1.1.................... moves to amend H.F. No. 653, the first engrossment, as follows:
1.2Page 89, after line 21, insert:

1.3    "Sec. 3. Minnesota Statutes 2018, section 129D.17, subdivision 2, is amended to read:
1.4    Subd. 2. Expenditures; accountability. (a) Funding from the arts and cultural heritage
1.5fund may be spent only for arts, arts education, and arts access, and to preserve Minnesota's
1.6history and cultural heritage. A project or program receiving funding from the arts and
1.7cultural heritage fund must include measurable outcomes, and a plan for measuring and
1.8evaluating the results. A project or program must be consistent with current scholarship, or
1.9best practices, when appropriate and must incorporate state-of-the-art technology when
1.10appropriate.
1.11(b) Funding from the arts and cultural heritage fund may be granted for an entire project
1.12or for part of a project so long as the recipient provides a description and cost for the entire
1.13project and can demonstrate that it has adequate resources to ensure that the entire project
1.14will be completed.
1.15(c) Money from the arts and cultural heritage fund shall be expended for benefits across
1.16all regions and residents of the state.
1.17(d) A state agency or other recipient of a direct appropriation from the arts and cultural
1.18heritage fund must compile and submit all information for funded projects or programs,
1.19including the proposed measurable outcomes and all other items required under section
1.203.303, subdivision 10 , to the Legislative Coordinating Commission as soon as practicable
1.21or by January 15 of the applicable fiscal year, whichever comes first. The Legislative
1.22Coordinating Commission must post submitted information on the website required under
1.23section 3.303, subdivision 10, as soon as it becomes available.
2.1(e) Grants funded by the arts and cultural heritage fund must be implemented according
2.2to section 16B.98 and must account for all expenditures of funds. Priority for grant proposals
2.3must be given to proposals involving grants that will be competitively awarded.
2.4(f) Individual recipients of money from the arts and cultural heritage fund must be
2.5residents of Minnesota. All money from the arts and cultural heritage fund must be for
2.6projects located in Minnesota. Recipients of money from the arts and cultural heritage fund
2.7must complete the project in Minnesota. If a grant recipient is no longer able to complete
2.8the project in Minnesota, the grant recipient must return any remaining grant money to the
2.9state.
2.10(g) When practicable, a direct recipient of an appropriation from the arts and cultural
2.11heritage fund shall prominently display on the recipient's website home page the legacy
2.12logo required under Laws 2009, chapter 172, article 5, section 10, as amended by Laws
2.132010, chapter 361, article 3, section 5, accompanied by the phrase "Click here for more
2.14information." When a person clicks on the legacy logo image, the website must direct the
2.15person to a web page that includes both the contact information that a person may use to
2.16obtain additional information, as well as a link to the Legislative Coordinating Commission
2.17website required under section 3.303, subdivision 10.
2.18(h) Future eligibility for money from the arts and cultural heritage fund is contingent
2.19upon a state agency or other recipient satisfying all applicable requirements in this section,
2.20as well as any additional requirements contained in applicable session law. If the Office of
2.21the Legislative Auditor, in the course of an audit or investigation, publicly reports that a
2.22recipient of money from the arts and cultural heritage fund has not complied with the laws,
2.23rules, or regulations in this section or other laws applicable to the recipient, the recipient
2.24must be listed in an annual report to the legislative committees with jurisdiction over the
2.25legacy funds. The list must be publicly available. The legislative auditor shall remove a
2.26recipient from the list upon determination that the recipient is in compliance. A recipient
2.27on the list is not eligible for future funding from the arts and cultural heritage fund until the
2.28recipient demonstrates compliance to the legislative auditor.
2.29(i) Any state agency or organization requesting a direct appropriation from the arts and
2.30cultural heritage fund must inform the house of representatives and senate committees
2.31having jurisdiction over the arts and cultural heritage fund, at the time the request for funding
2.32is made, whether the request is supplanting or is a substitution for any previous funding that
2.33was not from a legacy fund and was used for the same purpose.

3.1    Sec. 4. Minnesota Statutes 2018, section 129D.17, is amended by adding a subdivision to
3.2read:
3.3    Subd. 6. Prohibited activities; civil penalty. (a) Money from the arts and cultural
3.4heritage fund must not be used for projects that promote domestic terrorism or criminal
3.5activities.
3.6(b) The commissioner of administration may impose a civil penalty not to exceed ten
3.7times the amount of the grant or award for the project for a violation of this subdivision. If
3.8the commissioner proposes to take action to impose a civil penalty, the commissioner must
3.9first notify the person against whom the action is to be taken and provide the person with
3.10an opportunity to request a hearing under the contested case provisions of chapter 14. Service
3.11of the notice of violation of this subdivision and the proposed penalty must be made
3.12personally or by certified mail, return receipt requested. If the person does not request a
3.13hearing by notifying the commissioner within 30 days after service of the notice of the
3.14proposed action, the commissioner may proceed with the action without a hearing.
3.15(c) The civil penalty recovered must be deposited in the general fund, except that the
3.16amount of the original grant or award must be deposited in the arts and cultural heritage
3.17fund. In addition to the civil penalty, a person found in violation of this subdivision must
3.18reimburse the commissioner for the costs of the investigation and proceedings, attorney
3.19fees, and other administrative hearing or court costs incurred as a result of action taken
3.20under this subdivision."
3.21Renumber the sections in sequence and correct the internal references
3.22Amend the title accordingly