House Journal 22nd Day Tuesday, April 22, 2025

A quorum was present.

Pursuant to Rule 10.05, relating to Remote House Operations, the Speaker permitted the following members to vote via remote means: Knudsen and Swedzinski.

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Pursuant to Rule 10.05, relating to Remote House Operations, the DFL Caucus Leader permitted the following member to vote via remote means: Hill.

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

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Kresha and Youakim from the Committee on Education Finance to which was referred:

H. F. No. 2433, A bill for an act relating to education finance; making changes to kindergarten through grade 12 education; providing funding for prekindergarten through grade 12 education; modifying provisions for general education, education excellence, American Indian education, teachers, special education, facilities, school nutrition, libraries, early childhood, community education, and state agencies; making forecast adjustments; requiring reports; appropriating money; amending Minnesota Statutes 2024, sections 122A.414, by adding a subdivision; 122A.4144; 122A.415, subdivisions 1, 4; 122A.63, subdivision 9; 122A.635; 122A.70, subdivisions 2, 3, 5, 5a, 6, by adding a subdivision; 123B.84; 123B.86, subdivisions 1, 3; 123B.87; 123B.92, subdivision 1; 124D.111, subdivision 3; 124D.119, subdivision 1; 124D.83, subdivision 2; 124D.861, subdivision 4; 124D.862, subdivisions 1, 8; 124D.901, subdivisions 3, 4; 124D.98, subdivision 5, by adding subdivisions; 125A.76, subdivision 2a; 126C.05, subdivision 3; 126C.10, subdivisions 3, 3c; 126C.40, subdivision 1, by adding a subdivision; 127A.45, subdivision 14; Laws 2023, chapter 18, section 4, subdivisions 2, as amended, 3, as amended; Laws 2023, chapter 54, section 20, subdivisions 7, as amended, 9, as amended, 17, as amended; Laws 2023, chapter 55, article 1, sections 36, subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as amended, 7, as amended, 9, as amended; 37; article 2, section 64, subdivisions 2, as amended, 6, as amended, 23, as amended; article 5, section 64, subdivisions 3, as amended, 14, as amended, 15, as amended; article 7, section 18, subdivisions 2, as amended, 4, as amended, 7, as amended; article 8, section 19, subdivision 6, as amended; article 9, section 18, subdivisions 4, as amended, 8, as amended; article 11, section 11, subdivisions 2, as amended, 3, as amended, 5, as amended, 10, as amended; article 12, sections 17, subdivision 2, as amended; 19; Laws 2023, chapter 63, article 9, section 8; Laws 2024, chapter 115, article 22, section 3; repealing Minnesota Statutes 2024, sections 122A.414, subdivisions 1, 2, 3, 4, 4a, 5, 5a, 6, 7, 8, 9, 10, 11, 12, 13, 14a, 15, 16; 122A.4144; 122A.415, subdivisions 1, 3, 4, 5, 6, 7; 122A.4155; 122A.416; 122A.417; 123B.40; 123B.41, subdivisions 2, 3, 4, 5, 5a, 6, 7, 8, 12, 14, 15; 123B.42; 123B.43; 123B.44; 123B.45; 123B.46; 123B.47; 123B.48; 123B.86, subdivision 2; 123B.92, subdivision 9; 124D.98, subdivisions 1, 2, 3, 4.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"A. GENERAL EDUCATION

Section 1. Laws 2023, chapter 55, article 1, section 36, subdivision 2, as amended by Laws 2024, chapter 81, section 1, and Laws 2024, chapter 115, article 1, section 15, is amended to read:

Subd. 2. General education aid. (a) For general education aid under Minnesota Statutes, section 126C.13, subdivision 4:

		$8,103,909,000	. . . . .	2024
		$~~8,333,843,000~~ 8,280,528,000	. . . . .	2025

(b) The 2024 appropriation includes $707,254,000 for 2023 and $7,396,655,000 for 2024.

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Sec. 2. Laws 2023, chapter 55, article 1, section 36, subdivision 3, as amended by Laws 2024, chapter 81, section 2, is amended to read:

Subd. 3. Enrollment options transportation. For transportation of pupils attending postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

		$23,000	. . . . .	2024
		$~~25,000~~ 23,000	. . . . .	2025

Sec. 3. Laws 2023, chapter 55, article 1, section 36, subdivision 4, as amended by Laws 2024, chapter 81, section 3, is amended to read:

Subd. 4. Abatement aid. (a) For abatement aid under Minnesota Statutes, section 127A.49:

		$2,318,000	. . . . .	2024
		$~~2,516,000~~ 1,503,000	. . . . .	2025

(b) The 2024 appropriation includes $126,000 for 2023 and $2,192,000 for 2024.

Sec. 4. Laws 2023, chapter 55, article 1, section 36, subdivision 5, as amended by Laws 2024, chapter 81, section 4, is amended to read:

Subd. 5. Consolidation transition aid. (a) For districts consolidating under Minnesota Statutes, section 123A.485:

		$7,000	. . . . .	2024
		$~~180,000~~ 0	. . . . .	2025

(b) The 2024 appropriation includes $7,000 for 2023 and $0 for 2024.

Sec. 5. Laws 2023, chapter 55, article 1, section 36, subdivision 6, as amended by Laws 2024, chapter 81, section 5, is amended to read:

Subd. 6. Nonpublic pupil education aid. (a) For nonpublic pupil education aid under Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

		$21,176,000	. . . . .	2024
		$~~24,478,000~~ 23,337,000	. . . . .	2025

(b) The 2024 appropriation includes $1,925,000 for 2023 and $19,251,000 for 2024.

Sec. 6. Laws 2023, chapter 55, article 1, section 36, subdivision 7, as amended by Laws 2024, chapter 81, section 6, is amended to read:

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Subd. 7. Nonpublic pupil transportation. (a) For nonpublic pupil transportation aid under Minnesota Statutes, section 123B.92, subdivision 9:

		$22,979,000	. . . . .	2024
		$~~27,177,000~~ 25,802,000	. . . . .	2025

(b) The 2024 appropriation includes $2,115,000 for 2023 and $20,864,000 for 2024.

Sec. 7. Laws 2023, chapter 55, article 1, section 36, subdivision 9, as amended by Laws 2024, chapter 81, section 7, is amended to read:

Subd. 9. Career and technical aid. (a) For career and technical aid under Minnesota Statutes, section 124D.4531, subdivision 1b:

		$1,664,000	. . . . .	2024
		$~~874,000~~ 937,000	. . . . .	2025

(b) The 2024 appropriation includes $183,000 for 2023 and $1,481,000 for 2024.

B. EDUCATION EXCELLENCE

Sec. 8. Laws 2023, chapter 55, article 2, section 64, subdivision 2, as amended by Laws 2024, chapter 81, section 8, and Laws 2024, chapter 115, article 2, section 13, is amended to read:

Subd. 2. Achievement and integration aid. (a) For achievement and integration aid under Minnesota Statutes, section 124D.862:

		$82,818,000	. . . . .	2024
		$~~85,043,000~~ 84,300,000	. . . . .	2025

(b) The 2024 appropriation includes $8,172,000 for 2023 and $74,646,000 for 2024.

Sec. 9. Laws 2023, chapter 55, article 2, section 64, subdivision 6, as amended by Laws 2024, chapter 81, section 9, and Laws 2024, chapter 115, article 6, section 3, is amended to read:

Subd. 6. Charter school building lease aid. (a) For building lease aid under Minnesota Statutes, section 124E.22:

		$91,457,000	. . . . .	2024
		$~~94,906,000~~ 93,684,000	. . . . .	2025

(b) The 2024 appropriation includes $9,047,000 for 2023 and $82,410,000 for 2024.

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Sec. 10. Laws 2023, chapter 55, article 2, section 64, subdivision 21, as amended by Laws 2024, chapter 81, section 10, is amended to read:

Subd. 21. Interdistrict desegregation or integration transportation grants. For interdistrict desegregation or integration transportation grants under Minnesota Statutes, section 124D.87:

		$14,828,000	. . . . .	2024
		$~~16,413,000~~ 14,799,000	. . . . .	2025

Sec. 11. Laws 2023, chapter 55, article 2, section 64, subdivision 23, as amended by Laws 2024, chapter 81, section 11, is amended to read:

Subd. 23. Literacy incentive aid. (a) For literacy incentive aid under Minnesota Statutes, section 124D.98:

		$41,071,000	. . . . .	2024
		$~~41,588,000~~ 40,570,000	. . . . .	2025

(b) The 2024 appropriation includes $4,606,000 for 2023 and $36,465,000 for 2024.

Sec. 12. Laws 2023, chapter 55, article 2, section 64, subdivision 34, is amended to read:

Subd. 34. Paraprofessional training. (a) For compensation associated with paid orientation and professional development for paraprofessionals under Minnesota Statutes, section 121A.642:

		$0	. . . . .	2024
		$~~7,230,000~~ 1,997,000	. . . . .	2025

(b) The 2025 appropriation includes $0 for 2024 and ~~$7,230,000~~ $1,997,000 for 2025.

Sec. 13. Laws 2023, chapter 55, article 4, section 21, subdivision 2, as amended by Laws 2024, chapter 81, section 12, is amended to read:

Subd. 2. American Indian education aid. (a) For American Indian education aid under Minnesota Statutes, section 124D.81, subdivision 2a:

		$18,131,000	. . . . .	2024
		$~~19,672,000~~ 19,649,000	. . . . .	2025

(b) The 2024 appropriation includes $1,159,000 for 2023 and $16,972,000 for 2024.

Sec. 14. Laws 2023, chapter 55, article 4, section 21, subdivision 5, as amended by Laws 2024, chapter 81, section 13, is amended to read:

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Subd. 5. Tribal contract school aid. (a) For Tribal contract school aid under Minnesota Statutes, section 124D.83:

		$1,673,000	. . . . .	2024
		$~~2,131,000~~ 2,153,000	. . . . .	2025

(b) The 2024 appropriation includes $255,000 for 2023 and $1,418,000 for 2024.

C. TEACHERS

Sec. 15. Laws 2023, chapter 55, article 5, section 64, subdivision 3, as amended by Laws 2024, chapter 81, section 14, and Laws 2024, chapter 115, article 5, section 11, is amended to read:

Subd. 3. Alternative teacher compensation aid. (a) For alternative teacher compensation aid under Minnesota Statutes, section 122A.415, subdivision 4:

		$88,706,000	.....	2024
		$~~89,012,000~~ 88,206,000	.....	2025

(b) The 2024 appropriation includes $8,824,000 for fiscal year 2023 and $79,882,000 for fiscal year 2024.

(c) The 2025 appropriation includes $8,875,000 for fiscal year 2024 and ~~$80,137,000~~ $79,331,000 for fiscal year 2025.

Sec. 16. Laws 2023, chapter 55, article 5, section 64, subdivision 14, as amended by Laws 2024, chapter 81, section 15, is amended to read:

Subd. 14. Student support personnel aid. (a) For aid to support schools in addressing students' social, emotional, and physical health under Minnesota Statutes, section 124D.901:

		$30,255,000	. . . . .	2024
		$~~36,498,000~~ 36,259,000	. . . . .	2025

(b) The 2024 appropriation includes $0 for fiscal year 2023 and $30,255,000 for fiscal year 2024.

(c) The 2025 appropriation includes $3,361,000 for fiscal year 2024 and ~~$33,137,000~~ $32,898,000 for fiscal year 2025.

D. SPECIAL EDUCATION

Sec. 17. Laws 2023, chapter 55, article 7, section 18, subdivision 2, as amended by Laws 2024, chapter 81, section 16, is amended to read:

Subd. 2. Aid for children with disabilities. (a) For aid under Minnesota Statutes, section 125A.75, subdivision 3, for children with disabilities placed in residential facilities within the district boundaries for whom no district of residence can be determined:

		$1,597,000	. . . . .	2024
		$~~1,844,000~~ 1,952,000	. . . . .	2025

(b) If the appropriation for either year is insufficient, the appropriation for the other year is available.

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Sec. 18. Laws 2023, chapter 55, article 7, section 18, subdivision 3, as amended by Laws 2024, chapter 81, section 17, is amended to read:

Subd. 3. Court-placed special education revenue. For reimbursing serving school districts for unreimbursed eligible expenditures attributable to children placed in the serving school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:

		$39,000	. . . . .	2024
		$~~40,000~~ 0	. . . . .	2025

Sec. 19. Laws 2023, chapter 55, article 7, section 18, subdivision 4, as amended by Laws 2024, chapter 81, section 18, and Laws 2024, chapter 115, article 7, section 4, is amended to read:

Subd. 4. Special education; regular. (a) For special education aid under Minnesota Statutes, section 125A.75:

		$2,288,826,000	. . . . .	2024
		$~~2,486,181,000~~ 2,582,007,000	. . . . .	2025

(b) The 2024 appropriation includes $229,860,000 for 2023 and $2,058,966,000 for 2024.

Sec. 20. Laws 2023, chapter 55, article 7, section 18, subdivision 6, as amended by Laws 2024, chapter 81, section 19, is amended to read:

Subd. 6. Special education separate sites and programs. (a) For aid for special education separate sites and programs under Minnesota Statutes, section 125A.81, subdivision 4:

		$3,880,000	. . . . .	2024
		$~~4,505,000~~ 4,282,000	. . . . .	2025

(b) The 2024 appropriation includes $0 for 2023 and $3,880,000 for 2024.

Sec. 21. Laws 2023, chapter 55, article 7, section 18, subdivision 7, as amended by Laws 2024, chapter 81, section 20, is amended to read:

Subd. 7. Travel for home-based services. (a) For aid for teacher travel for home-based services under Minnesota Statutes, section 125A.75, subdivision 1:

		$425,000	. . . . .	2024
		$~~475,000~~ 440,000	. . . . .	2025

(b) The 2024 appropriation includes $32,000 for 2023 and $393,000 for 2024.

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E. FACILITIES

Sec. 22. Laws 2023, chapter 55, article 8, section 19, subdivision 6, as amended by Laws 2024, chapter 81, section 22, and Laws 2024, chapter 115, article 8, section 5, is amended to read:

Subd. 6. Long-term facilities maintenance equalized aid. (a) For long-term facilities maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:

		$107,905,000	. . . . .	2024
		$~~107,865,000~~ 107,262,000	. . . . .	2025

(b) The 2024 appropriation includes $10,821,000 for 2023 and $97,084,000 for 2024.

F. NUTRITION

Sec. 23. Laws 2023, chapter 18, section 4, subdivision 2, as amended by Laws 2023, chapter 55, article 9, section 16, Laws 2024, chapter 81, section 23, and Laws 2024, chapter 115, article 9, section 8, is amended to read:

Subd. 2. School lunch. For school lunch aid under Minnesota Statutes, section 124D.111, including the amounts for the free school meals program:

		$218,801,000	. . . . .	2024
		$~~239,686,000~~ 251,667,000	. . . . .	2025

Sec. 24. Laws 2023, chapter 18, section 4, subdivision 3, as amended by Laws 2023, chapter 55, article 9, section 17, Laws 2024, chapter 81, section 24, and Laws 2024, chapter 115, article 9, section 9, is amended to read:

Subd. 3. School breakfast. For school breakfast aid under Minnesota Statutes, section 124D.1158:

		$44,178,000	. . . . .	2024
		$~~48,747,000~~ 54,835,000	. . . . .	2025

Sec. 25. Laws 2023, chapter 55, article 9, section 18, subdivision 4, as amended by Laws 2024, chapter 81, section 25, is amended to read:

Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, section 124D.118:

		$428,000	. . . . .	2024
		$~~428,000~~ 387,000	. . . . .	2025

Sec. 26. Laws 2023, chapter 55, article 9, section 18, subdivision 8, as amended by Laws 2024, chapter 81, section 26, is amended to read:

Subd. 8. School library aid. (a) For school library aid under Minnesota Statutes, section ~~134.356~~ 124D.992:

		$21,586,000	. . . . .	2024
		$~~23,903,000~~ 23,791,000	. . . . .	2025

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(b) The 2024 appropriation includes $0 for 2023 and $21,586,000 for 2024.

G. EARLY EDUCATION

Sec. 27. Laws 2023, chapter 54, section 20, subdivision 7, as amended by Laws 2024, chapter 81, section 27, is amended to read:

Subd. 7. Early childhood family education aid. (a) For early childhood family education aid under Minnesota Statutes, section ~~124D.135~~ 142D.11:

		$37,209,000	. . . . .	2024
		$~~38,985,000~~ 37,874,000	. . . . .	2025

(b) The 2024 appropriation includes $3,518,000 for 2023 and $33,691,000 for 2024.

Sec. 28. Laws 2023, chapter 54, section 20, subdivision 9, as amended by Laws 2024, chapter 81, section 28, is amended to read:

Subd. 9. Developmental screening aid. (a) For developmental screening aid under Minnesota Statutes, sections ~~121A.17~~ 142D.091 and ~~121A.19~~ 142D.093:

		$4,148,000	. . . . .	2024
		$~~4,151,000~~ 4,156,000	. . . . .	2025

(b) The 2024 appropriation includes $349,000 for 2023 and $3,799,000 for 2024.

Sec. 29. Laws 2023, chapter 54, section 20, subdivision 17, as amended by Laws 2024, chapter 81, section 29, is amended to read:

Subd. 17. Home visiting aid. (a) For home visiting aid under Minnesota Statutes, section ~~124D.135~~ 142D.11:

		$382,000	. . . . .	2024
		$~~300,000~~ 290,000	. . . . .	2025

(b) The 2024 appropriation includes $41,000 for 2023 and $341,000 for 2024.

H. COMMUNITY EDUCATION AND LIFELONG LEARNING

Sec. 30. Laws 2023, chapter 55, article 11, section 11, subdivision 2, as amended by Laws 2024, chapter 81, section 30, is amended to read:

Subd. 2. Adult basic education aid. (a) For adult basic education aid under Minnesota Statutes, section 124D.531:

		$52,566,000	. . . . .	2024
		$~~53,684,000~~ 53,880,000	. . . . .	2025

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(b) The 2024 appropriation includes $5,179,000 for 2023 and $47,387,000 for 2024.

Sec. 31. Laws 2023, chapter 55, article 11, section 11, subdivision 3, as amended by Laws 2024, chapter 81, section 31, is amended to read:

Subd. 3. Adults with disabilities program aid. (a) For adults with disabilities programs under Minnesota Statutes, section 124D.56:

		$710,000	. . . . .	2024
		$~~1,520,000~~ 1,433,000	. . . . .	2025

(b) The 2024 appropriation includes $71,000 for 2023 and $639,000 for 2024.

Sec. 32. Laws 2023, chapter 55, article 11, section 11, subdivision 10, as amended by Laws 2024, chapter 81, section 33, is amended to read:

Subd. 10. School-age care aid. (a) For school-age care aid under Minnesota Statutes, section 124D.22:

		$0	. . . . .	2024
		$~~1,000~~ 0	. . . . .	2025

(b) The 2024 appropriation includes $0 for 2023 and $0 for 2024.

Sec. 33. EFFECTIVE DATE.

Sections 1 to 32 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to education finance; making forecast adjustments for kindergarten through grade 12 education in general education, education excellence, teachers, special education, facilities, nutrition, early education, and community education and lifelong learning; amending Laws 2023, chapter 18, section 4, subdivisions 2, as amended, 3, as amended; Laws 2023, chapter 54, section 20, subdivisions 7, as amended, 9, as amended, 17, as amended; Laws 2023, chapter 55, article 1, section 36, subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as amended, 6, as amended, 7, as amended, 9, as amended; article 2, section 64, subdivisions 2, as amended, 6, as amended, 21, as amended, 23, as amended, 34; article 4, section 21, subdivisions 2, as amended, 5, as amended; article 5, section 64, subdivisions 3, as amended, 14, as amended; article 7, section 18, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, as amended, 7, as amended; article 8, section 19, subdivision 6, as amended; article 9, section 18, subdivisions 4, as amended, 8, as amended; article 11, section 11, subdivisions 2, as amended, 3, as amended, 10, as amended."

With the recommendation that when so amended the bill be re-referred to the Committee on Ways and Means.

The report was adopted.

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Davids and Gomez from the Committee on Taxes to which was referred:

H. F. No. 2438, A bill for an act relating to transportation; establishing a budget for transportation; appropriating money for transportation purposes, including Department of Transportation, Department of Public Safety, and Metropolitan Council activities; modifying prior appropriations; transferring money; modifying various policy and finance provisions; modifying and providing for allocation of certain fees; directing certain rulemaking; requiring studies; modifying and requiring certain legislative reporting; amending Minnesota Statutes 2024, sections 4.076, subdivisions 4, 5; 161.115, subdivision 177; 161.178, subdivisions 1, 2a, 8, by adding a subdivision; 162.16; 168.002, subdivision 6; 168.013, subdivision 1m; 168.091; 168.1287, subdivisions 1, 5; 168.27, subdivisions 8, 11, 16, 22; 168.33, by adding a subdivision; 168A.11, subdivision 1; 168E.01, by adding subdivisions; 168E.05, subdivision 1; 169.011, subdivision 36; 169.06, subdivision 5; 169.09, subdivision 8; 169.14, subdivision 1a; 169.686, subdivision 1; 169.865, subdivisions 1a, 3; 169A.55, subdivision 5; 171.01, by adding a subdivision; 171.05, subdivision 1; 171.06, by adding a subdivision; 171.0605, subdivision 2, by adding a subdivision; 171.061, by adding a subdivision; 171.13, subdivisions 7, 8; 171.17, subdivision 1; 171.2405, subdivision 1; 171.301, subdivision 1; 171.306, subdivisions 1, 4; 174.02, by adding a subdivision; 174.03, subdivision 12, by adding a subdivision; 174.07, subdivision 3; 174.38, subdivision 4; 174.49, by adding a subdivision; 174.56; 174.634, subdivision 2; 289A.51, subdivisions 3, 4; 297A.993, subdivision 2a; 299A.01, by adding a subdivision; 360.511, by adding subdivisions; 360.55, subdivisions 4, 4a, 8, by adding a subdivision; 398A.04, by adding a subdivision; 473.13, by adding a subdivision; 473.39, subdivision 6, by adding subdivisions; 473.408, by adding a subdivision; 473.4465, subdivision 4, by adding a subdivision; Laws 2021, First Special Session chapter 5, article 1, section 2, subdivision 2, as amended; Laws 2021, First Special Session chapter 14, article 11, section 45; Laws 2023, chapter 60, article 10, section 9; Laws 2023, chapter 68, article 1, section 2, subdivisions 2, 3; article 4, section 109; Laws 2024, chapter 127, article 1, section 2, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 137; 168; 168A; 174.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Ways and Means.

The report was adopted.

Stephenson and Torkelson from the Committee on Ways and Means to which was referred:

H. F. No. 2446, A bill for an act relating to state government; establishing a budget for the Department of Agriculture, the Board of Animal Health, the Agricultural Utilization Research Institute, and the Office of Broadband Development; making policy and technical changes to agricultural provisions; requiring reports; transferring money; appropriating money; amending Minnesota Statutes 2024, sections 17.133, subdivision 2; 18B.01, subdivision 1d, by adding a subdivision; 18B.30; Laws 2023, chapter 43, article 1, section 2, subdivision 4, as amended; proposing coding for new law in Minnesota Statutes, chapter 18C.

Reported the same back with the following amendments:

Page 16, line 32, after "grant" insert "in a competitive bid process"

Page 18, line 10, delete "This transfer is $100,000 in fiscal year 2028 and each year thereafter." and insert "For fiscal years 2028 through 2031, the commissioner of management and budget must include a transfer of $100,000 each year from the general fund to the pollinator research account established under Minnesota Statutes, section 18B.051, when preparing each forecast from the effective date of this section through the February 2027 forecast, under Minnesota Statutes, section 16A.103."

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Page 18, line 16, delete "This transfer is $186,000 in fiscal year 2028 and each year thereafter." and insert "For fiscal years 2028 through 2031, the commissioner of management and budget must include a transfer of $186,000 each year from the general fund to the Minnesota grown account established under Minnesota Statutes, section 17.102, subdivision 4, when preparing each forecast from the effective date of this section through the February 2027 forecast, under Minnesota Statutes, section 16A.103."

Page 19, delete lines 22 to 23 and insert:

"For fiscal years 2028 through 2031, the commissioner of management and budget must include a transfer of $11,373,000 each year from the general fund to the agriculture research, education, extension, and technology transfer account established under Minnesota Statutes, section 41A.14, subdivision 3, when preparing each forecast from the effective date of this section through the February 2027 forecast, under Minnesota Statutes, section 16A.103."

Page 19, line 24, after "transferred" insert "from the general fund"

Page 19, line 31, delete "This transfer" and insert "For fiscal years 2028 through 2031, the commissioner of management and budget must include a transfer of $250,000 each year from the general fund to the Board of Regents of the University of Minnesota, when preparing each forecast from the effective date of this section through the February 2027 forecast, under Minnesota Statutes, section 16A.103."

Page 19, delete line 32

Page 20, line 4, delete everything after the period and insert "For fiscal years 2028 through 2031, the commissioner of management and budget must include a transfer of $1,425,000 each year from the general fund to the agricultural and environmental revolving loan account established under Minnesota Statutes, section 17.117, subdivision 5a, when preparing each forecast from the effective date of this section through the February 2027 forecast, under Minnesota Statutes, section 16A.103."

Page 20, delete line 5

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

The report was adopted.

Klevorn and Nash from the Committee on State Government Finance and Policy to which was referred:

H. F. No. 2783, A bill for an act relating to state government; establishing a code of ethics for the legislative branch; allowing payment withholding if credible allegation of fraud; granting authority to share data regarding fraud in public programs; providing for renewable energy improvement and storage projects and EVSE projects; modifying insulin repayment account provisions; appropriating money; amending Minnesota Statutes 2024, sections 3A.03, subdivision 1; 13.02, subdivisions 7a, 16; 13.605, subdivision 1; 16A.28, subdivision 1; 151.741, subdivision 5; 352.04, subdivision 2; 352.92, subdivision 1; 352B.02, subdivision 1a; 353.27, subdivision 2; 353.65, subdivision 2; 353E.03, subdivision 1; 354.42, subdivision 2; 354A.12, subdivision 1; 490.123, subdivision 1a; Laws 2023, chapter 62, article 1, section 13; Laws 2024, chapter 127, article 67, section 6; proposing coding for new law in Minnesota Statutes, chapters 3; 13; 15; 16B; repealing Minnesota Statutes 2024, section 16A.287.

Journal Of the House - 22nd -Tuesday, April 22, 2025 - Top of Page 2379

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the agencies and for the purposes specified in this article. The appropriations are from the general fund, or another named fund, and are available for the fiscal years indicated for each purpose. The figures "2026" and "2027" used in this article mean that the appropriations listed under them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively. "The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium" is fiscal years 2026 and 2027.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
			2026	2027

Sec. 2. LEGISLATURE

Subdivision 1. Total Appropriation

$114,268,000

$114,389,000

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

Subd. 2. Senate

38,953,000

The base for this appropriation is $39,703,000 in fiscal year 2028 and each fiscal year thereafter.

Subd. 3. House of Representatives

42,375,000

41,162,000

The base for this appropriation is $39,437,000 in fiscal year 2028 and $39,436,000 in fiscal year 2029.

Subd. 4. Legislative Coordinating Commission

32,940,000

34,274,000

The base for this appropriation is $34,283,000 in fiscal year 2028 and $34,284,000 in fiscal year 2029.

Legislative Auditor. $12,654,000 the first year and $13,147,000 the second year are for the Office of the Legislative Auditor.

Revisor of Statutes. $9,388,000 the first year and $9,769,000 the second year are for the Office of the Revisor of Statutes.

Journal Of the House - 22nd -Tuesday, April 22, 2025 - Top of Page 2380
Legislative Reference Library. $2,278,000 the first year and $2,369,000 the second year are for the Legislative Reference Library.

Legislative Budget Office. $2,800,000 the first year and $2,965,000 the second year are for the Legislative Budget Office.

Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR

$9,231,000

(a) $19,000 each year is for necessary expenses in the normal performance of the governor's and lieutenant governor's duties for which no other reimbursement is provided.

(b) By September 1 of each year, the commissioner of management and budget shall report to the chairs and ranking minority members of the legislative committees with jurisdiction over state government finance any personnel costs incurred by the Offices of the Governor and Lieutenant Governor that were supported by appropriations to other agencies during the previous fiscal year. The Office of the Governor shall inform the chairs and ranking minority members of the committees before initiating any interagency agreements.

Sec. 4. STATE AUDITOR

$15,497,000

$16,101,000

The base for this appropriation is $16,034,000 in fiscal year 2028 and $16,064,000 in fiscal year 2029.

Sec. 5. ATTORNEY GENERAL

$48,854,000

$48,237,000

The general fund base for this appropriation is $44,821,000 in fiscal year 2028 and $44,462,000 in fiscal year 2029.

Appropriations by Fund
	2026	2027
General	45,438,000	44,821,000
State Government Special Revenue	3,021,000	3,021,000
Environmental	145,000	145,000
Remediation	250,000	250,000

Sec. 6. SECRETARY OF STATE

$13,120,000

$13,004,000

The base for this appropriation is $12,934,000 in fiscal year 2028 and $13,004,000 in fiscal year 2029.

Sec. 7. STATE BOARD OF INVESTMENT

$139,000

Sec. 8. ADMINISTRATIVE HEARINGS			$11,110,000	$11,709,000
Journal Of the House - 22nd -Tuesday, April 22, 2025 - Top of Page 2381 Appropriations by Fund
	2026	2027
General	705,000	715,000
Workers' Compensation	10,405,000	10,994,000

Sec. 9. INFORMATION TECHNOLOGY SERVICES

$10,153,000

$10,172,000

The base for this appropriation is $10,222,000 in fiscal year 2028 and each fiscal year thereafter.

During the biennium ending June 30, 2027, the Department of Information Technology Services must not charge fees to a public noncommercial educational television broadcast station eligible for funding under Minnesota Statutes, chapter 129D, for access to the state broadcast infrastructure. If the access fees not charged to public noncommercial educational television broadcast stations total more than $400,000 for the biennium, the office may charge for access fees in excess of these amounts.

Sec. 10. ADMINISTRATION

Subdivision 1. Total Appropriation

$36,976,000

$36,985,000

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

Subd. 2. Government and Citizen Services

17,067,000

17,075,000

The general fund base for this appropriation is $17,131,000 in fiscal year 2028 and each fiscal year thereafter.

Council on Developmental Disabilities. $222,000 each year is for the Council on Developmental Disabilities.

State Agency Accommodation Reimbursement. $200,000 each year may be transferred to the accommodation account established in Minnesota Statutes, section 16B.4805.

Subd. 3. Strategic Management Services

2,639,000

Subd. 4. Fiscal Agent

17,270,000

17,271,000

The appropriations under this subdivision are to the commissioner of administration for the purposes specified.

In Lieu of Rent. $12,566,000 the first year and $12,567,000 the second year are for space costs of the legislature and veterans organizations, ceremonial space, and statutorily free space.

Journal Of the House - 22nd -Tuesday, April 22, 2025 - Top of Page 2382
Public Television. (a) $1,550,000 each year is for matching grants for public television.

(b) $250,000 each year is for public television equipment grants under Minnesota Statutes, section 129D.13.

(c) $500,000 each year is for block grants to public television under Minnesota Statutes, section 129D.13. Of this amount, up to three percent is for the commissioner of administration to administer the grants.

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

Public Radio. (a) $1,242,000 each year is for community service grants to public educational radio stations. This appropriation may be used to disseminate emergency information in foreign languages. Any unencumbered balance does not cancel at the end of the first year and is available for the second year. The Association of Minnesota Public Educational Radio Stations may use up to four percent of this appropriation to help the organization and its member stations to better serve Minnesota's communities.

(b) $142,000 each year is for equipment grants to public educational radio stations. This appropriation may be used for the repair, rental, purchase, and upgrade of equipment and software, including computer software, applications, firmware, and equipment under $500.

(c) $1,020,000 each year is for equipment grants to Minnesota Public Radio, Inc., including upgrades to Minnesota's Emergency Alert and AMBER Alert Systems.

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

(e) The commissioner of administration must consider the recommendations of the Association of Minnesota Public Educational Radio Stations before awarding grants under Minnesota Statutes, section 129D.14, using the appropriations in paragraphs (a) to (c). No grantee is eligible for a grant unless they are a member of the Association of Minnesota Public Educational Radio Stations on or before July 1, 2023.

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

Journal Of the House - 22nd -Tuesday, April 22, 2025 - Top of Page 2383

Sec. 11. CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD

$464,000

$472,000

Sec. 12. MINNESOTA MANAGEMENT AND BUDGET

$52,181,000

The general fund base for this appropriation is $52,206,000 in fiscal year 2028 and each fiscal year thereafter.

Sec. 13. REVENUE

Subdivision 1. Total Appropriation

$216,916,000

$213,918,000

Appropriations by Fund
	2026	2027
General	212,656,000	209,658,000
Health Care Access	1,760,000	1,760,000
Highway User Tax Distribution	2,195,000	2,195,000
Environmental	305,000	305,000

The general fund base for this appropriation is $209,657,000 in fiscal year 2028 and $209,558,000 in fiscal year 2029.

Subd. 2. Tax System Management

181,937,000

179,013,000

Appropriations by Fund
General	177,677,000	174,753,000
Health Care Access	1,760,000	1,760,000
Highway User Tax Distribution	2,195,000	2,195,000
Environmental	305,000	305,000

Taxpayer Assistance and Tax Credit Outreach Grants. (a) $1,750,000 each year is for taxpayer assistance grants under Minnesota Statutes, section 270C.21, subdivision 3. The unencumbered balance in the first year does not cancel but is available for the second year.

(b) $1,000,000 each year is for tax credit outreach grants under Minnesota Statutes, section 270C.21, subdivision 4.

Subd. 3. Debt Collection Management

34,979,000

34,905,000

Sec. 14. GAMBLING CONTROL BOARD

$6,334,000

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

Sec. 15. RACING COMMISSION

$954,000

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

Journal Of the House - 22nd -Tuesday, April 22, 2025 - Top of Page 2384

Sec. 16. STATE LOTTERY

Notwithstanding Minnesota Statutes, section 349A.10, subdivision 3, the State Lottery's operating budget must not exceed $45,000,000 in fiscal year 2026 and $45,000,000 in fiscal year 2027.

Sec. 17. AMATEUR SPORTS COMMISSION

$401,000

$411,000

Sec. 18. COUNCIL FOR MINNESOTANS OF AFRICAN HERITAGE

$828,000

$840,000

Sec. 19. COUNCIL ON LATINO AFFAIRS

$693,000

$705,000

Sec. 20. COUNCIL ON ASIAN-PACIFIC MINNESOTANS

$655,000

$665,000

Sec. 21. INDIAN AFFAIRS COUNCIL

$1,381,000

$1,402,000

Sec. 22. COUNCIL ON LGBTQIA2S+ MINNESOTANS

$607,000

$615,000

Sec. 23. MINNESOTA HISTORICAL SOCIETY

Subdivision 1. Total Appropriation

$26,813,000

$27,126,000

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

Subd. 2. Operations and Programs

26,442,000

26,755,000

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

Subd. 3. Fiscal Agent

371,000

(a) Global Minnesota

39,000

(b) Minnesota Air National Guard Museum

17,000

100,000

(d) Farmamerica

165,000

(e) Minnesota Military Museum

50,000

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

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Sec. 24. BOARD OF THE ARTS

Subdivision 1. Total Appropriation

$7,798,000

$7,808,000

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

Subd. 2. Operations and Services

859,000

869,000

Subd. 3. Grants Program

4,800,000

Subd. 4. Regional Arts Councils

2,139,000

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

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

Sec. 25. MINNESOTA HUMANITIES CENTER

$970,000

$500,000 each year is for Healthy Eating, Here at Home grants under Minnesota Statutes, section 138.912. No more than three percent of the appropriation may be used for the nonprofit administration of the program.

Sec. 26. BOARD OF ACCOUNTANCY

$873,000

$887,000

Sec. 27. BOARD OF ARCHITECTURE, ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN

$928,000

$943,000

Sec. 28. BOARD OF COSMETOLOGIST EXAMINERS

$3,654,000

$3,711,000

Sec. 29. BOARD OF BARBER EXAMINERS

$459,000

$466,000

Sec. 30. CHILDREN, YOUTH, AND FAMILIES.

$55,000

$-0-

$55,000 the first year is to integrate the transit assistance program into the MNbenefits web portal under article 2, section 20.

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Sec. 31. GENERAL CONTINGENT ACCOUNTS

$2,000,000

$500,000

Appropriations by Fund
	2026	2027
General	1,500,000	-0-
State Government Special Revenue	400,000	400,000
Workers' Compensation	100,000	100,000

(a) The general fund base for this appropriation is $1,500,000 in fiscal year 2028 and each even-numbered fiscal year thereafter. The base is $0 for fiscal year 2029 and each odd-numbered fiscal year thereafter.

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

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

Sec. 32. TORT CLAIMS

$161,000

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

Sec. 33. MINNESOTA STATE RETIREMENT SYSTEM

Subdivision 1. Total Appropriation

$15,064,000

$15,154,000

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

Subd. 2. Combined Legislators and Constitutional Officers Retirement Plan

9,064,000

9,154,000

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

Subd. 3. Judges Retirement Plan

6,000,000

The appropriations for this subdivision are for transfer to the judges retirement fund under Minnesota Statutes, section 490.123. This transfer continues each fiscal year until the judges retirement plan reaches 100 percent funding as determined by an actuarial valuation prepared according to Minnesota Statutes, section 356.214.

Journal Of the House - 22nd -Tuesday, April 22, 2025 - Top of Page 2387

Sec. 34. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION

$25,000,000

(a) $9,000,000 each year is for direct state aid to the public employees police and fire retirement plan authorized under Minnesota Statutes, section 353.65, subdivision 3b.

(b) State payments from the general fund to the Public Employees Retirement Association on behalf of the former MERF division account are $16,000,000 on September 15, 2026, and $16,000,000 on September 15, 2027. These amounts are estimated to be needed under Minnesota Statutes, section 353.505.

Sec. 35. TEACHERS RETIREMENT ASSOCIATION

$29,831,000

The amounts estimated to be needed are as follows.

Special Direct State Aid. $27,331,000 each year is for special direct state aid authorized under Minnesota Statutes, section 354.436.

Special Direct State Matching Aid. $2,500,000 each year is for special direct state matching aid authorized under Minnesota Statutes, section 354.435.

Sec. 36. ST. PAUL TEACHERS RETIREMENT FUND

$14,827,000

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

Sec. 37. Laws 2023, chapter 62, article 1, section 11, subdivision 2, is amended to read:

Subd. 2. Government and Citizen Services

39,928,000

19,943,000

The base for this appropriation is $17,268,000 in fiscal year 2026 and $17,280,000 in fiscal year 2027.

Council on Developmental Disabilities. $222,000 each year is for the Council on Developmental Disabilities.

State Agency Accommodation Reimbursement. $200,000 each year may be transferred to the accommodation account established in Minnesota Statutes, section 16B.4805.

Disparity Study. $500,000 the first year and $1,000,000 the second year are to conduct a study on disparities in state procurement. This is a onetime appropriation.

Grants Administration Oversight. $2,411,000 the first year and $1,782,000 the second year are for grants administration oversight. The base for this appropriation in fiscal year 2026 and each year thereafter is $1,581,000.

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$735,000 the first year and $201,000 the second year are for a study to develop a road map on the need for an enterprise grants management system and to implement the study's recommendation. This is a onetime appropriation.

Risk Management Fund Property Self-Insurance. $12,500,000 the first year is for transfer to the risk management fund under Minnesota Statutes, section 16B.85. This is a onetime appropriation.

Office of Enterprise Translations. $1,306,000 the first year and $1,159,000 the second year are to establish the Office of Enterprise Translations. $250,000 each year may be transferred to the language access service account established in Minnesota Statutes, section 16B.373.

Capitol Mall Design Framework Implementation. $5,000,000 the first year is to implement the updated Capitol Mall Design Framework, prioritizing the framework plans identified in article 2, section 124. This appropriation is available until ~~December 31, 2024~~ June 30, 2026.

Parking Fund. $3,255,000 the first year and $1,085,000 the second year are for a transfer to the state parking account to maintain the operations of the parking and transit program on the Capitol complex. These are onetime transfers.

Procurement; Environmental Analysis and Task Force. $522,000 the first year and $367,000 the second year are to implement the provisions of Minnesota Statutes, section 16B.312.

Center for Rural Policy and Development. $100,000 the first year is for a grant to the Center for Rural Policy and Development.

EFFECTIVE DATE. This section is effective retroactively from July 1, 2024.

Sec. 38. Laws 2023, chapter 62, article 1, section 47, is amended to read:

Sec. 47. ST. ANTHONY FALLS STUDY.

$1,000,000 in fiscal year 2024 is appropriated from the general fund to the Board of Regents of the University of Minnesota for a geophysical study and hazard assessment of the St. Anthony Falls area and St. Anthony Falls cutoff wall. The study must include a field-based investigation of the cutoff wall and other subsurface structures, modeling of the surrounding area, examination of public safety and infrastructure risks posed by potential failure of the cutoff wall or surrounding area, and emergency response plan for identified risks. By conducting this study, the Board of Regents does not consent to accepting liability for the current condition or risks posed by a potential failure of the cutoff wall. By July 1, ~~2025~~ 2026, the Board of Regents must submit a report to the legislative committees with jurisdiction over state and local government policy and finance. This appropriation is available until June 30, ~~2025~~ 2026.

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

Journal Of the House - 22nd -Tuesday, April 22, 2025 - Top of Page 2389

Sec. 39. Laws 2024, chapter 127, article 67, section 6, is amended to read:

Sec. 6. COMMISSIONER OF MANAGEMENT AND BUDGET

Appropriations by Fund
	2024	2025
General	-0-	(232,000)
Health Care Access	-0-	100,000

(a) Insulin safety net program. $100,000 in fiscal year 2025 is from the health care access fund for the insulin safety net program in Minnesota Statutes, section 151.74.

(b) Transfer. The commissioner must transfer from the health care access fund to the insulin ~~safety net program~~ repayment account in the special revenue fund the amount certified by the commissioner of administration under Minnesota Statutes, section 151.741, subdivision 5, paragraph (b), estimated to be $100,000 in fiscal year 2025, for reimbursement to manufacturers for insulin dispensed under the insulin safety net program in Minnesota Statutes, section 151.74. The base for this transfer is estimated to be $100,000 in fiscal year 2026 and $100,000 in fiscal year 2027.

(c) Base Level Adjustment. The health care access fund base is increased by $100,000 in fiscal year 2026 and increased by $100,000 in fiscal year 2027.

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

ARTICLE 2

STATE GOVERNMENT STATUTORY PROVISIONS

Section 1. Minnesota Statutes 2024, section 3.099, subdivision 3, is amended to read:

Subd. 3. Leaders. The senate Committee on Rules and Administration for the senate and the house of representatives Committee on Rules and Legislative Administration for the house of representatives may each designate for their respective body up to ~~five~~ six leadership positions to receive up to 140 percent of the compensation of other members.

At the commencement of each biennial legislative session, each house of the legislature shall adopt a resolution designating its majority and minority leader.

The majority leader is the person elected by the caucus of members in each house which is its largest political affiliation. The minority leader is the person elected by the caucus which is its second largest political affiliation.

EFFECTIVE DATE. This section is effective retroactively from January 14, 2025.

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Sec. 2. Minnesota Statutes 2024, section 3.971, is amended by adding a subdivision to read:

Subd. 10. Implementation of audit recommendations. (a) By February 1 each year, as resources permit, the legislative auditor must submit a report to the chairs and ranking minority members of the legislative committees with fiscal jurisdiction over an entity subject to audit under this section. The report must detail whether the entity has implemented any recommendations identified by the legislative auditor during the prior five years in a financial audit, program evaluation, or special review.

(b) By July 1 each year, as resources permit, the legislative auditor must submit a report to designated legislators listing the standing committees in the senate and the house of representatives to which the legislative auditor did or did not present their reports under paragraph (a) in a public hearing. For purposes of this paragraph, "designated legislators" means the chairs and ranking minority members of the senate Committees on State Government Policy and Finance, Rules and Administration, and Finance, and the house of representatives Committees on State Government Finance and Policy, Rules and Legislative Administration, and Ways and Means.

Sec. 3. Minnesota Statutes 2024, section 3.98, subdivision 1, is amended to read:

Subdivision 1. Preparation; duties. (a) The head or chief administrative officer of each department or agency of the state government, including the supreme court, shall prepare a fiscal note consistent with the standards and procedures adopted under section 3.8853, at the request of the chair or ranking minority member of the standing committee to which a bill has been referred, or the chair or ranking minority member of the house of representatives Ways and Means Committee, or the chair or ranking minority member of the senate Committee on Finance.

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

Sec. 4. Minnesota Statutes 2024, section 3.98, subdivision 3, is amended to read:

Subd. 3. Distribution. A copy of the fiscal note shall be delivered to the chair or ranking minority member of the Ways and Means Committee of the house of representatives, the chair or ranking minority member of the Finance Committee of the senate, the chair and ranking minority member of the standing committee to which the bill has been referred, to the chief author of the bill, and to the commissioner of management and budget.

Sec. 5. [4.048] HEALTHY AGING SUBCABINET.

Subdivision 1. Establishment. The Healthy Aging Subcabinet is established in Minnesota Management and Budget. The subcabinet is a distinct entity, separately identifiable from other state agencies and is dedicated to ensuring all people in Minnesota age with dignity and have equitable opportunities for the best possible health and well-being throughout the lifespan.

Subd. 2. Membership; chair. The subcabinet consists of the heads of the state agencies that administer policies that impact aging Minnesotans, as determined by the governor in consultation with the director appointed under subdivision 5. The director is the chair of the subcabinet.

Subd. 3. Purpose. The purpose of the subcabinet is to:

(1) assist in the design of a statewide planning process for a Minnesota Healthy Aging Plan under subdivision 10;

(2) engage public participation in creating policy solutions for identified challenges and opportunities related to aging in communities and living in one's own home;

Journal Of the House - 22nd -Tuesday, April 22, 2025 - Top of Page 2391

(3) identify opportunities within state government to improve quality of life for older adults and promote healthy aging for all Minnesotans; and

(4) serve as a resource to the legislature on policies and practices that will enhance the aging experience for all Minnesotans.

Subd. 4. Duties. Led by the director, and in consultation with the Citizens' Engagement Council appointed under subdivision 6, the subcabinet must perform the following duties:

(1) integrate aging-related considerations into state agency planning, decision-making, and measurable outcomes for service delivery processes;

(2) promote the adoption of evidence-based approaches and policies that support healthy aging across the public and private sectors;

(3) ensure that member agencies conduct community engagement to inform strategic plans for each agency;

(4) identify federal and state funding for programs that address the negative impact of social determinants of health and well-being for Minnesotans and those that would significantly benefit from community strategies that prevent or delay disability and that enable quality-of-life outcomes throughout the lifespan;

(5) identify areas of potential savings through economic and community development and resource planning for an aging demographic;

(6) evaluate the impact on healthy aging of current aging-related initiatives in public and private sectors including housing, transit and workforce programs designed for older adults, and community health efforts in order to inform the Minnesota Healthy Aging Plan;

(7) coordinate with local and state agencies and Tribal Nations to analyze the health care delivery system for oral health, chronic and acute health conditions, and palliative and end-of-life care to identify and address access issues throughout Minnesota;

(8) in consultation with Tribal Nations, analyze the extent of family caregiving in private and public sectors to determine the need for greater support through aging policies initiated in the public and private sectors;

(9) in consultation with the ombudsman for long-term care, evaluate the oversight process of long-term care facilities, assisted living residences, and home-care agencies to ensure public safety and accountability;

(10) develop a transparency policy that tracks the use of government funding for long-term care to ensure state funding is used as intended;

(11) monitor and evaluate strategies and findings for progress reports during the planning process to be posted on the subcabinet's website; and

(12) in consultation with the ombudsman for long-term care, evaluate the need for additional long-term care services and training and recruitment of long-term care providers throughout the state.

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Subd. 5. Director; Office of Healthy Aging; staffing; duties. (a) The governor must appoint a director to establish and lead an Office of Healthy Aging and serve as chair of the Healthy Aging Subcabinet. The director must possess a background in public health, public policy, and community engagement and possess demonstrated knowledge of older adult abilities and needed supports when living at home or in the person's community. The director may have experience working with an aging population. The director's responsibilities at a minimum are to:

(1) lead and coordinate the duties of the Healthy Aging Subcabinet;

(2) initiate and conduct a planning process to develop and adopt the Minnesota Healthy Aging Plan under subdivision 10;

(3) appoint members of, and provide support to, the Citizens' Engagement Council under subdivision 6;

(4) ensure community discussions across public and private sectors and with Tribal governments and the Indian Affairs Council to inform policy recommendations for the Minnesota Healthy Aging Plan under subdivision 10;

(5) ensure that the Minnesota Healthy Aging Plan under subdivision 10 reflects the perspectives of older adults, caregivers, health care and service providers, and advocacy organizations regarding the community development required to support older adults living at home and aging in the community;

(6) explore initiatives that enhance opportunities for an aging adult, regardless of age, income, or ability level, to live in the adult's own home and community if desired and safe;

(7) make efforts to break down silos and work across agencies to better target the state's role in addressing issues impacting aging in Minnesota communities; and

(8) establish and manage external partnerships and build relationships with communities, community leaders, and those who have direct experience with aging to ensure that all voices are represented in the work of the subcabinet, office, and Citizens' Engagement Council.

(b) The director may secure professional development and training opportunities to promote community development initiatives that address aging-related issues and support the Healthy Aging Subcabinet.

(c) The director may hire and compensate out of available funds additional staff as necessary to support the office and conduct the planning process. Staff members must possess relevant expertise and experience in areas such as aging services, policy analysis, community health, and community development and engagement. The director serves in the unclassified service.

Subd. 6. Citizens' Engagement Council; public engagement. (a) The director must appoint a Citizens' Engagement Council composed of 20 diverse members from different geographic regions and demographic groups, including older adults, caregivers, elder advocates, the Minnesota area agencies on aging, Tribal Nations, county agencies, nonprofit services, and business sectors. At least ten members of the council must be older adults, caregivers, or elder advocates, and these members may not otherwise represent a specific agency, service, or business sector. The purpose of the council is to:

(1) ensure the voices and perspectives of older adults are included in the recommended initiatives and policies for implementing the Minnesota Healthy Aging Plan under subdivision 10;

(2) provide feedback to the subcabinet on current aging-related programs and services, identifying areas for improvements and innovations; and

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(3) provide ongoing input, advice, and strategies for the planning process to engage older Minnesotans and their families.

(b) Except where otherwise provided in this section, the terms, compensation, and removal of council members is governed by section 15.059. A member participating in council activities in the ordinary course of the member's employment is not entitled to compensation from the council.

Subd. 7. Discretionary powers. The office may apply for and receive grants from public sources and private foundations, award grants, and enter into contracts subject to applicable law.

Subd. 8. Staff and administrative support. The commissioner of management and budget, in coordination with other state agencies and boards as applicable, must provide staffing and administrative support to the Healthy Aging Subcabinet, the Office of Healthy Aging, and the Citizens' Engagement Council.

Subd. 9. Public awareness. In order to promote public engagement, the Office of Healthy Aging shall maintain a website and publish annual reports about the work of the office. The office shall also share on its website ideas for how Minnesotans can become involved with and informed on aging issues. By use of this medium, the office shall gather ideas from the public on needed programs for healthy aging in the community.

Subd. 10. The Minnesota Healthy Aging Plan. The Office of Healthy Aging must adopt a plan entitled the Minnesota Healthy Aging Plan. A draft plan must be published no later than June 30, 2027, and a final plan must be adopted and published no later than January 15, 2028. The Minnesota Healthy Aging Plan shall include recommendations from the Citizens' Engagement Council and subcabinet members that support the health and well‑being of older Minnesotans, their contributions, and their health care needs as follows:

(1) community-based initiatives that support living in one's own home and community if desired, regardless of age, income, or ability level, and as safely, independently, and comfortably as possible;

(2) community-based initiatives with public and private sector funding that provide older adults the choice to remain in and contribute to their communities with needed supports including access to health care and food, independent housing options, opportunities to socialize, innovative residential options for long-term care, and safe and affordable transportation;

(3) public policies that recommend systemwide improvements for safe and affordable housing options and transportation, innovative market-rate housing options, removal of employment barriers and increased opportunities for an aging workforce, outdoor recreational opportunities, broadband communications, and health care that includes mental health and oral health;

(4) public policies that address the current and future demand for home care, assisted living and skilled nursing facilities, and innovations for community-based long-term care services; workforce training, recruitment, and employment opportunities throughout Minnesota; and professional education opportunities for long-term care providers;

(5) public and private sector resource management policies that implement community health strategies to address social determinants of health and well-being;

(6) state agencies' strategic plans that drive innovations for healthy aging in communities across the lifespan;

(7) ongoing aging policy coordination and oversight within state and county agencies and in coordination with Tribal Nations, local communities, and the private sector;

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(8) measures to ensure ongoing monitoring and evaluation of the impact of healthy aging policies and programs in order to make improvements and recommend further innovations;

(9) recommendations for full implementation of the Minnesota Healthy Aging Plan that includes administration, staffing, and appropriations; and

(10) measures to evaluate the success and impact of the Minnesota Healthy Aging Plan.

Subd. 11. Annual report. By January 15 of each year, the office must submit a report to the governor and the chairs and ranking minority members of the legislative committees with primary jurisdiction over healthy aging policy and funding detailing the activities of the office for the preceding year with legislative recommendations for the coming year.

Sec. 6. Minnesota Statutes 2024, section 8.16, subdivision 1, is amended to read:

Subdivision 1. Authority. (a) The attorney general, or any deputy, assistant, or special assistant attorney general whom the attorney general authorizes in writing, has the authority in any county of the state to subpoena and require the production of:

(1) any records of:

(i) telephone companies, cellular phone companies, and paging companies,;

(ii) subscribers of private computer networks, including Internet service providers or computer bulletin board systems,;

(iii) electric companies, gas companies, and water utilities,;

(iv) chemical suppliers,;

(v) hotels and motels,;

(vi) pawn shops,;

(vii) airlines, buses, taxis, and other entities engaged in the business of transporting people,; and

(viii) freight companies, self-service storage facilities, warehousing companies, package delivery companies, and other entities engaged in the businesses of transport, storage, or delivery~~, and~~;

(2) wage and employment records;

(3) records of the existence of safe deposit box account numbers and customer savings and checking account numbers maintained by financial institutions and safe deposit companies;

(4) insurance records related to claim settlement; and

(5) banking, credit card, and financial records, including but not limited to a safe deposit, loan and account application and agreement, signature card, statement, check, transfer, account authorization, safe deposit access record, and documentation of fraud, that belong to the subject of an investigation conducted pursuant to the attorney general's authority under section 256B.12, whether the record is held in the investigation subject's name or in another person's name.

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(b) Subpoenas may only be issued for records that are relevant to an ongoing legitimate law enforcement investigation.

Sec. 7. Minnesota Statutes 2024, section 11A.07, subdivision 4, is amended to read:

Subd. 4. Duties and powers. The director, at the direction of the state board, shall:

(1) plan, direct, coordinate, and execute administrative and investment functions in conformity with the policies and directives of the state board and the requirements of this chapter and of chapter 356A;

(2) prepare and submit biennial and annual budgets to the board and with the approval of the board submit the budgets to the Department of Management and Budget;

(3) employ professional and clerical staff as necessary;

(4) report to the state board on all operations under the director's control and supervision;

(5) maintain accurate and complete records of securities transactions and official activities;

(6) establish a policy, which is subject to state board approval, relating to the purchase and sale of securities on the basis of competitive offerings or bids;

(7) cause securities acquired to be kept in the custody of the commissioner of management and budget or other depositories consistent with chapter 356A, as the state board deems appropriate;

(8) prepare and file with the director of the Legislative Reference Library~~, by December 31 of each year,~~ a report summarizing the activities of the state board, the council, and the director during the preceding fiscal year;

(9) include on the state board's website its annual report and an executive summary of its quarterly reports;

(10) require state officials from any department or agency to produce and provide access to any financial documents the state board deems necessary in the conduct of its investment activities;

(11) receive and expend legislative appropriations; and

(12) undertake any other activities necessary to implement the duties and powers set forth in this subdivision consistent with chapter 356A.

Sec. 8. Minnesota Statutes 2024, section 11A.07, subdivision 4b, is amended to read:

Subd. 4b. Annual report. The report required under subdivision 4, clause (8), must include an executive summary, must be prepared and filed after the completion of the applicable fiscal year audit but no later than March 31 of each year, and must be prepared so as to provide the legislature and the people of the state with:

(1) a clear, comprehensive summary of the portfolio composition, the transactions, the total annual rate of return, and the yield to the state treasury and to each of the funds with assets invested by the state board; and

(2) the recipients of business placed or commissions allocated among the various commercial banks, investment bankers, money managers, and brokerage organizations and the amount of these commissions or other fees.

Sec. 9. Minnesota Statutes 2024, section 16A.057, subdivision 5, is amended to read:

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Subd. 5. Monitoring Office of the Legislative Auditor audits. (a) The commissioner must review audit reports from the Office of the Legislative Auditor and take appropriate steps to address internal control problems found in executive agencies.

(b) The commissioner must submit a report to the legislative auditor no later than September 1 of each year detailing the implementation status of all recommendations identified in an auditor's financial audit, program evaluation, or special review during the prior five years. The report must include a specific itemization of recommendations that have not been implemented during that period, along with the basis for that decision.

Sec. 10. Minnesota Statutes 2024, section 240.131, subdivision 7, is amended to read:

Subd. 7. Payments to state. (a) A regulatory fee is imposed at the rate of ~~one~~ two percent of all amounts wagered by Minnesota residents with an authorized advance deposit wagering provider. The fee shall be declared on a form prescribed by the commission. The ADW provider must pay the fee to the commission no more than 15 days after the end of the month in which the wager was made. Fees collected under this paragraph must be deposited in the state treasury and credited to a racing and card-playing regulation account in the special revenue fund and are appropriated to the commission to offset the costs incurred by the commission as described in section 240.30, subdivision 9, or the costs associated with regulating horse racing and pari-mutuel wagering in Minnesota.

(b) A breeders fund fee is imposed in the amount of one-quarter of one percent of all amounts wagered by Minnesota residents with an authorized advance deposit wagering provider. The fee shall be declared on a form prescribed by the commission. The ADW provider must pay the fee to the commission no more than 15 days after the end of the month in which the wager was made. Fees collected under this paragraph must be deposited in the state treasury and credited to a racing and card-playing regulation account in the special revenue fund and are appropriated to the commission to offset the cost of administering the breeders fund, to support racehorse adoption, retirement, and repurposing, and promote horse breeding in Minnesota.

Sec. 11. Minnesota Statutes 2024, section 256B.12, is amended to read:

256B.12 LEGAL REPRESENTATION.

The attorney general or the appropriate county attorney appearing at the direction of the attorney general shall be the attorney for the state agency, and the county attorney of the appropriate county shall be the attorney for the local agency in all matters pertaining hereto. To prosecute under this chapter or sections ~~609.466 and~~ 609.467 and 609.52, subdivision 2, or to recover payments wrongfully made under this chapter, the attorney general or the appropriate county attorney, acting independently or at the direction of the attorney general may institute a criminal or civil action.

Sec. 12. Minnesota Statutes 2024, section 326A.03, subdivision 6, is amended to read:

Subd. 6. Certificate; required education and experience until July 1, 2030. (a) On or after July 1, 2006, and before July 1, 2030, a person who has passed the examination required in this section must be granted a certificate as a certified public accountant provided: (1) the person certifies to the board that the person has completed at least 150 semester or 225 quarter hours at a college or university that is fully accredited by a recognized accrediting agency listed with the United States Department of Education, or an equivalent accrediting association, and has completed at least one year of experience of the type specified in paragraph (b); (2) the board verifies the certifications; and (3) the person complies with requirements for initial issuance of the certificate as a certified public accountant as prescribed by the board by rule.

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(b) An applicant for initial issuance of a certificate under this subdivision shall show that the applicant has had one year of experience. Acceptable experience includes providing any type of service or advice involving the use of accounting, attest, compilation, management advisory, financial advisory, tax, or consulting skills, as verified by a licensee and meeting requirements prescribed by the board by rule. Acceptable experience may be gained through employment in government, industry, academia, or public practice. Experience as an auditor in the Office of the Legislative Auditor or State Auditor, as verified by a licensee, shall be acceptable experience.

Sec. 13. Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision to read:

Subd. 6a. Certificate; required education and experience after June 30, 2030. (a) On and after July 1, 2030, or during the transitional period as provided in subdivision 6b, the board must grant a certificate as a certified public accountant to a person who has not previously been certified and who has passed the examination required in this section if:

(1) the person certifies to the board that the person has:

(i) completed a master's degree at a college or university that is fully accredited by a recognized accrediting agency listed with the United States Department of Education and has completed at least one year of acceptable experience as described in paragraph (b); or

(ii) earned a bachelor's or graduate degree from a college or university that is fully accredited by a recognized accrediting agency listed with the United States Department of Education and has completed at least two years of acceptable experience as described in paragraph (b);

(2) the board verifies the certification under clause (1); and

(3) the person complies with requirements as prescribed by the board for an initial certificate.

(b) Acceptable experience includes providing any type of service or advice that involves accounting, attestation, compilation, management advisement, financial advisement, tax, or consulting, as verified by a licensee and meeting requirements prescribed by the board by rule. Acceptable experience may be gained through employment in government, industry, academia, or public practice. Experience as an auditor in the Office of the Legislative Auditor or the Office of the State Auditor, as verified by a licensee, is acceptable experience.

Sec. 14. Minnesota Statutes 2024, section 326A.03, is amended by adding a subdivision to read:

Subd. 6b. Transitional period. (a) Until July 1, 2030, a person must be granted an initial certificate as a certified public accountant if the person meets either:

(1) all requirements under subdivision 6; or

(2) all requirements under subdivision 6a.

(b) This subdivision expires July 1, 2030.

EFFECTIVE DATE. This section is effective January 1, 2026.

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Sec. 15. Minnesota Statutes 2024, section 326A.14, is amended to read:

326A.14 ~~SUBSTANTIAL EQUIVALENCY~~ MOBILITY.

Subdivision 1. Requirements. (a) An individual whose principal place of business is not in this state and who holds a valid license in good standing as a certified public accountant from any state which, upon verification, is in substantial equivalence with the certified public accountant licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall be presumed to have qualifications substantially equivalent to this state's requirements and shall have all the privileges of licensees of this state without the need to obtain a license., if the person:

(1) holds a valid certificate, license, or permit to practice as a certified public accountant that was issued in another state and is in good standing to practice as a certified public accountant in that state;

(2) has a bachelor's degree or higher from an accredited postsecondary school with an accounting concentration or equivalent as determined by the board by rule; and

(3) has passed the Uniform CPA Examination.

(b) Notwithstanding any contrary provision of this chapter, an individual who offers or renders professional services, whether in person, by mail, telephone, or electronic means, under ~~this~~ paragraph (a): (1) shall be granted practice privileges in this state; (2) is subject to the requirements in paragraph (c); and (3) is not required to provide any notice or other submission.

(b) An individual whose principal place of business is not in this state and who holds a valid license in good standing as a certified public accountant from any state whose certified public accountant licensure qualifications, upon verification, are not substantially equivalent with the licensure requirements of section 326A.03, subdivisions 3, 4, and 6, shall be presumed to have qualifications substantially equivalent to this state's requirements and shall have all the privileges of licensees of this state without the need to obtain a license if the individual obtains verification, as specified in board rule, that the individual's qualifications are substantially equivalent to the licensure requirements of section 326A.03, subdivisions 3, 4, and 6. For purposes of this paragraph, any individual who passed the Uniform CPA Examination and holds a valid license issued by any other state prior to January 1, 2009, is exempt from the education requirement in section 326A.03, subdivision 6, paragraph (a), provided the individual meets the education requirement in section 326A.03, subdivision 3. Notwithstanding any contrary provision of this chapter, an individual who offers or renders professional services, whether in person, by mail, telephone, or electronic means, under this paragraph: (1) shall, after the verification specified by adopted rules, be granted practice privileges in this state; (2) is subject to the requirements in paragraph (c); and (3) is not required to provide any notice or other submission.

(c) An individual licensee of another state exercising the privilege afforded under this section and the firm which employs that licensee are deemed to have consented, as a condition of the grant of this privilege:

(1) to the personal and subject matter jurisdiction and disciplinary authority of the board;

(2) to comply with this chapter and the board's rules;

(3) to the appointment of the state board that issued the license as the licensee's agent upon whom process may be served in any action or proceeding by this board against the licensee; and

(4) to cease offering or rendering professional services in this state individually and on behalf of a firm in the event the license issued by the state of the individual's principal place of business is no longer valid or in good standing.

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(d) An individual who has been granted practice privileges under this section who performs attest services as defined in section 326A.01, subdivision 2, clause (1), (4), or (5), for any entity with its headquarters in this state, may only do so through a firm which has obtained a permit under section 326A.05.

Subd. 2. Use of title in another state. A licensee of this state offering or rendering services or using the CPA title in another state is subject to the same disciplinary action in this state for which the licensee would be subject to discipline for an act committed in the other state. The board shall investigate any complaint made by the board of accountancy of another state.

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

Sec. 16. Minnesota Statutes 2024, section 349A.01, is amended by adding a subdivision to read:

Subd. 13a. Responsible lottery official. "Responsible lottery official" means the officers, directors, or owners of an organization, firm, partnership, or corporation that have oversight of lottery ticket sales.

Sec. 17. Minnesota Statutes 2024, section 349A.06, subdivision 2, is amended to read:

Subd. 2. Qualifications. (a) The director may not contract with a retailer who is a sole proprietor who:

(1) is under the age of 18;

(2) is in business solely as a seller of lottery tickets;

(3) owes $500 or more in delinquent taxes as defined in section 270C.72;

(4) has been convicted within the previous five years of a felony or gross misdemeanor, any crime involving fraud or misrepresentation, or a gambling-related offense in any jurisdiction in the United States;

(5) is a member of the immediate family, residing in the same household, as the director or any employee of the lottery;

(6) in the director's judgment does not have the financial stability or responsibility to act as a lottery retailer, or whose contracting as a lottery retailer would adversely affect the public health, welfare, and safety, or endanger the security and integrity of the lottery; or

(7) is a currency exchange, as defined in section 53A.01.

~~A contract entered into before August 1, 1990, which violates clause (7) may continue in effect until its expiration but may not be renewed.~~

(b) The director may not contract with a retailer that is an organization, firm, partnership, or corporation that:

(1) has a responsible lottery official who:

(i) is under the age of 18;

(ii) owes $500 or more in delinquent taxes as defined in section 270C.72; or

(iii) has been convicted within the previous five years of a felony or gross misdemeanor, any crime involving fraud or misrepresentation, or a gambling-related offense in any jurisdiction in the United States;

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An organization, firm, partnership, or corporation that (2) has a stockholder who owns more than five percent of the business or the stock of the corporation, a responsible lottery official, an officer, or a director, that ~~does not meet the requirements of paragraph (a), clause (4), is not eligible to be a lottery retailer under this section~~ is a member of the immediate family, residing in the same household, as the director or any employee of the lottery; or

(3)(i) is in business solely as a seller of lottery tickets;

(ii) in the director's judgment does not have the financial stability or responsibility to act as a lottery retailer, or whose contracting as a lottery retailer would adversely affect the public health, welfare, and safety, or endanger the security and integrity of the lottery; or

(iii) is a currency exchange, as defined in section 53A.01.

(c) The restrictions under paragraph (a), clause (4), do not apply to an organization, partnership, or corporation if the director determines that the organization, partnership, or firm has terminated its relationship with the individual whose actions directly contributed to the disqualification under this subdivision.

Sec. 18. Minnesota Statutes 2024, section 349A.06, subdivision 4, is amended to read:

Subd. 4. Criminal history. The director may request the director of alcohol and gambling enforcement to investigate all applicants for lottery retailer contracts to determine their compliance with the requirements of subdivision 2.

(a) Upon the director's request, an applicant for a lottery retailer contract must submit a completed criminal history records check consent form, a full set of classifiable fingerprints, and required fees to the director or the Bureau of Criminal Apprehension. Upon receipt of the information, the director must submit the completed criminal history records check consent form, full set of classifiable fingerprints, and required fees to the Bureau of Criminal Apprehension.

(b) After receiving the information, the bureau must conduct a Minnesota criminal history records check of the individual. The bureau is authorized to exchange the fingerprints with the Federal Bureau of Investigation to obtain the applicant's national criminal history record information. The bureau must return the results of the Minnesota and national criminal history records checks to the director to determine the individual's compliance with the requirements of subdivision 2.

(c) The director must request a Minnesota and national criminal history records check for any sole proprietor or responsible lottery official that applies to be a lottery retailer and (1) has not undergone a check under this section within the past seven years, or (2) has had any lapse in a contract to sell lottery tickets.

(d) The director may issue a temporary contract, valid for not more than 90 days, to an applicant pending the completion of the investigation or a final determination of qualifications under this section. The director has access to all criminal history data compiled by the ~~director of alcohol and gambling enforcement~~ Bureau of Criminal Apprehension on (1) any person holding or applying for a retailer contract, (2) any person holding a lottery vendor contract or who has submitted a bid on such a contract, and (3) any person applying for employment with the lottery.

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Sec. 19. Minnesota Statutes 2024, section 349A.06, subdivision 11, is amended to read:

Subd. 11. Cancellation, suspension, and refusal to renew contracts or locations. (a) The director shall cancel the contract of any lottery retailer or prohibit a lottery retailer from selling lottery tickets at a business location who:

(1) has a sole proprietor or responsible lottery official that has been convicted of a felony or gross misdemeanor in any jurisdiction in the United States;

(2) has a sole proprietor or responsible lottery official that has committed any crime involving fraud, or misrepresentation, or ~~deceit~~ a gambling-related offense in any jurisdiction in the United States;

(3) has provided false or misleading information to the lottery; or

(4) has acted in a manner prejudicial to public confidence in the integrity of the lottery.

(b) The director may cancel, suspend, or refuse to renew the contract of any lottery retailer or prohibit a lottery retailer from selling lottery tickets at a business location who:

(1) changes business location;

(2) fails to account for lottery tickets received or the proceeds from tickets sold;

(3) fails to remit funds to the director in accordance with the director's rules;

(4) violates a law or a rule or order of the director;

(5) fails to comply with any of the terms in the lottery retailer's contract;

(6) fails to file a bond, securities, or a letter of credit as required under subdivision 3;

(7) in the opinion of the director fails to maintain a sufficient sales volume to justify continuation as a lottery retailer; or

(8) has violated section 340A.503, subdivision 2, clause (1), two or more times within a two-year period.

(c) The director may also cancel, suspend, or refuse to renew a lottery retailer's contract or prohibit a lottery retailer from selling lottery tickets at a business location if there is a material change in any of the factors considered by the director under subdivision 2.

(d) A contract cancellation, suspension, refusal to renew, or prohibiting a lottery retailer from selling lottery tickets at a business location under this subdivision is a contested case under sections 14.57 to 14.69 and is in addition to any criminal penalties provided for a violation of law or rule.

(e) The director may temporarily suspend a contract or temporarily prohibit a lottery retailer from selling lottery tickets at a business location without notice for any of the reasons specified in this subdivision provided that a hearing is conducted within seven days after a request for a hearing is made by a lottery retailer. Within 20 days after receiving the administrative law judge's report, the director shall issue an order vacating the temporary suspension or prohibition or making any other appropriate order. If no hearing is requested within 30 days of the temporary suspension or prohibition taking effect, the suspension or prohibition becomes permanent unless the director vacates or modifies the order.

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Sec. 20. [609.467] MEDICAL ASSISTANCE FRAUD.

Subdivision 1. Medical assistance fraud prohibited. A person who intentionally presents, submits, tenders, offers, or participates in the preparation of a claim for payment, claim for reimbursement, cost report, or rate application relating to the payment of medical assistance funds under chapter 256B knowing or having reason to know that any part of the claim, report, or application is false is guilty of medical assistance fraud and may be sentenced as provided in subdivision 2.

Subd. 2. Penalties. Whoever violates subdivision 1 may be sentenced as follows:

(1) to imprisonment of not more than 20 years, payment of a fine of not more than $100,000, or both if the part of any claim for payment, claim for reimbursement, cost report, or rate application submitted, tendered, or offered that is false is more than $35,000;

(2) to imprisonment of not more than ten years, payment of a fine of not more than $20,000, or both if:

(i) the part of any claim for payment, claim for reimbursement, cost report, or rate application submitted, tendered, or offered that is false is more than $5,000 but not more than $35,000; or

(ii) the part of any claim for payment, claim for reimbursement, cost report, or rate application submitted, tendered, or offered that is false is not more than $5,000 and the person has been convicted within the preceding five years for an offense under this section, section 256.98; 268.182; 609.24; 609.245; 609.247; 609.52; 609.522; 609.53; 609.582, subdivision 1, 2, or 3; 609.625; 609.63; 609.631; or 609.821, or a statute from another state, the United States, or a foreign jurisdiction, in conformity with any of those sections, and the person received a felony or gross misdemeanor sentence for the offense, or a sentence that was stayed under section 609.135 if the offense to which a plea was entered would allow imposition of a felony or gross misdemeanor sentence; or

(3) to imprisonment of not more than five years, payment of a fine of not more than $10,000, or both if the part of any claim for payment, claim for reimbursement, cost report, or rate application submitted, tendered, or offered that is false is not more than $5,000.

Subd. 3. Aggregation. The total of all claims for payment, claims for reimbursement, cost reports, and rate applications submitted, tendered, or offered in violation of subdivision 1 within any six-month period may be aggregated and the defendant charged accordingly in applying the provisions of subdivision 2. When the same person commits two or more offenses in two or more counties, the accused may be prosecuted for all of the offenses aggregated under this subdivision in any county in which one of the offenses was committed.

Subd. 4. Venue. Notwithstanding anything to the contrary in section 627.01, a violation of this section may be prosecuted in:

(1) the county where any part of the offense occurred; or

(2) the county where the entity who received a claim for payment, claim for reimbursement, cost report, or rate application is located.

EFFECTIVE DATE. This section is effective August 1, 2025, and applies to crimes committed on or after that date.

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Sec. 21. Minnesota Statutes 2024, section 609.52, subdivision 2, is amended to read:

Subd. 2. Acts constituting theft. (a) Whoever does any of the following commits theft and may be sentenced as provided in subdivision 3:

(1) intentionally and without claim of right takes, uses, transfers, conceals or retains possession of movable property of another without the other's consent and with intent to deprive the owner permanently of possession of the property; or

(2) with or without having a legal interest in movable property, intentionally and without consent, takes the property out of the possession of a pledgee or other person having a superior right of possession, with intent thereby to deprive the pledgee or other person permanently of the possession of the property; or

(3) obtains for the actor or another the possession, custody, or title to property of or performance of services by a third person by intentionally deceiving the third person with a false representation which is known to be false, made with intent to defraud, and which does defraud the person to whom it is made. "False representation" includes without limitation:

(i) the issuance of a check, draft, or order for the payment of money, except a forged check as defined in section 609.631, or the delivery of property knowing that the actor is not entitled to draw upon the drawee therefor or to order the payment or delivery thereof; or

(ii) a promise made with intent not to perform. Failure to perform is not evidence of intent not to perform unless corroborated by other substantial evidence; or

(iii) the preparation or filing of a claim for reimbursement, a rate application, or a cost report used to establish a rate or claim for payment for medical care provided to a recipient of medical assistance under chapter ~~256B, which intentionally and falsely states the costs of or actual services provided by a vendor of medical care; or~~

~~(iv)~~ (iii) the preparation or filing of a claim for reimbursement for providing treatment or supplies required to be furnished to an employee under section 176.135 which intentionally and falsely states the costs of or actual treatment or supplies provided; or

~~(v)~~ (iv) the preparation or filing of a claim for reimbursement for providing treatment or supplies required to be furnished to an employee under section 176.135 for treatment or supplies that the provider knew were medically unnecessary, inappropriate, or excessive; or

(4) by swindling, whether by artifice, trick, device, or any other means, obtains property or services from another person; or

(5) intentionally commits any of the acts listed in this subdivision but with intent to exercise temporary control only and:

(i) the control exercised manifests an indifference to the rights of the owner or the restoration of the property to the owner; or

(ii) the actor pledges or otherwise attempts to subject the property to an adverse claim; or

(iii) the actor intends to restore the property only on condition that the owner pay a reward or buy back or make other compensation; or

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(6) finds lost property and, knowing or having reasonable means of ascertaining the true owner, appropriates it to the finder's own use or to that of another not entitled thereto without first having made reasonable effort to find the owner and offer and surrender the property to the owner; or

(7) intentionally obtains property or services, offered upon the deposit of a sum of money or tokens in a coin or token operated machine or other receptacle, without making the required deposit or otherwise obtaining the consent of the owner; or

(8) intentionally and without claim of right converts any article representing a trade secret, knowing it to be such, to the actor's own use or that of another person or makes a copy of an article representing a trade secret, knowing it to be such, and intentionally and without claim of right converts the same to the actor's own use or that of another person. It shall be a complete defense to any prosecution under this clause for the defendant to show that information comprising the trade secret was rightfully known or available to the defendant from a source other than the owner of the trade secret; or

(9) leases or rents personal property under a written instrument and who:

(i) with intent to place the property beyond the control of the lessor conceals or aids or abets the concealment of the property or any part thereof; or

(ii) sells, conveys, or encumbers the property or any part thereof without the written consent of the lessor, without informing the person to whom the lessee sells, conveys, or encumbers that the same is subject to such lease or rental contract with intent to deprive the lessor of possession thereof; or

(iii) does not return the property to the lessor at the end of the lease or rental term, plus agreed-upon extensions, with intent to wrongfully deprive the lessor of possession of the property; or

(iv) returns the property to the lessor at the end of the lease or rental term, plus agreed-upon extensions, but does not pay the lease or rental charges agreed upon in the written instrument, with intent to wrongfully deprive the lessor of the agreed-upon charges.

For the purposes of items (iii) and (iv), the value of the property must be at least $100.

Evidence that a lessee used a false, fictitious, or not current name, address, or place of employment in obtaining the property or fails or refuses to return the property or pay the rental contract charges to lessor within five days after written demand for the return has been served personally in the manner provided for service of process of a civil action or sent by certified mail to the last known address of the lessee, whichever shall occur later, shall be evidence of intent to violate this clause. Service by certified mail shall be deemed to be complete upon deposit in the United States mail of such demand, postpaid and addressed to the person at the address for the person set forth in the lease or rental agreement, or, in the absence of the address, to the person's last known place of residence; or

(10) alters, removes, or obliterates numbers or symbols placed on movable property for purpose of identification by the owner or person who has legal custody or right to possession thereof with the intent to prevent identification, if the person who alters, removes, or obliterates the numbers or symbols is not the owner and does not have the permission of the owner to make the alteration, removal, or obliteration; or

(11) with the intent to prevent the identification of property involved, so as to deprive the rightful owner of possession thereof, alters or removes any permanent serial number, permanent distinguishing number or manufacturer's identification number on personal property or possesses, sells or buys any personal property knowing or having reason to know that the permanent serial number, permanent distinguishing number or manufacturer's identification number has been removed or altered; or

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(12) intentionally deprives another of a lawful charge for cable television service by:

(i) making or using or attempting to make or use an unauthorized external connection outside the individual dwelling unit whether physical, electrical, acoustical, inductive, or other connection; or by

(ii) attaching any unauthorized device to any cable, wire, microwave, or other component of a licensed cable communications system as defined in chapter 238. Nothing herein shall be construed to prohibit the electronic video rerecording of program material transmitted on the cable communications system by a subscriber for fair use as defined by Public Law 94-553, section 107; or

(13) except as provided in clauses (12) and (14), obtains the services of another with the intention of receiving those services without making the agreed or reasonably expected payment of money or other consideration; or

(14) intentionally deprives another of a lawful charge for telecommunications service by:

(i) making, using, or attempting to make or use an unauthorized connection whether physical, electrical, by wire, microwave, radio, or other means to a component of a local telecommunication system as provided in chapter 237; or

(ii) attaching an unauthorized device to a cable, wire, microwave, radio, or other component of a local telecommunication system as provided in chapter 237.

The existence of an unauthorized connection is prima facie evidence that the occupier of the premises:

(A) made or was aware of the connection; and

(B) was aware that the connection was unauthorized;

(15) with intent to defraud, diverts corporate property other than in accordance with general business purposes or for purposes other than those specified in the corporation's articles of incorporation; or

(16) with intent to defraud, authorizes or causes a corporation to make a distribution in violation of section 302A.551, or any other state law in conformity with it; or

(17) takes or drives a motor vehicle without the consent of the owner or an authorized agent of the owner, knowing or having reason to know that the owner or an authorized agent of the owner did not give consent; or

(18) intentionally, and without claim of right, takes motor fuel from a retailer without the retailer's consent and with intent to deprive the retailer permanently of possession of the fuel by driving a motor vehicle from the premises of the retailer without having paid for the fuel dispensed into the vehicle; or

(19) commits wage theft under subdivision 1, clause (13).

(b) Proof that the driver of a motor vehicle into which motor fuel was dispensed drove the vehicle from the premises of the retailer without having paid for the fuel permits the factfinder to infer that the driver acted intentionally and without claim of right, and that the driver intended to deprive the retailer permanently of possession of the fuel. This paragraph does not apply if: (1) payment has been made to the retailer within 30 days of the receipt of notice of nonpayment under section 604.15; or (2) a written notice as described in section 604.15, subdivision 4, disputing the retailer's claim, has been sent. This paragraph does not apply to the owner of a motor vehicle if the vehicle or the vehicle's license plate has been reported stolen before the theft of the fuel.

EFFECTIVE DATE. This section is effective August 1, 2025, and applies to crimes committed on or after that date.

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Sec. 22. Minnesota Statutes 2024, section 628.26, is amended to read:

628.26 LIMITATIONS.

(a) Indictments or complaints for any crime resulting in the death of the victim may be found or made at any time after the death of the person killed.

(b) Indictments or complaints for a violation of section 609.25 may be found or made at any time after the commission of the offense.

(c) Indictments or complaints for violation of section 609.282 may be found or made at any time after the commission of the offense if the victim was under the age of 18 at the time of the offense.

(d) Indictments or complaints for violation of section 609.282 where the victim was 18 years of age or older at the time of the offense, or 609.42, subdivision 1, clause (1) or (2), shall be found or made and filed in the proper court within six years after the commission of the offense.

(e) Indictments or complaints for violation of sections 609.322, 609.342 to 609.345, and 609.3458 may be found or made at any time after the commission of the offense.

(f) Indictments or complaints for violation of sections ~~609.466~~ 609.467 and 609.52, subdivision 2, paragraph (a), clause (3), item (iii), shall be found or made and filed in the proper court within six years after the commission of the offense.

(g) Indictments or complaints for violation of section 609.2335, 609.52, subdivision 2, paragraph (a), clause (3), items (i) and (ii), (4), (15), or (16), 609.631, or 609.821, where the value of the property or services stolen is more than $35,000, or for violation of section 609.527 where the offense involves eight or more direct victims or the total combined loss to the direct and indirect victims is more than $35,000, shall be found or made and filed in the proper court within five years after the commission of the offense.

(h) Except for violations relating to false material statements, representations or omissions, indictments or complaints for violations of section 609.671 shall be found or made and filed in the proper court within five years after the commission of the offense.

(i) Indictments or complaints for violation of sections 609.561 to 609.563, shall be found or made and filed in the proper court within five years after the commission of the offense.

(j) Indictments or complaints for violation of section 609.746 shall be found or made and filed in the proper court within the later of three years after the commission of the offense or three years after the offense was reported to law enforcement authorities.

(k) In all other cases, indictments or complaints shall be found or made and filed in the proper court within three years after the commission of the offense.

(l) The limitations periods contained in this section shall exclude any period of time during which the defendant was not an inhabitant of or usually resident within this state.

(m) The limitations periods contained in this section for an offense shall not include any period during which the alleged offender participated under a written agreement in a pretrial diversion program relating to that offense.

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(n) The limitations periods contained in this section shall not include any period of time during which physical evidence relating to the offense was undergoing DNA analysis, as defined in section 299C.155, unless the defendant demonstrates that the prosecuting or law enforcement agency purposefully delayed the DNA analysis process in order to gain an unfair advantage.

Sec. 23. OPEN POSITIONS REPORT.

The commissioner of management and budget must report the number of posted executive branch job openings that have gone unfilled for at least six months. The commissioner's report must identify such openings by agency and job title, and identify which specific job titles or classes take longest to fill on average and those that experience the most turnover. No later than February 1, 2026, August 1, 2026, and February 1, 2027, the commissioner must submit this report to the chairs and ranking minority members of the legislative committees with jurisdiction over state government finance and policy.

Sec. 24. INTEGRATING APPLICATION INFORMATION AND A REFERRAL PROCESS FOR THE TRANSIT ASSISTANCE PROGRAM ON THE MNBENEFITS WEB PORTAL.

No later than June 30, 2026, the commissioner of children, youth, and families, in consultation with Metro Transit and the commissioners of transportation, human services, and Minnesota IT Services, must integrate application information and a referral process for the transit assistance program administered by Metro Transit into the MNbenefits web portal. Metro Transit and the Metropolitan Council must continue to process applications for the transit assistance program after application information and a referral process are integrated into the MNbenefits web portal.

Sec. 25. STATUE REPLACEMENT.

The commissioner of administration may accept private funds, submit a request to the Joint Committee on the Library of Congress, and erect a new statue in Statuary Hall in the United States Capitol, including removing an existing statue from Statuary Hall and transporting it to Minnesota, recasting an existing statue in Minnesota, and transporting and installing the new statue in Statuary Hall. All money accepted by the commissioner under this section must be deposited in a dedicated account in the special revenue fund and is appropriated to the commissioner for purposes of this section. The account expires on January 1, 2028, with any money remaining in the account at that time appropriated to the State Arts Board for purposes of the programs and activities authorized under Minnesota Statutes, chapter 129D.

EFFECTIVE DATE. This section is effective the day after the chief clerk of the house of representatives and the secretary of the senate jointly notify the revisor of statutes and the commissioner of administration that the state has satisfied the requirements for a statue replacement request under United States Code, title 2, chapter 30, section 2132.

Sec. 26. REPEALER.

Subdivision 1. Employee gainsharing. Minnesota Statutes 2024, section 16A.90, is repealed.

Subd. 2. Advisory Council on Infrastructure. Minnesota Statutes 2024, sections 16B.356; 16B.357; 16B.358; and 16B.359, are repealed.

Subd. 3. CPA substantial equivalence. Minnesota Rules, part 1105.7900, item D, is repealed.

Subd. 4. Medical assistance fraud. Minnesota Statutes 2024, section 609.466, is repealed.

EFFECTIVE DATE. Subdivision 3 is effective the day following final enactment.

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ARTICLE 3

BUSINESS FILING FRAUD AND DECEPTIVE MAILINGS

Section 1. [5.60] LATE RENEWAL PENALTY.

Subdivision 1. Late penalty. The secretary of state may require a person to pay a late penalty of up to $25 when filing for renewal or reinstatement of a business entity that the secretary of state has dissolved, terminated, or revoked due to failure to file an annual renewal, or a business entity for which the secretary of state has canceled a certificate of authority. The secretary of state must deposit all late penalty revenue in the account created under subdivision 2. The late penalty is in addition to any other fee or assessment provided by law.

Subd. 2. Account; appropriation. The secretary of state fraud prevention and data security account is created in the special revenue fund. Money in the account is appropriated to the secretary of state to:

(1) fulfill statutory and constitutional duties regarding fraud prevention and data privacy and security, including but not limited to cyber security and the Minnesota Business Filing Fraud Prevention Act under sections 300.70 to 300.78;

(2) ensure the accuracy and completeness of documents that are permitted or required under law to be filed with the secretary of state; and

(3) enhance the secretary of state's information and telecommunications technology systems and services.

Subd. 3. Annual report. By February 15 each year, the secretary of state must submit a report identifying the amount of revenue collected and outcomes achieved under this section to the chairs and ranking minority members of the legislative committees with jurisdiction over state government finance and policy.

EFFECTIVE DATE. This section is effective July 1, 2025, and applies to renewal or reinstatement applications submitted on or after that date.

Sec. 2. Minnesota Statutes 2024, section 13.485, subdivision 1, is amended to read:

Subdivision 1. Scope. The sections referred to in subdivisions 3 to 6 7 are codified outside this chapter. Those sections classify corporation data as other than public, place restrictions on access to government data, or involve data sharing.

Sec. 3. Minnesota Statutes 2024, section 13.485, is amended by adding a subdivision to read:

Subd. 7. Business fraud investigations. Government data related to investigations under sections 300.70 to 300.78 are governed by section 300.78.

Sec. 4. [300.70] CITATION AND DEFINITIONS.

Subdivision 1. Citation. Sections 300.70 to 300.78 may be cited as the "Minnesota Business Filing Fraud Prevention Act."

Subd. 2. Definitions. (a) For purposes of sections 300.70 to 300.78, the following terms have the meanings given.

(b) "Complainant" means a person who (1) delivers a declaration of wrongful filing, and (2) has a connection to the allegedly wrongful filing or the related business.

(d) "Office" means the Office of the Secretary of State.

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Sec. 5. [300.71] DECLARATION OF WRONGFUL FILING.

Subdivision 1. Form and contents of declaration. (a) A complainant may deliver a declaration of wrongful filing to the office if the complainant believes that a document filed under chapters 301 to 323A:

(1) was not authorized to be filed; and

(2) was filed with the intent to: (i) modify the ownership, registered agent, business address, contact information, governance, or other information of a business on record; or (ii) register a business using another person's name, address, or identity.

(b) A declaration of wrongful filing must include:

(1) the file number of the allegedly wrongful filing;

(2) the complainant's name, mailing address, and email address;

(3) whether the complainant is employed by or has an ownership interest in the business that is the subject of the filing;

(4) any information or evidence supporting the complainant's allegations under this section;

(5) a statement verifying the complainant believes in good faith that the facts stated in the declaration are true; and

(6) any other information the office deems necessary.

(c) The office must provide a form for declarations filed under this section. A complainant must use the provided form when submitting a declaration of wrongful filing.

(d) A false material statement of fact in a declaration of wrongful filing or any other document submitted under sections 300.70 to 300.78 is a violation of section 609.48.

Subd. 2. Review of declaration. (a) The office must promptly accept or reject a declaration of wrongful filing.

(b) The office may reject a declaration of wrongful filing that is incomplete or does not use the provided form or if the office reasonably believes it was delivered with the intent to harass or defraud the filer. The office may reject a declaration of wrongful filing if the office has already issued a final order on the filing identified in the declaration.

Subd. 3. Nonexclusive remedy. The remedy in sections 300.70 to 300.78 is not exclusive. An aggrieved party may seek district court action regardless of whether the individual has initiated or completed the procedure described in these sections.

Sec. 6. [300.72] NOTICE.

(a) When the office accepts a declaration of wrongful filing, the office must provide notice of the declaration to the complainant and the filer. The notice must describe the allegations made in the declaration and the process used to resolve the allegations. The notice must prominently state the response timeline in section 300.73 and the consequences if the filer does not respond. The notice must prominently state that a false statement of material fact in any documents submitted under sections 300.70 to 300.78 is a violation of section 609.48.

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(b) The office must send the notice by first class mail, postage prepaid, to:

(1) the complainant at the mailing address provided in the declaration; and

(2) the filer at:

(i) the most recent registered business address associated with the filing named in the declaration; or

(ii) if a mailing address for the filer cannot be identified, the notice may be served on the filer as provided under section 5.25, subdivision 6.

(d) If the notice to the filer is returned as undeliverable, the office may deem the filing fraudulent and immediately issue a final order as provided under section 300.76, notwithstanding the time period under section 300.73.

Sec. 7. [300.73] RESPONSE.

(a) After notice is received, the filer must respond in writing to the allegations in the declaration. The response must be received by the office within 21 calendar days of receipt of the notice.

(b) The filer's response under this section must include any information refuting the allegations contained in the complainant's declaration.

Sec. 8. [300.74] PROCEDURE WHEN NO RESPONSE RECEIVED.

If the filer does not respond within the time period under section 300.73, the office must deem the filing fraudulent and issue a final order as provided under section 300.76.

Sec. 9. [300.75] PROCEDURE WHEN RESPONSE RECEIVED.

Subdivision 1. Preliminary determination. (a) If the filer responds within the period under section 300.73, the office must further investigate the allegations in the declaration and information in the response and make a preliminary determination regarding whether the filing named in the declaration is fraudulent.

(b) The office may request additional information from the complainant and the filer if necessary to make the preliminary determination.

Subd. 2. Notice of preliminary determination. The office must send notice of the preliminary determination to the complainant and the filer in the manner described under section 300.72. Notice is deemed received in the manner described under section 300.72.

Subd. 3. Response. After notice is received, the nonprevailing party must respond to the preliminary determination within ten calendar days with additional information or evidence in support of the nonprevailing party's position. The prevailing party may send additional information or evidence within the same time period. The response must be received by the office within the time period provided under this subdivision.

Subd. 4. Procedure if no second response is received. If the nonprevailing party does not respond as required under subdivision 3, the preliminary determination becomes final and the office must issue a final order under section 300.76.

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Subd. 5. Procedure if second response is received. If the nonprevailing party responds as required under subdivision 3, the office must consider the additional information provided, make a final determination regarding whether the filing named in the declaration is fraudulent, and issue a final order under section 300.76.

Subd. 6. Factors. When making a preliminary or final determination under this section, the office may consider various factors, including but not limited to:

(1) whether the office has previously received declarations of wrongful filing or issued final orders relating to the business, the filer, or the complainant;

(2) the previous filing history relating to the business, the filer, or the complainant;

(3) whether the filer or complainant failed to respond to a request for additional information; and

(4) whether the office is able to independently verify the information provided by the filer or complainant using publicly available information.

Sec. 10. [300.76] FINAL ORDER.

Subdivision 1. Filings deemed fraudulent. (a) If the office deems a filing fraudulent under section 300.74 or 300.75, the office must issue a final order under this subdivision. The final order must provide the office's rationale for deeming the filing fraudulent.

(b) When a filing is deemed fraudulent pursuant to a final order under this subdivision, the filing must be treated for legal purposes as if the filing never existed. In the case of a business registered using a Minnesota resident's name, address, or identity without the resident's authorization, the business is deemed dissolved.

(1) mark the unauthorized filing or the business record as unauthorized or fraudulent;

(2) redact names and addresses that were used without authorization; and

(3) retain a copy of the final order.

(d) In addition to the actions in paragraph (c), the office may:

(1) disable additional filing functionality on the business entity's record; or

(2) take other action the office deems necessary to prevent further unauthorized filings, protect private information, or prevent misuse of unauthorized information.

Subd. 2. Filings deemed not fraudulent or insufficient evidence. If the office determines that a filing is not fraudulent or that insufficient information is available to make a determination, the office must issue a final order stating that the office is not removing the filing from the database. The final order must provide the office's rationale for determining that the filing is not fraudulent or that insufficient information is available to make a determination.

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Sec. 11. [300.77] JUDICIAL REVIEW.

(a) Any party who is aggrieved by a final order under section 300.76 may appeal the order to the district court of the Minnesota county where the business that is the subject of the final order is registered or was registered before the business's dissolution or, if the business is not registered in Minnesota, to the district court of Ramsey County. The aggrieved party may also appeal the final order as part of any district court action between the filer and complainant where the filing at issue is relevant to the issues in the case.

(b) The aggrieved party must serve a written copy of a notice of appeal upon the office and any adverse party of record within 30 calendar days after the date the final order was issued and must also file the original notice and proof of service with the court administrator of the district court. Service may be made in person or by mail. Service by mail is complete upon mailing. The court administrator is prohibited from requiring a filing fee for appeals taken pursuant to this section.

(d) The court may order that the office furnish the court and all parties to the proceedings with a copy of the decision, the filing that is the subject of the decision, and any materials or information submitted to the office. Any materials provided under this section that are filed with the court must be done so under restricted access unless the court orders otherwise.

(e) A party may obtain a hearing at a special term of the district court by serving a written notice of the hearing's time and place at least ten days before the date of the hearing.

(f) A party aggrieved by the order of the district court may appeal the order as in other civil cases. Costs or disbursements must not be taxed against a party. A filing fee or bond must not be required of a party.

Sec. 12. [300.78] DATA PRACTICES.

Subdivision 1. Definitions. For purposes of this section, "nonpublic data" has the meaning given in section 13.02, subdivision 9, and "private data on individuals" has the meaning given in section 13.02, subdivision 12.

Subd. 2. Data classification. Data submitted by a complainant or filer under sections 300.70 to 300.78 is classified as nonpublic data or private data on individuals. A final order under section 300.76 is public data, subject to the following: the complainant or filer's personal contact information is classified as private data on individuals. The unredacted version of a filing deemed fraudulent pursuant to a final order under section 300.76, subdivision 1, is classified as nonpublic data or private data on individuals. The version of the filing that has been redacted pursuant to section 300.76, subdivision 1, paragraph (c), is classified as public data.

Subd. 3. Dissemination permitted. Notwithstanding subdivision 2, the office may disseminate data of any classification collected, created, or maintained under sections 300.70 to 300.78:

(1) to the attorney general to aid the office in the investigation and review of a filing that is the subject of a declaration of wrongful filing;

(2) to a person or agency if the office determines that access to the data aids a criminal or civil investigation; or

(3) if required or authorized by a court order or other state or federal law.

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Sec. 13. [300.79] PROHIBITION ON DECEPTIVE BUSINESS MAILINGS.

Subdivision 1. Definition. For purposes of this section, "solicitation" means a communication that is sent by a nongovernment third party to a business and that purports to:

(1) notify the business of an operating requirement, including but not limited to filing documents with or retrieving documents from the Office of the Secretary of State; or

(2) offer a service that relates to filing documents with, producing documents for, or reporting information to the Office of the Secretary of State.

Subd. 2. Design and content requirements. (a) A solicitation must:

(1) include a clear statement indicating that the solicitation is an advertisement and is not from a government agency. The statement must be placed at the top of a physical document or the beginning of an electronic communication and must be in at least 24-point font. All other text in the document must be smaller than the statement required by this clause;

(2) provide information indicating where an individual is able to directly file documents with the secretary of state or retrieve copies of public records;

(3) disclose the name and physical address of the company sending the solicitation. The physical address must not be a post office box; and

(4) for a mailed solicitation, prominently display in capital letters on the envelope or outer wrapper the words "THIS IS NOT A GOVERNMENT DOCUMENT."

(b) The overall design and language of a solicitation must not:

(1) create the impression that the solicitation is an official government notice or document;

(2) incorporate the Minnesota state seal or other logo or branding of the state or any state agency; or

(3) indicate or imply a legal duty to act on the solicitation or a penalty for failure to act on the solicitation.

Subd. 3. Penalties. (a) A person who sends a solicitation that does not comply with the requirements of this section is guilty of a misdemeanor.

(b) A violation of this section is a violation of sections 325D.43 to 325D.48.

Sec. 14. Minnesota Statutes 2024, section 609.48, subdivision 1, is amended to read:

Subdivision 1. Acts constituting. Whoever makes a false material statement not believing it to be true in any of the following cases is guilty of perjury and may be sentenced as provided in subdivision 4:

(1) in or for an action, hearing or proceeding of any kind in which the statement is required or authorized by law to be made under oath or affirmation;

(2) in any writing which is required or authorized by law to be under oath or affirmation;

(3) in any writing made according to section 358.115;

(4) in any writing made according to section 358.116; or

(5) in any writing made according to sections 300.70 to 300.78; or

(6) in any other case in which the penalties for perjury are imposed by law and no specific sentence is otherwise provided.

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Sec. 15. RULEMAKING.

The secretary of state may adopt rules to carry out the provisions of this article. Notwithstanding Minnesota Statutes, section 14.125, no time limit applies to the authority granted under this section.

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

Sec. 16. EFFECTIVE DATE.

Sections 2 to 12 and 14 are effective for filings made on or after January 1, 2026."

Delete the title and insert:

"A bill for an act relating to government operations; establishing a biennial budget; appropriating money for the legislature, certain constitutional offices and state agencies, Minnesota Historical Society, Minnesota Humanities Center, State Lottery, retirement plans, general contingent account, and tort claims; authorizing an increase in certain legislative positions; establishing a Healthy Aging Subcabinet; modifying education requirements and mobility for public accountants; modifying an advanced deposit wagering fee; modifying lottery retailer contracting requirements; modifying provisions governing Medicaid fraud; granting the attorney general certain subpoena and enforcement authority; providing criminal penalties; authorizing statue replacement; establishing a process for fraudulent business filing removal; authorizing rulemaking; requiring reports; amending Minnesota Statutes 2024, sections 3.099, subdivision 3; 3.971, by adding a subdivision; 3.98, subdivisions 1, 3; 8.16, subdivision 1; 11A.07, subdivisions 4, 4b; 13.485, subdivision 1, by adding a subdivision; 16A.057, subdivision 5; 240.131, subdivision 7; 256B.12; 326A.03, subdivision 6, by adding subdivisions; 326A.14; 349A.01, by adding a subdivision; 349A.06, subdivisions 2, 4, 11; 609.48, subdivision 1; 609.52, subdivision 2; 628.26; Laws 2023, chapter 62, article 1, sections 11, subdivision 2; 47; Laws 2024, chapter 127, article 67, section 6; proposing coding for new law in Minnesota Statutes, chapters 4; 5; 300; 609; repealing Minnesota Statutes 2024, sections 16A.90; 16B.356; 16B.357; 16B.358; 16B.359; 609.466; Minnesota Rules, part 1105.7900, item D."

With the recommendation that when so amended the bill be re-referred to the Committee on Ways and Means.

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. No. 2446 was read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Greene; Johnson, P.; Witte and Stier introduced:

H. F. No. 3220, A bill for an act relating to education finance; providing grants to schools for law enforcement entry devices; canceling the unused portion of an appropriation; appropriating money.

The bill was read for the first time and referred to the Committee on Education Finance.

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Sencer-Mura and Mueller introduced:

H. F. No. 3221, A bill for an act relating to education; establishing a legislative study group to study graduation requirements; requiring reports; appropriating money.

The bill was read for the first time and referred to the Committee on Education Policy.

Coulter; Klevorn; Hanson, J., and Wolgamott introduced:

H. F. No. 3222, A bill for an act relating to higher education; making for-profit institutions ineligible for the state grant program; amending Minnesota Statutes 2024, section 136A.121, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Higher Education Finance and Policy.

Gottfried introduced:

H. F. No. 3223, A bill for an act relating to children; appropriating money for food assistance.

The bill was read for the first time and referred to the Committee on Children and Families Finance and Policy.

Dotseth introduced:

H. F. No. 3224, A bill for an act relating to capital investment; appropriating money for residential substance abuse facilities in Carlton County; authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Capital Investment.

MESSAGES FROM THE SENATE

The following messages were received from the Senate:

Madam Speaker:

I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:

H. F. No. 124, A bill for an act relating to public safety; allowing for the acceptance of certain gifts related to a line of duty death of a public safety officer; authorizing local government expenditure for public safety officer killed in the line of duty; amending Minnesota Statutes 2024, section 471.198; proposing coding for new law in Minnesota Statutes, chapter 299A.

Michael r. linn, First Assistant Secretary of the Senate

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CONCURRENCE AND REPASSAGE

Berg moved that the House concur in the Senate amendments to H. F. No. 124 and that the bill be repassed as amended by the Senate. The motion prevailed.

H. F. No. 124, A bill for an act relating to public safety; allowing for the acceptance of certain gifts related to a line of duty death of a public safety officer; authorizing local government expenditure for public safety officer killed in the line of duty; requiring a report; amending Minnesota Statutes 2024, section 471.198; proposing coding for new law in Minnesota Statutes, chapter 299A.

The bill was read for the third time, as amended by the Senate, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called. There were 134 yeas and 0 nays as follows:

Those who voted in the affirmative were: