1.1 	A bill for an act
1.2 	relating to the operation of state government; providing funding for the legislature, 
1.3 	constitutional officers, and other agencies, boards, councils, commissions, and 
1.4 	state entities; changing certain government programs; changing requirement for 
1.5 	targeted group business; changing licensing provisions for pari-mutuel horse 
1.6 	racing; changing the monthly regulatory fee for lawful gambling; specifying 
1.7 	additional uses for the "Support Our Troops Fund"; appropriating money;
1.8 	amending Minnesota Statutes 2014, sections 14.365; 16A.28, subdivision 1; 
1.9 	16C.16, subdivision 2, by adding a subdivision; 16C.19; 161.1419, subdivision 
1.10 	8; 190.19, subdivision 2a; 240.08, subdivision 4; 240.10; 349.16, subdivision 6a; 
1.11 	Laws 2013, chapter 142, article 1, section 10; Laws 2014, chapter 287, section 25.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	ARTICLE 1
1.14 	STATE GOVERNMENT APPROPRIATIONS

1.15	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 	
1.16 	The sums shown in the columns marked "Appropriations" are appropriated to the 
1.17 	agencies and for the purposes specified in this article. The appropriations are from the 
1.18 	general fund, or another named fund, and are available for the fiscal years indicated 
1.19 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
1.20 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
1.21 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
1.22 	year 2017. "The biennium" is fiscal years 2016 and 2017.

1.23				APPROPRIATIONS
	
1.24				Available for the Year
	
1.25				Ending June 30
	
1.26					2016
		2017

1.27	Sec. 2. LEGISLATURE

2.1	Subdivision 1.Total Appropriation
 	$	
74,774,000
	$	
78,969,000

2.2	Appropriations by Fund
	
2.3		2016
	2017
	
2.4	General	
74,646,000	
78,841,000
	
2.5	Health Care Access
	128,000
	128,000
	
2.6 	The amounts that may be spent for each 
2.7 	purpose are specified in the following 
2.8 	subdivisions.

2.9	Subd. 2.Senate
 		27,223,000
		30,943,000

2.10	Subd. 3.House of Representatives
 		30,524,000
		30,524,000
	
2.11 	During the biennium ending June 30, 2017, 
2.12 	any revenues received by the house of 
2.13 	representatives from voluntary donations 
2.14 	to support broadcast or print media are 
2.15 	appropriated to the house of representatives.

2.16	Subd. 4.Legislative Coordinating Commission 		
17,027,000		
17,502,000

2.17	Appropriations by Fund
	
2.18	General	
16,899,000	
17,374,000
	
2.19	Health Care Access 
	128,000
	128,000
	
2.20 	$380,000 the first year and $855,000 the 
2.21 	second year are from the general fund 
2.22 	for transfer to the Office of the Revisor 
2.23 	of Statutes to develop and maintain a 
2.24 	Web-based rulemaking system. The base 
2.25 	in fiscal year 2018 and fiscal year 2019 is 
2.26 	$430,000 from the general fund for transfer 
2.27 	to the Office of the Revisor of Statutes.

2.28
2.29	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,615,000
	$
	3,616,000
	
2.30 	(a) This appropriation is to fund the Office of 
2.31 	the Governor and Lieutenant Governor.
2.32 	(b) $19,000 the first year and $19,000 the 
2.33 	second year are for necessary expenses in 
3.1 	the normal performance of the governor's 
3.2 	and lieutenant governor's duties for which no 
3.3 	other reimbursement is provided.
3.4 	(c) By September 1 of each year, the 
3.5 	commissioner of management and budget 
3.6 	shall report to the chairs and ranking 
3.7 	minority members of the senate State 
3.8 	Government Innovation and Veterans Affairs 
3.9 	Committee and the house of representatives 
3.10 	State Government Finance Committee any 
3.11 	personnel costs incurred by the Offices of the 
3.12 	Governor and Lieutenant Governor that were 
3.13 	supported by appropriations to other agencies 
3.14 	during the previous fiscal year. The Office 
3.15 	of the Governor shall inform the chairs and 
3.16 	ranking minority members of the committees 
3.17 	before initiating any interagency agreements.

3.18	Sec. 4. STATE AUDITOR
 	$
	2,437,000
	$
	2,333,000
	
3.19 	$150,000 from the general fund is for an 
3.20 	infrastructure stress study. This is a onetime 
3.21 	appropriation and may be used in either year 
3.22 	of the biennium.

3.23	Sec. 5. ATTORNEY GENERAL
 	$
	24,342,000
	$
	24,342,000

3.24	Appropriations by Fund
	
3.25		2016
	2017
	
3.26	General
	22,125,000
	22,125,000
	
3.27
3.28	State Government 
Special Revenue
	1,822,000
	1,822,000
	
3.29	Environmental
	145,000
	145,000
	
3.30	Remediation
	250,000
	250,000

3.31	Sec. 6. SECRETARY OF STATE
 	$
	6,631,000
	$
	6,631,000
	
3.32 	Any funds available in the account 
3.33 	established in Minnesota Statutes, section 
3.34 	5.30, pursuant to the Help America Vote Act, 
4.1 	are appropriated for the purposes and uses 
4.2 	authorized by federal law.

4.3
4.4	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	1,014,000
	$
	1,028,000

4.5	Sec. 8. INVESTMENT BOARD
 	$
	139,000
	$
	139,000

4.6	Sec. 9. ADMINISTRATIVE HEARINGS
 	$
	7,695,000
	$
	7,568,000

4.7	Appropriations by Fund
	
4.8		2016
	2017
	
4.9	General
	445,000
	318,000
	
4.10
4.11	Workers' 
Compensation
	7,250,000
	7,250,000
	
4.12 	(a) $50,000 in fiscal year 2016 and $50,000 
4.13 	in fiscal year 2017 are appropriated from the 
4.14 	general fund to the Office of Administrative 
4.15 	Hearings for the cost of considering 
4.16 	complaints of unfair campaign practices 
4.17 	filed under Minnesota Statutes, section 
4.18 	211B.32. These amounts may be used in 
4.19 	either year of the biennium. $50,000 is added 
4.20 	to the agency's base to be available for the 
4.21 	biennium.
4.22 	(b) $6,000 in fiscal year 2016 and $6,000 in 
4.23 	fiscal year 2017 are appropriated from the 
4.24 	general fund to the Office of Administrative 
4.25 	Hearings for the cost of considering data 
4.26 	practices complaints filed under Minnesota 
4.27 	Statutes, section 13.085. These amounts 
4.28 	may be used in either year of the biennium. 
4.29 	$6,000 is added to the agency's base to be 
4.30 	available for the biennium.
4.31 	(c) $130,000 the first year is appropriated 
4.32 	from the general fund for the cost of 
4.33 	considering complaints filed under 
4.34 	Minnesota Statutes, section 211B.32. Any 
5.1 	amount of this appropriation that remains 
5.2 	unspent at the end of the biennium must be 
5.3 	canceled to the general account of the state 
5.4 	elections campaign fund. The base for fiscal 
5.5 	year 2018 is $130,000 to be available for the 
5.6 	biennium under the same terms.

5.7	Sec. 10. OFFICE OF MN.IT SERVICES
 	$
	2,526,000
	$
	2,622,000
	
5.8 	The commissioner of management and 
5.9 	budget is authorized to provide cash flow 
5.10 	assistance of up to $110,000,000 from the 
5.11 	special revenue fund or other statutory 
5.12 	general funds as defined in Minnesota 
5.13 	Statutes, section 16A.671, subdivision 
5.14 	3, paragraph (a), to the Office of MN.IT 
5.15 	Services for the purpose of managing 
5.16 	revenue and expenditure differences during 
5.17 	the initial phases of IT consolidation. These 
5.18 	funds shall be repaid with interest by the end 
5.19 	of the fiscal year 2017 closing period.

5.20	Sec. 11. ADMINISTRATION

5.21	Subdivision 1.Total Appropriation
 	$
	23,933,000
	$
	22,673,000
	
5.22 	The amounts that may be spent for each 
5.23 	purpose are specified in the following 
5.24 	subdivisions.

5.25	Subd. 2.Government and Citizen Services
 		9,801,000
		8,927,000
	
5.26 	$74,000 the first year and $74,000 the second 
5.27 	year are for the Council on Developmental 
5.28 	Disabilities.
5.29 	$735,000 the first year and $65,000 the 
5.30 	second year are to conduct a disparity study 
5.31 	required under Minnesota Statutes, section 
5.32 	16C.16, subdivision 5. This is a onetime 
5.33 	appropriation.
6.1 	$392,000 the first year and $383,000 the 
6.2 	second year are for the expansion of financial 
6.3 	management and human resources services 
6.4 	to small agencies, boards, and councils.

6.5	Subd. 3.Administrative Management Support
 		1,975,000
		2,009,000

6.6	Subd. 4.Fiscal Agent
 		12,157,000
		11,737,000
	
6.7 	The appropriations under this section are to 
6.8 	the commissioner of administration for the 
6.9 	purposes specified.
6.10 	In Lieu of Rent. $8,158,000 the first year 
6.11 	and $8,158,000 the second year are for 
6.12 	office space costs of the legislature and 
6.13 	veterans organizations, ceremonial space, 
6.14 	and statutorily free space.
6.15 	Public Broadcasting. (a) $1,550,000 the 
6.16 	first year and $1,550,000 the second year are 
6.17 	for matching grants for public television.
6.18 	(b) $250,000 the first year and $250,000 
6.19 	the second year are for public television 
6.20 	equipment grants. Equipment or matching 
6.21 	grant allocations shall be made after 
6.22 	considering the recommendations of the 
6.23 	Minnesota Public Television Association.
6.24 	(c) $392,000 the first year and $392,000 the 
6.25 	second year are for community service grants 
6.26 	to public educational radio stations. This 
6.27 	appropriation may be used to disseminate 
6.28 	emergency information in foreign languages.
6.29 	(d) $117,000 the first year and $117,000 
6.30 	the second year are for equipment grants 
6.31 	to public educational radio stations. This 
6.32 	appropriation may be used for the repair, 
6.33 	rental, and purchase of equipment including 
6.34 	equipment under $500.
7.1 	(e) The grants in paragraphs (c) and (d) 
7.2 	must be allocated after considering the 
7.3 	recommendations of the Association of 
7.4 	Minnesota Public Educational Radio Stations 
7.5 	under Minnesota Statutes, section 129D.14.
7.6 	(f) $310,000 the first year and $310,000 
7.7 	the second year are for equipment grants 
7.8 	to Minnesota Public Radio, Inc., including 
7.9 	upgrades to Minnesota's Emergency Alert 
7.10 	and AMBER Alert Systems.
7.11 	(g) Any unencumbered balance remaining 
7.12 	the first year for grants to public television or 
7.13 	radio stations does not cancel and is available 
7.14 	for the second year.

7.15
7.16
7.17	Sec. 12. CAPITOL AREA 
ARCHITECTURAL AND PLANNING 
BOARD
 	$
	340,000
	$
	345,000

7.18
7.19	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	23,777,000
	$
	26,069,000	

7.20 	$2,000,000 in fiscal year 2016 and 
7.21 	$4,000,000 in fiscal year 2017 is to maintain 
7.22 	and upgrade statewide business systems, 
7.23 	including, but not limited to, the statewide 
7.24 	accounting system, the human resource and 
7.25 	payroll system, the employment application 
7.26 	system, the enterprise learning management 
7.27 	system, the budget planning and analysis 
7.28 	system, the fiscal note tracking system, and 
7.29 	capital budget system.

7.30	Sec. 14. REVENUE

7.31	Subdivision 1.Total Appropriation
 	$
	146,438,000
	$
	147,092,000

7.32	Appropriations by Fund
	
7.33		2016
	2017
	
7.34	General
	142,203,000
	142,857,000
	
8.1	Health Care Access
	1,749,000
	1,749,000
	
8.2
8.3	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
8.4	Environmental
	303,000
	303,000

8.5	Subd. 2.Tax System Management
 		117,822,000
		118,476,000

8.6	Appropriations by Fund
	
8.7	General
	113,587,000
	114,241,000
	
8.8	Health Care Access
	1,749,000
	1,749,000
	
8.98.10
	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
8.11	Environmental
	303,000
	303,000
	
8.12 	Appropriation; Taxpayer Assistance. (a) 
8.13 	$400,000 in fiscal year 2016 and $400,000 
8.14 	in fiscal year 2017 from the general fund 
8.15 	are for grants to one or more nonprofit 
8.16 	organizations, qualifying under section 
8.17 	501(c)(3) of the Internal Revenue Code of 
8.18 	1986, to coordinate, facilitate, encourage, and 
8.19 	aid in the provision of taxpayer assistance 
8.20 	services. The unencumbered balance in the 
8.21 	first year does not cancel but is available for 
8.22 	the second year.
8.23 	(b) For purposes of this appropriation, 
8.24 	"taxpayer assistance services" means 
8.25 	accounting and tax preparation services 
8.26 	provided by volunteers to low-income, 
8.27 	elderly, and disadvantaged Minnesota 
8.28 	residents to help them file federal and state 
8.29 	income tax returns, Minnesota property 
8.30 	tax refund claims, and to provide personal 
8.31 	representation before the Department of 
8.32 	Revenue and Internal Revenue Service.

8.33	Subd. 3.Debt Collection Management
 		28,616,000
		28,616,000

8.34	Sec. 15. GAMBLING CONTROL
 	$
	3,260,000
	$
	3,324,000
	
9.1 	These appropriations are from the lawful 
9.2 	gambling regulation account in the special 
9.3 	revenue fund.

9.4	Sec. 16. RACING COMMISSION
 	$
	1,168,000
	$
	1,153,000

9.5	Appropriations by Fund
	
9.6		2016
	2017
	
9.7	General
	269,000
	72,000
	
9.8
9.9	Special Revenue 
Fund
	899,000
	1,081,000
	
9.10 	The general fund appropriation is for fiscal 
9.11 	years 2016 and 2017 only.
9.12 	The appropriations from the special revenue 
9.13 	fund are from the racing and card playing 
9.14 	regulation accounts. The funding base for 
9.15 	the special revenue fund appropriation is 
9.16 	$972,000 in fiscal year 2018 and $971,000 in 
9.17 	fiscal year 2019.
9.18 	The racing commission is directed to work 
9.19 	in consultation with the racing industry 
9.20 	to propose permanent dedicated funding 
9.21 	changes to fully support the operations of 
9.22 	the commission to ensure that racing is 
9.23 	conducted in the public interest. These 
9.24 	changes shall be reported to the Office 
9.25 	of the Governor and to the majority and 
9.26 	minority leadership of the relevant legislative 
9.27 	committees by November 1, 2015.

9.28	Sec. 17. STATE LOTTERY
 					
9.29 	Notwithstanding Minnesota Statutes, section 
9.30 	349A.10, subdivision 3, the operating budget 
9.31 	must not exceed $31,000,000 in fiscal year 
9.32 	2016 and $31,000,000 in fiscal year 2017.

9.33	Sec. 18. AMATEUR SPORTS COMMISSION
 	$
	300,000
	$
	300,000

10.1
10.2	Sec. 19. COUNCIL ON BLACK 
MINNESOTANS
 	$
	396,000
	$
	401,000

10.3
10.4	Sec. 20. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	359,000
	$
	364,000

10.5
10.6	Sec. 21. COUNCIL ON AFFAIRS OF 
CHICANO/LATINO PEOPLE
 	$
	381,000
	$
	386,000

10.7	Sec. 22. INDIAN AFFAIRS COUNCIL
 	$
	569,000
	$
	576,000

10.8
10.9	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

10.10	Subdivision 1.Total Appropriation
 	$
	21,964,000
	$
	22,076,000
	
10.11 	The amounts that may be spent for each 
10.12 	purpose are specified in the following 
10.13 	subdivisions.

10.14	Subd. 2.Operations and Programs
 		21,576,000
		21,822,000
	
10.15 	Notwithstanding Minnesota Statutes, section 
10.16 	138.668, the Minnesota Historical Society 
10.17 	may not charge a fee for its general tours at 
10.18 	the Capitol, but may charge fees for special 
10.19 	programs other than general tours.

10.20	Subd. 3.Fiscal Agent

10.21	(a) Minnesota International Center
		39,000
		39,000

10.22	(b) Minnesota Air National Guard Museum
		34,000
		-0-

10.23	(c) Minnesota Military Museum
		100,000
		-0-

10.24	(d) Farmamerica
		115,000
		115,000

10.25	(e) Hockey Hall of Fame
		100,000
		100,000
	
10.26 	Balances Forward. Any unencumbered 
10.27 	balance remaining in this subdivision the first 
10.28 	year does not cancel but is available for the 
10.29 	second year of the biennium.

10.30	Sec. 24. BOARD OF THE ARTS

11.1	Subdivision 1.Total Appropriation
 	$
	7,522,000
	$
	7,530,000
	
11.2 	The amounts that may be spent for each 
11.3 	purpose are specified in the following 
11.4 	subdivisions.

11.5	Subd. 2.Operations and Services
 		583,000
		591,000

11.6	Subd. 3.Grants Program
 		4,800,000
		4,800,000

11.7	Subd. 4.Regional Arts Councils
 		2,139,000
		2,139,000
	
11.8 	Unencumbered balance available. Any 
11.9 	unencumbered balance remaining in this 
11.10 	section the first year does not cancel, but is 
11.11 	available for the second year of the biennium.

11.12
11.13	Sec. 25. MINNESOTA HUMANITIES 
CENTER
 	$
	251,000
	$
	251,000

11.14
11.15	Sec. 26. SCIENCE MUSEUM OF 
MINNESOTA
 	$
	1,079,000
	$
	1,079,000

11.16
11.17	Sec. 27. GENERAL CONTINGENT 
ACCOUNTS
 	$
	1,000,000
	$
	500,000

11.18	Appropriations by Fund
	
11.19		2016
	2017
	
11.20	General
	500,000
	-0-
	
11.21
11.22	State Government 
Special Revenue
	400,000
	400,000
	
11.23
11.24	Workers' 
Compensation
	100,000
	100,000
	
11.25 	(a) The appropriations in this section 
11.26 	may only be spent with the approval of 
11.27 	the governor after consultation with the 
11.28 	Legislative Advisory Commission pursuant 
11.29 	to Minnesota Statutes, section 3.30.
11.30 	(b) If an appropriation in this section for 
11.31 	either year is insufficient, the appropriation 
11.32 	for the other year is available for it.
12.1 	(c) If a contingent account appropriation 
12.2 	is made in one fiscal year, it should be 
12.3 	considered a biennial appropriation.

12.4	Sec. 28. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
12.5 	These appropriations are to be spent by the 
12.6 	commissioner of management and budget 
12.7 	according to Minnesota Statutes, section 
12.8 	3.736, subdivision 7. If the appropriation for 
12.9 	either year is insufficient, the appropriation 
12.10 	for the other year is available for it.

12.11
12.12	Sec. 29. MINNESOTA STATE RETIREMENT 
SYSTEM

12.13	Total Appropriation
 	$
	5,642,000
	$
	8,953,000
	
12.14 	The amounts are to be spent for the 
12.15 	Consolidated Legislators and Constitutional 
12.16 	Officers Retirement.

12.17
12.18	Sec. 30. PUBLIC EMPLOYEES 
RETIREMENT ASSOCIATION
 	$
	24,000,000
	$
	24,000,000
	
12.19 	These amounts are relating to the merged 
12.20 	former MERF division and estimated to be 
12.21 	needed under Minnesota Statutes, section 
12.22 	353.505.

12.23
12.24	Sec. 31. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	15,454,000
	$
	15,454,000
	
12.25 	The amounts estimated to be needed are as 
12.26 	follows:
12.27 	(a) Special direct state aid. $12,954,000 the 
12.28 	first year and $12,954,000 the second year 
12.29 	are for special direct state aid authorized 
12.30 	under Minnesota Statutes, section 354.436. 
12.31 	(b) Special direct state matching aid.
12.32 	$2,500,000 the first year and $2,500,000 
12.33 	the second year are for special direct state 
13.1 	matching aid authorized under Minnesota 
13.2 	Statutes, section 354.435.

13.3
13.4	Sec. 32. ST. PAUL TEACHERS 
RETIREMENT FUND
 	$
	2,827,000
	$
	2,827,000
	
13.5 	The amounts estimated to be needed for 
13.6 	special direct state aid to first class city 
13.7 	teachers retirement funds authorized under 
13.8 	Minnesota Statutes, section 354A.12, 
13.9 	subdivisions 3a and 3c. 

13.10
13.11	Sec. 33. DULUTH TEACHERS 
RETIREMENT FUND
 	$
	14,377,000
	$
	14,377,000
	
13.12 	The amounts estimated to be needed for 
13.13 	special direct state aid to first class city 
13.14 	teachers retirement funds authorized under 
13.15 	Minnesota Statutes, section 354.436. 

13.16 	Sec. 34. Minnesota Statutes 2014, section 14.365, is amended to read:
13.17 	14.365 OFFICIAL RULEMAKING RECORD.
13.18 	(a) The agency shall maintain the official rulemaking record for every rule adopted 
13.19 	under sections 14.05 to 14.389. The record must be available for public inspection. The 
13.20 	record required by this section constitutes the official and exclusive agency rulemaking 
13.21 	record with respect to agency action on or judicial review of the rule. The record must 
13.22 	contain:
13.23 	(1) copies of all publications in the State Register pertaining to the rule;
13.24 	(2) all written petitions, and all requests, submissions, or comments received by the 
13.25 	agency or the administrative law judge after publication of the notice of intent to adopt or 
13.26 	the notice of hearing in the State Register pertaining to the rule;
13.27 	(3) (2) the statement of need and reasonableness for the rule;
13.28 	(4) the official transcript of the hearing if one was held, or the tape recording of the 
13.29 	hearing if a transcript was not prepared;
13.30 	(5) (3) the report of the administrative law judge, if any;
13.31 	(6) (4) the rule in the form last submitted to the administrative law judge under 
13.32 	sections 14.14 to 14.20 or first submitted to the administrative law judge under sections 
13.33 	14.22 to 14.28;
14.1 	(7) (5) the administrative law judge's written statement of required modifications and 
14.2 	of approval or disapproval by the chief administrative law judge, if any;
14.3 	(8) any documents required by applicable rules of the Office of Administrative 
14.4 	Hearings;
14.5 	(9) (6) the agency's order adopting the rule;
14.6 	(10) (7) the revisor's certificate approving the form of the rule; and
14.7 	(11) (8) a copy of the adopted rule as filed with the secretary of state.;
14.8 	(9) all written petitions and requests, submissions, or comments pertaining to the 
14.9 	rule received by the agency or the administrative law judge after publication of the notice 
14.10 	of intent to adopt or the notice of hearing in the State Register;
14.11 	(10) the official transcript of the hearing, if one was held, or the recording of the 
14.12 	hearing if a transcript was not prepared; and
14.13 	(11) any other document required by applicable rules of the Office of Administrative 
14.14 	Hearings.
14.15 	(b) The agency shall permanently maintain the documents described in paragraph 
14.16 	(a), clauses (1) to (7). The agency shall maintain for at least seven years the documents 
14.17 	described in paragraph (a), clauses (8) to (10). The agency may fulfill this duty by 
14.18 	providing the documents to the revisor of statutes in the form and manner required by the 
14.19 	revisor. The official rulemaking record must be available for public inspection. The 
14.20 	official rulemaking record constitutes the official and exclusive agency rulemaking record 
14.21 	with respect to agency action on or judicial review of the rule.

14.22 	Sec. 35. Minnesota Statutes 2014, section 16A.28, subdivision 1, is amended to read:
14.23 		Subdivision 1.Carryforward. Agencies may carry forward unexpended and 
14.24 	unencumbered nongrant operating balances from the first year of a biennium into the 
14.25 	second year of the biennium one fiscal year into the next fiscal year.

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

14.27 	Sec. 36. Minnesota Statutes 2014, section 16C.16, subdivision 2, is amended to read:
14.28 		Subd. 2.Small business. The commissioner shall adopt rules defining the size 
14.29 	standards for "small business" found in Code of Federal Relations, title 49, section 
14.30 	26.65, for purposes of sections 16C.16 to 16C.21, 137.31, 137.35, 161.321, and 473.142. 
14.31 	The definition must include only businesses with their, provided that the business has 
14.32 	its principal place of business in Minnesota. The definition must establish different 
14.33 	size standards for various types of businesses. In establishing these standards, the 
14.34 	commissioner must consider the differences among industries caused by the size of the 
15.1 	market for goods or services and the relative size and market share of the competitors 
15.2 	operating in those markets.

15.3 	Sec. 37. Minnesota Statutes 2014, section 16C.16, is amended by adding a subdivision 
15.4 	to read:
15.5 		Subd. 13.State-funded projects. (a) Notwithstanding section 16C.001, this 
15.6 	subdivision applies to contracts for state-funded capital improvement projects in excess of 
15.7 	$100,000 that are issued by organizations not subject to the small business requirements of 
15.8 	this section, including municipalities as defined in section 466.01, subdivision 1.
15.9 	(b) Organizations administering contracts described in paragraph (a) shall promote 
15.10 	the use of targeted group businesses designated under this section and take steps to remove 
15.11 	barriers to equitable participation of targeted group businesses.
15.12 	(c) Organizations shall cooperate with the commissioner's efforts to monitor and 
15.13 	measure compliance with this subdivision in the performance of state-funded contracts.

15.14 	Sec. 38. Minnesota Statutes 2014, section 16C.19, is amended to read:
15.15 	16C.19 ELIGIBILITY; RULES.
15.16 	(a) A small business wishing to participate in the programs under section 16C.16, 
15.17 	subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt 
15.18 	by rule standards and procedures for certifying that small targeted group businesses, 
15.19 	small businesses located in economically disadvantaged areas, and veteran-owned small 
15.20 	businesses are eligible to participate under the requirements of sections 16C.16 to 16C.21. 
15.21 	The commissioner shall adopt by rule standards and procedures for hearing appeals and 
15.22 	grievances and other rules necessary to carry out the duties set forth in sections 16C.16
15.23 	to 16C.21.
15.24 	(b) The commissioner may make rules which exclude or limit the participation of 
15.25 	nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers, 
15.26 	manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
15.27 	(c) The commissioner may make rules that set time limits and other eligibility limits 
15.28 	on business participation in programs under sections 16C.16 to 16C.21.
15.29 	(d) Notwithstanding paragraph (c) (a), for purposes of sections 16C.16 to 16C.21, a 
15.30 	veteran-owned small business, the principal place of business of which is in Minnesota, is 
15.31 	certified if it has been verified by the United States Department of Veterans Affairs as being 
15.32 	either a veteran-owned small business or a service-disabled veteran-owned small business, 
15.33 	in accordance with Public Law 109-461 and Code of Federal Regulations, title 38, part 74.
16.1 	(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying 
16.2 	veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may 
16.3 	be read to include veteran-owned small businesses. In addition to the documentation 
16.4 	required in Minnesota Rules, part 1230.1700, the veteran owner must have been 
16.5 	discharged under honorable conditions from active service, as indicated by the veteran 
16.6 	owner's most current United States Department of Defense form DD-214.
16.7 	(f) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a 
16.8 	minority- or woman-owned small business, the principal place of business of which is 
16.9 	in Minnesota, is certified if it has been certified by the Minnesota unified certification 
16.10 	program under the provisions of Code of Federal Regulations, title 49, part 26.
16.11 	(g) The commissioner may adopt rules to implement the programs under section 
16.12 	16C.16, subdivisions 4 to 7, using the expedited rulemaking process in section 14.389.

16.13 	Sec. 39. Minnesota Statutes 2014, section 161.1419, subdivision 8, is amended to read:
16.14 		Subd. 8.Expiration. The commission expires on June 30, 2016 2020.

16.15 	Sec. 40. Minnesota Statutes 2014, section 240.08, subdivision 4, is amended to read:
16.16 		Subd. 4.License issuance and renewal. If the commission determines that 
16.17 	the applicant is qualified for the occupation for which licensing is sought and will 
16.18 	not adversely affect the public health, welfare, and safety or the integrity of racing in 
16.19 	Minnesota, it may issue a class C license to the applicant. If it makes a similar finding 
16.20 	for a renewal of a class C license it may renew the license. Class C licenses are effective 
16.21 	for a minimum of one year for all class C licenses, and up to three years for certain 
16.22 	classifications of class C licenses to be determined by the commission.

16.23 	EFFECTIVE DATE. This section is effective July 1, 2015.

16.24 	Sec. 41. Minnesota Statutes 2014, section 240.10, is amended to read:
16.25 	240.10 LICENSE FEES.
16.26 	The fee for a class A license is $253,000 per year and must be remitted on July 1. 
16.27 	The fee for a class B license is $500 for each assigned racing day and $100 for each day 
16.28 	on which simulcasting is authorized and must be remitted on July 1. Included herein are 
16.29 	all days assigned to be conducted after January 1, 2003. The fee for a class D license is 
16.30 	$50 for each assigned racing day on which racing is actually conducted. Fees imposed on 
16.31 	class D licenses must be paid to the commission at a time and in a manner as provided by 
16.32 	rule of the commission.
17.1 	The commission shall by rule establish an annual license fee for each occupation it 
17.2 	licenses under section 240.08but no annual fee for a class C license may exceed $100.

17.3 	EFFECTIVE DATE. This section is effective July 1, 2015.

17.4 	Sec. 42. Minnesota Statutes 2014, section 349.16, subdivision 6a, is amended to read:
17.5 		Subd. 6a.Monthly regulatory fee. An organization must pay a monthly regulatory 
17.6 	fee of 0.1 0.15 percent of the organization's gross receipts from lawful gambling 
17.7 	conducted each month. The fee must be reported and paid on a monthly basis in a format 
17.8 	as determined by the commissioner of revenue, and remitted to the commissioner of 
17.9 	revenue with the organization's monthly tax return. All monthly regulatory fees received 
17.10 	by the commissioner of revenue under this subdivision must be deposited in the lawful 
17.11 	gambling regulation account in the special revenue fund according to section 349.151. 
17.12 	Failure to pay the monthly regulatory fees in a timely manner may result in disciplinary 
17.13 	action by the board.

17.14 	EFFECTIVE DATE. This section is effective July 1, 2015.

17.15 	Sec. 43. Laws 2013, chapter 142, article 1, section 10, is amended to read:

17.16
17.17	Sec. 10. OFFICE OF ENTERPRISE 
TECHNOLOGY MN.IT SERVICES
 	$
	2,431,000
	$
	2,431,000
	
17.18 	During the biennium ending June 30, 2015, 
17.19 	the Office of Enterprise Technology MN.IT 
17.20 	Services must not charge fees to a public 
17.21 	noncommercial educational television 
17.22 	broadcast station eligible for funding under 
17.23 	Minnesota Statutes, chapter 129D, for 
17.24 	access to the state broadcast infrastructure. 
17.25 	If the access fees not charged to public 
17.26 	noncommercial educational television 
17.27 	broadcast stations total more than $400,000 
17.28 	for the biennium, the office may charge for 
17.29 	access fees in excess of these amounts.
17.30 	The commissioner of Minnesota management 
17.31 	and budget is authorized to provide cash 
17.32 	flow assistance of up to $110,000,000 from 
17.33 	the special revenue fund or other statutory 
18.1 	general funds as defined in Minnesota 
18.2 	Statutes, section 16A.671, subdivision 3, 
18.3 	paragraph (a), to the Office of Enterprise 
18.4 	Technology MN.IT Services for the purpose 
18.5 	of managing revenue and expenditure 
18.6 	differences during the initial phases of IT 
18.7 	consolidation. These funds shall be repaid 
18.8 	with interest by June 30, 2015 the end of the 
18.9 	fiscal year 2015 closing period.

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

18.11 	Sec. 44. Laws 2014, chapter 287, section 25, is amended to read:
18.12 	Sec. 25. PARKING RAMP; REQUIRED USER FINANCING.
 18.13 	The amount equivalent to debt service on the design and construction costs allocated 
18.14 	to the parking garage to be located on the block bounded by Sherburne Avenue on the north, 
18.15 	Park Street on the west, University Avenue on the south, and North Capitol Boulevard on 
18.16 	the east must be user-financed frommust be transferred from parking fees collected and 
18.17 	deposited into the state parking account and credited to the debt service account for the 
18.18 	Legislative Office Facility. to the general fund to offset any direct appropriations made to 
18.19 	the Senate for debt service payments for the legislative parking garage.

18.20 	ARTICLE 2
18.21 	MILITARY AND VETERANS AFFAIRS

18.22	Section 1. MILITARY AND VETERANS AFFAIRS APPROPRIATIONS.
 	
18.23 	The sums shown in the columns marked "Appropriations" are appropriated to the 
18.24 	agencies and for the purposes specified in this article. The appropriations are from the 
18.25 	general fund and are available for the fiscal years indicated for each purpose. The figures 
18.26 	"2016" and "2017" used in this article mean that the appropriations listed under them are 
18.27 	available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. "The 
18.28 	first year" is fiscal year 2016. "The second year" is fiscal year 2017. "The biennium" is 
18.29 	fiscal years 2016 and 2017.

18.30				APPROPRIATIONS
	
18.31				Available for the Year
	
18.32				Ending June 30
	
18.33					2016
		2017

19.1	Sec. 2. MILITARY AFFAIRS

19.2	Subdivision 1.Total Appropriation
 	$
	19,368,000
	$
	19,368,000
	
19.3 	The amounts that may be spent for each 
19.4 	purpose are specified in the following 
19.5 	subdivisions.

19.6	Subd. 2.Maintenance of Training Facilities
 		9,661,000
		9,661,000

19.7	Subd. 3.General Support
 		2,819,000
		2,819,000

19.8	Subd. 4.Enlistment Incentives
 		6,888,000
		6,888,000
	
19.9 	Appropriation Availability. If 
19.10 	appropriations for either year of the biennium 
19.11 	are insufficient, the appropriation from the 
19.12 	other year is available. The appropriations 
19.13 	for enlistment incentives are available until 
19.14 	expended.
19.15 	Transfer Authority. Of the funds carried 
19.16 	forward from fiscal year 2015 to fiscal 
19.17 	year 2016, in the enlistment incentives 
19.18 	appropriation, $10,000,000 in fiscal year 
19.19 	2016 may be transferred to the maintenance 
19.20 	of training facilities appropriation to 
19.21 	address significant maintenance backlog 
19.22 	to the department's military training and 
19.23 	community centers. This is a onetime 
19.24 	transfer and is available until spent.

19.25	Sec. 3. VETERANS AFFAIRS

19.26	Subdivision 1.Total Appropriation
 	$
	65,363,000
	$
	67,581,000
	
19.27 	The amounts that may be spent for each 
19.28 	purpose are specified in the following 
19.29 	subdivisions.

19.30	Subd. 2.Veterans Services
 		16,349,000
		16,461,000
	
19.31 	Honor Guards. $200,000 each year is 
19.32 	for compensation for honor guards at 
20.1 	the funerals of veterans under Minnesota 
20.2 	Statutes, section 197.231. This amount is 
20.3 	added to the program's base funding.
20.4 	Minnesota GI Bill. $200,000 each year is for 
20.5 	the costs of administering the Minnesota GI 
20.6 	Bill on-the-job training and apprenticeship 
20.7 	program under Minnesota Statutes, section 
20.8 	197.791.
20.9 	Gold Star Program. $100,000 each year 
20.10 	is for administering the Gold Star Program 
20.11 	for surviving family members of deceased 
20.12 	veterans. This amount is added to the 
20.13 	program's base funding.
20.14 	County Veterans Service Office.
20.15 	$1,100,000 each year is for funding the 
20.16 	County Veterans Service Office grant 
20.17 	program under Minnesota Statutes, section 
20.18 	197.608.
20.19 	Veterans Service Organizations. $353,000 
20.20 	each year is for grants to the following 
20.21 	congressionally chartered veterans service 
20.22 	organizations, as designated by the 
20.23 	commissioner: Disabled American Veterans, 
20.24 	Military Order of the Purple Heart, American 
20.25 	Legion, Veterans of Foreign Wars, Vietnam 
20.26 	Veterans of America, AMVETS, and 
20.27 	Paralyzed Veterans of America. This funding 
20.28 	must be allocated in direct proportion to 
20.29 	the funding currently being provided by the 
20.30 	commissioner to these organizations.
20.31 	Veterans Paramedic Apprenticeship 
20.32 	Program. All unspent funds, estimated to 
20.33 	be $110,000, from the Veterans Paramedic 
20.34 	Apprenticeship Program, from the onetime 
20.35 	appropriation under Laws 2009, chapter 79, 
21.1 	article 13, section 7, are canceled to the 
21.2 	general fund on July 1, 2013.

21.3	Subd. 3.Veterans Homes
 		49,014,000
		51,120,000
	
21.4 	Veterans Homes Special Revenue Account.
21.5 	The general fund appropriations made to the 
21.6 	department may be transferred to a veterans 
21.7 	homes special revenue account in the special 
21.8 	revenue fund in the same manner as other 
21.9 	receipts are deposited according to Minnesota 
21.10 	Statutes, section 198.34, and are appropriated 
21.11 	to the department for the operation of 
21.12 	veterans homes facilities and programs.
21.13 	Repair and Betterment. $500,000 in the 
21.14 	first year and $500,000 in the second year are 
21.15 	for the repair and betterment of Minnesota 
21.16 	veterans homes.
21.17 	Maximize Federal Reimbursements.
21.18 	The department will seek opportunities 
21.19 	to maximize federal reimbursements of 
21.20 	Medicare-eligible expenses and will provide 
21.21 	annual reports to the commissioner of 
21.22 	management and budget on the federal 
21.23 	Medicare reimbursements received. 
21.24 	Contingent upon future federal Medicare 
21.25 	receipts, reductions to the homes' general 
21.26 	fund appropriation may be made.

21.27 	Sec. 4. Minnesota Statutes 2014, section 190.19, subdivision 2a, is amended to read:
21.28 		Subd. 2a.Uses; veterans. (a) Money appropriated to the Department of Veterans 
21.29 	Affairs from the Minnesota "Support Our Troops" account may be used for:
21.30 	(1) grants to veterans service organizations;
21.31 	(2) outreach to underserved veterans;
21.32 	(3) providing services and programs for veterans and their families; and
21.33 	(4) transfers to the vehicle services account for Gold Star license plates under 
21.34 	section 168.1253.;
22.1 	(5) grants of up to $100,000 to any organization approved by the commissioner of 
22.2 	veterans affairs for the purpose of supporting and improving the lives of veterans and 
22.3 	their families; and
22.4 	(6) grants to an eligible foundation. 
22.5 	(b) For purposes of this subdivision, "eligible foundation" includes any organization 
22.6 	that:
22.7 	(1) is a tax-exempt organization under section 501(c)(3) of the Internal Revenue 
22.8 	Code; and
22.9 	(2) has articles of incorporation under chapter 317A specifying the purpose of the 
22.10 	organization as including the provision of financial assistance to veterans and their families.