1.1A bill for an act
1.2relating to state government finance; modifying provisions of the state auditor
1.3for costs and fees; requiring determination of IT costs for certain projects;
1.4establishing the e-government advisory council; changing the audit responsibility
1.5for job opportunity building zones to the legislative auditor; changing campaign
1.6finance provisions and establishing fees; changing provisions that refer to
1.7school trust lands director; authorizing "Support Our Veterans" license plates;
1.8changing provisions related to veterans; making department of revenue changes;
1.9establishing an automobile theft prevention surcharge; making conforming
1.10changes; appropriating money;amending Minnesota Statutes 2012, sections
1.116.48; 6.56, subdivision 2; 10A.01, subdivision 26; 10A.02, subdivision
1.1215; 15A.0815, subdivision 3; 16A.82; 16E.07, subdivision 6, by adding a
1.13subdivision; 65B.84, subdivision 1; 94.342, subdivision 5; 127A.30, subdivision
1.141; 127A.351; 127A.352, subdivisions 1, 2; 197.608, subdivisions 3, 4, 5, 6;
1.15197.791, subdivisions 1, 4, 5; 270C.69, subdivision 1; 289A.20, subdivisions
1.162, 4; 289A.26, subdivision 2a; 295.55, subdivision 4; 297F.09, subdivision 7;
1.17297G.09, subdivision 6; 297I.30, by adding a subdivision; 297I.35, subdivision
1.182; 469.3201; 471.699; 473.843, subdivision 3; proposing coding for new law
1.19in Minnesota Statutes, chapters 6; 10A; 16; 168; 196; 297I; 349A; repealing
1.20Minnesota Statutes 2012, sections 6.58; 127A.352, subdivision 3; 127A.353;
1.21168A.40, subdivisions 3, 4; 197.608, subdivision 2a; 270C.145.
1.22BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.23ARTICLE 1
1.24STATE GOVERNMENT APPROPRIATIONS

1.25
 Section 1. SUMMARY OF APPROPRIATIONS.
1.26The amounts shown in this section summarize direct appropriations, by fund, made
1.27in this article.
1.28
 2014
 2015
 Total
1.29
 General
 $
 443,882,000
 $
 435,481,000
 $
 879,363,000
1.30
 Health Care Access
 1,877,000
 1,877,000
 3,754,000
2.1
2.2
 State Government Special
Revenue
 2,222,000
 2,222,000
 4,444,000
2.3
 Environmental
 448,000
 448,000
 896,000
2.4
 Remediation
 250,000
 250,000
 500,000
2.5
 Special Revenue
 4,418,000
 4,418,000
 8,836,000
2.6
2.7
 Highway User Tax
Distribution
 2,183,000
 2,183,000
 4,366,000
2.8
 Workers' Compensation
 7,350,000
 7,350,000
 14,700,000
2.9
 Total
 $
 462,630,000
 $
 454,229,000
 $
 916,859,000

2.10
 Sec. 2. STATE GOVERNMENT APPROPRIATIONS.
2.11    The sums shown in the columns marked "appropriations" are appropriated to the
2.12agencies and for the purposes specified in this article. The appropriations are from the
2.13general fund, or another named fund, and are available for the fiscal years indicated
2.14for each purpose. The figures "2014" and "2015" used in this article mean that the
2.15appropriations listed under them are available for the fiscal year ending June 30, 2014, or
2.16June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
2.17year 2015. "The biennium" is fiscal years 2014 and 2015.
2.18
 APPROPRIATIONS
2.19
 Available for the Year
2.20
 Ending June 30
2.21
 2014
 2015

2.22
 Sec. 3. LEGISLATURE
2.23
 Subdivision 1.Total Appropriation
 $
 63,209,000
 $
 63,209,000
2.24
 Appropriations by Fund
2.25
 2014
 2015
2.26
 General
 63,081,000
 63,081,000
2.27
 Health Care Access
 128,000
 128,000
2.28The amounts that may be spent for each
2.29purpose are specified in the following
2.30subdivisions.
2.31
 Subd. 2.Senate
 20,733,000
 20,733,000
2.32
 Subd. 3.House of Representatives
 27,874,000
 27,874,000
2.33During the biennium ending June 30, 2015,
2.34any revenues received by the house of
2.35representatives from voluntary donations
3.1to support broadcast or print media are
3.2appropriated to the house of representatives.
3.3
 Subd. 4.Legislative Coordinating Commission
 14,602,000
 14,602,000
3.4
 Appropriations by Fund
3.5
 2014
 2015
3.6
 General
 14,474,000
 14,474,000
3.7
 Health Care Access
128,000
 128,000

3.8
3.9
 Sec. 4. GOVERNOR AND LIEUTENANT
GOVERNOR
 $
 3,193,000
 $
 3,193,000
3.10This appropriation is to fund the Office of the
3.11Governor and Lieutenant Governor.
3.12$19,000 the first year and $19,000 the
3.13second year are for necessary expenses in
3.14the normal performance of the governor's
3.15and lieutenant governor's duties for which no
3.16other reimbursement is provided.

3.17
 Sec. 5. STATE AUDITOR
 $
 1,973,000
 $
 2,024,000

3.18
 Sec. 6. ATTORNEY GENERAL
 $
 23,288,000
 $
 23,288,000
3.19
 Appropriations by Fund
3.20
 2014
 2015
3.21
 General
 21,071,000
 21,071,000
3.22
3.23
 State Government
Special Revenue
 1,822,000
 1,822,000
3.24
 Environmental
 145,000
 145,000
3.25
 Remediation
 250,000
 250,000

3.26
 Sec. 7. SECRETARY OF STATE
 $
 5,665,000
 $
 6,310,000
3.27Any funds available in the account
3.28established in Minnesota Statutes, section
3.295.30, pursuant to the Help America Vote Act,
3.30are appropriated for the purposes and uses
3.31authorized by federal law.
3.32Redistricting Case. $355,000 the first year
3.33is appropriated to the secretary of state to
4.1be used to pay attorney fees as ordered by
4.2the court in the legislative and congressional
4.3redistricting case Hippert et al v. Ritchie
4.4et al, A11-152, and interest thereon. This
4.5appropriation is available for expenditure the
4.6day following final enactment.

4.7
4.8
 Sec. 8. CAMPAIGN FINANCE AND PUBLIC
DISCLOSURE BOARD
 $
 650,000
 $
 650,000

4.9
 Sec. 9. INVESTMENT BOARD
 $
 139,000
 $
 139,000

4.10
4.11
 Sec. 10. OFFICE OF ENTERPRISE
TECHNOLOGY
 $
 2,431,000
 $
 2,431,000

4.12
 Sec. 11. ADMINISTRATIVE HEARINGS
 $
 7,670,000
 $
 7,504,000
4.13
 Appropriations by Fund
4.14
 2014
 2015
4.15
 General
 420,000
 254,000
4.16
4.17
 Workers'
Compensation
 7,250,000
 7,250,000

4.18
 Sec. 12. ADMINISTRATION
4.19
 Subdivision 1.Total Appropriation
 $
 20,121,000
 $
 20,731,000
4.20
 Appropriations by Fund
4.21
 2014
 2015
4.22
 General
 20,121,000
 20,731,000
4.23The amounts that may be spent for each
4.24purpose are specified in the following
4.25subdivisions.
4.26
 Subd. 2.Government and Citizen Services
 7,668,000
 7,668,000
4.27
 Appropriations by Fund
4.28
 2014
 2015
4.29
 General
 7,668,000
 7,668,000
4.30$74,000 the first year and $74,000 the second
4.31year are for the Council on Developmental
4.32Disabilities.
5.1
 Subd. 3.Strategic Services
 1,757,000
 1,757,000
5.2
 Subd. 4.Fiscal Agent
 10,696,000
 11,306,000
5.3The appropriations under this subdivision are
5.4to the commissioner of administration for the
5.5purposes specified.
5.6(1) $1,057,000 the first year and $1,057,000
5.7the second year are for matching grants for
5.8public television.
5.9(2) $190,000 the first year and $190,000
5.10the second year are for public television
5.11equipment grants. Equipment or matching
5.12grant allocations shall be made after
5.13considering the recommendations of the
5.14Minnesota Public Television Association.
5.15(3) $264,000 the first year and $264,000 the
5.16second year are for community service grants
5.17to public educational radio stations.
5.18(4) $92,000 the first year and $92,000 the
5.19second year are for equipment grants to
5.20public educational radio stations.
5.21(5) The grants in paragraphs (3) and (4)
5.22must be allocated after considering the
5.23recommendations of the Association of
5.24Minnesota Public Educational Radio Stations
5.25under Minnesota Statutes, section 129D.14.
5.26(6) $310,000 the first year and $310,000
5.27the second year are for equipment grants
5.28to Minnesota Public Radio, Inc., including
5.29upgrades to Minnesota's Emergency Alert
5.30and AMBER Alert Systems.
5.31(7) Any unencumbered balance remaining
5.32the first year for grants to public television or
6.1radio stations does not cancel and is available
6.2for the second year.
6.3(8) $8,158,000 the first year and $8,158,000
6.4the second year are for office space and
6.5storage costs of the legislature and veterans
6.6organizations, for ceremonial space, and for
6.7statutorily free space.
6.8(9) $625,000 the first year and $1,235,000 the
6.9second year are for rent loss and relocation
6.10expenses incurred with the renovation and
6.11restoration of the State Capitol building. This
6.12appropriation is available until spent.

6.13
6.14
6.15
 Sec. 13. CAPITOL AREA
ARCHITECTURAL AND PLANNING
BOARD
 $
 325,000
 $
 325,000

6.16
6.17
 Sec. 14. MINNESOTA MANAGEMENT AND
BUDGET
 $
 28,144,000
 $
 20,369,000
6.18Electronic System for Matching Applicant
6.19Resumes. $2,669,000 in fiscal year 2014 is
6.20appropriated to the commissioner for transfer
6.21to the Office of Enterprise Technology to
6.22develop and deploy a new electronic system
6.23for collecting, analyzing, and matching
6.24applicant resumes with state government
6.25employment needs, and related talent
6.26management services. This is a onetime
6.27appropriation and is available until spent.
6.28Statewide Budget System. $3,120,000
6.29in fiscal year 2014 is appropriated to the
6.30commissioner for transfer to the Office
6.31of Enterprise Technology to continue
6.32development of the new statewide budget
6.33system and to develop new capabilities
6.34including, but not limited to, capital
7.1budget and fiscal notes. This is a onetime
7.2appropriation and is available until spent.
7.3Enterprise-wide Results Management.
7.4 $500,000 the first year and $500,000 the
7.5second year are for building capacity to
7.6provide enterprise-wide results management
7.7facilitation and coordination.
7.8Budget Reserve Adjustments. On July
7.91, 2013, the commissioner shall reduce
7.10the budget reserve by $325,000,000. On
7.11July 1, 2014, the commissioner shall
7.12increase the amount in the budget reserve by
7.13$325,000,000.

7.14
 Sec. 15. REVENUE
7.15
 Subdivision 1.Total Appropriation
 $
 140,673,000
 $
 140,137,000
7.16
 Appropriations by Fund
7.17
 2014
 2015
7.18
 General
 136,438,000
 135,902,000
7.19
 Health Care Access
 1,749,000
 1,749,000
7.20
7.21
 Highway User Tax
Distribution
 2,183,000
 2,183,000
7.22
 Environmental
 303,000
 303,000
7.23The amounts that may be spent for each
7.24purpose are specified in subdivisions 2 and 3.
7.25
 Subd. 2.Tax System Management
 112,057,000
 111,521,000
7.26
 Appropriations by Fund
7.27
 2014
 2015
7.28
 General
 107,822,000
 107,286,000
7.29
 Health Care Access
 1,749,000
 1,749,000
7.30
7.31
 Highway User Tax
Distribution
 2,183,000
 2,183,000
7.32
 Environmental
 303,000
 303,000
7.33County Technical Assistance Grants. (a)
7.34The commissioner of revenue may make
7.35technical assistance grants to counties to
7.36fund development, implementation, or
8.1maintenance of data collection and data
8.2processing systems that will facilitate
8.3improved reporting of property tax data
8.4on parcels and portions of parcels to
8.5the commissioner for analytical and
8.6administrative use. The grants may be made
8.7in the order they are requested, or on some
8.8other basis determined by the commissioner.
8.9The commissioner shall determine whether to
8.10require an application or recipient agreement
8.11and shall determine the form and content of
8.12the application or agreement.
8.13(b) $300,000 is appropriated to the
8.14commissioner from the general fund in fiscal
8.15year 2014 to make grants to counties as
8.16provided in this section. This appropriation
8.17is available for fiscal years 2014 and 2015
8.18only, and does not become part of the base.
8.19Appropriation; taxpayer assistance. (a)
8.20$200,000 in fiscal year 2014, and $200,000
8.21in fiscal year 2015, are appropriated from the
8.22general fund to the commissioner of revenue
8.23to make grants to one or more nonprofit
8.24organizations, qualifying under section
8.25501(c)(3) of the Internal Revenue Code of
8.261986, to coordinate, facilitate, encourage, and
8.27aid in the provision of taxpayer assistance
8.28services. The unencumbered balance in the
8.29first year does not cancel but is available for
8.30the second year.
8.31(b) For purposes of this section, "taxpayer
8.32assistance services" means accounting
8.33and tax preparation services provided by
8.34volunteers to low-income, elderly, and
8.35disadvantaged Minnesota residents to help
9.1them file federal and state income tax returns
9.2and Minnesota property tax refund claims
9.3and to provide personal representation before
9.4the Department of Revenue and Internal
9.5Revenue Service.
9.6
 Subd. 3.Debt Collection Management
 28,616,000
 28,616,000

9.7
 Sec. 16. GAMBLING CONTROL
 $
 3,519,000
 $
 3,519,000
9.8These appropriations are from the lawful
9.9gambling regulation account in the special
9.10revenue fund.

9.11
 Sec. 17. RACING COMMISSION
 $
 899,000
 $
 899,000
9.12These appropriations are from the racing
9.13and card playing regulation accounts in the
9.14special revenue fund.

9.15
 Sec. 18. STATE LOTTERY
9.16Notwithstanding Minnesota Statutes, section
9.17349A.10, subdivision 3, the operating budget
9.18must not exceed $30,500,000 in fiscal year
9.192014 and $30,500,000 in fiscal year 2015.

9.20
 Sec. 19. TORT CLAIMS
 $
 161,000
 $
 161,000
9.21To be spent by the commissioner of
9.22Management and Budget according
9.23to Minnesota Statutes, section 3.736,
9.24subdivision 7. If the appropriation for either
9.25year is insufficient, the appropriation for the
9.26other year is available for it.

9.27
9.28
 Sec. 20. MINNESOTA STATE RETIREMENT
SYSTEM
9.29
 Subdivision 1.Total Appropriation
 $
 3,828,000
 $
 3,898,000
10.1The amounts that may be spent for each
10.2purpose are specified in the following
10.3subdivisions.
10.4
 Subd. 2.Legislators
 3,343,000
 3,409,000
10.5Under Minnesota Statutes, sections 3A.03,
10.6subdivision 2; 3A.04, subdivisions 3 and 4;
10.7and 3A.115.
10.8
 Subd. 3.Constitutional Officers
 485,000
 489,000
10.9Under Minnesota Statutes, section 352C.001.
10.10If an appropriation in this section for either
10.11year is insufficient, the appropriation for the
10.12other year is available for it.

10.13
10.14
 Sec. 21. MINNEAPOLIS EMPLOYEES
RETIREMENT FUND
 $
 24,000,000
 $
 24,000,000
10.15These amounts are estimated to be needed
10.16under Minnesota Statutes, section 422A.101,
10.17subdivision 3.

10.18
10.19
 Sec. 22. TEACHERS RETIREMENT
ASSOCIATION
 $
 15,454,000
 $
 15,454,000
10.20The amounts estimated to be needed are as
10.21specified in paragraphs (a) and (b):
10.22(a) $12,954,000 the first year and $12,954,000
10.23the second year are for special direct state aid
10.24authorized under Minnesota Statutes, section
10.25354A.12, subdivisions 3a and 3c.
10.26(b) $2,500,000 the first year and $2,500,000
10.27the second year are for special direct state
10.28matching aid authorized under Minnesota
10.29Statutes, section 354A.12, subdivision 3b.

10.30
10.31
 Sec. 23. ST. PAUL TEACHERS
RETIREMENT FUND
 $
 2,827,000
 $
 2,827,000
10.32The amounts estimated to be needed for
10.33special direct state aid to first class city
11.1teachers retirement funds authorized under
11.2Minnesota Statutes, section 354A.12,
11.3subdivisions 3a and 3c.

11.4
11.5
 Sec. 24. DULUTH TEACHERS
RETIREMENT FUND
 $
 346,000
 $
 346,000
11.6The amounts estimated to be needed for
11.7special direct state aid to first class city
11.8teachers retirement funds authorized under
11.9Minnesota Statutes, section 354A.12,
11.10subdivisions 3a and 3c.

11.11
 Sec. 25. AMATEUR SPORTS COMMISSION
 $
 248,000
 $
 248,000

11.12
 Sec. 26. SCIENCE MUSEUM
 $
 1,079,000
 $
 1,079,000

11.13
11.14
 Sec. 27. MINNESOTA CENTER FOR THE
HUMANITIES
 $
 251,000
 $
 251,000

11.15
11.16
 Sec. 28. MINNESOTA HISTORICAL
SOCIETY
11.17
 Subdivision 1.Total Appropriation
 $
 20,737,000
 $
 20,633,000
11.18The amounts that may by spent for each
11.19purpose are specified in the following
11.20subdivisions.
11.21
 Subd. 2.Programs and Operations
 20,411,000
 20,411,000
11.22
 Subd. 3.Fiscal Agent
11.23
 (a) Minnesota International Center
 39,000
 39,000
11.24
 (b) Minnesota Air National Guard Museum
 14,000
 -0-
11.25
 (c) Minnesota Military Museum
 90,000
 -0-
11.26
 (d) Farmamerica
 115,000
 115,000
11.27
 (e) Hockey Hall of Fame
 68,000
 68,000
11.28
 (f) Balances Forward
11.29
 Subd. 4.Unencumbered Balance Available
12.1Any unencumbered balance remaining in this
12.2section the first year does not cancel, but is
12.3available for the second year of the biennium.

12.4
 Sec. 29. MINNESOTA STATE ARTS BOARD
12.5
 Subdivision 1.Total Appropriation
 $
 7,506,000
 $
 7,506,000
12.6The amounts that may be spent for each
12.7purpose are specified in the following
12.8subdivisions.
12.9
 Subd. 2.Operations and Services
 567,000
 567,000
12.10
 Subd. 3.Grants Program
 4,800,000
 4,800,000
12.11
 Subd. 4.Regional Arts Councils
 2,139,000
 2,139,000
12.12
 Subd. 5.Unencumbered Balance Available
12.13Any unencumbered balance remaining in this
12.14section the first year does not cancel, but is
12.15available for the second year of the biennium.

12.16
12.17
 Sec. 30. COUNCIL ON BLACK
MINNESOTANS
 $
 292,000
 $
 292,000

12.18
12.19
 Sec. 31. COUNCIL ON CHICANO/LATINO
AFFAIRS
 $
 275,000
 $
 275,000

12.20
12.21
 Sec. 32. COUNCIL ON ASIAN-PACIFIC
MINNESOTANS
 $
 254,000
 $
 254,000

12.22
 Sec. 33. INDIAN AFFAIRS COUNCIL
 $
 462,000
 $
 462,000

12.23
12.24
 Sec. 34. GENERAL CONTINGENT
ACCOUNTS
 $
 1,000,000
 $
 500,000
12.25
 Appropriations by Fund
12.26
 2014
 2015
12.27
 General
 500,000
 -0-
12.28
12.29
 State Government
Special Revenue
 400,000
 400,000
12.30
12.31
 Workers'
Compensation
 100,000
 100,000
13.1(a) The appropriations in this section
13.2may only be spent with the approval of
13.3the governor after consultation with the
13.4Legislative Advisory Commission pursuant
13.5to Minnesota Statutes, section 3.30.
13.6(b) If an appropriation in this section for
13.7either year is insufficient, the appropriation
13.8for the other year is available for it.
13.9(c) If a contingent account appropriation
13.10is made in one fiscal year, it should be
13.11considered a biennial appropriation.

13.12ARTICLE 2
13.13STATE GOVERNMENT OPERATIONS

13.14    Section 1. [6.475] CITY AND TOWN ACCOUNTING SYSTEM SOFTWARE.
13.15(a) The state auditor may charge user fees to cities, towns, and other government
13.16entities for the development, maintenance, and distribution of the small city and town
13.17accounting system software.
13.18(b) A city and town accounting systems (CTAS) account is established in the special
13.19revenue fund.
13.20(c) Amounts received under paragraph (a) shall be credited to the CTAS account in
13.21the special revenue fund and are appropriated to the state auditor for all costs associated
13.22with the development, maintenance, and distribution of the small city and town accounting
13.23system software.

13.24    Sec. 2. Minnesota Statutes 2012, section 6.48, is amended to read:
13.256.48 EXAMINATION OF COUNTIES; COST, FEES.
13.26All the powers and duties conferred and imposed upon the state auditor shall be
13.27exercised and performed by the state auditor in respect to the offices, institutions, public
13.28property, and improvements of several counties of the state. At least once in each year,
13.29if funds and personnel permit, the state auditor may visit, without previous notice, each
13.30county and make a thorough examination of all accounts and records relating to the
13.31receipt and disbursement of the public funds and the custody of the public funds and
13.32other property. If the audit is performed by a private certified public accountant, the state
13.33auditor may require additional information from the private certified public accountant as
14.1the state auditor deems in the public interest. The state auditor may accept the audit or
14.2make additional examinations as the state auditor deems to be in the public interest. The
14.3state auditor shall prescribe and install systems of accounts and financial reports that shall
14.4be uniform, so far as practicable, for the same class of offices. A copy of the report of
14.5such examination shall be filed and be subject to public inspection in the office of the state
14.6auditor and another copy in the office of the auditor of the county thus examined. The state
14.7auditor may accept the records and audit, or any part thereof, of the Department of Human
14.8Services in lieu of examination of the county social welfare funds, if such audit has been
14.9made within any period covered by the state auditor's audit of the other records of the
14.10county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance
14.11in any office of such county, such report shall be filed with the county attorney of the
14.12county, and the county attorney shall institute such civil and criminal proceedings as the
14.13law and the protection of the public interests shall require.
14.14The county receiving any examination shall pay to the state general fund,
14.15notwithstanding the provisions of section 16A.125, state auditor enterprise fund the total
14.16cost and expenses of such examinations, including the salaries paid to the examiners
14.17while actually engaged in making such examination. The state auditor on deeming it
14.18advisable may bill counties, having a population of 200,000 or over, monthly periodically
14.19 for services rendered and the officials responsible for approving and paying claims shall
14.20cause said bill to be promptly paid. The general state auditor enterprise fund shall be
14.21credited with all collections made for any such examinations.

14.22    Sec. 3. Minnesota Statutes 2012, section 6.56, subdivision 2, is amended to read:
14.23    Subd. 2. Billings by state auditor. Upon the examination of the books, records,
14.24accounts, and affairs of any political subdivision, as provided by law, such political
14.25subdivision shall be liable to the state for the total cost and expenses of such examination,
14.26including the salaries paid to the examiners while actually engaged in making such
14.27examination. The state auditor may bill such political subdivision monthly periodically
14.28 for service rendered and the officials responsible for approving and paying claims are
14.29authorized to pay said bill promptly. Said payments shall be without prejudice to any
14.30defense against said claims that may exist or be asserted. The general state auditor
14.31enterprise fund shall be credited with all collections made for any such examinations,
14.32including interest payments made pursuant to subdivision 3.

14.33    Sec. 4. [6.581] STATE AUDITOR ENTERPRISE FUND.
15.1    Subdivision 1. State auditor enterprise fund. A state auditor enterprise fund
15.2is established in the state treasury. All amounts received for the costs and expenses of
15.3examinations performed under this chapter shall be credited to the fund. Amounts credited
15.4to the fund are annually appropriated to the state auditor to pay the costs and expenses
15.5related to the examinations performed, including, but not limited to, salaries, office
15.6overhead, equipment, authorized contracts, and other expenses.
15.7    Subd. 2. Contract with private parties; equipment acquisition. When full-time
15.8personnel are not available, the state auditor may contract with a private entity for
15.9accounting and other technical services. Notwithstanding any law to the contrary, the
15.10acquisition of equipment may include duplicating equipment to be used in producing the
15.11reports issued by the Office of the State Auditor.
15.12    Subd. 3. Schedule of charges. The state auditor may adjust the schedule of charges
15.13for the examinations performed so that the charges are sufficient to cover all costs of the
15.14examinations performed and that the aggregate charges collected are sufficient to pay all
15.15salaries and other expenses, including the charges for the use of the equipment used in
15.16connection with the reimbursable examinations performed, and the cost of contracting for
15.17accounting and other technical services. The schedule of charges shall be based on an
15.18estimate of the cost of performing reimbursable examinations including, but not limited
15.19to, salaries, office overhead, equipment, authorized contracts, and other expenses. The
15.20state auditor may allocate a proportionate part of the total costs to an hourly or daily
15.21charge for each person or class of persons engaged in the performance of an examination.
15.22The schedule of charges shall reflect an equitable charge for the expenses incurred in the
15.23performance of any given examination. The state auditor shall review and adjust the
15.24schedule of charges for the examinations performed at least annually. All schedules of
15.25charges must be approved by the commissioner of management and budget before the
15.26charges are adopted to ensure that the amount collected is sufficient to pay all the costs
15.27connected with the examinations performed during the fiscal year.

15.28    Sec. 5. [16.0466] STATE AGENCY TECHNOLOGY PROJECTS.
15.29Every state agency with an information or telecommunications project must consult
15.30with the Office of Enterprise Technology to determine what the IT cost of the project is, and
15.31transfer the IT cost portion to the Office of Enterprise Technology, unless the commissioner
15.32of the Office of Enterprise Technology determines that a transfer is not required.

15.33    Sec. 6. Minnesota Statutes 2012, section 16E.07, subdivision 6, is amended to read:
16.1    Subd. 6. Fees. The office shall establish fees for technical and transaction services
16.2for government units through North Star. Fees must be credited to the North Star account.
16.3Except for the convenience fee under subdivision 12, the office may not charge a fee for
16.4viewing or inspecting data made available through North Star or linked facilities, unless
16.5specifically authorized by law.
16.6EFFECTIVE DATE.This section is effective July 1, 2013.

16.7    Sec. 7. Minnesota Statutes 2012, section 16E.07, is amended by adding a subdivision
16.8to read:
16.9    Subd. 12. Private entity services; fee authority; council established. (a) The
16.10office may enter into a contract with a private entity to manage, maintain, support, and
16.11expand North Star and online government information services to citizens and businesses.
16.12(b) A contract established under paragraph (a) may provide for compensation of the
16.13private entity through a fee established under paragraph (c).
16.14(c) Upon authorization by the E-Government Advisory Council as created in
16.15paragraph (e), a private entity that enters into a contract under paragraph (a) or the
16.16office may establish a convenience fee for users of North Star and online government
16.17information services up to a total of $2 per transaction. A fee established under this
16.18paragraph is in addition to any fees or surcharges authorized under other law.
16.19(d) Receipts from the convenience fee shall be deposited in the North Star account
16.20established in subdivision 7. Notwithstanding section 16A.1285, subdivision 2, receipts
16.21credited to the account are appropriated to the office for payment to the contracted private
16.22entity under paragraph (a). In lieu of depositing the receipts in the North Star account, the
16.23office can directly transfer the receipts to the private entity or allow the private entity to
16.24retain the receipts pursuant to a contract established under this subdivision.
16.25(e) The E-Government Advisory Council is established for the purpose of improving
16.26online government information services to citizens and businesses. The council shall
16.27recommend to the office the priority of North Star projects and online government
16.28information services to be developed and supported by convenience fee receipts. The
16.29council shall provide oversight on the convenience fee and its receipts in the North Star
16.30account. The council shall by majority quorum vote approve or disapprove establishing
16.31the convenience fee on particular types of transactions, the fee amount, and any changes in
16.32the fee amount. If the convenience fee receipts are retained by or transferred to the private
16.33entity in lieu of deposit in the North Star account, the council may audit the private entity's
16.34convenience fee receipts, expenses paid by the receipts, and associated financial statements.
17.1(1) The council shall consist of the state chief information officer or the chief
17.2information officer's designee, one member appointed by the speaker of the house, one
17.3member appointed by the senate majority leader, and six members appointed by the
17.4governor representing state executive branch agencies that are actively involved with
17.5private businesses, the private business community, or the public.
17.6(2) Membership terms, removal of member, and filling of vacancies are as provided
17.7in section 15.059. Members do not receive compensation or reimbursement for expenses.
17.8(3) The council shall select a chair from its members. The office shall provide
17.9administrative support to the council.
17.10(f) The office shall report to the chairs and ranking minority members of the house
17.11of representatives and senate committees with jurisdiction over state government finance
17.12by January 15 of each odd-numbered year regarding the convenience fee receipts and
17.13the status of North Star projects and online government information services developed
17.14and supported by convenience fee receipts.

17.15    Sec. 8. Minnesota Statutes 2012, section 469.3201, is amended to read:
17.16469.3201 STATE LEGISLATIVE AUDITOR; AUDITS OF JOB
17.17OPPORTUNITY BUILDING ZONES AND BUSINESS SUBSIDY AGREEMENTS.
17.18    As resources allow, the Office of the State Auditor legislative auditor must annually
17.19 audit the creation and operation of all job opportunity building zones and business
17.20subsidy agreements entered into under Minnesota Statutes, sections 469.310 to 469.320.
17.21To the extent necessary to perform this audit, the state auditor may request from the
17.22commissioner of revenue tax return information of taxpayers who are eligible to receive
17.23tax benefits authorized under section 469.315. To the extent necessary to perform this
17.24audit, the state auditor may request from the commissioner of employment and economic
17.25development wage detail report information required under section 268.044 of taxpayers
17.26eligible to receive tax benefits authorized under section 469.315 All public officials and
17.27parties to the agreements shall provide the legislative auditor with all documents and
17.28data the legislative auditor deems necessary and in all other respects comply with the
17.29requirements of section 3.978, subdivision 2.

17.30    Sec. 9. Minnesota Statutes 2012, section 471.699, is amended to read:
17.31471.699 ENFORCEMENT OF REPORTING REQUIREMENTS.
17.32Failure of a city to timely file a statement or report under section 471.697 or 471.698
17.33shall, in addition to any other penalties provided by law, authorize the state auditor to send
17.34full-time personnel to the city or to contract with private persons, firms, or corporations
18.1pursuant to section 6.58 6.581, in order to complete and file the financial statement or
18.2report. The expenses related to the completion and filing of the financial statement or
18.3report shall be charged to the city. Upon failure by the city to pay the charge within 30
18.4days of billing, the state auditor shall so certify to the commissioner of management and
18.5budget who shall forward the amount certified to the general fund and deduct the amount
18.6from any state funds due to the city under any shared taxes or aids. The state auditor's
18.7annual report on cities shall include a listing of all cities failing to file a statement or report.

18.8    Sec. 10. REPEALER.
18.9Minnesota Statutes 2012, section 6.58, is repealed.

18.10ARTICLE 3
18.11CAMPAIGN FINANCE

18.12    Section 1. Minnesota Statutes 2012, section 10A.01, subdivision 26, is amended to read:
18.13    Subd. 26. Noncampaign disbursement. "Noncampaign disbursement" means
18.14a purchase or payment of money or anything of value made, or an advance of credit
18.15incurred, or a donation in kind received, by a principal campaign committee for any of
18.16the following purposes:
18.17    (1) payment for accounting and legal services;
18.18    (2) return of a contribution to the source;
18.19    (3) repayment of a loan made to the principal campaign committee by that committee;
18.20    (4) return of a public subsidy;
18.21    (5) payment for food, beverages, and necessary utensils and supplies, entertainment,
18.22and facility rental for a fund-raising event;
18.23    (6) services for a constituent by a member of the legislature or a constitutional officer
18.24in the executive branch, including the costs of preparing and distributing a suggestion or
18.25idea solicitation to constituents, performed from the beginning of the term of office to
18.26adjournment sine die of the legislature in the election year for the office held, and half
18.27the cost of services for a constituent by a member of the legislature or a constitutional
18.28officer in the executive branch performed from adjournment sine die to 60 days after
18.29adjournment sine die;
18.30    (7) payment for food and beverages consumed by a candidate or volunteers while
18.31they are engaged in campaign activities;
18.32    (8) payment for food or a beverage consumed while attending a reception or meeting
18.33directly related to legislative duties;
19.1    (9) payment of expenses incurred by elected or appointed leaders of a legislative
19.2caucus in carrying out their leadership responsibilities;
19.3    (10) payment by a principal campaign committee of the candidate's expenses for
19.4serving in public office, other than for personal uses;
19.5    (11) costs of child care for the candidate's children when campaigning;
19.6    (12) fees paid to attend a campaign school;
19.7    (13) costs of a postelection party during the election year when a candidate's name
19.8will no longer appear on a ballot or the general election is concluded, whichever occurs first;
19.9    (14) interest on loans paid by a principal campaign committee on outstanding loans;
19.10    (15) filing fees paid to be on the ballot, late filing fees, civil penalties, and
19.11administrative fees paid to the board;
19.12    (16) post-general election thank-you notes or advertisements in the news media;
19.13    (17) the cost of campaign material purchased to replace defective campaign material,
19.14if the defective material is destroyed without being used;
19.15    (18) contributions to a party unit;
19.16    (19) payments for funeral gifts or memorials;
19.17    (20) the cost of a magnet less than six inches in diameter containing legislator
19.18contact information and distributed to constituents;
19.19    (21) costs associated with a candidate attending a political party state or national
19.20convention in this state;
19.21    (22) other purchases or payments specified in board rules or advisory opinions as
19.22being for any purpose other than to influence the nomination or election of a candidate or
19.23to promote or defeat a ballot question; and
19.24(23) costs paid to a third party for processing contributions made by a credit card,
19.25debit card, or electronic check.
19.26    The board must determine whether an activity involves a noncampaign disbursement
19.27within the meaning of this subdivision.
19.28    A noncampaign disbursement is considered to be made in the year in which the
19.29candidate made the purchase of goods or services or incurred an obligation to pay for
19.30goods or services.

19.31    Sec. 2. Minnesota Statutes 2012, section 10A.02, subdivision 15, is amended to read:
19.32    Subd. 15. Disposition of civil penalties and late filing fees. The board must
19.33deposit all civil penalties and late filing fees collected under this chapter into the general
19.34fund in the state treasury.

20.1    Sec. 3. [10A.023] BOARD FUNDING; ADMINISTRATIVE FEES.
20.2    Subdivision 1. Fees. (a) The board shall assess annual administrative fees according
20.3to this subdivision. The fees are to partially fund the cost of administration of the campaign
20.4finance and lobbying programs administered by the board. Fees assessed for participants
20.5in one program must not be used to support another program. Administrative fees must be
20.6paid for each calendar year or portion of a calendar year during which an entity is registered.
20.7(b) The amount of the fee is as follows:
20.8(1) The fee for lobbyists registered under this chapter is $50 per lobbyist/association
20.9registration, with a maximum fee of $750 per individual lobbyist.
20.10(2) The fee for principal campaign committees, party units, political committees,
20.11and political funds is based on the registrant's receipts as follows:
20.12(i) an initial administrative fee for a registrant with no receipts history is $75;
20.13(ii) a registrant with receipts of $750.01 to $5,000, the administrative fee is $75;
20.14(iii) a registrant with receipts of $5,000.01 to $10,000, the administrative fee is $100;
20.15(iv) a registrant with receipts of $10,000.01 to $25,000, the administrative fee is $250;
20.16(v) a registrant with receipts of $25,000.01 to $50,000, the administrative fee is $500;
20.17(vi) a registrant with receipts of $50,000.01 to $100,000, the administrative fee
20.18is $1,000;
20.19(vii) a registrant with receipts of $100,000.01 to $250,000, the administrative fee
20.20is $2,000;
20.21(viii) a registrant with receipts of $250,000.01 to $500,000, the administrative fee
20.22is $3,000;
20.23(ix) a registrant with receipts of $500,000.01 to $1,000,000, the administrative
20.24fee is $4,000; and
20.25(x) a registrant with receipts greater than $1,000,000, the administrative fee is $5,000.
20.26(c) "Receipts," as used in this subdivision, means all money and in-kind receipts
20.27from any source. The receipt amount on which the administrative fee is based is the
20.28average of the registrant's receipts for the most recent four complete calendar years prior
20.29to the year in which the fee is being paid. If a registrant was not registered during all four
20.30calendar years, the administrative fee is based on the average of the registrant's receipts
20.31for the number of calendar years the registrant was registered immediately prior to the
20.32year for which an administrative fee is being paid.
20.33(d) A political fund that does not accept contributions, but uses only its own general
20.34treasury money, is exempt from the requirements of this section. An association whose
20.35political fund is on inactive status on March 1 of any year is not required to pay the
20.36administrative fee that is due on March 1 of that year. At the time that an association
21.1changes the status of its political fund from inactive to active, an initial administrative
21.2fee is due.
21.3(e) In a calendar year in which a registrant paid an initial administrative fee under
21.4this section, the fee must be recalculated based on the registrant's year-end report of
21.5receipts and expenditures. If the receipts disclosed on that report place the registrant in
21.6a higher fee category, the board must assess the difference between the fee paid and the
21.7higher fee. The notice in subdivision 3, paragraph (b), must be given, and the additional
21.8fee is due 14 days after the notice was sent.
21.9    Subd. 2. Payment of administrative fees; late payments. (a) Initial administrative
21.10fees are due and must be paid when a new registration is filed. Annual administrative fees
21.11are due on March 1 of each calendar year except that for calendar year 2013, the fee is due
21.12July 1. If an entity terminates its registration with the board before March 1 in a calendar
21.13year or before July 1 in 2013, no further administrative fee is due. A registrant who pays
21.14an initial administrative fee before March 1 of a calendar year is not required to pay the
21.15annual administrative fee due March 1 of that year.
21.16(b) The board must provide written or electronic notice prior to the date an
21.17administrative fee is due. A notice is valid if it is sent to the lobbyist or the treasurer of the
21.18registrant required to pay an administrative fee at the most recent United States mail or
21.19electronic mail address provided to the board. The notice must be sent not less than 14
21.20days before the fee is due. If a notice is sent less than 14 days before the fee is due, the fee
21.21is due 14 days after the notice was sent.
21.22(c) The board may impose a penalty equal to 50 percent of the administrative fee
21.23if the fee is not paid by the due date. The board may impose a penalty of an additional
21.2450 percent of the original administrative fee if the fee is not paid within 30 days after the
21.25due date. The board may take such legal or other measures as available to collect unpaid
21.26administrative fees and penalties.
21.27(d) The treasurer of the principal campaign committee, party unit, political
21.28committee, or political fund is responsible for paying any administrative fee or penalty that
21.29becomes due. Administrative fees and penalties may be paid using principal campaign
21.30committee, party unit, political committee, or political fund money. In the case of a
21.31candidate's principal campaign committee, the candidate is also personally liable for
21.32payment of any administrative fee or penalty.
21.33    Subd. 3. Campaign finance board administrative fee accounts; appropriation.
21.34(a) Two accounts are established in the special revenue fund of the state; one is the
21.35"campaign finance board lobbyist administrative fee account," and the other is the
21.36"campaign finance board campaign finance administrative fee account." All fees and
22.1penalties collected from lobbyists under this subdivision must be deposited in the
22.2campaign finance board lobbyist administrative fee account. All other fees and penalties
22.3collected under this subdivision must be deposited in the campaign finance board
22.4campaign finance administrative fee account.
22.5(b) $100,000 per fiscal year is appropriated to the board from the campaign finance
22.6board lobbyist administrative fee account for administration and improvement of the
22.7lobbyist registration and disclosure programs established in this chapter. $250,000 per
22.8fiscal year is appropriated to the board from the campaign finance board campaign finance
22.9administrative fee account for administration and improvement of the campaign finance
22.10registration and disclosure programs established in this chapter.
22.11(c) Any amount remaining in the accounts established in this section after the
22.12appropriations specified in paragraph (b) have been made must be carried forward into the
22.13next fiscal year and is available for the appropriations specified in this section.
22.14    Subd. 4. Adjustments to administrative fees. (a) The administrative fee
22.15amounts in subdivision 1 must be adjusted each general election year as provided in
22.16this subdivision. Each general election year, the executive director of the board must
22.17determine the percentage increase in the Consumer Price Index from December of the
22.18year preceding the last general election year to December of the year preceding the year in
22.19which the determination is made. The dollar amounts used for the preceding year must be
22.20multiplied by that percentage. The product of the calculation must be added to each fee
22.21amount to produce the fee amount to be in effect for the subsequent year. The product
22.22must be rounded up to the next highest $10 increment. The index used must be the revised
22.23Consumer Price Index - All Urban Consumers for the St. Paul-Minneapolis metropolitan
22.24area prepared by the United States Department of Labor.
22.25(b) If the amount available in either of the accounts established in subdivision 3 in
22.26any fiscal year is insufficient to make the appropriations specified in subdivision 4, the
22.27board may increase the administrative fees for registrants whose fees are deposited into
22.28that account by ten percent in the next fiscal year. The amount of the appropriation in that
22.29fiscal year is increased by the amount of the insufficiency from the prior year.
22.30(c) If the board determines that either of the accounts in subdivision 3 has a surplus
22.31and that such surplus is likely to continue, the board may, by vote at a regular meeting,
22.32temporarily decrease the fees assessed to registrants whose fees are deposited into that
22.33account, on a proportional basis. Any such adjustment must be for an entire calendar year.
22.34An adjustment under this paragraph is temporary and automatically expires at the end of
22.35the calendar year for which it was made.
23.1    Subd. 5. Accounting, adjustments, and report. The board must report to the
23.2legislature no later than January 15 of each odd-numbered calendar year concerning
23.3the cost of operation of its lobbying and campaign finance programs. The report must
23.4include recommendations to the legislature concerning adjustments to the fees imposed
23.5in subdivision 1 to ensure that lobbyist administrative fees do not exceed the cost of
23.6administering the lobbying programs of the board and to ensure that the fees imposed on
23.7principal campaign committees, party units, political committees, and political funds do
23.8not exceed the cost of administering the campaign finance programs of the board. The
23.9report required under this subdivision must be provided to the chairs and ranking minority
23.10members of each policy and finance committee in the legislature having jurisdiction over
23.11the board and to the leadership of each legislative body.

23.12    Sec. 4. EFFECTIVE DATE.
23.13This article is effective the day following final enactment and applies to
23.14administrative fees due July 1, 2013.

23.15ARTICLE 4
23.16TRUST LANDS

23.17    Section 1. Minnesota Statutes 2012, section 15A.0815, subdivision 3, is amended to
23.18read:
23.19    Subd. 3. Group II salary limits. The salaries for positions in this subdivision may
23.20not exceed 85 percent of the salary of the governor:
23.21    Executive director of Gambling Control Board;
23.22    Commissioner, Iron Range Resources and Rehabilitation Board;
23.23    Commissioner, Bureau of Mediation Services;
23.24    Ombudsman for Mental Health and Developmental Disabilities;
23.25    Chair, Metropolitan Council;
23.26    School trust lands director;
23.27    Executive director of pari-mutuel racing; and
23.28    Commissioner, Public Utilities Commission.

23.29    Sec. 2. Minnesota Statutes 2012, section 94.342, subdivision 5, is amended to read:
23.30    Subd. 5. Additional restrictions on school trust land. School trust land may be
23.31exchanged with other Class A land only if the school trust lands director Legislative
23.32Permanent School Fund Commission is appointed as temporary trustee of the school trust
24.1land for purposes of the exchange. The Legislative Permanent School Fund Commission
24.2shall provide independent legal counsel to review exchanges.

24.3    Sec. 3. Minnesota Statutes 2012, section 127A.30, subdivision 1, is amended to read:
24.4    Subdivision 1. Commission established; membership. (a) The Legislative
24.5Permanent School Fund Commission of 12 members is established to advise the
24.6Department of Natural Resources and the school trust lands director on the management
24.7of permanent school fund land, which is held in trust for the school districts of the state
24.8and to review legislation affecting permanent school fund land. The commission consists
24.9of the following persons:
24.10(1) six members of the senate, including three majority party members appointed by
24.11the majority leader and three minority party members appointed by the minority leader; and
24.12(2) six members of the house of representatives, including three majority party
24.13members appointed by the speaker of the house and three minority party members
24.14appointed by the minority leader.
24.15(b) Appointed legislative members serve at the pleasure of the appointing authority
24.16and continue to serve until their successors are appointed.
24.17(c) The first meeting of the commission shall be convened by the chair of the
24.18Legislative Coordinating Commission. Members shall elect a chair, vice-chair, secretary,
24.19and other officers as determined by the commission. The chair may convene meetings as
24.20necessary to conduct the duties prescribed by this section.

24.21    Sec. 4. Minnesota Statutes 2012, section 127A.351, is amended to read:
24.22127A.351 POLICY AND PURPOSE.
24.23(a) The purpose of sections 127A.351 to 127A.353 127A.352 is to establish a school
24.24trust lands director position to recommend management ensure the management policies
24.25for Minnesota's school trust lands, as defined in sections 92.121 and 127A.31, are in
24.26accordance with the provisions of the Minnesota Constitution, article XI, section 8.
24.27(b) As trustee, the state must manage the lands and revenues generated from the
24.28lands consistent with the best interests of the trust beneficiaries as defined in the Minnesota
24.29Constitution, article XI, section 8. When it is in the best interest of the school trust lands,
24.30ecological benefits shall be taken into consideration.
24.31(c) The trustee must be concerned with both income for the current beneficiaries
24.32and the preservation of trust assets for future beneficiaries, which requires a balancing of
24.33short-term and long-term interests so that long-term benefits are not lost in an effort to
24.34maximize short-term gains.
25.1(d) Sections 127A.351 to 127A.353 127A.352 shall be liberally construed to enable
25.2the school trust lands director and the commissioner of natural resources to faithfully
25.3fulfill the state's obligations to the trust beneficiaries.

25.4    Sec. 5. Minnesota Statutes 2012, section 127A.352, subdivision 1, is amended to read:
25.5    Subdivision 1. Recommendations. The Legislative Permanent School Fund
25.6Commission shall recommend policies for the school trust lands director and the
25.7commissioner of natural resources that are consistent with the Minnesota Constitution,
25.8state law, and the goals established under section 84.027, subdivision 18.

25.9    Sec. 6. Minnesota Statutes 2012, section 127A.352, subdivision 2, is amended to read:
25.10    Subd. 2. Duties. The commissioner of natural resources and the school trust lands
25.11director shall recommend to the governor and the Legislative Permanent School Fund
25.12Commission any necessary or desirable changes in statutes relating to the trust or their
25.13trust responsibilities consistent with the policies under section 127A.351.

25.14    Sec. 7. REPEALER.
25.15Minnesota Statutes 2012, sections 127A.352, subdivision 3; and 127A.353, are
25.16repealed.

25.17ARTICLE 5
25.18VETERANS AFFAIRS

25.19
 Section 1. VETERANS AFFAIRS APPROPRIATIONS.
25.20The sums shown in the columns marked "Appropriations" are appropriated to the
25.21agencies and for the purposes specified in this article. The appropriations are from the
25.22general fund and are available for the fiscal years indicated for each purpose. The figures
25.23"2014" and "2015" used in this article mean that the appropriations listed under them are
25.24available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. "The
25.25first year" is fiscal year 2014. "The second year" is fiscal year 2015. "The biennium" is
25.26fiscal years 2014 and 2015.
25.27
 APPROPRIATIONS
25.28
 Available for the Year
25.29
 Ending June 30
25.30
 2014
 2015

25.31
 Sec. 2. VETERANS AFFAIRS
26.1
 Subdivision 1.Total Appropriation
 $
 62,643,000
 $
 61,998,000
26.2
 Appropriations by Fund
26.3
 2014
 2015
26.4
 General
 62,643,000
 61,998,000
26.5The amounts that may be spent for each
26.6purpose are specified in the following
26.7subdivisions.
26.8
 Subd. 2.Veterans Services
 15,186,000
 15,485,000
26.9
 Appropriations by Fund
26.10
 2014
 2015
26.11
 General
 15,186,000
 15,485,000
26.12IT Upgrades. $618,000 in fiscal year 2014
26.13and $382,000 in fiscal year 2015 are to
26.14improve and modernize the department's
26.15information technology systems. These
26.16funds shall be transferred to the Office of
26.17Enterprise Technology. This is a onetime
26.18transfer and is available until spent.
26.19Veterans Cemetery in Fillmore County.
26.20 $425,000 in fiscal year 2015 is for operation
26.21of the new veterans cemetery in Fillmore
26.22County. This amount is added to the
26.23program's base funding.
26.24Honor Guards. $200,000 each year is
26.25for compensation for honor guards at
26.26the funerals of veterans under Minnesota
26.27Statutes, section 197.231. This amount is
26.28added to the program's base funding.
26.29Minnesota GI Bill. $100,000 each year is for
26.30the costs of administering the Minnesota GI
26.31Bill on-the-job training and apprenticeship
26.32program under Minnesota Statutes, section
26.33197.791.
27.1Gold Star Program. $100,000 each year
27.2is for administering the Gold Star Program
27.3for surviving family members of deceased
27.4veterans. This amount is added to the
27.5program's base funding.
27.6County Veterans Service Office. $595,000
27.7each year is for funding the County
27.8Veterans Service Office grant program under
27.9Minnesota Statutes, section 197.608.
27.10Veterans Service Organizations. $353,000
27.11each year is for grants to the following
27.12congressionally chartered veterans service
27.13organizations, as designated by the
27.14commissioner: Disabled American Veterans,
27.15Military Order of the Purple Heart, American
27.16Legion, Veterans of Foreign Wars, Vietnam
27.17Veterans of America, AMVETS, and
27.18Paralyzed Veterans of America. This funding
27.19must be allocated in direct proportion to
27.20the funding currently being provided by the
27.21commissioner to these organizations.
27.22Veterans Paramedic Apprenticeship
27.23Program. All unspent funds, estimated to
27.24be $110,000, from the Veterans Paramedic
27.25Apprenticeship Program, from the onetime
27.26appropriation under Laws 2009, chapter 79,
27.27article 13, section 7, are canceled to the
27.28general fund on July 1, 2013.
27.29
 Subd. 3.Veterans Homes
 47,457,000
 46,513,000
27.30
 Appropriations by Fund
27.31
 2014
 2015
27.32
 General
 47,457,000
 46,513,000
27.33Veterans Homes Special Revenue Account.
27.34 The general fund appropriations made to the
27.35department may be transferred to a veterans
28.1homes special revenue account in the special
28.2revenue fund in the same manner as other
28.3receipts are deposited according to Minnesota
28.4Statutes, section 198.34, and are appropriated
28.5to the department for the operation of
28.6veterans homes facilities and programs.
28.7IT Upgrades. $2,472,000 in fiscal year 2014
28.8and $1,528,000 in fiscal year 2015 are to
28.9improve and modernize the department's
28.10information technology systems. These
28.11funds shall be transferred to the Office of
28.12Enterprise Technology. This is a onetime
28.13transfer and is available until spent.
28.14Maximize Federal Reimbursements.
28.15 The department will seek opportunities
28.16to maximize federal reimbursements of
28.17Medicare-eligible expenses and will provide
28.18annual reports to the commissioner of
28.19management and budget on the federal
28.20Medicare reimbursements received.
28.21Contingent upon future federal Medicare
28.22receipts, reductions to the homes' general
28.23fund appropriation may be made.

28.24ARTICLE 6
28.25VETERANS PROVISIONS

28.26    Section 1. [168.1299] SPECIAL "SUPPORT OUR VETERANS" PLATES.
28.27    Subdivision 1. General requirements and procedures. (a) The commissioner shall
28.28issue special "Support Our Veterans" plates to an applicant who:
28.29(1) is a registered owner of a passenger automobile;
28.30(2) pays a fee of $10 to cover costs of handling and manufacturing the plates;
28.31(3) pays the registration tax required under section 168.013;
28.32(4) pays the fees required under this chapter;
28.33(5) contributes a minimum of $30 annually to the "Support Our Troops" account
28.34under section 190.19; and
29.1(6) complies with this chapter and the rules governing registration of motor vehicles
29.2and licensing of drivers.
29.3(b) The Support Our Veterans plate application must indicate that the annual
29.4contribution specified under paragraph (a), clause (5), is a minimum contribution to receive
29.5the special plate and that the applicant may make an additional contribution to the account.
29.6    Subd. 2. Design. After consultation with interested groups, the commissioner of
29.7veterans affairs shall design the "Support Our Veterans" plates, subject to the approval of
29.8the commissioner.
29.9    Subd. 3. No refund. Contributions under this section must not be refunded.
29.10    Subd. 4. Plates transfer. Notwithstanding section 168.12, subdivision 1, on
29.11payment of a transfer fee of $5, plates issued under this section may be transferred to
29.12another passenger automobile by the individual to whom the "Support Our Veterans"
29.13plates were issued.
29.14    Subd. 5. Contribution and fees credited. Contributions under subdivision
29.151, paragraph (a), clause (5), must be paid to the commissioner and credited to the
29.16"Support Our Troops" account established in section 190.19. The contribution credited
29.17to the "Support Our Troops" account under this subdivision must be transferred to the
29.18commissioner of veterans affairs and used only for the purposes established under section
29.19196.31, subdivision 4. The fees collected under this section must be deposited in the
29.20vehicle services operating account in the special revenue fund under section 299A.705.
29.21    Subd. 6. Record. The commissioner shall maintain a record of the number of
29.22plates issued under this section.
29.23EFFECTIVE DATE.This section is effective January 1, 2014, for plates issued
29.24on or after that date.

29.25    Sec. 2. [196.31] SUPPORT OUR VETERANS ACCOUNT.
29.26    Subdivision 1. Establishment. The Minnesota "Support Our Veterans" account
29.27is established in the special revenue fund. The account shall consist of contributions
29.28from private sources and appropriations. Money in the account is appropriated to the
29.29Department of Veterans Affairs.
29.30    Subd. 2. Purpose. Money appropriated to the Department of Veterans Affairs from
29.31the Minnesota "Support Our Veterans" account shall be used to establish a grant program
29.32to address the emerging needs of veterans. The commissioner shall administer a grant
29.33program and award grants with the money from this account to eligible individuals or
29.34organizations.
30.1    Subd. 3. Eligibility. To be eligible for a grant under this section, an individual or
30.2organization must apply to the commissioner by submitting a proposal that meets the
30.3criteria specified by the commissioner. In addition, the proposal must:
30.4(1) not duplicate services provided elsewhere;
30.5(2) have set goals and performance measures; and
30.6(3) be used for one of the purposes listed in subdivision 4.
30.7    Subd. 4. Uses. Money appropriated to the Department of Veterans Affairs from the
30.8Minnesota "Support Our Veterans" account may be used to award grants for the following
30.9purposes:
30.10(1) outreach to underserved veterans;
30.11(2) providing services and programs for veterans and their families;
30.12(3) assisting in the reintegration of combat veterans into society;
30.13(4) assisting in the reduction of homelessness among veterans; and
30.14(5) addressing other emerging needs of veterans as determined by the commissioner.
30.15    Subd. 5. Annual report. The commissioner of veterans affairs must report by
30.16February 1, 2014, and each year thereafter, to the chairs and ranking minority members
30.17of the legislative committees and divisions with jurisdiction over veterans affairs on
30.18the number, amounts, and use of grants made by the commissioner from the Minnesota
30.19"Support Our Veterans" account in the previous year.

30.20    Sec. 3. Minnesota Statutes 2012, section 197.608, subdivision 3, is amended to read:
30.21    Subd. 3. Eligibility. (a) To be eligible for a grant under this program subdivision 6,
30.22a county must employ a county veterans service officer as authorized by sections 197.60
30.23and 197.606, who is certified to serve in this position by the commissioner.
30.24(b) A county that employs a newly hired county veterans service officer who is
30.25serving an initial probationary period and who has not been certified by the commissioner
30.26is eligible to receive a grant under subdivision 2a 6 for one year from the date the county
30.27veterans service officer is appointed.
30.28(c) Except for the situation described in paragraph (b), A county whose county
30.29veterans service officer does not receive certification during any year of the three-year
30.30cycle is not eligible to receive a grant during the remainder of that cycle or the next
30.31three-year cycle by the end of the first year of the county veterans service officer's
30.32appointment is ineligible for the grant under subdivision 6 until the county veterans
30.33service officer receives certification.

30.34    Sec. 4. Minnesota Statutes 2012, section 197.608, subdivision 4, is amended to read:
31.1    Subd. 4. Grant process. (a) The commissioner shall determine the process for
31.2awarding grants. A grant may be used only for the purpose of enhancing the operations of
31.3the County Veterans Service Office.
31.4(b) The commissioner shall provide a list of qualifying uses for grant expenditures
31.5as developed in subdivision 5 and shall approve a grant under subdivision 6 only for a
31.6qualifying use and if there are sufficient funds remaining in the grant program to cover the
31.7full amount of the grant.
31.8(c) The commissioner is authorized to use any unexpended funding for this program
31.9to provide training and education for county veterans service officers.

31.10    Sec. 5. Minnesota Statutes 2012, section 197.608, subdivision 5, is amended to read:
31.11    Subd. 5. Qualifying uses. The commissioner shall consult with the Minnesota
31.12Association of County Veterans Service Officers in developing a list of qualifying uses for
31.13grants awarded under this program subdivision 6.
31.14The commissioner is authorized to use any unexpended funding for this program to
31.15provide training and education for county veterans service officers.

31.16    Sec. 6. Minnesota Statutes 2012, section 197.608, subdivision 6, is amended to read:
31.17    Subd. 6. Grant amount. (a) Each county is eligible to receive an annual grant of
31.18$5,000 for the following purposes:
31.19(1) to provide outreach to the county's veterans;
31.20(2) to assist in the reintegration of combat veterans into society;
31.21(3) to collaborate with other social service agencies, educational institutions, and
31.22other community organizations for the purposes of enhancing services offered to veterans;
31.23(4) to reduce homelessness among veterans; and
31.24(5) to enhance the operations of the county veterans service office.
31.25(b) In addition to the grant amount in paragraph (a), each county is eligible to receive
31.26an additional annual grant under this paragraph. The amount of each additional annual
31.27grant must be determined by the commissioner and may not exceed:
31.28(1) $1,400 $0, if the county's veteran population is less than 1,000;
31.29(2) $2,800 $1,000, if the county's veteran population is 1,000 or more but less than
31.303,000;
31.31(3) $4,200 $2,000, if the county's veteran population is 3,000 or more but less then
31.3210,000 than 4,999; or
31.33(4) $5,600 $5,000, if the county's veteran population is 10,000 5,000 or more. but
31.34less than 9,999;
32.1(5) $7,500, if the county's veteran population is 10,000 or more but less than 19,999;
32.2(6) $10,000, if the county's veteran population is 20,000 or more but less than
32.329,999; or
32.4(7) $15,000, if the county's veteran population is 30,000 or more.
32.5(c) The Minnesota Association of County Veterans Service Officers is eligible to
32.6receive an annual grant of $2,500. The grant shall be used for administrative costs of
32.7the association, certification of mandated county veterans service officer training and
32.8accreditation, and costs associated with reintegration services.
32.9The veteran population of each county shall be determined by the figure supplied by
32.10the United States Department of Veterans Affairs, as adopted by the commissioner.

32.11    Sec. 7. Minnesota Statutes 2012, section 197.791, subdivision 1, is amended to read:
32.12    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
32.13section.
32.14    (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise
32.15specified.
32.16    (c) "Cost of attendance" for undergraduate students has the meaning given in section
32.17136A.121, subdivision 6 , multiplied by a factor of 1.2. Cost of attendance for graduate
32.18students has the meaning given in section 136A.121, subdivision 6, multiplied by a factor
32.19of 1.2, using the tuition and fee maximum established by law for four-year programs. For
32.20purposes of calculating the cost of attendance for graduate students, full time is eight
32.21credits or more per term or the equivalent.
32.22    (d) "Child" means a natural or adopted child of a person described in subdivision 4,
32.23paragraph (a), clause (1), item (i) or (ii).
32.24    (e) "Eligible institution" means a postsecondary institution under section 136A.101,
32.25subdivision 4, or a graduate school licensed or registered with the state of Minnesota
32.26serving only graduate students.
32.27    (f) "Program" means the Minnesota GI Bill program established in this section,
32.28unless otherwise specified.
32.29    (g) "Time of hostilities" means any action by the armed forces of the United States
32.30that is recognized by the issuance of a presidential proclamation or a presidential executive
32.31order in which the armed forces expeditionary medal or other campaign service medals
32.32are awarded according to presidential executive order, and any additional period or place
32.33that the commissioner determines and designates, after consultation with the United States
32.34Department of Defense, to be a period or place where the United States is in a conflict that
33.1places persons at such a risk that service in a foreign country during that period or in that
33.2place should be considered to be included.
33.3    (h) "Veteran" has the meaning given in section 197.447. Veteran also includes
33.4a service member who has received an honorable discharge after leaving each period of
33.5federal active duty service and has:
33.6    (1) served 90 days or more of federal active duty in a foreign country during a time
33.7of hostilities in that country; or
33.8    (2) been awarded any of the following medals:
33.9    (i) Armed Forces Expeditionary Medal;
33.10    (ii) Kosovo Campaign Medal;
33.11    (iii) Afghanistan Campaign Medal;
33.12    (iv) Iraq Campaign Medal;
33.13    (v) Global War on Terrorism Expeditionary Medal; or
33.14    (vi) any other campaign medal authorized for service after September 11, 2001; or
33.15    (3) received a service-related medical discharge from any period of service in a
33.16foreign country during a time of hostilities in that country.
33.17A service member who has fulfilled the requirements for being a veteran under this
33.18paragraph but is still serving actively in the United States armed forces is also a veteran
33.19for the purposes of this section.

33.20    Sec. 8. Minnesota Statutes 2012, section 197.791, subdivision 4, is amended to read:
33.21    Subd. 4. Eligibility. (a) A person is eligible for educational assistance under this
33.22section if:
33.23    (1) the person is:
33.24    (i) a veteran who is serving or has served honorably in any branch or unit of the
33.25United States armed forces at any time on or after September 11, 2001;
33.26    (ii) a nonveteran who has served honorably for a total of five years or more
33.27cumulatively as a member of the Minnesota National Guard or any other active or reserve
33.28component of the United States armed forces, and any part of that service occurred on or
33.29after September 11, 2001;
33.30    (iii) the surviving spouse or child of a person who has served in the military at any
33.31time on or after September 11, 2001, and who has died as a direct result of that military
33.32service, only if the surviving spouse or child is eligible to receive federal education
33.33benefits under United States Code, title 38, chapter 33, as amended, or United States
33.34Code, title 38, chapter 35, as amended; or
34.1    (iv) the spouse or child of a person who has served in the military at any time on or
34.2after September 11, 2001, and who has a total and permanent service-connected disability
34.3as rated by the United States Veterans Administration, only if the spouse or child is
34.4eligible to receive federal education benefits under United States Code, title 38, chapter
34.533, as amended, or United States Code, title 38, chapter 35, as amended; and
34.6    (2) the person receiving the educational assistance is a Minnesota resident, as
34.7defined in section 136A.101, subdivision 8; and
34.8    (3) the person receiving the educational assistance:
34.9    (i) is an undergraduate or graduate student at an eligible institution;
34.10    (ii) is maintaining satisfactory academic progress as defined by the institution for
34.11students participating in federal Title IV programs;
34.12    (iii) is enrolled in an education program leading to a certificate, diploma, or degree
34.13at an eligible institution;
34.14    (iv) has applied for educational assistance under this section prior to the end of the
34.15academic term for which the assistance is being requested;
34.16    (v) is in compliance with child support payment requirements under section
34.17136A.121, subdivision 2 , clause (5); and
34.18    (vi) has completed the Free Application for Federal Student Aid (FAFSA).
34.19    (b) A person's eligibility terminates when the person becomes eligible for benefits
34.20under section 135A.52.
34.21    (c) To determine eligibility, the commissioner may require official documentation,
34.22including the person's federal form DD-214 or other official military discharge papers;
34.23correspondence from the United States Veterans Administration; birth certificate; marriage
34.24certificate; proof of enrollment at an eligible institution; signed affidavits; proof of
34.25residency; proof of identity; or any other official documentation the commissioner
34.26considers necessary to determine eligibility.
34.27    (d) The commissioner may deny eligibility or terminate benefits under this section
34.28to any person who has not provided sufficient documentation to determine eligibility for
34.29the program. An applicant may appeal the commissioner's eligibility determination or
34.30termination of benefits in writing to the commissioner at any time. The commissioner
34.31must rule on any application or appeal within 30 days of receipt of all documentation that
34.32the commissioner requires. The decision of the commissioner regarding an appeal is final.
34.33However, an applicant whose appeal of an eligibility determination has been rejected by
34.34the commissioner may submit an additional appeal of that determination in writing to the
34.35commissioner at any time that the applicant is able to provide substantively significant
34.36additional information regarding the applicant's eligibility for the program. An approval
35.1of an applicant's eligibility by the commissioner following an appeal by the applicant is
35.2not retroactively effective for more than one year or the semester of the person's original
35.3application, whichever is later.
35.4    (e) Upon receiving an application with insufficient documentation to determine
35.5eligibility, the commissioner must notify the applicant within 30 days of receipt of the
35.6application that the application is being suspended pending receipt by the commissioner of
35.7sufficient documentation from the applicant to determine eligibility.

35.8    Sec. 9. Minnesota Statutes 2012, section 197.791, subdivision 5, is amended to read:
35.9    Subd. 5. Benefit amount. (a) On approval by the commissioner of eligibility for
35.10the program, the applicant shall be awarded, on a funds-available basis, the educational
35.11assistance under the program for use at any time according to program rules at any
35.12eligible institution.
35.13    (b) The amount of educational assistance in any semester or term for an eligible
35.14person must be determined by subtracting from the eligible person's cost of attendance the
35.15amount the person received or was eligible to receive in that semester or term from:
35.16    (1) the federal Pell Grant;
35.17    (2) the state grant program under section 136A.121; and
35.18    (3) any federal military or veterans educational benefits including but not limited
35.19to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program,
35.20vocational rehabilitation benefits, and any other federal benefits associated with the
35.21person's status as a veteran, except veterans disability payments from the United States
35.22Veterans Administration and payments made under the Veterans Retraining Assistance
35.23Program (VRAP).
35.24    (c) The amount of educational assistance for any eligible person who is a full-time
35.25student must not exceed the following:
35.26    (1) $1,000 per semester or term of enrollment;
35.27    (2) $3,000 per state fiscal year; and
35.28    (3) $10,000 in a lifetime.
35.29    For a part-time student, the amount of educational assistance must not exceed
35.30$500 per semester or term of enrollment. For the purpose of this paragraph, a part-time
35.31undergraduate student is a student taking fewer than 12 credits or the equivalent for a
35.32semester or term of enrollment and a part-time graduate student is a student considered
35.33part time by the eligible institution the graduate student is attending. The minimum award
35.34for undergraduate and graduate students is $50 per term.

36.1    Sec. 10. [349A.17] SPECIAL GAME; VETERANS.
36.2(a) The Minnesota Lottery shall establish a scratch-off game whose receipts are
36.3dedicated to the "Support Our Veterans" account established under section 196.31. The
36.4game shall be in play at least once each year, on a theme and with content chosen by
36.5the lottery.
36.6(b) The transfer under paragraph (a) shall consist of gross receipts, as defined
36.7in section 349A.01, subdivision 7, less the lottery's expenses related to the veterans'
36.8scratch-off games, as described in section 349A.10, subdivision 6, and less amounts
36.9transmitted to the Environmental and Natural Resources Trust Fund pursuant to the
36.10Minnesota Constitution, article XI, section 14.

36.11    Sec. 11. DEPOSIT OF FUNDS.
36.12The Minnesota Lottery shall deposit any funds created under games authorized
36.13under Minnesota Statutes, section 349A.17, on a monthly basis into the "Support Our
36.14Veterans" account established under Minnesota Statutes, section 196.31, and shall be made
36.15available for those uses listed in Minnesota Statutes, section 196.31, subdivision 4.

36.16    Sec. 12. REPEALER.
36.17Minnesota Statutes 2012, section 197.608, subdivision 2a, is repealed.

36.18ARTICLE 7
36.19MILITARY AFFAIRS

36.20
 Section 1. MILITARY APPROPRIATIONS.
36.21The sums shown in the columns marked "Appropriations" are appropriated to the
36.22agencies and for the purposes specified in this article. The appropriations are from the
36.23general fund and are available for the fiscal years indicated for each purpose. The figures
36.24"2014" and "2015" used in this article mean that the appropriations listed under them are
36.25available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively. "The
36.26first year" is fiscal year 2014. "The second year" is fiscal year 2015. "The biennium" is
36.27fiscal years 2014 and 2015.
36.28
 APPROPRIATIONS
36.29
 Available for the Year
36.30
 Ending June 30
36.31
 2014
 2015

36.32
 Sec. 2. MILITARY AFFAIRS
37.1
 Subdivision 1.Total Appropriation
 $
 19,368,000
 $
 19,368,000
37.2The amounts that may be spent for each
37.3purpose are specified in the following
37.4subdivisions.
37.5
 Subd. 2.Maintenance of Training Facilities
 6,660,000
 6,660,000
37.6
 Subd. 3.General Support
 2,360,000
 2,360,000
37.7
 Subd. 4.Enlistment Incentives
 10,348,000
 10,348,000
37.8If appropriations for either year of the
37.9biennium are insufficient, the appropriation
37.10from the other year is available. The
37.11appropriations for enlistment incentives are
37.12available until expended.

37.13ARTICLE 8
37.14REVENUE DEPARTMENT

37.15    Section 1. Minnesota Statutes 2012, section 65B.84, subdivision 1, is amended to read:
37.16    Subdivision 1. Program described; commissioner's duties; appropriation. (a)
37.17The commissioner of commerce shall:
37.18(1) develop and sponsor the implementation of statewide plans, programs, and
37.19strategies to combat automobile theft, improve the administration of the automobile theft
37.20laws, and provide a forum for identification of critical problems for those persons dealing
37.21with automobile theft;
37.22(2) coordinate the development, adoption, and implementation of plans, programs,
37.23and strategies relating to interagency and intergovernmental cooperation with respect
37.24to automobile theft enforcement;
37.25(3) annually audit the plans and programs that have been funded in whole or in part
37.26to evaluate the effectiveness of the plans and programs and withdraw funding should the
37.27commissioner determine that a plan or program is ineffective or is no longer in need
37.28of further financial support from the fund;
37.29(4) develop a plan of operation including:
37.30(i) an assessment of the scope of the problem of automobile theft, including areas
37.31of the state where the problem is greatest;
37.32(ii) an analysis of various methods of combating the problem of automobile theft;
37.33(iii) a plan for providing financial support to combat automobile theft;
38.1(iv) a plan for eliminating car hijacking; and
38.2(v) an estimate of the funds required to implement the plan; and
38.3(5) distribute money, in consultation with the commissioner of public safety,
38.4pursuant to subdivision 3 from the automobile theft prevention special revenue account
38.5for automobile theft prevention activities, including:
38.6(i) paying the administrative costs of the program;
38.7(ii) providing financial support to the State Patrol and local law enforcement
38.8agencies for automobile theft enforcement teams;
38.9(iii) providing financial support to state or local law enforcement agencies for
38.10programs designed to reduce the incidence of automobile theft and for improved
38.11equipment and techniques for responding to automobile thefts;
38.12(iv) providing financial support to local prosecutors for programs designed to reduce
38.13the incidence of automobile theft;
38.14(v) providing financial support to judicial agencies for programs designed to reduce
38.15the incidence of automobile theft;
38.16(vi) providing financial support for neighborhood or community organizations or
38.17business organizations for programs designed to reduce the incidence of automobile
38.18theft and to educate people about the common methods of automobile theft, the models
38.19of automobiles most likely to be stolen, and the times and places automobile theft is
38.20most likely to occur; and
38.21(vii) providing financial support for automobile theft educational and training
38.22programs for state and local law enforcement officials, driver and vehicle services exam
38.23and inspections staff, and members of the judiciary.
38.24(b) The commissioner may not spend in any fiscal year more than ten percent of the
38.25money in the fund for the program's administrative and operating costs. The commissioner
38.26is annually appropriated and must distribute the amount of the proceeds credited to
38.27the automobile theft prevention special revenue account each year, less the transfer
38.28of $1,300,000 each year to the general fund described in section 168A.40, subdivision
38.294 297I.11, subdivision 2.
38.30EFFECTIVE DATE.This section is effective for premiums collected after June
38.3130, 2013.

38.32    Sec. 2. Minnesota Statutes 2012, section 270C.69, subdivision 1, is amended to read:
38.33    Subdivision 1. Notice and procedures. (a) The commissioner may, within five years
38.34after the date of assessment of the tax, or if a lien has been filed under section 270C.63,
38.35within the statutory period for enforcement of the lien, give notice to any employer
39.1deriving income which has a taxable situs in this state regardless of whether the income is
39.2exempt from taxation, that an employee of that employer is delinquent in a certain amount
39.3with respect to any taxes, including penalties, interest, and costs. The commissioner can
39.4proceed under this section only if the tax is uncontested or if the time for appeal of the tax
39.5has expired. The commissioner shall not proceed under this section until the expiration of
39.630 days after mailing to the taxpayer, at the taxpayer's last known address, a written notice
39.7of (1) the amount of taxes, interest, and penalties due from the taxpayer and demand for
39.8their payment, and (2) the commissioner's intention to require additional withholding by
39.9the taxpayer's employer pursuant to this section. The effect of the notice shall expire one
39.10year after it has been mailed to the taxpayer provided that the notice may be renewed by
39.11mailing a new notice which is in accordance with this section. The renewed notice shall
39.12have the effect of reinstating the priority of the original claim. The notice to the taxpayer
39.13shall be in substantially the same form as that provided in section 571.72. The notice
39.14shall further inform the taxpayer of the wage exemptions contained in section 550.37,
39.15subdivision 14 . If no statement of exemption is received by the commissioner within 30
39.16days from the mailing of the notice, the commissioner may proceed under this section.
39.17The notice to the taxpayer's employer may be served by mail or by delivery by an agent of
39.18the department and shall be in substantially the same form as provided in section 571.75.
39.19Upon receipt of notice, the employer shall withhold from compensation due or to become
39.20due to the employee, the total amount shown by the notice, subject to the provisions of
39.21section 571.922. The employer shall continue to withhold each pay period until the notice
39.22is released by the commissioner under section 270C.7109. Upon receipt of notice by the
39.23employer, the claim of the state of Minnesota shall have priority over any subsequent
39.24garnishments or wage assignments. The commissioner may arrange between the employer
39.25and the employee for withholding a portion of the total amount due the employee each pay
39.26period, until the total amount shown by the notice plus accrued interest has been withheld.
39.27(b) The "compensation due" any employee is defined in accordance with the
39.28provisions of section 571.921. The maximum withholding allowed under this section for
39.29any one pay period shall be decreased by any amounts payable pursuant to a garnishment
39.30action with respect to which the employer was served prior to being served with the notice
39.31of delinquency and any amounts covered by any irrevocable and previously effective
39.32assignment of wages; the employer shall give notice to the commissioner of the amounts
39.33and the facts relating to such assignments within ten days after the service of the notice of
39.34delinquency on the form provided by the commissioner as noted in this section.
39.35(c) Within ten days after the expiration of such pay period, the employer shall remit
39.36to the commissioner, on a form and in the manner prescribed by the commissioner, the
40.1amount withheld during each pay period under this section. The employer must file all
40.2wage levy disclosure forms and remit all wage levy payments by electronic means.
40.3EFFECTIVE DATE.This section is effective for wage levy disclosures or wage
40.4levy payments filed or made after December 31, 2013.

40.5    Sec. 3. Minnesota Statutes 2012, section 289A.20, subdivision 2, is amended to read:
40.6    Subd. 2. Withholding from wages, entertainer withholding, withholding
40.7from payments to out-of-state contractors, and withholding by partnerships, small
40.8business corporations, trusts. (a) A tax required to be deducted and withheld during the
40.9quarterly period must be paid on or before the last day of the month following the close of
40.10the quarterly period, unless an earlier time for payment is provided. A tax required to be
40.11deducted and withheld from compensation of an entertainer and from a payment to an
40.12out-of-state contractor must be paid on or before the date the return for such tax must be
40.13filed under section 289A.18, subdivision 2. Taxes required to be deducted and withheld
40.14by partnerships, S corporations, and trusts must be paid on a quarterly basis as estimated
40.15taxes under section 289A.25 for partnerships and trusts and under section 289A.26 for S
40.16corporations.
40.17(b) An employer who, during the previous quarter, withheld more than $1,500 of
40.18tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax
40.19withheld under those sections with the commissioner within the time allowed to deposit
40.20the employer's federal withheld employment taxes under Code of Federal Regulations,
40.21title 26, section 31.6302-1, as amended through December 31, 2001, without regard to the
40.22safe harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3).
40.23Taxpayers must submit a copy of their federal notice of deposit status to the commissioner
40.24upon request by the commissioner.
40.25(c) The commissioner may prescribe by rule other return periods or deposit
40.26requirements. In prescribing the reporting period, the commissioner may classify payors
40.27according to the amount of their tax liability and may adopt an appropriate reporting
40.28period for the class that the commissioner judges to be consistent with efficient tax
40.29collection. In no event will the duration of the reporting period be more than one year.
40.30(d) If less than the correct amount of tax is paid to the commissioner, proper
40.31adjustments with respect to both the tax and the amount to be deducted must be made,
40.32without interest, in the manner and at the times the commissioner prescribes. If the
40.33underpayment cannot be adjusted, the amount of the underpayment will be assessed and
40.34collected in the manner and at the times the commissioner prescribes.
40.35(e) If the aggregate amount of the tax withheld is:
41.1(1) $20,000 or more in the fiscal year ending June 30, 2005; or
41.2(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years
41.3thereafter,
41.4the employer must remit each required deposit for wages paid in the all subsequent
41.5calendar year years by electronic means.
41.6(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph
41.7(a), clause (2), who remits withholding deposits must remit all deposits by electronic
41.8means as provided in paragraph (e), regardless of the aggregate amount of tax withheld
41.9during a fiscal year for all of the employers.
41.10EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
41.112013, and all fiscal years thereafter.

41.12    Sec. 4. Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:
41.13    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
41.14payable to the commissioner monthly on or before the 20th day of the month following
41.15the month in which the taxable event occurred, or following another reporting period
41.16as the commissioner prescribes or as allowed under section 289A.18, subdivision 4,
41.17paragraph (f) or (g), except that:
41.18(1) use taxes due on an annual use tax return as provided under section 289A.11,
41.19subdivision 1 , are payable by April 15 following the close of the calendar year; and
41.20(2) except as provided in paragraph (f), for a vendor having a liability of $120,000
41.21or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
41.22imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
41.23commissioner monthly in the following manner:
41.24(i) On or before the 14th day of the month following the month in which the taxable
41.25event occurred, the vendor must remit to the commissioner 90 percent of the estimated
41.26liability for the month in which the taxable event occurred.
41.27(ii) On or before the 20th day of the month in which the taxable event occurs, the
41.28vendor must remit to the commissioner a prepayment for the month in which the taxable
41.29event occurs equal to 67 percent of the liability for the previous month.
41.30(iii) On or before the 20th day of the month following the month in which the taxable
41.31event occurred, the vendor must pay any additional amount of tax not previously remitted
41.32under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
41.33the vendor's liability for the month in which the taxable event occurred, the vendor may
41.34take a credit against the next month's liability in a manner prescribed by the commissioner.
42.1(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
42.2continue to make payments in the same manner, as long as the vendor continues having a
42.3liability of $120,000 or more during the most recent fiscal year ending June 30.
42.4(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
42.5payment in the first month that the vendor is required to make a payment under either item
42.6(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
42.7subsequent monthly payments in the manner provided in item (ii).
42.8(vi) For vendors making an accelerated payment under item (ii), for the first month
42.9that the vendor is required to make the accelerated payment, on the 20th of that month, the
42.10vendor will pay 100 percent of the liability for the previous month and a prepayment for
42.11the first month equal to 67 percent of the liability for the previous month.
42.12    (b) Notwithstanding paragraph (a), a vendor having a liability of $120,000 or more
42.13during a fiscal year ending June 30 must remit the June liability for the next year in the
42.14following manner:
42.15    (1) Two business days before June 30 of the year, the vendor must remit 90 percent
42.16of the estimated June liability to the commissioner.
42.17    (2) On or before August 20 of the year, the vendor must pay any additional amount
42.18of tax not remitted in June.
42.19    (c) A vendor having a liability of:
42.20    (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30,
42.212009 2013, and fiscal years thereafter, must remit by electronic means all liabilities on
42.22returns due for periods beginning in the all subsequent calendar year years on or before
42.23the 20th day of the month following the month in which the taxable event occurred, or
42.24on or before the 20th day of the month following the month in which the sale is reported
42.25under section 289A.18, subdivision 4; or
42.26(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
42.27thereafter, must remit by electronic means all liabilities in the manner provided in
42.28paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar
42.29year, except for 90 percent of the estimated June liability, which is due two business days
42.30before June 30. The remaining amount of the June liability is due on August 20.
42.31(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
42.32religious beliefs from paying electronically shall be allowed to remit the payment by mail.
42.33The filer must notify the commissioner of revenue of the intent to pay by mail before
42.34doing so on a form prescribed by the commissioner. No extra fee may be charged to a
42.35person making payment by mail under this paragraph. The payment must be postmarked
43.1at least two business days before the due date for making the payment in order to be
43.2considered paid on a timely basis.
43.3(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
43.4under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
43.5chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
43.6paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
43.7be accelerated as provided in this subdivision.
43.8(f) At the start of the first calendar quarter at least 90 days after the cash flow account
43.9established in section 16A.152, subdivision 1, and the budget reserve account established in
43.10section 16A.152, subdivision 1a, reach the amounts listed in section 16A.152, subdivision
43.112 , paragraph (a), the remittance of the accelerated payments required under paragraph (a),
43.12clause (2), must be suspended. The commissioner of management and budget shall notify
43.13the commissioner of revenue when the accounts have reached the required amounts.
43.14Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of
43.15$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the
43.16taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day
43.17of the month following the month in which the taxable event occurred. Payments of tax
43.18liabilities for taxable events occurring in June under paragraph (b) are not changed.
43.19EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
43.202013, and all fiscal years thereafter.

43.21    Sec. 5. Minnesota Statutes 2012, section 289A.26, subdivision 2a, is amended to read:
43.22    Subd. 2a. Electronic payments. If the aggregate amount of estimated tax payments
43.23made is:
43.24(1) $20,000 or more in the fiscal year ending June 30, 2005; or
43.25(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years
43.26thereafter,
43.27all estimated tax payments in the all subsequent calendar year years must be paid by
43.28electronic means.
43.29EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
43.302013, and all fiscal years thereafter.

43.31    Sec. 6. Minnesota Statutes 2012, section 295.55, subdivision 4, is amended to read:
43.32    Subd. 4. Electronic payments. A taxpayer with an aggregate tax liability of:
43.33(1) $20,000 or more in the fiscal year ending June 30, 2005; or
44.1(2) $10,000 or more in the a fiscal year ending June 30, 2006, and fiscal years
44.2thereafter,
44.3must remit all liabilities by electronic means in the all subsequent calendar year years.
44.4EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
44.52013, and all fiscal years thereafter.

44.6    Sec. 7. Minnesota Statutes 2012, section 297F.09, subdivision 7, is amended to read:
44.7    Subd. 7. Electronic payment. A cigarette or tobacco products distributor having a
44.8liability of $10,000 or more during a fiscal year ending June 30 must remit all liabilities in
44.9the all subsequent calendar year years by electronic means.
44.10EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
44.112013, and all fiscal years thereafter.

44.12    Sec. 8. Minnesota Statutes 2012, section 297G.09, subdivision 6, is amended to read:
44.13    Subd. 6. Electronic payments. A licensed brewer, importer, or wholesaler having
44.14an excise tax liability of $10,000 or more during a fiscal year ending June 30 must remit
44.15all excise tax liabilities in the all subsequent calendar year years by electronic means.
44.16EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
44.172013, and all fiscal years thereafter.

44.18    Sec. 9. [297I.11] AUTOMOBILE THEFT PREVENTION SURCHARGE.
44.19    Subdivision 1. Surcharge. Each insurer engaged in the writing of policies of
44.20automobile insurance shall collect a surcharge, at the rate of 50 cents per vehicle
44.21for every six months of coverage, on each policy of automobile insurance providing
44.22comprehensive insurance coverage issued or renewed in this state. The surcharge may not
44.23be considered premium for any purpose, including the computation of premium tax or
44.24agents' commissions. The amount of the surcharge must be separately stated on either a
44.25billing or policy declaration sent to an insured. Insurers shall remit the revenue derived
44.26from this surcharge to the commissioner of revenue for purposes of the automobile theft
44.27prevention program described in section 65B.84. For purposes of this subdivision, "policy
44.28of automobile insurance" has the meaning given it in section 65B.14, covering only the
44.29following types of vehicles as defined in section 168.002:
44.30(1) a passenger automobile;
44.31(2) a pickup truck;
45.1(3) a van but not commuter vans as defined in section 168.126; or
45.2(4) a motorcycle,
45.3except that no vehicle with a gross vehicle weight in excess of 10,000 pounds is included
45.4within this definition.
45.5    Subd. 2. Automobile theft prevention account. A special revenue account in
45.6the state treasury shall be credited with the proceeds of the surcharge imposed under
45.7subdivision 1. Of the revenue in the account, $1,300,000 each year must be transferred to
45.8the general fund. Revenues in excess of $1,300,000 each year may be used only for the
45.9automobile theft prevention program described in section 65B.84.
45.10    Subd. 3. Collection and administration. The commissioner shall collect and
45.11administer the surcharge imposed by this section in the same manner as the taxes imposed
45.12by this chapter.
45.13EFFECTIVE DATE.This section is effective for premiums collected after June
45.1430, 2013.

45.15    Sec. 10. Minnesota Statutes 2012, section 297I.30, is amended by adding a subdivision
45.16to read:
45.17    Subd. 10. Automobile theft prevention surcharge. On or before May 1, August
45.181, November 1, and February 1 of each year, every insurer required to pay the surcharge
45.19under section 297I.11 shall file a return with the commissioner for the preceding
45.20three-month period ending March 31, June 30, September 30, and December 31, in the
45.21form prescribed by the commissioner.
45.22EFFECTIVE DATE.This section is effective for premiums collected after June
45.2330, 2013.

45.24    Sec. 11. Minnesota Statutes 2012, section 297I.35, subdivision 2, is amended to read:
45.25    Subd. 2. Electronic payments. If the aggregate amount of tax and surcharges due
45.26under this chapter during a fiscal year ending June 30 is equal to or exceeds $10,000, or
45.27if the taxpayer is required to make payment of any other tax to the commissioner by
45.28electronic means, then all tax and surcharge payments in the all subsequent calendar year
45.29 years must be paid by electronic means.
45.30EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
45.312013, and all fiscal years thereafter.

46.1    Sec. 12. Minnesota Statutes 2012, section 473.843, subdivision 3, is amended to read:
46.2    Subd. 3. Payment of fee. On or before the 20th day of each month each operator
46.3shall pay the fee due under this section for the previous month, using a form provided
46.4by the commissioner of revenue.
46.5An operator having a fee of $10,000 or more during a fiscal year ending June 30
46.6must pay all fees in the all subsequent calendar year years by electronic means.
46.7EFFECTIVE DATE.This section is effective for the fiscal year ending June 30,
46.82013, and all fiscal years thereafter.

46.9    Sec. 13. REPEALER.
46.10(a) Minnesota Statutes 2012, section 168A.40, subdivisions 3 and 4, are repealed
46.11effective for premiums collected after June 30, 2013.
46.12(b) Minnesota Statutes 2012, section 270C.145, is repealed the day following final
46.13enactment.

46.14ARTICLE 9
46.15CONFORMING AMENDMENTS

46.16    Section 1. Minnesota Statutes 2012, section 16A.82, is amended to read:
46.1716A.82 TECHNOLOGY LEASE-PURCHASE APPROPRIATION.
46.18The following amounts are appropriated from the general fund to the commissioner
46.19to make payments under a lease-purchase agreement as defined in section 16A.81 for
46.20replacement of the state's accounting and procurement systems, provided that the state
46.21is not obligated to continue such appropriation of funds or to make lease payments
46.22in any future fiscal year.
46.23
 Fiscal year 2010
 $2,828,038
46.24
 Fiscal year 2011
 $3,063,950
46.25
 Fiscal year 2012
 $8,967,850
46.26
 Fiscal year 2013
 $8,968,950
46.27
 Fiscal year 2014
 $8,970,850
46.28
 Fiscal year 2015
 $8,971,150
46.29
 Fiscal year 2016
 $8,966,450
46.30
 Fiscal year 2017
 $8,967,500
46.31
 Fiscal year 2018
 $8,970,750
46.32
 Fiscal year 2019
 $8,968,500
46.33Of these appropriations, up to $2,000 per year may be used to pay the annual trustee
46.34fees for the lease-purchase agreements authorized in this section and section 270C.145.
47.1Any unexpended portions of this appropriation cancel to the general fund at the close of
47.2each biennium. This section expires June 30, 2019.

47.3    Sec. 2. Minnesota Statutes 2012, section 65B.84, subdivision 1, is amended to read:
47.4    Subdivision 1. Program described; commissioner's duties; appropriation. (a)
47.5The commissioner of commerce shall:
47.6(1) develop and sponsor the implementation of statewide plans, programs, and
47.7strategies to combat automobile theft, improve the administration of the automobile theft
47.8laws, and provide a forum for identification of critical problems for those persons dealing
47.9with automobile theft;
47.10(2) coordinate the development, adoption, and implementation of plans, programs,
47.11and strategies relating to interagency and intergovernmental cooperation with respect
47.12to automobile theft enforcement;
47.13(3) annually audit the plans and programs that have been funded in whole or in part
47.14to evaluate the effectiveness of the plans and programs and withdraw funding should the
47.15commissioner determine that a plan or program is ineffective or is no longer in need
47.16of further financial support from the fund;
47.17(4) develop a plan of operation including:
47.18(i) an assessment of the scope of the problem of automobile theft, including areas
47.19of the state where the problem is greatest;
47.20(ii) an analysis of various methods of combating the problem of automobile theft;
47.21(iii) a plan for providing financial support to combat automobile theft;
47.22(iv) a plan for eliminating car hijacking; and
47.23(v) an estimate of the funds required to implement the plan; and
47.24(5) distribute money, in consultation with the commissioner of public safety,
47.25pursuant to subdivision 3 from the automobile theft prevention special revenue account
47.26for automobile theft prevention activities, including:
47.27(i) paying the administrative costs of the program;
47.28(ii) providing financial support to the State Patrol and local law enforcement
47.29agencies for automobile theft enforcement teams;
47.30(iii) providing financial support to state or local law enforcement agencies for
47.31programs designed to reduce the incidence of automobile theft and for improved
47.32equipment and techniques for responding to automobile thefts;
47.33(iv) providing financial support to local prosecutors for programs designed to reduce
47.34the incidence of automobile theft;
48.1(v) providing financial support to judicial agencies for programs designed to reduce
48.2the incidence of automobile theft;
48.3(vi) providing financial support for neighborhood or community organizations or
48.4business organizations for programs designed to reduce the incidence of automobile
48.5theft and to educate people about the common methods of automobile theft, the models
48.6of automobiles most likely to be stolen, and the times and places automobile theft is
48.7most likely to occur; and
48.8(vii) providing financial support for automobile theft educational and training
48.9programs for state and local law enforcement officials, driver and vehicle services exam
48.10and inspections staff, and members of the judiciary.
48.11(b) The commissioner may not spend in any fiscal year more than ten percent of the
48.12money in the fund for the program's administrative and operating costs. The commissioner
48.13is annually appropriated and must distribute the amount of the proceeds credited to
48.14the automobile theft prevention special revenue account each year, less the transfer of
48.15$1,300,000 each year to the general fund described in section 168A.40, subdivision 4.