
116.32in this section or the application thereof to any person or circumstance is found to be
116.33unconstitutional, the same is hereby declared to be severable and the balance of this section
117.1shall remain effective notwithstanding such unconstitutionality. The legislature hereby
117.2declares that it would have passed this section and each provision, sentence, clause, phrase,
117.3or word thereof irrespective of the fact that any one or more provision, sentence, clause,
117.4phrase, or word be declared unconstitutional.

117.5    Sec. 18. Minnesota Statutes 2016, section 14.131, is amended to read:
117.614.131 STATEMENT OF NEED AND REASONABLENESS.
117.7By the date of the section 14.14, subdivision 1a, notice, the agency must prepare, review,
117.8and make available for public review a statement of the need for and reasonableness of the
117.9rule. The statement of need and reasonableness must be prepared under rules adopted by
117.10the chief administrative law judge and must include a citation to the most specific statutory
117.11authority for the rule and the following to the extent the agency, through reasonable effort,
117.12can ascertain this information:
117.13(1) a description of the classes of persons who probably will be affected by the proposed
117.14rule, including classes that will bear the costs of the proposed rule and classes that will
117.15benefit from the proposed rule;
117.16(2) the probable costs to the agency and to any other agency of the implementation and
117.17enforcement of the proposed rule and any anticipated effect on state revenues;
117.18(3) a determination of whether there are less costly methods or less intrusive methods
117.19for achieving the purpose of the proposed rule;
117.20(4) a description of any alternative methods for achieving the purpose of the proposed
117.21rule that were seriously considered by the agency and the reasons why they were rejected
117.22in favor of the proposed rule;
117.23(5) the probable costs of complying with the proposed rule, including the portion of the
117.24total costs that will be borne by identifiable categories of affected parties, such as separate
117.25classes of governmental units, businesses, or individuals;
117.26(6) the probable costs or consequences of not adopting the proposed rule, including those
117.27costs or consequences borne by identifiable categories of affected parties, such as separate
117.28classes of government units, businesses, or individuals;
117.29(1) a description of the persons or classifications of persons who will probably be affected
117.30by the proposed rule;
117.31(2) the probable costs of the rule to affected persons and the agency, including those
117.32costs or consequences borne by identifiable categories of affected parties, such as separate
118.1classes of government units, businesses, or individuals, and the probable benefits of adopting
118.2the rule;
118.3(7) (3) an assessment of any differences between the proposed rule and existing or
118.4proposed federal regulations standards and similar standards in relevant states bordering
118.5Minnesota or within Environmental Protection Agency Region 5 and a specific analysis of
118.6the need for and reasonableness of each difference; and
118.7(8) (4) an assessment of the cumulative effect of the rule with other federal and state
118.8regulations related to the specific purpose of the rule. all rules adopted by the agency or any
118.9other agency, and all federal regulations and local ordinances or regulations, related to the
118.10specific purpose for which the rule is being adopted; and
118.11(5) the agency's findings and conclusions that support its determination that the proposed
118.12rule is based on sound, reasonably available scientific, technical, economic, or other
118.13information and rationale; and if the proposed rule is more restrictive than a standard,
118.14limitation, or requirement imposed by federal law or rule pertaining to the same subject
118.15matter, a justification based on sound, reasonably available scientific, technical, economic,
118.16or other information and rationale that the more stringent standard is necessary to protect
118.17the public's health, safety, or welfare.
118.18The statement must describe how the agency, in developing the rules, considered and
118.19implemented the legislative policy supporting performance-based regulatory systems set
118.20forth in section 14.002 in a cost-effective and timely manner.
118.21For purposes of clause (8) (4), "cumulative effect" means the impact that results from
118.22incremental impact of the proposed rule in addition to other rules, regardless of what state
118.23or federal agency has adopted the other rules. Cumulative effects can result from individually
118.24minor but collectively significant rules adopted over a period of time.
118.25The statement must also describe the agency's efforts to provide additional notification
118.26under section 14.14, subdivision 1a, to persons or classes of persons who may be affected
118.27by the proposed rule or must explain why these efforts were not made.
118.28The statement must describe, with reasonable particularity, the scientific, technical, and
118.29economic information that supports the proposed rule.
118.30The agency must consult with the commissioner of management and budget to help
118.31evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
118.32government. The agency must send a copy of the statement of need and reasonableness to
119.1the Legislative Reference Library no later than when the notice of hearing is mailed under
119.2section 14.14, subdivision 1a sent.

119.3    Sec. 19. Minnesota Statutes 2016, section 14.14, subdivision 1a, is amended to read:
119.4    Subd. 1a. Notice of rule hearing. (a) Each agency shall maintain a list of all persons
119.5who have registered with the agency for the purpose of receiving notice of rule proceedings.
119.6Persons may register to receive notice of rule proceedings by submitting to the agency:
119.7(1) their electronic mail address; or
119.8(2) their name and United States mail address.
119.9The agency may inquire as to whether those persons on the list wish to remain on it and
119.10may remove persons for whom there is a negative reply or no reply within 60 days. The
119.11agency shall, at least 30 days before the date set for the hearing, give notice of its intention
119.12to adopt hold a hearing on the proposed rules by United States mail or electronic mail to all
119.13persons on its list who have registered with the agency under section 14.105, and by
119.14publication in the State Register.
119.15    The mailed notice must include either a copy of the proposed rule or an easily readable
119.16and understandable description of its nature and effect and an announcement that a free
119.17copy of the proposed rule is available on request from the agency. In addition, each agency
119.18shall make reasonable efforts to notify persons or classes of persons who may be significantly
119.19affected by the rule being proposed by giving notice of its intention in newsletters,
119.20newspapers, or other publications, or through other means of communication. The notice
119.21in the State Register must include the proposed rule or an amended rule in the form required
119.22by the revisor under section 14.07, together with an easily readable and understandable
119.23summary of the overall nature and effect of the proposed rule, a citation to the most specific
119.24statutory authority for the proposed rule, a statement of the place, date, and time of the
119.25public hearing, a statement that a free copy of the proposed rule and the statement of need
119.26and reasonableness may be requested from the agency, a statement that persons may register
119.27with the agency for the purpose of receiving notice of rule proceedings and notice that the
119.28agency intends to adopt a rule, and other information required by law or rule. When an
119.29entire rule is proposed to be repealed, the agency need only publish that fact, along with an
119.30easily readable and understandable summary of the overall nature of the rules proposed for
119.31repeal, and a citation to the rule to be repealed.
120.1The mailed notice of hearing must be the same as the notice published in the State
120.2Register, except that the mailed notice may omit the text of the proposed rule if it includes
120.3an announcement of where a copy of the proposed rule may be obtained.
120.4(b) The chief administrative law judge may authorize an agency to omit from the notice
120.5of rule hearing the text of any proposed rule, the publication of which would be unduly
120.6cumbersome, expensive, or otherwise inexpedient if:
120.7(1) knowledge of the rule is likely to be important to only a small class of persons;
120.8(2) the notice of rule hearing states that a free copy of the entire rule is available upon
120.9request to the agency; and
120.10(3) the notice of rule hearing states in detail the specific subject matter of the omitted
120.11rule, cites the statutory authority for the proposed rule, and details the proposed rule's purpose
120.12and motivation.

120.13    Sec. 20. Minnesota Statutes 2016, section 14.14, subdivision 2a, is amended to read:
120.14    Subd. 2a. Hearing procedure. When a hearing is held on a proposed rule, it shall be
120.15conducted by an administrative law judge assigned by the chief administrative law judge.
120.16The administrative law judge shall ensure that all persons involved in the rule hearing are
120.17treated fairly and impartially. The agency shall submit into the record the jurisdictional
120.18documents, including the statement of need and reasonableness, comments and hearing
120.19requests received, and any written exhibits in support of the proposed rule. The agency may
120.20also present additional oral evidence. Interested persons may present written and oral
120.21evidence. The administrative law judge shall allow questioning of agency representatives
120.22or witnesses, or of interested persons making oral statements, in order to explain the purpose
120.23or intended operation of a proposed rule, or a suggested modification, or for other purposes
120.24if material to the evaluation or formulation of the proposed rule. The administrative law
120.25judge may limit repetitive or immaterial oral statements and questioning.

120.26    Sec. 21. Minnesota Statutes 2016, section 14.18, subdivision 1, is amended to read:
120.27    Subdivision 1. Generally. Unless a later date is required by section 14.126 or other law
120.28or is specified in the rule, a rule is effective after:
120.29(1) it has been subjected to all requirements described in sections 14.131 to 14.20 and
120.30five working days after;
120.31(2) the notice of adoption is published in the State Register unless a later date is required
120.32by section 14.126 or other law or specified in the rule; and
121.1(3) it has been approved by a law enacted after publication of the notice of adoption. if
121.2any of the following applies:
121.3(i) the rule is enacted without a specific authorization of rulemaking to enact rules to
121.4implement a specific statute section;
121.5(ii) a sanction or penalty can be imposed for failure to comply with the rule; or
121.6(iii) the regulating agency has the authority to adjudicate a dispute with a regulated entity
121.7about enforcement of or violation of the rule.
121.8If the rule adopted is the same as the proposed rule, publication may be made by
121.9publishing notice in the State Register that the rule has been adopted as proposed and by
121.10citing the prior publication. If the rule adopted differs from the proposed rule, the portions
121.11of the adopted rule that differ from the proposed rule must be included in the notice of
121.12adoption together with a citation to the prior State Register publication of the remainder of
121.13the proposed rule. The nature of the modifications must be clear to a reasonable person
121.14when the notice of adoption is considered together with the State Register publication of
121.15the proposed rule, except that modifications may also be made that comply with the form
121.16requirements of section 14.07, subdivision 7.
121.17If the agency omitted from the notice of proposed rule adoption the text of the proposed
121.18rule, as permitted by section 14.14, subdivision 1a, paragraph (b), the chief administrative
121.19law judge may provide that the notice of the adopted rule need not include the text of any
121.20changes from the proposed rule. However, the notice of adoption must state in detail the
121.21substance of the changes made from the proposed rule, and must state that a free copy of
121.22the portion of the adopted rule that was the subject of the rulemaking proceeding, not
121.23including any material adopted by reference as permitted by section 14.07, is available upon
121.24request to the agency.

121.25    Sec. 22. Minnesota Statutes 2016, section 14.19, is amended to read:
121.2614.19 DEADLINE TO COMPLETE RULEMAKING.
121.27Within 180 days after issuance of the administrative law judge's report or that of the
121.28chief administrative law judge, the agency shall submit its notice of adoption, amendment,
121.29or repeal to the State Register for publication. If the agency has not submitted its notice to
121.30the State Register within 180 days, the rule is automatically withdrawn. The agency may
121.31not adopt the withdrawn rules without again following the procedures of sections 14.05 to
121.3214.28 , with the exception of section 14.101, if the noncompliance is approved by the chief
121.33administrative law judge. The agency shall report to the Legislative Coordinating
122.1Commission, other appropriate committees of the legislature, and the governor its failure
122.2to adopt rules and the reasons for that failure. The 180-day time limit of this section does
122.3not include:
122.4(1) any days used for review by the chief administrative law judge or the commission
122.5if the review is required by law; or
122.6(2) days during which the rule cannot be adopted, because of votes by legislative
122.7committees under section 14.126; or.
122.8(3) days during which the rule cannot be adopted because approval of the legislature is
122.9required under section 14.127.

122.10    Sec. 23. Minnesota Statutes 2016, section 14.22, subdivision 1, is amended to read:
122.11    Subdivision 1. Contents. (a) Unless an agency proceeds directly to a public hearing on
122.12a proposed rule and gives the notice prescribed in section 14.14, subdivision 1a, the agency
122.13shall give notice of its intention to adopt a rule without public hearing. The agency shall
122.14give the notice required by this section, unless the agency gives notice of a hearing under
122.15section 14.14 or a notice under section 14.389, subdivision 2. The agency shall give notice
122.16must be given of its intention to adopt a rule by publication in the State Register and by
122.17United States mail or electronic mail to persons who have registered their names with the
122.18agency under section 14.14, subdivision 1a 14.105. The mailed notice must include either
122.19a copy of the proposed rule or an easily readable and understandable description of its nature
122.20and effect and an announcement that a free copy of the proposed rule is available on request
122.21from the agency. In addition, each agency shall make reasonable efforts to notify persons
122.22or classes of persons who may be significantly affected by the rule by giving notice of its
122.23intention in newsletters, newspapers, or other publications, or through other means of
122.24communication. The notice in the State Register must include the proposed rule or the
122.25amended rule in the form required by the revisor under section 14.07,; an easily readable
122.26and understandable summary of the overall nature and effect of the proposed rule,; a citation
122.27to the most specific statutory authority for the proposed rule,; a statement that a free copy
122.28of the statement of need and reasonableness may be requested from the agency; a statement
122.29that persons may register with the agency for the purpose of receiving to receive notice of
122.30rule proceedings and notice that a rule has been submitted to the chief administrative law
122.31judge,; and other information required by law or rule. When an entire rule is proposed to
122.32be repealed, the notice need only state that fact, along with an easily readable and
122.33understandable summary of the overall nature of the rules rule proposed for repeal, and a
122.34citation to the rule to be repealed. The notice must include a statement advising the public:
123.1(1) that the public has at least 30 days in which to submit comment in support of or in
123.2opposition to the proposed rule and that comment is encouraged;
123.3(2) that each comment should identify the portion part and subpart, if any, of the proposed
123.4rule addressed, the reason for the comment, and any change proposed;
123.5(3) that the requester is encouraged to propose any change desired;
123.6(3) (4) that if 25 or more persons submit a written request for a public hearing within
123.7the 30-day comment period, a public hearing will be held and the agency will use the process
123.8under section 14.14;
123.9(4) (5) of the manner in which persons must request a public hearing on the proposed
123.10rule, including the requirements contained in section 14.25 relating to a written request for
123.11a public hearing; and
123.12(5) of the requirements contained in section 14.25 relating to a written request for a
123.13public hearing, and that the requester is encouraged to propose any change desired;
123.14(6) that the agency may modify the proposed rule may be modified if the modifications
123.15are supported by the data and views submitted; and.
123.16(7) that if a hearing is not required, notice of the date of submission of the proposed rule
123.17to the chief administrative law judge for review will be mailed to any person requesting to
123.18receive the notice.
123.19In connection with the statements required in clauses (1) and (3) (4), the notice must
123.20also include the date on which the 30-day comment period ends. The mailed notice of intent
123.21to adopt a rule must be the same as the notice published in the State Register, except that
123.22the mailed notice may omit the text of the proposed rule if it includes an announcement of
123.23where a copy of the proposed rule may be obtained.
123.24(b) The chief administrative law judge may authorize an agency to omit from the notice
123.25of intent to adopt the text of any proposed rule, the publication of which would be unduly
123.26cumbersome, expensive, or otherwise inexpedient if:
123.27(1) knowledge of the rule is likely to be important to only a small class of persons;
123.28(2) the notice of intent to adopt states that a free copy of the entire rule is available upon
123.29request to the agency; and
123.30(3) the notice of intent to adopt states in detail the specific subject matter of the omitted
123.31rule, cites the statutory authority for the proposed rule, and details the proposed rule's purpose
123.32and motivation.

124.1    Sec. 24. Minnesota Statutes 2016, section 14.23, is amended to read:
124.214.23 STATEMENT OF NEED AND REASONABLENESS.
124.3By the date of the section 14.22 notice, the agency shall prepare a statement of need and
124.4reasonableness, which must be available to the public. The statement of need and
124.5reasonableness must include the analysis information required in section 14.131. The
124.6statement must also describe the agency's efforts to provide additional notification under
124.7section 14.22 to persons or classes of persons who may be affected by the proposed rules
124.8or must explain why these efforts were not made. For at least 30 days following the notice,
124.9the agency shall afford the public an opportunity to request a public hearing and to submit
124.10data and views on the proposed rule in writing.
124.11The agency shall send a copy of the statement of need and reasonableness to the
124.12Legislative Reference Library no later than when the notice of intent to adopt is mailed sent.

124.13    Sec. 25. Minnesota Statutes 2016, section 14.25, subdivision 1, is amended to read:
124.14    Subdivision 1. Requests for hearing. If, during the 30-day period allowed for comment
124.15under section 14.22, 25 or more persons submit to the agency a written request for a public
124.16hearing of the proposed rule, the agency shall proceed under the provisions of sections 14.14
124.17to 14.20. The written request must include:
124.18(1) the name and address of the person requesting the public hearing; and
124.19(2) the portion or portions part or subpart, if any, of the rule to which the person objects
124.20or a statement that the person opposes the entire rule. If not previously published under
124.21section 14.22, subdivision 2, a notice of the public hearing must be published in the State
124.22Register and mailed to those persons who submitted a written request for the public hearing.
124.23Unless the agency has modified the proposed rule, the notice need not include the text of
124.24the proposed rule but only a citation to the State Register pages where the text appears; and
124.25(3) the reasons for the objection to each portion of the rule identified.
124.26A written request for a public hearing that does not comply with the requirements of this
124.27section is invalid and may not be counted by the agency for purposes of determining whether
124.28a public hearing must be held. A written request for a public hearing is not invalid due to
124.29failure of the request to correctly identify the portion of the rule to which the person objects
124.30if the agency reasonably can determine which portion of the rule is the basis for the objection.

125.1    Sec. 26. Minnesota Statutes 2016, section 14.26, is amended to read:
125.214.26 ADOPTION OF PROPOSED RULE; SUBMISSION TO ADMINISTRATIVE
125.3LAW JUDGE.
125.4    Subdivision 1. Submission. If no hearing is required, the agency shall submit to an
125.5administrative law judge assigned by the chief administrative law judge the proposed rule
125.6and notice as published, the rule as adopted, any written comments received by the agency,
125.7and a statement of need and reasonableness for the rule. The agency shall give notice to all
125.8persons who requested to be informed that these materials have been submitted to the
125.9administrative law judge. This notice must be given on the same day that the record is
125.10submitted. If the proposed rule has been modified, the notice must state that fact, and must
125.11also state that a free copy of the proposed rule, as modified, is available upon request from
125.12the agency. The rule and these materials must be submitted to the administrative law judge
125.13within 180 days of the day that the comment period for the rule is over or the rule is
125.14automatically withdrawn. The agency may not adopt the withdrawn rules without again
125.15following the procedures of sections 14.05 to 14.28, with the exception of section 14.101,
125.16if the noncompliance is approved by the chief administrative law judge. The agency shall
125.17report its failure to adopt the rules and the reasons for that failure to the Legislative
125.18Coordinating Commission, other appropriate legislative committees, and the governor.
125.19    Subd. 2. Resubmission. Even if the 180-day period expires while the administrative
125.20law judge reviews the rule, if the administrative law judge rejects the rule, the agency may
125.21resubmit it after taking corrective action. The resubmission must occur within 30 days of
125.22when the agency receives written notice of the disapproval. If the rule is again disapproved,
125.23the rule is withdrawn. An agency may resubmit at any time before the expiration of the
125.24180-day period. If the agency withholds some of the proposed rule, it may not adopt the
125.25withheld portion without again following the procedures of sections 14.14 to 14.28.
125.26    Subd. 3. Review. (a) Within 14 days of receiving a submission under subdivision 1, the
125.27administrative law judge shall approve or disapprove the rule as to its legality and its form
125.28to the extent that the form relates to legality, including the issues of whether the rule if
125.29modified is substantially different, as determined under section 14.05, subdivision 2, from
125.30the rule as originally proposed, whether the agency has the authority to adopt the rule, and
125.31whether the record demonstrates a rational basis for the need for and reasonableness of the
125.32proposed rule. If the rule is approved, the administrative law judge shall promptly file four
125.33paper copies or an electronic copy of the adopted rule in the Office of the Secretary of State.
125.34The secretary of state shall forward one copy of each rule to the revisor of statutes, to the
125.35agency, and to the governor. If the rule is disapproved, the administrative law judge shall
126.1state in writing the reasons for the disapproval and make recommendations to overcome
126.2the defects.
126.3    Subd. 3b. Harmless error. The administrative law judge shall disregard any error or
126.4defect in the proceeding due to the agency's failure to satisfy any procedural requirements
126.5imposed by law or rule if the administrative law judge finds:
126.6(1) that the failure did not deprive any person or entity of an opportunity to participate
126.7meaningfully in the rulemaking process; or
126.8(2) that the agency has taken corrective action to cure the error or defect so that the
126.9failure did not deprive any person or entity of an opportunity to participate meaningfully
126.10in the rulemaking process.
126.11    Subd. 3c. Correction of defects. (b) (a) The written disapproval must be submitted to
126.12the chief administrative law judge for approval. If the chief administrative law judge approves
126.13of the findings of the administrative law judge, the chief administrative law judge shall send
126.14the statement of the reasons for disapproval of the rule to the agency, the Legislative
126.15Coordinating Commission, the house of representatives and senate policy committees with
126.16primary jurisdiction over state governmental operations, and the revisor of statutes and
126.17advise the agency and the revisor of statutes of actions that will correct the defects. The rule
126.18may not be filed in the Office of the Secretary of State, nor be published, until the chief
126.19administrative law judge determines that the defects have been corrected or, if applicable,
126.20that the agency has satisfied the rule requirements for the adoption of a substantially different
126.21rule.
126.22(b) The agency may resubmit the disapproved rule under paragraph (a) to the chief
126.23administrative law judge after correcting the defects. If the 180-day period expires while
126.24the chief administrative law judge is reviewing the rule, the agency may resubmit the rule
126.25within 30 days of the date the agency received written notice of disapproval. In all other
126.26cases, the agency may resubmit the rule at any time before the expiration of the 180-day
126.27period in subdivision 1. If the resubmitted rule is disapproved by the chief administrative
126.28law judge, the rule is withdrawn. If the agency does not resubmit a portion of the rule, it
126.29may not adopt that portion of the rule without again following the procedures of sections
126.3014.14 to 14.28.
126.31    Subd. 3d. Need or reasonableness not established. (c) If the chief administrative law
126.32judge determines that the need for or reasonableness of the rule has not been established,
126.33and if the agency does not elect to follow the suggested actions of the chief administrative
126.34law judge to correct that defect, then the agency shall submit the proposed rule to the
127.1Legislative Coordinating Commission and to the house of representatives and senate policy
127.2committees with primary jurisdiction over state governmental operations for advice and
127.3comment. The agency may not adopt the rule until it has received and considered the advice
127.4of the commission and committees. However, the agency need not wait for advice for more
127.5than 60 days after the commission and committees have received the agency's submission.
127.6(d) The administrative law judge shall disregard any error or defect in the proceeding
127.7due to the agency's failure to satisfy any procedural requirements imposed by law or rule
127.8if the administrative law judge finds:
127.9(1) that the failure did not deprive any person or entity of an opportunity to participate
127.10meaningfully in the rulemaking process; or
127.11(2) that the agency has taken corrective action to cure the error or defect so that the
127.12failure did not deprive any person or entity of an opportunity to participate meaningfully
127.13in the rulemaking process.
127.14    Subd. 3a. Filing. If the rule is approved, the administrative law judge shall promptly
127.15file four paper copies or an electronic copy of the adopted rule in the Office of the Secretary
127.16of State. The secretary of state shall forward one copy of each rule to the revisor of statutes,
127.17to the agency, and to the governor.
127.18    Subd. 4. Costs. The Office of Administrative Hearings shall assess an agency for the
127.19actual cost of processing rules under this section. Each agency shall include in its budget
127.20money to pay the assessment. Receipts from the assessment must be deposited in the
127.21administrative hearings account created in section 14.54.
127.22    Subd. 5. Filing. If the rule is approved, the chief administrative law judge shall promptly
127.23file four paper copies or an electronic copy of it in the Office of the Secretary of State. The
127.24secretary of state shall forward one copy of the rule to the revisor of statutes, one copy to
127.25the agency, and one copy to the governor.
127.26    Subd. 6. Costs. The Office of Administrative Hearings shall assess an agency for the
127.27actual cost of processing rules under this section. Each agency shall include in its budget
127.28money to pay the assessment. Receipts from the assessment must be deposited in the
127.29administrative hearings account created in section 14.54.

127.30    Sec. 27. Minnesota Statutes 2016, section 14.27, is amended to read:
127.3114.27 PUBLICATION OF ADOPTED RULE; EFFECTIVE DATE.
128.1(a) Except as provided in paragraph (b), the rule is effective upon after publication of
128.2the notice of adoption in the State Register in the same manner as provided for adopted
128.3rules in section 14.18.
128.4(b) A rule is effective after publication of the notice of adoption in the State Register
128.5and after approval by law in the same manner as provided for adopted rules in section 14.18,
128.6if any of the following applies:
128.7(1) the rule is enacted without a specific authorization of rulemaking to enact rules to
128.8implement a specific statute section;
128.9(2) a sanction or penalty can be imposed for failure to comply with the rule; or
128.10(3) the regulating agency has the authority to adjudicate a dispute with a regulated entity
128.11about enforcement of or violation of the rule.
128.12EFFECTIVE DATE.This section is effective the day following final enactment and
128.13applies to rules for which a notice of adoption is published on or after that date.

128.14    Sec. 28. Minnesota Statutes 2016, section 14.365, is amended to read:
128.1514.365 OFFICIAL RULEMAKING RECORD.
128.16The agency shall maintain the official rulemaking record for every rule adopted under
128.17sections 14.05 to 14.389 14.3895. The record must be available for public inspection. The
128.18record required by this section constitutes the official and exclusive agency rulemaking
128.19record with respect to agency action on or judicial review of the rule. The record must
128.20contain:
128.21(1) copies of all publications in the State Register pertaining to the rule;
128.22(2) all written petitions, and all requests, submissions, or comments received by the
128.23agency or the administrative law judge after publication of the notice of intent to adopt or
128.24the notice of hearing in the State Register pertaining to the rule;
128.25(3) the statement of need and reasonableness for the rule;
128.26(4) any report prepared by the peer review panel pursuant to section 14.129;
128.27(4) (5) the official transcript of the hearing if one was held, or the tape recording of the
128.28hearing if a transcript was not prepared;
128.29(5) (6) the report of the administrative law judge, if any;
129.1(6) (7) the rule in the form last submitted to the administrative law judge under sections
129.214.14 to 14.20 or first submitted to the administrative law judge under sections 14.22 to
129.314.28 ;
129.4(7) (8) the administrative law judge's written statement of required modifications and
129.5of approval or disapproval by the chief administrative law judge, if any;
129.6(8) (9) any documents required by applicable rules of the Office of Administrative
129.7Hearings;
129.8(9) (10) the agency's order adopting the rule;
129.9(10) (11) the revisor's certificate approving the form of the rule; and
129.10(11) (12) a copy of the adopted rule as filed with the secretary of state.

129.11    Sec. 29. Minnesota Statutes 2016, section 14.381, subdivision 3, is amended to read:
129.12    Subd. 3. Costs. The agency is liable for all Office of Administrative Hearings costs
129.13associated with review of the petition. If the administrative law judge rules in favor of the
129.14agency, the agency may recover all or a portion of the costs from the petitioner unless the
129.15petitioner is entitled to proceed in forma pauperis under section 563.01 or the administrative
129.16law judge determines that the petition was brought in good faith and that an assessment of
129.17the costs would constitute an undue hardship for the petitioner. If an agency has reason to
129.18believe it will prevail in the consideration of a petition, and that an effort to recover costs
129.19from the petitioner will be unsuccessful, it may request the chief administrative law judge
129.20to require the petitioner to provide bond or a deposit to the agency in an amount the chief
129.21administrative law judge estimates will be the cost to the Office of Administrative Hearings
129.22to review the petition.

129.23    Sec. 30. Minnesota Statutes 2016, section 14.388, subdivision 1, is amended to read:
129.24    Subdivision 1. Requirements. If an agency for good cause finds that the rulemaking
129.25provisions of this chapter are unnecessary, impracticable, or contrary to the public interest
129.26when adopting, amending, or repealing a rule to:
129.27(1) address a serious and immediate threat to the public health, safety, or welfare;
129.28(2) comply with a court order or a requirement in federal law in a manner that does not
129.29allow for compliance with sections 14.14 to 14.28;
129.30(3) incorporate specific changes set forth in applicable statutes when no interpretation
129.31of law is required; or
130.1(4) make changes that do not alter the sense, meaning, or effect of a rule,
130.2the agency may adopt, amend, or repeal the rule after satisfying the requirements of
130.3subdivision 2 and section 14.386, paragraph (a), clauses (1) to (4). The agency shall
130.4incorporate its findings and a brief statement of its supporting reasons in its order adopting,
130.5amending, or repealing the rule.
130.6After considering the agency's statement and any comments received, the Office of
130.7Administrative Hearings shall determine whether the agency has provided adequate
130.8justification for its use of this section.
130.9Rules adopted, amended, or repealed under clauses clause (1) and (2) are effective for
130.10a period of two years from the date of publication of the rule in the State Register.
130.11Rules adopted, amended, or repealed under clause (2), (3), or (4) are effective upon
130.12publication in the State Register.

130.13    Sec. 31. Minnesota Statutes 2016, section 14.388, subdivision 2, is amended to read:
130.14    Subd. 2. Notice. An agency proposing to adopt, amend, or repeal a rule under this section
130.15must give notice to the chairs and ranking minority members of the legislative policy and
130.16budget committees with jurisdiction over the subject matter of the proposed rules and to
130.17the Legislative Coordinating Commission, must give electronic notice of its intent in
130.18accordance with section 16E.07, subdivision 3, and must give notice by United States mail
130.19or electronic mail to persons who have registered their names with the agency under section
130.2014.14, subdivision 1a . The notice must be given no later than the date the agency submits
130.21the proposed rule to the Office of Administrative Hearings for review of its legality and
130.22must include:
130.23(1) the proposed rule, amendment, or repeal;
130.24(2) an explanation of why the rule meets the requirements of the good cause exemption
130.25under subdivision 1; and
130.26(3) a statement that interested parties have five business days after the date of the notice
130.27to submit comments to the Office of Administrative Hearings.

130.28    Sec. 32. Minnesota Statutes 2016, section 14.389, subdivision 3, is amended to read:
130.29    Subd. 3. Adoption. (a) The agency may modify a proposed rule if the modifications do
130.30not result in a substantially different rule, as defined in section 14.05, subdivision 2,
130.31paragraphs (b) and (c). If the final rule is identical to the rule originally published in the
131.1State Register, the agency must publish a notice of adoption in the State Register. If the
131.2final rule is different from the rule originally published in the State Register, the agency
131.3must publish a copy of the changes in the State Register. The agency must also file a copy
131.4of the rule with the governor. The rule is effective upon publication in the State Register.
131.5(b) Except as provided in paragraph (c), the rule is effective upon publication in the
131.6State Register.
131.7(c) The rule is effective upon publication of the notice of adoption if it has been approved
131.8by a law enacted after publication of the notice of adoption, if any of the following applies:
131.9(1) the rule is enacted without a specific authorization of rulemaking to enact rules to
131.10implement a specific statute section;
131.11(2) a sanction or penalty can be imposed for failure to comply with the rule; or
131.12(3) the regulating agency has the authority to adjudicate a dispute with a regulated entity
131.13about enforcement of or violation of the rule.
131.14EFFECTIVE DATE.This section is effective the day following final enactment and
131.15applies to rules for which a notice of adoption is published on or after that date.

131.16    Sec. 33. Minnesota Statutes 2016, section 14.44, is amended to read:
131.1714.44 DETERMINATION OF VALIDITY OF RULE.
131.18(a) The validity of any rule, or the validity of any agency policy, guideline, bulletin,
131.19criterion, manual standard, or similar pronouncement that the petitioner believes is a rule
131.20as defined in section 14.02, subdivision 4, may be determined upon the petition for a
131.21declaratory judgment thereon, addressed to the Court of Appeals, when it appears that the
131.22rule or pronouncement, or its threatened application, interferes with or impairs, or threatens
131.23to interfere with or impair the legal rights or privileges of the petitioner. The agency shall
131.24be made a party to the proceeding. The declaratory judgment may be rendered whether or
131.25not the petitioner has first requested the agency to pass upon the validity of the rule in
131.26question, whether or not the petitioner has petitioned the Office of Administrative Hearings
131.27under section 14.381, and whether or not the agency has commenced an action against the
131.28petitioner to enforce the rule.
131.29(b) If the subject of the petition is an agency policy, guideline, bulletin, criterion, manual
131.30standard, or similar pronouncement, the agency must cease enforcement of the
131.31pronouncement upon filing of the petition until the Court of Appeals rules on the matter.
131.32The agency is liable for all costs associated with review of the petition. If the Court of
132.1Appeals rules in favor of the agency, the agency may recover all or a portion of the cost
132.2from the petitioner unless the petitioner is entitled to proceed in a forma pauperis under
132.3section 563.01, or the court determines that the petition was brought in good faith or the
132.4assessment of the costs would constitute an undue hardship for the petitioner.

132.5    Sec. 34. Minnesota Statutes 2016, section 14.45, is amended to read:
132.614.45 RULE DECLARED INVALID.
132.7In proceedings under section 14.44, the court shall declare the rule or agency policy,
132.8guideline, bulletin, criterion, manual standard, or similar pronouncement invalid if it finds
132.9that it violates constitutional provisions or exceeds the statutory authority of the agency or
132.10if the rule was adopted or the policy, guideline, bulletin, criterion, manual standard, or
132.11similar pronouncement was improperly implemented without compliance with statutory
132.12rulemaking procedures. Any party to proceedings under section 14.44, including the agency,
132.13may appeal an adverse decision of the Court of Appeals to the Supreme Court as in other
132.14civil cases.

132.15    Sec. 35. Minnesota Statutes 2016, section 14.51, is amended to read:
132.1614.51 PROCEDURAL RULES.
132.17The chief administrative law judge shall adopt rules to govern: (1) the procedural conduct
132.18of all hearings, relating to both rule adoption, amendment, suspension or repeal hearings,
132.19contested case hearings, and workers' compensation hearings, and to govern the conduct of
132.20voluntary mediation sessions for rulemaking and contested cases other than those within
132.21the jurisdiction of the Bureau of Mediation Services; and (2) the review of rules adopted
132.22without a public hearing. The chief administrative law judge may adopt rules to govern the
132.23procedural conduct of other hearings conducted by the Office of Administrative Hearings.
132.24The procedural rules shall be binding upon all agencies and shall supersede any other agency
132.25procedural rules with which they may be in conflict. The procedural rules shall include in
132.26addition to normal procedural matters provisions relating to the procedure to be followed
132.27when the proposed final rule of an agency is substantially different, as determined under
132.28section 14.05, subdivision 2, from that which was proposed. The procedural rules shall
132.29establish a procedure whereby the proposed final rule of an agency shall be reviewed by
132.30the chief administrative law judge on the issue of whether the proposed final rule of the
132.31agency is substantially different than that which was proposed or failure of the agency to
132.32meet the requirements of chapter 14. The rules must also provide: (1) an expedited procedure,
132.33consistent with section 14.001, clauses (1) to (5), for the adoption of substantially different
133.1rules by agencies; and (2) a procedure to allow an agency to receive prior binding approval
133.2of its plan regarding the additional notice contemplated under sections 14.101, 14.131,
133.314.14 , 14.22, and 14.23, and 14.389. Upon the chief administrative law judge's own initiative
133.4or upon written request of an interested party, the chief administrative law judge may issue
133.5a subpoena for the attendance of a witness or the production of books, papers, records or
133.6other documents as are material to any matter being heard by the Office of Administrative
133.7Hearings. The subpoenas shall be enforceable through the district court in the district in
133.8which the subpoena is issued.

133.9    Sec. 36. Minnesota Statutes 2016, section 14.57, is amended to read:
133.1014.57 INITIATION; DECISION; AGREEMENT TO ARBITRATE.
133.11(a) An agency shall initiate a contested case proceeding when one is required by law.
133.12Unless otherwise provided by law, An agency shall decide submit a contested case only to
133.13the Office of Administrative Hearings for disposition in accordance with the contested case
133.14procedures of the Administrative Procedure Act. Upon initiation of a contested case
133.15proceeding, an agency may, by order, provide that the report or order of the administrative
133.16law judge constitutes the final decision in the case.
133.17(b) As an alternative to initiating or continuing with a contested case proceeding, the
133.18parties, subsequent to agency approval, may enter into a written agreement to submit the
133.19issues raised to arbitration by an administrative law judge according to sections 572B.01
133.20to 572B.31.
133.21EFFECTIVE DATE.This section is effective August 1, 2017, and applies to contested
133.22cases initiated on or after that date.

133.23    Sec. 37. [14.605] AFFIRMATIVE DEFENSE.
133.24In a contested case or any other action to enforce a rule or to sanction or penalize a
133.25person for violation of a rule, a person shall have an affirmative defense if the person shows
133.26by a preponderance of the evidence that the cost for the person to comply with the rule
133.27exceeds $50,000.
133.28EFFECTIVE DATE.This section is effective the day following final enactment and
133.29applies to rules for which a notice of adoption is published on or after that date.

134.1    Sec. 38. MINNESOTA ADMINISTRATIVE RULES STATUS SYSTEM (MARSS)
134.2WORKING GROUP.
134.3    Subdivision 1. Creation. The MARSS working group consists of the following nine
134.4members:
134.5(1) the chief judge of the Office of Administrative Hearings, or a designee;
134.6(2) the secretary of state, or a designee;
134.7(3) a representative from the Interagency Rules Committee (IRC) appointed by the
134.8committee;
134.9(4) a representative from each of the following agencies with rulemaking experience
134.10appointed by the appropriate commissioner:
134.11(i) the Department of Health;
134.12(ii) the Minnesota Pollution Control Agency;
134.13(iii) the Department of Transportation; and
134.14(iv) the Department of Labor and Industry;
134.15(5) as designated by the IRC, a representative from a health-related board; and
134.16(6) as designated by the IRC, a representative from a non-health-related board.
134.17    Subd. 2. MARSS description. The Minnesota Administrative Rules Status System
134.18(MARSS) is a concept for a new software application. The application would be built and
134.19maintained by the Revisor's Office. Executive branch agencies and others would upload
134.20official rulemaking record documents to the system. The goal is to improve public access,
134.21security, preservation, and transparency of state agencies' official rulemaking records through
134.22the creation of a single online records system. The system would serve as a single Internet
134.23location for the public to track rulemaking progress and access the official rulemaking
134.24record. Agencies would fulfill their requirement to maintain and preserve the official
134.25rulemaking record by submitting required documents to the revisor for inclusion in the
134.26online records system.
134.27    Subd. 3. Duties. The working group must report by February 1, 2018, to the chairs and
134.28ranking minority members of the committees in the house of representatives and senate
134.29with jurisdiction over policy and finance for the legislature. The report must identify the
134.30functional and nonfunctional requirements of the MARSS system. The working group must
134.31define a funding mechanism to share the cost to build and maintain the MARSS system
134.32among state agencies and departments.
135.1    Subd. 4. Administration provisions. (a) The revisor of statutes or the revisor's designee
135.2must convene the initial meeting of the working group by August 1, 2017. Upon request of
135.3the working group, the revisor must provide meeting space and administrative services for
135.4the group.
135.5(b) The working group must elect a chair from among its members at the first meeting.
135.6(c) Members serve without compensation and without reimbursement for expenses.
135.7(d) The working group expires on February 1, 2018, or upon submission of documents
135.8fulfilling its duties, whichever is earlier.
135.9    Subd. 5. Deadline for appointments and designations. The appointments and
135.10designations authorized by this section must be completed by July 1, 2017.

135.11    Sec. 39. REVISOR'S INSTRUCTION.
135.12By January 15, 2018, the revisor of statutes shall present a bill to the legislature to make
135.13the conforming statutory changes to incorporate changes in this article to the contested case
135.14procedures under Minnesota Statutes, section 14.57.

135.15    Sec. 40. REPEALER.
135.16Minnesota Statutes 2016, section 14.05, subdivision 5, is repealed.

135.17    Sec. 41. EFFECTIVE DATE; APPLICATION.
135.18Except where otherwise provided, this article is effective August 1, 2017, and applies
135.19to rules for which a notice of hearing under Minnesota Statutes, section 14.14; a notice of
135.20intent to adopt under Minnesota Statutes, section 14.22; or a dual notice under Minnesota
135.21Statutes, section 14.225, is published in the State Register on or after that date.

135.22ARTICLE 5
135.23MILITARY AFFAIRS AND VETERANS AFFAIRS

135.24    Section 1. Minnesota Statutes 2016, section 190.19, subdivision 2, is amended to read:
135.25    Subd. 2. Uses. (a) Money appropriated from the Minnesota "Support Our Troops" account
135.26to the Department of Military Affairs may be used for:
135.27    (1) grants directly to eligible individuals;
135.28    (2) grants to one or more eligible foundations for the purpose of making grants to eligible
135.29individuals, as provided in this section;
136.1    (3) veterans' services; or
136.2    (4) grants to family readiness groups chartered by the adjutant general.
136.3    (b) As used in paragraph (a), the term "eligible individual" includes any person who is:
136.4    (1) a member in good standing of the Minnesota National Guard or a reserve unit based
136.5in Minnesota who has been called to active service as defined in section 190.05, subdivision
136.65 ;
136.7    (2) a Minnesota resident who is a member of a military reserve unit not based in
136.8Minnesota, if the member is called to active service as defined in section 190.05, subdivision
136.95 ;
136.10    (3) any other Minnesota resident performing active service for any branch of the military
136.11of the United States;
136.12    (4) a person who honorably served in one of the capacities listed in clause (1), (2), or
136.13(3) who has current financial needs directly related to that service; and
136.14    (5) a member of the immediate family of an individual identified in clause (1), (2), (3),
136.15or (4). For purposes of this clause, "immediate family" means the individual's spouse and
136.16minor children and, if they are dependents of the member of the military, the member's
136.17parents, grandparents, siblings, stepchildren, and adult children.
136.18    (c) As used in paragraph (a), the term "eligible foundation" includes any organization
136.19that:
136.20    (1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code;
136.21    (2) has articles of incorporation under chapter 317A specifying the purpose of the
136.22organization as including the provision of financial assistance to members of the Minnesota
136.23National Guard and other United States armed forces reserves and their families and
136.24survivors; and
136.25    (3) agrees in writing to distribute any grant money received from the adjutant general
136.26under this section to eligible individuals as defined in this section and in accordance with
136.27any written policies and rules the adjutant general may impose as conditions of the grant to
136.28the foundation.
136.29    (d) The maximum grant awarded to an eligible individual under paragraph (a) in a
136.30calendar year with funds from the Minnesota "Support Our Troops" account, either through
136.31an eligible institution or directly from the adjutant general, may not exceed $2,000 $4,000.

137.1    Sec. 2. Minnesota Statutes 2016, section 190.19, subdivision 2a, is amended to read:
137.2    Subd. 2a. Uses; veterans. (a) Money appropriated to the Department of Veterans Affairs
137.3from the Minnesota "Support Our Troops" account may be used for:
137.4    (1) grants to veterans service organizations;
137.5    (2) outreach to underserved veterans;
137.6(3) providing services and programs for veterans and their families;
137.7(4) transfers to the vehicle services account for Gold Star license plates under section
137.8168.1253 ;
137.9(5) grants of up to $100,000 to any organization approved by the commissioner of
137.10veterans affairs for the purpose of supporting and improving the lives of veterans and their
137.11families; and
137.12(6) grants to an eligible foundation.; and
137.13(7) the agency's uncompensated burial costs for eligible dependents to whom the
137.14commissioner grants a no-fee or reduced-fee burial in the state's veteran cemeteries pursuant
137.15to section 197.236, subdivision 9, paragraph (b).
137.16(b) For purposes of this subdivision, "eligible foundation" includes any organization
137.17that:
137.18(1) is a tax-exempt organization under section 501(c) of the Internal Revenue Code; and
137.19(2) is a nonprofit corporation under chapter 317A and the organization's articles of
137.20incorporation specify that a purpose of the organization includes: (i) providing assistance
137.21to veterans and their families; or (ii) enhancing the lives of veterans and their families.

137.22    Sec. 3. Minnesota Statutes 2016, section 196.05, subdivision 1, is amended to read:
137.23    Subdivision 1. General duties. The commissioner shall:
137.24    (1) act as the agent of a resident of the state having a claim against the United States for
137.25benefits arising out of or by reason of service in the armed forces and prosecute the claim
137.26without charge;
137.27    (2) act as custodian of veterans' bonus records;
137.28    (3) administer the laws relating to the providing of bronze flag holders at veterans' graves
137.29for memorial purposes;
138.1    (4) administer the laws relating to recreational or rest camps for veterans so far as
138.2applicable to state agencies;
138.3    (5) administer the state soldiers' assistance fund and veterans' relief fund and other funds
138.4appropriated for the payment of bonuses or other benefits to veterans or for the rehabilitation
138.5of veterans;
138.6    (6) cooperate with national, state, county, municipal, and private social agencies in
138.7securing to veterans and their dependents the benefits provided by national, state, and county
138.8laws, municipal ordinances, or public and private social agencies;
138.9    (7) provide necessary assistance where other adequate aid is not available to the dependent
138.10family of a veteran while the veteran is hospitalized and after the veteran is released for as
138.11long a period as is necessary as determined by the commissioner;
138.12    (8) cooperate with United States governmental agencies providing compensation,
138.13pensions, insurance, or other benefits provided by federal law, by supplementing the benefits
138.14prescribed therein, when conditions in an individual case make it necessary;
138.15    (9) assist dependent family members of military personnel who are called from reserve
138.16status to extended federal active duty during a time of war or national emergency through
138.17the state soldiers' assistance fund provided by section 197.03;
138.18    (10) exercise other powers as may be authorized and necessary to carry out the provisions
138.19of this chapter and chapter 197, consistent with that chapter; and
138.20    (11) provide information, referral, and counseling services to those veterans who may
138.21have suffered adverse health conditions as a result of possible exposure to chemical agents.;
138.22and
138.23(12) in coordination with the Minnesota Association of County Veterans Service Officers,
138.24develop a written disclosure statement for use by private providers of veterans benefits
138.25services as required under section 197.6091. At a minimum, the written disclosure statement
138.26shall include a signature line, contact information for the department, and a statement that
138.27veterans benefits services are offered at no cost by federally chartered veterans service
138.28organizations and by county veterans service officers.

138.29    Sec. 4. Minnesota Statutes 2016, section 197.236, subdivision 9, is amended to read:
138.30    Subd. 9. Burial fees. (a) The commissioner of veterans affairs shall establish a fee
138.31schedule, which may be adjusted from time to time, for the interment of eligible spouses
139.1and dependent children. The fees shall cover as nearly as practicable the actual costs of
139.2interment, excluding the value of the plot.
139.3    (b) Upon application, the commissioner may waive or reduce the burial fee in the case
139.4of for an indigent eligible person. The commissioner shall develop a policy, eligibility
139.5standards, and application form for requests to waive or reduce the burial fee to indigent
139.6eligible applicants.
139.7    (c) No plot or interment fees may be charged for the burial of service members who die
139.8on active duty or eligible veterans, as defined in United States Code, title 38, section 101,
139.9paragraph (2).

139.10    Sec. 5. [197.6091] VETERANS BENEFITS SERVICES; DISCLOSURE
139.11REQUIREMENTS.
139.12    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
139.13the meanings given.
139.14(b)(1) "Advertising" or "advertisement" means any of the following:
139.15(i) any written or printed communication made for the purpose of soliciting business for
139.16veterans benefits appeal services, including but not limited to a brochure, letter, pamphlet,
139.17newspaper, telephone listing, periodical, or other writing;
139.18(ii) any directory listing caused or permitted by a person and made available by that
139.19person indicating that veterans benefits appeal services are being offered; or
139.20(iii) any radio, television, computer network, or similar airwave or electronic transmission
139.21that solicits business for or promotes a person offering veterans benefits appeal services.
139.22(2) "Advertising" or "advertisement" does not include any of the following:
139.23(i) any printing or writing used on buildings, uniforms, or badges, where the purpose of
139.24the writing is for identification; or
139.25(ii) any printing or writing in a memorandum or other communication used in the ordinary
139.26course of business where the sole purpose of the writing is other than soliciting business
139.27for veterans benefits appeal services.
139.28(c) "Veterans benefits appeal services" means services that a veteran might reasonably
139.29require in order to appeal a denial of federal or state veterans benefits, including but not
139.30limited to denials of disability, limited income, home loan, insurance, education and training,
139.31burial and memorial, and dependent and survivor benefits.
140.1(d) "Veterans benefits services" means services that a veteran or a family member of a
140.2veteran might reasonably use in order to obtain federal, state, or county veterans benefits.
140.3(e) "Written disclosure statement" means the written disclosure statement developed by
140.4the commissioner of veterans affairs pursuant to section 196.05, subdivision 1.
140.5    Subd. 2. Advertising disclosure requirements. A person advertising veterans benefits
140.6appeal services must conspicuously disclose in the advertisement, in similar type size or
140.7voice-over, that veterans benefits appeal services are also offered at no cost by county
140.8veterans service officers under sections 197.603 and 197.604.
140.9    Subd. 3. Veterans benefits services disclosure requirements. A person who provides
140.10veterans benefits services in exchange for compensation shall provide a written disclosure
140.11statement to each client or prospective client. Before a person enters into an agreement to
140.12provide veterans benefits services or accepts money or any other thing of value for the
140.13provision of veterans benefits services, the person must obtain the signature of the client
140.14on a written disclosure statement containing an attestation by the client that the client has
140.15read and understands the written disclosure statement.
140.16    Subd. 4. Violations; penalties. A person who fails to comply with this section is subject
140.17to a civil penalty not to exceed $1,000 for each violation. Civil penalties shall be assessed
140.18by the district court in an action initiated by the attorney general. For the purposes of
140.19computing the amount of each civil penalty, each day of a continuing violation constitutes
140.20a separate violation. Additionally, the attorney general may accept a civil penalty as
140.21determined by the attorney general in settlement of an investigation of a violation of this
140.22section regardless of whether an action has been filed under this section. Any civil penalty
140.23recovered shall be deposited in the Support Our Troops account established under section
140.24190.19.
140.25    Subd. 5. Nonapplicability. This section does not apply to the owner or personnel of any
140.26medium in which an advertisement appears or through which an advertisement is
140.27disseminated.

140.28    Sec. 6. Minnesota Statutes 2016, section 197.791, subdivision 2, is amended to read:
140.29    Subd. 2. Program established. The Minnesota GI Bill program is established to provide
140.30postsecondary educational assistance, apprenticeship and on-the-job training benefits, and
140.31other professional and educational benefits to eligible Minnesota veterans and to the children
140.32and spouses of deceased and severely disabled Minnesota veterans.
141.1    The commissioner, in cooperation with eligible postsecondary educational institutions,
141.2shall administer the program for the purpose of providing postsecondary educational
141.3assistance to eligible persons in accordance with this section. Each public postsecondary
141.4educational institution in the state must participate in the program and each private
141.5postsecondary educational institution in the state is encouraged to participate in the program.
141.6Any participating private institution may suspend or terminate its participation in the program
141.7at the end of any semester or other academic term.

141.8    Sec. 7. Minnesota Statutes 2016, section 197.791, subdivision 3, is amended to read:
141.9    Subd. 3. Duties; responsibilities. (a) The commissioner shall establish policies and
141.10procedures including, but not limited to, procedures for student application record keeping,
141.11information sharing, payment of educational assistance benefits under subdivision 5, payment
141.12of apprenticeship or on-the-job training benefits under subdivision 5a, payment of other
141.13educational or professional benefits under subdivision 5, and other procedures the
141.14commissioner considers appropriate and necessary for effective and efficient administration
141.15of the program established in this section.
141.16    (b) The commissioner may delegate part or all of the administrative procedures for the
141.17program to responsible representatives of participating eligible institutions. The commissioner
141.18may execute an interagency agreement with the Minnesota Office of Higher Education for
141.19services the commissioner determines necessary to administer the program.

141.20    Sec. 8. Minnesota Statutes 2016, section 197.791, subdivision 4, is amended to read:
141.21    Subd. 4. Eligibility. (a) A person is eligible for educational assistance under this section
141.22subdivisions 5 and 5a if:
141.23    (1) the person is:
141.24    (i) a veteran who is serving or has served honorably in any branch or unit of the United
141.25States armed forces at any time;
141.26    (ii) a nonveteran who has served honorably for a total of five years or more cumulatively
141.27as a member of the Minnesota National Guard or any other active or reserve component of
141.28the United States armed forces, and any part of that service occurred on or after September
141.2911, 2001;
141.30    (iii) the surviving spouse or child of a person who has served in the military and who
141.31has died as a direct result of that military service, only if the surviving spouse or child is
142.1eligible to receive federal education benefits under United States Code, title 38, chapter 33,
142.2as amended, or United States Code, title 38, chapter 35, as amended; or
142.3    (iv) the spouse or child of a person who has served in the military at any time and who
142.4has a total and permanent service-connected disability as rated by the United States Veterans
142.5Administration, only if the spouse or child is eligible to receive federal education benefits
142.6under United States Code, title 38, chapter 33, as amended, or United States Code, title 38,
142.7chapter 35, as amended; and
142.8    (2) the person receiving the educational assistance is a Minnesota resident, as defined
142.9in section 136A.101, subdivision 8; and
142.10    (3) the person receiving the educational assistance:
142.11    (i) is an undergraduate or graduate student at an eligible institution;
142.12    (ii) is maintaining satisfactory academic progress as defined by the institution for students
142.13participating in federal Title IV programs;
142.14    (iii) is enrolled in an education program leading to a certificate, diploma, or degree at
142.15an eligible institution;
142.16    (iv) has applied for educational assistance under this section prior to the end of the
142.17academic term for which the assistance is being requested;
142.18    (v) is in compliance with child support payment requirements under section 136A.121,
142.19subdivision 2 , clause (5); and
142.20    (vi) has completed the Free Application for Federal Student Aid (FAFSA).
142.21    (b) A person's eligibility terminates when the person becomes eligible for benefits under
142.22section 135A.52.
142.23    (c) To determine eligibility, the commissioner may require official documentation,
142.24including the person's federal form DD-214 or other official military discharge papers;
142.25correspondence from the United States Veterans Administration; birth certificate; marriage
142.26certificate; proof of enrollment at an eligible institution; signed affidavits; proof of residency;
142.27proof of identity; or any other official documentation the commissioner considers necessary
142.28to determine eligibility.
142.29    (d) The commissioner may deny eligibility or terminate benefits under this section to
142.30any person who has not provided sufficient documentation to determine eligibility for the
142.31program. An applicant may appeal the commissioner's eligibility determination or termination
142.32of benefits in writing to the commissioner at any time. The commissioner must rule on any
143.1application or appeal within 30 days of receipt of all documentation that the commissioner
143.2requires. The decision of the commissioner regarding an appeal is final. However, an
143.3applicant whose appeal of an eligibility determination has been rejected by the commissioner
143.4may submit an additional appeal of that determination in writing to the commissioner at
143.5any time that the applicant is able to provide substantively significant additional information
143.6regarding the applicant's eligibility for the program. An approval of an applicant's eligibility
143.7by the commissioner following an appeal by the applicant is not retroactively effective for
143.8more than one year or the semester of the person's original application, whichever is later.
143.9    (e) Upon receiving an application with insufficient documentation to determine eligibility,
143.10the commissioner must notify the applicant within 30 days of receipt of the application that
143.11the application is being suspended pending receipt by the commissioner of sufficient
143.12documentation from the applicant to determine eligibility.

143.13    Sec. 9. Minnesota Statutes 2016, section 197.791, subdivision 5, is amended to read:
143.14    Subd. 5. Benefit Educational assistance amount. (a) On approval by the commissioner
143.15of eligibility for the program, the applicant shall be awarded, on a funds-available basis,
143.16the educational assistance under the program for use at any time according to program rules
143.17at any eligible institution.
143.18    (b) The amount of educational assistance in any semester or term for an eligible person
143.19must be determined by subtracting from the eligible person's cost of attendance the amount
143.20the person received or was eligible to receive in that semester or term from:
143.21    (1) the federal Pell Grant;
143.22    (2) the state grant program under section 136A.121; and
143.23    (3) any federal military or veterans educational benefits including but not limited to the
143.24Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, vocational
143.25rehabilitation benefits, and any other federal benefits associated with the person's status as
143.26a veteran, except veterans disability payments from the United States Veterans Administration
143.27and payments made under the Veterans Retraining Assistance Program (VRAP).
143.28    (c) The amount of educational assistance for any eligible person who is a full-time
143.29student must not exceed the following:
143.30    (1) $1,000 per semester or term of enrollment;
143.31    (2) (1) $3,000 per state fiscal year; and
143.32    (3) (2) $10,000 in a lifetime.
144.1(d) A person eligible under this subdivision may use the benefit amounts for the following
144.2purposes:
144.3(1) licensing or certification tests, the successful completion of which demonstrates an
144.4individual's possession of the knowledge or skill required to enter into, maintain, or advance
144.5in employment in a predetermined and identified vocation or profession, provided that the
144.6tests and the licensing or credentialing organizations or entities that offer the tests are
144.7approved by the commissioner;
144.8(2) tests for admission to institutions of higher learning or graduate schools;
144.9(3) national tests providing an opportunity for course credit at institutions of higher
144.10learning;
144.11(4) a preparatory course for a test that is required or used for admission to an institution
144.12of higher education or a graduate program; and
144.13(5) any fee associated with the pursuit of a professional or educational objective specified
144.14in clauses (1) to (4).
144.15(e) If an eligible person receives benefits under subdivision 5, the eligible person's
144.16aggregate benefits under this subdivision and subdivision 5 must not exceed $10,000 in the
144.17eligible person's lifetime.
144.18(f) If an eligible person receives benefits under subdivision 5a, the eligible person's
144.19aggregate benefits under this subdivision and subdivision 5a must not exceed $10,000 in
144.20the eligible person's lifetime.
144.21    For a part-time student, the amount of educational assistance must not exceed $500 per
144.22semester or term of enrollment. For the purpose of this paragraph, a part-time undergraduate
144.23student is a student taking fewer than 12 credits or the equivalent for a semester or term of
144.24enrollment and a part-time graduate student is a student considered part time by the eligible
144.25institution the graduate student is attending. The minimum award for undergraduate and
144.26graduate students is $50 per term.

144.27    Sec. 10. Minnesota Statutes 2016, section 197.791, subdivision 5a, is amended to read:
144.28    Subd. 5a. Apprenticeship and on-the-job training. (a) The commissioner, in
144.29consultation with the commissioners of employment and economic development and labor
144.30and industry, shall develop and implement an apprenticeship and on-the-job training program
144.31to administer a portion of the Minnesota GI Bill program to pay benefit amounts to eligible
144.32applicants persons, as provided in this subdivision.
145.1(b) An "eligible employer" means an employer operating a qualifying apprenticeship or
145.2on-the-job training program that has been approved by the commissioner.
145.3(c) A person is eligible for apprenticeship and on-the-job training assistance under this
145.4subdivision if the person meets the criteria established under subdivision 4, paragraphs
145.5paragraph (a), clause (1), and (c) to (e). The commissioner may determine eligibility as
145.6provided in subdivision 4, paragraph (c), and may deny or terminate benefits as prescribed
145.7under subdivision 4, paragraphs (d) and (e). The amount of assistance paid to or on behalf
145.8of an eligible individual under this subdivision must not exceed the following:
145.9(1) $2,000 $3,000 per fiscal year for apprenticeship expenses;
145.10(2) $2,000 $3,000 per fiscal year for on-the-job training;
145.11(3) $1,000 for a job placement credit payable to an eligible employer upon hiring and
145.12completion of six consecutive months' employment of a person receiving assistance under
145.13this subdivision; and
145.14(4) $1,000 for a job placement credit payable to an eligible employer after a person
145.15receiving assistance under this subdivision has been employed by the eligible employer for
145.16at least 12 consecutive months as a full-time employee.
145.17No more than $3,000 $5,000 in aggregate benefits under this paragraph may be paid to or
145.18on behalf of an individual in one fiscal year, and not more than $9,000 $10,000 in aggregate
145.19benefits under this paragraph may be paid to or on behalf of an individual over any period
145.20of time.
145.21(d) Assistance for apprenticeship expenses and on-the-job training is available for
145.22qualifying programs, which must, at a minimum, meet the following criteria:
145.23(1) the training must be with an eligible employer;
145.24(2) the training must be documented and reported;
145.25(3) the training must reasonably be expected to lead to an entry-level position; and
145.26(4) the position must require at least six months of training to become fully trained.

145.27ARTICLE 6
145.28CAMPAIGN FINANCE AND ELECTIONS

145.29    Section 1. Minnesota Statutes 2016, section 10A.01, subdivision 12, is amended to read:
145.30    Subd. 12. Depository. "Depository" means a bank, savings association, or credit union
145.31organized under federal or state law and transacting business within this state. The
146.1depositories of a political committee or political fund include any depository in which the
146.2committee or fund has a savings, checking, or similar account, or purchases a money market
146.3certificate or certificate of deposit.

146.4    Sec. 2. Minnesota Statutes 2016, section 10A.01, subdivision 16, is amended to read:
146.5    Subd. 16. Election cycle. "Election cycle" means the period from January 1 following
146.6a general election for an office to December 31 following the next general election for that
146.7office, except that "election cycle" for a special election means the period from the date the
146.8special election writ is issued to 60 15 days after the special election is held. For a regular
146.9election, the period from January 1 of the year prior to an election year through December
146.1031 of the election year is the "election segment" of the election cycle. Each other two-year
146.11segment of an election cycle is a "nonelection segment" of the election cycle. An election
146.12cycle that consists of two calendar years has only an election segment. The election segment
146.13of a special election cycle includes the entire special election cycle.
146.14EFFECTIVE DATE.This section is effective the day following final enactment and
146.15applies to any special election cycle that starts on or after that date.

146.16    Sec. 3. Minnesota Statutes 2016, section 10A.01, subdivision 26, is amended to read:
146.17    Subd. 26. Noncampaign disbursement. "Noncampaign disbursement" means a purchase
146.18or payment of money or anything of value made, or an advance of credit incurred, or a
146.19donation in kind received, by a principal campaign committee for any of the following
146.20purposes:
146.21    (1) payment for accounting and legal services;
146.22    (2) return of a contribution to the source;
146.23    (3) repayment of a loan made to the principal campaign committee by that committee;
146.24    (4) return of a public subsidy;
146.25    (5) (4) payment for food, beverages, and necessary utensils and supplies, entertainment,
146.26and facility rental for a fund-raising event;
146.27    (6) (5) services for a constituent by a member of the legislature or a constitutional officer
146.28in the executive branch, including the costs of preparing and distributing a suggestion or
146.29idea solicitation to constituents, performed from the beginning of the term of office to
146.30adjournment sine die of the legislature in the election year for the office held, and half the
146.31cost of services for a constituent by a member of the legislature or a constitutional officer
147.1in the executive branch performed from adjournment sine die to 60 days after adjournment
147.2sine die;
147.3    (7) (6) payment for food and beverages consumed by a candidate or volunteers while
147.4they are engaged in campaign activities;
147.5    (8) (7) payment for food or a beverage consumed while attending a reception or meeting
147.6directly related to legislative duties;
147.7    (9) (8) payment of expenses incurred by elected or appointed leaders of a legislative
147.8caucus in carrying out their leadership responsibilities;
147.9    (10) (9) payment by a principal campaign committee of the candidate's expenses for
147.10serving in public office, other than for personal uses;
147.11    (11) (10) costs of child care for the candidate's children when campaigning;
147.12    (12) (11) fees paid to attend a campaign school;
147.13    (13) (12) costs of a postelection party during the election year when a candidate's name
147.14will no longer appear on a ballot or the general election is concluded, whichever occurs
147.15first;
147.16    (14) (13) interest on loans paid by a principal campaign committee on outstanding loans;
147.17    (15) (14) filing fees;
147.18    (16) (15) post-general election holiday or seasonal cards, thank-you notes, or
147.19advertisements in the news media mailed or published prior to the end of the election cycle;
147.20    (17) (16) the cost of campaign material purchased to replace defective campaign material,
147.21if the defective material is destroyed without being used;
147.22    (18) (17) contributions to a party unit;
147.23    (19) (18) payments for funeral gifts or memorials;
147.24    (20) (19) the cost of a magnet less than six inches in diameter containing legislator
147.25contact information and distributed to constituents;
147.26    (21) (20) costs associated with a candidate attending a political party state or national
147.27convention in this state;
147.28    (22) (21) other purchases or payments specified in board rules or advisory opinions as
147.29being for any purpose other than to influence the nomination or election of a candidate or
147.30to promote or defeat a ballot question; and
148.1(23) (22) costs paid to a third party for processing contributions made by a credit card,
148.2debit card, or electronic check.
148.3    The board must determine whether an activity involves a noncampaign disbursement
148.4within the meaning of this subdivision.
148.5    A noncampaign disbursement is considered to be made in the year in which the candidate
148.6made the purchase of goods or services or incurred an obligation to pay for goods or services.
148.7EFFECTIVE DATE.This section is effective July 1, 2017, and applies to elections
148.8held on or after that date.

148.9    Sec. 4. Minnesota Statutes 2016, section 10A.02, subdivision 13, is amended to read:
148.10    Subd. 13. Rules. (a) Chapter 14 applies to the board. The board may adopt rules to carry
148.11out the purposes of this chapter, if, before June 1, 2017, the board has published a notice
148.12of intent to adopt a rule without public hearing under section 14.22, subdivision 1, paragraph
148.13(a); 14.389, subdivision 2; or 14.3895, subdivision 3; a dual notice under section 14.22,
148.14subdivision 2; or a notice of hearing on a proposed rule under section 14.14.
148.15(b) After May 31, 2017, the board may only adopt rules that (1) incorporate specific
148.16changes set forth in applicable statutes when no interpretation of law is required, or (2)
148.17make changes to rules that do not alter the sense, meaning, or effect of a rule.
148.18(c) In addition to the notice required under chapter 14, the board shall notify the chairs
148.19and ranking minority members of the committees or subcommittees in the senate and house
148.20of representatives with primary jurisdiction over elections within seven calendar days of
148.21taking the following actions:
148.22(1) publication of a notice of intent to adopt rules or a notice of hearing;
148.23(2) publication of proposed rules in the State Register;
148.24(3) issuance of a statement of need and reasonableness; or
148.25(4) adoption of final rules.
148.26EFFECTIVE DATE.This section is effective the day following final enactment for
148.27rules for which a notice of intent to adopt a rule without public hearing under Minnesota
148.28Statutes, section 14.22, subdivision 1, paragraph (a); 14.389, subdivision 2; or 14.3895,
148.29subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a
148.30notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published
148.31before June 1, 2017.

149.1    Sec. 5. Minnesota Statutes 2016, section 10A.025, subdivision 1a, is amended to read:
149.2    Subd. 1a. Electronic filing. (a) A report or statement required to be filed under this
149.3chapter may be filed electronically. The board shall adopt rules to regulate on the technical
149.4aspects of regulating electronic filing and to ensure ensuring that the electronic filing process
149.5is secure.
149.6(b) A document filed by facsimile transmission or electronic filing system has the same
149.7force and effect as filing an original paper document.
149.8(c) In order to provide a secure environment for the submission of electronic files, the
149.9board must require that a filer use a personal identification code when submitting an
149.10electronic file. The board may also request the filer to provide a valid e-mail address in
149.11order to receive confirmation and verification messages from the board.
149.12(d) After an electronic file is processed by the board, the information contained in the
149.13electronic file becomes the property of the state subject to the terms of the Data Practices
149.14Act under chapter 13.
149.15(e) In the case of a filing by facsimile transmission, the filer must retain the original of
149.16the filed document and a record of the date and time of the transmission. If an electronic
149.17filing system is used to submit an electronic file to the board, the filer must retain as
149.18documentation the database and information on which the electronic submission of data is
149.19based. The database and records are subject to audit as provided in this chapter.
149.20(f) Within five days of a request by the board, any person filing a document by facsimile
149.21transmission or electronic filing system shall refile the document by one of the other filing
149.22methods provided in Minnesota Rules, part 4501.0500, subpart 1.
149.23(g) Technical problems that prevent the successful submission of a facsimile transmission
149.24or electronic file do not relieve the filer of the responsibility of meeting the requirements
149.25of this chapter. An audit trail that demonstrates that the facsimile transmission or electronic
149.26file was successfully submitted in a timely fashion may be used by the board to waive late
149.27filing fees.

149.28    Sec. 6. Minnesota Statutes 2016, section 10A.04, is amended by adding a subdivision to
149.29read:
149.30    Subd. 9. Reporting by multiple lobbyists representing the same entity. Clauses (1)
149.31to (6) apply when a single individual, association, political subdivision, or public higher
149.32education system is represented by more than one lobbyist.
150.1(1) The entity must appoint one designated lobbyist to report lobbyist disbursements
150.2made by the entity. The designated lobbyist must indicate that status on the periodic reports
150.3of lobbyist disbursements.
150.4(2) A reporting lobbyist may consent to report on behalf of one or more other lobbyists
150.5for the same entity, in which case, the other lobbyists are persons whose activities the
150.6reporting lobbyist must disclose and are subject to the disclosure requirements of subdivision
150.73. Lobbyist disbursement reports filed by a reporting lobbyist must include the names and
150.8registration numbers of the other lobbyists whose activities are included in the report.
150.9(3) Lobbyists whose activities are accounted for by a reporting lobbyist are not required
150.10to file lobbyist disbursement reports.
150.11(4) A lobbyist whose lobbying disbursements are provided to the board through a
150.12reporting lobbyist must supply all relevant information on disbursements to the reporting
150.13lobbyist no later than five days before the prescribed filing date.
150.14(5) The reporting periods and due dates for a reporting lobbyist are those provided in
150.15subdivision 2. The late filing provisions in subdivision 5 apply to reports required by this
150.16subdivision.
150.17(6) The reporting lobbyist must indicate the names and registration numbers of any
150.18lobbyists who did not provide their lobbying disbursements for inclusion in a report. The
150.19late filing provisions in subdivision 5 apply to lobbyists who fail to report information to
150.20the reporting lobbyist.

150.21    Sec. 7. Minnesota Statutes 2016, section 10A.071, subdivision 1, is amended to read:
150.22    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.
150.23(b) "Gift" means money, real or personal property, a service, a loan, a forbearance or
150.24forgiveness of indebtedness, or a promise of future employment, that is given and received
150.25without the giver receiving consideration of equal or greater value in return.
150.26(c) "Official" means a public official, an employee of the legislature, or a local official
150.27of a metropolitan governmental unit.
150.28(d) "Plaque" means a decorative item with an inscription recognizing an individual for
150.29an accomplishment.

151.1    Sec. 8. Minnesota Statutes 2016, section 10A.09, subdivision 5, is amended to read:
151.2    Subd. 5. Form. (a) A statement of economic interest required by this section must be
151.3on a form prescribed by the board. The individual filing must provide the following
151.4information:
151.5(1) name, address, occupation, and principal place of business;
151.6(2) the name of each associated business and the nature of that association;
151.7(3) a listing of all real property within the state, excluding homestead property, in which
151.8the individual holds: (i) a fee simple interest, a mortgage, a contract for deed as buyer or
151.9seller, or an option to buy, whether direct or indirect, if the interest is valued in excess of
151.10$2,500; or (ii) an option to buy, if the property has a fair market value of more than $50,000;
151.11(4) a listing of all real property within the state in which a partnership of which the
151.12individual is a member holds: (i) a fee simple interest, a mortgage, a contract for deed as
151.13buyer or seller, or an option to buy, whether direct or indirect, if the individual's share of
151.14the partnership interest is valued in excess of $2,500; or (ii) an option to buy, if the property
151.15has a fair market value of more than $50,000. A listing under this clause or clause (3) must
151.16indicate the street address and the municipality or the section, township, range and
151.17approximate acreage, whichever applies, and the county in which the property is located;
151.18(5) a listing of any investments, ownership, or interests in property connected with
151.19pari-mutuel horse racing in the United States and Canada, including a racehorse, in which
151.20the individual directly or indirectly holds a partial or full interest or an immediate family
151.21member holds a partial or full interest;
151.22(6) a listing of the principal business or professional activity category of each business
151.23from which the individual receives more than $50 in any month as an employee, if the
151.24individual has an ownership interest of 25 percent or more in the business; and
151.25(7) a listing of each principal business or professional activity category from which the
151.26individual received compensation of more than $2,500 in the past 12 months as an
151.27independent contractor.; and
151.28(8) the full name of each security with a value of more than $2,500 owned in part or in
151.29full by the public official at any time during the reporting period.
151.30(b) The business or professional categories for purposes of paragraph (a), clauses (6)
151.31and (7), must be the general topic headings used by the federal Internal Revenue Service
151.32for purposes of reporting self-employment income on Schedule C. This paragraph does not
151.33require an individual to report any specific code number from that schedule. Any additional
152.1principal business or professional activity category may only be adopted if the category is
152.2enacted by law.
152.3(c) For the purpose of an original statement of economic interest, "compensation in any
152.4month" includes only compensation received in the calendar month immediately preceding
152.5the date of appointment as a public official or filing as a candidate.
152.6(d) For the purpose of calculating the amount of compensation received from any single
152.7source in a single month, the amount shall include the total amount received from the source
152.8during the month, whether or not the amount covers compensation for more than one month.

152.9    Sec. 9. Minnesota Statutes 2016, section 10A.09, subdivision 6, is amended to read:
152.10    Subd. 6. Annual statement. (a) Each individual who is required to file a statement of
152.11economic interest must also file an annual statement by the last Monday in January of each
152.12year that the individual remains in office. The annual statement must cover the period
152.13through December 31 of the year prior to the year when the statement is due. The annual
152.14statement must include the amount of each honorarium in excess of $50 received since the
152.15previous statement and the name and address of the source of the honorarium. The board
152.16must maintain each annual statement of economic interest submitted by an officeholder in
152.17the same file with the statement submitted as a candidate.
152.18(b) For the purpose of annual statements of economic interest to be filed, "compensation
152.19in any month" includes compensation and honoraria received in any month between the
152.20end of the period covered in the preceding statement of economic interest and the end of
152.21the current period.
152.22(c) An individual must file the annual statement of economic interest required by this
152.23subdivision to cover the period for which the individual served as a public official even
152.24though at the time the statement was filed, the individual is no longer holding that office as
152.25a public official.

152.26    Sec. 10. Minnesota Statutes 2016, section 10A.105, subdivision 1, is amended to read:
152.27    Subdivision 1. Single committee. A candidate must not accept contributions from a
152.28source, other than self, in aggregate in excess of $750 or accept a public subsidy unless the
152.29candidate designates and causes to be formed a single principal campaign committee for
152.30each office sought. A candidate may not authorize, designate, or cause to be formed any
152.31other political committee bearing the candidate's name or title or otherwise operating under
153.1the direct or indirect control of the candidate. However, a candidate may be involved in the
153.2direct or indirect control of a party unit.
153.3EFFECTIVE DATE.This section is effective July 1, 2017, and applies to elections
153.4held on or after that date.

153.5    Sec. 11. Minnesota Statutes 2016, section 10A.15, subdivision 1, is amended to read:
153.6    Subdivision 1. Anonymous contributions. A political committee, political fund, principal
153.7campaign committee, or party unit may not retain an anonymous contribution in excess of
153.8$20, but must forward it to the board for deposit in the general account of the state elections
153.9campaign account fund.

153.10    Sec. 12. Minnesota Statutes 2016, section 10A.15, is amended by adding a subdivision to
153.11read:
153.12    Subd. 6. Contributions from Hennepin County registered associations. In lieu of
153.13registration with the board, an association registered with the Hennepin County filing officer
153.14under sections 383B.041 to 383B.058 that makes contributions of more than $500 to a
153.15committee or fund in a calendar year may notify the recipient committee of its registration
153.16with Hennepin County, including its registration number, and instruct the recipient committee
153.17to include the notice when the recipient committee discloses receipt of the contribution.

153.18    Sec. 13. [10A.155] VALUE OF CONTRIBUTIONS OF AUTOMOBILE USE.
153.19Automobile use provided to a committee by an individual may be valued at the lowest
153.20rate used by the state to reimburse its employees for automobile use. Alternatively, the value
153.21of the automobile may be calculated as the actual cost of fuel, maintenance, repairs, and
153.22insurance directly related to the use of the automobile. An automobile provided by an
153.23association must be valued at the fair market value for renting an equivalent automobile.

153.24    Sec. 14. Minnesota Statutes 2016, section 10A.20, subdivision 3, is amended to read:
153.25    Subd. 3. Contents of report. (a) The report required by this section must include each
153.26of the items listed in paragraphs (b) to (o) (q) that are applicable to the filer. The board shall
153.27prescribe forms based on filer type indicating which of those items must be included on the
153.28filer's report.
153.29(b) The report must disclose the amount of liquid assets on hand at the beginning of the
153.30reporting period.
154.1(c) The report must disclose the name, address, employer, or occupation if self-employed,
154.2and registration number if registered with the board, of each individual or association that
154.3has made one or more contributions to the reporting entity, including the purchase of tickets
154.4for a fund-raising effort, that in aggregate within the year exceed $200 for legislative or
154.5statewide candidates or more than $500 for ballot questions, together with the amount and
154.6date of each contribution, and the aggregate amount of contributions within the year from
154.7each source so disclosed. A donation in kind must be disclosed at its fair market value. An
154.8approved expenditure must be listed as a donation in kind. A donation in kind is considered
154.9consumed in the reporting period in which it is received. The names of contributors must
154.10be listed in alphabetical order. Contributions from the same contributor must be listed under
154.11the same name. When a contribution received from a contributor in a reporting period is
154.12added to previously reported unitemized contributions from the same contributor and the
154.13aggregate exceeds the disclosure threshold of this paragraph, the name, address, and
154.14employer, or occupation if self-employed, of the contributor must then be listed on the
154.15report.
154.16(d) The report must disclose the sum of contributions to the reporting entity during the
154.17reporting period.
154.18(e) The report must disclose each loan made or received by the reporting entity within
154.19the year in aggregate in excess of $200, continuously reported until repaid or forgiven,
154.20together with the name, address, occupation, principal place of business, if any, and
154.21registration number if registered with the board of the lender and any endorser and the date
154.22and amount of the loan. If a loan made to the principal campaign committee of a candidate
154.23is forgiven or is repaid by an entity other than that principal campaign committee, it must
154.24be reported as a contribution for the year in which the loan was made.
154.25(f) The report must disclose each receipt over $200 during the reporting period not
154.26otherwise listed under paragraphs (c) to (e).
154.27(g) The report must disclose the sum of all receipts of the reporting entity during the
154.28reporting period.
154.29(h) The report must disclose the name, address, and registration number if registered
154.30with the board of each individual or association to whom aggregate expenditures, approved
154.31expenditures, independent expenditures, and ballot question expenditures have been made
154.32by or on behalf of the reporting entity within the year in excess of $200, together with the
154.33amount, date, and purpose of each expenditure and the name and address of, and office
154.34sought by, each candidate on whose behalf the expenditure was made, identification of the
155.1ballot question that the expenditure was intended to promote or defeat and an indication of
155.2whether the expenditure was to promote or to defeat the ballot question, and in the case of
155.3independent expenditures made in opposition to a candidate, the candidate's name, address,
155.4and office sought. A reporting entity making an expenditure on behalf of more than one
155.5candidate for state or legislative office must allocate the expenditure among the candidates
155.6on a reasonable cost basis and report the allocation for each candidate.
155.7(i) The report must disclose the sum of all expenditures made by or on behalf of the
155.8reporting entity during the reporting period.
155.9(j) The report must disclose the amount and nature of an advance of credit incurred by
155.10the reporting entity, continuously reported until paid or forgiven. If an advance of credit
155.11incurred by the principal campaign committee of a candidate is forgiven by the creditor or
155.12paid by an entity other than that principal campaign committee, it must be reported as a
155.13donation in kind for the year in which the advance of credit was made.
155.14(k) The report must disclose the name, address, and registration number if registered
155.15with the board of each political committee, political fund, principal campaign committee,
155.16or party unit to which contributions have been made that aggregate in excess of $200 within
155.17the year and the amount and date of each contribution.
155.18(l) The report must disclose the sum of all contributions made by the reporting entity
155.19during the reporting period.
155.20(m) The report must disclose the name, address, and registration number if registered
155.21with the board of each individual or association to whom noncampaign disbursements have
155.22been made that aggregate in excess of $200 within the year by or on behalf of the reporting
155.23entity and the amount, date, and purpose of each noncampaign disbursement.
155.24(n) The report must disclose the sum of all noncampaign disbursements made within
155.25the year by or on behalf of the reporting entity.
155.26(o) The report must disclose the name and address of a nonprofit corporation that provides
155.27administrative assistance to a political committee or political fund as authorized by section
155.28211B.15, subdivision 17 , the type of administrative assistance provided, and the aggregate
155.29fair market value of each type of assistance provided to the political committee or political
155.30fund during the reporting period.
155.31(p) Legislative, statewide, and judicial candidates, party units, and political committees
155.32and funds must itemize contributions that in aggregate within the year exceed $200 for
155.33legislative or statewide candidates or more than $500 for ballot questions on reports submitted
156.1to the board. The itemization must include the date on which the contribution was received,
156.2the individual or association that provided the contribution, and the address of the contributor.
156.3Additionally, the itemization for a donation in kind must provide a description of the item
156.4or service received. Contributions that are less than the itemization amount must be reported
156.5as an aggregate total.
156.6(q) Legislative, statewide, and judicial candidates, party units, political committees and
156.7funds, and committees to promote or defeat a ballot question must itemize expenditures and
156.8noncampaign disbursements that in aggregate exceed $200 in a calendar year on reports
156.9submitted to the board. The itemization must include the date on which the committee made
156.10or became obligated to make the expenditure or disbursement, the name and address of the
156.11vendor that provided the service or item purchased, and a description of the service or item
156.12purchased. Expenditures and noncampaign disbursements must be listed on the report
156.13alphabetically by vendor.

156.14    Sec. 15. Minnesota Statutes 2016, section 10A.20, subdivision 15, is amended to read:
156.15    Subd. 15. Equitable relief. A candidate whose opponent does not timely file the report
156.16due 15 days before the primary, or the report due ten days before the general election, or
156.17the notice required under section 10A.25, subdivision 10, may petition the district court for
156.18immediate equitable relief to enforce the filing requirement. A prevailing party under this
156.19subdivision may be awarded attorney fees and costs by the court.

156.20    Sec. 16. Minnesota Statutes 2016, section 10A.245, subdivision 2, is amended to read:
156.21    Subd. 2. Termination by board. The board may terminate the registration of a principal
156.22campaign committee, party unit, political committee, or political fund found to be inactive
156.23under this section 60 days after sending written notice of inactivity by certified mail to the
156.24affected association at the last address on record with the board for that association. Within
156.2560 days after the board sends notice under this section, the affected association must dispose
156.26of its assets as provided in this subdivision. The assets of the principal campaign committee,
156.27party unit, or political committee must be used for the purposes authorized by this chapter
156.28or section 211B.12 or must be liquidated and deposited in the general account of the state
156.29elections campaign account fund. The assets of an association's political fund that were
156.30derived from the association's general treasury money revert to the association's general
156.31treasury. Assets of a political fund that resulted from contributions to the political fund must
156.32be used for the purposes authorized by this chapter or section 211B.12 or must be liquidated
156.33and deposited in the general account of the state elections campaign account fund.

157.1    Sec. 17. Minnesota Statutes 2016, section 10A.25, subdivision 1, is amended to read:
157.2    Subdivision 1. Limits are voluntary. The expenditure limits imposed by this section
157.3apply only to a candidate who has signed an agreement a pledge under section 10A.322 to
157.4be bound by them as a condition of receiving a public subsidy for the candidate's campaign.

157.5    Sec. 18. Minnesota Statutes 2016, section 10A.25, subdivision 2, is amended to read:
157.6    Subd. 2. Amounts. (a) In a segment of an election cycle, the principal campaign
157.7committee of the candidate must not make campaign expenditures nor permit approved
157.8expenditures to be made on behalf of the candidate that result in aggregate expenditures in
157.9excess of the following:
157.10(1) for governor and lieutenant governor, running together, $3,651,200 in the election
157.11segment and $1,564,800 in the nonelection segment;
157.12(2) for attorney general, $626,000 in the election segment and $208,700 in the nonelection
157.13segment;
157.14(3) for secretary of state and state auditor, separately, $417,300 in the election segment
157.15and $104,400 in the nonelection segment;
157.16(4) for state senator, $94,700 in the election segment and $31,600 in a nonelection
157.17segment;
157.18(5) for state representative, $63,100 in the election segment.
157.19(b) In addition to the amount in paragraph (a), clause (1), a candidate for endorsement
157.20for the office of lieutenant governor at the convention of a political party may make campaign
157.21expenditures and approved expenditures of five percent of that amount to seek endorsement.
157.22(c) If a special election cycle occurs during a general election cycle, expenditures by or
157.23on behalf of a candidate in the special election do not count as expenditures by or on behalf
157.24of the candidate in the general election.
157.25(d) The expenditure limits in this subdivision for an office are increased by ten percent
157.26for a candidate who has not previously held the same office, whose name has not previously
157.27been on the primary or general election ballot for that office, and who has not in the past
157.28ten years raised or spent more than $750 in a run for any other office whose territory now
157.29includes a population that is more than one-third of the population in the territory of the
157.30new office. Candidates who qualify for first-time candidate status receive a ten percent
157.31increase in the campaign expenditure limit in all segments of the applicable election cycle.
158.1In the case of a legislative candidate, the office is that of a member of the house of
158.2representatives or senate without regard to any specific district.

158.3    Sec. 19. Minnesota Statutes 2016, section 10A.25, subdivision 10, is amended to read:
158.4    Subd. 10. Effect of opponent's conduct. (a) After the deadline for filing a spending
158.5limit agreement pledge under section 10A.322, a candidate who has agreed pledged to be
158.6bound by the expenditure limits imposed by this section as a condition of receiving a public
158.7subsidy for the candidate's campaign may choose to be released from the expenditure limits
158.8but remain eligible to receive a public subsidy if the candidate has an opponent who has
158.9not agreed pledged to be bound by the limits and has received contributions or made or
158.10become obligated to make expenditures during that election cycle in excess of the following
158.11limits:
158.12(1) up to the close of the reporting period before the primary election, receipts or
158.13expenditures equal to 20 percent of the election segment expenditure limit for that office
158.14as set forth in subdivision 2; or
158.15(2) after the close of the reporting period before the primary election, cumulative receipts
158.16or expenditures during that election cycle equal to 50 percent of the election cycle expenditure
158.17limit for that office as set forth in subdivision 2.
158.18Before the primary election, a candidate's "opponents" are only those who will appear
158.19on the ballot of the same party in the primary election.
158.20(b) A candidate who has not agreed pledged to be bound by expenditure limits, or the
158.21candidate's principal campaign committee, must file written notice with the board and
158.22provide written notice to any opponent of the candidate for the same office within 24 hours
158.23of exceeding the limits in paragraph (a). The notice must state only that the candidate or
158.24candidate's principal campaign committee has received contributions or made or become
158.25obligated to make campaign expenditures in excess of the limits in paragraph (a).
158.26(c) Upon receipt of the notice, a candidate who had agreed pledged to be bound by the
158.27limits may file with the board a notice that the candidate chooses to be no longer bound by
158.28the expenditure limits. A notice of a candidate's choice not to be bound by the expenditure
158.29limits that is based on the conduct of an opponent in the state primary election may not be
158.30filed more than one day after the State Canvassing Board has declared the results of the
158.31state primary.
158.32(d) A candidate who has agreed pledged to be bound by the expenditure limits imposed
158.33by this section and whose opponent in the general election has chosen, as provided in
159.1paragraph (c), not to be bound by the expenditure limits because of the conduct of an
159.2opponent in the primary election is no longer bound by the limits but remains eligible to
159.3receive a public subsidy.

159.4    Sec. 20. Minnesota Statutes 2016, section 10A.257, subdivision 1, is amended to read:
159.5    Subdivision 1. Unused funds. For election cycles ending on or before December 31,
159.62018, after all campaign expenditures and noncampaign disbursements for an election cycle
159.7have been made, an amount up to 25 percent of the 2016 election cycle expenditure limit
159.8for the office may be carried forward. Any remaining amount up to the total amount of the
159.92016 public subsidy from the state elections campaign fund must be returned to the state
159.10treasury for credit to the general fund under Minnesota Statutes 2016, section 10A.324. Any
159.11remaining amount in excess of the total 2016 public subsidy must be contributed to the state
159.12elections campaign account or a political party for multicandidate expenditures as defined
159.13in section 10A.275.
159.14EFFECTIVE DATE.This section is effective July 1, 2017, and applies to elections
159.15held on or after that date.

159.16    Sec. 21. Minnesota Statutes 2016, section 10A.27, subdivision 10, is amended to read:
159.17    Subd. 10. Limited personal contributions. A candidate who signs an agreement a
159.18pledge under section 10A.322 may not contribute to the candidate's own campaign during
159.19a segment of an election cycle more than five times the candidate's contribution limit for
159.20that segment under subdivision 1.

159.21    Sec. 22. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
159.22read:
159.23    Subd. 11a. Contributions from the sale of goods or services. Proceeds from the sale
159.24of goods or services by a political committee must be reported as a contribution to that
159.25committee, as provided in section 10A.13. A political committee selling goods or services
159.26must disclose to each purchaser, prior to a sale, that proceeds may be used to make a
159.27contribution to an independent expenditure political committee or fund, or may be used by
159.28the committee for other political purposes as authorized by law, and must offer the purchaser
159.29an opportunity to review the committee's most recent report submitted to the board under
159.30section 10A.20. A copy of the report must be clearly posted in a conspicuous location on
159.31at least 8.5-inch by 11-inch sized paper and available for public inspection at the point of
159.32sale.

160.1    Sec. 23. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
160.2read:
160.3    Subd. 16a. Return of contributions after merger of governor and lieutenant governor
160.4funds. Funds transferred to the joint committee for candidates for governor and lieutenant
160.5governor that result in aggregate contributions in excess of the applicable limits may be
160.6returned to the contributor within 90 days of the transfer of funds to the joint committee.

160.7    Sec. 24. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
160.8read:
160.9    Subd. 16b. Special election contribution limits. Election segment contribution limits
160.10set forth in this section apply to a special election cycle.

160.11    Sec. 25. Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to
160.12read:
160.13    Subd. 16c. Contribution limits apply independently. Contribution limits apply
160.14independently for election segments, nonelection segments, and special election cycles.

160.15    Sec. 26. Minnesota Statutes 2016, section 10A.28, subdivision 3, is amended to read:
160.16    Subd. 3. Conciliation agreement. If the board finds that there is reason to believe that
160.17excess expenditures have been made or excess contributions have been accepted contrary
160.18to subdivision 1 or 2, the board must make every effort for a period of at least 14 days after
160.19its finding to correct the matter by informal methods of conference and conciliation and to
160.20enter a conciliation agreement with the person involved. A conciliation agreement under
160.21this subdivision is a matter of public record. Unless violated, a conciliation agreement is a
160.22bar to any civil proceeding under subdivision 4.

160.23    Sec. 27. Minnesota Statutes 2016, section 10A.31, is amended by adding a subdivision to
160.24read:
160.25    Subd. 7b. Failure to repay. A candidate who fails to repay money required by the
160.26agreement cannot be paid additional public subsidy funds during the current or future election
160.27cycles until the entirety of the unexpended funds and any associated collection fees are
160.28either repaid to the board or discharged by court action.

161.1    Sec. 28. Minnesota Statutes 2016, section 10A.322, subdivision 1, is amended to read:
161.2    Subdivision 1. Agreement Pledge by candidate. (a) As a condition of receiving a public
161.3subsidy, A candidate must may sign and file with the board a written agreement pledge in
161.4which the candidate agrees that the candidate will comply with sections 10A.25; 10A.27,
161.5subdivision 10 ; 10A.324; and 10A.38 until the dissolution of the principal campaign
161.6committee of the candidate or the end of the first election cycle completed after the pledge
161.7was filed, whichever occurs first.
161.8    (b) Before the first day of filing for office, the board must forward agreement pledge
161.9forms to all filing officers. The board must also provide agreement pledge forms to candidates
161.10on request at any time. The candidate must file the agreement pledge with the board at least
161.11three weeks before the candidate's state primary. An agreement A pledge may not be filed
161.12after that date. An agreement The board must post a copy of each pledge filed by a candidate
161.13on the board's Web site. For purposes of public posting, a pledge once filed may not be
161.14rescinded.
161.15    (c) The board must notify the commissioner of revenue of any agreement signed under
161.16this subdivision.
161.17    (d) Notwithstanding paragraph (b), if a vacancy occurs that will be filled by means of
161.18a special election and the filing period does not coincide with the filing period for the general
161.19election, a candidate may sign and submit a spending limit agreement not later than the day
161.20after the close of the filing period for the special election for which the candidate filed.
161.21    (c) A pledge filed by a candidate under this subdivision is a voluntary agreement by the
161.22candidate to comply with the sections listed in paragraph (a). Compliance with the terms
161.23of a pledge, or any provisions of law cited within the pledge, may not be the subject of an
161.24advisory opinion issued under section 10A.02, subdivision 12, and is not subject to an audit,
161.25investigation, or enforcement action by the board under section 10A.02, 10A.022, or any
161.26other applicable law.

161.27    Sec. 29. Minnesota Statutes 2016, section 10A.38, is amended to read:
161.2810A.38 CAPTIONING OF CAMPAIGN ADVERTISEMENTS.
161.29    (a) This section applies to a campaign advertisement by a candidate who is governed
161.30by an agreement has filed a pledge under section 10A.322.
161.31    (b) "Campaign advertisement" means a professionally produced visual or audio recording
161.32of two minutes or less produced by the candidate for the purpose of influencing the
161.33nomination or election of a candidate.
162.1    (c) A campaign advertisement that is disseminated as an advertisement by broadcast or
162.2cable television must include closed captioning for deaf and hard-of-hearing viewers, unless
162.3the candidate has filed with the board before the advertisement is disseminated a statement
162.4setting forth the reasons for not doing so. A campaign advertisement that is disseminated
162.5as an advertisement to the public on the candidate's Web site must include closed captioning
162.6for deaf and hard-of-hearing viewers, unless the candidate has posted on the Web site a
162.7transcript of the spoken content of the advertisement or the candidate has filed with the
162.8board before the advertisement is disseminated a statement setting forth the reasons for not
162.9doing so. A campaign advertisement must not be disseminated as an advertisement by radio
162.10unless the candidate has posted on the candidate's Web site a transcript of the spoken content
162.11of the advertisement or the candidate has filed with the board before the advertisement is
162.12disseminated a statement setting forth the reasons for not doing so.

162.13    Sec. 30. VOTING EQUIPMENT GRANT.
162.14    Subdivision 1. Voting equipment grant account. A voting equipment grant program
162.15is established. The secretary of state must use money appropriated for the program to provide
162.16grants to counties and municipalities as authorized by this section. Funds appropriated for
162.17the grant are available until June 30, 2020.
162.18    Subd. 2. Authorized equipment. (a) A county or municipality may apply to receive a
162.19grant under this section for the purchase or lease of the following equipment:
162.20(1) electronic roster equipment and software that meets the technology requirements of
162.21Minnesota Statutes, section 201.225, subdivision 2;
162.22(2) assistive voting technology; or
162.23(3) automatic tabulating equipment.
162.24A purchase or lease of equipment is eligible for a grant under this section if the purchase
162.25is made, or lease entered, on or after July 1, 2017. A county or municipality that has
162.26purchased or leased eligible equipment before July 1, 2017, may apply for reimbursement.
162.27(b) The grant funds must not be used for maintenance or repair of voting equipment.
162.28    Subd. 3. Amount of grant. A county or municipal government is eligible to receive a
162.29grant equal to 75 percent of the total cost of the electronic roster equipment and software
162.30or 50 percent of the total cost for assistive voting technology or automatic tabulating
162.31equipment. The secretary of state must first award grants to counties and municipalities
162.32leasing or purchasing new equipment or software. If funds remain after awarding grants for
162.33new equipment or software, the secretary of state must use the remaining funds for grants
163.1to counties and municipalities seeking reimbursement for equipment or software already
163.2purchased.
163.3    Subd. 4. Application for grant; certification of costs. (a) To receive a grant, a county
163.4or municipality must submit an application to the secretary of state. The secretary of state
163.5shall prescribe a form for this purpose. At a minimum, the application must describe:
163.6(1) the type of equipment or software proposed for purchase or lease;
163.7(2) the expected total cost of the equipment or software, and sources of funding that will
163.8be used for the purchase or lease in addition to the grant funding provided by this section;
163.9(3) the county's or municipality's plan to address the long-term maintenance, repair, and
163.10eventual replacement costs for the equipment or software without using any funds from the
163.11grant for these purposes; and
163.12(4) any other information required by the secretary of state.
163.13(b) The secretary of state must establish:
163.14(1) a deadline for receipt of grant applications;
163.15(2) a procedure for awarding and distributing grants;
163.16(3) criteria for the fair, proportional distribution of grants if the funds do not completely
163.17cover the requests for a particular type of equipment; and
163.18(4) a process for verifying the proper use of the grants after distribution.
163.19    Subd. 5. Report to legislature. No later than January 15, 2018, and annually thereafter
163.20until the appropriations provided for grants under this section have been exhausted, the
163.21secretary of state must submit a report to the legislative committees with jurisdiction over
163.22elections policy on grants awarded by this section. The report must detail each grant awarded,
163.23including the jurisdiction, the amount of the grant, and the type of equipment or software
163.24purchased.

163.25    Sec. 31. REPEALER.
163.26    Subdivision 1. Campaign subsidy. Minnesota Statutes 2016, sections 10A.28,
163.27subdivision 1; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b,
163.28and 11; 10A.315; 10A.321; 10A.322, subdivisions 2 and 4; 10A.323; and 10A.324,
163.29subdivisions 1 and 3, and Minnesota Rules, parts 4503.1400, subparts 2, 3, 4, 5, 6, 7, 8, and
163.309; and 4503.1450, are repealed effective July 1, 2017, and apply to elections held on or after
163.31that date. Money in the account under Minnesota Statutes, section 10A.30, on June 30,
164.12017, cancels to the general fund, and amounts designated under Minnesota Statutes, section
164.210A.31, on income tax and property tax refund returns filed after June 30, 2017, are not
164.3effective and remain in the general fund.
164.4    Subd. 2. Rules. Minnesota Rules, parts 4501.0300, subpart 3; 4501.0500, subpart 2;
164.54503.0200, subpart 6; 4503.0300, subpart 4; 4503.0400, subpart 1; 4503.0500, subparts 5
164.6and 8; 4503.0700, subparts 2 and 3; 4503.1300, subpart 5; 4503.1600; 4503.1700; 4503.1800;
164.74505.0100, subpart 3; 4505.0900, subparts 2, 3, 4, 5, 6, and 7; 4511.0500, subpart 2;
164.84512.0100, subparts 2, 4, and 5; and 4525.0210, subpart 1, are repealed."
164.9Renumber the sections in sequence and correct the internal references
164.10Amend the title accordingly
164.11Delete the title and insert:
164.12"A bill for an act
164.13relating to the operation of state government; appropriating money for the
164.14legislature, governor's office, state auditor, attorney general, secretary of state,
164.15certain agencies, boards, councils, and retirement funds; changing provisions in
164.16state government operations; making technical changes to state budgeting terms;
164.17changing administrative rules provisions; changing provisions in veterans affairs,
164.18campaign finance, and elections;amending Minnesota Statutes 2016, sections
164.193.305, subdivision 1; 3.842, subdivision 4a; 3.855, subdivision 2; 3.8843,
164.20subdivision 7; 3.971, subdivisions 2, 6; 3.972, by adding a subdivision; 3.98,
164.21subdivisions 1, 4; 3.987, subdivision 1; 6.481, subdivisions 3, 6; 6.56, subdivision
164.222; 6.581, subdivision 4; 10A.01, subdivisions 12, 16, 26; 10A.02, subdivision 13;
164.2310A.025, subdivision 1a; 10A.04, by adding a subdivision; 10A.071, subdivision
164.241; 10A.09, subdivisions 5, 6; 10A.105, subdivision 1; 10A.15, subdivision 1, by
164.25adding a subdivision; 10A.20, subdivisions 3, 15; 10A.245, subdivision 2; 10A.25,
164.26subdivisions 1, 2, 10; 10A.257, subdivision 1; 10A.27, subdivision 10, by adding
164.27subdivisions; 10A.28, subdivision 3; 10A.31, by adding a subdivision; 10A.322,
164.28subdivision 1; 10A.38; 14.002; 14.02, by adding a subdivision; 14.05, subdivisions
164.291, 2, 6, 7, by adding subdivisions; 14.101, subdivision 1; 14.116; 14.125; 14.127;
164.3014.131; 14.14, subdivisions 1a, 2a; 14.18, subdivision 1; 14.19; 14.22, subdivision
164.311; 14.23; 14.25, subdivision 1; 14.26; 14.27; 14.365; 14.381, subdivision 3; 14.388,
164.32subdivisions 1, 2; 14.389, subdivision 3; 14.44; 14.45; 14.51; 14.57; 15.0596;
164.3315.191, subdivisions 1, 3; 16A.065; 16A.13, subdivision 2a; 16A.134; 16A.15,
164.34subdivision 3; 16A.17, subdivision 5; 16A.272, subdivision 3; 16A.40; 16A.42,
164.35subdivisions 2, 4, by adding a subdivision; 16A.56; 16A.671, subdivision 1; 16A.90;
164.3616B.04, subdivision 2; 16B.055, subdivision 1; 16B.335, subdivision 1; 16B.37,
164.37subdivision 4; 16B.371; 16B.4805, subdivisions 2, 4; 16B.97, by adding a
164.38subdivision; 16D.03, subdivision 2; 16D.09, subdivision 1; 16E.016; 16E.0466;
164.3921.116; 43A.17, subdivision 11; 43A.24, by adding a subdivision; 43A.30,
164.40subdivision 2; 43A.49; 49.24, subdivisions 13, 16; 69.031, subdivision 1; 80A.65,
164.41subdivision 9; 84A.23, subdivision 4; 84A.33, subdivision 4; 84A.40; 84A.52;
164.4288.12, subdivision 1; 94.522; 94.53; 116J.64, subdivision 7; 126C.55, subdivisions
164.432, 9; 126C.68, subdivision 3; 126C.69, subdivision 14; 127A.34, subdivision 1;
164.44127A.40; 136F.46, subdivision 1; 136F.70, subdivision 3; 138.69; 155A.30,
164.45subdivision 5; 162.08, subdivisions 10, 11; 162.14, subdivisions 4, 5; 162.18,
164.46subdivision 4; 162.181, subdivision 4; 163.051, subdivision 3; 176.181, subdivision
164.472; 176.581; 176.591, subdivision 3; 179A.20, by adding a subdivision; 190.19,
164.48subdivisions 2, 2a; 192.55; 196.05, subdivision 1; 196.052; 197.236, subdivision
164.499; 197.791, subdivisions 2, 3, 4, 5, 5a; 198.16; 237.30; 241.13, subdivision 1;
165.1244.19, subdivision 7; 256B.20; 260B.331, subdivision 2; 260C.331, subdivision
165.22; 270C.13, subdivision 1; 273.121, subdivision 1; 287.08; 297I.10, subdivision
165.31; 299C.21; 348.05; 352.04, subdivision 9; 352.05; 352.115, subdivision 12; 352.12,
165.4subdivision 13; 353.05; 353.27, subdivisions 3c, 7; 353.505; 354.42, subdivision
165.57; 354.52, subdivisions 4, 4b; 401.15, subdivision 1; 446A.086, subdivision 4;
165.6446A.16, subdivision 1; 462A.18, subdivision 1; 471.6161, subdivision 8; 471.617,
165.7subdivision 2; 475A.04, subdivision 1; 508.12, subdivision 1; 518A.79, by adding
165.8a subdivision; 525.841; Laws 2016, chapter 127, section 8; proposing coding for
165.9new law in Minnesota Statutes, chapters 2; 3; 6; 10A; 14; 15; 16A; 16B; 43A;
165.10118A; 197; repealing Minnesota Statutes 2016, sections 4.46; 6.581, subdivision
165.111; 10A.28, subdivision 1; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7,
165.127a, 10, 10a, 10b, 11; 10A.315; 10A.321; 10A.322, subdivisions 2, 4; 10A.323;
165.1310A.324, subdivisions 1, 3; 14.05, subdivision 5; Minnesota Rules, parts 4501.0300,
165.14subpart 3; 4501.0500, subpart 2; 4503.0200, subpart 6; 4503.0300, subpart 4;
165.154503.0400, subpart 1; 4503.0500, subparts 5, 8; 4503.0700, subparts 2, 3;
165.164503.1300, subpart 5; 4503.1400, subparts 2, 3, 4, 5, 6, 7, 8, 9; 4503.1450;
165.174503.1600; 4503.1700; 4503.1800; 4505.0100, subpart 3; 4505.0900, subparts 2,
165.183, 4, 5, 6, 7; 4511.0500, subpart 2; 4512.0100, subparts 2, 4, 5; 4525.0210, subpart
165.191."