Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2253

STATE OF MINNESOTA

 

Journal of the House

 

NINETIETH SESSION - 2017

 

_____________________

 

THIRTY-SIXTH DAY

 

Saint Paul, Minnesota, Wednesday, March 29, 2017

 

 

      The House of Representatives convened at 10:00 a.m. and was called to order by Kurt Daudt, Speaker of the House.

 

      Prayer was offered by the Reverend Ralph Olsen, Trinity Lutheran Church, Hammond, Wisconsin.

 

      The members of the House gave the pledge of allegiance to the flag of the United States of America.

 

      The roll was called and the following members were present:

 


Albright

Anderson, P.

Anderson, S.

Backer

Bahr, C.

Baker

Barr, R.

Becker-Finn

Bennett

Bernardy

Bliss

Bly

Carlson, A.

Carlson, L.

Christensen

Considine

Cornish

Daniels

Davids

Davnie

Dean, M.

Dehn, R.

Dettmer

Drazkowski

Ecklund

Erickson

Fabian

Fenton

Fischer

Franke

Franson

Freiberg

Green

Grossell

Gruenhagen

Gunther

Haley

Halverson

Hamilton

Hansen

Hausman

Heintzeman

Hertaus

Hilstrom

Hoppe

Hornstein

Hortman

Howe

Jessup

Johnson, B.

Johnson, C.

Johnson, S.

Jurgens

Kiel

Knoblach

Koegel

Koznick

Kresha

Kunesh-Podein

Layman

Lee

Lesch

Liebling

Lien

Lillie

Lohmer

Loon

Loonan

Lucero

Lueck

Mahoney

Mariani

Marquart

Masin

Maye Quade

McDonald

Metsa

Moran

Murphy, E.

Murphy, M.

Nash

Nelson

Neu

Newberger

Nornes

O'Driscoll

Olson

Omar

O'Neill

Pelowski

Peppin

Petersburg

Peterson

Pierson

Pinto

Poppe

Poston

Pryor

Pugh

Quam

Rarick

Rosenthal

Runbeck

Sandstede

Sauke

Schomacker

Schultz

Scott

Smith

Sundin

Swedzinski

Theis

Thissen

Torkelson

Uglem

Urdahl

Vogel

Ward

West

Whelan

Wills

Youakim

Zerwas

Spk. Daudt


 

      A quorum was present.

 

      Anselmo, Miller, Slocum and Wagenius were excused.

 

      Allen, Applebaum, Flanagan, Garofalo and Loeffler were excused until 11:15 a.m.  Clark was excused until 11:25 a.m. 

 

      The Chief Clerk proceeded to read the Journal of the preceding day.  There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2254

REPORTS OF STANDING COMMITTEES AND DIVISIONS

 

 

Cornish from the Committee on Public Safety and Security Policy and Finance to which was referred:

 

H. F. No. 238, A bill for an act relating to firearms; clarifying law on use of force in defense of home and person; codifying and extending Minnesota's self-defense and defense of home laws; eliminating the common law duty to retreat in cases of self-defense outside the home; expanding the boundaries of dwelling for purposes of self‑defense; creating a presumption in the case of a person entering a dwelling or occupied vehicle by stealth or force; extending the rights available to a person in that person's dwelling to a person defending against entry of that person's occupied vehicle; amending Minnesota Statutes 2016, section 609.065.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2016, section 609.065, is amended to read:

 

609.065 JUSTIFIABLE TAKING OF LIFE USE OF DEADLY FORCE IN DEFENSE OF HOME AND PERSON.

 

Subdivision 1.  Definitions.  The intentional taking of the life of another is not authorized by section 609.06, except when necessary in resisting or preventing an offense which the actor reasonably believes exposes the actor or another to great bodily harm or death, or preventing the commission of a felony in the actor's place of abode.  (a) For purposes of this section, the terms in this subdivision have the meanings given them.

 

(b) "Court order" means an order for protection issued under section 518B.01, a restraining order issued under section 609.748, a no contact order issued under section 629.75, or a substantively similar order issued by any court in this state, another state, the United States, or any subordinate jurisdiction of the United States.

 

(c) "Deadly force" means force used by an individual with the purpose of causing, or which the individual should reasonably know creates a substantial risk of causing, great bodily harm or death.  The intentional discharge of a firearm by an individual at another person, or at a vehicle in which another person is believed to be, constitutes deadly force.  A threat to cause great bodily harm or death, by the production of a weapon or otherwise, constitutes reasonable force and not deadly force, when the individual's objective is limited to creating an expectation that the individual will use deadly force only if authorized by law.

 

(d) "Dwelling" means a building defined under section 609.556, subdivision 3, an overnight stopping accommodation of any kind, or a place of abode, that an individual temporarily or permanently is occupying or intending to occupy as a habitation or home.  A dwelling includes, but is not limited to, a building or conveyance and that building's or conveyance's curtilage and any attached or adjacent deck, porch, appurtenance, or other structure, whether the building or conveyance is used temporarily or permanently for these purposes, is mobile or immobile, or is a motor vehicle, watercraft, motor home, tent, or the equivalent.

 

(e) "Forcible felony" means any crime punishable by imprisonment exceeding one year, the elements of which include the use or threatened use of physical force or a deadly weapon against the person of another including but not limited to:  murder in the first degree under section 609.185; murder in the second degree under section 609.19; manslaughter in the first degree under section 609.20; assault in the first degree under section 609.221; assault in the second degree under section 609.222; assault in the third degree under section 609.223; criminal sexual conduct in the first degree under section 609.342; criminal sexual conduct in the second degree under section 609.343; arson in the first degree under section 609.561; burglary in the first, second, and third degrees under section 609.582; robbery under sections 609.24 and 609.245; and kidnapping under section 609.25.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2255

(f) "Good faith" includes honesty in fact in the conduct of the act concerned.

 

(g) "Great bodily harm" has the meaning given in section 609.02, subdivision 8.

 

(h) "Imminent" means the actor infers from all the facts and circumstances that the course of conduct has commenced.

 

(i) "Substantial bodily harm" has the meaning given in section 609.02, subdivision 7a.

 

(j) "Vehicle" means a conveyance of any type.

 

Subd. 2.  Circumstances when authorized.  (a) The use of deadly force by an individual is justified under this section when the act is undertaken:

 

(1) to resist or prevent the commission of an act that the individual reasonably believes is a felony in the individual's dwelling;

 

(2) to resist or prevent an act that the individual reasonably believes is an offense or attempted offense that imminently exposes the individual or another person to substantial bodily harm, great bodily harm, or death; or

 

(3) to resist or prevent an act that the individual reasonably believes is the commission or imminent commission of a forcible felony.

 

(b) The use of deadly force is not authorized under this section if the individual knows that the person against whom force is being used is a licensed peace officer from this state, another state, the United States, or any subordinate jurisdiction of the United States, who is acting lawfully.

 

Subd. 3.  Degree of force; retreat.  An individual taking defensive action pursuant to subdivision 2 may use all force and means, including deadly force, that the individual in good faith believes is required to succeed in defense.  The individual may meet force with superior force when the individual's objective is defensive, the individual is not required to retreat, and the individual may continue defensive actions against an assailant until the danger has ended.

 

Subd. 4.  Presumptions.  (a) An individual using deadly force is presumed to possess a reasonable belief that there exists an imminent threat of substantial bodily harm, great bodily harm, or death to the individual or another person, if the individual knows or has reason to know that:

 

(1) the person against whom the defensive action is being taken is unlawfully entering or attempting to enter by force or by stealth, or has unlawfully entered by force or by stealth and remains within, the dwelling or occupied vehicle of the individual; or

 

(2) the person against whom the defensive action is being taken is in the process of removing, or attempting to remove, the individual or another person from the dwelling or occupied vehicle of the individual.

 

(b) An individual is not entitled to the benefit of the presumption in paragraph (a) if the individual knows that the person against whom the defensive action is being taken:

 

(1) is a lawful resident of the dwelling or a lawful possessor of the vehicle, or is otherwise lawfully permitted to enter the dwelling or vehicle; or


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2256

(2) is a person who has lawful custody of the person being removed from the dwelling or vehicle or whose removal from the dwelling or vehicle is being attempted.  A person who is prohibited by a court order from contacting another individual or from entering a dwelling or possessing a vehicle of another individual is not a lawful resident of that individual's dwelling and is not a lawful possessor of that individual's vehicle.

 

(c) An individual using defensive force is not entitled to the benefit of the presumption in paragraph (a) if the individual is presently engaged in a crime or attempting to escape from the scene of a crime, or is presently using the dwelling or occupied vehicle in furtherance of a crime.

 

(d) An individual is not entitled to the benefit of the presumption in paragraph (a) if the individual knows or has reason to know that the person against whom the defensive action is being taken is a licensed peace officer from this state, another state, the United States, or any subordinate jurisdiction of the United States, who is acting lawfully.

 

Subd. 5.  Criminal investigation; immunity from prosecution.  (a) An individual who uses force, including deadly force, according to this section or as otherwise provided by law in defense of the individual, the individual's dwelling, or another individual is justified in using such force and is immune from any criminal prosecution for that act.

 

(b) A law enforcement agency may arrest an individual using force under circumstances described in this section only after considering any claims or circumstances supporting self-defense or lawful defense of another individual.

 

Subd. 6.  Justifiable use of force; burden of proof.  In a criminal trial, when there is any evidence of justifiable use of force under this section or section 609.06, the state has the burden of proving beyond a reasonable doubt that the defendant's actions were not justifiable.

 

Subd. 7.  Short title.  This section may be cited as the "Defense of Dwelling and Person Act of 2017."

 

EFFECTIVE DATE.  This section is effective August 1, 2017, and applies to uses of deadly force occurring on or after that date."

 

Delete the title and insert:

 

"A bill for an act relating to firearms; clarifying law on use of force in defense of home and person; codifying and extending Minnesota's self-defense and defense of home laws; eliminating the common law duty to retreat in cases of self-defense outside the home; expanding the boundaries of dwelling for purposes of self-defense; creating a presumption in the case of a person entering a dwelling or occupied vehicle by stealth or force; extending the rights available to a person in that person's dwelling to a person defending against entry of that person's occupied vehicle; amending Minnesota Statutes 2016, section 609.065."

 

 

With the recommendation that when so amended the bill be placed on the General Register.

 

      The report was adopted.

 

      Pursuant to Joint Rule 2.03 and in accordance with Senate Concurrent Resolution No. 4, H. F. No. 238 was re‑referred to the Committee on Rules and Legislative Administration.

 

 

Anderson, S., from the Committee on State Government Finance to which was referred:

 

H. F. No. 691, A bill for an act relating to state government; requiring monthly reports related to the employee gainsharing system; amending Minnesota Statutes 2016, section 16A.90.

 

Reported the same back with the following amendments:


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2257

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

 

Section 1.  APPROPRIATIONS. 

 

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

 

 

 

 

APPROPRIATIONS

 

 

 

Available for the Year

 

 

 

Ending June 30

 

 

 

2018

2019

 

Sec. 2.  LEGISLATURE

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$79,858,000

 

$79,488,000

 

Appropriations by Fund

 

 

2018

2019

 

General

79,730,000

79,360,000

Health Care Access

128,000

128,000

 

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

 

Subd. 2.  Senate

 

29,849,000

 

29,655,000

 

$3,124,000 of the senate carryforward balance is canceled to the general fund on July 1, 2017.

 

Subd. 3.  House of Representatives

 

32,383,000

 

32,383,000

 

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

 

$4,092,000 of the house of representatives carryforward balance is canceled to the general fund on July 1, 2017.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2258

Subd. 4.  Legislative Coordinating Commission

 

17,626,000

 

17,450,000

 

Appropriations by Fund

 

General

17,498,000

17,322,000

Health Care Access

128,000

128,000

 

Appropriations provided by this subdivision may be used for designated staff to support the following offices and commissions:  Office of the Legislative Auditor; Office of the Revisor of Statutes; Legislative Reference Library; Legislative-Citizen Commission on Minnesota Resources; Legislative Commission on Pensions and Retirement; Legislative Energy Commission; and the Lessard‑Sams Outdoor Heritage Council.  The operation of all other joint offices and commissions must be supported by the central administrative staff of the Legislative Coordinating Commission.

 

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

 

$1,418,000 of the Legislative Coordinating Commission carryforward balance is canceled to the general fund on July 1, 2017.

 

Legislative Auditor.  $6,694,000 the first year and $6,564,000 the second year are for the Office of the Legislative Auditor.

 

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

 

No later than January 15, 2018, the legislative auditor must complete a review of the small business investment tax credit incentive established in Minnesota Statutes, section 116J.8737.  The review must follow the evaluation plan established for review of a general incentive program under Minnesota Statutes, section 3.9735, subdivision 4.

 

Revisor of Statutes.  $6,090,000 the first year and $6,090,000 the second year are for the Office of the Revisor of Statutes.

 

As soon as practicable and consistent with the terms of the lease agreement, the revisor of statutes must terminate its lease of office space located at 525 Park Street in St. Paul.  The revisor must consult with the Legislative Coordinating Commission to identify other suitable space within the State Capitol complex to which existing staff and equipment at that location may be relocated.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2259

Legislative Budget Office.  $864,000 the first year and $818,000 the second year are for the Legislative Budget Office established in section 3.8853.

 

Sec. 3.  GOVERNOR AND LIEUTENANT GOVERNOR

$3,195,000

 

$3,195,000

 

(a) This appropriation is to fund the Office of the Governor and Lieutenant Governor.

 

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

 

(c) The Office of the Governor may receive payments of no more than $720,000 each fiscal year from executive agencies under Minnesota Statutes, section 15.53, to support office costs, not including the residence groundskeeper, incurred by the office.  Payments received under this paragraph must be deposited in a special revenue account.  Money in the account is appropriated to the Office of the Governor.

 

By September 1 of each year, the commissioner of management and budget shall report to the chairs and ranking minority members of the senate State Departments and Veterans Affairs Budget Division and the house of representatives State Government Finance Committee any personnel costs incurred by the Offices of the Governor and Lieutenant Governor that were supported by appropriations to other agencies during the previous fiscal year.  The Office of the Governor shall inform the chairs and ranking minority members of the committees before initiating any interagency agreements.

 

(d) Appropriations provided by this section may not be used to support the hiring of additional personnel in the Office of the Governor, to support current personnel in the office assigned to oversee federal policy or federal government relations, or to maintain office space located in the District of Columbia.

 

Sec. 4.  STATE AUDITOR

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$9,243,000

 

$9,488,000

 

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

 

Subd. 2.  Audit Practice

 

7,449,000

 

7,694,000

 

Subd. 3.  Legal and Special Investigations

 

272,000

 

272,000

 

Subd. 4.  Government Information

 

511,000

 

511,000


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2260

Subd. 5.  Pension Oversight

 

485,000

 

485,000

 

Subd. 6.  Operations Management

 

305,000

 

305,000

 

Subd. 7.  Constitutional Office

 

221,000

 

221,000

 

Sec. 5.  ATTORNEY GENERAL

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$23,894,000

 

$23,894,000

 

Appropriations by Fund

 

 

2018

2019

 

General

21,094,000

21,094,000

State Government Special Revenue

 

2,405,000

 

2,405,000

Remediation

250,000

250,000

Environmental

145,000

145,000

 

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

 

Subd. 2.  Government Legal Services

 

3,764,000

 

3,764,000

 

Subd. 3.  Regulatory Law and Professions

 

5,070,000

 

5,070,000

 

Appropriations by Fund

 

General

2,291,000

2,291,000

State Government Special Revenue

 

2,384,000

 

2,384,000

Remediation

250,000

250,000

Environmental

145,000

145,000

 

Subd. 4.  State Government Services

 

6,345,000

 

6,345,000

 

Appropriations by Fund

 

General

6,324,000

6,324,000

State Government Special Revenue

 

21,000

 

21,000

 

Subd. 5.  Civil Law Section

 

3,102,000

 

3,102,000

 

Subd. 6.  Civil Litigation

 

1,542,000

 

1,542,000

 

Subd. 7.  Administrative Operations

 

4,071,000

 

4,071,000


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2261

Sec. 6.  SECRETARY OF STATE

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$5,419,000

 

$5,530,000

 

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

 

Subd. 2.  Administration

 

512,000

 

525,000

 

Subd. 3.  Safe at Home

 

659,000

 

676,000

 

Subd. 4.  Business Services

 

1,422,000

 

1,174,000

 

Subd. 5.  Elections

 

2,826,000

 

3,155,000

 

Sec. 7.  CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD

 

$689,000

 

 

$689,000

 

This appropriation includes administrative savings to the board resulting from the repeal of the campaign subsidy program provided in article 2.

 

Sec. 8.  STATE BOARD OF INVESTMENT

 

$139,000

 

$139,000

 

Sec. 9.  ADMINISTRATIVE HEARINGS

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$8,170,000

 

$8,170,000

 

Appropriations by Fund

 

 

2018

2019

 

General

383,000

383,000

Workers' Compensation

7,787,000

7,787,000

 

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

 

Subd. 2.  Campaign Violations

 

115,000

 

115,000

 

These amounts are for the cost of considering complaints filed under Minnesota Statutes, section 211B.32.  These amounts may be used in either year of the biennium.

 

Subd. 3.  Data Practices

 

6,000

 

6,000

 

These amounts are for the cost of considering data practices complaints filed under Minnesota Statutes, section 13.085.  These amounts may be used in either year of the biennium.

 

Subd. 4.  Municipal Boundary Adjustments

 

262,000

 

262,000


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2262

Sec. 10.  OFFICE OF MN.IT SERVICES

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$2,622,000

 

$2,622,000

 

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

 

The state chief information officer must prioritize use of appropriations provided by this section to enhance cybersecurity across state government.

 

Subd. 2.  State Chief Information Officer

 

1,316,000

 

1,316,000

 

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

 

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

 

Subd. 3.  Geospatial Information Office

 

871,000

 

871,000

 

Subd. 4.  Enterprise IT Security

 

435,000

 

435,000

 

Sec. 11.  ADMINISTRATION

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$19,584,000

 

$19,584,000

 

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

 

Subd. 2.  Government and Citizen Services

 

7,101,000

 

7,101,000

 

Appropriations provided by this section may not be used to fund continuous improvement initiatives, including the Office of Continuous Improvement (LEAN).

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2263

Olmstead Plan.  $148,000 each year is for the Olmstead plan.

 

Materials Management.  $2,033,000 each year is for materials management.

 

Amounts allocated by the commissioner for each fiscal year to the Office of Equity in Procurement must be at least ten percent less than the amounts allocated for that purpose in fiscal year 2017.

 

Plant Management.  $371,000 each year is for plant management.

 

$2,929,000 the first year of the balance in the facility repair and replacement account in the special revenue fund is canceled to the general fund.  These amounts are in addition to amounts transferred under Minnesota Statutes, section 16B.24, subdivision 5, paragraph (d).

 

Real Estate and Construction Services.  $2,088,000 each year is for real estate and construction services.

 

Enterprise Real Property.  $571,000 each year is for enterprise real property.

 

Small Agency Resource Team (SmART).  $416,000 each year is for the small agency resource team.

 

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

 

Community Services.  $1,200,000 each year is for community services.

 

Subd. 3.  Strategic Management Services

 

1,706,000

 

1,706,000

 

Executive Leadership/Partnerships.  $500,000 each year is for executive leadership/partnerships.

 

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

 

Financial Management and Reporting.  $671,000 each year is for financial management and reporting.

 

Human Resources.  $350,000 each year is for human resources.

 

Subd. 4.  Fiscal Agent

 

10,777,000

 

10,777,000

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2264

Public Television.  (a) $1,550,000 the first year and $1,550,000 the second year are for matching grants for public television.

 

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

 

(c) The commissioner of administration must consider the recommendations of the Minnesota Public Television Association before allocating the amounts appropriated in paragraphs (a) and (b) for equipment or matching grants.

 

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

 

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

 

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

 

(g) The appropriations in paragraphs (d) to (f) may not be used for indirect costs claimed by an institution or governing body.

 

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

 

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

 

Sec. 12.  CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD

 

$345,000

 

 

$345,000

 

Sec. 13.  MINNESOTA MANAGEMENT AND BUDGET

$18,320,000

 

$18,320,000

 

Subdivision 1.  Appropriations

 

 

 

 

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2265

Subd. 2.  Accounting Services

 

3,751,000

 

3,751,000

 

Subd. 3.  Budget Services

 

2,823,000

 

2,823,000

 

Subd. 4.  Economic Analysis

 

424,000

 

424,000

 

Subd. 5.  Debt Management

 

367,000

 

367,000

 

Subd. 6.  Enterprise Communications and Planning

 

830,000

 

830,000

 

Subd. 7.  Enterprise Human Resources

 

2,681,000

 

2,681,000

 

Appropriations provided by this section or transferred to the commissioner from another agency may not be used to support a statewide executive recruiting program.

 

Subd. 8.  Labor Relations

 

868,000

 

868,000

 

Subd. 9.  Agency Administration

 

6,576,000

 

6,576,000

 

(a) No later than June 30, 2018, the commissioner must credit at least $1,000,000 to the general fund based on savings realized through implementation of the employee gainsharing program required by Minnesota Statutes, section 16A.90.  If a credit of at least this amount has not been made to the general fund as of that date, the appropriation provided in this subdivision for fiscal year 2019 is reduced in an amount equal to the difference between the amount actually credited to the general fund and the total credit required by this paragraph.

 

(b) Appropriations provided by this section may not support the development or implementation of the program evaluation methodologies authorized by Laws 2015, chapter 77, article 1, section 13.

 

Sec. 14.  REVENUE

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$141,485,000

 

$141,310,000

 

Appropriations by Fund

 

 

2018

 

2019

General

137,249,000

137,074,000

Health Care Access

1,749,000

1,749,000

Highway User Tax Distribution

 

2,184,000

 

2,184,000

Environmental

303,000

303,000

 

Notwithstanding the appropriations provided by this section, the amounts allocated for tax compliance activities of the department must be no less than the amounts allocated for those activities during fiscal year 2017.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2266

Subd. 2.  Tax System Management

 

114,128,000

 

113,953,000

 

Appropriations by Fund

 

 

2018

2019

 

General

109,892,000

109,717,000

Health Care Access

1,749,000

1,749,000

Highway User Tax Distribution

 

2,184,000

 

2,184,000

Environmental

303,000

303,000

 

(a) Operations Support

 

 

 

 

General

 

 

 

9,356,000

 

9,356,000

Health Care Access

 

 

 

126,000

 

126,000

 

 

(b) Appeals, Legal Services, and Tax Research

 

 

 

 

General

 

 

 

6,932,000

 

6,932,000

Health Care Access

 

 

 

113,000

 

113,000

 

(c) Payment and Return Processing

 

 

 

 

General

 

 

 

12,927,000

 

12,927,000

Health Care Access

 

 

 

51,000

 

51,000

Highway User Tax Distribution

 

 

 

343,000

 

343,000

 

(d) Administration of State Taxes

 

 

 

 

General

 

 

 

54,904,000

 

54,729,000

Health Care Access

 

 

 

1,407,000

 

1,407,000

Highway User Tax Distribution

 

 

 

1,621,000

 

1,621,000

Environmental

 

 

 

303,000

 

303,000

 

(1) $15,000 from the general fund in the first year is for preparing and submitting a supplemental 2017 tax incidence report meeting the requirements of Minnesota Statutes, section 270C.13, subdivision 1, as amended by this act.  The supplemental report must be completed and submitted no later than January 2, 2018.

 

(2) $160,000 from the general fund in the first year is for administration of a first-time home buyer savings account program.  This appropriation is canceled to the general fund if income tax provisions related to first-time home buyer savings accounts are not enacted by law at the 2017 regular or special legislative session.

 

(e) Technology Development, Implementation, and Support

 

 

 

 

General

 

 

 

21,781,000

 

21,781,000

Health Care Access

 

 

 

52,000

 

52,000

Highway User Tax Distribution

 

 

 

220,000

 

220,000


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2267

(f) Property Tax Administration and State Aid

 

 

 

 

General

 

 

 

3,992,000

 

3,992,000

 

Subd. 3.  Debt Collection Management

 

27,357,000

 

27,357,000

 

Sec. 15.  HUMAN RIGHTS

 

$3,171,000

 

$3,171,000

 

Sec. 16.  GAMBLING CONTROL

 

$3,422,000

 

$3,457,000

 

These appropriations are from the lawful gambling regulation account in the special revenue fund.

 

Sec. 17.  RACING COMMISSION

 

$845,000

 

$908,000

 

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

 

Sec. 18.  STATE LOTTERY

 

 

 

 

 

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

 

Sec. 19.  AMATEUR SPORTS COMMISSION

 

$300,000

 

$300,000

 

Sec. 20.  COUNCIL ON MINNESOTANS OF AFRICAN HERITAGE

 

$401,000

 

 

$401,000

 

Sec. 21.  COUNCIL ON ASIAN-PACIFIC MINNESOTANS

$364,000

 

$364,000

 

Sec. 22.  COUNCIL ON LATINO AFFAIRS

 

$386,000

 

$386,000

 

Sec. 23.  INDIAN AFFAIRS COUNCIL

 

$576,000

 

$576,000

 

Sec. 24.  MINNESOTA HISTORICAL SOCIETY

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$22,893,000

 

$22,893,000

 

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

 

Subd. 2.  Operations and Programs

 

22,572,000

 

22,572,000

 

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

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2268

Subd. 3.  Fiscal Agent

 

 

 

 

 

(a) Global Minnesota

 

39,000

 

39,000

 

(b) Minnesota Air National Guard Museum

 

17,000

 

17,000

 

(c) Minnesota Military Museum

 

50,000

 

50,000

 

(d) Farmamerica

 

115,000

 

115,000

 

(e) Hockey Hall of Fame

 

100,000

 

100,000

 

Any unencumbered balance remaining in this subdivision the first year does not cancel but is available for the second year of the biennium.

 

Sec. 25.  BOARD OF THE ARTS

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$7,530,000

 

$7,530,000

 

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

 

Subd. 2.  Operations and Services

 

591,000

 

591,000

 

Subd. 3.  Grants Program

 

4,800,000

 

4,800,000

 

Subd. 4.  Regional Arts Councils

 

2,139,000

 

2,139,000

 

Any unencumbered balance remaining in this section the first year does not cancel, but is available for the second year.

 

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

 

Sec. 26.  MINNESOTA HUMANITIES CENTER

 

$950,000

 

$950,000

 

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

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2269

Sec. 27.  BOARD OF ACCOUNTANCY

 

$641,000

 

$641,000

 

Sec. 28.  BOARD OF ARCHITECTURE ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN

 

 

$794,000

 

 

 

$794,000

 

Sec. 29.  BOARD OF COSMETOLOGIST EXAMINERS

$1,346,000

 

$1,346,000

 

Sec. 30.  BOARD OF BARBER EXAMINERS

 

$325,000

 

$325,000

 

Sec. 31.  GENERAL CONTINGENT ACCOUNTS

 

$750,000

 

$500,000

 

Appropriations by Fund

 

 

2018

2019

 

General

250,000

-0-

State Government Special Revenue

 

400,000

 

400,000

Workers' Compensation

100,000

100,000

 

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

 

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

 

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

 

Sec. 32.  TORT CLAIMS

 

$161,000

 

$161,000

 

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

 

Sec. 33.  MINNESOTA STATE RETIREMENT SYSTEM

 

 

 

 

Subdivision 1.  Total Appropriation

 

$14,893,000

 

$15,071,000

 

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

 

Subd. 2.  Combined Legislators and Constitutional Officers Retirement Plan

 

8,893,000

 

 

9,071,000

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2270

Subd. 3.  Judges Retirement Plan

 

6,000,000

 

6,000,000

 

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

 

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

 

Sec. 34.  PUBLIC EMPLOYEES RETIREMENT ASSOCIATION

 

$6,000,000

 

 

$6,000,000

 

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

 

State payments from the general fund to the Public Employees Retirement Association on behalf of the former MERF division account are $6,000,000 on September 15, 2017, and $6,000,000 on September 15, 2018.

 

These amounts are estimated to be needed under Minnesota Statutes, section 353.505.

 

Sec. 35.  TEACHERS RETIREMENT ASSOCIATION

$29,831,000

 

$29,831,000

 

The amounts estimated to be needed are as follows:

 

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

 

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

 

Sec. 36.  ST. PAUL TEACHERS RETIREMENT FUND

$9,827,000

 

$9,827,000

 

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

 

Sec. 37.  MILITARY AFFAIRS

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$19,616,000

 

$19,616,000

 

The amounts that may be spent for each purpose are specified in the following subdivisions.  If appropriations for either year of the biennium are insufficient, the appropriation from the other year is available.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2271

Subd. 2.  Maintenance of Training Facilities

 

9,661,000

 

9,661,000

 

Subd. 3.  General Support

 

3,067,000

 

3,067,000

 

Subd. 4.  Enlistment Incentives

 

6,888,000

 

6,888,000

 

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

 

Sec. 38.  VETERANS AFFAIRS

 

 

 

 

 

Subdivision 1.  Total Appropriation

 

$74,029,000

 

$74,029,000

 

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

 

Subd. 2.  Veterans Programs and Services

 

16,811,000

 

16,811,000

 

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

 

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

 

(1) utilities;

 

(2) employment; and

 

(3) legal issues.

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2272

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

 

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

 

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

 

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

 

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

 

Subd. 3.  Veterans Health Care

 

57,218,000

 

57,218,000

 

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

 

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

 

Sec. 39.  PRESERVATION OF PROGRAMS AND SERVICES.

 

To the extent that appropriations provided by this article are less than the amounts appropriated for fiscal year 2017, the affected constitutional office, agency, board, or commission must prioritize reductions to its central administration and general operations in absorbing those reductions.  Unless otherwise specified, reductions must not be made to programs or services of the constitutional office, agency, board, or commission that are provided directly to members of the public.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2273

Sec. 40.  APPROPRIATION CANCELLATIONS.

 

All unspent funds estimated to be $7,166,000 designated for grants under Minnesota Statutes, sections 240A.085 to 240A.11, are canceled to the general fund on June 30, 2017.

 

Sec. 41.  SAVINGS; APPROPRIATION REDUCTION FOR EXECUTIVE AGENCIES.

 

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

 

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

 

Sec. 42.  SAVINGS; APPROPRIATION REDUCTIONS FOR INFORMATION TECHNOLOGY CONSOLIDATION.

 

(a) The commissioner of management and budget must reduce general fund appropriations to agencies subject to the executive branch information technology consolidation required by Laws 2011, First Special Session chapter 10, article 4, section 7, as amended by Laws 2013, chapter 134, section 29 by at least $3,000,000 for the biennium ending June 30, 2019, to reflect savings on enterprise services personnel costs resulting from the consolidation.

 

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

 

Sec. 43.  BASE BUDGET REPORT.

 

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

 

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

 

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

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2274

ARTICLE 2

STATE GOVERNMENT OPERATIONS

 

Section 1.  [2.92] DISTRICTING PRINCIPLES.

 

Subdivision 1.  Applicability.  The principles in this section apply to legislative and congressional districts.

 

Subd. 2.  Nesting.  A representative district may not be divided in the formation of a senate district.

 

Subd. 3.  Equal population.  (a) Legislative districts must be substantially equal in population.  The population of a legislative district must not deviate from the ideal by more than 0.5 percent, plus or minus.

 

(b) Congressional districts must be as nearly equal in population as practicable.

 

Subd. 4.  Contiguity; compactness.  The districts must be composed of convenient contiguous territory.  To the extent consistent with the other principles in this section, districts should be compact.  Contiguity by water is sufficient if the water is not a serious obstacle to travel within the district.  Point contiguity is not sufficient.

 

Subd. 5.  Numbering.  (a) Legislative districts must be numbered in a regular series, beginning with house district 1A in the northwest corner of the state and proceeding across the state from west to east, north to south, but bypassing the 11-county metropolitan area until the southeast corner has been reached; then to the 11-county metropolitan area.  In a county that includes more than one whole senate district, the districts must be numbered consecutively.

 

(b) Congressional district numbers must begin with district one in the southeast corner of the state and end with district eight in the northeast corner of the state.

 

Subd. 6.  Minority representation.  (a) The dilution of racial or ethnic minority voting strength is contrary to the laws of the United States and the state of Minnesota.  These principles must not be construed to supersede any provision of the Voting Rights Act of 1965, as amended.

 

(b) A redistricting plan must not have the intent or effect of dispersing or concentrating minority population in a manner that prevents minority communities from electing their candidates of choice.

 

Subd. 7.  Minor civil divisions.  (a) A county, city, or town must not be unduly divided unless required to meet equal population requirements or to form districts composed of convenient, contiguous territory.

 

(b) A county, city, or town is not unduly divided in the formation of a legislative or congressional district if:

 

(1) the division occurs because a portion of a city or town is noncontiguous with another portion of the same city or town; or

 

(2) despite the division, the known population of any affected county, city, or town remains wholly located within a single district.

 

Subd. 8.  Preserving communities of interest.  (a) Districts should attempt to preserve identifiable communities of interest where that can be done in compliance with the principles under this section.

 

(b) For purposes of this subdivision, "communities of interest" means recognizable areas with similarities of interests including but not limited to racial, ethnic, geographic, social, or cultural interests.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2275

Subd. 9.  Incumbents.  The districts must not be drawn for the purpose of protecting or defeating an incumbent.

 

Subd. 10.  Data to be used.  (a) The geographic areas and population counts used in maps, tables, and legal descriptions of the districts must be those used by the Geographic Information Systems Office of the Legislative Coordinating Commission.  The population counts shall be the block population counts provided to the state under Public Law 94-171 after each decennial census, subject to correction of any errors acknowledged by the United States Census Bureau.

 

(b) Nothing in this subdivision prohibits the use of additional data, as determined by the legislature.

 

Subd. 11.  Consideration of plans.  A redistricting plan must not be considered for adoption by the senate or house of representatives until a block equivalency file showing the district to which each census block has been assigned, in a form prescribed by the director of the Geographic Information Systems Office, has been filed with the director.

 

Subd. 12.  Priority of principles.  Where it is not possible to fully comply with the principles contained in subdivisions 2 to 9, a redistricting plan must give priority to those principles in the order in which they are listed, except to the extent that doing so would violate federal or state law.

 

EFFECTIVE DATE.  This section is effective the day following final enactment and applies to any plan for districts enacted or established for use on or after that date.

 

Sec. 2.  Minnesota Statutes 2016, section 3.305, subdivision 1, is amended to read:

 

Subdivision 1.  Definitions.  (a) "Legislative commission" means a joint commission, committee, or other entity in the legislative branch composed exclusively of members of the senate and the house of representatives.

 

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

 

Sec. 3.  Minnesota Statutes 2016, section 3.855, subdivision 2, is amended to read:

 

Subd. 2.  State employee negotiations.  (a) The commissioner of management and budget shall regularly advise the commission on the progress of collective bargaining activities with state employees under the state Public Employment Labor Relations Act.  During negotiations, the commission may make recommendations to the commissioner as it deems appropriate but no recommendation shall impose any obligation or grant any right or privilege to the parties.

 

(b) The commissioner shall submit to the chair of the commission any negotiated collective bargaining agreements, arbitration awards, compensation plans, or salaries for legislative approval or disapproval.  Negotiated agreements shall be submitted within five days of the date of approval by the commissioner or the date of approval by the affected state employees, whichever occurs later.  Arbitration awards shall be submitted within five days of their receipt by the commissioner.  If the commission disapproves a collective bargaining agreement, award, compensation plan, or salary, the commission shall specify in writing to the parties those portions with which it disagrees and its reasons.  If the commission approves a collective bargaining agreement, award, compensation plan, or salary, it shall submit the matter to the legislature to be accepted or rejected under this section.

 

(c) When the legislature is not in session, the commission may give interim approval to a negotiated collective bargaining agreement, salary, compensation plan, or arbitration award.  When the legislature is not in session, failure of the commission to disapprove a collective bargaining agreement or arbitration award within 30 days constitutes approval.  The commission shall submit the negotiated collective bargaining agreements, salaries, compensation


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2276

plans, or arbitration awards for which it has provided approval to the entire legislature for ratification at a special legislative session called to consider them or at its next regular legislative session as provided in this section.  Approval or disapproval by the commission is not binding on the legislature.

 

(d) When the legislature is not in session, the proposed collective bargaining agreement, arbitration decision, salary, or compensation plan must be implemented upon its approval by the commission, and state employees covered by the proposed agreement or arbitration decision do not have the right to strike while the interim approval is in effect.  Wages and economic fringe benefit increases provided for in the agreement or arbitration decision paid in accordance with the interim approval by the commission are not affected, but the wages or benefit increases must cease to be paid or provided effective upon the rejection of the agreement, arbitration decision, salary, or compensation plan, or upon adjournment of the legislature without acting on it.

 

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

 

Sec. 4.  Minnesota Statutes 2016, section 3.8843, subdivision 7, is amended to read:

 

Subd. 7.  Expiration.  This section expires June 30, 2017 2019.

 

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

 

Sec. 5.  [3.8853] LEGISLATIVE BUDGET OFFICE.

 

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

 

Sec. 6.  Minnesota Statutes 2016, section 3.971, subdivision 2, is amended to read:

 

Subd. 2.  Staff; compensation.  (a) The legislative auditor shall establish a Financial Audits Division and a Program Evaluation Division to fulfill the duties prescribed in this section.

 

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

 

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

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2277

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

 

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

 

Sec. 7.  Minnesota Statutes 2016, section 3.971, subdivision 6, is amended to read:

 

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

 

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

 

Sec. 8.  Minnesota Statutes 2016, section 3.972, is amended by adding a subdivision to read:

 

Subd. 4.  Certain transit financial activity reporting.  (a) The legislative auditor must perform a transit financial activity review of financial information for the Metropolitan Council's Transportation Division and the joint powers board under section 297A.992.  Within 14 days of the end of each fiscal quarter, the legislative auditor must submit the review to the Legislative Audit Commission and the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance, finance, and ways and means.

 

(b) At a minimum, each transit financial activity review must include:

 

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

 

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

 

(3) the amount of funds in clause (2) that has been committed;

 

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

 

(i) all expenditure commitments;

 

(ii) cash flow;

 

(iii) sufficiency of estimated funds; and

 

(iv) financial solvency of anticipated transit projects; and

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2278

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

 

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

 

Sec. 9.  Minnesota Statutes 2016, section 3.98, subdivision 1, is amended to read:

 

Subdivision 1.  Preparation.  (a) The head or chief administrative officer of each department or agency of the state government, including the Supreme Court, Legislative Budget Office shall prepare a fiscal note at the request of the chair of the standing committee to which a bill has been referred, or the chair of the house of representatives Ways and Means Committee, or the chair of the senate Committee on Finance.

 

(b) The head or chief administrative officer of each department or agency of state government, including the Supreme Court, shall supply information for fiscal notes upon request of the director of the Legislative Budget Office.  The Legislative Budget Office may adopt standards and guidelines governing timing of responses to requests for information and governing access to data, consistent with laws governing access to data.  Agencies must comply with these standards and guidelines.

 

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

 

Sec. 10.  Minnesota Statutes 2016, section 3.98, subdivision 4, is amended to read:

 

Subd. 4.  Uniform procedure.  The commissioner of management and budget Legislative Budget Office shall prescribe a uniform procedure to govern the departments and agencies of the state in complying with the requirements of this section.

 

Sec. 11.  Minnesota Statutes 2016, section 3.987, subdivision 1, is amended to read:

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2279

Sec. 12.  Minnesota Statutes 2016, section 6.481, subdivision 6, is amended to read:

 

Subd. 6.  Payments to state auditor.  A county audited by the state auditor must pay the state auditor for the costs and expenses of the audit.  If the state auditor makes additional examinations of a county whose audit is performed by a CPA firm, the county must pay the auditor for the cost of these examinations.  Payments must be deposited in the state auditor enterprise general fund.

 

Sec. 13.  Minnesota Statutes 2016, section 6.56, subdivision 2, is amended to read:

 

Subd. 2.  Billings by state auditor.  Upon the examination of the books, records, accounts, and affairs of any political subdivision, as provided by law, such political subdivision shall be liable to the state for the total cost and expenses of such examination, including the salaries paid to the examiners while actually engaged in making such examination.  The state auditor may bill such political subdivision periodically for service rendered and the officials responsible for approving and paying claims are authorized to pay said bill promptly.  Said payments shall be without prejudice to any defense against said claims that may exist or be asserted.  The state auditor enterprise general fund shall be credited with all collections made for any such examinations, including interest payments made pursuant to subdivision 3.

 

Sec. 14.  Minnesota Statutes 2016, section 6.581, subdivision 4, is amended to read:

 

Subd. 4.  Reports to legislature.  At least 30 days before implementing increased charges for examinations, the state auditor must report the proposed increases to the chairs and ranking minority members of the committees in the house of representatives and the senate with jurisdiction over the budget of the state auditor.  By January 15 of each odd-numbered year, the state auditor must report to the chairs and ranking minority members of the legislative committees and divisions with primary jurisdiction over the budget of the state auditor a summary of the state auditor enterprise fund anticipated revenues, and expenditures related to examinations for the biennium ending June 30 of that year.  The report must also include for the biennium the number of full-time equivalents paid by the fund employed by the Office of the State Auditor, any audit rate changes stated as a percentage, the number of audit reports issued, and the number of counties audited.

 

Sec. 15.  Minnesota Statutes 2016, section 10A.01, subdivision 26, is amended to read:

 

Subd. 26.  Noncampaign disbursement.  "Noncampaign disbursement" means a purchase or payment of money or anything of value made, or an advance of credit incurred, or a donation in kind received, by a principal campaign committee for any of the following purposes:

 

(1) payment for accounting and legal services;

 

(2) return of a contribution to the source;

 

(3) repayment of a loan made to the principal campaign committee by that committee;

 

(4) return of a public subsidy;

 

(5) (4) payment for food, beverages, and necessary utensils and supplies, entertainment, and facility rental for a fund-raising event;

 

(6) (5) services for a constituent by a member of the legislature or a constitutional officer in the executive branch, including the costs of preparing and distributing a suggestion or idea solicitation to constituents, performed from the beginning of the term of office to adjournment sine die of the legislature in the election year for the office held, and half the cost of services for a constituent by a member of the legislature or a constitutional officer in the executive branch performed from adjournment sine die to 60 days after adjournment sine die;


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2280

(7) (6) payment for food and beverages consumed by a candidate or volunteers while they are engaged in campaign activities;

 

(8) (7) payment for food or a beverage consumed while attending a reception or meeting directly related to legislative duties;

 

(9) (8) payment of expenses incurred by elected or appointed leaders of a legislative caucus in carrying out their leadership responsibilities;

 

(10) (9) payment by a principal campaign committee of the candidate's expenses for serving in public office, other than for personal uses;

 

(11) (10) costs of child care for the candidate's children when campaigning;

 

(12) (11) fees paid to attend a campaign school;

 

(13) (12) costs of a postelection party during the election year when a candidate's name will no longer appear on a ballot or the general election is concluded, whichever occurs first;

 

(14) (13) interest on loans paid by a principal campaign committee on outstanding loans;

 

(15) (14) filing fees;

 

(16) (15) post-general election holiday or seasonal cards, thank-you notes, or advertisements in the news media mailed or published prior to the end of the election cycle;

 

(17) (16) the cost of campaign material purchased to replace defective campaign material, if the defective material is destroyed without being used;

 

(18) (17) contributions to a party unit;

 

(19) (18) payments for funeral gifts or memorials;

 

(20) (19) the cost of a magnet less than six inches in diameter containing legislator contact information and distributed to constituents;

 

(21) (20) costs associated with a candidate attending a political party state or national convention in this state;

 

(22) (21) other purchases or payments specified in board rules or advisory opinions as being for any purpose other than to influence the nomination or election of a candidate or to promote or defeat a ballot question; and

 

(23) (22) costs paid to a third party for processing contributions made by a credit card, debit card, or electronic check.

 

The board must determine whether an activity involves a noncampaign disbursement within the meaning of this subdivision.

 

A noncampaign disbursement is considered to be made in the year in which the candidate made the purchase of goods or services or incurred an obligation to pay for goods or services.

 

EFFECTIVE DATE.  This section is effective July 1, 2017, and applies to elections held on or after that date.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2281

Sec. 16.  Minnesota Statutes 2016, section 10A.105, subdivision 1, is amended to read:

 

Subdivision 1.  Single committee.  A candidate must not accept contributions from a source, other than self, in aggregate in excess of $750 or accept a public subsidy unless the candidate designates and causes to be formed a single principal campaign committee for each office sought.  A candidate may not authorize, designate, or cause to be formed any other political committee bearing the candidate's name or title or otherwise operating under the direct or indirect control of the candidate.  However, a candidate may be involved in the direct or indirect control of a party unit.

 

EFFECTIVE DATE.  This section is effective July 1, 2017, and applies to elections held on or after that date.

 

Sec. 17.  Minnesota Statutes 2016, section 10A.15, subdivision 1, is amended to read:

 

Subdivision 1.  Anonymous contributions.  A political committee, political fund, principal campaign committee, or party unit may not retain an anonymous contribution in excess of $20, but must forward it to the board for deposit in the general account of the state elections campaign account fund.

 

Sec. 18.  Minnesota Statutes 2016, section 10A.245, subdivision 2, is amended to read:

 

Subd. 2.  Termination by board.  The board may terminate the registration of a principal campaign committee, party unit, political committee, or political fund found to be inactive under this section 60 days after sending written notice of inactivity by certified mail to the affected association at the last address on record with the board for that association.  Within 60 days after the board sends notice under this section, the affected association must dispose of its assets as provided in this subdivision.  The assets of the principal campaign committee, party unit, or political committee must be used for the purposes authorized by this chapter or section 211B.12 or must be liquidated and deposited in the general account of the state elections campaign account fund.  The assets of an association's political fund that were derived from the association's general treasury money revert to the association's general treasury.  Assets of a political fund that resulted from contributions to the political fund must be used for the purposes authorized by this chapter or section 211B.12 or must be liquidated and deposited in the general account of the state elections campaign account fund.

 

Sec. 19.  Minnesota Statutes 2016, section 10A.25, subdivision 1, is amended to read:

 

Subdivision 1.  Limits are voluntary.  The expenditure limits imposed by this section apply only to a candidate who has signed an agreement a pledge under section 10A.322 to be bound by them as a condition of receiving a public subsidy for the candidate's campaign.

 

Sec. 20.  Minnesota Statutes 2016, section 10A.25, subdivision 10, is amended to read:

 

Subd. 10.  Effect of opponent's conduct.  (a) After the deadline for filing a spending limit agreement pledge under section 10A.322, a candidate who has agreed pledged to be bound by the expenditure limits imposed by this section as a condition of receiving a public subsidy for the candidate's campaign may choose to be released from the expenditure limits but remain eligible to receive a public subsidy if the candidate has an opponent who has not agreed pledged to be bound by the limits and has received contributions or made or become obligated to make expenditures during that election cycle in excess of the following limits:

 

(1) up to the close of the reporting period before the primary election, receipts or expenditures equal to 20 percent of the election segment expenditure limit for that office as set forth in subdivision 2; or

 

(2) after the close of the reporting period before the primary election, cumulative receipts or expenditures during that election cycle equal to 50 percent of the election cycle expenditure limit for that office as set forth in subdivision 2.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2282

Before the primary election, a candidate's "opponents" are only those who will appear on the ballot of the same party in the primary election.

 

(b) A candidate who has not agreed pledged to be bound by expenditure limits, or the candidate's principal campaign committee, must file written notice with the board and provide written notice to any opponent of the candidate for the same office within 24 hours of exceeding the limits in paragraph (a).  The notice must state only that the candidate or candidate's principal campaign committee has received contributions or made or become obligated to make campaign expenditures in excess of the limits in paragraph (a).

 

(c) Upon receipt of the notice, a candidate who had agreed pledged to be bound by the limits may file with the board a notice that the candidate chooses to be no longer bound by the expenditure limits.  A notice of a candidate's choice not to be bound by the expenditure limits that is based on the conduct of an opponent in the state primary election may not be filed more than one day after the State Canvassing Board has declared the results of the state primary.

 

(d) A candidate who has agreed pledged to be bound by the expenditure limits imposed by this section and whose opponent in the general election has chosen, as provided in paragraph (c), not to be bound by the expenditure limits because of the conduct of an opponent in the primary election is no longer bound by the limits but remains eligible to receive a public subsidy.

 

Sec. 21.  Minnesota Statutes 2016, section 10A.257, subdivision 1, is amended to read:

 

Subdivision 1.  Unused funds.  For election cycles ending on or before December 31, 2018, after all campaign expenditures and noncampaign disbursements for an election cycle have been made, an amount up to 25 percent of the 2016 election cycle expenditure limit for the office may be carried forward.  Any remaining amount up to the total amount of the 2016 public subsidy from the state elections campaign fund must be returned to the state treasury for credit to the general fund under Minnesota Statutes 2016, section 10A.324.  Any remaining amount in excess of the total 2016 public subsidy must be contributed to the state elections campaign account or a political party for multicandidate expenditures as defined in section 10A.275.

 

EFFECTIVE DATE.  This section is effective July 1, 2017, and applies to elections held on or after that date.

 

Sec. 22.  Minnesota Statutes 2016, section 10A.27, subdivision 10, is amended to read:

 

Subd. 10.  Limited personal contributions.  A candidate who signs an agreement a pledge under section 10A.322 may not contribute to the candidate's own campaign during a segment of an election cycle more than five times the candidate's contribution limit for that segment under subdivision 1.

 

Sec. 23.  Minnesota Statutes 2016, section 10A.27, is amended by adding a subdivision to read:

 

Subd. 11a.  Contributions from the sale of goods or services.  Proceeds from the sale of goods or services by a political committee must be reported as a contribution to that committee, as provided in section 10A.13.  A political committee may not use proceeds from the sale of goods or services to make a contribution to a principal campaign committee, a party unit, or a political committee or political fund, unless the political committee or political fund makes only independent expenditures and disbursements permitted under section 10A.121, subdivision 1.  A political committee selling goods or services must disclose to each purchaser, prior to a sale, that proceeds may be used to make a contribution to an independent expenditure political committee or fund, or may be used by the committee for other political purposes as authorized by law, and must offer the purchaser an opportunity to review the committee's most recent report submitted to the board under section 10A.20.  A copy of the report must be clearly posted in a conspicuous location on at least 8.5-inch by 11-inch sized paper and available for public inspection at the point of sale.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2283

Sec. 24.  Minnesota Statutes 2016, section 10A.322, subdivision 1, is amended to read:

 

Subdivision 1.  Agreement Pledge by candidate.  (a) As a condition of receiving a public subsidy, A candidate must may sign and file with the board a written agreement pledge in which the candidate agrees that the candidate will comply with sections 10A.25; 10A.27, subdivision 10; 10A.324; and 10A.38 until the dissolution of the principal campaign committee of the candidate or the end of the first election cycle completed after the pledge was filed, whichever occurs first.

 

(b) Before the first day of filing for office, the board must forward agreement pledge forms to all filing officers.  The board must also provide agreement pledge forms to candidates on request at any time.  The candidate must file the agreement pledge with the board at least three weeks before the candidate's state primary.  An agreement A pledge may not be filed after that date.  An agreement The board must post a copy of each pledge filed by a candidate on the board's Web site.  For purposes of public posting, a pledge once filed may not be rescinded.

 

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

 

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

 

(c) A pledge filed by a candidate under this subdivision is a voluntary agreement by the candidate to comply with the sections listed in paragraph (a).  Compliance with the terms of a pledge, or any provisions of law cited within the pledge, may not be the subject of an advisory opinion issued under section 10A.02, subdivision 12, and is not subject to an audit, investigation, or enforcement action by the board under section 10A.02, 10A.022, or any other applicable law.

 

Sec. 25.  Minnesota Statutes 2016, section 10A.38, is amended to read:

 

10A.38 CAPTIONING OF CAMPAIGN ADVERTISEMENTS.

 

(a) This section applies to a campaign advertisement by a candidate who is governed by an agreement has filed a pledge under section 10A.322.

 

(b) "Campaign advertisement" means a professionally produced visual or audio recording of two minutes or less produced by the candidate for the purpose of influencing the nomination or election of a candidate.

 

(c) A campaign advertisement that is disseminated as an advertisement by broadcast or cable television must include closed captioning for deaf and hard-of-hearing viewers, unless the candidate has filed with the board before the advertisement is disseminated a statement setting forth the reasons for not doing so.  A campaign advertisement that is disseminated as an advertisement to the public on the candidate's Web site must include closed captioning for deaf and hard-of-hearing viewers, unless the candidate has posted on the Web site a transcript of the spoken content of the advertisement or the candidate has filed with the board before the advertisement is disseminated a statement setting forth the reasons for not doing so.  A campaign advertisement must not be disseminated as an advertisement by radio unless the candidate has posted on the candidate's Web site a transcript of the spoken content of the advertisement or the candidate has filed with the board before the advertisement is disseminated a statement setting forth the reasons for not doing so.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2284

Sec. 26.  [15.0395] INTERAGENCY AGREEMENTS AND INTRA-AGENCY TRANSFERS.

 

(a) The head of each agency must provide quarterly reports to the chairs and ranking minority members of the legislative committees with jurisdiction over the department or agency's budget on:

 

(1) interagency agreements or service-level agreements and any renewals or extensions of existing interagency or service-level agreements with another agency if the cumulative value of those agreements is more than $50,000 in a single fiscal year; and

 

(2) transfers of appropriations between accounts within or between agencies, if the cumulative value of the transfers is more than $50,000 in a single fiscal year.

 

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

 

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

 

Sec. 27.  [16A.117] CONTINUING APPROPRIATIONS.

 

Subdivision 1.  Appropriations continue for one year.  If a major appropriation bill is not enacted before July 1 of an odd-numbered year, the existing appropriation amounts pertaining to that bill for the fiscal year ending that June 30 are in effect again at 95 percent of the base level through the fiscal year beginning July 1 of that odd‑numbered year.  The base level is the amount appropriated for the fiscal year ending that June 30, except as otherwise provided by subdivision 2 or by other law.  The amounts needed to implement this section are appropriated from each fund covered by this section.

 

Subd. 2.  Exceptions and adjustments.  (a) An appropriation remaining in effect under authority of subdivision 1 must be adjusted or discontinued as required by other law and according to paragraphs (b) to (e).

 

(b) In order to meet the fiscal obligations required under current law, the commissioner must adjust the appropriation for each forecasted program according to the forecast adjusted base spending level estimated by the commissioner in the preceding February forecast.

 

(c) An appropriation for the fiscal year ending June 30 of the odd-numbered year does not remain in effect for the fiscal year starting on July 1 if the legislature specifically designated the appropriation as a onetime appropriation, if the commissioner of management and budget determines that the legislature clearly intended the appropriation to be onetime, or if the program for which the appropriation was made expires on or before July 1.

 

(d) If an appropriation remains in effect under authority of subdivision 1, but the program or activity that is the subject of the appropriation is scheduled to expire during a fiscal year, the commissioner of management and budget must prorate the appropriation consistent with the expiration date.

 

(e) The commissioner of management and budget may make technical adjustments to the amount of an appropriation to the extent the commissioner determines the technical adjustments are needed to accurately reflect the amount that constitutes the annual base level of the appropriation.  The commissioner may make an adjustment under this paragraph only if one or more of the following conditions is met:


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2285

(1) the legislature previously appropriated money for a biennium, with the entire appropriation being allocated to one year of the biennium, and the commissioner determines an adjustment is necessary to accurately reflect the annual amount needed to maintain program operations at the same level;

 

(2) laws or policies under which revenues and expenditures are accounted for have changed to eliminate or consolidate certain funds or accounts or to create new funds or accounts, and adjustments in appropriations are necessary to implement these changes;

 

(3) duties have been transferred between agency programs, or between agencies, and adjustments in appropriations are necessary to reflect these transfers; or

 

(4) a program, or changes to a program, were not fully operational in one fiscal year, but will be fully operational in the following year, and an adjustment to the appropriation is needed to accurately reflect the annual cost of the new or changed program.

 

(f) The commissioner of management and budget must give the chairs and ranking minority members of the senate finance and house ways and means committees written notice of any adjustments made under this subdivision.

 

Subd. 3.  Statutory appropriations.  All statutory appropriations from the general fund or another fund in the state treasury continue as required under current law and are not limited by subdivision 1.

 

Sec. 28.  Minnesota Statutes 2016, section 16A.90, is amended to read:

 

16A.90 EMPLOYEE GAINSHARING SYSTEM.

 

Subdivision 1.  Commissioner must establish program.  (a) The commissioner shall establish a program to provide onetime bonus compensation to state employees for efforts made to reduce the costs of operating state government or for ways of providing better or more efficient state services.  The commissioner may authorize an executive branch appointing authority to make a onetime award to an employee or group of employees whose suggestion or involvement in a project is determined by the commissioner to have resulted in documented cost‑savings to the state.  Before authorizing awards under this section, the commissioner shall establish guidelines for the program including but not limited to:

 

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

 

(2) the award must be paid from the appropriation to which the savings accrued; and

 

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

 

(b) The program required by this section must be in addition to any existing monetary or nonmonetary performance-based recognition programs for state employees, including achievement awards, continuous improvement awards, and general employee recognitions.

 

Subd. 2.  Monthly legislative report.  No later than August 1, 2017, and monthly thereafter, the commissioner must report to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over Minnesota Management and Budget on the status of the program required by this section.  The report must detail:


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2286

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Sec. 29.  Minnesota Statutes 2016, section 16B.335, subdivision 1, is amended to read:

 

Subdivision 1.  Construction and major remodeling.  (a) The commissioner, or any other recipient to whom an appropriation is made to acquire or better public lands or buildings or other public improvements of a capital nature, must not prepare final plans and specifications for any construction, major remodeling, or land acquisition in anticipation of which the appropriation was made until the agency that will use the project has presented the program plan and cost estimates for all elements necessary to complete the project to the chair of the senate Finance Committee and the chair of the house of representatives Ways and Means Committee and the chairs have made their recommendations, and the chair and ranking minority member of the senate Capital Investment Committee and the chair and ranking minority member of the house of representatives Capital Investment Committee are notified.  "Construction or major remodeling" means construction of a new building, a substantial addition to an existing building, or a substantial change to the interior configuration of an existing building.  The presentation must note any significant changes in the work that will be done, or in its cost, since the appropriation for the project was enacted or from the predesign submittal.  The program plans and estimates must be presented for review at least two weeks before a recommendation is needed.  The recommendations are advisory only.  Failure or refusal to make a recommendation is considered a negative recommendation.

 

(b) The chairs and ranking minority members of the senate Finance and Capital Investment Committees and, the house of representatives Capital Investment and Ways and Means Committees, and the house of representatives and senate budget committees or divisions with jurisdiction over the agency that will use the project must also be notified whenever there is a substantial change in a construction or major remodeling project, or in its cost.  This notice must include the nature and reason for the change and the anticipated cost of the change.  The notice must be given no later than ten days after signing a change order or other document authorizing a change in the project, or if there is not a change order or other document, no later than ten days after the project owner becomes aware of a substantial change in the project or its cost.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2287

(b) (c) Capital projects exempt from the requirements of this subdivision in paragraph (a) to seek recommendations before preparing final plans and specifications include demolition or decommissioning of state assets, hazardous material projects, utility infrastructure projects, environmental testing, parking lots, parking structures, park and ride facilities, bus rapid transit stations, light rail lines, passenger rail projects, exterior lighting, fencing, highway rest areas, truck stations, storage facilities not consisting primarily of offices or heated work areas, roads, bridges, trails, pathways, campgrounds, athletic fields, dams, floodwater retention systems, water access sites, harbors, sewer separation projects, water and wastewater facilities, port development projects for which the commissioner of transportation has entered into an assistance agreement under section 457A.04, ice centers, a local government project with a construction cost of less than $1,500,000, or any other capital project with a construction cost of less than $750,000.  The requirements in paragraph (b) to give notice of changes applies to these projects.

 

Sec. 30.  Minnesota Statutes 2016, section 16B.4805, subdivision 4, is amended to read:

 

Subd. 4.  Administration costs.  The commissioner may use up to 15 five percent of the biennial appropriation for administration of this section.

 

Sec. 31.  Minnesota Statutes 2016, section 16B.97, is amended by adding a subdivision to read:

 

Subd. 6.  Commerce grants.  The office must monitor grants made by the Department of Commerce.

 

Sec. 32.  [16B.991] TERMINATION OF GRANT.

 

Each grant agreement subject to sections 16B.97 and 16B.98 must provide that the agreement will immediately be terminated if:

 

(1) the recipient is convicted of a criminal offense relating to a state grant agreement; or

 

(2) the agency entering into the grant agreement or the commissioner of administration determines that the grant recipient is under investigation by a federal agency, a state agency, or a local law enforcement agency for matters relating to administration of a state grant.

 

Sec. 33.  Minnesota Statutes 2016, section 16E.016, is amended to read:

 

16E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY SERVICES AND EQUIPMENT.

 

(a) The chief information officer is responsible for providing or entering into managed services contracts for the provision, improvement, and development of the following information technology systems and services to state agencies:

 

(1) state data centers;

 

(2) mainframes including system software;

 

(3) servers including system software;

 

(4) desktops including system software;

 

(5) laptop computers including system software;

 

(6) a data network including system software;


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2288

(7) database, electronic mail, office systems, reporting, and other standard software tools;

 

(8) business application software and related technical support services;

 

(9) help desk for the components listed in clauses (1) to (8);

 

(10) maintenance, problem resolution, and break-fix for the components listed in clauses (1) to (8);

 

(11) regular upgrades and replacement for the components listed in clauses (1) to (8); and

 

(12) network-connected output devices.

 

(b) All state agency employees whose work primarily involves functions specified in paragraph (a) are employees of the Office of MN.IT Services.  This includes employees who directly perform the functions in paragraph (a), as well as employees whose work primarily involves managing, supervising, or providing administrative services or support services to employees who directly perform these functions.  The chief information officer may assign employees of the office to perform work exclusively for another state agency.

 

(c) Subject to sections 16C.08 and 16C.09, the chief information officer may allow a state agency to obtain services specified in paragraph (a) through a contract with an outside vendor when the chief information officer and the agency head agree that a contract would provide best value, as defined in section 16C.02, under the service-level agreement.  The chief information officer must require that agency contracts with outside vendors ensure that systems and services are compatible with standards established by the Office of MN.IT Services.

 

(d) The Minnesota State Retirement System, the Public Employees Retirement Association, the Teachers Retirement Association, the State Board of Investment, the Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide Radio Board are not state agencies for purposes of this section.

 

Sec. 34.  Minnesota Statutes 2016, section 16E.0466, is amended to read:

 

16E.0466 STATE AGENCY TECHNOLOGY PROJECTS.

 

Subdivision 1.  Consultation required.  (a) Every state agency with an information or telecommunications project must consult with the Office of MN.IT Services to determine the information technology cost of the project.  Upon agreement between the commissioner of a particular agency and the chief information officer, the agency must transfer the information technology cost portion of the project to the Office of MN.IT Services.  Service level agreements must document all project-related transfers under this section.  Those agencies specified in section 16E.016, paragraph (d), are exempt from the requirements of this section.

 

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

 

Subd. 2.  Legislative report.  No later than October 1, 2017, and quarterly thereafter, the state chief information officer must submit a comprehensive project portfolio report to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over state government finance on projects requiring consultation under subdivision 1.  The report must itemize:

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2289

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

 

(3) the status of the information technology components of the project's development;

 

(4) the date the information technology components of the project are expected to be complete; and

 

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

 

Sec. 35.  [43A.035] LIMIT ON NUMBER OF FULL-TIME EQUIVALENT EMPLOYEES; USE OF AGENCY SAVINGS.

 

Subdivision 1.  Number of full-time equivalent employees limited.  The total number of full-time equivalent employees employed in all executive branch agencies may not exceed 31,691.  The commissioner of management and budget may forbid an executive agency from hiring a new employee or from filling a vacancy as the commissioner determines necessary to ensure compliance with this section.  Any reductions in staff should prioritize protecting client-facing health care workers, corrections officers, public safety workers, and mental health workers.  As a means of achieving compliance with this subdivision, the commissioner may authorize an agency to provide an early retirement incentive to an executive branch employee, under which the state will continue to make the employer contribution for health insurance after the employee has terminated state service.  The commissioner must prescribe eligibility requirements and the maximum duration of the payments.

 

Subd. 2.  Use of savings resulting from vacant positions.  To the extent that an executive branch agency accrues savings in personnel costs resulting from the departure of an agency employee or the maintenance of a vacant position, those savings may only be used to support a new employee in that position at an equal or lesser rate of compensation, and for an equal or lesser full-time equivalent work status.  Savings accrued from departed personnel or maintenance of a vacant position may not be transferred or reallocated to another program or activity within the executive branch agency, or used to increase the number of full-time equivalent employees at the agency, unless expressly authorized by law.

 

Subd. 3.  Definition.  For purposes of this section, an "executive branch agency" does not include the Minnesota State Colleges and Universities or statewide pension plans.

 

Sec. 36.  Minnesota Statutes 2016, section 43A.17, subdivision 11, is amended to read:

 

Subd. 11.  Severance pay for certain employees.  (a) For purposes of this subdivision, "highly compensated employee" means an employee of the state whose estimated annual compensation is greater than 60 percent of the governor's annual salary, and who is not covered by a collective bargaining agreement negotiated under chapter 179A.

 

(b) Severance pay for a highly compensated employee includes benefits or compensation with a quantifiable monetary value, that are provided for an employee upon termination of employment and are not part of the employee's annual wages and benefits and are not specifically excluded by this subdivision.  Severance pay does not include payments for accumulated vacation, accumulated sick leave, and accumulated sick leave liquidated to cover the cost of group term insurance.  Severance pay for a highly compensated employee does not include payments of periodic contributions by an employer toward premiums for group insurance policies.  The severance pay for a highly compensated employee must be excluded from retirement deductions and from any calculations of retirement benefits.  Severance pay for a highly compensated employee must be paid in a manner mutually agreeable to the employee and the employee's appointing authority over a period not to exceed five years from retirement or termination of employment.  If a retired or terminated employee dies before all or a portion of the severance pay has


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2290

been disbursed, the balance due must be paid to a named beneficiary or, lacking one, to the deceased's estate.  Except as provided in paragraph (c), severance pay provided for a highly compensated employee leaving employment may not exceed an amount equivalent to six months of pay the lesser of:

 

(1) six months pay; or

 

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

 

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

 

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

 

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

 

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

 

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

 

Sec. 37.  Minnesota Statutes 2016, section 43A.24, is amended by adding a subdivision to read:

 

Subd. 1a.  Opt out.  (a) An individual eligible for state-paid hospital, medical, and dental benefits under this section has the right to decline those benefits, provided the individual declining the benefits can prove health insurance coverage from another source.  Any individual declining benefits must do so in writing, signed and dated, on a form provided by the commissioner.

 

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

 

Sec. 38.  [118A.09] ADDITIONAL LONG-TERM EQUITY INVESTMENT AUTHORITY.

 

Subdivision 1.  Definition; qualifying government.  "Qualifying government" means:

 

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

 

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

 

(3) a self-insurance pool listed in section 471.982, subdivision 3.

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2291

Subd. 2.  Additional investment authority.  Qualifying governments may invest the amount described in subdivision 3:

 

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

 

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

 

Subd. 3.  Funds.  (a) Qualifying governments may only invest under subdivision 2 according to the limitations in this subdivision.  A qualifying government under subdivision 1, clause (1) or (2), may only invest its funds that are held for long-term capital plans authorized by the city council or county board, or long-term obligations of the qualifying government.  Long-term obligations of the qualifying government include long-term capital plan reserves, funds held to offset long-term environmental exposure, other postemployment benefit liabilities, compensated absences, and other long-term obligations established by applicable accounting standards.

 

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

 

(1) unassigned cash;

 

(2) cash equivalents;

 

(3) deposits; and

 

(4) investments.

 

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

 

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

 

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

 

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

 

Subd. 4.  Approval.  Before investing pursuant to this section, the governing body of the qualifying government must adopt a resolution that includes the following statements:

 

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

 

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

 

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

 

Subd. 5.  Public Employees Retirement Association to act as account administrator.  A qualifying government exercising authority under this section to invest amounts with the State Board of Investment shall establish an account with the Public Employees Retirement Association (PERA), which shall act as the account administrator.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2292

Subd. 6.  Purpose of account.  The account established under subdivision 5 may only be used for the purposes provided under subdivision 3.  PERA may rely on representations made by the qualifying government in exercising its duties as account administrator and has no duty to further verify qualifications, use, or intended use of the funds that are invested or withdrawn.

 

Subd. 7.  Account maintenance.  (a) A qualifying government may establish an account to be held under the supervision of PERA for the purposes of investing funds with the State Board of Investment under subdivision 2.  PERA shall establish a separate account for each qualifying government.  PERA may charge participating qualifying governments a fee for reasonable administrative costs.  The amount of any fee charged by PERA is annually appropriated to the association from the account.  PERA may establish other reasonable terms and conditions for creation and maintenance of these accounts.

 

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

 

Subd. 8.  Investment.  (a) The assets of an account shall be invested and held as required by this subdivision.

 

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

 

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

 

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

 

Subd. 9.  Withdrawal of funds and termination of account.  (a) A government may withdraw some or all of its money or terminate the account.

 

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

 

Sec. 39.  Minnesota Statutes 2016, section 190.19, subdivision 2, is amended to read:

 

Subd. 2.  Uses.  (a) Money appropriated from the Minnesota "Support Our Troops" account to the Department of Military Affairs may be used for:

 

(1) grants directly to eligible individuals;

 

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

 

(3) veterans' services; or

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2293

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Sec. 40.  Minnesota Statutes 2016, section 190.19, subdivision 2a, is amended to read:

 

Subd. 2a.  Uses; veterans.  (a) Money appropriated to the Department of Veterans Affairs from the Minnesota "Support Our Troops" account may be used for:

 

(1) grants to veterans service organizations;

 

(2) outreach to underserved veterans;

 

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

 

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

 

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

 

(6) grants to an eligible foundation.; and


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2294

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

 

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

 

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

 

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

 

Sec. 41.  Minnesota Statutes 2016, section 196.05, subdivision 1, is amended to read:

 

Subdivision 1.  General duties.  The commissioner shall:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(11) provide information, referral, and counseling services to those veterans who may have suffered adverse health conditions as a result of possible exposure to chemical agents.; and


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2295

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

 

Sec. 42.  Minnesota Statutes 2016, section 197.236, subdivision 9, is amended to read:

 

Subd. 9.  Burial fees.  (a) The commissioner of veterans affairs shall establish a fee schedule, which may be adjusted from time to time, for the interment of eligible spouses and dependent children.  The fees shall cover as nearly as practicable the actual costs of interment, excluding the value of the plot.

 

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

 

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

 

Sec. 43.  [197.6091] VETERANS BENEFITS SERVICES; DISCLOSURE REQUIREMENTS.

 

Subdivision 1.  Definitions.  (a) For purposes of this section, the following terms have the meanings given.

 

(b)(1) "Advertising" or "advertisement" means any of the following:

 

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

 

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

 

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

 

(2) "Advertising" or "advertisement" does not include any of the following:

 

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

 

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

 

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

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2296

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

 

Subd. 2.  Advertising disclosure requirements.  A person advertising veterans benefits appeal services must conspicuously disclose in the advertisement, in similar type size or voice-over, that veterans benefits appeal services are also offered at no cost by county veterans service officers under sections 197.603 and 197.604.

 

Subd. 3.  Veterans benefits services disclosure requirements.  A person who provides veterans benefits services in exchange for compensation shall provide a written disclosure statement to each client or prospective client.  Before a person enters into an agreement to provide veterans benefits services or accepts money or any other thing of value for the provision of veterans benefits services, the person must obtain the signature of the client on a written disclosure statement containing an attestation by the client that the client has read and understands the written disclosure statement.

 

Subd. 4.  Violations; penalties.  A person who fails to comply with this section is subject to a civil penalty not to exceed $1,000 for each violation.  Civil penalties shall be assessed by the district court in an action initiated by the attorney general.  For the purposes of computing the amount of each civil penalty, each day of a continuing violation constitutes a separate violation.  Additionally, the attorney general may accept a civil penalty as determined by the attorney general in settlement of an investigation of a violation of this section regardless of whether an action has been filed under this section.  Any civil penalty recovered shall be deposited in the Support Our Troops account established under section 190.19.

 

Subd. 5.  Nonapplicability.  This section does not apply to the owner or personnel of any medium in which an advertisement appears or through which an advertisement is disseminated.

 

Sec. 44.  Minnesota Statutes 2016, section 197.791, subdivision 2, is amended to read:

 

Subd. 2.  Program established.  The Minnesota GI Bill program is established to provide postsecondary educational assistance, apprenticeship and on-the-job training benefits, and other professional and educational benefits to eligible Minnesota veterans and to the children and spouses of deceased and severely disabled Minnesota veterans.

 

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

 

Sec. 45.  Minnesota Statutes 2016, section 197.791, subdivision 3, is amended to read:

 

Subd. 3.  Duties; responsibilities.  (a) The commissioner shall establish policies and procedures including, but not limited to, procedures for student application record keeping, information sharing, payment of educational assistance benefits under subdivision 5, payment of apprenticeship or on-the-job training benefits under subdivision 5a, payment of other educational or professional benefits under subdivision 5, and other procedures the commissioner considers appropriate and necessary for effective and efficient administration of the program established in this section.

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2297

Sec. 46.  Minnesota Statutes 2016, section 197.791, subdivision 4, is amended to read:

 

Subd. 4.  Eligibility.  (a) A person is eligible for educational assistance under this section subdivisions 5 and 5a if:

 

(1) the person is:

 

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

 

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

 

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

 

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

 

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

 

(3) the person receiving the educational assistance:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(d) The commissioner may deny eligibility or terminate benefits under this section to any person who has not provided sufficient documentation to determine eligibility for the program.  An applicant may appeal the commissioner's eligibility determination or termination of benefits in writing to the commissioner at any time.  The


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2298

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

 

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

 

Sec. 47.  Minnesota Statutes 2016, section 197.791, subdivision 5, is amended to read:

 

Subd. 5.  Benefit Educational assistance amount.  (a) On approval by the commissioner of eligibility for the program, the applicant shall be awarded, on a funds-available basis, the educational assistance under the program for use at any time according to program rules at any eligible institution.

 

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

 

(1) the federal Pell Grant;

 

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

 

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

 

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

 

(1) $1,000 per semester or term of enrollment;

 

(2) (1) $3,000 per state fiscal year; and

 

(3) (2) $10,000 in a lifetime.

 

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

 

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

 

(2) tests for admission to institutions of higher learning or graduate schools;

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2299

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

 

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

 

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

 

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

 

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

 

Sec. 48.  Minnesota Statutes 2016, section 197.791, subdivision 5a, is amended to read:

 

Subd. 5a.  Apprenticeship and on-the-job training.  (a) The commissioner, in consultation with the commissioners of employment and economic development and labor and industry, shall develop and implement an apprenticeship and on-the-job training program to administer a portion of the Minnesota GI Bill program to pay benefit amounts to eligible applicants persons, as provided in this subdivision.

 

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

 

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

 

(1) $2,000 $3,000 per fiscal year for apprenticeship expenses;

 

(2) $2,000 $3,000 per fiscal year for on-the-job training;

 

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

 

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

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2300

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

 

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

 

(2) the training must be documented and reported;

 

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

 

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

 

Sec. 49.  Minnesota Statutes 2016, section 270C.13, subdivision 1, is amended to read:

 

Subdivision 1.  Biennial report.  The commissioner shall report to the legislature by March 1 of each odd‑numbered year on the overall incidence of the income tax, sales and excise taxes, and property tax.  The report shall present information on the distribution of the tax burden as follows:  (1) for the overall income distribution, using a systemwide incidence measure such as the Suits index or other appropriate measures of equality and inequality; (2) by income classes, including at a minimum deciles of the income distribution; and (3) by other appropriate taxpayer characteristics.  The report must also include information on the distribution of the burden of federal taxes borne by Minnesota residents.

 

Sec. 50.  [270C.303] FREE ELECTRONIC FILING OF INDIVIDUAL INCOME TAX RETURNS.

 

(a) The commissioner must develop and implement a system for the secure electronic filing of individual income tax returns and payment of individual income tax liabilities on the department's Web site at no cost.  The system must allow for filing of individual returns by individuals and also by tax preparers.

 

(b) The system must automatically populate returns with taxpayer data available to the commissioner including but not limited to wage data received from one or more employers, state income tax withheld by one or more employers, and additional taxes owed to the state or refund owed to the taxpayer.

 

(c) The system must be available:

 

(1) by January 15, 2019, for the filing and payment of tax year 2018 individual income taxes of filers with income only from wages, fewer than five dependents, and federal adjusted gross income less than $200,000 for married couples filing joint returns, and less than $100,000 for all other filers; and

 

(2) by January 15, 2020, for the filing and payment of tax year 2019 individual income taxes of filers with income only from wages, Social Security benefits, interest, dividends, individual retirement account distributions and pensions, fewer than five dependents, and federal adjusted gross income less than $200,000 for married couples filing joint returns, and less than $100,000 for all other filers.

 

(d) For purposes of this section, "federal adjusted gross income" has the meaning given in section 62 of the Internal Revenue Code.  Other terms have the meanings given in chapter 290.

 

(e) By September 15 of each year, beginning in 2019, the commissioner must provide a report to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over taxes, in compliance with sections 3.195 and 3.197.  The report must include statistics on usage of the free electronic filing system required in this section; ways in which the commissioner could expand the system, including draft legislation if needed for system expansion; and any other information the commissioner considers relevant.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2301

Sec. 51.  Minnesota Statutes 2016, section 353.27, subdivision 3c, is amended to read:

 

Subd. 3c.  Former MERF members; member and employer contributions.  (a) For the period July 1, 2015, through December 31, 2031, the member contributions for former members of the Minneapolis Employees Retirement Fund and by the former Minneapolis Employees Retirement Fund-covered employing units are governed by this subdivision.

 

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

 

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

 

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

 

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

 

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

 

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

 

Sec. 52.  Minnesota Statutes 2016, section 353.505, is amended to read:

 

353.505 STATE CONTRIBUTIONS; FORMER MERF DIVISION.

 

(a) On September 15, 2015, and September 15, 2016, and annually thereafter, the state shall pay to the general employees retirement plan of the Public Employees Retirement Association, with respect to the former MERF division, $6,000,000.  By September 15 of each year after 2016, the state shall pay to the general employees retirement plan of the Public Employees Retirement Association, with respect to the former MERF division, $16,000,000.

 

(b) State contributions under this section end on September 15, 2031.

 

Sec. 53.  Minnesota Statutes 2016, section 471.6161, subdivision 8, is amended to read:

 

Subd. 8.  School districts; group health insurance coverage.  (a) Any entity providing group health insurance coverage to a school district must provide the school district with school district-specific nonidentifiable aggregate claims records for the most recent 24 months within 30 days of the request.

 

(b) School districts shall request proposals for group health insurance coverage as provided in subdivision 2 from a minimum of three potential sources of coverage.  One of these requests must go to an administrator governed by chapter 43A.  Entities referenced in subdivision 1 must respond to requests for proposals received directly from a


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2302

school district.  School districts that are self-insured must also follow these provisions, except as provided in paragraph (f).  School districts must make requests for proposals at least 150 days prior to the expiration of the existing contract but not more frequently than once every 24 months.  The request for proposals must include the most recently available 24 months of nonidentifiable aggregate claims data.  The request for proposals must be publicly released at or prior to its release to potential sources of coverage.

 

(c) School district contracts for group health insurance must not be longer than two four years unless the exclusive representative of the largest employment group and the school district agree otherwise.

 

(d) All initial proposals shall be sealed upon receipt until they are all opened no less than 90 days prior to the plan's renewal date in the presence of up to three representatives selected by the exclusive representative of the largest group of employees.  Section 13.591, subdivision 3, paragraph (b), applies to data in the proposals.  The representatives of the exclusive representative must maintain the data according to this classification and are subject to the remedies and penalties under sections 13.08 and 13.09 for a violation of this requirement.

 

(e) A school district, in consultation with the same representatives referenced in paragraph (d), may continue to negotiate with any entity that submitted a proposal under paragraph (d) in order to reduce costs or improve services under the proposal.  Following the negotiations any entity that submitted an initial proposal may submit a final proposal incorporating the negotiations, which is due no less than 75 days prior to the plan's renewal date.  All the final proposals submitted must be opened at the same time in the presence of up to three representatives selected by the exclusive representative of the largest group of employees.  Notwithstanding section 13.591, subdivision 3, paragraph (b), following the opening of the final proposals, all the proposals, including any made under paragraph (d), and other data submitted in connection with the proposals are public data.  The school district may choose from any of the initial or final proposals without further negotiations and in accordance with subdivision 5, but not sooner than 15 days after the proposals become public data.

 

(f) School districts that are self-insured shall follow all of the requirements of this section, except that:

 

(1) their requests for proposals may be for third-party administrator services, where applicable;

 

(2) these requests for proposals must be from a minimum of three different sources, which may include both entities referenced in subdivision 1 and providers of third-party administrator services;

 

(3) for purposes of fulfilling the requirement to request a proposal for group insurance coverage from an administrator governed by chapter 43A, self-insured districts are not required to include in the request for proposal the coverage to be provided;

 

(4) a district that is self-insured on or before the date of enactment, or that is self-insured with more than 1,000 insured lives, or a district in which the school board adopted a motion on or before May 14, 2014, to approve a self‑insured health care plan to be effective July 1, 2014, may, but need not, request a proposal from an administrator governed by chapter 43A;

 

(5) (3) requests for proposals must be sent to providers no less than 90 days prior to the expiration of the existing contract; and

 

(6) (4) proposals must be submitted at least 60 days prior to the plan's renewal date and all proposals shall be opened at the same time and in the presence of the exclusive representative, where applicable.

 

(g) Nothing in this section shall restrict the authority granted to school district boards of education by section 471.59, except that districts will not be considered self-insured for purposes of this subdivision solely through participation in a joint powers arrangement.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2303

(h) An entity providing group health insurance to a school district under a multiyear contract must give notice of any rate or plan design changes applicable under the contract at least 90 days before the effective date of any change.  The notice must be given to the school district and to the exclusive representatives of employees.

 

(i) The exclusive representative of the largest group of employees shall comply with this subdivision and must not exercise any of their abilities under section 43A.316, subdivision 5, notwithstanding anything contained in that section, or any other law to the contrary.

 

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

 

Sec. 54.  Minnesota Statutes 2016, section 471.617, subdivision 2, is amended to read:

 

Subd. 2.  Jointly.  Any two or more statutory or home rule charter cities, counties, school districts, or instrumentalities thereof which together have more than 100 employees may jointly self-insure for any employee health benefits including long-term disability, but not for employee life benefits, subject to the same requirements as an individual self-insurer under subdivision 1.  Self-insurance pools under this section are subject to section 62L.045.  A self-insurance pool established and operated by one or more service cooperatives governed by section 123A.21 to provide coverage described in this subdivision qualifies under this subdivision, but the individual school district members of such a pool shall not be considered to be self-insured for purposes of section 471.6161, subdivision 8, paragraph (f).  The commissioner of commerce may adopt rules pursuant to chapter 14, providing standards or guidelines for the operation and administration of self-insurance pools.

 

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

 

Sec. 55.  Minnesota Statutes 2016, section 508.12, subdivision 1, is amended to read:

 

Subdivision 1.  Examiner and deputy examiner.  The judges of the district court shall appoint a competent attorney in each county within their respective districts to be an examiner of titles and legal adviser to the registrar in said county, to which examiner all applications to register title to land are referred without further order, and may appoint attorneys to serve as deputy examiners who shall act in the name of the examiner and under the examiner's supervision and control, and the deputy's acts shall be the acts of the examiners.  The examiner of titles and deputy examiners shall hold office subject to the will and discretion of the district court by whom appointed.  The examiner's compensation and that of the examiner's deputies shall be fixed and determined by the court and paid in the same manner as the compensation of other county employees is paid except that in all counties having fewer than 75,000 inhabitants, and in Stearns, Dakota, Scott, Wright, Sherburne, and Olmsted Counties the fees and compensation of the examiners for services as legal adviser to the registrar shall be determined by the judges of the district court and paid in the same manner as the compensation of other county employees is paid, but in every other instance shall be paid by the person applying to have the person's title registered or for other action or relief which requires the services, certification or approval of the examiner.

 

Sec. 56.  Minnesota Statutes 2016, section 518A.79, is amended by adding a subdivision to read:

 

Subd. 3a.  Open meetings.  Except as otherwise provided in this section, the task force is subject to chapter 13D.  A meeting of the task force occurs when a quorum is present and the members receive information, discuss, or take action on any matter relating to the duties of the task force.  The task force may conduct meetings as provided in section 13D.015 or 13D.02.  The task force may conduct meetings at any location in the state that is appropriate for the purposes of the task force as long as the location is open and accessible to the public.  For legislative members of the task force, enforcement of this subdivision is governed by section 3.055, subdivision 2.  For nonlegislative members of the task force, enforcement of this subdivision is governed by section 13D.06, subdivisions 1 and 2.

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2304

Sec. 57.  COMMISSIONER OF REVENUE TO DETERMINE ADEQUACY OF CURRENT RULES AND VALUATION PRACTICES FOR STATE-ASSESSED PIPELINES.

 

The commissioner of revenue must review all current rules and practices relating to the valuation of pipeline companies that are assessed by the state.  The commissioner must determine whether current rules and practices provide accurate estimates of market value.  By February 1, 2018, the commissioner must prepare testimony for the house of representatives and senate committees having jurisdiction over property taxes recommending changes to the rules and practices to provide more accurate assessments and reduce the number and amount of judgments against the state and counties for state-assessed pipeline property.

 

Sec. 58.  FREE ELECTRONIC FILING OF INDIVIDUAL INCOME TAX RETURNS; PILOT PROGRAM.

 

(a) The commissioner must conduct a pilot program to test the free electronic filing requirement in Minnesota Statutes, section 270C.303.  The pilot program must operate at no fewer than three taxpayer assistance sites that receive grants under Minnesota Statutes, section 270C.21.  At least one of the pilot program sites must be in the seven-county metropolitan area, and at least one must be in greater Minnesota.  The pilot program system must be available by January 15, 2018, for the filing and payment of tax year 2017 individual income taxes of filers with income only from wages, fewer than five dependents, and federal adjusted gross income less than $200,000 for married couples filing joint returns, and less than $100,000 for all other filers.

 

(b) The system must automatically populate returns with taxpayer data available to the commissioner including but not limited to W-2 data on wages and state income tax withholding.

 

(c) For purposes of this section, "federal adjusted gross income" has the meaning given in section 62 of the Internal Revenue Code.  Other terms have the meanings given in Minnesota Statutes, chapter 290.

 

(d) By August 15, 2018, the commissioner must report final statistics on usage of the pilot program and on plans to implement tax year 2018 electronic filing as required in Minnesota Statutes, section 270C.303.  The report must comply with the requirements of Minnesota Statutes, sections 3.195 and 3.197.

 

Sec. 59.  INITIAL TRANSIT FINANCIAL ACTIVITY REPORTING.

 

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

 

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

 

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

 

Sec. 60.  LIMIT ON EXPENDITURES FOR ADVERTISING.

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2305

Sec. 61.  OFFICE OF MN.IT SERVICES; PERFORMANCE OUTCOMES REQUIRED.

 

Subdivision 1.  Completion of agency consolidation.  No later than December 31, 2018, the state chief information officer must complete the executive branch information technology consolidation required by Laws 2011, First Special Session chapter 10, article 4.  The head of any state agency subject to consolidation must assist the state chief information officer as necessary to implement the requirements of this subdivision.

 

Subd. 2.  Information technology efficiencies and solutions.  No later than December 31, 2018, the state chief information officer shall:

 

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

 

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

 

(3) operate no more than six data centers statewide.

 

Subd. 3.  Enterprise services; personnel efficiencies.  No later than June 30, 2019, the state chief information officer shall reduce the Office of MN.IT Services' total cost for enterprise services personnel by at least $3,000,000.

 

Subd. 4.  Legislative report; application consolidation.  No later than January 1, 2018, the state chief information officer must submit a report to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over state government finance on the status of business application software consolidation across state agencies.  At a minimum, the report must describe the outcomes achieved to date, a plan and timeline for continued consolidation of business application software with measurable outcome goals, and recommendations, if any, on legislation necessary to facilitate achievement of these goals.

 

Sec. 62.  STATE AUDITOR LITIGATION EXPENSES; SCHEDULE OF CHARGES.

 

Subdivision 1.  Litigation expenses; core functions of the state auditor.  (a) Unless funds are otherwise expressly provided by law for this purpose, all costs incurred by the state auditor in preparing and asserting a civil claim or appeal, or in defending against a civil claim or appeal, related to the proper exercise of the auditor's constitutionally authorized core functions must be paid by the auditor's constitutional office division.  Only allocations made to the constitutional office division on or before January 1, 2017, may be used to pay these costs.

 

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

 

Subd. 2.  Schedule of charges.  Notwithstanding Minnesota Statutes, section 6.581, subdivision 3, or any other law to the contrary, the rates included in the state auditor's schedule of charges for examinations conducted after June 30, 2017, must be no greater than the rates included in the schedule of charges established for examinations conducted in calendar year 2016.

 

Sec. 63.  TRANSITION; STATE AUDITOR ENTERPRISE FUND.

 

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


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2306

Sec. 64.  LIMIT ON INCREASE IN MANAGERIAL COMPENSATION.

 

During the biennium ending June 30, 2019, an employee covered by the managerial plan in Minnesota Statutes, section 43A.18, subdivision 3, may not be granted a percentage increase in annual salary that exceeds the lesser of:

 

(1) the percentage increase in Minnesota median household income, as determined by the American Community Survey compiled by the United States Bureau of the Census, for the most recent 12-month period for which data is available; or

 

(2) the percentage increase in the Consumer Price Index, as determined by the United States Bureau of Economic Analysis, for the most recent 12-month period for which data is available.

 

Sec. 65.  SALARY LIMIT.

 

Subdivision 1.  Executive branch.  (a) During the fiscal year ending June 30, 2018, the aggregate amount spent by all executive branch agencies on employee salaries may not exceed 101 percent of the aggregate amount these agencies spent on employee salaries in the fiscal year ending June 30, 2017.

 

(b) During the fiscal year ending June 30, 2019, the aggregate amount spent by all executive branch agencies on employee salaries may not exceed 103 percent of the aggregate amount these agencies spent on employee salaries in the fiscal year ending June 30, 2017.

 

(c) For purposes of this section, "executive branch" has the meaning given in Minnesota Statutes, section 43A.02, subdivision 22, and includes the Minnesota State Colleges and Universities but not constitutional offices.

 

Subd. 2.  Legislative branch.  (a) During the fiscal year ending June 30, 2018, the amount spent on employee salaries may not exceed 101 percent of the amount spent on these salaries during the fiscal year ending June 30, 2017, for:

 

(1) the house of representatives;

 

(2) the senate; and

 

(3) the Legislative Coordinating Commission and all groups under its jurisdiction.

 

(b) During the fiscal year ending June 30, 2019, the amount spent on employee salaries may not exceed 103 percent of the amount spent on these salaries during the fiscal year ending June 30, 2017, for:

 

(1) the house of representatives;

 

(2) the senate; and

 

(3) the Legislative Coordinating Commission and all groups under its jurisdiction.

 

Each entity listed in this subdivision must be treated separately for purposes of determining compliance, except that the Legislative Coordinating Commission and all groups under its jurisdiction must be treated as one unit.

 

Sec. 66.  REPEALER.

 

Subdivision 1.  Campaign subsidy.  Minnesota Statutes 2016, sections 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b, and 11; 10A.315; 10A.321; 10A.322, subdivisions 2 and 4; 10A.323; and 10A.324, subdivisions 1 and 3, and Minnesota Rules, parts 4503.1400, subparts 2, 3, 4, 5, 6, 7, 8, and 9; and 4503.1450, are


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2307

repealed effective July 1, 2017, and apply to elections held on or after that date.  Money in the account under Minnesota Statutes, section 10A.30, on June 30, 2017, cancels to the general fund, and amounts designated under Minnesota Statutes, section 10A.31, on income tax and property tax refund returns filed after June 30, 2017, are not effective and remain in the general fund.

 

Subd. 2.  State auditor enterprise fund.  Minnesota Statutes 2016, section 6.581, subdivision 1, is repealed.

 

Subd. 3.  Legislative commissions.  Minnesota Statutes 2016, sections 3.886; and 161.1419, are repealed.

 

ARTICLE 3

STATE BUDGETING TECHNICAL

 

Section 1.  Minnesota Statutes 2016, section 15.0596, is amended to read:

 

15.0596 ADDITIONAL COMPENSATION FROM CONTINGENT FUND PROHIBITED.

 

In all cases where the compensation of an officer of the state is fixed by law at a specified sum, it shall be unlawful for any such officer or employee to receive additional compensation for the performance of official services out of the contingent fund of the officer or the department, and it shall be unlawful for the head of any department of the state government to direct the payment of such additional compensation out of the contingent fund; and the commissioner of management and budget is hereby prohibited from issuing a warrant payment upon such contingent fund in payment of such additional compensation.

 

Every person offending against the provisions of this section shall be guilty of a misdemeanor.

 

Sec. 2.  Minnesota Statutes 2016, section 15.191, subdivision 1, is amended to read:

 

Subdivision 1.  Emergency disbursements.  Imprest cash funds for the purpose of making minor disbursements, providing for change, and providing employees with travel advances or a portion or all of their payroll warrant where the warrant payment has not been received through the payroll system, may be established by state departments or agencies from existing appropriations in the manner prescribed by this section.

 

Sec. 3.  Minnesota Statutes 2016, section 15.191, subdivision 3, is amended to read:

 

Subd. 3.  Warrant Payment against designated appropriation.  Imprest cash funds established under this section shall be created by warrant drawn payment issued against the appropriation designated by the commissioner of management and budget.

 

Sec. 4.  Minnesota Statutes 2016, section 16A.065, is amended to read:

 

16A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES DOCUMENTS.

 

Notwithstanding section 16A.41, subdivision 1, the commissioner may allow an agency to make advance deposits or payments for software or software maintenance services for state-owned or leased electronic data processing equipment, for information technology hosting services, for sole source maintenance agreements where it is not cost-effective to pay in arrears, for exhibit booth space or boat slip rental when required by the renter to guarantee the availability of space, for registration fees where advance payment is required or advance payment discount is provided, and for newspaper, magazine, and other subscription fees, and other costs where advance payment discount is provided or are customarily paid for in advance.  The commissioner may also allow advance deposits by any department with the Library of Congress and federal Supervisor of Documents for items to be purchased from those federal agencies.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2308

Sec. 5.  Minnesota Statutes 2016, section 16A.13, subdivision 2a, is amended to read:

 

Subd. 2a.  Procedure.  The commissioner shall see that the deduction for the withheld tax is made from an employee's pay on the payroll abstract.  The commissioner shall approve one warrant payable payment to the commissioner for the total amount deducted on the abstract.  Deductions from the pay of an employee paid direct by an agency shall be made by the employee's payroll authority.  A later deduction must correct an error made on an earlier deduction.  The paying authority shall see that a warrant or check payment for the deductions is promptly sent to the commissioner.  The commissioner shall deposit the amount of the warrant or check payment to the credit of the proper federal authority or other person authorized by federal law to receive it.

 

Sec. 6.  Minnesota Statutes 2016, section 16A.134, is amended to read:

 

16A.134 CHARITABLE ORGANIZATIONS PAYROLL DEDUCTIONS.

 

An employee's contribution to a registered combined charitable organization defined in section 43A.50 may be deducted from the employee's pay.  On the employee's written request, the commissioner shall deduct a requested amount from the pay of the employee for each pay period.  The commissioner shall issue a warrant payment in that amount to the specified organization.

 

Sec. 7.  Minnesota Statutes 2016, section 16A.15, subdivision 3, is amended to read:

 

Subd. 3.  Allotment and encumbrance.  (a) A payment may not be made without prior obligation.  An obligation may not be incurred against any fund, allotment, or appropriation unless the commissioner has certified a sufficient unencumbered balance or the accounting system shows sufficient allotment or encumbrance balance in the fund, allotment, or appropriation to meet it.  The commissioner shall determine when the accounting system may be used to incur obligations without the commissioner's certification of a sufficient unencumbered balance.  An expenditure or obligation authorized or incurred in violation of this chapter is invalid and ineligible for payment until made valid.  A payment made in violation of this chapter is illegal.  An employee authorizing or making the payment, or taking part in it, and a person receiving any part of the payment, are jointly and severally liable to the state for the amount paid or received.  If an employee knowingly incurs an obligation or authorizes or makes an expenditure in violation of this chapter or takes part in the violation, the violation is just cause for the employee's removal by the appointing authority or by the governor if an appointing authority other than the governor fails to do so.  In the latter case, the governor shall give notice of the violation and an opportunity to be heard on it to the employee and to the appointing authority.  A claim presented against an appropriation without prior allotment or encumbrance may be made valid on investigation, review, and approval by the agency head in accordance with the commissioner's policy, if the services, materials, or supplies to be paid for were actually furnished in good faith without collusion and without intent to defraud.  The commissioner may then draw a warrant to pay the claim just as properly allotted and encumbered claims are paid.

 

(b) The commissioner may approve payment for materials and supplies in excess of the obligation amount when increases are authorized by section 16C.03, subdivision 3.

 

(c) To minimize potential construction delay claims, an agency with a project funded by a building appropriation may allow a contractor to proceed with supplemental work within the limits of the appropriation before money is encumbered.  Under this circumstance, the agency may requisition funds and allow contractors to expeditiously proceed with a construction sequence.  While the contractor is proceeding, the agency shall immediately act to encumber the required funds.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2309

Sec. 8.  Minnesota Statutes 2016, section 16A.17, subdivision 5, is amended to read:

 

Subd. 5.  Payroll duties.  When the department prepares the payroll for an agency, the commissioner assumes the agency head's duties to make authorized or required deductions from, or employer contributions on, the pay of the agency's employees and to prepare and issue the necessary warrants payments.

 

Sec. 9.  Minnesota Statutes 2016, section 16A.272, subdivision 3, is amended to read:

 

Subd. 3.  Section 7.19 16A.271 to apply.  The provisions of Minnesota Statutes 1941, section 7.19 16A.271, shall apply to deposits of securities made pursuant to this section.

 

Sec. 10.  Minnesota Statutes 2016, section 16A.40, is amended to read:

 

16A.40 WARRANTS AND ELECTRONIC FUND TRANSFERS.

 

Money must not be paid out of the state treasury except upon the warrant of the commissioner or an electronic fund transfer approved by the commissioner.  Warrants must be drawn on printed blanks that are in numerical order.  The commissioner shall enter, in numerical order in a warrant payment register, the number, amount, date, and payee for every warrant payment issued.

 

The commissioner may require payees to supply their bank routing information to enable the payments to be made through an electronic fund transfer.

 

Sec. 11.  Minnesota Statutes 2016, section 16A.42, subdivision 2, is amended to read:

 

Subd. 2.  Approval.  If the claim is approved, the commissioner shall complete and sign a warrant issue a payment in the amount of the claim.

 

Sec. 12.  Minnesota Statutes 2016, section 16A.42, subdivision 4, is amended to read:

 

Subd. 4.  Register.  The commissioner shall enter a warrant payment in the warrant payment register as if it were a cash payment.

 

Sec. 13.  Minnesota Statutes 2016, section 16A.42, is amended by adding a subdivision to read:

 

Subd. 5.  Invalid claims.  If the commissioner determines that a claim is invalid after issuing a warrant, the commissioner may void an unpaid warrant.  The commissioner is not liable to any holder who took the void warrant for value.

 

Sec. 14.  Minnesota Statutes 2016, section 16A.56, is amended to read:

 

16A.56 COMMISSIONER'S RECEIPT AND CLAIM DUTIES.

 

The commissioner or a designee shall examine every receipt and claim, and if proper, approve them, name the account to be charged or credited, and issue warrants payments to pay claims.

 

Sec. 15.  Minnesota Statutes 2016, section 16A.671, subdivision 1, is amended to read:

 

Subdivision 1.  Authority; advisory recommendation.  To ensure that cash is available when needed to pay warrants make payments drawn on the general fund under appropriations and allotments, the commissioner may (1) issue certificates of indebtedness in anticipation of the collection of taxes levied for and other revenues appropriated to the general fund for expenditure during each biennium; and (2) issue additional certificates to refund outstanding certificates and interest on them, under the Constitution, article XI, section 6.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2310

Sec. 16.  Minnesota Statutes 2016, section 16B.37, subdivision 4, is amended to read:

 

Subd. 4.  Work of department for another.  To avoid duplication and improve efficiency, the commissioner may direct an agency to do work for another agency or may direct a division or section of an agency to do work for another division or section within the same agency and shall require reimbursement for the work.  Reimbursements received by an agency are reappropriated to the account making the original expenditure in accordance with the transfer warrant procedure established by the commissioner of management and budget.

 

Sec. 17.  Minnesota Statutes 2016, section 16D.03, subdivision 2, is amended to read:

 

Subd. 2.  State agency reports.  State agencies shall report quarterly to the commissioner of management and budget the debts owed to them.  The commissioner of management and budget, in consultation with the commissioners of revenue and human services, and the attorney general, shall establish internal guidelines for the recognition, tracking, and reporting, and collection of debts owed the state.  The internal guidelines must include accounting standards, performance measurements, and uniform reporting requirements applicable to all state agencies.  The commissioner of management and budget shall require a state agency to recognize, track, report, and attempt to collect debts according to the internal guidelines.  The commissioner, in consultation with the commissioner of management and budget and the attorney general, shall establish internal guidelines for the collection of debt owed to the state.

 

Sec. 18.  Minnesota Statutes 2016, section 16D.09, subdivision 1, is amended to read:

 

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

 

Sec. 19.  Minnesota Statutes 2016, section 21.116, is amended to read:

 

21.116 EXPENSES.

 

All necessary expenses incurred in carrying out the provisions of sections 21.111 to 21.122 and the compensation of officers, inspectors, and employees appointed, designated, or employed by the commissioner, as provided in such sections, together with their necessary traveling expenses, together with the traveling expenses of the members of the advisory seed potato certification committee, and other expenses necessary in attending committee meetings, shall be paid from, and only from, the seed potato inspection account, on order of the commissioner and commissioner of management and budget's voucher warrant budget.

 

Sec. 20.  Minnesota Statutes 2016, section 43A.30, subdivision 2, is amended to read:

 

Subd. 2.  Payroll deduction.  If an eligible person who is on any payroll of the state or an eligible person's dependents is enrolled for any of the optional coverages made available by the commissioner pursuant to section 43A.26 the commissioner of management and budget, upon the person's written order, shall deduct from the salary or wages of the person those amounts required from time to time to maintain the optional coverages in force, and issue a warrant payment therefor to the appropriate carrier.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2311

Sec. 21.  Minnesota Statutes 2016, section 43A.49, is amended to read:

 

43A.49 VOLUNTARY UNPAID LEAVE OF ABSENCE.

 

(a) Appointing authorities in state government may allow each employee to take unpaid leaves of absence for up to 1,040 hours in each two-year period beginning July 1 of each odd-numbered year.  Each appointing authority approving such a leave shall allow the employee to continue accruing vacation and sick leave, be eligible for paid holidays and insurance benefits, accrue seniority, and accrue service credit and credited salary in retirement plans as if the employee had actually been employed during the time of leave.  An employee covered by the unclassified plan may voluntarily make the employee contributions to the unclassified plan during the leave of absence.  If the employee makes these contributions, the appointing authority must make the employer contribution.  If the leave of absence is for one full pay period or longer, any holiday pay shall be included in the first payroll warrant payment after return from the leave of absence.  The appointing authority shall attempt to grant requests for the unpaid leaves of absence consistent with the need to continue efficient operation of the agency.  However, each appointing authority shall retain discretion to grant or refuse to grant requests for leaves of absence and to schedule and cancel leaves, subject to the applicable provisions of collective bargaining agreements and compensation plans.

 

(b) To receive eligible service credit and credited salary in a defined benefit plan, the member shall pay an amount equal to the applicable employee contribution rates.  If an employee pays the employee contribution for the period of the leave under this section, the appointing authority must pay the employer contribution.  The appointing authority may, at its discretion, pay the employee contributions.  Contributions must be made in a time and manner prescribed by the executive director of the applicable retirement system.

 

Sec. 22.  Minnesota Statutes 2016, section 49.24, subdivision 13, is amended to read:

 

Subd. 13.  Disposition of unclaimed dividends.  Upon the liquidation of any financial institution liquidated by the commissioner as statutory liquidator, if any dividends or other moneys set apart for the payment of claims remain unpaid, and the places of residence of the owners thereof are unknown to the commissioner, the commissioner may pay same into the state treasury as hereinafter provided.  Whenever the commissioner shall be satisfied that the process of liquidation should not be further continued the commissioner may make and certify triplicate lists of any such unclaimed dividends or other moneys, specifying the name of each owner, the amount due, and the last known address.  Upon one of such lists, to be retained by the commissioner shall be endorsed the commissioner's order that such unclaimed moneys be forthwith deposited in the state treasury.  When so deposited, one of said lists shall be delivered to the commissioner of management and budget and the commissioner shall retain in the commissioner's office such records and proofs concerning said claims as the commissioner may have, which shall thereafter remain on file in the office.  The commissioner of management and budget shall execute upon the list retained by the commissioner a receipt for such money, which shall operate as a full discharge of the commissioner on account of such claims.  At any time within six years after such receipt, but not afterward, the claimant may apply to the commissioner for the amount so deposited for the claimant's benefit, and upon proof satisfactory to the governor, the attorney general and the commissioner, or to a majority of them, they shall give an order to the commissioner of management and budget to issue a warrant payment for such amount, and such warrant payment shall thereupon be issued.  If no such claim be presented within six years, the commissioner shall so note upon the commissioner's copy of said list and certify the fact to the commissioner of management and budget who shall make like entries upon the commissioner of management and budget's corresponding lists; and all further claims to said money shall be barred.  Provided, that the commissioner of management and budget shall transfer to the commissioner of commerce's liquidation fund created by this section not to exceed 50 percent of the amount so turned over by the commissioner, to be used to partially defray expenses in connection with the liquidation of closed banks and the conduct of the liquidation division, in such amounts and at such times as the commissioner shall request.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2312

There is hereby appropriated to the persons entitled to such amounts, from such moneys in the state treasury not otherwise appropriated, an amount sufficient to make such payment.

 

Sec. 23.  Minnesota Statutes 2016, section 49.24, subdivision 16, is amended to read:

 

Subd. 16.  Transfers to liquidation fund.  The following moneys shall be transferred to and deposited in the commissioner of commerce's liquidation fund:

 

(1) All moneys paid to the commissioner of management and budget by the commissioner out of funds of any financial institution in the commissioner's hands as reimbursement for services and expenses pursuant to the provisions of subdivision 7.

 

(2) All moneys in the possession of the commissioner set aside for the purpose of meeting unforeseen and contingent expenses incident to the liquidation of closed financial institutions, which funds have been or shall be hereafter established by withholding portions of final liquidating dividends in such cases.

 

(3) All moneys which the commissioner shall request the commissioner of management and budget to transfer to such fund pursuant to the provisions of subdivision 13.

 

(4) All moneys in the possession of the commissioner now carried on the commissioner's books in "stamp account," "suspense account," and "unclaimed deposit account."

 

(5) All moneys in the possession of the commissioner which the commissioner may be authorized by order of any district court having jurisdiction of any liquidation proceedings to transfer to such fund, or to use for any of the purposes for which the fund is established.

 

(6) All moneys in the possession of the commissioner carried on the commissioner's books in the "unclaimed bonds account."  At any time within six years after any bond the proceeds of the sale of which constitute a portion of the moneys in this paragraph referred to came into the possession of the commissioner as liquidator of any financial institution, any claimant thereto may apply to the commissioner for the proceeds of the sale of such bond, and, upon proof satisfactory to the governor, the attorney general, and the commissioner, or a majority of them, they shall give an order to the commissioner of management and budget to issue a warrant payment for such amount, without interest, and such warrant payment shall thereupon be issued and the amount thereof paid out of the commissioner of commerce's liquidation fund.  If no such claim be presented within such period, all further claims to the proceeds of any such bond shall be barred.

 

(7) All sums which the commissioner may receive from the sale of personal property of liquidated financial institutions where the final dividend has been paid and no disposition of said property made by any order of the court, and the proceeds of sales of any personal property used by the liquidation division which have been purchased with funds of financial institutions in liquidation.

 

Sec. 24.  Minnesota Statutes 2016, section 69.031, subdivision 1, is amended to read:

 

Subdivision 1.  Commissioner's warrant payment.  (a) The commissioner of management and budget shall issue to the Public Employees Retirement Association on behalf of a municipality or independent nonprofit firefighting corporation that is a member of the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, to the Department of Natural Resources, the Department of Public Safety, or the county, municipality, or independent nonprofit firefighting corporation certified to the commissioner of management and budget by the commissioner a warrant payment for an amount equal to the amount of fire state aid or police state aid, whichever applies, certified for the applicable state aid recipient by the commissioner under section 69.021.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2313

(b) Fire state aid and police state aid is payable on October 1 annually.  The amount of state aid due and not paid by October 1 accrues interest payable to the state aid recipient at the rate of one percent for each month or part of a month that the amount remains unpaid after October 1.

 

Sec. 25.  Minnesota Statutes 2016, section 80A.65, subdivision 9, is amended to read:

 

Subd. 9.  Generally.  No filing for which a fee is required shall be deemed to be filed or given any effect until the proper fee is paid.  All fees and charges collected by the administrator shall be covered into the state treasury.  When any person is entitled to a refund under this section, the administrator shall certify to the commissioner of management and budget the amount of the fee to be refunded to the applicant, and the commissioner of management and budget shall issue a warrant in payment thereof out of the fund to which such fee was credited in the manner provided by law.  There is hereby appropriated to the person entitled to such refunds from the fund in the state treasury to which such fees were credited an amount to make such refunds and payments.

 

Sec. 26.  Minnesota Statutes 2016, section 84A.23, subdivision 4, is amended to read:

 

Subd. 4.  Drainage ditch bonds; reports.  (a) Immediately after a project is approved and accepted and then after each distribution of the tax collections on the June and November tax settlements, the county auditor shall certify to the commissioner of management and budget the following information relating to bonds issued to finance or refinance public drainage ditches wholly or partly within the projects, and the collection of assessments levied on account of the ditches:

 

(1) the amount of principal and interest to become due on the bonds before the next tax settlement and distribution;

 

(2) the amount of money collected from the drainage assessments and credited to the funds of the ditches; and

 

(3) the amount of the deficit in the ditch fund of the county chargeable to the ditches.

 

(b) On approving the certificate, the commissioner of management and budget shall draw a warrant issue a payment, payable out of the fund pertaining to the project, for the amount of the deficit in favor of the county.

 

(c) As to public drainage ditches wholly within a project, the amount of money paid to or for the benefit of the county under paragraph (b) must never exceed the principal and interest of the bonds issued to finance or refinance the ditches outstanding at the time of the passage and approval of sections 84A.20 to 84A.30, less money on hand in the county ditch fund to the credit of the ditches.  The liabilities must be reduced from time to time by the amount of all payments of assessments after April 25, 1931, made by the owners of lands assessed before that date for benefits on account of the ditches.

 

(d) As to public drainage ditches partly within and partly outside a project, the amount paid from the fund pertaining to the project to or for the benefit of the county must never exceed a certain percentage of bonds issued to finance and refinance the ditches so outstanding, less money on hand in the county ditch fund to the credit of the ditches on April 25, 1931.  The percentage must bear the same proportion to the whole amount of these bonds as the original benefits assessed against lands within the project bear to the original total benefits assessed to the entire system of the ditches.  This liability shall be reduced from time to time by the payments of all assessments extended after April 25, 1931, made by the owners of lands within the project of assessments for benefits assessed before that date on account of a ditch.

 

(e) The commissioner of management and budget may provide and prescribe forms for reports required by sections 84A.20 to 84A.30 and require any additional information from county officials that the commissioner of management and budget considers necessary for the proper administration of sections 84A.20 to 84A.30.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2314

Sec. 27.  Minnesota Statutes 2016, section 84A.33, subdivision 4, is amended to read:

 

Subd. 4.  Ditch bonds; funds; payments to counties.  (a) Upon the approval and acceptance of a project and after each distribution of the tax collections for the June and November tax settlements, the county auditor shall certify to the commissioner of management and budget the following information about bonds issued to finance or refinance public drainage ditches wholly or partly within the projects, and the collection of assessments levied for the ditches:

 

(1) the amount of principal and interest to become due on the bonds before the next tax settlement and distribution;

 

(2) the amount of money collected from the drainage assessments and credited to the funds of the ditches, not already sent to the commissioner of management and budget as provided in sections 84A.31 to 84A.42; and

 

(3) the amount of the deficit in the ditch fund of the county chargeable to the ditches.

 

(b) On approving this certificate of the county auditor, the commissioner of management and budget shall draw a warrant issue a payment, payable out of the fund provided for in sections 84A.31 to 84A.42, and send it to the county treasurer of the county.  These funds must be credited to the proper ditch of the county and placed in the ditch bond fund of the county, which is created, and used only to pay the ditch bonded indebtedness of the county assumed by the state under sections 84A.31 to 84A.42.  The total amount of warrants drawn payments issued must not exceed in any one year the total amount of the deficit provided for under this section.

 

(c) The state is subrogated to all title, right, interest, or lien of the county in or on the lands so certified within these projects.

 

(d) As to public drainage ditches wholly within a project, the amount paid to, or for the benefit of, the county under this subdivision must never exceed the principal and interest of the bonds issued to finance or refinance a ditch outstanding on April 22, 1933, less money on hand in the county ditch fund to the credit of a ditch.  These liabilities must be reduced from time to time by the amount of any payments of assessments extended after April 22, 1933, made by the owners of lands assessed before that date for benefits on account of the ditches.

 

As to public drainage ditches partly within and partly outside a project the amount paid from the fund pertaining to the project to or for the benefit of the county must never exceed a certain percentage of bonds issued to finance and refinance a ditch so outstanding, less money on hand in the county ditch fund to the credit of a ditch on April 22, 1932.  The percentage must bear the same proportion to the whole amount of the bonds as the original benefits assessed against these lands within the project bear to the original total benefits assessed to the entire system for a ditch.  This liability must be reduced from time to time by the payments of all assessments extended after April 22, 1933, made by the owners of lands within the project of assessments for benefits assessed before that date on account of a ditch.

 

Sec. 28.  Minnesota Statutes 2016, section 84A.40, is amended to read:

 

84A.40 COUNTY MAY ASSUME BONDS.

 

Any county where a project or portion of it is located may voluntarily assume, in the manner specified in this section, the obligation to pay a portion of the principal and interest of the bonds issued before the approval and acceptance of the project and remaining unpaid at maturity, of any school district or town in the county and wholly or partly within the project.  The portion must bear the same proportion to the whole of the unpaid principal and interest as the last net tax capacity, before the acceptance of the project, of lands then acquired by the state under sections 84A.31 to 84A.42 in the school districts or towns bears to the total net tax capacity for the same year of the


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2315

school district or town.  This assumption must be evidenced by a resolution of the county board of the county.  A copy of the resolution must be certified to the commissioner of management and budget within one year after the acceptance of the project.

 

Later, if any of the bonds remains unpaid at maturity, the county board shall, upon demand of the governing body of the school district or town or of a bondholder, provide for the payment of the portion assumed.  The county shall levy general taxes on all the taxable property of the county for that purpose, or issue its bonds to raise the sum needed, conforming to law respecting the issuance of county refunding bonds.  The proceeds of taxes or bonds must be paid by the county treasurer to the treasurer of the school district or town.  No payments shall be made by the county to the school district or town until the money in the treasury of the school district or town, together with the money to be paid by the county, is sufficient to pay in full each of the bonds as it becomes due.

 

If a county fails to adopt and certify the resolution, the commissioner of management and budget shall withhold from the payments to be made to the county under section 84A.32 a sum equal to that portion of the principal and interest of the outstanding bonds that bears the same proportion to the whole of the bonds as the above determined net tax capacity of lands acquired by the state within the project bears to the total net tax capacity for the same year of the school district or town.  Money withheld from the county must be set aside in the state treasury and not paid to the county until the full principal and interest of the school district and town bonds have been paid.

 

If any bonds remain unpaid at maturity, upon the demand of the governing body of the school district or town, or a bondholder, the commissioner of management and budget shall issue to the treasurer of the school district or town a warrant payment for that portion of the past due principal and interest computed as in the case of the county's liability authorized in this section to be voluntarily assumed.  Money received by a school district or town under this section must be applied to the payment of past-due bonds and interest.

 

Sec. 29.  Minnesota Statutes 2016, section 84A.52, is amended to read:

 

84A.52 ACCOUNTS; EXAMINATION, APPROPRIATION, PAYMENT.

 

As a part of the examination provided for by section 6.481, of the accounts of the several counties within a game preserve, area, or project established under section 84A.01, 84A.20, or 84A.31, the state auditor shall segregate the audit of the accounts reflecting the receipt and disbursement of money collected or disbursed under this chapter or from the sale of tax-forfeited lands held by the state under section 84A.07, 84A.26, or 84A.36.  The auditor shall also include in the reports required by section 6.481 summary statements as of December 31 before the examination that set forth the proportionate amount of principal and interest due from the state to the individual county and any money due the state from the county remaining unpaid under this chapter, or from the sale of any tax-forfeited lands referred to in this section, and other information required by the commissioner of management and budget.  On receiving a report, the commissioner of management and budget shall determine the net amount due to the county for the period covered by the report and shall draw a warrant issue a payment upon the state treasury payable out of the consolidated fund for that amount.  It must be paid to and received by the county as payment in full of all amounts due for the period stated on the warrants payments from the state under any provision of this chapter.

 

Money to pay the warrants make the payments is appropriated to the counties entitled to payment from the consolidated fund in the state treasury.

 

Sec. 30.  Minnesota Statutes 2016, section 88.12, subdivision 1, is amended to read:

 

Subdivision 1.  Limitation.  The compensation and expenses of persons temporarily employed in emergencies in suppression or control of wildfires shall be fixed by the commissioner of natural resources or an authorized agent and paid as provided by law.  Such compensation shall not exceed the maximum rate for comparable labor established as provided by law or rules, but shall not be subject to any minimum rate so established.  The


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2316

commissioner is authorized to draw and expend from money appropriated for the purposes of sections 88.03 to 88.22 a reasonable sum and through forest officers or other authorized agent be used in paying emergency expenses, including just compensation for services rendered by persons summoned and for private property used, damaged, or appropriated under sections 88.03 to 88.22.  The commissioner of management and budget is authorized to draw a warrant issue a payment for this sum when duly approved by the commissioner.  The commissioner or agent in charge shall take proper subvouchers or receipts from all persons to whom these moneys are paid, and after these subvouchers have been approved they shall be filed with the commissioner of management and budget.  Authorized funds as herein provided at any time shall be deposited, subject to withdrawal or disbursement by check or otherwise for the purposes herein prescribed, in a bank authorized and bonded to receive state deposits; and the bond of this bank to the state shall cover and include this deposit.

 

Sec. 31.  Minnesota Statutes 2016, section 94.522, is amended to read:

 

94.522 TRANSMISSION OF WARRANTS PAYMENTS TO COUNTY TREASURERS; USE OF PROCEEDS.

 

It shall be the duty of the commissioner of management and budget to transmit warrants on payments from the state treasury to the county treasurer of the respective counties for the sums that may be due in accordance with section 94.521, which sums are hereby appropriated out of the state treasury from the amounts received from the United States government pursuant to the aforesaid acts of Congress, and such money shall be used by the counties receiving the same for the purposes and in the proportions herein provided.

 

Sec. 32.  Minnesota Statutes 2016, section 94.53, is amended to read:

 

94.53 WARRANT PAYMENT TO COUNTY TREASURERS; FEDERAL LOANS TO COUNTIES.

 

It shall be the duty of the commissioner of management and budget to transmit warrants on payments from the state treasury to the county treasurers of the respective counties for the sum that may be due in accordance with sections 94.52 to 94.54, which sum or sums are hereby appropriated out of the state treasury from the amounts received from the United States government pursuant to the aforesaid act of Congress.  The commissioner of management and budget, upon being notified by the federal government or any agencies thereof that a loan has been made to any such county the repayment of which is to be made from such fund, is authorized to transmit a warrant or warrants payment to the federal government or any agency thereof sufficient to repay such loan out of any money apportioned or due to such county under the provisions of such act of Congress, approved May 23, 1908 (Statutes at Large, volume 35, page 260).

 

Sec. 33.  Minnesota Statutes 2016, section 116J.64, subdivision 7, is amended to read:

 

Subd. 7.  Processing.  (a) An Indian desiring a loan for the purpose of starting a business enterprise or expanding an existing business shall make application to the appropriate tribal government.  The application shall be forwarded to the appropriate eligible organization, if it is participating in the program, for consideration in conformity with the plans submitted by said tribal governments.  The tribal government may approve the application if it determines that the loan would advance the goals of the Indian business loan program.  If the tribal government is not participating in the program, the agency may directly approve or deny the loan application.

 

(b) If the application is approved, the tribal government shall forward the application, together with all relevant documents pertinent thereto, to the commissioner of the agency, who shall cause a warrant request a payment to be drawn in favor of issued to the applicant or the applicable tribal government, or the agency, if it is administering the loan, with appropriate notations identifying the borrower.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2317

(c) The tribal government, eligible organization, or the agency, if it is administering the loan, shall maintain records of transactions for each borrower in a manner consistent with good accounting practice.  The interest rate on a loan shall be established by the tribal government or the agency, but may be no less than two percent per annum nor more than ten percent per annum.  When any portion of a debt is repaid, the tribal government, eligible organization, or the agency, if it is administering the loan, shall remit the amount so received plus interest paid thereon to the commissioner of management and budget through the agency.  The amount so received shall be credited to the Indian business loan account.

 

(d) On the placing of a loan, additional money equal to ten percent of the total amount made available to any tribal government, eligible organization, or the agency, if it is administering the loan, for loans during the fiscal year shall be paid to the tribal government, eligible organization, or the agency, prior to December 31 for the purpose of financing administrative costs.

 

Sec. 34.  Minnesota Statutes 2016, section 126C.55, subdivision 2, is amended to read:

 

Subd. 2.  Notifications; payment; appropriation.  (a) If a school district or intermediate school district believes that it may be unable to make a principal or interest payment on any outstanding debt obligation on the date that payment is due, it must notify the commissioner as soon as possible, but not less than 15 working days before the date that principal or interest payment is due.  The notice must include the name of the school district or intermediate school district, an identification of the debt obligation issue in question, the date the payment is due, the amount of principal and interest due on the payment date, the amount of principal or interest that the school district or intermediate school district will be unable to repay on that date, the paying agent for the debt obligation, the wire transfer instructions to transfer funds to that paying agent, and an indication as to whether a payment is being requested by the school district or intermediate school district under this section.  If a paying agent becomes aware of a potential default, it shall inform the commissioner of that fact.  After receipt of a notice which requests a payment under this section, after consultation with the school district or intermediate school district and the paying agent, and after verification of the accuracy of the information provided, the commissioner shall notify the commissioner of management and budget of the potential default.  The notice must include a final figure as to the amount due that the school district or intermediate school district will be unable to repay on the date due.

 

(b) Except as provided in subdivision 9, upon receipt of this notice from the commissioner, the commissioner of management and budget shall issue a warrant payment and authorize the commissioner of education to pay to the paying agent for the debt obligation the specified amount on or before the date due.  The amounts needed for the purposes of this subdivision are annually appropriated to the department from the state general fund.

 

(c) The Departments of Education and Management and Budget must jointly develop detailed procedures for school districts and intermediate school districts to notify the state that they have obligated themselves to be bound by the provisions of this section, procedures for school districts or intermediate school districts and paying agents to notify the state of potential defaults and to request state payment under this section, and procedures for the state to expedite payments to prevent defaults.  The procedures are not subject to chapter 14.

 

Sec. 35.  Minnesota Statutes 2016, section 126C.55, subdivision 9, is amended to read:

 

Subd. 9.  State bond rating.  If the commissioner of management and budget determines that the credit rating of the state would be adversely affected thereby, the commissioner of management and budget shall not issue warrants payments under subdivision 2 for the payment of principal or interest on any debt obligations for which a district did not, prior to their issuance, obligate itself to be bound by the provisions of this section.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2318

Sec. 36.  Minnesota Statutes 2016, section 126C.68, subdivision 3, is amended to read:

 

Subd. 3.  Warrant Payment.  The commissioner shall issue to each district whose note has been so received a warrant payment on the debt service loan account of the maximum effort school loan fund, payable on presentation to the commissioner of management and budget out of any money in such account.  The warrant payment shall be issued by the commissioner in sufficient time to coincide with the next date on which the district is obligated to make principal or interest payments on its bonded debt in the ensuing year.  Interest must accrue from the date such warrant payment is issued.  The proceeds thereof must be used by the district to pay principal or interest on its bonded debt falling due in the ensuing year.

 

Sec. 37.  Minnesota Statutes 2016, section 126C.69, subdivision 14, is amended to read:

 

Subd. 14.  Participation by county auditor; record of contract; payment of loan.  The district must file a copy of the capital loan contract with the county auditor of each county in which any part of the district is situated.  The county auditor shall enter the capital loan, evidenced by the contract, in the auditor's bond register.  The commissioner shall keep a record of each capital loan and contract showing the name and address of the district, the date of the contract, and the amount of the loan initially approved.  On receipt of the resolution required in subdivision 12, the commissioner shall issue warrants payments, which may be dispersed in accordance with the schedule in the contract, on the capital loan account for the amount that may be disbursed under subdivision 1.  Interest on each disbursement of the capital loan amount accrues from the date on which the commissioner of management and budget issues the warrant payment.

 

Sec. 38.  Minnesota Statutes 2016, section 127A.34, subdivision 1, is amended to read:

 

Subdivision 1.  Copy to commissioner of management and budget; appropriation.  The commissioner shall furnish a copy of the apportionment of the school endowment fund to the commissioner of management and budget, who thereupon shall draw warrants on issue payments from the state treasury, payable to the several districts, for the amount due each district.  There is hereby annually appropriated from the school endowment fund the amount of such apportionments.

 

Sec. 39.  Minnesota Statutes 2016, section 127A.40, is amended to read:

 

127A.40 MANNER OF PAYMENT OF STATE AIDS.

 

It shall be the duty of the commissioner to deliver to the commissioner of management and budget a certificate for each district entitled to receive state aid under the provisions of this chapter.  Upon the receipt of such certificate, it shall be the duty of the commissioner of management and budget to draw a warrant in favor of issue a payment to the district for the amount shown by each certificate to be due to the district.  The commissioner of management and budget shall transmit such warrants payments to the district together with a copy of the certificate prepared by the commissioner.

 

Sec. 40.  Minnesota Statutes 2016, section 136F.46, subdivision 1, is amended to read:

 

Subdivision 1.  Request; warrant payment.  The commissioner of management and budget, upon the written request of an employee of the board, may deduct from an employee's salary or wages the amount requested for payment to a nonprofit state college or university foundation meeting the requirements in subdivision 2.  The commissioner shall issue a warrant payment for the deducted amount to the nonprofit foundation.  The Penny Fellowship and the Nellie Stone Johnson Scholarship Program of the Minnesota State University Student Association shall be considered nonprofit state college and university foundations for purposes of this section.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2319

Sec. 41.  Minnesota Statutes 2016, section 136F.70, subdivision 3, is amended to read:

 

Subd. 3.  Refunds.  The board may make refunds to students for tuition, activity fees, union fees, and any other fees from imprest cash funds.  The imprest cash fund shall be reimbursed periodically by checks or warrants drawn on payments issued from the funds and accounts to which the refund should ultimately be charged.  The amounts necessary to pay the refunds are appropriated from the funds and accounts to which they are charged.

 

Sec. 42.  Minnesota Statutes 2016, section 162.08, subdivision 10, is amended to read:

 

Subd. 10.  Project approval, reports.  When the county board of any county determines to do any construction work on a county state-aid highway or other road eligible for the expenditure of state aid funds within the county, and desires to expend on such work a portion of the money apportioned or allocated to it out of the county state-aid highway fund, the county shall first obtain approval of the project by the commissioner.  Thereafter the county engineer shall make such reports in such manner as the commissioner requires under rules of the commissioner.  Upon receipt of satisfactory reports, the commissioner shall certify to the commissioner of management and budget the amount of money that is eligible to be paid from the county's apportionment or allocation for the work under contract or actually completed.  The commissioner of management and budget shall thereupon issue a warrant payment in that amount payable to the county treasurer.  In no event shall the warrant payment with all other warrants payments issued exceed the amount apportioned and allocated to the county.

 

Sec. 43.  Minnesota Statutes 2016, section 162.08, subdivision 11, is amended to read:

 

Subd. 11.  Certification required to issue warrants payment.  The commissioner of management and budget shall not issue any warrants payments without the certification of the commissioner.

 

Sec. 44.  Minnesota Statutes 2016, section 162.14, subdivision 4, is amended to read:

 

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

 

Sec. 45.  Minnesota Statutes 2016, section 162.14, subdivision 5, is amended to read:

 

Subd. 5.  Certification required to issue warrant payment.  The commissioner of management and budget shall not issue any warrants payments as provided for in subdivision 4 without the prior certification of the commissioner.

 

Sec. 46.  Minnesota Statutes 2016, section 162.18, subdivision 4, is amended to read:

 

Subd. 4.  Certification to commissioner of money required.  Any municipality issuing and selling bonds pursuant to this section shall certify to the commissioner the amount of money required annually for the payment of principal and interest on the obligation.  Upon receipt thereof, the commissioner shall certify to the commissioner of management and budget the sum of money needed annually by the municipality for the principal and interest, provided that the amount certified by the commissioner shall not exceed the limit heretofore specified.  The


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2320

commissioner of management and budget shall thereafter, until said bonds are retired, issue a warrant payment annually in the amount certified payable to the fiscal officer of the municipality, and the amount thereof shall be deposited by the fiscal officer in the sinking fund from which the obligations are payable.

 

Sec. 47.  Minnesota Statutes 2016, section 162.181, subdivision 4, is amended to read:

 

Subd. 4.  Certification to commissioner of money required.  Any county issuing and selling bonds pursuant to this section shall certify to the commissioner the amount of money required annually for the payment of principal and interest on the obligation.  Upon receipt thereof, the commissioner shall certify to the commissioner of management and budget the sum of money needed annually by the county for the principal and interest, provided that the amount certified by the commissioner shall not exceed the limit heretofore specified.  The commissioner of management and budget shall thereafter, until said bonds are retired, issue a warrant payment annually in the amount certified payable to the county treasurer of the county, and the amount thereof shall be deposited by the county treasurer in the sinking fund from which the obligations are payable.

 

Sec. 48.  Minnesota Statutes 2016, section 163.051, subdivision 3, is amended to read:

 

Subd. 3.  Distribution to county; appropriation.  On a monthly basis, the registrar of motor vehicles shall issue a warrant payment in favor of the treasurer of each county for which the registrar has collected a wheelage tax in the amount of such tax then on hand in the county wheelage tax account.  There is hereby appropriated from the county wheelage tax account each year, to each county entitled to payments authorized by this section, sufficient moneys to make such payments.

 

Sec. 49.  Minnesota Statutes 2016, section 176.181, subdivision 2, is amended to read:

 

Subd. 2.  Compulsory insurance; self-insurers.  (a) Every employer, except the state and its municipal subdivisions, liable under this chapter to pay compensation shall insure payment of compensation with some insurance carrier authorized to insure workers' compensation liability in this state, or obtain a written order from the commissioner of commerce exempting the employer from insuring liability for compensation and permitting self‑insurance of the liability.  The terms, conditions and requirements governing self-insurance shall be established by the commissioner pursuant to chapter 14.  The commissioner of commerce shall also adopt, pursuant to paragraph (d), rules permitting two or more employers, whether or not they are in the same industry, to enter into agreements to pool their liabilities under this chapter for the purpose of qualifying as group self-insurers.  With the approval of the commissioner of commerce, any employer may exclude medical, chiropractic and hospital benefits as required by this chapter.  An employer conducting distinct operations at different locations may either insure or self-insure the other portion of operations as a distinct and separate risk.  An employer desiring to be exempted from insuring liability for compensation shall make application to the commissioner of commerce, showing financial ability to pay the compensation, whereupon by written order the commissioner of commerce, on deeming it proper, may make an exemption.  An employer may establish financial ability to pay compensation by providing financial statements of the employer to the commissioner of commerce.  Upon ten days' written notice the commissioner of commerce may revoke the order granting an exemption, in which event the employer shall immediately insure the liability.  As a condition for the granting of an exemption the commissioner of commerce may require the employer to furnish security the commissioner of commerce considers sufficient to insure payment of all claims under this chapter, consistent with subdivision 2b.  If the required security is in the form of currency or negotiable bonds, the commissioner of commerce shall deposit it with the commissioner of management and budget.  In the event of any default upon the part of a self-insurer to abide by any final order or decision of the commissioner of labor and industry directing and awarding payment of compensation and benefits to any employee or the dependents of any deceased employee, then upon at least ten days' notice to the self-insurer, the commissioner of commerce may by written order to the commissioner of management and budget require the commissioner of management and budget to sell the pledged and assigned securities or a part thereof necessary to pay the full amount of any such claim or award with interest thereon.  This authority to sell may be exercised from time to time to satisfy any order or award


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2321

of the commissioner of labor and industry or any judgment obtained thereon.  When securities are sold the money obtained shall be deposited in the state treasury to the credit of the commissioner of commerce and awards made against any such self-insurer by the commissioner of commerce shall be paid to the persons entitled thereto by the commissioner of management and budget upon warrants prepared payments requested by the commissioner of commerce out of the proceeds of the sale of securities.  Where the security is in the form of a surety bond or personal guaranty the commissioner of commerce, at any time, upon at least ten days' notice and opportunity to be heard, may require the surety to pay the amount of the award, the payments to be enforced in like manner as the award may be enforced.

 

(b) No association, corporation, partnership, sole proprietorship, trust or other business entity shall provide services in the design, establishment or administration of a group self-insurance plan under rules adopted pursuant to this subdivision unless it is licensed, or exempt from licensure, pursuant to section 60A.23, subdivision 8, to do so by the commissioner of commerce.  An applicant for a license shall state in writing the type of activities it seeks authorization to engage in and the type of services it seeks authorization to provide.  The license shall be granted only when the commissioner of commerce is satisfied that the entity possesses the necessary organization, background, expertise, and financial integrity to supply the services sought to be offered.  The commissioner of commerce may issue a license subject to restrictions or limitations, including restrictions or limitations on the type of services which may be supplied or the activities which may be engaged in.  The license is for a two-year period.

 

(c) To assure that group self-insurance plans are financially solvent, administered in a fair and capable fashion, and able to process claims and pay benefits in a prompt, fair and equitable manner, entities licensed to engage in such business are subject to supervision and examination by the commissioner of commerce.

 

(d) To carry out the purposes of this subdivision, the commissioner of commerce may promulgate administrative rules pursuant to sections 14.001 to 14.69.  These rules may:

 

(1) establish reporting requirements for administrators of group self-insurance plans;

 

(2) establish standards and guidelines consistent with subdivision 2b to assure the adequacy of the financing and administration of group self-insurance plans;

 

(3) establish bonding requirements or other provisions assuring the financial integrity of entities administering group self-insurance plans;

 

(4) establish standards, including but not limited to minimum terms of membership in self-insurance plans, as necessary to provide stability for those plans;

 

(5) establish standards or guidelines governing the formation, operation, administration, and dissolution of self‑insurance plans; and

 

(6) establish other reasonable requirements to further the purposes of this subdivision.

 

Sec. 50.  Minnesota Statutes 2016, section 176.581, is amended to read:

 

176.581 PAYMENT TO STATE EMPLOYEES.

 

Upon a warrant request prepared by the commissioner of administration, and in accordance with the terms of the order awarding compensation, the commissioner of management and budget shall pay compensation to the employee or the employee's dependent.  These payments shall be made from money appropriated for this purpose.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2322

Sec. 51.  Minnesota Statutes 2016, section 176.591, subdivision 3, is amended to read:

 

Subd. 3.  Compensation payments upon warrants request.  The commissioner of management and budget shall make compensation payments from the fund only as authorized by this chapter upon warrants request of the commissioner of administration.

 

Sec. 52.  Minnesota Statutes 2016, section 192.55, is amended to read:

 

192.55 PAYMENTS TO BE MADE THROUGH ADJUTANT GENERAL.

 

All pay and allowances and necessary expenses for any of the military forces shall, when approved by the adjutant general, be paid by the commissioner of management and budget's warrants issued budget to the several officers and enlisted members entitled thereto; provided, that upon the request of the adjutant general, approved by the governor, the sum required for any such pay or allowances and necessary expenses shall be paid by the commissioner of management and budget's warrant budget to the adjutant general, who shall immediately pay and distribute the same to the several officers or enlisted members entitled thereto or to their commanding officers or to a finance officer designated by the adjutant general.  The receipt of any such commanding officer or finance officer for any such payment shall discharge the adjutant general from liability therefor.  Every commanding officer or finance officer receiving any such payment shall, as soon as practicable, pay and distribute the same to the several officers or enlisted members entitled thereto.  The officer making final payment shall, as evidence thereof, secure the signature of the person receiving the same upon a payroll or other proper voucher.

 

Sec. 53.  Minnesota Statutes 2016, section 196.052, is amended to read:

 

196.052 GIFT ACCEPTANCE AND INVESTMENT.

 

On the behalf of the state, the commissioner may accept any gift, grant, bequest, or devise made for the purposes of this chapter and chapter 197.  The commissioner must administer the funds as directed by the donor.  All funds must be deposited in the state treasury and credited to the veterans affairs endowment, bequest, and devises fund.  The balance of the fund is annually appropriated to the commissioner of veterans affairs to accomplish the purposes of this chapter and chapter 197.  Funds received by the commissioner under this section in excess of current needs must be invested by the State Board of Investment in accordance with section 11A.24.  Disbursements from this fund must be in the manner provided for the issuance of other state warrants payments.  The commissioner may refuse to accept any gift, grant, bequest, or devise if acceptance would not be in the best interest of the state or Minnesota's veterans.

 

Sec. 54.  Minnesota Statutes 2016, section 198.16, is amended to read:

 

198.16 PLANNED GIVING.

 

The commissioner is authorized to accept on behalf of the state any gift, grant, bequest, or devise made for the purposes of this chapter, and administer the same as directed by the donor.  All proceeds therefrom including money derived from the sale of any real or personal property must be deposited in the state treasury, invested by the State Board of Investment in accordance with sections 11A.24 and 11A.25, and credited to the Minnesota veterans home endowment, bequest, and devises fund.  That fund consists of separate accounts for investing general and restricted gifts, money, and donations received and for any currently expendable proceeds.

 

The commissioner shall maintain records of all gifts received, clearly showing the identity of the donor, the purpose of the donation, and the ultimate disposition of the donation.  Each donation must be duly receipted and must be expended or used by the commissioner as nearly in accordance with the condition of the gift or donation as is compatible with the best interests of the residents of the homes.  Money in the fund is appropriated to the commissioner for the purposes for which it was received.  Disbursements from this fund shall be made in the manner provided for the issuance of other state warrants payments.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2323

Whenever the commissioner shall deem it advisable, in accordance with law, to sell or otherwise dispose of any real or personal property thus acquired, the commissioner of administration upon the request of the commissioner shall sell or otherwise dispose of said property in the manner provided by law for the sale or disposition of other state property by the commissioner of administration.

 

Sec. 55.  Minnesota Statutes 2016, section 237.30, is amended to read:

 

237.30 TELEPHONE INVESTIGATION FUND; APPROPRIATION.

 

A Minnesota Telephone Investigation Fund shall exist for the use of the Department of Commerce and of the attorney general in investigations, valuations, and revaluations under section 237.295.  All sums paid by the telephone companies to reimburse the department for its expenses pursuant to section 237.295 shall be credited to the revolving fund and shall be deposited in a separate bank account and not commingled with any other state funds or moneys, but any balance in excess of $25,000 in the revolving fund at the end of each fiscal year shall be paid into the state treasury and credited to the general fund.  All subsequent credits to said revolving fund shall be paid upon the warrant of by the commissioner of management and budget upon application of the department or of the attorney general to an aggregate amount of not more than one-half of such sums to each of them, which proportion shall be constantly maintained in all credits and withdrawals from the revolving fund.

 

Sec. 56.  Minnesota Statutes 2016, section 241.13, subdivision 1, is amended to read:

 

Subdivision 1.  Contingent account.  The commissioner of corrections may permit a contingent account to remain in the hands of the accounting officer of any such institution from which expenditures may be made in case of actual emergency requiring immediate payment to prevent loss or danger to the institution or its inmates and for the purpose of paying freight, purchasing produce, livestock and other commodities requiring a cash settlement, and for the purpose of discounting bills incurred, but in all cases subject to revision by the commissioner of corrections.  An itemized statement of every expenditure made during the month from such account shall be submitted to the commissioner under rules established by the commissioner.  If necessary, the commissioner shall make proper requisition upon the commissioner of management and budget for a warrant payment to secure the contingent account for each institution.

 

Sec. 57.  Minnesota Statutes 2016, section 244.19, subdivision 7, is amended to read:

 

Subd. 7.  Certificate of counties entitled to state aid.  On or before January 1 of each year, until 1970 and on or before April 1 thereafter, the commissioner of corrections shall deliver to the commissioner of management and budget a certificate in duplicate for each county of the state entitled to receive state aid under the provisions of this section.  Upon the receipt of such certificate, the commissioner of management and budget shall draw a warrant in favor of issue a payment to the county treasurer for the amount shown by each certificate to be due to the county specified.  The commissioner of management and budget shall transmit such warrant payment to the county treasurer together with a copy of the certificate prepared by the commissioner of corrections.

 

Sec. 58.  Minnesota Statutes 2016, section 256B.20, is amended to read:

 

256B.20 COUNTY APPROPRIATIONS.

 

The providing of funds necessary to carry out the provisions hereof on the part of the counties and the manner of administering the funds of the counties and the state shall be as follows:

 

(1) The board of county commissioners of each county shall annually set up in its budget an item designated as the county medical assistance fund and levy taxes and fix a rate therefor sufficient to produce the full amount of such item, in addition to all other tax levies and tax rate, however fixed or determined, sufficient to carry out the


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2324

provisions hereof and sufficient to pay in full the county share of assistance and administrative expense for the ensuing year; and annually on or before October 10 shall certify the same to the county auditor to be entered by the auditor on the tax rolls.  Such tax levy and tax rate shall make proper allowance and provision for shortage in tax collections.

 

(2) Any county may transfer surplus funds from any county fund, except the sinking or ditch fund, to the general fund or to the county medical assistance fund in order to provide money necessary to pay medical assistance awarded hereunder.  The money so transferred shall be used for no other purpose, but any portion thereof no longer needed for such purpose shall be transferred back to the fund from which taken.

 

(3) Upon the order of the county agency the county auditor shall draw a warrant on the proper fund in accordance with the order, and the county treasurer shall pay out the amounts ordered to be paid out as medical assistance hereunder.  When necessary by reason of failure to levy sufficient taxes for the payment of the medical assistance in the county, the county auditor shall carry any such payments as an overdraft on the medical assistance funds of the county until sufficient tax funds shall be provided for such assistance payments.  The board of county commissioners shall include in the tax levy and tax rate in the year following the year in which such overdraft occurred, an amount sufficient to liquidate such overdraft in full.

 

(4) Claims for reimbursement and reports shall be presented to the state agency by the respective counties as required under section 256.01, subdivision 2, paragraph (p).  The state agency shall audit such claims and certify to the commissioner of management and budget the amounts due the respective counties without delay.  The amounts so certified shall be paid within ten days after such certification, from the state treasury upon warrant payment of the commissioner of management and budget from any money available therefor.  The money available to the state agency to carry out the provisions hereof, including all federal funds available to the state, shall be kept and deposited by the commissioner of management and budget in the revenue fund and disbursed upon warrants in the same manner as other state funds.

 

Sec. 59.  Minnesota Statutes 2016, section 260B.331, subdivision 2, is amended to read:

 

Subd. 2.  Cost of group foster care.  Whenever a child is placed in a group foster care facility as provided in section 260B.198, subdivision 1, clause (2) or (3), item (v), the cost of providing the care shall, upon certification by the juvenile court, be paid from the welfare fund of the county in which the proceedings were held.  To reimburse the counties for the costs of providing group foster care for delinquent children and to promote the establishment of suitable group foster homes, the state shall quarterly, from funds appropriated for that purpose, reimburse counties 50 percent of the costs not paid by federal and other available state aids and grants.  Reimbursement shall be prorated if the appropriation is insufficient.

 

The commissioner of corrections shall establish procedures for reimbursement and certify to the commissioner of management and budget each county entitled to receive state aid under the provisions of this subdivision.  Upon receipt of a certificate the commissioner of management and budget shall issue a state warrant payment to the county treasurer for the amount due, together with a copy of the certificate prepared by the commissioner of corrections.

 

Sec. 60.  Minnesota Statutes 2016, section 260C.331, subdivision 2, is amended to read:

 

Subd. 2.  Cost of group foster care.  Whenever a child is placed in a group foster care facility as provided in section 260C.201, subdivision 1, paragraph (b), clause (2) or (3), the cost of providing the care shall, upon certification by the juvenile court, be paid from the welfare fund of the county in which the proceedings were held.  To reimburse the counties for the costs of promoting the establishment of suitable group foster homes, the state shall quarterly, from funds appropriated for that purpose, reimburse counties 50 percent of the costs not paid by federal and other available state aids and grants.  Reimbursement shall be prorated if the appropriation is insufficient.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2325

The commissioner of corrections shall establish procedures for reimbursement and certify to the commissioner of management and budget each county entitled to receive state aid under the provisions of this subdivision.  Upon receipt of a certificate the commissioner of management and budget shall issue a state warrant payment to the county treasurer for the amount due, together with a copy of the certificate prepared by the commissioner of corrections.

 

Sec. 61.  Minnesota Statutes 2016, section 273.121, subdivision 1, is amended to read:

 

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

 

Sec. 62.  Minnesota Statutes 2016, section 287.08, is amended to read:

 

287.08 TAX, HOW PAYABLE; RECEIPTS.

 

(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any county in this state in which the real property or some part is located at or before the time of filing the mortgage for record.  The treasurer shall endorse receipt on the mortgage and the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes any county recorder or registrar of titles to record the mortgage.  Its form, in substance, shall be "registration tax hereon of ..................... dollars paid."  If the mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from registration tax."  In either case the receipt must be signed by the treasurer.  In case the treasurer is unable to determine whether a claim of exemption should be allowed, the tax must be paid as in the case of a taxable mortgage.  For documents submitted electronically, the endorsements and tax amount shall be affixed electronically and no signature by the treasurer will be required.  The actual payment method must be arranged in advance between the submitter and the receiving county.

 

(b) The county treasurer may refund in whole or in part any mortgage registry tax overpayment if a written application by the taxpayer is submitted to the county treasurer within 3-1/2 years from the date of the overpayment.  If the county has not issued a denial of the application, the taxpayer may bring an action in Tax Court in the county


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2326

in which the tax was paid at any time after the expiration of six months from the time that the application was submitted.  A denial of refund may be appealed within 60 days from the date of the denial by bringing an action in Tax Court in the county in which the tax was paid.  The action is commenced by the serving of a petition for relief on the county treasurer, and by filing a copy with the court.  The county attorney shall defend the action.  The county treasurer shall notify the treasurer of each county that has or would receive a portion of the tax as paid.

 

(c) If the county treasurer determines a refund should be paid, or if a refund is ordered by the court, the county treasurer of each county that actually received a portion of the tax shall immediately pay a proportionate share of three percent of the refund using any available county funds.  The county treasurer of each county that received, or would have received, a portion of the tax shall also pay their county's proportionate share of the remaining 97 percent of the court-ordered refund on or before the 20th day of the following month using solely the mortgage registry tax funds that would be paid to the commissioner of revenue on that date under section 287.12.  If the funds on hand under this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in which the action was brought shall file a claim with the commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the remaining portion upon receipt of a warrant payment from the state issued pursuant to the claim.

 

(d) When any mortgage covers real property located in more than one county in this state the total tax must be paid to the treasurer of the county where the mortgage is first presented for recording, and the payment must be receipted as provided in paragraph (a).  If the principal debt or obligation secured by such a multiple county mortgage exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by the county treasurer receiving it, on or before the 20th day of each month after receipt, to the county or counties entitled in the ratio that the estimated market value of the real property covered by the mortgage in each county bears to the estimated market value of all the real property in this state described in the mortgage.  In making the division and payment the county treasurer shall send a statement giving the description of the real property described in the mortgage and the estimated market value of the part located in each county.  For this purpose, the treasurer of any county may require the treasurer of any other county to certify to the former the estimated market value of any tract of real property in any mortgage.

 

(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12.  The mortgagee may undertake to collect and remit the tax on behalf of the mortgagor.  If the mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax collected for that purpose and the mortgagor is relieved of any further obligation to pay the tax as to the amount collected by the mortgagee for this purpose.

 

Sec. 63.  Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:

 

Subdivision 1.  Cities of the first class.  (a) The commissioner shall order and direct a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross premiums, less return premiums, on all direct business received by any licensed foreign or domestic fire insurance company on property in a city of the first class, or by its agents for it, in cash or otherwise.

 

(b) By July 31 and December 31 of each year, the commissioner of management and budget shall pay issue to each city of the first class a warrant payment for an amount equal to the total amount of the surcharge on the premiums collected within that city since the previous payment.

 

(c) The treasurer of the city shall place the money received under this subdivision in a special account or fund to defray all or a portion of the employer contribution requirement of public employees police and fire plan coverage for city firefighters.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2327

Sec. 64.  Minnesota Statutes 2016, section 299C.21, is amended to read:

 

299C.21 PENALTY ON LOCAL OFFICER REFUSING INFORMATION.

 

If any public official charged with the duty of furnishing to the bureau fingerprint records, biological specimens, reports, or other information required by sections 299C.06, 299C.10, 299C.105, 299C.11, 299C.17, shall neglect or refuse to comply with such requirement, the bureau, in writing, shall notify the state, county, or city officer charged with the issuance of a warrant for the payment of the salary of such official.  Upon the receipt of the notice the state, county, or city official shall withhold the issuance of a warrant for the payment of the salary or other compensation accruing to such officer for the period of 30 days thereafter until notified by the bureau that such suspension has been released by the performance of the required duty.

 

Sec. 65.  Minnesota Statutes 2016, section 348.05, is amended to read:

 

348.05 COMMISSIONER OF MANAGEMENT AND BUDGET TO ISSUE WARRANT PAYMENT.

 

The commissioner of management and budget shall audit all such claims, and, on the first Monday of October, in each year, shall issue a warrant payment to the several claimants for the amount to which each is entitled; but, if the aggregate of compensation due to all such claimants shall exceed the appropriation therefor, the commissioner shall distribute the available amount amongst them pro rata, which distribution shall relieve the state from further obligation to such claimants for the year.

 

Sec. 66.  Minnesota Statutes 2016, section 352.04, subdivision 9, is amended to read:

 

Subd. 9.  Erroneous deductions, canceled warrants payments.  (a) Deductions taken from the salary of an employee for the retirement fund in excess of required amounts must, upon discovery and verification by the department making the deduction, be refunded to the employee.

 

(b) If a deduction for the retirement fund is taken from a salary warrant or check payment, and the check payment is canceled or the amount of the warrant or check payment returned to the funds of the department making the payment, the sum deducted, or the part of it required to adjust the deductions, must be refunded to the department or institution if the department applies for the refund on a form furnished by the director.  The department's payments must likewise be refunded to the department.

 

(c) If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the plan and any other plans specified in section 356.99, that section applies.  If the employee should have been covered by the plan governed by chapter 352D, 353D, 354B, or 354D, the employee deductions and employer contributions taken in error must be directly transferred to the applicable employee's account in the correct retirement plan, with interest at the rate of 0.71 percent per month until June 30, 2015, and 0.667 percent per month thereafter, compounded annually, from the first day of the month following the month in which coverage should have commenced in the correct defined contribution plan until the end of the month in which the transfer occurs.

 

Sec. 67.  Minnesota Statutes 2016, section 352.05, is amended to read:

 

352.05 COMMISSIONER OF MANAGEMENT AND BUDGET TO BE TREASURER OF SYSTEM.

 

The commissioner of management and budget is ex officio treasurer of the retirement funds of the system.  The general bond to the state shall cover all liability for actions as treasurer of these funds.  Funds of the system received by the commissioner of management and budget must be set aside in the state treasury to the credit of the proper fund.  The commissioner of management and budget shall deliver to the director copies of all payroll abstracts of the state together with the commissioner of management and budget's warrants payments covering the deductions made


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2328

on these payroll abstracts for the retirement fund.  The director shall have a list made of the commissioner of management and budget's warrants payments.  These warrants payments must then be credited to the retirement fund.  The commissioner of management and budget shall pay out of this fund only upon abstracts signed by the director, or by the finance officer designated by the director during the disability or the absence of the director from the city of St. Paul, Minnesota.  Abstracts for investments may be signed by the executive director of the State Board of Investment.

 

Sec. 68.  Minnesota Statutes 2016, section 352.115, subdivision 12, is amended to read:

 

Subd. 12.  Death, return of warrants payments.  If at the time of death a retired employee, a disabled employee, or a survivor has in possession the commissioner of management and budget's warrants payments covering a retirement annuity, disability benefit, or survivor benefit from the retirement fund, in the absence of probate proceedings, and upon the return of the warrants payments for cancellation, payment of the accrued annuity or benefit, shall be made as provided in subdivision 11, or 352.12, subdivision 4.  Payments made under this subdivision shall be a bar to recovery by any other person or persons.

 

Sec. 69.  Minnesota Statutes 2016, section 352.12, subdivision 13, is amended to read:

 

Subd. 13.  Refund, beneficiary.  If upon death a former employee has in possession a commissioner of management and budget's warrant payment which does not exceed $1,000 covering a refund of accumulated contributions in the retirement fund, in the absence of probate proceedings the commissioner of management and budget's warrant payment may be returned for cancellation, and then upon application made by the last designated beneficiary of the deceased former employee, refund of the accumulated contributions must be paid to the last designated beneficiary.  Payments made under this subdivision are a bar to recovery by any other person or persons.

 

Sec. 70.  Minnesota Statutes 2016, section 353.05, is amended to read:

 

353.05 CUSTODIAN OF FUNDS.

 

The commissioner of management and budget shall be ex officio treasurer of the retirement funds of the association and the general bond of the commissioner of management and budget to the state must be so conditioned as to cover all liability for acts as treasurer of these funds.  All money of the association received by the commissioner of management and budget must be set aside in the state treasury to the credit of the proper fund or account.  The commissioner of management and budget shall transmit monthly to the executive director a detailed statement of all amounts so received and credited to the funds.  Payments out of the funds may only be made on warrants as payments issued by the commissioner of management and budget, upon abstracts signed by the executive director; provided that abstracts for investment may be signed by the executive director of the State Board of Investment.

 

Sec. 71.  Minnesota Statutes 2016, section 353.27, subdivision 7, is amended to read:

 

Subd. 7.  Adjustment for erroneous receipts or disbursements.  (a) Except as provided in paragraph (b), erroneous employee deductions and erroneous employer contributions and additional employer contributions to the general employees retirement plan of the Public Employees Retirement Association or to the public employees police and fire retirement plan for a person who otherwise does not qualify for membership under this chapter, are considered:

 

(1) valid if the initial erroneous deduction began before January 1, 1990.  Upon determination of the error by the association, the person may continue membership in the association while employed in the same position for which erroneous deductions were taken, or file a written election to terminate membership and apply for a refund upon termination of public service or defer an annuity under section 353.34; or


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2329

(2) invalid, if the initial erroneous employee deduction began on or after January 1, 1990.  Upon determination of the error, the association shall refund all erroneous employee deductions and all erroneous employer contributions as specified in paragraph (e).  No person may claim a right to continued or past membership in the association based on erroneous deductions which began on or after January 1, 1990.

 

(b) Erroneous deductions taken from the salary of a person who did not qualify for membership in the general employees retirement plan of the Public Employees Retirement Association or in the public employees police and fire retirement plan by virtue of concurrent employment before July 1, 1978, which required contributions to another retirement fund or relief association established for the benefit of officers and employees of a governmental subdivision, are invalid.  Upon discovery of the error, allowable service credit for all invalid service if forfeited and, upon termination of public service, the association shall refund all erroneous employee deductions to the person, with interest as determined under section 353.34, subdivision 2, and all erroneous employer contributions without interest to the employer.  This paragraph has both retroactive and prospective application.

 

(c) Adjustments to correct employer contributions and employee deductions taken in error from amounts which are not salary under section 353.01, subdivision 10, must be made as specified in paragraph (e).  The period of adjustment must be limited to the fiscal year in which the error is discovered by the association and the immediate two preceding fiscal years.

 

(d) If there is evidence of fraud or other misconduct on the part of the employee or the employer, the board of trustees may authorize adjustments to the account of a member or former member to correct erroneous employee deductions and employer contributions on invalid salary and the recovery of any overpayments for a period longer than provided for under paragraph (c).

 

(e) Upon discovery of the receipt of erroneous employee deductions and employer contributions under paragraph (a), clause (2), or paragraph (c), the association must require the employer to discontinue the erroneous employee deductions and erroneous employer contributions reported on behalf of a member.  Upon discontinuation, the association must:

 

(1) for a member, provide a refund in the amount of the invalid employee deductions with interest on the invalid employee deductions at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is made;

 

(2) for a former member who:

 

(i) is not receiving a retirement annuity or benefit, return the erroneous employee deductions to the former member through a refund with interest at the rate specified under section 353.34, subdivision 2, from the received date of each invalid salary transaction through the date the credit or refund is made; or

 

(ii) is receiving a retirement annuity or disability benefit, or a person who is receiving an optional annuity or survivor benefit, for whom it has been determined an overpayment must be recovered, adjust the payment amount and recover the overpayments as provided under this section; and

 

(3) return the invalid employer contributions reported on behalf of a member or former member to the employer by providing a credit against future contributions payable by the employer.

 

(f) In the event that a salary warrant or check payment from which a deduction for the retirement fund was taken has been canceled or the amount of the warrant or check payment returned to the funds of the department making the payment, a refund of the sum deducted, or any portion of it that is required to adjust the deductions, must be made to the department or institution.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2330

(g) If the association discovers that a retirement annuity, survivor benefit, or disability benefit has been incorrectly calculated by using invalid service or salary, or due to any erroneous calculation procedure, the association must recalculate the annuity or benefit payable and begin payment of the corrected annuity or benefit effective the first of the month following discovery of the error.  Any overpayment resulting from the incorrect calculation must be recovered as provided under subdivision 7b, if the accrual date, or any adjustment in the amount of the annuity or benefit calculated after the accrual date, except adjustments required under section 353.656, subdivision 4, falls within the current fiscal year and the two immediate previous fiscal years.

 

(h) Notwithstanding the provisions of this subdivision, the association may apply the Revenue Procedures defined in the federal Internal Revenue Service Employee Plans Compliance Resolution System and not issue a refund of erroneous employee deductions and employer contributions or not recover a small overpayment of benefits if the cost to correct the error would exceed the amount of the member refund or overpayment.

 

(i) Any fees or penalties assessed by the federal Internal Revenue Service for any failure by an employer to follow the statutory requirements for reporting eligible members and salary must be paid by the employer.

 

Sec. 72.  Minnesota Statutes 2016, section 354.42, subdivision 7, is amended to read:

 

Subd. 7.  Erroneous salary deductions or direct payments.  (a) Any deductions taken from the salary of an employee for the retirement fund in excess of amounts required must be refunded to the employee upon the discovery of the error and after the verification of the error by the employing unit making the deduction.  The corresponding excess employer contribution and excess additional employer contribution amounts attributable to the erroneous salary deduction must be refunded to the employing unit.

 

(b) If salary deductions and employer contributions were erroneously transmitted to the retirement fund and should have been transmitted to the plan covered by chapter 352D, 353D, 354B, or 354D, the executive director must transfer these salary deductions and employer contributions to the account of the appropriate person under the applicable plan.  The transfer to the applicable defined contribution plan account must include interest at the rate of 0.71 percent per month, compounded annually, from the first day of the month following the month in which coverage should have commenced in the defined contribution plan until the end of the month in which the transfer occurs.

 

(c) A potential transfer under paragraph (b) that would cause the plan to fail to be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, must not be made by the executive director.  Within 30 days after being notified by the Teachers Retirement Association of an unmade potential transfer under this paragraph, the employer of the affected person must transmit an amount representing the applicable salary deductions and employer contributions, without interest, to the account of the applicable person under the appropriate plan.  The retirement association must provide a credit for the amount of the erroneous salary deductions and employer contributions against future contributions from the employer.

 

(d) If a salary warrant or check payment from which a deduction for the retirement fund was taken has been canceled or the amount of the warrant or if a check payment has been returned to the funds of the employing unit making the payment, a refund of the amount deducted, or any portion of it that is required to adjust the salary deductions, must be made to the employing unit.

 

(e) Erroneous direct payments of member-paid contributions or erroneous salary deductions that were not refunded during the regular payroll cycle processing must be refunded to the member, plus interest computed using the rate and method specified in section 354.49, subdivision 2.

 

(f) Any refund under this subdivision that would cause the plan to fail to be a qualified plan under section 401(a) of the Internal Revenue Code, as amended, may not be refunded and instead must be credited against future contributions payable by the employer.  The employer is responsible for refunding to the applicable employee any amount that was erroneously deducted from the salary of the employee, with interest as specified in paragraph (e).


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2331

(g) If erroneous employee deductions and employer contributions are caused by an error in plan coverage involving the plan and any other plan specified in section 356.99, that section applies.

 

Sec. 73.  Minnesota Statutes 2016, section 354.52, subdivision 4, is amended to read:

 

Subd. 4.  Reporting and remittance requirements.  An employer shall remit all amounts due to the association and furnish a statement indicating the amount due and transmitted with any other information required by the executive director.  If an amount due is not received by the association within 14 calendar days of the payroll warrant payment, the amount accrues interest at an annual rate of 8.5 percent compounded annually from the due date until the amount is received by the association.  All amounts due and other employer obligations not remitted within 60 days of notification by the association must be certified to the commissioner of management and budget who shall deduct the amount from any state aid or appropriation amount applicable to the employing unit.

 

Sec. 74.  Minnesota Statutes 2016, section 354.52, subdivision 4b, is amended to read:

 

Subd. 4b.  Payroll cycle reporting requirements.  An employing unit shall provide the following data to the association for payroll warrants payments on an ongoing basis within 14 calendar days after the date of the payroll warrant payments in a format prescribed by the executive director:

 

(1) association member number;

 

(2) employer-assigned employee number;

 

(3) Social Security number;

 

(4) amount of each salary deduction;

 

(5) amount of salary as defined in section 354.05, subdivision 35, from which each deduction was made;

 

(6) reason for payment;

 

(7) the beginning and ending dates of the payroll period covered and the date of actual payment;

 

(8) fiscal year of salary earnings;

 

(9) total remittance amount including employee, employer, and additional employer contributions;

 

(10) reemployed annuitant salary under section 354.44, subdivision 5; and

 

(11) other information as may be required by the executive director.

 

Sec. 75.  Minnesota Statutes 2016, section 401.15, subdivision 1, is amended to read:

 

Subdivision 1.  Certified statements; determinations; adjustments.  Within 60 days of the end of each calendar quarter, participating counties which have received the payments authorized by section 401.14 shall submit to the commissioner certified statements detailing the amounts expended and costs incurred in furnishing the correctional services provided in sections 401.01 to 401.16.  Upon receipt of certified statements, the commissioner shall, in the manner provided in sections 401.10 and 401.12, determine the amount each participating county is entitled to receive, making any adjustments necessary to rectify any disparity between the amounts received pursuant to the estimate provided in section 401.14 and the amounts actually expended.  If the amount received pursuant to the estimate is greater than the amount actually expended during the quarter, the commissioner may


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2332

withhold the difference from any subsequent monthly payments made pursuant to section 401.14.  Upon certification by the commissioner of the amount a participating county is entitled to receive under the provisions of section 401.14 or of this subdivision the commissioner of management and budget shall thereupon issue a state warrant payment to the chief fiscal officer of each participating county for the amount due together with a copy of the certificate prepared by the commissioner.

 

Sec. 76.  Minnesota Statutes 2016, section 446A.086, subdivision 4, is amended to read:

 

Subd. 4.  Notifications; payment; appropriation.  (a) After receipt of a notice of a default or potential default in payment of principal or interest in debt obligations covered by this section or an agreement under this section, and after consultation with the governmental unit and the paying agent, and after verification of the accuracy of the information provided, the authority shall notify the commissioner of the potential default.  The notice must include a final figure as to the amount due that the governmental unit will be unable to repay on the date due.

 

(b) Upon receipt of this notice from the authority, the commissioner shall issue a warrant payment and authorize the authority to pay to the bond holders or paying agent for the debt obligation the specified amount on or before the date due.  The amounts needed for the purposes of this subdivision are annually appropriated to the authority from the general fund.

 

Sec. 77.  Minnesota Statutes 2016, section 446A.16, subdivision 1, is amended to read:

 

Subdivision 1.  Functions of commissioner of management and budget.  Except as otherwise provided in this section, money of the authority must be paid to the commissioner of management and budget as agent of the authority and the commissioner shall not commingle the money with other money.  The money in the accounts of the authority must be paid out only on warrants drawn by the commissioner of management and budget on requisition of the chair of the authority or of another officer or employee as the authority authorizes.  Deposits of the authority's money must, if required by the commissioner or the authority, be secured by obligations of the United States or of the state of a market value equal at all times to the amount of the deposit and all banks and trust companies are authorized to give security for the deposits.

 

Sec. 78.  Minnesota Statutes 2016, section 462A.18, subdivision 1, is amended to read:

 

Subdivision 1.  Functions of commissioner of management and budget.  All moneys of the agency, except as otherwise authorized or provided in this section, shall be paid to the commissioner of management and budget as agent of the agency, who shall not commingle such moneys with any other moneys.  The moneys in such accounts shall be paid out on warrants drawn by the commissioner on requisition of the chair of the agency or of such other officer or employee as the agency shall authorize to make such requisition.  All deposits of such moneys shall, if required by the commissioner or the agency, be secured by obligations of the United States or of the state of a market value equal at all times to the amount of the deposit and all banks and trust companies are authorized to give such security for such deposits.

 

Sec. 79.  Minnesota Statutes 2016, section 475A.04, subdivision 1, is amended to read:

 

Subdivision 1.  Procedure.  In the event that funds sufficient to pay all of the principal and interest due on any guaranteed bond are not in the hands of the municipal treasurer or the paying agent at least 15 days before the due date, the treasurer or agent shall report the amount of the deficiency to the paying agent and the auditor who shall grant a loan to the issuer in this amount and shall certify to the issuer, the paying agent, and the auditor and treasurer of each county in which property subject to taxation by the issuer is situated, the amount of the loan and interest to accrue thereon to the due date of the loan, and the commissioner of management and budget shall issue a warrant payment for the principal amount and shall remit it to the paying agent on or before the due date.  If the municipal treasurer fails to deposit funds with the paying agent sufficient to pay all principal and interest due on any


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2333

guaranteed bond on any date, without having previously given the notice herein required, the paying agent may report the amount of the deficiency to the commissioner of management and budget, who shall forthwith grant a loan to the issuer for this amount plus interest to accrue thereon for one month at the rate represented by the coupons then due, and the loan shall be certified and remitted as provided above.  The paying agent may advance its own funds for the payment of any guaranteed bonds and interest due for which it has not received sufficient funds from the municipality, and may contract with the municipality to make such advances, and shall be entitled to reimbursement therefor from the proceeds of the loan, with interest at the rate represented by the coupons due.  The issuing municipality shall give a receipt to the commissioner of management and budget for the amount of the loan and interest.

 

Sec. 80.  Minnesota Statutes 2016, section 525.841, is amended to read:

 

525.841 ESCHEAT RETURNED.

 

In all such cases the commissioner of management and budget shall be furnished with a certified copy of the court's order assigning the escheated property to the persons entitled thereto, and upon notification of payment of the estate tax, the commissioner of management and budget shall draw a warrant issue a payment or execute a proper conveyance to the persons designated in such order.  In the event any escheated property has been sold pursuant to sections 11A.04, clause (9), and 11A.10, subdivision 2, or 16B.281 to 16B.287, then the warrant payment shall be for the appraised value as established during the administration of the decedent's estate.  There is hereby annually appropriated from any moneys in the state treasury not otherwise appropriated an amount sufficient to make payment to all such designated persons.  No interest shall be allowed on any amount paid to such persons.

 

ARTICLE 4

ADMINISTRATIVE RULEMAKING

 

Section 1.  Minnesota Statutes 2016, section 3.842, subdivision 4a, is amended to read:

 

Subd. 4a.  Objections to rules or proposed rules.  (a) For purposes of this subdivision, "committee" means the house of representatives policy committee or senate policy committee with primary jurisdiction over state governmental operations.  The commission or a committee may object to a rule or proposed rule as provided in this subdivision.  If the commission or a committee objects to all or some portion of a rule because the commission or committee considers it to be on the grounds that the rule or proposed rule:

 

(1) is beyond the procedural or substantive authority delegated to the agency, including a proposed rule submitted under section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph (c);

 

(2) is inconsistent with the enabling statute;

 

(3) is unnecessary or redundant;

 

(4) has a substantial economic impact as defined in section 14.02, subdivision 5;

 

(5) is not based on sound, reasonably available scientific, technical, economic, or other information;

 

(6) is not cost-effective;

 

(7) is unduly burdensome; or

 

(8) is more restrictive than the standard, limitation, or requirement imposed by federal law or rule pertaining to the same subject matter.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2334

If the commission or committee objects to all or some portion of a rule or proposed rule, the commission or committee may shall file that objection in the Office of the Secretary of State.  The filed objection must contain a concise statement of the commission's or committee's reasons for its action.  An objection to a proposed rule submitted by the commission or a committee under section 14.15, subdivision 4, or 14.26, subdivision 3, paragraph (c), may not be filed before the rule is adopted For a proposed rule, the objection must be filed within 30 days of receipt of the notice under section 14.14, 14.22, 14.386, 14.388, 14.389, or 14.3895.

 

(b) The secretary of state shall affix to each objection a certification of the date and time of its filing and as soon after the objection is filed as practicable shall electronically transmit a certified copy of it to the agency issuing the rule in question and to the revisor of statutes.  The secretary of state shall also maintain a permanent register open to public inspection of all objections by the commission or committee.

 

(c) The commission or committee shall publish and index an objection filed under this section in the next issue of the State Register.  The revisor of statutes shall indicate the existence of the objection adjacent to the rule in question when that rule is published in Minnesota Rules.

 

(d) Within 14 days after the filing of an objection by the commission or committee to a rule or proposed rule, the issuing agency shall respond in writing to the objecting entity.  After receipt of the response, the commission or committee may withdraw or modify its objection.  After the filing of an objection that is not subsequently withdrawn, the agency may not adopt the rule until the legislature adjourns the annual legislative session that began after the objection was filed.  If the commission files an objection that is not subsequently withdrawn, the commission must, as soon as practical, make a recommendation on a bill that approves the proposed rule, prohibits adoption of the proposed rule, or amends or repeals the law governing a previously adopted rule for which an objection was filed.

 

(e) After the filing of an objection by the commission or committee that is not subsequently withdrawn, the burden is upon the agency in any proceeding for judicial review or for enforcement of the rule to establish that the whole or portion of the rule objected to is valid and demonstrates that the objection raised under paragraph (a) is not justified, based on the criteria for objecting to a rule under paragraph (a).

 

(f) The failure of the commission or a committee to object to a rule is not an implied legislative authorization of its validity.

 

(g) In accordance with sections 14.44 and 14.45, the commission or a committee may petition for a declaratory judgment to determine the validity of a rule objected to by the commission or committee.  The action must be started within two years after an objection is filed in the Office of the Secretary of State.

 

(h) The commission or a committee may intervene in litigation arising from agency action.  For purposes of this paragraph, agency action means the whole or part of a rule, or the failure to issue a rule.

 

Sec. 2.  Minnesota Statutes 2016, section 10A.02, subdivision 13, is amended to read:

 

Subd. 13.  Rules.  (a) Chapter 14 applies to the board.  The board may adopt rules to carry out the purposes of this chapter if, before June 1, 2017, the board has published a notice of intent to adopt a rule without public hearing under section 14.22, subdivision 1, 14.389, subdivision 2, or 14.3895, subdivision 3; a dual notice under section 14.22, subdivision 2; or a notice of hearing on a proposed rule under section 14.14.

 

(b) After May 31, 2017, the board may only adopt rules that:

 

(1) incorporate specific changes set forth in applicable statutes when no interpretation of law is required; or

 

(2) make changes to rules that do not alter the sense, meaning, or effect of a rule.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2335

(c) In addition to the notice required under chapter 14, the board shall notify the chairs and ranking minority members of the committees or subcommittees in the senate and house of representatives with primary jurisdiction over elections within seven calendar days of taking the following actions:

 

(1) publication of a notice of intent to adopt rules or a notice of hearing;

 

(2) publication of proposed rules in the State Register;

 

(3) issuance of a statement of need and reasonableness; or

 

(4) adoption of final rules.

 

EFFECTIVE DATE.  This section is effective the day following final enactment for rules for which a notice of intent to adopt a rule without public hearing under Minnesota Statutes, section 14.22, subdivision 1, 14.389, subdivision 2, or 14.3895, subdivision 3; a dual notice under Minnesota Statutes, section 14.22, subdivision 2; or a notice of hearing on a proposed rule under Minnesota Statutes, section 14.14, was published before June 1, 2017.

 

Sec. 3.  Minnesota Statutes 2016, section 10A.025, subdivision 1a, is amended to read:

 

Subd. 1a.  Electronic filing.  A report or statement required to be filed under this chapter may be filed electronically.  The board shall adopt rules to regulate on the technical aspects of regulating electronic filing and to ensure ensuring that the electronic filing process is secure.

 

Sec. 4.  Minnesota Statutes 2016, section 14.002, is amended to read:

 

14.002 STATE REGULATORY POLICY.

 

The legislature recognizes the important and sensitive role for administrative rules in implementing policies and programs created by the legislature.  However, the legislature finds that some regulatory rules and programs have become overly prescriptive and inflexible, thereby increasing costs to the state, local governments, and the regulated community and decreasing the effectiveness of the regulatory program.  Therefore, whenever feasible, state agencies must develop rules and regulatory programs that emphasize superior achievement in meeting the agency's regulatory objectives and maximum flexibility for the regulated party and the agency in meeting those goals.

 

Sec. 5.  Minnesota Statutes 2016, section 14.02, is amended by adding a subdivision to read:

 

Subd. 5.  Substantial economic impact.  A rule has a "substantial economic impact" if the rule would result in, or likely result in:

 

(1) an adverse effect or impact on the private-sector economy of the state of Minnesota of $5,000,000 or more in a single year;

 

(2) a significant increase in costs or prices for consumers, individual private-sector industries, state agencies, local governments, individuals, or private-sector enterprises within certain geographic regions inside the state of Minnesota;

 

(3) significant adverse impacts on the competitiveness of private-sector Minnesota-based enterprises, or on private-sector employment, investment, productivity, or innovation within the state of Minnesota; or


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2336

(4) compliance costs, in the first year after the rule takes effect, of more than $25,000 for any one business that has fewer than 50 full-time employees, or for any one statutory or home rule charter city that has fewer than ten full‑time employees.

 

Sec. 6.  Minnesota Statutes 2016, section 14.05, subdivision 1, is amended to read:

 

Subdivision 1.  Authority to adopt original rules restricted.  (a) Each agency shall adopt, amend, suspend, or repeal its rules:

 

(1) in accordance with the procedures specified in sections 14.001 to 14.69, and;

 

(2) only pursuant to authority delegated by law; and

 

(3) in full compliance with its duties and obligations.

 

(b) If a law authorizing rules is repealed, the rules adopted pursuant to that law are automatically repealed on the effective date of the law's repeal unless there is another law authorizing the rules.

 

(c) Except as provided in section sections 14.055, 14.06, 14.388, 14.389, and 14.3895, sections 14.001 to 14.69 shall not be authority for an agency to adopt, amend, suspend, or repeal rules.

 

Sec. 7.  Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to read:

 

Subd. 1a.  Limitation regarding certain policies, guidelines, and other interpretive statements.  An agency shall not seek to implement or enforce against any person a policy, guideline, or other interpretive statement that meets the definition of a rule under this chapter if the policy, guideline, or other interpretive statement has not been adopted as a rule in accordance with this chapter including but not limited to solid waste policy plan revisions authorized by other law.  In any proceeding under chapter 14 challenging an agency action prohibited by this subdivision, the reviewing authority must independently and without deference to the agency determine if the agency has violated this subdivision.  The agency must overcome the presumption that its action may not be enforced as a rule.

 

Sec. 8.  Minnesota Statutes 2016, section 14.05, subdivision 2, is amended to read:

 

Subd. 2.  Authority to modify proposed rule.  (a) An agency may modify a proposed rule in accordance with the procedures of the Administrative Procedure Act.  However, an agency may not modify a proposed rule so that it is substantially different from the proposed rule in the notice of intent to adopt rules or notice of hearing.

 

(b) A modification does not make a proposed rule substantially different if:

 

(1) the differences are within the scope of the matter announced in the notice of intent to adopt or notice of hearing and are in character with the issues raised in that notice;

 

(2) the differences are a logical outgrowth of the contents of the notice of intent to adopt or notice of hearing and the comments submitted in response to the notice; and

 

(3) the notice of intent to adopt or notice of hearing provided fair warning that the outcome of that rulemaking proceeding could be the rule in question.

 

(c) In determining whether the notice of intent to adopt or notice of hearing provided fair warning that the outcome of that rulemaking proceeding could be the rule in question the following factors must be considered:


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2337

(1) the extent to which persons who will be affected by the rule should have understood that the rulemaking proceeding on which it is based could affect their interests;

 

(2) the extent to which the subject matter of the rule or issues determined by the rule are different from the subject matter or issues contained in the notice of intent to adopt or notice of hearing; and

 

(3) the extent to which the effects of the rule differ from the effects of the proposed rule contained in the notice of intent to adopt or notice of hearing.

 

(d) A modification makes a proposed rule substantially different if the modification causes a rule that did not previously have a substantial economic impact to have a substantial economic impact.

 

Sec. 9.  Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to read:

 

Subd. 5a.  Review and repeal of rules.  By December 1 of each odd-numbered year, beginning December 1, 2017, an agency must submit to the governor, the Legislative Coordinating Commission, the policy and funding committees and divisions with jurisdiction over the agency, and the revisor of statutes, a list of any rules or portions of rules that are obsolete, unnecessary, or duplicative of other state or federal statutes or rules.  The list must also include an explanation of why the rule or portion of the rule is obsolete, unnecessary, or duplicative of other state or federal statutes or rules.  The agency must either report a timetable for repeal of the rule or portion of the rule, or must develop a bill for submission to the appropriate policy committee to repeal the obsolete, unnecessary, or duplicative rule.  A report submitted under this subdivision must be signed by the person in the agency who is responsible for identifying and initiating repeal of obsolete rules.  The report also must identify the status of any rules identified in the prior report as obsolete, unnecessary, or duplicative.  If none of an agency's rules are obsolete, unnecessary, or duplicative, an agency's report must state that conclusion.

 

Sec. 10.  Minnesota Statutes 2016, section 14.05, is amended by adding a subdivision to read:

 

Subd. 5b.  Review and repeal of environmental assessment worksheets and impact statements.  By December 1, 2017, and each odd-numbered year thereafter, the Environmental Quality Board, Pollution Control Agency, Department of Natural Resources, and Department of Transportation, after consultation with political subdivisions, shall submit to the governor, the Legislative Coordinating Commission, the chairs and ranking minority members of the house of representatives and senate committees having jurisdiction over environment and natural resources, and the revisor of statutes a list of mandatory environmental assessment worksheets or mandatory environmental impact statements for which the agency or a political subdivision is designated as the responsible government unit, and for each worksheet or statement, a document including:

 

(1) intended outcomes of the specific worksheet or statement;

 

(2) the cost to state and local government and the private sector;

 

(3) the relationship of the worksheet or statement to other local, state, and federal permits; and

 

(4) a justification for why the mandatory worksheet or statement should not be eliminated and its intended outcomes achieved through an existing permit or other federal, state, or local law.

 

Sec. 11.  Minnesota Statutes 2016, section 14.05, subdivision 6, is amended to read:

 

Subd. 6.  Veto of adopted rules.  The governor may veto all or a severable portion of a rule of an agency as defined in section 14.02, subdivisions 2 and 4, by submitting notice of the veto to the State Register within 14 days of receiving a copy of the rule from the secretary of state under section 14.16, subdivision 3, 14.26, subdivision 3 5,


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2338

or 14.386, or the agency under section 14.389, subdivision 3, or section 14.3895.  The veto is effective when the veto notice is submitted to the State Register.  This authority applies only to the extent that the agency itself would have authority, through rulemaking, to take such action.  If the governor vetoes a rule or portion of a rule under this section, the governor shall notify the chairs of the legislative committees having jurisdiction over the agency whose rule was vetoed.

 

Sec. 12.  Minnesota Statutes 2016, section 14.05, subdivision 7, is amended to read:

 

Subd. 7.  Electronic documents permitted.  (a) If sections 14.05 to 14.3895 require an agency to provide notice or documents to the public, the legislature, or other state agency, the agency may send the notice or document, or a link to the notice or document, using any reliable method of electronic transmission.

 

(b) The agency must also send a paper copy of the notice or document if requested to do so by a member of the public, legislature, or other state agency.

 

(c) An agency may file rule-related documents with the Office of Administrative Hearings by electronic transmission in the manner approved by that office and the Office of the Revisor of Statutes by electronic transmission in the manner approved by that office.

 

Sec. 13.  Minnesota Statutes 2016, section 14.101, subdivision 1, is amended to read:

 

Subdivision 1.  Required notice.  In addition to seeking information by other methods designed to reach persons or classes categories of persons who might be affected by the proposal, an agency, at least 60 days before publication of a notice of intent to adopt or a notice of hearing, shall solicit comments from the public on the subject matter of a possible rulemaking proposal under active consideration within the agency by causing notice to be published in the State Register.  The notice must include a description of the subject matter of the proposal and the types of groups and individuals likely to be affected, and must indicate where, when, and how persons may comment on the proposal and whether and how drafts of any proposal may be obtained from the agency.

 

This notice must be published within 60 days of the effective date of any new or amendatory law requiring rules to be adopted, amended, or repealed.

 

An agency intending to adopt an expedited rule under section 14.389 is exempt from the requirements of this section.

 

Sec. 14.  [14.105] RULE NOTIFICATION.

 

Subdivision 1.  Rule notification list.  (a) Each agency shall maintain a list of all persons who have registered with the agency for the purpose of receiving notice of rule proceedings.  A person may register to receive notice of rule proceedings by submitting to the agency:

 

(1) the person's electronic mail address; or

 

(2) the person's name and United States mail address, along with a request to receive copies of the notices by mail.

 

(b) The agency shall post information on its Web site describing the registration process.

 

(c) The agency may inquire as to whether those persons on the list in paragraph (a) wish to remain on it and may remove persons for whom there is a negative reply or no reply within 60 days.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2339

Subd. 2.  Additional notice.  (a) Each agency shall make reasonable efforts to notify persons or categories of persons who may be significantly affected by the rule being proposed by giving notice of its rule proceedings in newsletters, newspapers, or other publications, or through other means of communication.

 

(b) For each rulemaking, the agency shall develop an additional notice plan describing its efforts to provide additional notification to persons or categories of persons who may be affected by the proposed rule or must explain why these efforts were not made.  The additional notice plan must be submitted to the administrative law judge with the other submissions required by section 14.14, subdivision 2a, or 14.26.  The agency also may seek prior approval of the additional notice plan under the rules of the Office of Administrative Hearings.

 

Sec. 15.  Minnesota Statutes 2016, section 14.116, is amended to read:

 

14.116 NOTICE TO LEGISLATURE.

 

(a) By January 15 each year, each agency must submit its current rulemaking docket maintained under section 14.366, and the official rulemaking record required under section 14.365 for any rule adopted during the preceding calendar year, to the chairs and ranking minority members of the legislative policy and budget committees with jurisdiction over the subject matter of the proposed rule and to the Legislative Coordinating Commission.  Each agency must post a link to its rulemaking docket on the agency Web site home page.

 

(b) When an agency mails sends a notice of intent to adopt rules hearing under section 14.14 or a notice of intent to adopt rules or dual notice under section 14.22, the agency must send a copy of the same notice and a copy of the statement of need and reasonableness to the chairs and ranking minority party members of the legislative policy and budget committees with jurisdiction over the subject matter of the proposed rules and to the Legislative Coordinating Commission.

 

(c) In addition, if the mailing of the notice is within two years of the effective date of the law granting the agency authority to adopt the proposed rules, the agency shall make reasonable efforts to send a copy of the notice and the statement to all sitting legislators who were chief house of representatives and senate authors of the bill granting the rulemaking authority.  If the bill was amended to include this rulemaking authority, the agency shall make reasonable efforts to send the notice and the statement to the chief house of representatives and senate authors of the amendment granting rulemaking authority, rather than to the chief authors of the bill.

 

Sec. 16.  Minnesota Statutes 2016, section 14.125, is amended to read:

 

14.125 TIME LIMIT ON AUTHORITY TO ADOPT, AMEND, OR REPEAL RULES.

 

An agency shall publish a notice of intent to adopt rules or a notice of hearing under section 14.14, or a notice of intent to adopt rules or dual notice under section 14.22, within 18 months of the effective date of the law authorizing or requiring rules to be adopted, amended, or repealed.  If the notice is not published within the time limit imposed by this section, the authority for the rules expires.  The agency shall not use other law in existence at the time of the expiration of rulemaking authority under this section as authority to adopt, amend, or repeal these rules agency shall report to the Legislative Coordinating Commission, other appropriate committees of the legislature, and the governor its failure to publish a notice and the reasons for that failure.

 

An agency that publishes a notice of intent to adopt rules or a notice of hearing within the time limit specified in this section may subsequently amend or repeal the rules without additional legislative authorization.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2340

Sec. 17.  Minnesota Statutes 2016, section 14.127, is amended to read:

 

14.127 LEGISLATIVE APPROVAL REQUIRED.

 

Subdivision 1.  Cost thresholds Substantial economic impact.  An agency must determine if the cost of complying with a proposed rule in the first year after the rule takes effect will exceed $25,000 for:  (1) any one business that has less than 50 full-time employees; or (2) any one statutory or home rule charter city that has less than ten full-time employees.  For purposes of this section, "business" means a business entity organized for profit or as a nonprofit, and includes an individual, partnership, corporation, joint venture, association, or cooperative has a substantial economic impact, as defined in section 14.02, subdivision 5.

 

Subd. 2.  Agency determination.  An agency must make the determination required by subdivision 1 before the close of the hearing record, or before the agency submits the record to the administrative law judge if there is no hearing.  The administrative law judge must review and approve or disapprove the agency determination under this section agency gives notice under section 14.14, 14.22, 14.225, or 14.389.

 

Subd. 3.  Legislative approval required.  (a) If the agency determines that a proposed rule has a substantial economic impact, the agency must request the legislative auditor to convene a five-person peer review advisory panel to conduct an impact analysis of the proposed rule.  Within 30 days of receipt of the agency's request, the legislative auditor shall convene a peer review advisory panel.  The advisory panel must be made up of individuals who have not directly or indirectly been involved in the work conducted or contracted by the agency and who are not employed by the agency.  The agency must pay each panel member for the costs of the person's service on the panel, as determined by the legislative auditor.  The agency shall transfer an amount from the agency's operating budget to the legislative auditor to pay for costs for convening the peer review advisory panel process.  The panel may receive written and oral comments from the public during its review.  The panel must submit its report within 60 days of being convened.  The agency must receive a final report from the panel before the agency conducts a public hearing on a proposed rule or, if no hearing is held, before the rule is submitted to the administrative law judge.  The panel's report must include its conclusions on the extent to which the proposed rule:

 

(1) is based on sound, reasonably available scientific, technical, economic, or other information or rationale; and

 

(2) is more restrictive than a standard, limitation, or requirement imposed by federal law or rule pertaining to the same subject matter, and a justification based on sound, reasonably available scientific, technical, economic, or other information and rationale that the more stringent standard is necessary to protect the public's health, safety, or welfare.

 

(b) If the agency determines that a rule does not have a substantial economic impact, the administrative law judge must review this determination.  If the administrative law judge determines that a rule may have a substantial economic impact, the agency must have the legislative auditor arrange for the analysis required by paragraph (a), and the agency must give new notice of intent to adopt the proposed rule after receiving this analysis.  The administrative law judge may make this determination as part of the administrative law judge's report on the proposed rule, or at any earlier time after the administrative law judge is assigned to the rule proceeding.

 

(c) If the agency determines that the cost exceeds the threshold in subdivision 1 proposed rule has a substantial economic impact, or if the administrative law judge disapproves the agency's determination that the cost rule does not exceed the threshold in subdivision 1, any business that has less than 50 full-time employees or any statutory or home rule charter city that has less than ten full-time employees may file a written statement with the agency claiming a temporary exemption from the rules.  Upon filing of such a statement with the agency, the rules do not apply to that business or that city until the rules are have a substantial economic impact, the agency or the administrative law judge shall deliver the determination and peer review advisory panel report to the Legislative


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2341

Coordinating Commission and to the chairs and ranking minority members of the house of representatives and senate committees and divisions with jurisdiction over the subject matter of the rule, and the proposed rule does not take effect until the rule is approved by a law enacted after the agency determination or administrative law judge disapproval.

 

Subd. 4.  Exceptions.  (a) Subdivision 3 does not apply if the administrative law judge approves an agency's determination that the legislature has appropriated money to sufficiently fund the expected cost of the rule upon the business or city proposed to be regulated by the rule.

 

(b) (a) Subdivision 3 does not apply if the administrative law judge approves an agency's determination that the rule has been proposed pursuant to a specific federal statutory or regulatory mandate.

 

(c) (b) This section does not apply if the rule is adopted under section 14.388 or under another law specifying that the rulemaking procedures of this chapter do not apply.

 

(d) (c) This section does not apply to a rule adopted by the Public Utilities Commission.

 

(e) Subdivision 3 does not apply if the governor waives application of subdivision 3.  The governor may issue a waiver at any time, either before or after the rule would take effect, but for the requirement of legislative approval.  As soon as possible after issuing a waiver under this paragraph, the governor must send notice of the waiver to the speaker of the house and the president of the senate and must publish notice of this determination in the State Register.

 

Subd. 5.  Severability.  If an administrative law judge determines that part of a proposed rule exceeds the threshold specified in subdivision 1 has a substantial economic impact, but that a severable portion of a proposed rule does not exceed the threshold in subdivision 1 have a substantial economic impact, the administrative law judge may provide that the severable portion of the rule that does not exceed the threshold have a substantial economic impact may take effect without legislative approval.

 

Sec. 18.  [14.129] IMPACT ANALYSIS OF PROPOSED RULE.

 

(a) Within 30 days of receipt of the notice required under section 14.116, paragraph (b), a standing committee with jurisdiction over the subject matter of a proposed rule may request the legislative auditor to conduct an impact analysis of the proposed rule.  The request must be sent in writing to the legislative auditor and the agency.  Upon receipt of the request, the agency may not proceed to adopt the proposed rule until it has received a positive declaration from the requesting standing committee.  Within 60 days of receipt of a request, the legislative auditor shall convene a five-person peer review panel to review the proposed rule.  The advisory panel must be made up of individuals who have not directly or indirectly been involved in work conducted or contracted by the agency and who are not employed by the agency.  The panel may receive written and oral comments from the public during its review of the proposed rule.  The panel must prepare a report that includes a conclusion on whether the proposed rule:

 

(1) is based on sound, reasonably available scientific, technical, economic, and other information and rationale; and

 

(2) if the proposed rule is more restrictive than a standard, limitation, or requirement imposed by federal law or rule pertaining to the same subject matter, a justification based on sound, reasonably available scientific, technical, economic, or other information and rationale that the more stringent standard is necessary to protect the public's health, safety, or welfare.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2342

(b) Within 150 days of being convened, the panel must submit its report to the chairs and ranking minority members of the requesting committee and the legislative auditor.  Within five days of receipt of the panel's report, the requesting standing committee shall send the report to the agency along with either:

 

(1) a positive declaration that the agency may proceed with the proposed rule; or

 

(2) a negative declaration that the agency may not proceed with the proposed rule in its current form.

 

(c) If the requesting standing committee issues a negative declaration to an agency under paragraph (b), clause (2), the agency may not adopt the rule until the legislature adjourns the annual legislative session that began after the issuance of the negative declaration.

 

Sec. 19.  Minnesota Statutes 2016, section 14.131, is amended to read:

 

14.131 STATEMENT OF NEED AND REASONABLENESS.

 

By the date of the section 14.14, subdivision 1a, notice, the agency must prepare, review, and make available for public review a statement of the need for and reasonableness of the rule.  The statement of need and reasonableness must be prepared under rules adopted by the chief administrative law judge and must include a citation to the most specific statutory authority for the rule and the following to the extent the agency, through reasonable effort, can ascertain this information:

 

(1) a description of the classes of persons who probably will be affected by the proposed rule, including classes that will bear the costs of the proposed rule and classes that will benefit from the proposed rule;

 

(2) the probable costs to the agency and to any other agency of the implementation and enforcement of the proposed rule and any anticipated effect on state revenues;

 

(3) a determination of whether there are less costly methods or less intrusive methods for achieving the purpose of the proposed rule;

 

(4) a description of any alternative methods for achieving the purpose of the proposed rule that were seriously considered by the agency and the reasons why they were rejected in favor of the proposed rule;

 

(5) the probable costs of complying with the proposed rule, including the portion of the total costs that will be borne by identifiable categories of affected parties, such as separate classes of governmental units, businesses, or individuals;

 

(6) the probable costs or consequences of not adopting the proposed rule, including those costs or consequences borne by identifiable categories of affected parties, such as separate classes of government units, businesses, or individuals;

 

(1) a description of the persons or classifications of persons who will probably be affected by the proposed rule;

 

(2) the probable costs of the rule to affected persons and the agency, including those costs or consequences borne by identifiable categories of affected parties, such as separate classes of government units, businesses, or individuals, and the probable benefits of adopting the rule;

 

(7) (3) an assessment of any differences between the proposed rule and existing or proposed federal regulations standards and similar standards in relevant states bordering Minnesota or within Environmental Protection Agency Region 5 and a specific analysis of the need for and reasonableness of each difference; and


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2343

(8) (4) an assessment of the cumulative effect of the rule with other federal and state regulations related to the specific purpose of the rule. all rules adopted by the agency or any other agency, and all federal regulations and local ordinances or regulations, related to the specific purpose for which the rule is being adopted; and

 

(5) the agency's findings and conclusions that support its determination that the proposed rule is based on sound, reasonably available scientific, technical, economic, or other information and rationale; and if the proposed rule is more restrictive than a standard, limitation, or requirement imposed by federal law or rule pertaining to the same subject matter, a justification based on sound, reasonably available scientific, technical, economic, or other information and rationale that the more stringent standard is necessary to protect the public's health, safety, or welfare.

 

The statement must describe how the agency, in developing the rules, considered and implemented the legislative policy supporting performance-based regulatory systems set forth in section 14.002 in a cost-effective and timely manner.

 

For purposes of clause (8) (4), "cumulative effect" means the impact that results from incremental impact of the proposed rule in addition to other rules, regardless of what state or federal agency has adopted the other rules.  Cumulative effects can result from individually minor but collectively significant rules adopted over a period of time.

 

The statement must also describe the agency's efforts to provide additional notification under section 14.14, subdivision 1a, to persons or classes of persons who may be affected by the proposed rule or must explain why these efforts were not made.

 

The statement must describe, with reasonable particularity, the scientific, technical, and economic information that supports the proposed rule.

 

The agency must consult with the commissioner of management and budget to help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local government.  The agency must send a copy of the statement of need and reasonableness to the Legislative Reference Library no later than when the notice of hearing is mailed under section 14.14, subdivision 1a sent.

 

Sec. 20.  Minnesota Statutes 2016, section 14.14, subdivision 1a, is amended to read:

 

Subd. 1a.  Notice of rule hearing.  (a) Each agency shall maintain a list of all persons who have registered with the agency for the purpose of receiving notice of rule proceedings.  Persons may register to receive notice of rule proceedings by submitting to the agency:

 

(1) their electronic mail address; or

 

(2) their name and United States mail address.

 

The agency may inquire as to whether those persons on the list wish to remain on it and may remove persons for whom there is a negative reply or no reply within 60 days.  The agency shall, at least 30 days before the date set for the hearing, give notice of its intention to adopt hold a hearing on the proposed rules by United States mail or electronic mail to all persons on its list who have registered with the agency under section 14.105, and by publication in the State Register.

 

The mailed notice must include either a copy of the proposed rule or an easily readable and understandable description of its nature and effect and an announcement that a free copy of the proposed rule is available on request from the agency.  In addition, each agency shall make reasonable efforts to notify persons or classes of persons who may be significantly affected by the rule being proposed by giving notice of its intention in newsletters, newspapers,


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2344

or other publications, or through other means of communication.  The notice in the State Register must include the proposed rule or an amended rule in the form required by the revisor under section 14.07, together with an easily readable and understandable summary of the overall nature and effect of the proposed rule, a citation to the most specific statutory authority for the proposed rule, a statement of the place, date, and time of the public hearing, a statement that a free copy of the proposed rule and the statement of need and reasonableness may be requested from the agency, a statement that persons may register with the agency for the purpose of receiving notice of rule proceedings and notice that the agency intends to adopt a rule, and other information required by law or rule.  When an entire rule is proposed to be repealed, the agency need only publish that fact, along with an easily readable and understandable summary of the overall nature of the rules proposed for repeal, and a citation to the rule to be repealed.

 

The mailed notice of hearing must be the same as the notice published in the State Register, except that the mailed notice may omit the text of the proposed rule if it includes an announcement of where a copy of the proposed rule may be obtained.

 

(b) The chief administrative law judge may authorize an agency to omit from the notice of rule hearing the text of any proposed rule, the publication of which would be unduly cumbersome, expensive, or otherwise inexpedient if:

 

(1) knowledge of the rule is likely to be important to only a small class of persons;

 

(2) the notice of rule hearing states that a free copy of the entire rule is available upon request to the agency; and

 

(3) the notice of rule hearing states in detail the specific subject matter of the omitted rule, cites the statutory authority for the proposed rule, and details the proposed rule's purpose and motivation.

 

Sec. 21.  Minnesota Statutes 2016, section 14.14, subdivision 2a, is amended to read:

 

Subd. 2a.  Hearing procedure.  When a hearing is held on a proposed rule, it shall be conducted by an administrative law judge assigned by the chief administrative law judge.  The administrative law judge shall ensure that all persons involved in the rule hearing are treated fairly and impartially.  The agency shall submit into the record the jurisdictional documents, including the statement of need and reasonableness, comments and hearing requests received, and any written exhibits in support of the proposed rule.  The agency may also present additional oral evidence.  Interested persons may present written and oral evidence.  The administrative law judge shall allow questioning of agency representatives or witnesses, or of interested persons making oral statements, in order to explain the purpose or intended operation of a proposed rule, or a suggested modification, or for other purposes if material to the evaluation or formulation of the proposed rule.  The administrative law judge may limit repetitive or immaterial oral statements and questioning.

 

Sec. 22.  Minnesota Statutes 2016, section 14.19, is amended to read:

 

14.19 DEADLINE TO COMPLETE RULEMAKING.

 

Within 180 days after issuance of the administrative law judge's report or that of the chief administrative law judge, the agency shall submit its notice of adoption, amendment, or repeal to the State Register for publication.  If the agency has not submitted its notice to the State Register within 180 days, the rule is automatically withdrawn.  The agency may not adopt the withdrawn rules without again following the procedures of sections 14.05 to 14.28, with the exception of section 14.101, if the noncompliance is approved by the chief administrative law judge.  The agency shall report to the Legislative Coordinating Commission, other appropriate committees of the legislature, and the governor its failure to adopt rules and the reasons for that failure.  The 180-day time limit of this section does not include:


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2345

(1) any days used for review by the chief administrative law judge or the commission if the review is required by law; or

 

(2) days during which the rule cannot be adopted, because of votes by legislative committees under section 14.126; or.

 

(3) days during which the rule cannot be adopted because approval of the legislature is required under section 14.127.

 

Sec. 23.  Minnesota Statutes 2016, section 14.22, subdivision 1, is amended to read:

 

Subdivision 1.  Contents.  (a) Unless an agency proceeds directly to a public hearing on a proposed rule and gives the notice prescribed in section 14.14, subdivision 1a, the agency shall give notice of its intention to adopt a rule without public hearing.  The agency shall give the notice required by this section, unless the agency gives notice of a hearing under section 14.14 or a notice under section 14.389, subdivision 2.  The agency shall give notice must be given of its intention to adopt a rule by publication in the State Register and by United States mail or electronic mail to persons who have registered their names with the agency under section 14.14, subdivision 1a 14.105.  The mailed notice must include either a copy of the proposed rule or an easily readable and understandable description of its nature and effect and an announcement that a free copy of the proposed rule is available on request from the agency.  In addition, each agency shall make reasonable efforts to notify persons or classes of persons who may be significantly affected by the rule by giving notice of its intention in newsletters, newspapers, or other publications, or through other means of communication.  The notice in the State Register must include the proposed rule or the amended rule in the form required by the revisor under section 14.07,; an easily readable and understandable summary of the overall nature and effect of the proposed rule,; a citation to the most specific statutory authority for the proposed rule,; a statement that a free copy of the statement of need and reasonableness may be requested from the agency; a statement that persons may register with the agency for the purpose of receiving to receive notice of rule proceedings and notice that a rule has been submitted to the chief administrative law judge,; and other information required by law or rule.  When an entire rule is proposed to be repealed, the notice need only state that fact, along with an easily readable and understandable summary of the overall nature of the rules rule proposed for repeal, and a citation to the rule to be repealed.  The notice must include a statement advising the public:

 

(1) that the public has at least 30 days in which to submit comment in support of or in opposition to the proposed rule and that comment is encouraged;

 

(2) that each comment should identify the portion part and subpart, if any, of the proposed rule addressed, the reason for the comment, and any change proposed;

 

(3) that the requester is encouraged to propose any change desired;

 

(3) (4) that if 25 or more persons submit a written request for a public hearing within the 30-day comment period, a public hearing will be held and the agency will use the process under section 14.14;

 

(4) (5) of the manner in which persons must request a public hearing on the proposed rule, including the requirements contained in section 14.25 relating to a written request for a public hearing; and

 

(5) of the requirements contained in section 14.25 relating to a written request for a public hearing, and that the requester is encouraged to propose any change desired;

 

(6) that the agency may modify the proposed rule may be modified if the modifications are supported by the data and views submitted; and.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2346

(7) that if a hearing is not required, notice of the date of submission of the proposed rule to the chief administrative law judge for review will be mailed to any person requesting to receive the notice.

 

In connection with the statements required in clauses (1) and (3) (4), the notice must also include the date on which the 30-day comment period ends.  The mailed notice of intent to adopt a rule must be the same as the notice published in the State Register, except that the mailed notice may omit the text of the proposed rule if it includes an announcement of where a copy of the proposed rule may be obtained.

 

(b) The chief administrative law judge may authorize an agency to omit from the notice of intent to adopt the text of any proposed rule, the publication of which would be unduly cumbersome, expensive, or otherwise inexpedient if:

 

(1) knowledge of the rule is likely to be important to only a small class of persons;

 

(2) the notice of intent to adopt states that a free copy of the entire rule is available upon request to the agency; and

 

(3) the notice of intent to adopt states in detail the specific subject matter of the omitted rule, cites the statutory authority for the proposed rule, and details the proposed rule's purpose and motivation.

 

Sec. 24.  Minnesota Statutes 2016, section 14.23, is amended to read:

 

14.23 STATEMENT OF NEED AND REASONABLENESS.

 

By the date of the section 14.22 notice, the agency shall prepare a statement of need and reasonableness, which must be available to the public.  The statement of need and reasonableness must include the analysis information required in section 14.131.  The statement must also describe the agency's efforts to provide additional notification under section 14.22 to persons or classes of persons who may be affected by the proposed rules or must explain why these efforts were not made.  For at least 30 days following the notice, the agency shall afford the public an opportunity to request a public hearing and to submit data and views on the proposed rule in writing.

 

The agency shall send a copy of the statement of need and reasonableness to the Legislative Reference Library no later than when the notice of intent to adopt is mailed sent.

 

Sec. 25.  Minnesota Statutes 2016, section 14.25, subdivision 1, is amended to read:

 

Subdivision 1.  Requests for hearing.  If, during the 30-day period allowed for comment under section 14.22, 25 or more persons submit to the agency a written request for a public hearing of the proposed rule, the agency shall proceed under the provisions of sections 14.14 to 14.20.  The written request must include:

 

(1) the name and address of the person requesting the public hearing; and

 

(2) the portion or portions part or subpart, if any, of the rule to which the person objects or a statement that the person opposes the entire rule.  If not previously published under section 14.22, subdivision 2, a notice of the public hearing must be published in the State Register and mailed to those persons who submitted a written request for the public hearing.  Unless the agency has modified the proposed rule, the notice need not include the text of the proposed rule but only a citation to the State Register pages where the text appears; and

 

(3) the reasons for the objection to each portion of the rule identified.

 

A written request for a public hearing that does not comply with the requirements of this section is invalid and may not be counted by the agency for purposes of determining whether a public hearing must be held.  A written request for a public hearing is not invalid due to failure of the request to correctly identify the portion of the rule to which the person objects if the agency reasonably can determine which portion of the rule is the basis for the objection.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2347

Sec. 26.  Minnesota Statutes 2016, section 14.26, is amended to read:

 

14.26 ADOPTION OF PROPOSED RULE; SUBMISSION TO ADMINISTRATIVE LAW JUDGE.

 

Subdivision 1.  Submission.  If no hearing is required, the agency shall submit to an administrative law judge assigned by the chief administrative law judge the proposed rule and notice as published, the rule as adopted, any written comments received by the agency, and a statement of need and reasonableness for the rule.  The agency shall give notice to all persons who requested to be informed that these materials have been submitted to the administrative law judge.  This notice must be given on the same day that the record is submitted.  If the proposed rule has been modified, the notice must state that fact, and must also state that a free copy of the proposed rule, as modified, is available upon request from the agency.  The rule and these materials must be submitted to the administrative law judge within 180 days of the day that the comment period for the rule is over or the rule is automatically withdrawn.  The agency may not adopt the withdrawn rules without again following the procedures of sections 14.05 to 14.28, with the exception of section 14.101, if the noncompliance is approved by the chief administrative law judge.  The agency shall report its failure to adopt the rules and the reasons for that failure to the Legislative Coordinating Commission, other appropriate legislative committees, and the governor.

 

Subd. 2.  Resubmission.  Even if the 180-day period expires while the administrative law judge reviews the rule, if the administrative law judge rejects the rule, the agency may resubmit it after taking corrective action.  The resubmission must occur within 30 days of when the agency receives written notice of the disapproval.  If the rule is again disapproved, the rule is withdrawn.  An agency may resubmit at any time before the expiration of the 180-day period.  If the agency withholds some of the proposed rule, it may not adopt the withheld portion without again following the procedures of sections 14.14 to 14.28.

 

Subd. 3.  Review.  (a) Within 14 days of receiving a submission under subdivision 1, the administrative law judge shall approve or disapprove the rule as to its legality and its form to the extent that the form relates to legality, including the issues of whether the rule if modified is substantially different, as determined under section 14.05, subdivision 2, from the rule as originally proposed, whether the agency has the authority to adopt the rule, and whether the record demonstrates a rational basis for the need for and reasonableness of the proposed rule.  If the rule is approved, the administrative law judge shall promptly file four paper copies or an electronic copy of the adopted rule in the Office of the Secretary of State.  The secretary of state shall forward one copy of each rule to the revisor of statutes, to the agency, and to the governor.  If the rule is disapproved, the administrative law judge shall state in writing the reasons for the disapproval and make recommendations to overcome the defects.

 

Subd. 3b.  Harmless error.  The administrative law judge shall disregard any error or defect in the proceeding due to the agency's failure to satisfy any procedural requirements imposed by law or rule if the administrative law judge finds:

 

(1) that the failure did not deprive any person or entity of an opportunity to participate meaningfully in the rulemaking process; or

 

(2) that the agency has taken corrective action to cure the error or defect so that the failure did not deprive any person or entity of an opportunity to participate meaningfully in the rulemaking process.

 

Subd. 3c.  Correction of defects.  (b) (a) The written disapproval must be submitted to the chief administrative law judge for approval.  If the chief administrative law judge approves of the findings of the administrative law judge, the chief administrative law judge shall send the statement of the reasons for disapproval of the rule to the agency, the Legislative Coordinating Commission, the house of representatives and senate policy committees with primary jurisdiction over state governmental operations, and the revisor of statutes and advise the agency and the revisor of statutes of actions that will correct the defects.  The rule may not be filed in the Office of the Secretary of State, nor be published, until the chief administrative law judge determines that the defects have been corrected or, if applicable, that the agency has satisfied the rule requirements for the adoption of a substantially different rule.


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2348

(b) The agency may resubmit the disapproved rule under paragraph (a) to the chief administrative law judge after correcting the defects.  If the 180-day period expires while the chief administrative law judge is reviewing the rule, the agency may resubmit the rule within 30 days of the date the agency received written notice of disapproval.  In all other cases, the agency may resubmit the rule at any time before the expiration of the 180-day period in subdivision 1.  If the resubmitted rule is disapproved by the chief administrative law judge, the rule is withdrawn.  If the agency does not resubmit a portion of the rule, it may not adopt that portion of the rule without again following the procedures of sections 14.14 to 14.28.

 

Subd. 3d.  Need or reasonableness not established.  (c) If the chief administrative law judge determines that the need for or reasonableness of the rule has not been established, and if the agency does not elect to follow the suggested actions of the chief administrative law judge to correct that defect, then the agency shall submit the proposed rule to the Legislative Coordinating Commission and to the house of representatives and senate policy committees with primary jurisdiction over state governmental operations for advice and comment.  The agency may not adopt the rule until it has received and considered the advice of the commission and committees.  However, the agency need not wait for advice for more than 60 days after the commission and committees have received the agency's submission.

 

(d) The administrative law judge shall disregard any error or defect in the proceeding due to the agency's failure to satisfy any procedural requirements imposed by law or rule if the administrative law judge finds:

 

(1) that the failure did not deprive any person or entity of an opportunity to participate meaningfully in the rulemaking process; or

 

(2) that the agency has taken corrective action to cure the error or defect so that the failure did not deprive any person or entity of an opportunity to participate meaningfully in the rulemaking process.

 

Subd. 3a.  Filing.  If the rule is approved, the administrative law judge shall promptly file four paper copies or an electronic copy of the adopted rule in the Office of the Secretary of State.  The secretary of state shall forward one copy of each rule to the revisor of statutes, to the agency, and to the governor.

 

Subd. 4.  Costs.  The Office of Administrative Hearings shall assess an agency for the actual cost of processing rules under this section.  Each agency shall include in its budget money to pay the assessment.  Receipts from the assessment must be deposited in the administrative hearings account created in section 14.54.

 

Subd. 5.  Filing.  If the rule is approved, the chief administrative law judge shall promptly file four paper copies or an electronic copy of it in the Office of the Secretary of State.  The secretary of state shall forward one copy of the rule to the revisor of statutes, one copy to the agency, and one copy to the governor.

 

Subd. 6.  Costs.  The Office of Administrative Hearings shall assess an agency for the actual cost of processing rules under this section.  Each agency shall include in its budget money to pay the assessment.  Receipts from the assessment must be deposited in the administrative hearings account created in section 14.54.

 

Sec. 27.  Minnesota Statutes 2016, section 14.365, is amended to read:

 

14.365 OFFICIAL RULEMAKING RECORD.

 

The agency shall maintain the official rulemaking record for every rule adopted under sections 14.05 to 14.389 14.3895.  The record must be available for public inspection.  The record required by this section constitutes the official and exclusive agency rulemaking record with respect to agency action on or judicial review of the rule.  The record must contain:


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2349

(1) copies of all publications in the State Register pertaining to the rule;

 

(2) all written petitions, and all requests, submissions, or comments received by the agency or the administrative law judge after publication of the notice of intent to adopt or the notice of hearing in the State Register pertaining to the rule;

 

(3) the statement of need and reasonableness for the rule;

 

(4) any report prepared by the peer review panel pursuant to section 14.129;

 

(4) (5) the official transcript of the hearing if one was held, or the tape recording of the hearing if a transcript was not prepared;

 

(5) (6) the report of the administrative law judge, if any;

 

(6) (7) the rule in the form last submitted to the administrative law judge under sections 14.14 to 14.20 or first submitted to the administrative law judge under sections 14.22 to 14.28;

 

(7) (8) the administrative law judge's written statement of required modifications and of approval or disapproval by the chief administrative law judge, if any;

 

(8) (9) any documents required by applicable rules of the Office of Administrative Hearings;

 

(9) (10) the agency's order adopting the rule;

 

(10) (11) the revisor's certificate approving the form of the rule; and

 

(11) (12) a copy of the adopted rule as filed with the secretary of state.

 

Sec. 28.  Minnesota Statutes 2016, section 14.381, subdivision 3, is amended to read:

 

Subd. 3.  Costs.  The agency is liable for all Office of Administrative Hearings costs associated with review of the petition.  If the administrative law judge rules in favor of the agency, the agency may recover all or a portion of the costs from the petitioner unless the petitioner is entitled to proceed in forma pauperis under section 563.01 or the administrative law judge determines that the petition was brought in good faith and that an assessment of the costs would constitute an undue hardship for the petitioner.  If an agency has reason to believe it will prevail in the consideration of a petition, and that an effort to recover costs from the petitioner will be unsuccessful, it may request the chief administrative law judge to require the petitioner to provide bond or a deposit to the agency in an amount the chief administrative law judge estimates will be the cost to the Office of Administrative Hearings to review the petition.

 

Sec. 29.  Minnesota Statutes 2016, section 14.388, subdivision 1, is amended to read:

 

Subdivision 1.  Requirements.  If an agency for good cause finds that the rulemaking provisions of this chapter are unnecessary, impracticable, or contrary to the public interest when adopting, amending, or repealing a rule to:

 

(1) address a serious and immediate threat to the public health, safety, or welfare;

 

(2) comply with a court order or a requirement in federal law in a manner that does not allow for compliance with sections 14.14 to 14.28;


Journal of the House - 36th Day - Wednesday, March 29, 2017 - Top of Page 2350

(3) incorporate specific changes set forth in applicable statutes when no interpretation of law is required; or