1.1 	A bill for an act
1.2 	relating to the operation of state government; appropriating money for the 
1.3 	legislature, governor's office, state auditor, attorney general, secretary of state, 
1.4 	certain agencies, boards, councils, retirement funds, military affairs and veterans 
1.5 	affairs, and senate building; cancellation of certain appropriations; transferring 
1.6 	money to the budget reserve; allowing prepay for certain software and information 
1.7 	technology hosting services; limiting a fee or fine increase to ten percent in a 
1.8 	biennium; providing reimbursement for reasonable accommodation; modifying 
1.9 	grant agreement provisions; making changes to guaranteed energy-savings 
1.10 	program, small business requirements, and targeted group businesses; changing 
1.11 	certain requirements for the practice of cosmetology; assessing certain costs 
1.12 	for Office of Administrative Hearings; changing a rehabilitation or renovation 
1.13 	grant from the Minnesota Amateur Sports Commission; changing or establishing 
1.14 	certain fees; limiting fire sprinkler requirement in certain dwellings; modifying 
1.15 	certain filing requirements for corporations; modifying provisions for 
1.16 	accountants; requiring a licensee of the residential trades to give an option to 
1.17 	install fire sprinklers; modifying debt service provision for the legislative parking 
1.18 	garage; requiring the same room numbers on signage in the Capitol to identify 
1.19 	legacy rooms; providing in-lieu of rent evaluation; prohibiting state funds, tax 
1.20 	expenditures, or state indebtedness to fund a major league soccer stadium; making 
1.21 	changes to provisions for military and veterans affairs; changing provisions 
1.22 	covering pari-mutuel horse racing; modifying provisions for cigarette and tobacco 
1.23 	license; providing civil penalties; requiring reports;amending Minnesota Statutes 
1.24 	2014, sections 3.8843, subdivision 5; 16A.065; 16A.1283; 16B.97, subdivision 
1.25 	1; 16B.98, subdivisions 1, 11; 16C.144; 16C.16, subdivision 2, by adding a 
1.26 	subdivision; 16C.19; 155A.21; 155A.23, subdivision 8, by adding subdivisions; 
1.27 	155A.24, subdivision 2; 155A.25, subdivisions 1a, 5, by adding subdivisions; 
1.28 	155A.27, subdivisions 1, 2, 5a; 155A.271; 155A.29, subdivisions 1, 2, by adding 
1.29 	a subdivision; 155A.30, subdivisions 5, 10; 161.1419, subdivision 8; 190.16, by 
1.30 	adding a subdivision; 190.19, subdivisions 2a, 3; 192.26, by adding a subdivision; 
1.31 	192.38, subdivision 1; 192.501, by adding a subdivision; 197.133; 198.03, 
1.32 	subdivisions 2, 3; 211B.37; 240.01, subdivision 22, by adding subdivisions; 
1.33 	240.011; 240.03; 240.08, subdivisions 2, 4, 5; 240.10; 240.13, subdivisions 5, 
1.34 	6; 240.135; 240.15, subdivisions 1, 6; 240.16, subdivision 1; 240.22; 240.23; 
1.35 	240A.09; 270C.722, subdivision 1; 270C.728, by adding a subdivision; 272.484; 
1.36 	297F.01, subdivision 14; 297F.03, subdivisions 5, 6; 297F.04, subdivision 1; 
1.37 	297F.13, subdivision 4; 297F.19, by adding a subdivision; 297F.20, by adding 
1.38 	subdivisions; 297F.21, subdivision 1; 299F.011, by adding a subdivision; 303.19; 
1.39 	304A.301, subdivisions 1, 5, 6, by adding a subdivision; 326A.01, subdivisions 
2.1 	2, 12, 13a, 15, 16; 326A.02, subdivisions 3, 5; 326A.05, subdivisions 1, 3; 
2.2 	326A.08, subdivision 7; 326A.10; 326B.809; 336A.09, subdivision 1; 364.09; 
2.3 	461.12, subdivision 8; Laws 2013, chapter 142, article 1, section 10; Laws 2014, 
2.4 	chapter 287, section 25; proposing coding for new law in Minnesota Statutes, 
2.5 	chapters 3; 16B; 297F; repealing Minnesota Statutes 2014, sections 155A.23, 
2.6 	subdivision 6; 197.131; 197.132; 240.01, subdivisions 12, 23; 297F.185.
2.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.8 	ARTICLE 1
2.9 	STATE GOVERNMENT APPROPRIATIONS

2.10	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 	
2.11 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.12 	agencies and for the purposes specified in this article. The appropriations are from the 
2.13 	general fund, or another named fund, and are available for the fiscal years indicated 
2.14 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
2.15 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
2.16 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
2.17 	year 2017. "The biennium" is fiscal years 2016 and 2017. 

2.18				APPROPRIATIONS
	
2.19				Available for the Year
	
2.20				Ending June 30
	
2.21					2016
		2017

2.22	Sec. 2. LEGISLATURE

2.23	Subdivision 1.Total Appropriation
 	$
	70,913,000
	$
	71,811,000

2.24	Appropriations by Fund
	
2.25		2016
	2017
	
2.26	General
	70,785,000
	71,683,000
	
2.27	Health Care Access
	128,000
	128,000
	
2.28 	The amounts that may be spent for each 
2.29 	purpose are specified in the following 
2.30 	subdivisions.

2.31	Subd. 2.Senate
 		23,372,000
		23,976,000

2.32	Subd. 3.House of Representatives
 		30,524,000
		30,524,000
	
2.33 	To avoid cost overruns, on June 1, 2015, 
2.34 	the commissioner of administration 
2.35 	shall determine whether the house of 
2.36 	representatives has vacated the house 
3.1 	chamber as of June 1, 2015, and whether the 
3.2 	chief clerk of the house of representatives 
3.3 	has provided written assurance that the 
3.4 	house chamber will remain vacant until the 
3.5 	completion of the Capitol renovation project 
3.6 	funded under Laws 2013, chapter 136, section 
3.7 	3, including the 2016 regular legislative 
3.8 	session. The commissioner of administration 
3.9 	shall provide notice of this determination 
3.10 	to the commissioner of management and 
3.11 	budget. If the commissioner of management 
3.12 	and budget has been notified that the house 
3.13 	has not vacated the house chamber and 
3.14 	provided written assurance as required in this 
3.15 	paragraph, the commissioner shall cancel 
3.16 	$500,000 of this appropriation in the first 
3.17 	year to the general fund, and $500,000 is 
3.18 	appropriated from the general fund in the first 
3.19 	year to the commissioner of administration 
3.20 	for the purposes specified in Laws 2013, 
3.21 	chapter 136, section 3, subdivision 2.
3.22 	During the biennium ending June 30, 2017, 
3.23 	any revenues received by the house of 
3.24 	representatives from voluntary donations 
3.25 	to support broadcast or print media are 
3.26 	appropriated to the house of representatives.

3.27	Subd. 4.Legislative Coordinating Commission
 		17,017,000
		17,311,000

3.28	Appropriations by Fund
	
3.29	General
	16,889,000
	17,183,000
	
3.30	Health Care Access 
	128,000
	128,000
	
3.31 	$6,678,000 the first year and $6,793,000 
3.32 	the second year are for the Office of the 
3.33 	Legislative Auditor.
3.34 	$297,000 in fiscal year 2016 and $297,000 
3.35 	in fiscal year 2017 are for the Office of 
4.1 	the Revisor of Statutes to maintain and 
4.2 	improve information technology services. 
4.3 	The approved complement of the revisor of 
4.4 	statutes is increased by five positions. This 
4.5 	appropriation shall be added to the revisor's 
4.6 	budget base.
4.7 	$35,000 in fiscal year 2016 and $35,000 in 
4.8 	fiscal year 2017 are to provide support to the 
4.9 	Legislative Commission on Data Practices 
4.10 	established under Minnesota Statutes, section 
4.11 	3.8843. This is a onetime appropriation.
4.12 	From its funds, $10,000 each year is for 
4.13 	purposes of the legislators' forum, through 
4.14 	which Minnesota legislators meet with 
4.15 	counterparts from South Dakota, North 
4.16 	Dakota, and Manitoba to discuss issues of 
4.17 	mutual concern.

4.18
4.19	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,615,000
	$
	3,616,000
	
4.20 	(a) This appropriation is to fund the Office of 
4.21 	the Governor and Lieutenant Governor.
4.22 	(b) Up to $19,000 the first year and up to 
4.23 	$19,000 the second year are for necessary 
4.24 	expenses in the normal performance of 
4.25 	the Governor's and Lieutenant Governor's 
4.26 	duties for which no other reimbursement is 
4.27 	provided.
4.28 	(c) By September 1 of each year, the 
4.29 	commissioner of management and budget 
4.30 	shall report to the chairs and ranking minority 
4.31 	members of the senate State Departments 
4.32 	and Veterans Affairs Budget Division and the 
4.33 	house of representatives State Government 
4.34 	Finance Committee any personnel costs 
4.35 	incurred by the Offices of the Governor and 
5.1 	Lieutenant Governor that were supported 
5.2 	by appropriations to other agencies during 
5.3 	the previous fiscal year. The Office of the 
5.4 	Governor shall inform the chairs and ranking 
5.5 	minority members of the committees before 
5.6 	initiating any interagency agreements.

5.7	Sec. 4. STATE AUDITOR
 	$
	2,322,000
	$
	2,333,000
	
5.8 	$35,000 from the general fund is for an 
5.9 	infrastructure stress study. This is a onetime 
5.10 	appropriation and may be used in either year 
5.11 	of the biennium.

5.12	Sec. 5. ATTORNEY GENERAL
 	$
	24,343,000
	$
	24,343,000

5.13	Appropriations by Fund
	
5.14		2016
	2017
	
5.15	General
	22,125,000
	22,125,000
	
5.16
5.17	State Government 
Special Revenue
	1,823,000
	1,823,000
	
5.18	Environmental
	145,000
	145,000
	
5.19	Remediation
	250,000
	250,000
	
5.20 	Of this appropriation, $65,000 in the first 
5.21 	year and $65,000 in the second year are 
5.22 	from the general fund for transfer to the 
5.23 	commissioner of public safety for a grant to 
5.24 	the Minnesota County Attorneys Association 
5.25 	for prosecutor and law enforcement training.

5.26	Sec. 6. SECRETARY OF STATE
 	$
	6,631,000
	$
	6,631,000
	
5.27 	Any funds available in the account 
5.28 	established in Minnesota Statutes, section 
5.29 	5.30, pursuant to the Help America Vote Act, 
5.30 	are appropriated for the purposes and uses 
5.31 	authorized by federal law.

5.32
5.33	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	1,164,000
	$
	1,028,000
	
6.1 	Campaign Finance and Public Disclosure 
6.2 	Board Web Site Redevelopment Project. 
6.3 	$150,000 in fiscal year 2016 is appropriated 
6.4 	to the Campaign Finance and Public 
6.5 	Disclosure Board to complete redevelopment 
6.6 	of its Web site. This appropriation is 
6.7 	available until June 30, 2017. By January 15, 
6.8 	2016, the director of the Campaign Finance 
6.9 	and Public Disclosure Board shall report to 
6.10 	the chairs and ranking minority members of 
6.11 	the senate State Departments and Veterans 
6.12 	Affairs Budget Division and the house of 
6.13 	representatives State Government Finance 
6.14 	Committee on the status of the Web site 
6.15 	redevelopment project. The report shall 
6.16 	include a budget detailing total dollars to be 
6.17 	spent, completion date of the project, and 
6.18 	dollars expended to date.

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

6.20	Sec. 9. ADMINISTRATIVE HEARINGS
 	$
	7,630,000
	$
	7,633,000

6.21	Appropriations by Fund
	
6.22		2016
	2017
	
6.23	General
	380,000
	383,000
	
6.24
6.25	Workers' 
Compensation
	7,250,000
	7,250,000
	
6.26 	Campaign Violations Hearings. $115,000 
6.27 	in fiscal year 2016 and $115,000 in fiscal year 
6.28 	2017 are appropriated from the general fund 
6.29 	for the cost of considering complaints filed 
6.30 	under Minnesota Statutes, section 211B.32. 
6.31 	These amounts may be used in either year 
6.32 	of the biennium.
6.33 	$6,000 in fiscal year 2016 and $6,000 in 
6.34 	fiscal year 2017 are appropriated from the 
6.35 	general fund to the Office of Administrative 
7.1 	Hearings for the cost of considering data 
7.2 	practices complaints filed under Minnesota 
7.3 	Statutes, section 13.085. These amounts may 
7.4 	be used in either year of the biennium.

7.5	Sec. 10. MN.IT SERVICES
 	$
	2,526,000
	$
	2,622,000
	
7.6 	The commissioner of management and 
7.7 	budget is authorized to provide cash flow 
7.8 	assistance of up to $110,000,000 from the 
7.9 	special revenue fund or other statutory 
7.10 	general funds as defined in Minnesota 
7.11 	Statutes, section 16A.671, subdivision 
7.12 	3, paragraph (a), to the Office of MN.IT 
7.13 	Services for the purpose of managing 
7.14 	revenue and expenditure differences during 
7.15 	the initial phases of IT consolidation. These 
7.16 	funds shall be repaid with interest by the end 
7.17 	of the fiscal year 2017 closing period.
7.18 	During the biennium ending June 30, 2017, 
7.19 	MN.IT Services must not charge fees to a 
7.20 	public noncommercial educational television 
7.21 	broadcast station eligible for funding under 
7.22 	Minnesota Statutes, chapter 129D, for 
7.23 	access to the state broadcast infrastructure. 
7.24 	If the access fees not charged to public 
7.25 	noncommercial educational television 
7.26 	broadcast stations total more than $400,000 
7.27 	for the biennium, the office may charge for 
7.28 	access fees in excess of these amounts.

7.29	Sec. 11. ADMINISTRATION

7.30	Subdivision 1.Total Appropriation
 	$
	25,141,000
	$
	22,890,000
	
7.31 	The amounts that may be spent for each 
7.32 	purpose are specified in the following 
7.33 	subdivisions.

8.1	Subd. 2.Government and Citizen Services
 		10,009,000
		9,144,000
	
8.2 	$74,000 the first year and $74,000 the second 
8.3 	year are for the Council on Developmental 
8.4 	Disabilities.
8.5 	$735,000 the first year and $65,000 the 
8.6 	second year are to conduct a disparity study 
8.7 	required under Minnesota Statutes, section 
8.8 	16C.16, subdivision 5. This is a onetime 
8.9 	appropriation.
8.10 	$500,000 in fiscal year 2016 and $500,000 
8.11 	in fiscal year 2017 are credited to the 
8.12 	accommodation account established in 
8.13 	Minnesota Statutes, section 16B.4805. 
8.14 	In fiscal year 2016, the commissioner of 
8.15 	administration may use five percent of 
8.16 	the appropriation for fiscal year 2016 for 
8.17 	developing policies and procedures to 
8.18 	implement the reimbursement program 
8.19 	established in Minnesota Statutes, section 
8.20 	16B.4805, and for educating qualifying 
8.21 	agencies about the availability of and 
8.22 	process for receiving reimbursement for 
8.23 	accommodation expenses.
8.24 	$100,000 in fiscal year 2016 and $100,000 
8.25 	in fiscal year 2017 are for the Information 
8.26 	Policy Analysis Division to provide training 
8.27 	and technical assistance to local units of 
8.28 	government on compliance with Minnesota 
8.29 	Statutes, chapter 13, the Minnesota Data 
8.30 	Practices Act. This is a onetime appropriation 
8.31 	and is available until June 30, 2019.

8.32	Subd. 3.Strategic Management Services
 		1,975,000
		2,009,000

8.33	Subd. 4.Fiscal Agent
 		13,157,000
		11,737,000
	
9.1 	The appropriations under this section are to 
9.2 	the commissioner of administration for the 
9.3 	purposes specified.
9.4 	In-Lieu of Rent. $8,158,000 the first year 
9.5 	and $7,158,000 the second year are for 
9.6 	space costs of the legislature and veterans 
9.7 	organizations, ceremonial space, and 
9.8 	statutorily free space. In-lieu of rent may be 
9.9 	used for rent loss and relocation expenses 
9.10 	related to the Capitol restoration in the fiscal 
9.11 	year 2014-2015 biennium and fiscal year 
9.12 	2016-2017 biennium. 
9.13 	Relocation Expenses. $1,380,000 the first 
9.14 	year and $960,000 the second year are for 
9.15 	rent loss and relocation expenses related 
9.16 	to the Capitol renovation project. This is a 
9.17 	onetime appropriation.
9.18 	Public Broadcasting. (a) $1,550,000 the 
9.19 	first year and $1,550,000 the second year are 
9.20 	for matching grants for public television.
9.21 	(b) $550,000 the first year and $550,000 
9.22 	the second year are for public television 
9.23 	equipment grants under Minnesota Statutes, 
9.24 	section 129D.13. The base for fiscal year 
9.25 	2018 is $250,000, and for fiscal year 2019 
9.26 	is $250,000.
9.27 	(c) The commissioner of administration 
9.28 	must consider the recommendations of the 
9.29 	Minnesota Public Television Association 
9.30 	before allocating the amount appropriated 
9.31 	in paragraphs (a) and (b) for equipment or 
9.32 	matching grants.
9.33 	(d) $592,000 the first year and $592,000 the 
9.34 	second year are for community service grants 
9.35 	to public educational radio stations. This 
10.1 	appropriation may be used to disseminate 
10.2 	emergency information in foreign languages. 
10.3 	The base for fiscal year 2018 is $392,000 and 
10.4 	for fiscal year 2019 is $392,000.
10.5 	(e) $367,000 the first year and $367,000 
10.6 	the second year are for equipment grants 
10.7 	to public educational radio stations. This 
10.8 	appropriation may be used for the repair, 
10.9 	rental, and purchase of equipment including 
10.10 	equipment under $500. The base for fiscal 
10.11 	year 2018 is $117,000 and for fiscal year 
10.12 	2019 is $117,000.
10.13 	(f) $560,000 the first year and $560,000 
10.14 	the second year are for equipment grants 
10.15 	to Minnesota Public Radio, Inc., including 
10.16 	upgrades to Minnesota's Emergency Alert 
10.17 	and AMBER Alert Systems. The base for 
10.18 	fiscal year 2018 is $310,000 and for fiscal 
10.19 	year 2019 is $310,000.
10.20 	(g) The appropriations in paragraphs (d), 
10.21 	(e), and (f), may not be used for indirect 
10.22 	costs claimed by an institution or governing 
10.23 	body. The commissioner of administration 
10.24 	must consider the recommendations of the 
10.25 	Minnesota Public Educational Radio Stations 
10.26 	before awarding grants under Minnesota 
10.27 	Statutes, section 129D.14, using the 
10.28 	appropriations in paragraphs (d), (e), and (f).
10.29 	(h) Any unencumbered balance remaining 
10.30 	the first year for grants to public television or 
10.31 	radio stations does not cancel and is available 
10.32 	for the second year.

10.33
10.34
10.35	Sec. 12. CAPITOL AREA 
ARCHITECTURAL AND PLANNING 
BOARD
 	$
	340,000
	$
	345,000

11.1
11.2	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	22,277,000
	$
	23,569,000
	
11.3 	$1,000,000 in fiscal year 2016 and 
11.4 	$2,000,000 in fiscal year 2017 are to maintain 
11.5 	and upgrade statewide business systems, 
11.6 	including, but not limited to, the statewide 
11.7 	accounting system, the human resource and 
11.8 	payroll system, the employment application 
11.9 	system, the enterprise learning management 
11.10 	system, the budget planning and analysis 
11.11 	system, the fiscal note tracking system, and 
11.12 	capital budget system.

11.13	Sec. 14. REVENUE

11.14	Subdivision 1.Total Appropriation
 	$
	146,587,000
	$
	147,067,000

11.15	Appropriations by Fund
	
11.16		2016
	2017
	
11.17	General
	142,352,000
	142,832,000
	
11.18	Health Care Access
	1,749,000
	1,749,000
	
11.19
11.20	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
11.21	Environmental
	303,000
	303,000

11.22	Subd. 2.Tax System Management
 		117,971,000
		118,451,000

11.23	Appropriations by Fund
	
11.24	General
	113,736,000
	114,216,000
	
11.25	Health Care Access
	1,749,000
	1,749,000
	
11.26
11.27	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
11.28	Environmental
	303,000
	303,000
	
11.29 	Appropriation; Taxpayer Assistance. (a) 
11.30 	$400,000 in fiscal year 2016 and $400,000 
11.31 	in fiscal year 2017 from the general fund 
11.32 	are for grants to one or more nonprofit 
11.33 	organizations, qualifying under section 
11.34 	501(c)(3) of the Internal Revenue Code of 
11.35 	1986, to coordinate, facilitate, encourage, and 
11.36 	aid in the provision of taxpayer assistance 
12.1 	services. The unencumbered balance in the 
12.2 	first year does not cancel but is available for 
12.3 	the second year.
12.4 	(b) For purposes of this appropriation, 
12.5 	"taxpayer assistance services" means 
12.6 	accounting and tax preparation services 
12.7 	provided by volunteers to low-income, 
12.8 	elderly, and disadvantaged Minnesota 
12.9 	residents to help them file federal and state 
12.10 	income tax returns, Minnesota property 
12.11 	tax refund claims, and to provide personal 
12.12 	representation before the Department of 
12.13 	Revenue and Internal Revenue Service.
12.14 	(c) $1,149,000 in fiscal year 2016 and 
12.15 	$955,000 in fiscal year 2017 are for 
12.16 	establishing a statewide license for retailers 
12.17 	of tobacco and for ongoing costs for 
12.18 	expanding the commissioner of revenue's 
12.19 	tobacco enforcement team.

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

12.21	Sec. 15. GAMBLING CONTROL
 	$
	3,260,000
	$
	3,324,000

12.22	Appropriations by Fund
	
12.23	General
	483,000
	779,000
	
12.24	Special Revenue
	2,777,000
	2,545,000
	
12.25 	The special revenue fund appropriations are 
12.26 	from the lawful gambling regulation account 
12.27 	in the special revenue fund.

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

12.29	Appropriations by Fund
	
12.30		2016
	2017
	
12.31	General
	269,000
	72,000
	
12.32	Special Revenue
	899,000
	1,081,000
	
13.1 	The general fund appropriation is for fiscal 
13.2 	years 2016 and 2017 only.
13.3 	The special revenue fund appropriations are 
13.4 	from the racing and card playing regulation 
13.5 	accounts. The base for the special revenue 
13.6 	fund appropriation is $972,000 in fiscal year 
13.7 	2018 and $971,000 in fiscal year 2019.
13.8 	The Racing Commission is directed to work 
13.9 	in consultation with the racing industry 
13.10 	to propose permanent dedicated funding 
13.11 	changes to fully support the operations of 
13.12 	the commission to ensure that racing is 
13.13 	conducted in the public interest. These 
13.14 	changes shall be reported to the Office of the 
13.15 	Governor and to the majority and minority 
13.16 	leaders of the relevant finance and policy 
13.17 	legislative committees by November 1, 2015.

13.18	Sec. 17. STATE LOTTERY
 					
13.19 	Notwithstanding Minnesota Statutes, section 
13.20 	349A.10, subdivision 3, the operating budget 
13.21 	must not exceed $31,000,000 in fiscal year 
13.22 	2016 and $31,000,000 in fiscal year 2017.

13.23	Sec. 18. AMATEUR SPORTS COMMISSION
 	$
	4,300,000
	$
	300,000
	
13.24 	Mighty Ducks. $4,000,000 in fiscal year 
13.25 	2016 is for the purposes of Minnesota 
13.26 	Statutes, section 240A.09, paragraph (b).

13.27
13.28	Sec. 19. COUNCIL ON BLACK 
MINNESOTANS
 	$
	396,000
	$
	401,000

13.29
13.30	Sec. 20. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	359,000
	$
	364,000

13.31
13.32	Sec. 21. COUNCIL ON AFFAIRS OF 
CHICANO/LATINO PEOPLE
 	$
	381,000
	$
	386,000

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

14.2
14.3	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

14.4	Subdivision 1.Total Appropriation
 	$
	23,086,000
	$
	23,326,000
	
14.5 	The amounts that may be spent for each 
14.6 	purpose are specified in the following 
14.7 	subdivisions.

14.8	Subd. 2.Operations and Programs
 		22,515,000
		22,955,000
	
14.9 	The base is $22,322,000 per year for the 
14.10 	fiscal years 2018-2019 biennium. Increased 
14.11 	funding in fiscal years 2016 and 2017 is for 
14.12 	the following purposes:
14.13 	(1) $430,000 the first year and $870,000 the 
14.14 	second year to provide capacity to continue 
14.15 	to deliver history programs and services 
14.16 	across Minnesota. The base is $487,000 per 
14.17 	year for the fiscal years 2018-2019 biennium;
14.18 	(2) $500,000 the first year and $500,000 
14.19 	the second year for digital preservation 
14.20 	and access, including planning and 
14.21 	implementation of a program to preserve 
14.22 	and make available resources related to 
14.23 	Minnesota history; and
14.24 	(3) $250,000 the first year and $250,000 
14.25 	the second year for activities to enhance 
14.26 	educational achievement through history 
14.27 	education to be delivered statewide, in 
14.28 	conjunction with historic sites. This is a 
14.29 	onetime appropriation.
14.30 	Notwithstanding Minnesota Statutes, section 
14.31 	138.668, the Minnesota Historical Society 
14.32 	may not charge a fee for its general tours at 
15.1 	the Capitol, but may charge fees for special 
15.2 	programs other than general tours.

15.3	Subd. 3.Fiscal Agent

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

15.5	(b) Minnesota Air National Guard Museum
		17,000
		17,000

15.6	(c) Minnesota Military Museum
		100,000
		100,000
	
15.7 	$50,000 in fiscal year 2016 and $50,000 in 
15.8 	fiscal year 2017 are for an archivist position. 
15.9 	This is a onetime appropriation and available 
15.10 	until June 30, 2017.

15.11	(d) Farmamerica
		315,000
		115,000
	
15.12 	$200,000 in fiscal year 2016 is for a grant 
15.13 	to Farmamerica, the Minnesota agriculture 
15.14 	interpretive center, for capital improvements.

15.15	(e) Hockey Hall of Fame
		100,000
		100,000
	
15.16 	Balances Forward. Any unencumbered 
15.17 	balance remaining in this subdivision the first 
15.18 	year does not cancel but is available for the 
15.19 	second year of the biennium.

15.20	Sec. 24. BOARD OF THE ARTS

15.21	Subdivision 1.Total Appropriation
 	$
	7,522,000
	$
	7,530,000
	
15.22 	The amounts that may be spent for each 
15.23 	purpose are specified in the following 
15.24 	subdivisions.

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

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

15.27	Subd. 4.Regional Arts Councils
 		2,139,000
		2,139,000
	
15.28 	Unencumbered Balance Available. Any 
15.29 	unencumbered balance remaining in this 
15.30 	section the first year does not cancel, but is 
15.31 	available for the second year of the biennium.
16.1 	Projects located in Minnesota; travel 
16.2 	restriction. Money appropriated in this 
16.3 	section and distributed as grants may only 
16.4 	be spent on projects located in Minnesota. 
16.5 	A recipient of a grant funded by an 
16.6 	appropriation in this section must not use 
16.7 	more than ten percent of the total grant for 
16.8 	costs related to travel outside the state of 
16.9 	Minnesota.

16.10
16.11	Sec. 25. MINNESOTA HUMANITIES 
CENTER
 	$
	350,000
	$
	350,000

16.12	Sec. 26. BOARD OF ACCOUNTANCY
 	$
	639,000
	$
	641,000

16.13
16.14
16.15
16.16	Sec. 27. BOARD OF ARCHITECTURE 
ENGINEERING, LAND SURVEYING, 
LANDSCAPE ARCHITECTURE, 
GEOSCIENCE, AND INTERIOR DESIGN
 	$
	784,000
	$
	794,000

16.17
16.18	Sec. 28. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	2,565,000
	$
	2,584,000

16.19	Sec. 29. BOARD OF BARBER EXAMINERS
 	$
	321,000
	$
	325,000

16.20
16.21	Sec. 30. GENERAL CONTINGENT 
ACCOUNTS
 	$
	1,000,000
	$
	500,000

16.22	Appropriations by Fund
	
16.23		2016
	2017
	
16.24	General
	500,000
	-0-
	
16.25
16.26	State Government 
Special Revenue
	400,000
	400,000
	
16.27
16.28	Workers' 
Compensation
	100,000
	100,000
	
16.29 	(a) The appropriations in this section 
16.30 	may only be spent with the approval of 
16.31 	the governor after consultation with the 
16.32 	Legislative Advisory Commission pursuant 
16.33 	to Minnesota Statutes, section 3.30.
17.1 	(b) If an appropriation in this section for 
17.2 	either year is insufficient, the appropriation 
17.3 	for the other year is available for it.
17.4 	(c) If a contingent account appropriation 
17.5 	is made in one fiscal year, it should be 
17.6 	considered a biennial appropriation.

17.7	Sec. 31. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
17.8 	These appropriations are to be spent by the 
17.9 	commissioner of management and budget 
17.10 	according to Minnesota Statutes, section 
17.11 	3.736, subdivision 7. If the appropriation for 
17.12 	either year is insufficient, the appropriation 
17.13 	for the other year is available for it.

17.14
17.15	Sec. 32. MINNESOTA STATE RETIREMENT 
SYSTEM

17.16	Subdivision 1.Total Appropriation
 	$
	6,552,000
	$
	8,936,000
	
17.17 	The amounts that may be spent for each 
17.18 	purpose are specified in the following 
17.19 	subdivisions.

17.20
17.21	Subd. 2.Combined Legislators and 
Constitutional Officers Retirement Plan
 					
17.22 	Under Minnesota Statutes, sections 3A.03, 
17.23 	subdivision 2; 3A.04, subdivisions 3 and 4; 
17.24 	and 3A.115.
17.25 	If an appropriation in this section for either 
17.26 	year is insufficient, the appropriation for the 
17.27 	other year is available for it.

17.28
17.29	Sec. 33. PUBLIC EMPLOYEES 
RETIREMENT ASSOCIATION
 	$
	16,000,000
	$
	16,000,000
	
17.30 	General employees retirement plan of the 
17.31 	Public Employees Retirement Association 
17.32 	relating to the merged former MERF division.
18.1 	These amounts are estimated to be needed 
18.2 	under Minnesota Statutes, section 353.505.

18.3
18.4	Sec. 34. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	29,831,000
	$
	29,831,000
	
18.5 	The amounts estimated to be needed are as 
18.6 	follows:
18.7 	Special Direct State Aid. $27,331,000 the 
18.8 	first year and $27,331,000 the second year 
18.9 	are for special direct state aid authorized 
18.10 	under Minnesota Statutes, section 354.436.
18.11 	Special Direct State Matching Aid. 
18.12 	$2,500,000 the first year and $2,500,000 
18.13 	the second year are for special direct state 
18.14 	matching aid authorized under Minnesota 
18.15 	Statutes, section 354.435.

18.16
18.17	Sec. 35. ST. PAUL TEACHERS 
RETIREMENT FUND
 	$
	9,827,000
	$
	9,827,000
	
18.18 	The amounts estimated to be needed for 
18.19 	special direct state aid to the first class 
18.20 	city teachers retirement fund association 
18.21 	authorized under Minnesota Statutes, section 
18.22 	354A.12, subdivisions 3a and 3c.

18.23	Sec. 36. MILITARY AFFAIRS

18.24	Subdivision 1.Total Appropriation
 	$
	20,868,000
	$
	20,868,000
	
18.25 	The amounts that may be spent for each 
18.26 	purpose are specified in the following 
18.27 	subdivisions.

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

18.29	Subd. 3.General Support
 		4,319,000
		4,319,000
	
18.30 	$1,500,000 in fiscal year 2016 and 
18.31 	$1,500,000 in fiscal year 2017 are for 
19.1 	reimbursement grants under Minnesota 
19.2 	Statutes, section 190.16, subdivision 6b.

19.3	Subd. 4.Enlistment Incentives
 		6,888,000
		6,888,000
	
19.4 	Appropriation Availability. If 
19.5 	appropriations for either year of the biennium 
19.6 	are insufficient, the appropriation from the 
19.7 	other year is available. The appropriations 
19.8 	for enlistment incentives are available until 
19.9 	expended.
19.10 	Transfer Authority. Of the funds carried 
19.11 	forward from fiscal year 2015 to fiscal 
19.12 	year 2016, in the enlistment incentives 
19.13 	appropriation, $10,000,000 in fiscal year 
19.14 	2016 may be transferred to the maintenance 
19.15 	of training facilities appropriation to 
19.16 	address significant maintenance backlog 
19.17 	to the department's military training and 
19.18 	community centers. This is a onetime 
19.19 	transfer and is available until June 30, 2019.

19.20	Sec. 37. VETERANS AFFAIRS

19.21	Subdivision 1.Total Appropriation
 	$
	65,495,000
	$
	67,691,000
	
19.22 	The amounts that may be spent for each 
19.23 	purpose are specified in the following 
19.24 	subdivisions.

19.25	Subd. 2.Veterans Programs and Services
 		16,393,000
		16,461,000
	
19.26 	$44,000 for a transfer to the Department 
19.27 	of Education to implement the expedited 
19.28 	and temporary licensing provisions of 
19.29 	Minnesota Statutes, section 197.4552. This 
19.30 	appropriation is available until June 30, 2017.
19.31 	Veterans Service Organizations. $353,000 
19.32 	each year is for grants to the following 
19.33 	congressionally chartered veterans service 
20.1 	organizations, as designated by the 
20.2 	commissioner: Disabled American Veterans, 
20.3 	Military Order of the Purple Heart, the 
20.4 	American Legion, Veterans of Foreign Wars, 
20.5 	Vietnam Veterans of America, AMVETS, 
20.6 	and Paralyzed Veterans of America. This 
20.7 	funding must be allocated in direct proportion 
20.8 	to the funding currently being provided by 
20.9 	the commissioner to these organizations.
20.10 	Minnesota Assistance Council for 
20.11 	Veterans. $750,000 each year is for a grant 
20.12 	to the Minnesota Assistance Council for 
20.13 	Veterans to provide assistance throughout 
20.14 	Minnesota to veterans and their families who 
20.15 	are homeless or in danger of homelessness, 
20.16 	including assistance with the following:
20.17 	(1) utilities;
20.18 	(2) employment; and
20.19 	(3) legal issues.
20.20 	The assistance authorized under this 
20.21 	paragraph must be made only to veterans who 
20.22 	have resided in Minnesota for 30 days prior 
20.23 	to application for assistance and according 
20.24 	to other guidelines established by the 
20.25 	commissioner. In order to avoid duplication 
20.26 	of services, the commissioner must ensure 
20.27 	that this assistance is coordinated with all 
20.28 	other available programs for veterans.
20.29 	Honor Guards. $200,000 each year is 
20.30 	for compensation for honor guards at 
20.31 	the funerals of veterans under Minnesota 
20.32 	Statutes, section 197.231. This amount is 
20.33 	added to the program's base funding.
21.1 	Minnesota GI Bill. $200,000 each year is 
21.2 	for the costs of administering the Minnesota 
21.3 	GI Bill postsecondary educational benefits, 
21.4 	on-the-job training, and apprenticeship 
21.5 	program under Minnesota Statutes, section 
21.6 	197.791. Of this amount, $100,000 is for 
21.7 	transfer to the Office of Higher Education.
21.8 	Gold Star Program. $100,000 each year 
21.9 	is for administering the Gold Star Program 
21.10 	for surviving family members of deceased 
21.11 	veterans. This amount is added to the 
21.12 	program's base funding.
21.13 	County Veterans Service Office. 
21.14 	$1,100,000 each year is for funding the 
21.15 	County Veterans Service Office grant 
21.16 	program under Minnesota Statutes, section 
21.17 	197.608.

21.18	Subd. 3.Veterans Homes
 		49,102,000
		51,230,000
	
21.19 	The base is $51,234,000 for fiscal year 2018 
21.20 	and $51,238,000 for fiscal year 2019.
21.21 	Veterans Homes Special Revenue Account. 
21.22 	The general fund appropriations made to the 
21.23 	department may be transferred to a veterans 
21.24 	homes special revenue account in the special 
21.25 	revenue fund in the same manner as other 
21.26 	receipts are deposited according to Minnesota 
21.27 	Statutes, section 198.34, and are appropriated 
21.28 	to the department for the operation of 
21.29 	veterans homes facilities and programs.
21.30 	Repair and Betterment. $500,000 in the 
21.31 	first year and $500,000 in the second year 
21.32 	are for repair and betterment of Minnesota 
21.33 	veterans homes.
22.1 	Maximize Federal Reimbursements. 
22.2 	The department will seek opportunities 
22.3 	to maximize federal reimbursements of 
22.4 	Medicare-eligible expenses and will provide 
22.5 	annual reports to the commissioner of 
22.6 	management and budget on the federal 
22.7 	Medicare reimbursements received. 
22.8 	Contingent upon future federal Medicare 
22.9 	receipts, reductions to the homes' general 
22.10 	fund appropriation may be made.

22.11
22.12	Sec. 38. APPROPRIATION 
CANCELLATIONS 
 					
22.13 	All unspent funds, estimated to be $44,000, 
22.14 	to implement the expedited and temporary 
22.15 	licensing provisions of Minnesota Statutes, 
22.16 	section 197.4552, under Laws 2014, chapter 
22.17 	312, article 4, section 2, subdivision 8, are 
22.18 	canceled to the general fund on June 30, 2015.
22.19 	All unspent funds, estimated to be $150,000, 
22.20 	from the Web site redevelopment project 
22.21 	appropriation under Laws 2013, chapter 
22.22 	142, article 1, section 7, are canceled to the 
22.23 	general fund on June 30, 2015.

22.24 	Sec. 39. BUDGET RESERVE INCREASE.
 22.25 	On July 1, 2015, the commissioner of management and budget shall transfer 
22.26 	$250,000,000 to the budget reserve under Minnesota Statutes, section 16A.152, 
22.27 	subdivision 1a, in the general fund.

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

22.29 	ARTICLE 2
22.30 	STATE GOVERNMENT OPERATIONS

22.31 	Section 1. Minnesota Statutes 2014, section 3.8843, subdivision 5, is amended to read:
23.1 		Subd. 5.Staff. Legislative staff must provide administrative and research assistance 
23.2 	to the commission. The Legislative Coordinating Commission may, if funding is available, 
23.3 	appoint staff to provide research assistance.

23.4 	Sec. 2. [3.9799] SENATE BUILDING APPROPRIATIONS.
23.5 		Subdivision 1.Debt service. The amount necessary to pay the principal and interest 
23.6 	components of the rental payment required under the August 1, 2014, lease-purchase 
23.7 	agreement between the Department of Administration and the Department of Management 
23.8 	and Budget for the Senate Building authorized under Laws 2013, chapter 143, article 12, 
23.9 	section 21, is annually appropriated from the general fund to the senate. This subdivision 
23.10 	is effective for the term of the lease-purchase agreement.
23.11 		Subd. 2.Operations and maintenance. (a) $1,088,000 in fiscal year 2016, 
23.12 	$2,224,000 in fiscal year 2017, $2,280,000 in fiscal year 2018, and $2,337,000 in fiscal year 
23.13 	2019 and later, are appropriated from the general fund to the senate to pay for operations 
23.14 	and maintenance costs associated with the Senate Building authorized under Laws 2013, 
23.15 	chapter 143, article 12, section 21. Notwithstanding sections 16B.04 and 16B.24, and in the 
23.16 	event that the commissioner of administration breaches any obligations under agreements 
23.17 	with the senate relating to the Senate Building, the senate may contract with other entities 
23.18 	for the provision of operations and maintenance services for the Senate Building.
23.19 	(b) By July 1 of each year beginning in 2015, the commissioner of administration 
23.20 	shall report to the chairs and ranking minority members of the legislative committees with 
23.21 	jurisdiction over the Department of Administration regarding the planned and actual uses 
23.22 	of the appropriations in paragraph (a) in the previous fiscal year and for the next biennium. 
23.23 	The report shall include information regarding the number of full-time equivalent positions 
23.24 	supported by the appropriation, including each position and the salary and benefits for that 
23.25 	position. The report must also provide a detailed accounting regarding utilities, materials, 
23.26 	supplies, and other purchases made with this appropriation, including a list of contracts for 
23.27 	any services or goods for the operation and maintenance of the Senate Building.

23.28 	EFFECTIVE DATE. This section is effective for fiscal year 2016 and later.

23.29 	Sec. 3. Minnesota Statutes 2014, section 16A.065, is amended to read:
23.30 	16A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES 
23.31 	DOCUMENTS.
23.32 	Notwithstanding section 16A.41, subdivision 1, the commissioner may allow an 
23.33 	agency to make advance deposits or payments for software or software maintenance 
24.1 	services for state-owned or leased electronic data processing equipment, for information 
24.2 	technology hosting services, for sole source maintenance agreements where it is not 
24.3 	cost-effective to pay in arrears, for exhibit booth space or boat slip rental when required 
24.4 	by the renter to guarantee the availability of space, for registration fees where advance 
24.5 	payment is required or advance payment discount is provided, and for newspaper, 
24.6 	magazine, and other subscription fees customarily paid for in advance. The commissioner 
24.7 	may also allow advance deposits by any department with the Library of Congress and 
24.8 	federal Supervisor of Documents for items to be purchased from those federal agencies.

24.9 	Sec. 4. Minnesota Statutes 2014, section 16A.1283, is amended to read:
24.10 	16A.1283 LEGISLATIVE APPROVAL REQUIRED FOR FEES.
24.11 	(a) Notwithstanding any law to the contrary, an executive branch state agency may 
24.12 	not impose a new fee or increase an existing fee unless the new fee or increase is approved 
24.13 	by law.  An agency must not propose a fee or fine increase of more than ten percent 
24.14 	in a biennium over the same fee or fine in law at the start of the same biennium. For 
24.15 	purposes of this section, a fee is any charge for goods, services, regulation, or licensure, 
24.16 	and, notwithstanding paragraph (b), clause (3), includes charges for admission to or for 
24.17 	use of public facilities owned by the state.
24.18 	(b) This section does not apply to:
24.19 	(1) charges billed within or between state agencies, or billed to federal agencies;
24.20 	(2) the Minnesota State Colleges and Universities system;
24.21 	(3) charges for goods and services provided for the direct and primary use of a 
24.22 	private individual, business, or other entity;
24.23 	(4) charges that authorize use of state-owned lands and minerals administered by 
24.24 	the commissioner of natural resources by the issuance of leases, easements, cooperative 
24.25 	farming agreements, and land and water crossing licenses and charges for sales of 
24.26 	state-owned lands administered by the commissioner of natural resources; or
24.27 	(5) state park fees and charges established by commissioner's order.
24.28 	(c) An executive branch agency may reduce a fee that was set by rule before July 
24.29 	1, 2001, without legislative approval. Chapter 14 does not apply to fee reductions under 
24.30 	this paragraph.

24.31 	EFFECTIVE DATE. This section is effective August 1, 2016.

24.32 	Sec. 5. [16B.4805] ACCOMMODATION REIMBURSEMENT.
25.1 		Subdivision 1.Definitions. "Reasonable accommodation" as used in this section 
25.2 	has the meaning given in section 363A.08. "State agency" as used in this section has the 
25.3 	meaning given in section 16A.011, subdivision 12. "Reasonable accommodations eligible 
25.4 	for reimbursement" means:
25.5 	(1) reasonable accommodations provided to applicants for employment;
25.6 	(2) reasonable accommodations for employees for services that will need to be 
25.7 	provided on a periodic or ongoing basis; or
25.8 	(3) reasonable accommodations that involve onetime expenses that total more than 
25.9 	$1,000 for an employee in a fiscal year.
25.10 		Subd. 2.Reimbursement for making reasonable accommodation. The 
25.11 	commissioner of administration shall reimburse state agencies for expenses incurred in 
25.12 	making reasonable accommodations eligible for reimbursement for agency employees and 
25.13 	applicants for employment to the extent that funds are available in the accommodation 
25.14 	account established under subdivision 3 for this purpose.
25.15 		Subd. 3.Accommodation account established. The accommodation account 
25.16 	is created as an account in the special revenue fund for reimbursing state agencies for 
25.17 	expenses incurred in providing reasonable accommodation eligible for reimbursement for 
25.18 	agency employees and applicants for agency employment.
25.19 		Subd. 4.Administration costs. The commissioner may use up to 15 percent of the 
25.20 	biennial appropriation for administration of this section.
25.21 		Subd. 5.Notification. By August 1, 2015, or within 30 days of final enactment, 
25.22 	whichever is later, and each year thereafter by June 30, the commissioner of administration 
25.23 	must notify state agencies that reimbursement for expenses incurred to make reasonable 
25.24 	accommodation eligible for reimbursement for agency employees and applicants for 
25.25 	agency employment is available under this section.
25.26 		Subd. 6.Report. By January 31 of each year, the commissioner of administration 
25.27 	must report to the chairs and ranking minority members of the house of representatives and 
25.28 	the senate committees with jurisdiction over state government finance on the use of the 
25.29 	central accommodation account during the prior calendar year. The report must include:
25.30 	(1) the number and type of accommodations requested;
25.31 	(2) the cost of accommodations requested;
25.32 	(3) the state agencies from which the requests were made;
25.33 	(4) the number of requests made for employees and the number of requests for 
25.34 	applicants for employment;
25.35 	(5) the number and type of accommodations that were not provided;
25.36 	(6) any remaining balance left in the account;
26.1 	(7) if the account was depleted, the date on which funds were exhausted and the 
26.2 	number, type, and cost of accommodations that were not reimbursed to state agencies; and
26.3 	(8) a description of how the account was promoted to state agencies.

26.4 	EFFECTIVE DATE. This section is effective July 1, 2015. Reimbursement is 
26.5 	available for accommodation expenses incurred after June 30, 2015.

26.6 	Sec. 6. Minnesota Statutes 2014, section 16B.97, subdivision 1, is amended to read:
26.7 		Subdivision 1.Grant agreement. (a) A grant agreement is a written instrument or 
26.8 	electronic document defining a legal relationship between a granting agency and a grantee 
26.9 	when the principal purpose of the relationship is to transfer cash or something of value 
26.10 	to the recipient to support a public purpose authorized by law instead of acquiring by 
26.11 	professional or technical contract, purchase, lease, or barter property or services for the 
26.12 	direct benefit or use of the granting agency.
26.13 	(b) This section does not apply to general obligation grants as defined by section 
26.14 	16A.695 and capital project grants to political subdivisions as defined by section 16A.86.

26.15 	Sec. 7. Minnesota Statutes 2014, section 16B.98, subdivision 1, is amended to read:
26.16 		Subdivision 1.Limitation. (a) As a condition of receiving a grant from 
26.17 	an appropriation of state funds, the recipient of the grant must agree to minimize 
26.18 	administrative costs. The granting agency is responsible for negotiating appropriate limits 
26.19 	to these costs so that the state derives the optimum benefit for grant funding.
26.20 	(b) This section does not apply to general obligation grants as defined by section 
26.21 	16A.695 and also capital project grants to political subdivisions as defined by section 
26.22 	16A.86.

26.23 	Sec. 8. Minnesota Statutes 2014, section 16B.98, subdivision 11, is amended to read:
26.24 		Subd. 11.Encumbrance exception. Notwithstanding subdivision 5, paragraph (a), 
26.25 	clause (2), or section 16C.05, subdivision 2, paragraph (a), clause (3), agencies may 
26.26 	permit a specifically named, legislatively appropriated, noncompetitive grant recipient to 
26.27 	incur eligible expenses based on an agreed upon work plan and budget for up to 60 days 
26.28 	prior to an encumbrance being established in the accounting system. For a grant funded 
26.29 	in whole or in part with state general obligation bond proceeds, an agency may permit 
26.30 	incurring of expenses under this subdivision only with prior approval of the commissioner 
26.31 	of management and budget.

27.1 	Sec. 9. Minnesota Statutes 2014, section 16C.144, is amended to read:
27.2 	16C.144 GUARANTEED ENERGY-SAVINGS PROGRAM.
27.3 		Subdivision 1.Definitions. The following definitions apply to this section.
27.4 	(a) "Utility" means electricity, natural gas, or other energy resource, water, and 
27.5 	wastewater.
27.6 	(b) "Utility cost savings" means the difference between the utility costs after 
27.7 	installation of the utility cost-savings measures pursuant to the guaranteed energy-savings 
27.8 	agreement and the baseline utility costs after baseline adjustments have been made.
27.9 	(c) "Baseline" means the preagreement utilities, operations, and maintenance costs.
27.10 	(d) "Utility cost-savings measure" means a measure that produces utility cost savings 
27.11 	or operation and maintenance cost savings.
27.12 	(e) "Operation and maintenance cost savings" means a measurable difference 
27.13 	between operation and maintenance costs after the installation of the utility cost-savings 
27.14 	measures pursuant to the guaranteed energy-savings agreement and the baseline operation 
27.15 	and maintenance costs after inflation adjustments have been made. Operation and 
27.16 	maintenance costs savings shall not include savings from in-house staff labor.
27.17 	(f) "Guaranteed energy-savings agreement" means an agreement for the installation 
27.18 	of one or more utility cost-savings measures that includes the qualified provider's 
27.19 	guarantee as required under subdivision 2.
27.20 	(g) "Baseline adjustments" means adjusting the utility cost-savings baselines 
27.21 	annually for changes in the following variables:
27.22 	(1) utility rates;
27.23 	(2) number of days in the utility billing cycle;
27.24 	(3) square footage of the facility;
27.25 	(4) operational schedule of the facility;
27.26 	(5) facility temperature set points;
27.27 	(6) weather; and
27.28 	(7) amount of equipment or lighting utilized in the facility.
27.29 	(h) "Inflation adjustment" means adjusting the operation and maintenance 
27.30 	cost-savings baseline annually for inflation.
27.31 	(i) "Lease purchase agreement Project financing" means an agreement any type of 
27.32 	financing including but not limited to lease, lease purchase, installment agreements, or 
27.33 	bonds issued by an entity, other than the state, with authority to issue bonds, obligating the 
27.34 	state to make regular lease payments to satisfy the lease costs of the utility cost-savings 
27.35 	measures until the final payment, after which time the utility cost-savings measures 
27.36 	become the sole property of the state of Minnesota.
28.1 	(j) "Qualified provider" means a person or business experienced in the design, 
28.2 	implementation, and installation of utility cost-savings measures.
28.3 	(k) "Engineering report" means a report prepared by a professional engineer licensed 
28.4 	by the state of Minnesota summarizing estimates of all costs of installations, modifications, 
28.5 	or remodeling, including costs of design, engineering, installation, maintenance, repairs, 
28.6 	and estimates of the amounts by which utility and operation and maintenance costs will be 
28.7 	reduced.
28.8 	(l) "Capital cost avoidance" means money expended by a state agency to pay for 
28.9 	utility cost-savings measures with a guaranteed savings agreement so long as the measures 
28.10 	that are being implemented to achieve the utility, operation, and maintenance cost savings 
28.11 	are a significant portion of an overall project as determined by the commissioner.
28.12 	(m) "Guaranteed energy-savings program guidelines" means policies, procedures, 
28.13 	and requirements of guaranteed savings agreements established by the Department of 
28.14 	Administration.
28.15 		Subd. 2.Guaranteed energy-savings agreement. The commissioner may enter 
28.16 	into a guaranteed energy-savings agreement with a qualified provider if:
28.17 	(1) the qualified provider is selected through a competitive process in accordance 
28.18 	with the guaranteed energy-savings program guidelines within the Department of 
28.19 	Administration;
28.20 	(2) the qualified provider agrees to submit an engineering report prior to the 
28.21 	execution of the guaranteed energy-savings agreement. The cost of the engineering report 
28.22 	may be considered as part of the implementation costs if the commissioner enters into a 
28.23 	guaranteed energy-savings agreement with the provider;
28.24 	(3) the term of the guaranteed energy-savings agreement shall not exceed 25 years 
28.25 	from the date of final installation;
28.26 	(4) the commissioner finds that the amount it the state  would spend, less the amount 
28.27 	contributed for capital cost avoidance, on the utility cost-savings measures recommended 
28.28 	in the engineering report will not exceed the amount to be saved in utility operation and 
28.29 	maintenance costs over 25 years from the date of implementation of utility cost-savings 
28.30 	measures;
28.31 	(5) the qualified provider provides a written guarantee that the annual utility, 
28.32 	operation, and maintenance cost savings during the term of the guaranteed energy-savings 
28.33 	agreement will meet or exceed the annual payments due under a lease purchase agreement 
28.34 	the project financing. The qualified provider shall reimburse the state for any shortfall of 
28.35 	guaranteed utility, operation, and maintenance cost savings; and
29.1 	(6) the qualified provider gives a sufficient bond in accordance with section 
29.2 	574.26 to the commissioner for the faithful implementation and installation of the utility 
29.3 	cost-savings measures.
29.4 		Subd. 3.Lease purchase agreement Project financing. The commissioner 
29.5 	may enter into a lease purchase agreement project financing with any party for the 
29.6 	implementation of utility cost-savings measures in accordance with the guaranteed 
29.7 	energy-savings agreement. The implementation costs of the utility cost-savings measures 
29.8 	recommended in the engineering report shall not exceed the amount to be saved in utility 
29.9 	and operation and maintenance costs over the term of the lease purchase agreement. The 
29.10 	term of the lease purchase agreement project financing shall not exceed 25 years from 
29.11 	the date of final installation. The lease project financing is assignable in accordance with 
29.12 	terms approved by the commissioner of management and budget.
29.13 		Subd. 4.Use of capital cost avoidance. The affected state agency may contribute 
29.14 	funds for capital cost avoidance for guaranteed energy-savings agreements. Use of capital 
29.15 	cost avoidance is subject to the guaranteed energy-savings program guidelines within the 
29.16 	Department of Administration.
29.17 		Subd. 5.Independent report.  For each guaranteed energy-savings agreement 
29.18 	entered into, the commissioner of administration shall contract with an independent third 
29.19 	party to evaluate the cost-effectiveness of each utility cost-savings measure implemented 
29.20 	to ensure that such measures were the least-cost measures available. For the purposes of 
29.21 	this section, "independent third party" means an entity not affiliated with the qualified 
29.22 	provider, that is not involved in creating or providing conservation project services to that 
29.23 	provider, and that has expertise (or access to expertise) in energy-savings practices.

29.24 	Sec. 10. Minnesota Statutes 2014, section 16C.16, subdivision 2, is amended to read:
29.25 		Subd. 2.Small business. The commissioner shall adopt rules defining the size 
29.26 	standards for "small business" found in Code of Federal Relations, title 49, section 
29.27 	26.65, for purposes of sections 16C.16 to 16C.21, 137.31, 137.35, 161.321, and 473.142. 
29.28 	The definition must include only businesses with their, provided that the business has 
29.29 	its principal place of business in Minnesota. The definition must establish different 
29.30 	size standards for various types of businesses. In establishing these standards, the 
29.31 	commissioner must consider the differences among industries caused by the size of the 
29.32 	market for goods or services and the relative size and market share of the competitors 
29.33 	operating in those markets.

30.1 	Sec. 11. Minnesota Statutes 2014, section 16C.16, is amended by adding a subdivision 
30.2 	to read:
30.3 		Subd. 13.State-funded projects. (a) Notwithstanding section 16C.001, this 
30.4 	subdivision applies to contracts for state-funded capital improvement projects in excess of 
30.5 	$100,000 that are issued by organizations not subject to the small business requirements of 
30.6 	this section, including municipalities as defined in section 466.01, subdivision 1.
30.7 	(b) Organizations administering contracts described in paragraph (a) shall promote 
30.8 	the use of targeted group businesses designated under this section and take steps to remove 
30.9 	barriers to equitable participation of targeted group businesses.
30.10 	(c) Organizations shall cooperate with the commissioner's efforts to monitor and 
30.11 	measure compliance with this subdivision in the performance of state-funded contracts.

30.12 	Sec. 12. Minnesota Statutes 2014, section 16C.19, is amended to read:
30.13 	16C.19 ELIGIBILITY; RULES.
30.14 	(a) A small business wishing to participate in the programs under section 16C.16, 
30.15 	subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt 
30.16 	by rule standards and procedures for certifying that small targeted group businesses, 
30.17 	small businesses located in economically disadvantaged areas, and veteran-owned small 
30.18 	businesses are eligible to participate under the requirements of sections 16C.16 to 16C.21. 
30.19 	The commissioner shall adopt by rule standards and procedures for hearing appeals and 
30.20 	grievances and other rules necessary to carry out the duties set forth in sections 16C.16
30.21 	to 16C.21.
30.22 	(b) The commissioner may make rules which exclude or limit the participation of 
30.23 	nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers, 
30.24 	manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
30.25 	(c) The commissioner may make rules that set time limits and other eligibility limits 
30.26 	on business participation in programs under sections 16C.16 to 16C.21.
30.27 	(d) Notwithstanding paragraph (c) (a), for purposes of sections 16C.16 to 16C.21, a 
30.28 	veteran-owned small business, the principal place of business of which is in Minnesota, is 
30.29 	certified if it has been verified by the United States Department of Veterans Affairs as being 
30.30 	either a veteran-owned small business or a service-disabled veteran-owned small business, 
30.31 	in accordance with Public Law 109-461 and Code of Federal Regulations, title 38, part 74.
30.32 	(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying 
30.33 	veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may 
30.34 	be read to include veteran-owned small businesses. In addition to the documentation 
30.35 	required in Minnesota Rules, part 1230.1700, the veteran owner must have been 
31.1 	discharged under honorable conditions from active service, as indicated by the veteran 
31.2 	owner's most current United States Department of Defense form DD-214.
31.3 	(f) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a 
31.4 	minority- or woman-owned small business, the principal place of business of which is 
31.5 	in Minnesota, is certified if it has been certified under the provisions of Code of Federal 
31.6 	Regulations, title 49, part 26.
31.7 	(g) The commissioner may adopt rules to implement the programs under section 
31.8 	16C.16, subdivisions 4 to 7, using the expedited rulemaking process in section 14.389.

31.9 	Sec. 13. Minnesota Statutes 2014, section 155A.21, is amended to read:
31.10 	155A.21 POLICY.
31.11 	The legislature finds that the health and safety of the people of the state are served 
31.12 	by the licensing of the practice of cosmetology because of  infection control and the use 
31.13 	of chemicals, implements, apparatus, and other appliances requiring special skills and 
31.14 	education.
31.15 	To this end, the public will best be served by vesting these responsibilities in the 
31.16 	Board of Cosmetologist Examiners.

31.17 	Sec. 14. Minnesota Statutes 2014, section 155A.23, subdivision 8, is amended to read:
31.18 		Subd. 8.Manager. A "manager" is any person who conducts, operates, or manages 
31.19 	a cosmetology school or salon and who also instructs in or is a cosmetologist, esthetician, 
31.20 	advanced practice esthetician, or nail technician practitioner, and who has a manager 
31.21 	license and  provides any services under that license, as defined in subdivision 3. A school 
31.22 	manager must maintain an active salon manager's license.

31.23 	Sec. 15. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
31.24 	subdivision to read:
31.25 		Subd. 8a.Mobile salon.  A "mobile salon" is a salon that is operated in a mobile 
31.26 	vehicle or mobile structure for exclusive use to offer personal services, as defined in 
31.27 	subdivision 3.

31.28 	EFFECTIVE DATE. This section is effective July 1, 2017.

31.29 	Sec. 16. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
31.30 	subdivision to read:
32.1 		Subd. 14.Advanced practice esthetician. An "advanced practice esthetician" is a 
32.2 	person who for compensation performs personal services for the cosmetic care of the skin, 
32.3 	including the use of mechanical or electrical skin care apparatuses or appliances that are 
32.4 	used on the epidermal layer of the skin.

32.5 	EFFECTIVE DATE. This section is effective August 1, 2015, except that a license 
32.6 	for an advanced practice esthetician must not be issued prior to January 1, 2018.

32.7 	Sec. 17. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
32.8 	subdivision to read:
32.9 		Subd. 15.Designated licensed salon manager. A "designated licensed salon 
32.10 	manager" is a manager designated by a salon owner and registered with the board, who is 
32.11 	responsible with the salon owner for salon and practitioner compliance.

32.12 	Sec. 18. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
32.13 	subdivision to read:
32.14 		Subd. 16.School manager. A "school manager" is a cosmetologist who is a salon 
32.15 	manager and who has a school manager license. A school manager must maintain an 
32.16 	active salon manager's license.

32.17 	Sec. 19. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
32.18 	subdivision to read:
32.19 		Subd. 17.Designated school manager. A "designated school manager" is a school 
32.20 	manager who is designated by the school owner and registered with the board, who is 
32.21 	responsible with the school owner for school and instructor compliance.

32.22 	Sec. 20. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
32.23 	subdivision to read:
32.24 		Subd. 18.Practitioner. A "practitioner" is any person licensed in the practice of 
32.25 	cosmetology, esthiology, or nail technology services.

32.26 	Sec. 21. Minnesota Statutes 2014, section 155A.24, subdivision 2, is amended to read:
32.27 		Subd. 2.Hiring and assignment of employees. The board has the authority to hire 
32.28 	qualified personnel in the classified service to assist in administering the law, including 
32.29 	those for the testing and licensing of applicants and the continuing inspections required. 
32.30 	All staff must receive periodic training to improve and maintain customer service skills, 
32.31 	conducting inspections, and complaint investigations.

33.1 	Sec. 22. Minnesota Statutes 2014, section 155A.25, subdivision 1a, is amended to read:
33.2 		Subd. 1a.Schedule. (a) The fee schedule for licensees fees and penalties is as 
33.3 	follows: provided in this subdivision.
33.4 	(a) (b) Three-year license fees are as follows:
33.5 	(1) cosmetologist, nail technician, or esthetician $195 initial practitioner, manager, 
33.6 	or instructor license, divided as follows:
33.7 	(i) $90$155 for each initial license and a $40 nonrefundable initial license 
33.8 	application fee, for a total of $130; and
33.9 	(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for a total 
33.10 	of $75 $40 for each initial license application fee;
33.11 	(2) instructor or manager $115 renewal of practitioner license, divided as follows:
33.12 	(i) $120 $100 for each initial renewal license and a $40 nonrefundable initial license 
33.13 	application fee, for a total of $160; and
33.14 	(ii) $90 $15 for each renewal and a $15 nonrefundable renewal application fee, 
33.15 	for a total of $105;
33.16 	(3) $145 renewal of manager or instructor license, divided as follows:
33.17 	(i) $130 for each renewal license; and
33.18 	(ii) $15 for each renewal application fee;
33.19 	(4) $350 initial salon license, divided as follows:
33.20 	(i) $130 $250 for each initial license and a $100 nonrefundable initial license 
33.21 	application fee, for a total of $230; and
33.22 	(ii) $100 for each renewal and a $50 nonrefundable renewal initial license 
33.23 	application fee, for a total of $150; and
33.24 	(4) school (5) $225 renewal of salon license, divided as follows:
33.25 	(i) $1,500 $175 for each initial license and a $1,000 nonrefundable initial license 
33.26 	application fee, for a total of $2,500 renewal; and
33.27 	(ii) $1,500 $50 for each renewal and a $500 nonrefundable renewal application 
33.28 	fee, for a total of $2,000;
33.29 	(6) $4,000 initial school license, divided as follows:
33.30 	(i) $3,000 for each initial license; and
33.31 	(ii) $1,000 for each initial license application fee; and
33.32 	(7) $2,500 renewal of school license, divided as follows:
33.33 	(i) $2,000 for each renewal; and
33.34 	(ii) $500 for each renewal application fee.
33.35 	(b) (c) Penalties may be assessed in amounts up to the following:
33.36 	(1) reinspection fee, variable $150;
34.1 	(2) manager and owner with lapsed practitioner found on inspection, $150 each;
34.2 	(3) lapsed practitioner or instructor found on inspection, $200;
34.3 	(4) lapsed salon found on inspection, $500;
34.4 	(5) lapsed school found on inspection, $1,000;
34.5 	(6) failure to display current license, $100;
34.6 	(7) failure to dispose of single-use equipment, implements, or materials as provided 
34.7 	under section 155A.355, subdivision 1, $500;
34.8 	(8) use of prohibited razor-type callus shavers, rasps, or graters under section 
34.9 	155A.355, subdivision 2, $500;
34.10 	(9) performing nail or cosmetology services in esthetician salon, or performing 
34.11 	esthetician or cosmetology services in a nail salon, $500;
34.12 	(10) owner and manager allowing an operator to work as an independent contractor, 
34.13 	$200;
34.14 	(11) operator working as an independent contractor, $100;
34.15 	(12) refusal or failure to cooperate with an inspection, $500;
34.16 	(13) expired cosmetologist, nail technician, esthetician, manager, school manager, 
34.17 	and instructor license practitioner late renewal fee, $45; and
34.18 	(14) expired salon or school license late renewal fee, $50.
34.19 	(c) (d) Administrative fees are as follows:
34.20 	(1) certificate of identification, $20 homebound service permit, $50 three-year fee;
34.21 	(2) name change, $20;
34.22 	(3) letter of license verification certification of licensure, $30 each;
34.23 	(4) duplicate license, $20;
34.24 	(5) processing fee, $10;
34.25 	(6) special event permit, $75 per year; and
34.26 	(7) (6) registration of hair braiders, $20 per year;
34.27 	(7) $100 for each temporary military license for a cosmetologist, nail technician, 
34.28 	esthetician, or advanced practice esthetician one-year fee;
34.29 	(8) expedited initial individual license, $150;
34.30 	(9) expedited initial salon license, $300;
34.31 	(10) instructor continuing education provider approval, $150 each year; and
34.32 	(11) practitioner continuing education provider approval, $150 each year.

34.33 	Sec. 23. Minnesota Statutes 2014, section 155A.25, subdivision 5, is amended to read:
34.34 		Subd. 5.Board must approve or deny application; timeline. Within 15 working 
34.35 	days of receiving a complete application and the required fees for an initial or renewal 
35.1 	to apply for or renew an  individual or salon license that is not an expedited license or a 
35.2 	military license, the board must (1) either grant or deny the application issue the license, 
35.3 	(2) issue deny the license or and notify the applicant of the denial, or (3) issue a temporary 
35.4 	license to an applicant for whom no record exists regarding: (i) a complaint filed with the 
35.5 	board against the applicant; or (ii) a negative action by the board against the applicant if 
35.6 	the conditions in subdivision 6 are met, notify the applicant that the board must conduct 
35.7 	additional review.

35.8 	Sec. 24. Minnesota Statutes 2014, section 155A.25, is amended by adding a 
35.9 	subdivision to read:
35.10 		Subd. 6.Additional review for certain licenses. If an application contains 
35.11 	discrepancies, the applicant is the subject of a complaint investigation, or the applicant 
35.12 	has pending disciplinary actions before the board, the board will comply with the time 
35.13 	limits prescribed in section 15.992 to process the application.

35.14 	Sec. 25. Minnesota Statutes 2014, section 155A.25, is amended by adding a 
35.15 	subdivision to read:
35.16 		Subd. 7.Temporary military license or expedited license. Within five business 
35.17 	days of receiving a completed application and the required fees for an individual or salon 
35.18 	license that meets requirements for an expedited license or a temporary military license, 
35.19 	the board must (1) issue the license, (2) deny the license and notify the applicant of the 
35.20 	denial, or (3) notify the applicant that the board must conduct additional review if the 
35.21 	application meets the conditions in subdivision 8.

35.22 	EFFECTIVE DATE. This section is effective August 1, 2015, except that an 
35.23 	expedited license must not be issued prior to January 1, 2016.

35.24 	Sec. 26. Minnesota Statutes 2014, section 155A.25, is amended by adding a 
35.25 	subdivision to read:
35.26 		Subd. 8.Additional review for certain temporary military license or expedited 
35.27 	license. If an application under subdivision 7 contains discrepancies, the applicant is the 
35.28 	subject of a complaint investigation, or the applicant has pending disciplinary actions 
35.29 	before the board, the board will process the application according to the time limits in 
35.30 	section 15.992.

35.31 	Sec. 27. Minnesota Statutes 2014, section 155A.27, subdivision 1, is amended to read:
36.1 		Subdivision 1.Licensing. Individual licensing shall be required for persons seeking 
36.2 	A person must hold an individual license  to practice in the state as a cosmetologist, 
36.3 	esthetician, nail technician,  advanced practice esthetician, manager, or instructor.

36.4 	Sec. 28. Minnesota Statutes 2014, section 155A.27, subdivision 2, is amended to read:
36.5 		Subd. 2.Qualifications. Qualifications for licensing in each classification shall 
36.6 	be determined by the board and established by rule, and shall include educational 
36.7 	and experiential prerequisites. The rules shall require a demonstrated knowledge of 
36.8 	procedures necessary to protect the health  and safety of the practitioner and the consumer 
36.9 	of cosmetology services, including but not limited to chemical applications infection 
36.10 	control, use of implements, apparatuses and other appliances, and the use of chemicals.

36.11 	Sec. 29. Minnesota Statutes 2014, section 155A.27, subdivision 5a, is amended to read:
36.12 		Subd. 5a.Temporary military license. The board shall establish temporary 
36.13 	licenses for a cosmetologist, nail technician, and esthetician in accordance with section 
36.14 	197.4552. The fee for a temporary license under this subdivision for a cosmetologist, nail 
36.15 	technician, or esthetician is $100.

36.16 	Sec. 30. Minnesota Statutes 2014, section 155A.271, is amended to read:
36.17 	155A.271 CONTINUING EDUCATION REQUIREMENTS.
36.18 		Subdivision 1.Continuing education requirements. (a) Effective August 1, 2014, 
36.19 	to qualify for license renewal under this chapter as an individual cosmetologist, nail 
36.20 	technician, esthetician, advanced practice esthetician, or salon manager, the applicant 
36.21 	must attest to the completion of four hours of continuing education credits from an 
36.22 	accredited school or a professional association of cosmetology during the three years 
36.23 	prior to the applicant's renewal date. One credit hour of the requirement must include 
36.24 	instruction pertaining to state laws and rules governing the practice of cosmetology. Three 
36.25 	credit hours must include instruction pertaining to health, safety, and sanitation matters 
36.26 	consistent with the United States Department of Labor's Occupational Safety and Health 
36.27 	Administration standards applicable to the practice of cosmetology, or other applicable 
36.28 	federal health, sanitation, and safety standards, and must be regularly updated so as to 
36.29 	incorporate newly developed standards and accepted professional best practices. Credit 
36.30 	hours earned are valid for three years and may be applied simultaneously to all individual 
36.31 	licenses held by a licensee under this chapter. This subdivision does not apply to 
36.32 	instructors or inactive licenses.
37.1 	(b) Effective August 1, 2017, in addition to the hours of continuing education credits 
37.2 	required under paragraph (a), to qualify for license renewal under this chapter as an 
37.3 	individual cosmetologist, nail technician, esthetician, advanced practice esthetician, or 
37.4 	salon manager, the applicant must also attest to the completion of one four-hour continuing 
37.5 	education course from a continuing education provider based on any or all of the following:
37.6 	(1) product chemistry and chemistry interaction;
37.7 	(2) proper use of machines and instruments;
37.8 	(3) business management and human relations; or
37.9 	(4) techniques relevant to the type of license held.
37.10 	Credits must be completed during the three years prior to the applicant's renewal date and 
37.11 	may be applied simultaneously to other individual licenses held as applicable, except 
37.12 	that credits completed under this paragraph must not duplicate credits completed under 
37.13 	paragraph (a).
37.14 	(c) Paragraphs (a) and (b) do not apply to an instructor license, a school manager 
37.15 	license, or an inactive license.
37.16 		Subd. 1a.Product sales or marketing prohibited. The marketing or sale of 
37.17 	any product is prohibited during a continuing education class receiving credit under 
37.18 	subdivision 1.
37.19 		Subd. 2.Schools and professional associations Continuing education providers.
 37.20 	(a) Only a board-licensed school of cosmetology, a postsecondary institution as defined in 
37.21 	section 136A.103, paragraph (a), or a board-recognized professional association organized 
37.22 	under chapter 317A may offer continuing education curriculum for credit under this 
37.23 	section.subdivision 1, paragraph (a). Continuing education curriculum under subdivision 
37.24 	1, paragraph (b), may be offered by a:
37.25 	(1) board-licensed school of cosmetology;
37.26 	(2) board-recognized professional association organized under chapter 317A; or
37.27 	(3) board-licensed salon.
37.28 	The school and professional association may offer online and independent study 
37.29 	options to achieve maximum involvement of licensees and is. Continuing education 
37.30 	providers are encouraged to offer classes available in foreign language formats.
37.31 	(b) Board recognition authorization of a professional association continuing 
37.32 	education provider under paragraph (a) is valid for three years one calendar year and is 
37.33 	contingent upon submission and preapproval of the general curriculum lesson plan or 
37.34 	plans with learning objectives for the class to be offered and the payment of the application 
37.35 	fee in section 155A.25, subdivision 1a, paragraph (d), clause (11). The board may revoke 
37.36 	recognition authorization of a continuing education provider at any time for just cause and 
38.1 	the board may demand return of documents required under subdivision 3. The professional 
38.2 	association offering continuing education must be organized under chapter 317A.
38.3 		Subd. 3.Proof of credits. The school or professional associationcontinuing 
38.4 	education provider shall provide to licensees who attend a class a receipt to prove 
38.5 	completion of the class. Licensees shall retain proof of their continuing education credits 
38.6 	for one year beyond the credit's expiration. The school or professional association 
38.7 	continuing education provider shall retain documentation of all licensees successfully 
38.8 	completing a class and the licensee's credit hours for five years.
38.9 		Subd. 4.Audit. The board shall conduct random audits of active licensees 
38.10 	periodically to ensure compliance with continuing education requirements. To initiate 
38.11 	an audit, the board shall notify an active licensee of the audit and request proof of 
38.12 	credits earned during a specified period. The licensee must provide the requested proof 
38.13 	to the board within 30 days of an audit notice. The board may request that a school or 
38.14 	professional association verify a licensee's credits. The school or professional association 
38.15 	continuing education provider must furnish verification, or a written statement that the 
38.16 	credits are not verified, within 15 days of the board's request for verification. If the board 
38.17 	determines that a licensee has failed to provide proof of necessary credits earned during 
38.18 	the specified time, the board may revoke the individual's license and may deem the 
38.19 	individual a lapsed practitioner subject to penalty under section 155A.25 or 155A.36.

38.20 	EFFECTIVE DATE. Subdivision 1 is effective August 1, 2017. Subdivision 1a is 
38.21 	effective the day following final enactment. Subdivisions 2 to 4 are effective July 1, 2015.

38.22 	Sec. 31. Minnesota Statutes 2014, section 155A.29, subdivision 1, is amended to read:
38.23 		Subdivision 1.Licensing. Any A person who offers must not offer cosmetology 
38.24 	services for compensation in this state shall be (1) licensed as a salon if not employed by 
38.25 	another licensed salon or (2) employed as an esthetician or cosmetologist in connection 
38.26 	with medical care in relation to esthiology in the office of a licensed physician unless the 
38.27 	services are provided by a licensee in a licensed salon or as otherwise provided in this 
38.28 	section. Each salon must be licensed as a cosmetology salon, a nail salon, esthetician 
38.29 	salon, or advanced practice esthetician salon. A salon may hold more than one type of 
38.30 	salon license.

38.31 	Sec. 32. Minnesota Statutes 2014, section 155A.29, subdivision 2, is amended to read:
38.32 		Subd. 2.Requirements. (a) The conditions and process by which a salon is licensed 
38.33 	shall be established by the board by rule. In addition to those requirements, no license 
39.1 	shall be issued unless the board first determines that the conditions in clauses (1) to (5) 
39.2 	have been satisfied:
39.3 	(1) compliance with all local and state laws, particularly relating to matters of 
39.4 	sanitation, health, and safety;
39.5 	(2) the employment of a manager, as defined in section 155A.23, subdivision 8;
39.6 	(3) if applicable, evidence of compliance with workers' compensation section 
39.7 	176.182; and
39.8 	(4) evidence of continued professional liability insurance coverage of at least 
39.9 	$25,000 for each claim and $50,000 total coverage for each policy year for each operator.
39.10 	(b) A licensed esthetician or nail technician who complies with the health, safety, 
39.11 	sanitation, inspection, and insurance rules promulgated by the board to operate a salon 
39.12 	solely for the performance of those personal services defined in section 155A.23, 
39.13 	subdivision 5, in the case of an esthetician, or subdivision 7, in the case of a nail technician.

39.14 	Sec. 33. Minnesota Statutes 2014, section 155A.29, is amended by adding a 
39.15 	subdivision to read:
39.16 		Subd. 2a.Requirements for mobile salon. In addition to complying with the 
39.17 	requirements for a salon in subdivision 2, the holder of a salon license for a mobile salon 
39.18 	must:
39.19 	(1) maintain a permanent business address; and
39.20 	(2) notify the board of the locations and schedule of operation of a mobile salon.

39.21 	EFFECTIVE DATE. This section is effective July 1, 2017.

39.22 	Sec. 34. Minnesota Statutes 2014, section 155A.30, subdivision 5, is amended to read:
39.23 		Subd. 5.Conditions precedent to issuance. A license must not be issued unless the 
39.24 	board first determines that the applicant has met the requirements in clauses (1) to (8).:
39.25 	(1) the applicant must have a sound financial condition with sufficient resources 
39.26 	available to meet the school's financial obligations; to refund all tuition and other charges, 
39.27 	within a reasonable period of time, in the event of dissolution of the school or in the event 
39.28 	of any justifiable claims for refund against the school; to provide adequate service to its 
39.29 	students and prospective students; and to maintain proper use and support of the school.;
39.30 	(2) the applicant must have satisfactory training facilities with sufficient tools and 
39.31 	equipment and the necessary number of work stations to adequately train the students 
39.32 	currently enrolled, and those proposed to be enrolled.;
39.33 	(3) the applicant must employ a sufficient number of qualified instructors trained by 
39.34 	experience and education to give the training contemplated.;
40.1 	(4) the premises and conditions under which the students work and study must be 
40.2 	sanitary, healthful, and safe according to modern standards.;
40.3 	(5) each occupational course or program of instruction or study must be of such 
40.4 	quality and content as to provide education and training which that will adequately prepare 
40.5 	enrolled students for testing, licensing, and entry level positions as a cosmetologist, 
40.6 	esthetician, or nail technician.;
40.7 	(6) the school must have coverage by professional liability insurance of at least 
40.8 	$25,000 per incident and an accumulation of $150,000 for each premium year.;
40.9 	(7) the applicant shall provide evidence of the school's compliance with section 
40.10 	176.182.;
40.11 	(8) the applicant, except the state and its political subdivisions as described in 
40.12 	section 471.617, subdivision 1, shall file with the board a continuous corporate surety 
40.13 	bond in the amount of $10,000, conditioned upon the faithful performance of all contracts 
40.14 	and agreements with students made by the applicant. The bond shall run to the state of 
40.15 	Minnesota and to any person who may have a cause of action against the applicant arising 
40.16 	at any time after the bond is filed and before it is canceled for breach of any contract or 
40.17 	agreement made by the applicant with any student. The aggregate liability of the surety for 
40.18 	all breaches of the conditions of the bond shall not exceed $10,000. The surety of the bond 
40.19 	may cancel it upon giving 60 days' notice in writing to the board and shall be relieved of 
40.20 	liability for any breach of condition occurring after the effective date of cancellation; and
40.21 	(9) the applicant must, at all times during the term of the license, employ a 
40.22 	designated licensed school manager who maintains a cosmetology salon manager license.

40.23 	Sec. 35. Minnesota Statutes 2014, section 155A.30, subdivision 10, is amended to read:
40.24 		Subd. 10.Discrimination prohibited. No Each school, duly approved under 
40.25 	sections 155A.21 to 155A.36, shall refuse to teach any student, otherwise qualified, on 
40.26 	account of race, sex, creed, color, citizenship, national origin, or sexual preference must 
40.27 	comply with the Minnesota Human Rights Act under chapter 363A.

40.28 	Sec. 36. Minnesota Statutes 2014, section 161.1419, subdivision 8, is amended to read:
40.29 		Subd. 8.Expiration. The commission expires on June 30, 2016 2020.

40.30 	Sec. 37. Minnesota Statutes 2014, section 211B.37, is amended to read:
40.31 	211B.37 COSTS ASSESSED.
40.32 	Except as otherwise provided in section 211B.36, subdivision 3, the chief 
40.33 	administrative law judge shall assess the cost of considering complaints filed under section 
41.1 	211B.32 as provided in this section. Costs of complaints relating to a statewide ballot 
41.2 	question or an election for a statewide or legislative office must be assessed against the 
41.3 	appropriation from the general fund to the general account of the state elections campaign 
41.4 	account in section 10A.31, subdivision 4 paid from appropriations to the Office of 
41.5 	Administrative Hearings for this purpose. Costs of complaints relating to any other ballot 
41.6 	question or elective office must be paid from appropriations to the office for this purpose.

41.7 	Sec. 38. Minnesota Statutes 2014, section 240A.09, is amended to read:
41.8 	240A.09 PLAN DEVELOPMENT; CRITERIA.
41.9 	The Minnesota Amateur Sports Commission shall develop a plan to promote the 
41.10 	development of proposals for new statewide public ice facilities including proposals for 
41.11 	ice centers and matching grants based on the criteria in this section.
41.12 	(a) For ice center proposals, the commission will give priority to proposals that 
41.13 	come from more than one local government unit. Institutions of higher education are not 
41.14 	eligible to receive a grant.
41.15 	(b) The commission must give priority to grant applications for indoor air quality 
41.16 	improvements and projects that eliminate R-22. For purposes of this section:
41.17 	(1) "indoor air quality improvements" means: (i) renovation or replacement of 
41.18 	heating, ventilating, and air conditioning systems in existing indoor ice arenas whose 
41.19 	ice resurfacing and ice edging equipment are not powered by electricity in order to 
41.20 	reduce concentrations of carbon monoxide and nitrogen dioxide; and (ii) acquisition of 
41.21 	zero-emission ice resurfacing and ice edging equipment. The new or renovated systems 
41.22 	may include continuous electronic air monitoring devices to automatically activate the 
41.23 	ventilation systems when the concentration of carbon monoxide or nitrogen dioxide 
41.24 	reaches a predetermined level; and
41.25 	(2) "projects that eliminate R-22," means replacement of ice-making systems in 
41.26 	existing public facilities that use R-22 as a refrigerant, with systems that use alternative 
41.27 	non-ozone-depleting refrigerants.
41.28 	(c) In the metropolitan area as defined in section 473.121, subdivision 2, the 
41.29 	commission is encouraged to give priority to the following proposals:
41.30 	(1) proposals for construction of two or more ice sheets in a single new facility;
41.31 	(2) proposals for construction of an additional sheet of ice at an existing ice center;
41.32 	(3) proposals for construction of a new, single sheet of ice as part of a sports complex 
41.33 	with multiple sports facilities; and
41.34 	(4) proposals for construction of a new, single sheet of ice that will be expanded to a 
41.35 	two-sheet facility in the future.
42.1 	(d) The commission shall administer a site selection process for the ice centers. The 
42.2 	commission shall invite proposals from cities or counties or consortia of cities. A proposal 
42.3 	for an ice center must include matching contributions including in-kind contributions of 
42.4 	land, access roadways and access roadway improvements, and necessary utility services, 
42.5 	landscaping, and parking.
42.6 	(e) Proposals for ice centers and matching grants must provide for meeting the 
42.7 	demand for ice time for female groups by offering up to 50 percent of prime ice time, as 
42.8 	needed, to female groups. For purposes of this section, prime ice time means the hours 
42.9 	of 4:00 p.m. to 10:00 p.m. Monday to Friday and 9:00 a.m. to 8:00 p.m. on Saturdays 
42.10 	and Sundays.
42.11 	(f) The location for all proposed facilities must be in areas of maximum demonstrated 
42.12 	interest and must maximize accessibility to an arterial highway.
42.13 	(g) To the extent possible, all proposed facilities must be dispersed equitably, must 
42.14 	be located to maximize potential for full utilization and profitable operation, and must 
42.15 	accommodate noncompetitive family and community skating for all ages.
42.16 	(h) The commission may also use the money to upgrade current facilities, purchase 
42.17 	girls' ice time, or conduct amateur women's hockey and other ice sport tournaments.
42.18 	(i) To the extent possible, 50 percent of all grants must be awarded to communities 
42.19 	in greater Minnesota.
42.20 	(j) To the extent possible, technical assistance shall be provided to Minnesota 
42.21 	communities by the commission on ice arena planning, design, and operation, including 
42.22 	the marketing of ice time and on projects described in paragraph (b).
42.23 	(k) A grant for new facilities may not exceed $250,000.
42.24 	(l) The commission may make grants for rehabilitation and renovation. A 
42.25 	rehabilitation or renovation grant for air quality may not exceed $200,000 and a 
42.26 	rehabilitation or renovation grant for R-22 elimination may not exceed $50,000 for 
42.27 	indirect cooling systems and may not exceed $400,000 for direct cooling systems. Priority 
42.28 	must be given to grant applications for indoor air quality improvements, including zero 
42.29 	emission ice resurfacing equipment, and for projects that eliminate R-22.
42.30 	(m) Grant money may be used for ice centers designed for sports other than hockey.
42.31 	(n) Grant money may be used to upgrade existing facilities to comply with the 
42.32 	bleacher safety requirements of section 326B.112.

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

43.1 	Sec. 39. Minnesota Statutes 2014, section 272.484, is amended to read:
43.2 	272.484 FEES.
43.3 	The fee for filing and indexing each notice of lien or certificate or notice affecting 
43.4 	the lien is:
43.5 	(1) for a lien, certificate of discharge or subordination, and for all other notices, 
43.6 	including a certificate of release or nonattachment filed with the secretary of state, the fee 
43.7 	provided by section 336.9-525, except that the filing fee charged to the district directors 
43.8 	of internal revenue for filing a federal tax lien is $15 for up to two debtor names and 
43.9 	$15 for each additional name; and
43.10 	(2) for a lien, certificate of discharge or subordination, and for all other notices, 
43.11 	including a certificate of release or nonattachment filed with the county recorder, the fee 
43.12 	for filing a real estate mortgage in the county where filed.
43.13 	The officer shall bill the district directors of internal revenue or other appropriate 
43.14 	federal officials on a monthly basis for fees for documents filed by them.

43.15 	Sec. 40. Minnesota Statutes 2014, section 299F.011, is amended by adding a 
43.16 	subdivision to read:
43.17 		Subd. 4d.Single-family dwelling; fire sprinklers. (a) The State Building Code, the 
43.18 	State Fire Code, or a political subdivision of the state by code, by ordinance,  or in any 
43.19 	other way, must not require the installation of fire sprinklers, any fire sprinkler system 
43.20 	components, or automatic fire-extinguishing equipment or devices in any new or existing 
43.21 	single-family detached dwelling unit.
43.22 	(b) Nothing in this subdivision shall be construed to affect or limit a requirement 
43.23 	for smoke or fire detectors, alarms, or their components.

43.24 	Sec. 41. Minnesota Statutes 2014, section 303.19, is amended to read:
43.25 	303.19 REINSTATEMENT.
43.26 		Subdivision 1.Application Required filing. Any foreign corporation whose 
43.27 	certificate of authority to do business in this state shall have been revoked or canceled may 
43.28 	file reinstate that authority by filing an annual renewal and the fee required by subdivision 
43.29 	2 with the secretary of state an application for reinstatement. Such application shall be 
43.30 	on forms prescribed by the secretary of state, shall contain all the matters required to be 
43.31 	set forth in an original application for a certificate of authority, and such other pertinent 
43.32 	information as may be required by the secretary of state. If any of the information in the 
43.33 	original application for authority has changed, the foreign corporation must also file an 
44.1 	amended certificate setting forth the currently accurate information, with the fee required 
44.2 	by section 303.21, subdivision 3.
44.3 		Subd. 2.Fee. If the certificate of authority was revoked by the secretary of state 
44.4 	pursuant to section 303.17, the corporation shall pay to the commissioner of management 
44.5 	and budget $250 before it may be reinstated.
44.6 	If the certificate of authority was canceled or by a judgment pursuant to section 
44.7 	303.18, the corporation shall pay to the commissioner of management and budget $500 
44.8 	before it may be reinstated.
44.9 		Subd. 3.Certificate of reinstatement. Upon the filing of the application and upon 
44.10 	payment of all penalties, fees and charges required by law, not including an initial license 
44.11 	fee or additional license fees to the extent that they have previously been paid by the 
44.12 	corporation the fees imposed by this section, the secretary of state shall reinstate the 
44.13 	license of the corporation.

44.14 	Sec. 42. Minnesota Statutes 2014, section 304A.301, subdivision 1, is amended to read:
44.15 		Subdivision 1.Report required. No later than 90 days after the conclusion of 
44.16 	each calendar year Before each April 1, a public benefit corporation must deliver to the 
44.17 	secretary of state for filing an annual benefit report covering the 12-month period ending 
44.18 	on December 31 of that the previous year and pay a fee of $35 to the secretary of state. 
44.19 	The annual benefit report must state the name of the public benefit corporation, be signed 
44.20 	by the public benefit corporation's chief executive officer not more than 30 days before the 
44.21 	report is delivered to the secretary of state for filing, and must be current when signed.

44.22 	Sec. 43. Minnesota Statutes 2014, section 304A.301, subdivision 5, is amended to read:
44.23 		Subd. 5.Failure to file an annual benefit report. If a public benefit corporation 
44.24 	fails to file an, before April 1 of any calendar year, the annual benefit report in accordance 
44.25 	with this section within 90 days of the date on which an annual benefit report is due 
44.26 	required by this section, the secretary of state shall revoke the corporation's status as a 
44.27 	public benefit corporation under this chapter and must notify the public benefit corporation 
44.28 	of the revocation using the information provided by the corporation pursuant to section 
44.29 	5.002 or 5.34 or provided in the articles.

44.30 	Sec. 44. Minnesota Statutes 2014, section 304A.301, subdivision 6, is amended to read:
44.31 		Subd. 6.Effects of revocation; reinstatement. (a) A public benefit corporation 
44.32 	that has lost its public benefit corporation status for failure to timely file an annual benefit 
44.33 	report or by terminating that status pursuant to section 304A.103 is not entitled to the 
45.1 	benefits afforded to a public benefit corporation under this chapter as of the date of 
45.2 	revocation or termination and must amend the articles of incorporation to reflect a name 
45.3 	compliant with section 302A.115, but which does not include the corporate designation 
45.4 	provided for in section 304A.101, subdivision 2.
45.5 	(b) Within 30 days of issuance of revocation of public benefit corporation status by 
45.6 	the secretary of state, filing a renewal complying with this section and a $500 fee with 
45.7 	the secretary of state will reinstate the corporation as a public benefit corporation under 
45.8 	this chapter as of the date of revocation.

45.9 	Sec. 45. Minnesota Statutes 2014, section 304A.301, is amended by adding a 
45.10 	subdivision to read:
45.11 		Subd. 8.Failure to change corporate name. The duration of a corporation that has 
45.12 	had public benefit status terminated or revoked and which fails to change the corporate 
45.13 	name as provided in subdivision 6 expires automatically 30 days after termination or 
45.14 	revocation of the public benefit corporation status.

45.15 	Sec. 46. Minnesota Statutes 2014, section 326A.01, subdivision 2, is amended to read:
45.16 		Subd. 2.Attest. "Attest" means to provide providing any of the following financial 
45.17 	statement services:
45.18 	(1) an audit or other engagement performed in accordance with the Statements on 
45.19 	Auditing Standards (SAS);
45.20 	(2) a review of a financial statement performed in accordance with the Statements on 
45.21 	Standards for Accounting and Review Services (SSARS);
45.22 	(3) an examination of prospective financial information performed in accordance 
45.23 	with the Statements on Standards for Attestation Engagements (SSAE); and
45.24 	(4) any an engagement performed in accordance with auditing and related the  
45.25 	standards of the Public Company Accounting Oversight Board (PCAOB); and
45.26 	(5) an examination, review, or agreed-upon procedures engagement performed in 
45.27 	accordance with SSAE, other than an examination described in clause (3).

45.28 	Sec. 47. Minnesota Statutes 2014, section 326A.01, subdivision 12, is amended to read:
45.29 		Subd. 12.Peer review. "Peer review" means an independent a study, appraisal, or 
45.30 	review of one or more aspects of the professional work of a licensee  or CPA firm that 
45.31 	issues attest or compilation reports, or the professional work of a person registered under 
45.32 	section 326A.06, paragraph (b), by persons who are not affiliated with the licensee  or 
45.33 	CPA firm being reviewed.

46.1 	Sec. 48. Minnesota Statutes 2014, section 326A.01, subdivision 13a, is amended to read:
46.2 		Subd. 13a.Principal place of business. "Principal place of business" means the 
46.3 	office location designated by the licensee for purposes of substantial equivalency and 
46.4 	reciprocity in this state and in other states.

46.5 	Sec. 49. Minnesota Statutes 2014, section 326A.01, subdivision 15, is amended to read:
46.6 		Subd. 15.Report. "Report," when used with reference to financial statements an 
46.7 	attest or compilation service, means an opinion, report, or other form of language that 
46.8 	states or implies assurance as to the reliability of any the attested information or compiled 
46.9 	financial statements and that also includes or is accompanied by a statement or implication 
46.10 	that the person or firm issuing it has special knowledge or competence in accounting or 
46.11 	auditing. Such a statement or implication of special knowledge or competence may arise 
46.12 	from use by the issuer of the report of names or titles indicating that the person or firm is an 
46.13 	accountant or auditor, or from the language of the report itself. The term "report" includes 
46.14 	any form of language that disclaims an opinion when the form of language is conventionally 
46.15 	understood to imply any positive assurance as to the reliability of the  attested information 
46.16 	or compiled financial statements referred to or special competence on the part of the person 
46.17 	or firm issuing the language. It includes any other form of language that is conventionally 
46.18 	understood to imply such assurance or such special knowledge or competence.

46.19 	Sec. 50. Minnesota Statutes 2014, section 326A.01, subdivision 16, is amended to read:
46.20 		Subd. 16.State. "State" means any state of the United States, the District of 
46.21 	Columbia, Puerto Rico, the U.S. Virgin Islands, the Commonwealth of the Northern 
46.22 	Mariana Islands, and Guam; except that "this state" means the state of Minnesota.

46.23 	Sec. 51. Minnesota Statutes 2014, section 326A.02, subdivision 3, is amended to read:
46.24 		Subd. 3.Officers; proceedings. The board shall elect one of its number members  
46.25 	as chair, another as vice-chair, and another as secretary and treasurer. The officers shall 
46.26 	hold their respective offices for a term of one year and until their successors are elected. 
46.27 	The affirmative vote of a majority of the qualified members of the board, or a majority of 
46.28 	a quorum of the board at any meeting duly called, is considered the action of the board. 
46.29 	The board shall meet at such times and places as may be fixed by the board. Meetings 
46.30 	of the board are subject to chapter 13D. A majority of the board members then in office 
46.31 	constitutes a quorum at any meeting duly called. The board shall retain or arrange for the 
46.32 	retention of all applications and all documents under oath that are filed with the board and 
46.33 	also records of its proceedings, and it shall maintain a registry of the names and addresses 
47.1 	of all licensees and registrants under this chapter. In any proceeding in court, civil or 
47.2 	criminal, arising out of or founded upon any provision of this chapter, copies of records of 
47.3 	the proceeding certified as true copies by the board chair or executive director shall be 
47.4 	admissible in evidence as tending to prove the contents of the records.

47.5 	Sec. 52. Minnesota Statutes 2014, section 326A.02, subdivision 5, is amended to read:
47.6 		Subd. 5.Rules. The board may adopt rules governing its administration and 
47.7 	enforcement of this chapter and the conduct of licensees and persons registered under 
47.8 	section 326A.06, paragraph (b), including:
47.9 	(1) rules governing the board's meetings and the conduct of its business;
47.10 	(2) rules of procedure governing the conduct of investigations and hearings and 
47.11 	discipline by the board;
47.12 	(3) rules specifying the educational and experience qualifications required for the 
47.13 	issuance of certificates and the continuing professional education required for renewal 
47.14 	of certificates;
47.15 	(4) rules of professional conduct directed to controlling the quality and probity 
47.16 	of services by licensees, and dealing among other things with independence, integrity, 
47.17 	and objectivity; competence and technical standards; and responsibilities to the public 
47.18 	and to clients;
47.19 	(5) rules governing the professional standards applicable to licensees including 
47.20 	adoption of the standards specified in section 326A.01, subdivision 2, and as developed 
47.21 	for general application by recognized national accountancy organizations such as the 
47.22 	American Institute of Certified Public Accountants or the Public Company Accounting 
47.23 	Oversight Board;
47.24 	(6) rules that incorporate by reference the standards for attesting listed in section 
47.25 	326A.01, subdivision 2, that are consistent with the standards of general applicability 
47.26 	recognized by national accountancy organizations, including the American Institute of 
47.27 	Certified Public Accountants and the Public Company Accounting Oversight Board;
47.28 	(6) (7) rules governing the manner and circumstances of use of the titles "certified 
47.29 	public accountant," "CPA," "registered accounting practitioner," and "RAP";
47.30 	(7) (8) rules regarding peer review that may be required to be performed under 
47.31 	provisions of this chapter;
47.32 	(8) (9) rules on substantial equivalence to implement section 326A.14;
47.33 	(9) (10) rules regarding the conduct of the certified public accountant examination;
47.34 	(10) (11) rules regarding the issuance and renewals of certificates, permits, and 
47.35 	registrations;
48.1 	(11) (12) rules regarding transition provisions to implement this chapter;
48.2 	(12) (13) rules specifying the educational and experience qualifications for 
48.3 	registration, rules of professional conduct, rules regarding peer review, rules governing 
48.4 	standards for providing services, and rules regarding the conduct and content of 
48.5 	examination for those persons registered under section 326A.06, paragraph (b);
48.6 	(13) (14) rules regarding fees for examinations, certificate issuance and renewal, 
48.7 	firm permits, registrations under section 326A.06, paragraph (b), notifications made under 
48.8 	section 326A.14, and late processing fees; and
48.9 	(14) (15) upon any change to this chapter, if the board determines a change in 
48.10 	Minnesota Rules is required, the board may initiate the expedited process under section 
48.11 	14.389 up to one year after the effective date of the change to this chapter.

48.12 	Sec. 53. Minnesota Statutes 2014, section 326A.05, subdivision 1, is amended to read:
48.13 		Subdivision 1.General. The board shall grant or renew permits to practice as 
48.14 	a CPA firm to entities that make application and demonstrate their qualifications in 
48.15 	accordance with this section.
48.16 	(a) The following must hold a permit issued under this section:
48.17 	(1) any firm with an office in this state performing attest services as defined in 
48.18 	section 326A.01, subdivision 2;
48.19 	(2) to the extent required by section 326A.10, paragraph (k), any firm with an office 
48.20 	in this state performing compilation services as defined in section 326A.01, subdivision 6;
48.21 	(3) any firm with an office in this state that uses the title "CPA" or "CPA firm"; or
48.22 	(4) any firm that does not have an office in this state but performs attest services 
48.23 	as described in section 326A.01, subdivision 2, paragraph (1), (3), or (4), for a client 
48.24 	having its headquarters in this state.
48.25 	(b) A firm possessing a valid permit from another state which does not have an office 
48.26 	in this state may perform services described in section 326A.01, subdivision 2, clause (2) 
48.27 	or (5), or subdivision 6, for a client having its headquarters in this state and may use the 
48.28 	title "CPA" or "CPA firm" without a permit issued under this section only if:
48.29 	(1) it has the qualifications described in subdivision 3, paragraph (b);
48.30 	(2) as a condition to the renewal of the firm's permit issued by the other state, that 
48.31 	state requires a peer review which contains the requirements equivalent to subdivision 8, 
48.32 	paragraphs (a) and (e); and
48.33 	(3) it performs the services through an individual who has been granted practice 
48.34 	privileges under section 326A.14.
49.1 	(c) A firm possessing a valid permit from another state that does not have an office 
49.2 	in this state and which is not subject to the requirements of paragraph (a), clause (4), or 
49.3 	(b), may perform other professional services while using the title "CPA" or "CPA firm" in 
49.4 	this state without a permit issued under this section only if the firm:
49.5 	(1) has the qualifications described in subdivision 3, paragraph (b);
49.6 	(2) performs the services through an individual who has been granted practice 
49.7 	privileges under section 326A.14; and
49.8 	(3) can lawfully perform the services in the state where the individuals with practice 
49.9 	privileges have their principal place of business.

49.10 	Sec. 54. Minnesota Statutes 2014, section 326A.05, subdivision 3, is amended to read:
49.11 		Subd. 3.Qualifications. (a) An applicant for initial issuance or renewal of a permit 
49.12 	to practice under this section shall comply with the requirements in this subdivision.
49.13 	(b) Notwithstanding chapter 319B or any other provision of law, a simple majority 
49.14 	of the ownership of the firm, in terms of financial interests and voting rights of all partners, 
49.15 	officers, shareholders, members, or managers, must belong to holders of certificates who 
49.16 	are licensed in some state, and the partners, officers, shareholders, members, or managers, 
49.17 	whose principal place of business is in this state, and who perform professional services in 
49.18 	this state, must hold valid certificates issued under section 326A.04 or the corresponding 
49.19 	provision of prior law. Although firms may include nonlicensee owners, the firm and 
49.20 	its ownership must comply with rules adopted by the board. The firm shall register all 
49.21 	nonlicensee owners with the state board as set forth by rule. An individual who has been 
49.22 	granted practice privileges under section 326A.14 and who performs services for which 
49.23 	a firm permit is required under section 326A.14, subdivision 1, paragraph (d), is not 
49.24 	required to obtain a certificate from the board under section 326A.04.
49.25 	(c) A CPA firm may include nonlicensee owners provided that:
49.26 	(1) the firm designates a licensee of this state, or in the case of a firm that must 
49.27 	have a permit according to section 326A.14, subdivision 1, paragraph (d), a licensee of 
49.28 	another state who meets the requirements in section 326A.14, subdivision 1, paragraph 
49.29 	(a) or (b), who is responsible for the proper registration of the firm and identifies that 
49.30 	individual to the board;
49.31 	(2) all nonlicensee owners are persons of good moral character and are active 
49.32 	individual participants in the CPA firm or affiliated entities; and
49.33 	(3) the firm complies with other requirements imposed by the board in rule.
49.34 	(d) An individual licensee and any individual granted practice privileges under 
49.35 	section 326A.14 who is responsible for supervising attest or compilation services and 
50.1 	signs or authorizes someone to sign the accountant's report on the financial statements 
50.2 	on behalf of the firm, shall meet the competency requirements set out in the professional 
50.3 	standards for such services.
50.4 	(e) An individual licensee and any individual granted practice privileges under section 
50.5 	326A.14 who signs or authorizes someone to sign the accountants' report on the financial 
50.6 	statements on behalf of the firm shall meet the competency requirement of paragraph (d).

50.7 	Sec. 55. Minnesota Statutes 2014, section 326A.08, subdivision 7, is amended to read:
50.8 		Subd. 7.Violation; penalties; costs of proceeding. (a) The board may impose 
50.9 	a civil penalty not to exceed $2,000 $5,000  per violation upon a person or a firm that 
50.10 	violates an order, statute, or rule that the board has issued or is empowered to enforce.
50.11 	(b) The board may, in addition, impose a fee to reimburse the board for all or 
50.12 	part of the cost of the proceedings, including reasonable investigative costs, resulting 
50.13 	in disciplinary or corrective action authorized by this section, the imposition of civil 
50.14 	penalties, or the issuance of a cease and desist order. The fee may be imposed when the 
50.15 	board shows that the position of the person or firm that violates a statute, rule, or order 
50.16 	that the board has issued or is empowered to enforce is not substantially justified, unless 
50.17 	special circumstances make an award unjust, notwithstanding the provisions of Minnesota 
50.18 	Rules, part 1400.8401. The costs include, but are not limited to, the amount paid by the 
50.19 	board for services from the office of administrative hearings, attorney and reasonable 
50.20 	investigative fees, court reporters, witnesses, reproduction of records, board members' per 
50.21 	diem compensation, board staff time, and expense incurred by board members and staff.

50.22 	Sec. 56. Minnesota Statutes 2014, section 326A.10, is amended to read:
50.23 	326A.10 UNLAWFUL ACTS.
50.24 	(a) Only a licensee and individuals who have been granted practice privileges 
50.25 	under section 326A.14 may issue a report on financial statements of any person, firm, 
50.26 	organization, or governmental unit that results from providing attest services, or offer to 
50.27 	render or render any attest service. Only a certified public accountant, an individual who 
50.28 	has been granted practice privileges under section 326A.14, a CPA firm, or, to the extent 
50.29 	permitted by board rule, a person registered under section 326A.06, paragraph (b), may 
50.30 	issue a report on financial statements of any person, firm, organization, or governmental 
50.31 	unit that results from providing compilation services or offer to render or render any 
50.32 	compilation service. These restrictions do not prohibit any act of a public official or 
50.33 	public employee in the performance of that person's duties or prohibit the performance 
50.34 	by any nonlicensee of other services involving the use of accounting skills, including 
51.1 	the preparation of tax returns, management advisory services, and the preparation of 
51.2 	financial statements without the issuance of reports on them. Nonlicensees may prepare 
51.3 	financial statements and issue nonattest transmittals or information on them which do not 
51.4 	purport to be in compliance with the Statements on Standards for Accounting and Review 
51.5 	Services (SSARS). Nonlicensees registered under section 326A.06, paragraph (b), may, 
51.6 	to the extent permitted by board rule, prepare financial statements and issue nonattest 
51.7 	transmittals or information on them.
51.8 	(b) Licensees and individuals who have been granted practice privileges under 
51.9 	section 326A.14 performing attest or compilation services must provide those services in 
51.10 	accordance with professional standards. To the extent permitted by board rule, registered 
51.11 	accounting practitioners performing compilation services must provide those services in 
51.12 	accordance with standards specified in board rule.
51.13 	(c) A person who does not hold a valid certificate issued under section 326A.04 
51.14 	or a practice privilege granted under section 326A.14 shall not use or assume the title 
51.15 	"certified public accountant," the abbreviation "CPA," or any other title, designation, 
51.16 	words, letters, abbreviation, sign, card, or device tending to indicate that the person is a 
51.17 	certified public accountant.
51.18 	(d) A firm shall not provide attest services or assume or use the title "certified public 
51.19 	accountants," the abbreviation "CPA's," or any other title, designation, words, letters, 
51.20 	abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless 
51.21 	(1) the firm has complied with section 326A.05, and (2) ownership of the firm is in 
51.22 	accordance with this chapter and rules adopted by the board.
51.23 	(e) A person or firm that does not hold a valid certificate or permit issued under 
51.24 	section 326A.04 or 326A.05 or has not otherwise complied with section 326A.04 or 
51.25 	326A.05 as required in this chapter shall not assume or use the title "certified accountant," 
51.26 	"chartered accountant," "enrolled accountant," "licensed accountant," "registered 
51.27 	accountant," "accredited accountant," "accounting practitioner," "public accountant," 
51.28 	"licensed public accountant," or any other title or designation likely to be confused 
51.29 	with the title "certified public accountant," or use any of the abbreviations "CA," "LA," 
51.30 	"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the 
51.31 	abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals 
51.32 	so designated by the Internal Revenue Service.
51.33 	(f) Persons registered under section 326A.06, paragraph (b), may use the title 
51.34 	"registered accounting practitioner" or the abbreviation "RAP." A person who does not 
51.35 	hold a valid registration under section 326A.06, paragraph (b), shall not assume or use 
51.36 	such title or abbreviation.
52.1 	(g) Except to the extent permitted in paragraph (a), nonlicensees may not use 
52.2 	language in any statement relating to the financial affairs of a person or entity that is 
52.3 	conventionally used by licensees in reports on financial statements or on an attest service. 
52.4 	In this regard, the board shall issue by rule safe harbor language that nonlicensees may 
52.5 	use in connection with such financial information. A person or firm that does not hold a 
52.6 	valid certificate or permit, or a registration issued under section 326A.04, 326A.05, or 
52.7 	326A.06, paragraph (b), or has not otherwise complied with section 326A.04 or 326A.05
52.8 	as required in this chapter shall not assume or use any title or designation that includes the 
52.9 	word "accountant" or "accounting" in connection with any other language, including the 
52.10 	language of a report, that implies that the person or firm holds such a certificate, permit, 
52.11 	or registration or has special competence as an accountant. A person or firm that does 
52.12 	not hold a valid certificate or permit issued under section 326A.04 or 326A.05 or has not 
52.13 	otherwise complied with section 326A.04 or 326A.05 as required in this chapter shall not 
52.14 	assume or use any title or designation that includes the word "auditor" in connection with 
52.15 	any other language, including the language of a report, that implies that the person or firm 
52.16 	holds such a certificate or permit or has special competence as an auditor. However, 
52.17 	this paragraph does not prohibit any officer, partner, member, manager, or employee of 
52.18 	any firm or organization from affixing that person's own signature to any statement in 
52.19 	reference to the financial affairs of such firm or organization with any wording designating 
52.20 	the position, title, or office that the person holds, nor prohibit any act of a public official or 
52.21 	employee in the performance of the person's duties as such.
52.22 	(h)(1) No person holding a certificate or registration or firm holding a permit under 
52.23 	this chapter shall use a professional or firm name or designation that is misleading about 
52.24 	the legal form of the firm, or about the persons who are partners, officers, members, 
52.25 	managers, or shareholders of the firm, or about any other matter. However, names of one 
52.26 	or more former partners, members, managers, or shareholders may be included in the 
52.27 	name of a firm or its successor.
52.28 	(2) A common brand name or network name part, including common initials, used 
52.29 	by a CPA firm in its name, is not misleading if the firm is a network firm as defined in 
52.30 	the American Institute of Certified Public Accountants (AICPA) Code of Professional 
52.31 	Conduct in effect July 1, 2011, and when offering or rendering services that require 
52.32 	independence under AICPA standards, the firm must comply with the AICPA code's 
52.33 	applicable standards on independence.
52.34 	(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification, 
52.35 	designation, degree, or license granted in a foreign country entitling the holder to engage 
52.36 	in the practice of public accountancy or its equivalent in that country, if:
53.1 	(1) the activities of the person or firm in this state are limited to the provision of 
53.2 	professional services to persons or firms who are residents of, governments of, or business 
53.3 	entities of the country in which the person holds the entitlement;
53.4 	(2) the person or firm performs no attest or compilation services and issues no 
53.5 	reports with respect to the financial statements information of any other persons, firms, or 
53.6 	governmental units in this state; and
53.7 	(3) the person or firm does not use in this state any title or designation other than 
53.8 	the one under which the person practices in the foreign country, followed by a translation 
53.9 	of the title or designation into English, if it is in a different language, and by the name 
53.10 	of the country.
53.11 	(j) No holder of a certificate issued under section 326A.04 may perform attest services 
53.12 	through any business form that does not hold a valid permit issued under section 326A.05.
53.13 	(k) No individual licensee may issue a report in standard form upon a compilation 
53.14 	of financial information through any form of business that does not hold a valid permit 
53.15 	issued under section 326A.05, unless the report discloses the name of the business through 
53.16 	which the individual is issuing the report, and the individual:
53.17 	(1) signs the compilation report identifying the individual as a certified public 
53.18 	accountant;
53.19 	(2) meets the competency requirement provided in applicable standards; and
53.20 	(3) undergoes no less frequently than once every three years, a peer review 
53.21 	conducted in a manner specified by the board in rule, and the review includes verification 
53.22 	that the individual has met the competency requirements set out in professional standards 
53.23 	for such services.
53.24 	(l) No person registered under section 326A.06, paragraph (b), may issue a report 
53.25 	in standard form upon a compilation of financial information unless the board by rule 
53.26 	permits the report and the person:
53.27 	(1) signs the compilation report identifying the individual as a registered accounting 
53.28 	practitioner;
53.29 	(2) meets the competency requirements in board rule; and
53.30 	(3) undergoes no less frequently than once every three years a peer review conducted 
53.31 	in a manner specified by the board in rule, and the review includes verification that the 
53.32 	individual has met the competency requirements in board rule.
53.33 	(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from 
53.34 	preparing or presenting records or documents customarily prepared by an attorney or firm 
53.35 	of attorneys in connection with the attorney's professional work in the practice of law.
54.1 	(n) The board shall adopt rules that place limitations on receipt by a licensee or a 
54.2 	person who holds a registration under section 326A.06, paragraph (b), of:
54.3 	(1) contingent fees for professional services performed; and
54.4 	(2) commissions or referral fees for recommending or referring to a client any 
54.5 	product or service.
54.6 	(o) Anything in this section to the contrary notwithstanding, it shall not be a violation 
54.7 	of this section for a firm not holding a valid permit under section 326A.05 and not having 
54.8 	an office in this state to provide its professional services in this state so long as it complies 
54.9 	with the applicable requirements of section 326A.05, subdivision 1.

54.10 	Sec. 57. Minnesota Statutes 2014, section 326B.809, is amended to read:
54.11 	326B.809 WRITTEN CONTRACT REQUIRED.
54.12 	(a) All agreements including proposals, estimates, bids, quotations, contracts, 
54.13 	purchase orders, and change orders between a licensee and a customer for the performance 
54.14 	of a licensee's services must be in writing and must contain the following:
54.15 	(1) a detailed summary of the services to be performed;
54.16 	(2) a description of the specific materials to be used or a list of standard features 
54.17 	to be included; and
54.18 	(3) the total contract price or a description of the basis on which the price will 
54.19 	be calculated.
54.20 	(b) Before entering into an agreement, the licensee shall provide a prospective 
54.21 	customer with written performance guidelines for the services to be performed. 
54.22 	Performance guidelines also must be included or incorporated by reference in the 
54.23 	agreement. All agreements shall be signed and dated by the licensee and customer.
54.24 	(c) Before entering into an agreement, the licensee shall offer a prospective customer 
54.25 	the option to install fire sprinklers, any fire sprinkler system components, or automatic 
54.26 	fire-extinguishing equipment or devices in any new single-family detached dwelling unit. 
54.27 	The offer shall be included or incorporated by reference in the agreement. All agreements 
54.28 	shall be signed and dated by the licensee and customer.
54.29 	(c) (d) The licensee shall provide to the customer, at no charge, a signed and 
54.30 	dated document at the time that the licensee and customer sign and date the document. 
54.31 	Documents include agreements, performance guidelines, fire sprinkler opt-in forms, and 
54.32 	mechanic's lien waivers.

54.33 	Sec. 58. Minnesota Statutes 2014, section 336A.09, subdivision 1, is amended to read:
55.1 		Subdivision 1.Procedure. (a) Oral Online and written inquiries regarding 
55.2 	information provided by the filing of effective financing statements or lien notices may 
55.3 	be made at any filing office submitted to the secretary of state during regular business 
55.4 	hours or, if submitted online, at any time.
55.5 	(b) A filing office receiving an oral or written inquiry shall, upon request The 
55.6 	secretary of state must, upon receiving an inquiry, provide an oral or facsimile a prompt 
55.7 	response to the inquiry.
55.8 	(c) A filing office The secretary of state shall maintain a record of inquiries made 
55.9 	under this section including:
55.10 	(1) the date of the inquiry;
55.11 	(2) the name of the debtor inquired about; and
55.12 	(3) identification of the person making the request for inquiry.

55.13 	Sec. 59. Laws 2013, chapter 142, article 1, section 10, is amended to read:

55.14
55.15	Sec. 10. OFFICE OF ENTERPRISE 
TECHNOLOGY MN.IT SERVICES
 	$
	2,431,000
	$
	2,431,000
	
55.16 	During the biennium ending June 30, 2015, 
55.17 	the Office of Enterprise Technology MN.IT 
55.18 	Services must not charge fees to a public 
55.19 	noncommercial educational television 
55.20 	broadcast station eligible for funding under 
55.21 	Minnesota Statutes, chapter 129D, for 
55.22 	access to the state broadcast infrastructure. 
55.23 	If the access fees not charged to public 
55.24 	noncommercial educational television 
55.25 	broadcast stations total more than $400,000 
55.26 	for the biennium, the office may charge for 
55.27 	access fees in excess of these amounts.
55.28 	The commissioner of Minnesota management 
55.29 	and budget is authorized to provide cash 
55.30 	flow assistance of up to $110,000,000 from 
55.31 	the special revenue fund or other statutory 
55.32 	general funds as defined in Minnesota 
55.33 	Statutes, section 16A.671, subdivision 3, 
55.34 	paragraph (a), to the Office of Enterprise 
55.35 	Technology MN.IT Services for the purpose 
56.1 	of managing revenue and expenditure 
56.2 	differences during the initial phases of IT 
56.3 	consolidation. These funds shall be repaid 
56.4 	with interest by June 30, 2015 the end of the 
56.5 	fiscal year 2015 closing period.

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

56.7 	Sec. 60. Laws 2014, chapter 287, section 25, is amended to read:
56.8 	Sec. 25. PARKING RAMP; REQUIRED USER FINANCING.
 56.9 	The amount equivalent to debt service on the design and construction costs allocated 
56.10 	to the parking garage to be located on the block bounded by Sherburne Avenue on the north, 
56.11 	Park Street on the west, University Avenue on the south, and North Capitol Boulevard on 
56.12 	the east must be user-financed frommust be transferred from parking fees collected and 
56.13 	deposited into the state parking account and credited to the debt service account for the 
56.14 	Legislative Office Facility. to the general fund to offset any direct appropriations made to 
56.15 	the senate for debt service payments for the legislative parking garage.

56.16 	Sec. 61. CAPITOL ROOM NUMBERS.
 56.17 	After the Capitol renovation has been completed, the commissioner of administration 
56.18 	must use the same room numbers on signage to identify legacy rooms that were used to 
56.19 	identify the rooms before the Capitol renovation. For purposes of this section, "Capitol 
56.20 	renovation" means the construction project for which funds were appropriated in Laws 
56.21 	2013, chapter 136, section 3; "legacy rooms" means any room in the Capitol after Capitol 
56.22 	renovation that has dimensions and a location that are substantially similar to a room 
56.23 	within the Capitol that existed before renovation; and "signage" means any posting on any 
56.24 	surface in the Capitol building.

56.25 	Sec. 62. IN-LIEU OF RENT EVALUATION.
 56.26 	(a) The commissioner of administration must evaluate and provide recommendations 
56.27 	regarding the base appropriation to the Department of Administration for an in-lieu of rent 
56.28 	payment for space costs of the legislature and veterans organizations, vending operators, 
56.29 	ceremonial space, and statutorily free space in the Capitol building and in other buildings 
56.30 	on the Capitol grounds under the custodial control of the Department of Administration.
56.31 	(b) By January 15, 2017, the commissioner must report to the chairs and 
56.32 	ranking minority members of the committees and divisions in the senate and the 
57.1 	house of representatives with jurisdiction over the appropriation to the Department of 
57.2 	Administration for the in-lieu of rent payment.  The report must:
57.3 	(1) identify the amount and quality of space that will be occupied by the senate, the 
57.4 	house of representatives, and veterans organizations, ceremonial space, and statutorily free 
57.5 	space, in fiscal years 2018 and 2019, including a comparison to the amount and quality of 
57.6 	space occupied by the same tenants in fiscal year 2013;
57.7 	(2) evaluate and justify the expense components included and assumptions made in 
57.8 	determining lease rates and make comparisons to market rates; and
57.9 	(3) evaluate whether the base funding for fiscal years 2018 and 2019 for the in-lieu 
57.10 	of rent appropriation is justified, and if not, recommend an increase or decrease.
57.11 	(c) In conducting the evaluation and preparing the report, the commissioner must 
57.12 	consult with the secretary of the senate, the chief clerk of the house of representatives, the 
57.13 	commissioner of employment and economic development on behalf of the services for the 
57.14 	blind, and the commissioner of veterans affairs on behalf of veterans organizations that use 
57.15 	space for which the Department of Administration receives an in-lieu of rent appropriation.

57.16 	Sec. 63. RULEMAKING.
 57.17 	(a) The Board of Cosmetologist Examiners shall adopt rules governing the licensure, 
57.18 	operation, and inspection of mobile salons, including facility requirements; safety and 
57.19 	infection control requirements; a process for a salon licensee to notify the board of the 
57.20 	mobile salon's location and times of operation; requirements for supplying and disposing 
57.21 	of water and waste products; and the scope of personal services to be provided in mobile 
57.22 	salons. The rules must prohibit mobile salons from violating reasonable municipal 
57.23 	restrictions on time and place of operation of a mobile salon within its jurisdiction, 
57.24 	and shall establish penalties, up to and including revocation of a license, for repeated 
57.25 	violations of municipal laws.
57.26 	(b) The Board of Cosmetologist Examiners shall adopt rules governing the advanced 
57.27 	practice esthetician license, including the educational and training requirements, scope of 
57.28 	practice, and the conditions and process of issuing and renewing the license.

57.29 	EFFECTIVE DATE. Paragraph (a) of this section is effective the day following 
57.30 	final enactment. Paragraph (b) of this section is effective January 1, 2016, and expires 
57.31 	January 1, 2019.

57.32 	Sec. 64. STATE AGENCY TECHNOLOGY PROJECTS.
 57.33 	Any appropriation in this chapter for information technology project services and 
57.34 	support is subject to Minnesota Statutes, section 16E.0466. If an agency needs ongoing 
58.1 	information technology services as a result of the services and support paid for with an 
58.2 	appropriation in this chapter, the agency must enter into an agreement with the Office of 
58.3 	MN.IT Services to provide those services. The agreement must require the agency to pay 
58.4 	the Office of MN.IT Services under rates and mechanisms specified in the agreement.

58.5 	Sec. 65. SOCCER STADIUM.
 58.6 	No state funds may be appropriated or tax expenditures used to fund the construction 
58.7 	of a new major league soccer stadium. The state may not incur debt of the state to fund 
58.8 	construction of a new major league soccer stadium.

58.9 	Sec. 66. REVISOR'S INSTRUCTION.
 58.10 	The revisor of statutes shall change the word "sanitation" to "infection control" and 
58.11 	the word "lapsed" to "expired" wherever they appear in Minnesota Statutes, chapter 155A, 
58.12 	or Minnesota Rules, chapter 2105 or 2110.

58.13 	Sec. 67.  REPEALER.
 58.14 	Minnesota Statutes 2014, section 155A.23, subdivision 6, is repealed.

58.15 	ARTICLE 3
58.16 	MILITARY AND VETERANS AFFAIRS

58.17 	Section 1. Minnesota Statutes 2014, section 190.16, is amended by adding a 
58.18 	subdivision to read:
58.19 		Subd. 6b.Reimbursement grants. The adjutant general shall administer a 
58.20 	reimbursement grant program under section 192.26, subdivision 3, and pay grants to local 
58.21 	units of government to reimburse them for paying salary and benefits to public safety 
58.22 	employees on authorized leave under section 192.26, subdivision 1.

58.23 	EFFECTIVE DATE. This section is effective the day following final enactment 
58.24 	for reimbursement of eligible costs incurred by local units of government in calendar 
58.25 	year 2016 and thereafter.

58.26 	Sec. 2. Minnesota Statutes 2014, section 190.19, subdivision 2a, is amended to read:
58.27 		Subd. 2a.Uses; veterans. (a) Money appropriated to the Department of Veterans 
58.28 	Affairs from the Minnesota "Support Our Troops" account may be used for:
58.29 	(1) grants to veterans service organizations;
58.30 	(2) outreach to underserved veterans;
59.1 	(3) providing services and programs for veterans and their families; and
59.2 	(4) transfers to the vehicle services account for Gold Star license plates under 
59.3 	section 168.1253.;
59.4 	(5) grants of up to $100,000 to any organization approved by the commissioner of 
59.5 	veterans affairs for the purpose of supporting and improving the lives of veterans and 
59.6 	their families; and
59.7 	(6) grants to an eligible foundation. 
59.8 	(b) For purposes of this subdivision, "eligible foundation" includes any organization 
59.9 	that:
59.10 	(1) is a tax-exempt organization under section 501(c) of the Internal Revenue 
59.11 	Code; and
59.12 	(2) is a nonprofit corporation under chapter 317A and the organization's articles of 
59.13 	incorporation specify that a purpose of the organization includes (i) providing assistance 
59.14 	to veterans and their families or (ii) enhancing the lives of veterans and their families.

59.15 	Sec. 3. Minnesota Statutes 2014, section 190.19, subdivision 3, is amended to read:
59.16 		Subd. 3.Annual report. The adjutant general  and commissioner of veterans affairs 
59.17 	must report by February 1, 2007, and each year thereafter, to the chairs and ranking minority 
59.18 	members of the legislative committees and divisions with jurisdiction over military and 
59.19 	veterans' affairs on the number, amounts, and use of grants made by the adjutant general  
59.20 	each agency from the Minnesota "Support Our Troops" account in the previous year.

59.21 	Sec. 4. Minnesota Statutes 2014, section 192.26, is amended by adding a subdivision 
59.22 	to read:
59.23 		Subd. 3.State reimbursement for costs of authorized leave. (a) For purposes of 
59.24 	this subdivision, the terms in this paragraph have the meanings given them:
59.25 	(1) "public safety employees" means peace officers, firefighters, and ambulance 
59.26 	service personnel, as defined in section 144E.001, subdivision 3a, who are full-time 
59.27 	employees of a local unit of government;
59.28 	(2) "local unit of government" means a county or home rule charter or statutory 
59.29 	city; and
59.30 	(3) "salary and benefits" means the wages or salaries and benefits paid to employees 
59.31 	of the local unit of government on authorized leave under this section.
59.32 	(b) The adjutant general shall make grants to local units of government to reimburse 
59.33 	them for salary and benefits paid to public safety employees on authorized leave under 
59.34 	this section.
60.1 	(c) To be eligible for state reimbursement of the amount of salary and benefits 
60.2 	paid for the preceding calendar year as determined under this subdivision, the local unit 
60.3 	of government shall apply to the adjutant general by March 15. By July 15, the adjutant 
60.4 	general shall pay the reimbursement grants to the local units of government.
60.5 	(d) The adjutant general shall prescribe the form and supporting information that 
60.6 	must be supplied by the local unit of government as part of the application for state 
60.7 	reimbursement.
60.8 	(e) An appropriation by law from the general fund to the adjutant general must be 
60.9 	used to pay the grants. If the appropriation is insufficient to pay the entire sum of all of 
60.10 	the reimbursements for eligible costs for which local units of government have applied, 
60.11 	the adjutant general shall reduce each grant proportionally so that the sum of the grants 
60.12 	equals the available appropriation.

60.13 	EFFECTIVE DATE. This section is effective the day following final enactment 
60.14 	for reimbursement of eligible costs incurred by local units of government in calendar 
60.15 	year 2016 and thereafter.

60.16 	Sec. 5. Minnesota Statutes 2014, section 192.38, subdivision 1, is amended to read:
60.17 		Subdivision 1.Temporary emergency relief. If any officer or enlisted member 
60.18 	of the military forces is wounded or otherwise disabled, dies from disease contracted or 
60.19 	injuries received, or is killed while in state active service as defined in section 190.05, 
60.20 	subdivision 5a, the officer or member, or in the case of death the officer's or member's 
60.21 	dependent spouse, child, or parent, may be provided with immediate temporary relief as 
60.22 	necessary in cases of severe hardship, in an amount to be determined by the adjutant general 
60.23 	and approved by the governor a death gratuity payment equal to the amount allowed for 
60.24 	service members in a federal active service status. All payments under this subdivision 
60.25 	shall be made from appropriations for the maintenance of the state military forces 
60.26 	emergency services. The adjutant general shall notify the Department of Management and 
60.27 	Budget of any payments made pursuant to this subdivision and the amount of it shall be 
60.28 	subtracted from any award made by the Department of Management and Budget.

60.29 	Sec. 6. Minnesota Statutes 2014, section 192.501, is amended by adding a subdivision 
60.30 	to read:
60.31 		Subd. 1d.Reclassification bonus program. (a) The adjutant general must establish 
60.32 	a program to provide a bonus to eligible members of the Minnesota National Guard who 
60.33 	complete training that results in the award of a new military occupational specialty or 
61.1 	Air Force specialty code in specialties that are identified by the adjutant general to be 
61.2 	necessary for the enhanced readiness of the Minnesota National Guard.
61.3 	(b) Eligibility for the bonus is limited to a member of the National Guard who:
61.4 	(1) is serving satisfactorily as determined by the adjutant general;
61.5 	(2) has 16 or fewer years of services creditable for retirement; and
61.6 	(3) undergoes military training deemed by the adjutant general as sufficiently 
61.7 	important to the readiness of the National Guard or a unit of the National Guard to warrant 
61.8 	the payment of a bonus in an amount to generally encourage the member's participation 
61.9 	in the training. 
61.10 	The adjutant general may, within the limitations of this paragraph and other applicable 
61.11 	laws, determine additional eligibility criteria for the bonus, and must specify all of the 
61.12 	criteria in regulations and publish changes as necessary.
61.13 	(c) The bonus payments must be made on a schedule that is determined and 
61.14 	published in department regulations by the adjutant general.
61.15 	(d) If a member fails to complete a term of reenlistment or an obligated term of 
61.16 	commissioned service for which a bonus was paid, the adjutant general may seek to 
61.17 	recoup a prorated amount of the bonus as determined by the adjutant general.

61.18 	Sec. 7. Minnesota Statutes 2014, section 197.133, is amended to read:
61.19 	197.133 DISPOSAL OF PROPERTY AND EXPIRATION OF BOARD OF 
61.20 	GOVERNORS.
61.21 	(a) If a majority of the board determines that the disposal of the Big Island Veterans 
61.22 	camp or a portion of the camp is in the best interests of Minnesota veterans, or if the camp 
61.23 	is not used solely as a camp for and by disabled and other veterans and their families and 
61.24 	operated and maintained in compliance with all state, federal, and local laws, the board 
61.25 	may dispose of the property at market value as provided in this section. Before disposing 
61.26 	of the property, the board shall give notice by certified mail to the commissioner of 
61.27 	veterans affairs of its decision to dispose of the property. The commissioner shall publish 
61.28 	the notice in the State Register. Interested governmental agencies have until the end of the 
61.29 	next legislative session after the notice to appropriate money to purchase the property.
61.30 	(b) Proceeds realized from the disposal of the property and any assets on hand at 
61.31 	the time of the disposal of the property, must be placed in an irrevocable trust to be used 
61.32 	for the initiation or maintenance of veterans programs in the state of Minnesota. Trustees 
61.33 	must be appointed in the same manner as provided for under Minnesota Statutes 2014, 
61.34 	section 197.131. The trustees shall consult with the commissioner of veterans affairs to 
61.35 	determine the needs of Minnesota veterans and provide the commissioner with an annual 
62.1 	written report on the trust. The commissioner must approve all expenditures from the 
62.2 	trust. A certified audit of all assets, expenditures, and property must be conducted prior 
62.3 	to any disposition of any assets under the control of the board. Any board member who 
62.4 	would benefit directly or indirectly financially from the sale of this property must be 
62.5 	removed by the board and a successor appointed as provided by Minnesota Statutes 2014, 
62.6 	section 197.131. Upon final disposition of all assets to the trust, the board must disband. 
62.7 	Should the assets of the trust be exhausted, the trust must be terminated.
62.8 	(c) The trustees appointed under paragraph (b) shall have the exclusive authority 
62.9 	to remove a trustee of the trust established under paragraph (b). A trustee may be 
62.10 	removed at any time without cause upon a majority vote of the trustees with consent 
62.11 	of the commissioner of veterans affairs. 
62.12 	(d) A vacancy in a trusteeship of the trust established under paragraph (b) must 
62.13 	be filled for the remainder of the unexpired term in the same manner as the original 
62.14 	appointment. 

62.15 	Sec. 8. Minnesota Statutes 2014, section 198.03, subdivision 2, is amended to read:
62.16 		Subd. 2.Cost of care.  (a) The commissioner shall set out in rules the method of 
62.17 	calculating the average cost of care for the domiciliary and nursing care residents. The cost 
62.18 	must be determined yearly based upon the average cost per resident taking into account, 
62.19 	but not limited to, administrative cost of the homes, the cost of service available to the 
62.20 	resident, and food and lodging costs. These average costs must be calculated separately for 
62.21 	domiciliary and nursing care residents. The amount charged each resident for maintenance, 
62.22 	if anything, must be based on the appropriate average cost of care calculation and the 
62.23 	assets and income of the resident but must not exceed the appropriate average cost of care.
62.24 	(b) Using the authority granted in section 198.003, the commissioner shall set out 
62.25 	in rules the method of calculating each domiciliary resident's maintenance charge. This 
62.26 	maintenance charge shall establish a personal needs allowance based on each domiciliary 
62.27 	resident's monthly income. For the period of July 1, 2015, to June 30, 2016, the personal 
62.28 	needs allowance shall not be less than $122 per month. For the period of July 1, 2016, 
62.29 	to June 30, 2017, the personal needs allowance shall not be less than $130 per month. 
62.30 	Thereafter, the minimum personal needs allowance must be adjusted by multiplying 
62.31 	the allowance by one-half of the percentage change of the Consumer Price Index on 
62.32 	the first day of each fiscal year.

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

62.34 	Sec. 9. Minnesota Statutes 2014, section 198.03, subdivision 3, is amended to read:
63.1 		Subd. 3.Arrearages. Residents are liable for paying all of their overdue 
63.2 	maintenance charges. Overdue maintenance charges incurred after May 1, 1990, may be 
63.3 	charged interest according to section 334.01. A resident owing overdue maintenance to 
63.4 	the state of Minnesota for charges incurred prior to May 1, 1990, may continue to stay in 
63.5 	the home if the resident enters into an agreement, including a payment schedule, with the 
63.6 	administrator for the payment of the arrearage and abides by the agreement. Residents 
63.7 	who do not promptly pay maintenance or who do not abide by their agreements to pay 
63.8 	overdue maintenance to the state of Minnesota may be discharged from the home. The 
63.9 	payment schedule agreed to between the administrator and the resident must provide for 
63.10 	the prompt payment of the overdue maintenance owed by the resident, but it must not 
63.11 	reduce the resident's personal needs allowance below that which is provided for in the 
63.12 	administrative rules of the facility the amount specified in subdivision 2.

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

63.14 	Sec. 10.  REPEALER.
 63.15 	Minnesota Statutes 2014, sections 197.131; and 197.132, are repealed.

63.16 	ARTICLE 4
63.17 	PARI-MUTUEL HORSE RACING

63.18 	Section 1. Minnesota Statutes 2014, section 240.01, subdivision 22, is amended to read:
63.19 		Subd. 22.Racing season. "Racing season" means that portion of the calendar 
63.20 	year starting at the beginning of the day of the first live horse race conducted by the 
63.21 	licensee and concluding at the end of the day of the last live horse race conducted by 
63.22 	the licensee in any year.
63.23 	For purposes of this chapter, the racing season begins before the first Saturday in 
63.24 	May and continues for not less than 25 consecutive weeks.

63.25 	EFFECTIVE DATE. This section is effective January 1, 2016.

63.26 	Sec. 2. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 
63.27 	to read:
63.28 		Subd. 28.Takeout. "Takeout" means the total amount of money, excluding 
63.29 	breakage, withheld from each pari-mutuel pool, as authorized by statute or rule.

63.30 	Sec. 3. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 
63.31 	to read:
64.1 		Subd. 29.Handle "Handle" means the aggregate of all pari-mutuel pools, excluding 
64.2 	refundable wagers or cancellations.

64.3 	Sec. 4. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 
64.4 	to read:
64.5 		Subd. 30.Mixed meet. "Mixed meet" means a racing day or series of racing days 
64.6 	on which the racing of more than one breed of horse occurs.

64.7 	Sec. 5. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 
64.8 	to read:
64.9 		Subd. 31.Banked. "Banked" means any game of chance that is played with the 
64.10 	house as a participant in the game, where the house takes on all players, collects from all 
64.11 	losers, and pays all winners, and the house can win.

64.12 	Sec. 6. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 
64.13 	to read:
64.14 		Subd. 32.Steward. A "steward" means an official described in section 240.16. The 
64.15 	term steward includes the terms "judge," "chief steward," and "presiding judge," and 
64.16 	applies to stewards and judges of the commission or a class B licensee, but not to other 
64.17 	racing officials, such as paddock or placement judges, who are employees or agents of 
64.18 	a class B licensee.

64.19 	Sec. 7. Minnesota Statutes 2014, section 240.011, is amended to read:
64.20 	240.011 APPOINTMENT OF DIRECTOR.
64.21 	The governor shall appoint the director of the Minnesota Racing Commission, 
64.22 	who serves in the unclassified service at the governor's pleasure. The director must be 
64.23 	a person qualified by experience in the administration and regulation of pari-mutuel 
64.24 	racing and training to possess the skills necessary to discharge the duties of the director. 
64.25 	The governor must select a director from a list of one or more names submitted by the 
64.26 	Minnesota Racing Commission.

64.27 	Sec. 8. Minnesota Statutes 2014, section 240.03, is amended to read:
64.28 	240.03 COMMISSION POWERS AND DUTIES.
64.29 	The commission has the following powers and duties:
64.30 	(1) to regulate horse racing in Minnesota to ensure that it is conducted in the public 
64.31 	interest;
65.1 	(2) to issue licenses as provided in this chapter;
65.2 	(3) to enforce all laws and rules governing horse racing;
65.3 	(4) to collect and distribute all taxes provided for in this chapter;
65.4 	(5) to conduct necessary investigations and inquiries and to issue subpoenas to 
65.5 	compel the attendance of witnesses and the submission of information, documents, and 
65.6 	records, and other evidence it deems necessary to carry out its duties;
65.7 	(6) to supervise the conduct of pari-mutuel betting on horse racing;
65.8 	(7) to employ and supervise personnel under this chapter;
65.9 	(8) to determine the number of racing days to be held in the state and at each 
65.10 	licensed racetrack;
65.11 	(9) to take all necessary steps to ensure the integrity of racing in Minnesota; and
65.12 	(10) to impose fees on the racing and card playing industries sufficient to recover the 
65.13 	operating costs of the commission with the approval of the legislature according to section 
65.14 	16A.1283. Notwithstanding section 16A.1283, when the legislature is not in session, the 
65.15 	commissioner of management and budget may grant interim approval for any new fees 
65.16 	or adjustments to existing fees that are not statutorily specified, until such time as the 
65.17 	legislature reconvenes and acts upon the new fees or adjustments. As part of its biennial 
65.18 	budget request, the commission must propose changes to its fees that will be sufficient to 
65.19 	recover the operating costs of the commission.

65.20 	Sec. 9. Minnesota Statutes 2014, section 240.08, subdivision 2, is amended to read:
65.21 		Subd. 2.Application. (a) An application for a class C license must be on a form 
65.22 	the commission prescribes and must be accompanied by an affidavit of qualification 
65.23 	that the applicant:
65.24 	(a) (1) is not in default in the payment of an obligation or debt to the state under 
65.25 	Laws 1983, chapter 214;
65.26 	(b) (2) does not have a felony conviction of record in a state or federal court and 
65.27 	does not have a state or federal felony charge pending;
65.28 	(c) (3) is not and never has been connected with or engaged in an illegal business;
65.29 	(d) (4) has never been found guilty of fraud or misrepresentation in connection 
65.30 	with racing or breeding;
65.31 	(e) (5) has never been found guilty of a violation of law or rule relating to horse 
65.32 	racing, pari-mutuel betting or any other form of gambling which is a serious violation 
65.33 	as defined by the commission's rules; and
66.1 	(f) (6) has never been found to have knowingly violated a rule or an order of the 
66.2 	commission or a law or rule of Minnesota or another jurisdiction relating to horse racing, 
66.3 	pari-mutuel betting, or any other form of gambling.
66.4 	(b) The application must also contain an irrevocable consent statement, to be signed 
66.5 	by the applicant, which states that suits and actions relating to the subject matter of the 
66.6 	application or acts or omissions arising from it may be commenced against the applicant in 
66.7 	any court of competent jurisdiction in this state by the service on the secretary of state of 
66.8 	any summons, process, or pleading authorized by the laws of this state. If any summons, 
66.9 	process, or pleading is served upon the secretary of state, it must be by duplicate copies. 
66.10 	One copy must be retained in the Office of the Secretary of State and the other copy must 
66.11 	be forwarded immediately by certified mail to the address of the applicant, as shown by 
66.12 	the records of the commission.

66.13 	Sec. 10. Minnesota Statutes 2014, section 240.08, subdivision 4, is amended to read:
66.14 		Subd. 4.License issuance and renewal. If the commission determines that 
66.15 	the applicant is qualified for the occupation for which licensing is sought and will 
66.16 	not adversely affect the public health, welfare, and safety or the integrity of racing in 
66.17 	Minnesota, it may issue a class C license to the applicant. If it makes a similar finding 
66.18 	for a renewal of a class C license it may renew the license. Class C licenses are effective 
66.19 	for a minimum of one year for all class C licenses, and up to three years for certain 
66.20 	classifications of class C licenses to be determined by the commission.

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

66.22 	Sec. 11. Minnesota Statutes 2014, section 240.08, subdivision 5, is amended to read:
66.23 		Subd. 5.Revocation and suspension. (a) The commission may revoke a class C 
66.24 	license for a violation of law or rule which in the commission's opinion adversely affects 
66.25 	the integrity of horse racing in Minnesota, the public health, welfare, or safety, or for an 
66.26 	intentional false statement made in a license application.
66.27 	The commission may suspend a class C license for up to one year for a violation of 
66.28 	law, order or rule.
66.29 	The commission may delegate to its designated agents the authority to impose 
66.30 	suspensions of class C licenses, and the revocation or suspension of a class C license may 
66.31 	be appealed to the commission according to its rules.
66.32 	(b) A license revocation or suspension for more than 90 days is a contested case 
66.33 	under sections 14.57 to 14.69 of the Administrative Procedure Act and is in addition to 
66.34 	criminal penalties imposed for a violation of law or rule. The commission may summarily 
67.1 	suspend a license for more than 90 days prior to a contested case hearing where it is 
67.2 	necessary to ensure the integrity of racing or to protect the public health, welfare, or safety. 
67.3 	A contested case hearing must be held within 20 30 days of the summary suspension and 
67.4 	the administrative law judge's report must be issued within 20 30 days from the close of 
67.5 	the hearing record. In all cases involving summary suspension the commission must issue 
67.6 	its final decision within 30 days from receipt of the report of the administrative law judge 
67.7 	and subsequent exceptions and argument under section 14.61.

67.8 	Sec. 12. Minnesota Statutes 2014, section 240.10, is amended to read:
67.9 	240.10 LICENSE FEES.
67.10 	The fee for a class A license is $253,000 per year and must be remitted on July 1. 
67.11 	The fee for a class B license is $500 for each assigned racing day and $100 for each day 
67.12 	on which simulcasting is authorized and must be remitted on July 1. Included herein are 
67.13 	all days assigned to be conducted after January 1, 2003. The fee for a class D license is 
67.14 	$50 for each assigned racing day on which racing is actually conducted. Fees imposed on 
67.15 	class D licenses must be paid to the commission at a time and in a manner as provided by 
67.16 	rule of the commission.
67.17 	The commission shall by rule establish an annual license fee for each occupation it 
67.18 	licenses under section 240.08but no annual fee for a class C license may exceed $100.

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

67.20 	Sec. 13. Minnesota Statutes 2014, section 240.13, subdivision 5, is amended to read:
67.21 		Subd. 5.Purses. (a) From the amounts deducted from all pari-mutuel pools by a 
67.22 	licensee, an amount equal to not less than the following percentages of all money in all 
67.23 	pools must be set aside by the licensee and used for purses for races conducted by the 
67.24 	licensee, provided that a licensee may agree by contract with an organization representing 
67.25 	a majority of the horsepersons racing the breed involved to set aside amounts in addition 
67.26 	to the following percentages, if the contract is in writing and filed with the commission:
67.27 	(1) for live races conducted at a class A facility, and for races that are part of full 
67.28 	racing card simulcasting that takes place within the time period of the live races, 8.4 
67.29 	percent of handle;
67.30 	(2) for simulcasts conducted during the racing season other than as provided for in 
67.31 	clause (1), 50 percent of the takeout remaining after deduction for taxes on pari-mutuel 
67.32 	pools, payment to the breeders fund, and payment to the sending out-of-state racetrack for 
67.33 	receipt of the signal; and
68.1 	(3) (2) for simulcasts conducted outside of the racing season, 25 any day a class A 
68.2 	facility is licensed, not less than 37 percent of the takeout remaining after deduction for the 
68.3 	state pari-mutuel tax, payment to the breeders fund, and payment to the sending out-of-state 
68.4 	racetrack for receipt of the signal and, before January 1, 2005, a further deduction of 
68.5 	eight percent of all money in all pools. In the event that wagering on simulcasts outside 
68.6 	of the racing season exceeds $125 million in any calendar year, the amount set aside for 
68.7 	purses by this formula is increased to 30 percent on amounts between $125,000,000 and 
68.8 	$150,000,000 wagered; 40 percent on amounts between $150,000,000 and $175,000,000 
68.9 	wagered; and 50 percent on amounts in excess of $175,000,000 wagered. In lieu of 
68.10 	the eight percent deduction, A deduction as agreed to between the licensee and the 
68.11 	horsepersons' organization representing the majority of horsepersons racing at the licensee's 
68.12 	class A facility during the preceding 12 months, is allowed after December 31, 2004.
68.13 	The commission may by rule provide for the administration and enforcement of 
68.14 	this subdivision. The deductions for payment to the sending out-of-state racetrack must 
68.15 	be actual, except that when there exists any overlap of ownership, control, or interest 
68.16 	between the sending out-of-state racetrack and the receiving licensee, the deduction 
68.17 	must not be greater than three percent unless agreed to between the licensee and the 
68.18 	horsepersons' organization representing the majority of horsepersons racing the breed 
68.19 	racing the majority of races during the existing racing meeting or, if outside of the racing 
68.20 	season, during the most recent racing meeting.
68.21 	In lieu of the amount the licensee must pay to the commission for deposit in the 
68.22 	Minnesota breeders fund under section 240.15, subdivision 1, The licensee shall pay to the 
68.23 	commission for deposit in the Minnesota breeders fund 5-1/2 percent of the takeout from 
68.24 	all pari-mutuel pools generated by wagering at the licensee's facility on full racing card 
68.25 	simulcasts of races not conducted in this state.
68.26 	(b) From the money set aside for purses, the licensee shall pay to the horseperson's 
68.27 	organization representing the majority of the horsepersons racing the breed involved 
68.28 	and contracting with the licensee with respect to purses and the conduct of the racing 
68.29 	meetings and providing representation to its members, an amount as may be determined 
68.30 	by agreement by the licensee and the horsepersons' organization sufficient to provide 
68.31 	benevolent programs, benefits, and services for horsepersons and their on-track employees, 
68.32 	an amount, sufficient to perform these services, as may be determined by agreement by 
68.33 	the licensee and the horseperson's organization. The amount paid may be deducted only 
68.34 	from the money set aside for purses to be paid in races for the breed represented by the 
68.35 	horseperson's organization. With respect to racing meetings where more than one breed 
69.1 	is racing, the licensee may contract independently with the horseperson's organization 
69.2 	representing each breed racing.
69.3 	(c) Notwithstanding sections 325D.49 to 325D.66, a horseperson's organization 
69.4 	representing the majority of the horsepersons racing a breed at a meeting, and the members 
69.5 	thereof, may agree to withhold horses during a meeting.
69.6 	(d) Money set aside for purses from wagering, during the racing season, on 
69.7 	simulcasts must be used for purses for live races conducted at the licensee's class A facility 
69.8 	during the same racing season, over and above the 8.4 percent purse requirement or any 
69.9 	higher requirement to which the parties agree, for races conducted in this state. Money 
69.10 	set aside for purses from wagering, outside of the racing season, on simulcasts must be 
69.11 	for purses for live races conducted at the licensee's class A facility during the next racing 
69.12 	season, over and above the 8.4 percent purse requirement or any higher requirement to 
69.13 	which the parties agree, for races conducted in this state.
69.14 	(e) (d) Money set aside for purses from wagering on simulcasts must be used for 
69.15 	purses for live races involving the same breed involved in the simulcast except that money 
69.16 	set aside for purses and payments to the breeders fund from wagering on full racing card 
69.17 	simulcasts of races not conducted in this state, occurring during a live mixed meet, must 
69.18 	be allotted to the purses and breeders fund for each breed participating in the mixed meet 
69.19 	as agreed upon by the breed organizations participating in the live mixed meet. The 
69.20 	agreement shall be in writing and filed with the commission prior to the first day of the live 
69.21 	mixed meet. In the absence of a written agreement filed with the commission, the money 
69.22 	set aside for purses and payments to the breeders fund from wagering on simulcasts, 
69.23 	occurring during a live mixed meet, shall be allotted to each breed participating in the live 
69.24 	mixed meet  in the same proportion that the number of live races run by each breed bears 
69.25 	to the total number of live races conducted during the period of the mixed meet.
69.26 	(f) (e) The allocation of money set aside for purses to particular racing meets may be 
69.27 	adjusted, relative to overpayments and underpayments, by contract between the licensee 
69.28 	and the horsepersons' organization representing the majority of horsepersons racing the 
69.29 	breed involved at the licensee's facility.
69.30 	(g) (f) Subject to the provisions of this chapter, money set aside from pari-mutuel 
69.31 	pools for purses must be for the breed involved in the race that generated the pool, except 
69.32 	that if the breed involved in the race generating the pari-mutuel pool is not racing in the 
69.33 	current racing meeting, or has not raced within the preceding 12 months at the licensee's 
69.34 	class A facility, money set aside for purses may be distributed proportionately to those 
69.35 	breeds that have run during the preceding 12 months or paid to the commission and 
70.1 	used for purses or to promote racing for the breed involved in the race generating the 
70.2 	pari-mutuel pool, or both, in a manner prescribed by the commission.
70.3 	(h) (g) This subdivision does not apply to a class D licensee.

70.4 	EFFECTIVE DATE. This section is effective January 1, 2016.

70.5 	Sec. 14. Minnesota Statutes 2014, section 240.13, subdivision 6, is amended to read:
70.6 		Subd. 6.Simulcasting. (a) The commission may permit an authorized licensee to 
70.7 	conduct simulcasting at the licensee's facility on any day authorized by the commission. 
70.8 	All simulcasts must comply with the Interstate Horse Racing Act of 1978, United States 
70.9 	Code, title 15, sections 3001 to 3007.
70.10 	(b) The commission may not authorize any day for simulcasting at a class A facility 
70.11 	during the racing season, and a licensee may not be allowed to transmit out-of-state 
70.12 	telecasts of races the licensee conducts, unless the licensee has obtained the approval of 
70.13 	the horsepersons' organization representing the majority of the horsepersons racing the 
70.14 	breed involved at the licensed racetrack during the preceding 12 months. In the case of 
70.15 	a class A facility licensed under section 240.06, subdivision 5a, the approval applicable 
70.16 	to the first year of the racetrack's operation may be obtained from the horsepersons' 
70.17 	organization that represents the majority of horsepersons who will race the breed involved 
70.18 	at the licensed racetrack during the first year of the racetrack's operation.
70.19 	(c) The licensee may pay fees and costs to an entity transmitting a telecast of a 
70.20 	race to the licensee for purposes of conducting pari-mutuel wagering on the race. The 
70.21 	licensee may deduct fees and costs related to the receipt of televised transmissions from a 
70.22 	pari-mutuel pool on the televised race, provided that one-half of any amount recouped in 
70.23 	this manner must be added to the amounts required to be set aside for purses.
70.24 	(d) With the approval of the commission and subject to the provisions of this 
70.25 	subdivision, a licensee may transmit telecasts of races it conducts, for wagering purposes, 
70.26 	to locations outside the state, and the commission may allow this to be done on a 
70.27 	commingled pool basis.
70.28 	(e) Except as otherwise provided in this section, simulcasting may be conducted on a 
70.29 	separate commingled pool basis or, with the approval of the commission, on a commingled 
70.30 	separate pool basis. All provisions of law governing pari-mutuel betting apply to 
70.31 	simulcasting except as otherwise provided in this subdivision or in the commission's 
70.32 	rules. If pools are commingled, wagering at the licensed facility must be on equipment 
70.33 	electronically linked with the equipment at the licensee's class A facility or with the 
70.34 	sending racetrack via the totalizator computer at the licensee's class A facility. Subject to 
70.35 	the approval of the commission, the types of betting, takeout, and distribution of winnings 
71.1 	on commingled pari-mutuel pools are those in effect at the sending racetrack. Breakage 
71.2 	for pari-mutuel pools on a televised race must be calculated in accordance with the law or 
71.3 	rules governing the sending racetrack for these pools, and must be distributed in a manner 
71.4 	agreed to between the licensee and the sending racetrack. Notwithstanding subdivision 7 
71.5 	and section 240.15, subdivision 5, the commission may approve procedures governing the 
71.6 	definition and disposition of unclaimed tickets that are consistent with the law and rules 
71.7 	governing unclaimed tickets at the sending racetrack. For the purposes of this section, 
71.8 	"sending racetrack" is either the racetrack outside of this state where the horse race is 
71.9 	conducted or, with the consent of the racetrack, an alternative facility that serves as the 
71.10 	racetrack for the purpose of commingling pools.
71.11 	(f) Except as otherwise provided in section 240.06, subdivision 5b, paragraph (2), 
71.12 	if there is more than one class B licensee conducting racing within the seven-county 
71.13 	metropolitan area, simulcasting may be conducted only on races run by a breed that ran at 
71.14 	the licensee's class A facility within the 12 months preceding the event.

71.15 	Sec. 15. Minnesota Statutes 2014, section 240.135, is amended to read:
71.16 	240.135 CARD CLUB REVENUE.
71.17 	(a) From the amounts received from charges authorized under section 240.30, 
71.18 	subdivision 4, the licensee shall set aside the amounts specified in this section to be 
71.19 	used for purse payments. These amounts are in addition to the breeders fund and purse 
71.20 	requirements set forth elsewhere in this chapter.
71.21 	(1) For amounts between zero and $6,000,000, the licensee shall set aside not less 
71.22 	than ten percent to be used as purses.
71.23 	(2) For amounts in excess of $6,000,000, the licensee shall set aside not less than 
71.24 	14 percent to be used as purses.
71.25 	(b) From all amounts set aside under paragraph (a), the licensee shall set aside 
71.26 	ten percent to be deposited in the breeders fund. The licensee and the horseperson's 
71.27 	organization representing the majority of horsepersons who have raced at the racetrack 
71.28 	during the preceding 12 months may negotiate percentages different from those stated in 
71.29 	this section if the agreement is in writing and filed with the Racing Commission.
71.30 	(c) It is the intent of the legislature that the proceeds of the card playing activities 
71.31 	authorized by this chapter be used to improve the horse racing industry by improving purses. 
71.32 	The licensee and the horseperson's organization representing the majority of horsepersons 
71.33 	who have raced at the racetrack during the preceding 12 months may negotiate percentages 
71.34 	that exceed those stated in this section if the agreement is in writing and filed with the 
71.35 	commission. The commission shall annually review the financial details of card playing 
72.1 	activities and determine if the present use of card playing proceeds is consistent with the 
72.2 	policy established by this paragraph. If the commission determines that the use of the 
72.3 	proceeds does not comply with the policy set forth herein, then the commission shall direct 
72.4 	the parties to make the changes necessary to ensure compliance. If these changes require 
72.5 	legislation, the commission shall make the appropriate recommendations to the legislature.

72.6 	Sec. 16. Minnesota Statutes 2014, section 240.15, subdivision 1, is amended to read:
72.7 		Subdivision 1.Taxes imposed. (a) There is imposed a tax at the rate of six percent 
72.8 	of the amount in excess of $12,000,000 annually withheld from all pari-mutuel pools by 
72.9 	the licensee, including breakage and amounts withheld under section 240.13, subdivision 
72.10 	4. For the purpose of this subdivision, "annually" is the period from July 1 to June 30 of 
72.11 	the next year.
72.12 	In addition to the above tax, the licensee must designate and pay to the commission 
72.13 	a tax of one percent of the total amount bet on each racing day handle for live races 
72.14 	conducted at a class A facility, for deposit in the Minnesota breeders fund.
72.15 	The taxes imposed by this clause must be paid from the amounts permitted to be 
72.16 	withheld by a licensee under section 240.13, subdivision 4.
72.17 	(b) The commission may impose an admissions tax of not more than ten cents on 
72.18 	each paid admission at a licensed racetrack on a racing day if:
72.19 	(1) the tax is requested by a local unit of government within whose borders the 
72.20 	track is located;
72.21 	(2) a public hearing is held on the request; and
72.22 	(3) the commission finds that the local unit of government requesting the tax is in 
72.23 	need of its revenue to meet extraordinary expenses caused by the racetrack.

72.24 	Sec. 17. Minnesota Statutes 2014, section 240.15, subdivision 6, is amended to read:
72.25 		Subd. 6.Disposition of proceeds; account. The commission shall distribute all 
72.26 	money received under this section, and all money received from license fees and fines it 
72.27 	collects, according to this subdivision. All money designated for deposit in the Minnesota 
72.28 	breeders fund must be paid into that fund for distribution under section 240.18 except that 
72.29 	all money generated by full racing card simulcasts must be distributed as provided in 
72.30 	section 240.18, subdivisions 2, paragraph (d), clauses (1), (2), and (3); and 3. Revenue 
72.31 	from an admissions tax imposed under subdivision 1 must be paid to the local unit of 
72.32 	government at whose request it was imposed, at times and in a manner the commission 
72.33 	determines. Taxes received under this section and fines collected under section 240.22
72.34 	must be paid to the commissioner of management and budget for deposit in the general 
73.1 	fund. All revenues from licenses and other fees imposed by the commission must be 
73.2 	deposited in the state treasury and credited to a racing and card playing regulation account 
73.3 	in the special revenue fund. Receipts in this account are available for the operations of the 
73.4 	commission up to the amount authorized in biennial appropriations from the legislature.

73.5 	Sec. 18. Minnesota Statutes 2014, section 240.16, subdivision 1, is amended to read:
73.6 		Subdivision 1.Powers and duties. All horse races run at a licensed racetrack must 
73.7 	be presided over by a board of three stewards, who must be appointees of the commission or 
73.8 	persons approved by it. The commission shall designate one steward as chair. At least two 
73.9 	stewards for all races either shall be employees of the commission who shall serve in the 
73.10 	unclassified service, or shall be under contract with the commission to serve as stewards. 
73.11 	The commission may delegate the following duties and powers to a board of stewards:
73.12 	(a) to ensure that races are run in accordance with the commission's rules;
73.13 	(b) to supervise the conduct of racing to ensure the integrity of the sport;
73.14 	(c) to settle disputes arising from the running of horse races, and to certify official 
73.15 	results;
73.16 	(d) to impose on licensees, for violation of law or commission rules, fines not 
73.17 	exceeding $2,000 $5,000 and license suspensions not exceeding 90 days;
73.18 	(e) to recommend to the commission where warranted penalties in excess of those 
73.19 	in clause (d);
73.20 	(f) to otherwise enforce the laws and rules of racing; and
73.21 	(g) to perform other duties and have other powers assigned by the commission.

73.22 	Sec. 19. Minnesota Statutes 2014, section 240.22, is amended to read:
73.23 	240.22 FINES.
73.24 	(a) The commission shall by rule establish a graduated schedule of civil fines for 
73.25 	violations of laws related to horse racing or of the commission's rules. The schedule 
73.26 	must include minimum and maximum fines for each violation and be based on and 
73.27 	reflect the culpability, frequency and severity of the violator's actions. The commission 
73.28 	may impose a fine from this schedule on a licensee for a violation of those rules or laws 
73.29 	relating to horse racing. The fine is in addition to any criminal penalty imposed for the 
73.30 	same violation. Fines imposed by the commission must be paid to the commission and 
73.31 	except as provided in paragraph (b), forwarded to the commissioner of management and 
73.32 	budget for deposit in the general fund. A fine in excess of $2,000 $5,000 is a contested 
73.33 	case under the Administrative Procedure Act.
74.1 	(b) If the commission is the prevailing party in a contested case proceeding, the 
74.2 	commission may recover, from amounts to be forwarded under paragraph (a), reasonable 
74.3 	attorney fees and costs associated with the contested case.

74.4 	EFFECTIVE DATE. This section is effective July 1, 2016.

74.5 	Sec. 20. Minnesota Statutes 2014, section 240.23, is amended to read:
74.6 	240.23 RULEMAKING AUTHORITY.
74.7 	The commission has the authority, in addition to all other rulemaking authority 
74.8 	granted elsewhere in this chapter to promulgate rules governing:
74.9 	(a) the conduct of horse races held at licensed racetracks in Minnesota, including but 
74.10 	not limited to the rules of racing, standards of entry, operation of claiming races, filing and 
74.11 	handling of objections, carrying of weights, and declaration of official results;
74.12 	(b) wire wired and wireless communications between the premises of a licensed 
74.13 	racetrack and any place outside the premises;
74.14 	(c) information on horse races which is sold on the premises of a licensed racetrack;
74.15 	(d) liability insurance which it may require of all class A, class B, and class D 
74.16 	licensees;
74.17 	(e) the auditing of the books and records of a licensee by an auditor employed 
74.18 	or appointed by the commission;
74.19 	(f) emergency action plans maintained by licensed racetracks and their periodic 
74.20 	review;
74.21 	(g) safety, security, and sanitation of stabling facilities at licensed racetracks;
74.22 	(h) entry fees and other funds received by a licensee in the course of conducting 
74.23 	racing which the commission determines must be placed in escrow accounts;
74.24 	(i) affirmative action in employment and contracting by class A, class B, and class D 
74.25 	licensees; and
74.26 	(j) procedures for the sampling and testing of any horse that is eligible to race in 
74.27 	Minnesota for substances or practices that are prohibited by law or rule; and
74.28 	(j) (k) any other aspect of horse racing or pari-mutuel betting which in its opinion 
74.29 	affects the integrity of racing or the public health, welfare, or safety.
74.30 	Rules of the commission are subject to chapter 14, the Administrative Procedure Act.

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

74.32 	Sec. 21. Minnesota Statutes 2014, section 364.09, is amended to read:
74.33 	364.09 EXCEPTIONS.
75.1 	(a) This chapter does not apply to the licensing process for peace officers; to law 
75.2 	enforcement agencies as defined in section 626.84, subdivision 1, paragraph (f); to fire 
75.3 	protection agencies; to eligibility for a private detective or protective agent license; to the 
75.4 	licensing and background study process under chapters 245A and 245C; to the licensing 
75.5 	and background investigation process under chapter 240; to eligibility for school bus 
75.6 	driver endorsements; to eligibility for special transportation service endorsements; to 
75.7 	eligibility for a commercial driver training instructor license, which is governed by section 
75.8 	171.35 and rules adopted under that section; to emergency medical services personnel, or 
75.9 	to the licensing by political subdivisions of taxicab drivers, if the applicant for the license 
75.10 	has been discharged from sentence for a conviction within the ten years immediately 
75.11 	preceding application of a violation of any of the following:
75.12 	(1) sections 609.185 to 609.2114, 609.221 to 609.223, 609.342 to 609.3451, or 
75.13 	617.23, subdivision 2 or 3; or Minnesota Statutes 2012, section 609.21;
75.14 	(2) any provision of chapter 152 that is punishable by a maximum sentence of 
75.15 	15 years or more; or
75.16 	(3) a violation of chapter 169 or 169A involving driving under the influence, leaving 
75.17 	the scene of an accident, or reckless or careless driving.
75.18 	This chapter also shall not apply to eligibility for juvenile corrections employment, where 
75.19 	the offense involved child physical or sexual abuse or criminal sexual conduct.
75.20 	(b) This chapter does not apply to a school district or to eligibility for a license 
75.21 	issued or renewed by the Board of Teaching or the commissioner of education.
75.22 	(c) Nothing in this section precludes the Minnesota Police and Peace Officers 
75.23 	Training Board or the state fire marshal from recommending policies set forth in this 
75.24 	chapter to the attorney general for adoption in the attorney general's discretion to apply to 
75.25 	law enforcement or fire protection agencies.
75.26 	(d) This chapter does not apply to a license to practice medicine that has been denied 
75.27 	or revoked by the Board of Medical Practice pursuant to section 147.091, subdivision 1a.
75.28 	(e) This chapter does not apply to any person who has been denied a license to 
75.29 	practice chiropractic or whose license to practice chiropractic has been revoked by the 
75.30 	board in accordance with section 148.10, subdivision 7.
75.31 	(f) This chapter does not apply to any license, registration, or permit that has 
75.32 	been denied or revoked by the Board of Nursing in accordance with section 148.261, 
75.33 	subdivision 1a.
75.34 	(g) This chapter does not supersede a requirement under law to conduct a criminal 
75.35 	history background investigation or consider criminal history records in hiring for 
75.36 	particular types of employment.

76.1 	Sec. 22. REVISOR'S INSTRUCTION.
 76.2 	(a) The revisor of statutes shall renumber the subdivisions in Minnesota Statutes, 
76.3 	section 240.01, to put the definitions contained in that section in alphabetical order.
76.4 	(b) The revisor of statutes shall correct any cross-references in Minnesota Statutes 
76.5 	and Minnesota Rules as a result of the renumbering in paragraph (a).

76.6 	Sec. 23.  REPEALER.
 76.7 	Minnesota Statutes 2014, section 240.01, subdivisions 12 and 23, are repealed.

76.8 	ARTICLE 5
76.9 	REVENUE

76.10 	Section 1. Minnesota Statutes 2014, section 270C.722, subdivision 1, is amended to 
76.11 	read:
76.12 		Subdivision 1.Notice of revocation; hearings. (a) If: (1) a person fails to comply 
76.13 	with chapter 297A or the sales and use tax provisions of chapter 289A or the rules related 
76.14 	to sales tax, or (2) any retailer purchases for resale from an unlicensed seller more than 
76.15 	20,000 cigarettes or $500 or more worth of tobacco products, without reasonable cause, 
76.16 	the commissioner may give the person 30 days' notice in writing, specifying the violations, 
76.17 	and stating that based on the violations the commissioner intends to revoke the person's 
76.18 	permit issued under section 297A.84. The notice must also advise the person of the right to 
76.19 	contest the revocation under this subdivision. It must also explain the general procedures 
76.20 	for a contested case hearing under chapter 14. The notice may be served personally or by 
76.21 	mail in the manner prescribed for service of an order of assessment.
76.22 	(b) If the person does not request a hearing within 30 days after the date of the 
76.23 	notice of intent, the commissioner may serve a notice of revocation of permit upon the 
76.24 	person, and the permit is revoked. If a hearing is timely requested, and held, the permit 
76.25 	is revoked after the commissioner serves an order of revocation of permit under section 
76.26 	14.62, subdivision 1.

76.27 	EFFECTIVE DATE. This section is effective August 1, 2015.

76.28 	Sec. 2. Minnesota Statutes 2014, section 270C.728, is amended by adding a 
76.29 	subdivision to read:
76.30 		Subd. 8.Publication of revoked retail cigarette licenses. (a) Notwithstanding 
76.31 	any other law, the commissioner may publish a list of persons who have had their retail 
76.32 	licenses to sell cigarettes or tobacco products revoked under section 297F.186. In the case 
77.1 	of a license holder that is a business entity, the commissioner may also publish the name 
77.2 	of responsible persons of the license holder, as defined in section 297F.186, subdivision 1.
77.3 	(b) At least 30 days before publishing the name of a license holder or responsible 
77.4 	person, the commissioner shall mail a written notice to the license holder and to 
77.5 	responsible persons of the license holder of the commissioner's intent to publish. This 
77.6 	notice may be included as part of the notice of intent to revoke a license as required under 
77.7 	section 297F.186, subdivision 3.
77.8 	(c) The list may be published by any medium or method. The list must contain the 
77.9 	name and address of the license holder and name of the responsible person and the date 
77.10 	the license was revoked.
77.11 	(d) The commissioner shall remove the name of a license holder or responsible 
77.12 	person from the list five years from the date of the license revocation or upon the license 
77.13 	holder or responsible person receiving a license clearance under section 297F.186.

77.14 	EFFECTIVE DATE. This section is effective August 1, 2015.

77.15 	Sec. 3. Minnesota Statutes 2014, section 297F.01, subdivision 14, is amended to read:
77.16 		Subd. 14.Retailer. "Retailer" means a person required to be licensed under chapter 
77.17 	461located in this state engaged in this state in the business of selling, or offering to sell, 
77.18 	cigarettes or tobacco products to consumers.

77.19 	EFFECTIVE DATE. This section is effective August 1, 2015.

77.20 	Sec. 4. Minnesota Statutes 2014, section 297F.03, subdivision 5, is amended to read:
77.21 		Subd. 5.License fees; cigarettes. Each application for a cigarette distributor's 
77.22 	license must be accompanied by a fee of $300 $500. Each application for a cigarette 
77.23 	subjobber's license must be accompanied by a fee of $24 $100. A distributor or subjobber 
77.24 	applying for a license during the second year of a two-year licensing period is required to 
77.25 	pay only one-half of the license fee.

77.26 	EFFECTIVE DATE. This section is effective for license periods beginning after 
77.27 	December 31, 2015.

77.28 	Sec. 5. Minnesota Statutes 2014, section 297F.03, subdivision 6, is amended to read:
77.29 		Subd. 6.License fees; tobacco products. Each application for a tobacco products 
77.30 	distributor's license must be accompanied by a fee of $75 $500. Each application for 
77.31 	a tobacco products subjobber's license must be accompanied by a fee of $20 $100. A 
78.1 	distributor or subjobber applying for a license during the second year of a two-year 
78.2 	licensing period is required to pay only one-half of the license fee.

78.3 	EFFECTIVE DATE. This section is effective for license periods beginning after 
78.4 	December 31, 2015.

78.5 	Sec. 6. Minnesota Statutes 2014, section 297F.04, subdivision 1, is amended to read:
78.6 		Subdivision 1.Powers of commissioner. The commissioner may revoke or, 
78.7 	suspend, or refuse to renew the license or licenses of any distributor or subjobber, or 
78.8 	refuse to issue a license to an applicant for a distributor or subjobber license, for violation 
78.9 	of this chapter, any other act applicable to the sale of cigarettes or tobacco products, or any 
78.10 	rule promulgated by the commissioner, in furtherance of this chapter.

78.11 	EFFECTIVE DATE. This section is effective August 1, 2015.

78.12 	Sec. 7. Minnesota Statutes 2014, section 297F.13, subdivision 4, is amended to read:
78.13 		Subd. 4.Retailer and subjobber to preserve purchase invoices. Every retailer and 
78.14 	subjobber shall procure itemized invoices of all cigarettes or tobacco products purchased.
78.15 	The retailer and subjobber shall preserve a legible copy of each invoice for one 
78.16 	year from the date of the invoice or as long as the cigarette or tobacco product listed on 
78.17 	the invoice is available for sale or in their possession, whichever period is longer. The 
78.18 	retailer and subjobber shall preserve copies of the invoices at each retail location or at a 
78.19 	central location provided that the invoice must be produced and made available at a retail 
78.20 	location within one hour when requested by the commissioner or duly authorized agents 
78.21 	and employees. Copies should be numbered and kept in chronological order.
78.22 	To determine whether the business is in compliance with the provisions of this 
78.23 	chapter, at any time during usual business hours, the commissioner, or duly authorized 
78.24 	agents and employees, may enter any place of business of a retailer or subjobber without 
78.25 	a search warrant and inspect the premises, the records required to be kept under this 
78.26 	chapter, and the packages of cigarettes, tobacco products, and vending devices contained 
78.27 	on the premises.

78.28 	EFFECTIVE DATE. This section is effective for sales and purchases by subjobbers 
78.29 	and retailers made on or after August 1, 2015.

78.30 	Sec. 8. [297F.186] REVOCATION OF CIGARETTE AND TOBACCO RETAIL 
78.31 	LICENSE.
79.1 		Subdivision 1.Cigarette and tobacco retail revocation. (a) A licensing authority 
79.2 	must not issue, transfer, or renew, and must revoke, a license if the commissioner has 
79.3 	notified the licensing authority that the license holder or applicant has been in possession 
79.4 	of contraband cigarettes or tobacco products as defined under section 297F.21 at the 
79.5 	location covered by the license.
79.6 	(b) Within ten days after receipt of the notification from the commissioner under 
79.7 	paragraph (a), the licensing authority must notify the license holder by mail of the 
79.8 	revocation of the license or an applicant of a denial license issuance. The notice must 
79.9 	include a copy of the commissioner's notice to the licensing authority and information, in 
79.10 	the form specified by the commissioner, on the licensee's option for receiving a license 
79.11 	clearance from the commissioner. The licensing authority must revoke the license within 
79.12 	30 days after receiving the notice from the commissioner, unless it receives a license 
79.13 	clearance from the commissioner as provided in subdivision 2, paragraph (b).
79.14 	(c) For purposes of this section, the following terms have the meanings given.
79.15 	(1) "License holder" means an individual or legal entity who has a license to sell 
79.16 	cigarettes or tobacco products issued under chapter 461.
79.17 	(2) "License" means a license to sell cigarettes or tobacco products under chapter 461.
79.18 	(3) "Licensing authority" means a town board, county board, governing body of a 
79.19 	home rule charter or statutory city, or state agricultural society authorized to issue licenses 
79.20 	under chapter 461.
79.21 	(4) "Applicant" is any individual, corporation, partnership, or any other legal entity 
79.22 	that is a holder of a license or that has filed an application to obtain a license.
79.23 	(5) "Responsible person" means any individual who, either singly or jointly with 
79.24 	others, has the control of, supervision of, or responsibility for filing tax returns or reports, 
79.25 	paying taxes, or collecting or withholding and remitting taxes to the commissioner for 
79.26 	a license holder, or who has authority to purchase cigarettes or tobacco products, or 
79.27 	supervises a person who has authority to purchase cigarettes or tobacco products for 
79.28 	the license holder.
79.29 		Subd. 2.New licenses after revocation. (a) An applicant who has had a 
79.30 	license revoked under this section, or an applicant with a responsible person who was 
79.31 	a responsible person for another entity for which a license was revoked under this 
79.32 	section, may not apply for a license or seek the reinstatement of a revoked license 
79.33 	unless the applicant presents to the licensing authority a license clearance issued by the 
79.34 	commissioner. A licensing authority must not issue a new license to an applicant with 
79.35 	such a responsible person or to an applicant who has had a license revoked under this 
80.1 	section or reinstate a revoked license unless the applicant presents to the authority a 
80.2 	license clearance issued by the commissioner.
80.3 	(b) Except as provided in paragraph (f), the commissioner may issue a license 
80.4 	clearance if the applicant and all responsible persons of the applicant:
80.5 	(1) sign an agreement that acknowledges that the applicant and the responsible 
80.6 	person will follow all laws related to the taxation of cigarettes and tobacco products, 
80.7 	including the requirements to:
80.8 	(i) purchase all cigarettes and tobacco products from distributors and subjobbers 
80.9 	licensed by the commissioner;
80.10 	(ii) maintain invoices of all cigarettes or tobacco products purchased as required 
80.11 	under section 297F.13, subdivision 4, and produce those invoices within one hour when 
80.12 	requested by the commissioner or duly authorized agents and employees; and
80.13 	(iii) timely file and pay to the commissioner all returns and all sales taxes related to 
80.14 	the sale of tobacco products; and
80.15 	(2) deposit with the commissioner security or a surety bond in an amount equal 
80.16 	to ten times the amount of tax on the contraband cigarettes or tobacco products. The 
80.17 	commissioner must hold the security deposit for two years.
80.18 	(c) The commissioner must pay interest on any money deposited as security. The 
80.19 	interest is calculated from the date of deposit to the date of refund, or date of application 
80.20 	to any outstanding tax liability, at a rate specified in section 270C.405. The commissioner 
80.21 	must refund the security deposit to the applicant at the end of the two-year period 
80.22 	unless the applicant has any unpaid tax liabilities payable to the commissioner. The 
80.23 	commissioner may apply the security deposit to unpaid tax liabilities of the applicant 
80.24 	owed to the commissioner and to the tax on contraband cigarettes or tobacco products 
80.25 	owned, possessed, sold, or offered for sale by the applicant after the license clearance 
80.26 	has been issued.
80.27 	(d) The commissioner may refund the security deposit before the end of the two-year 
80.28 	holding period if the license holder no longer has a license to sell cigarettes or tobacco 
80.29 	products issued by a licensing authority in the state.
80.30 	(e) If the commissioner determines that a licensing authority has issued a new license 
80.31 	or reinstated a revoked license without the applicant submitting a license clearance, the 
80.32 	commissioner may notify the licensing authority to revoke the license. Revocations under 
80.33 	this subdivision are controlled by the provisions of subdivisions 1, paragraph (b), and 3. 
80.34 	The commissioner must send notice of intent to require revocation to the license holder 
80.35 	and to the responsible person of the license holder.
81.1 	(f) If an applicant has had, or if a person has been a responsible person to, a 
81.2 	cumulative number of two or more licenses revoked under this subdivision in a five-year 
81.3 	period by licensing authorities within the state, the commissioner may refuse to issue a 
81.4 	license clearance until 24 months have elapsed after the last revocation and the applicant 
81.5 	has satisfied the conditions for reinstatement of a revoked license or issuance of a new 
81.6 	license imposed by this subdivision.
81.7 		Subd. 3.Notice and hearing. (a) Prior to notifying a licensing authority pursuant 
81.8 	to subdivision 1 to revoke a license, the commissioner must send a notice to the license 
81.9 	holder and to any known responsible person of the license holder of the commissioner's 
81.10 	intent to require revocation of the license and of the license holder's or responsible person's 
81.11 	right to a hearing. If the license holder or responsible person requests a hearing in writing 
81.12 	within 30 days of the date of the notice, a contested case hearing must be held. The hearing 
81.13 	must be held within 45 days of the date the commissioner refers the case to the Office of 
81.14 	Administrative Hearings. Notwithstanding any law to the contrary, the license holder or 
81.15 	responsible person must be served in writing specifying the time and place of the hearing 
81.16 	and the allegations against the license holder or responsible person. The notice may be 
81.17 	served at least 20 days before the hearing personally or by mail. A license is subject to 
81.18 	revocation when 30 days have passed following the date of the notice in this paragraph 
81.19 	without the license holder requesting a hearing, or, if a hearing is timely requested, upon 
81.20 	adverse final determination of the case after the hearing under section 14.62, subdivision 1.
81.21 	(b) The commissioner may notify a licensing authority under subdivision 1 only 
81.22 	after the requirements of paragraph (a) have been satisfied.
81.23 	(c) A hearing under this subdivision is in lieu of any other hearing or proceeding 
81.24 	provided by law arising from any action taken under subdivision 1.

81.25 	EFFECTIVE DATE. This section is effective August 1, 2015.

81.26 	Sec. 9. Minnesota Statutes 2014, section 297F.19, is amended by adding a subdivision 
81.27 	to read:
81.28 		Subd. 10.Penalty for retailers who fail to comply. (a) A retailer who fails to 
81.29 	produce an itemized invoice from a licensed seller within one hour of being requested by 
81.30 	the commissioner to do so as required under section 297F.13, subdivision 4, or who offers 
81.31 	for sale or holds in inventory cigarettes or tobacco products without a license required 
81.32 	under chapter 461 is subject to a penalty of $1,000 for the first violation,$3,000 for the 
81.33 	second violation, and $5,000 for the third and each subsequent violation occurring during 
81.34 	any 36-month period.
82.1 	(b) A retailer who offers for sale or holds in inventory untaxed cigarettes or tobacco 
82.2 	products is subject to a penalty equal to the greater of $2,000, or 150 percent of the tax 
82.3 	due on the cigarettes or tobacco products.

82.4 	EFFECTIVE DATE. This section is effective for violations occurring on or after 
82.5 	August 1, 2015.

82.6 	Sec. 10. Minnesota Statutes 2014, section 297F.20, is amended by adding a subdivision 
82.7 	to read:
82.8 		Subd. 2a.Penalties for willful failure to file or pay. (a) A person or consumer 
82.9 	required to file a return, report, or other document with the commissioner who willfully 
82.10 	attempts in any manner to evade or defeat a tax under this chapter by failing to do so 
82.11 	when required is guilty of a felony.
82.12 	(b) A person or consumer required to pay or to collect and remit a tax under this 
82.13 	chapter, who willfully attempts to evade or defeat a tax by failing to do so when required, 
82.14 	is guilty of a felony.

82.15 	EFFECTIVE DATE. This section is effective for offenses committed on or after 
82.16 	August 1, 2015.

82.17 	Sec. 11. Minnesota Statutes 2014, section 297F.20, is amended by adding a subdivision 
82.18 	to read:
82.19 		Subd. 13.Aggregation and consolidation of venue. In any prosecution under this 
82.20 	section, the number of unstamped cigarettes or the value of the untaxed tobacco products 
82.21 	possessed, received, transported, sold, offered to be sold, or purchased in violation of 
82.22 	this section within any six-month period may be aggregated and the defendant charged 
82.23 	accordingly in applying the provisions of this section. When two or more offenses are 
82.24 	committed by the same individual in two or more counties, the accused may be prosecuted 
82.25 	in any county in which one of the offenses was committed.

82.26 	EFFECTIVE DATE. This section is effective for offenses committed on or after 
82.27 	August 1, 2015.

82.28 	Sec. 12. Minnesota Statutes 2014, section 297F.21, subdivision 1, is amended to read:
82.29 		Subdivision 1.Contraband defined. The following are declared to be contraband 
82.30 	and therefore subject to civil and criminal penalties under this chapter:
82.31 	(a) Cigarette packages which do not have stamps affixed to them as provided in this 
82.32 	chapter, including but not limited to (i) packages with illegible stamps and packages with 
83.1 	stamps that are not complete or whole even if the stamps are legible, and (ii) all devices 
83.2 	for the vending of cigarettes in which packages as defined in item (i) are found, including 
83.3 	all contents contained within the devices.
83.4 	(b) A device for the vending of cigarettes and all packages of cigarettes, where the 
83.5 	device does not afford at least partial visibility of contents. Where any package exposed 
83.6 	to view does not carry the stamp required by this chapter, it shall be presumed that all 
83.7 	packages contained in the device are unstamped and contraband.
83.8 	(c) A device for the vending of cigarettes to which the commissioner or authorized 
83.9 	agents have been denied access for the inspection of contents. In lieu of seizure, the 
83.10 	commissioner or an agent may seal the device to prevent its use until inspection of 
83.11 	contents is permitted.
83.12 	(d) A device for the vending of cigarettes which does not carry the name and address 
83.13 	of the owner, plainly marked and visible from the front of the machine.
83.14 	(e) A device including, but not limited to, motor vehicles, trailers, snowmobiles, 
83.15 	airplanes, and boats used with the knowledge of the owner or of a person operating with 
83.16 	the consent of the owner for the storage or transportation of more than 5,000 cigarettes 
83.17 	which are contraband under this subdivision. When cigarettes are being transported in 
83.18 	the course of interstate commerce, or are in movement from either a public warehouse to 
83.19 	a distributor upon orders from a manufacturer or distributor, or from one distributor to 
83.20 	another, the cigarettes are not contraband, notwithstanding the provisions of clause (a).
83.21 	(f) A device including, but not limited to, motor vehicles, trailers, snowmobiles, 
83.22 	airplanes, and boats used with the knowledge of the owner, or of a person operating with 
83.23 	the consent of the owner, for the storage or transportation of untaxed tobacco products 
83.24 	intended for sale in Minnesota other than those in the possession of a licensed distributor 
83.25 	on or before the due date for payment of the tax under section 297F.09, subdivision 2.
83.26 	(g) Cigarette packages or tobacco products obtained from an unlicensed seller.
83.27 	(h) Cigarette packages offered for sale or held as inventory in violation of section 
83.28 	297F.20, subdivision 7.
83.29 	(i) Tobacco products on which the tax has not been paid by a licensed distributor.
83.30 	(j) Any cigarette packages or tobacco products offered for sale or held as inventory 
83.31 	for which there is not an invoice from a licensed seller the retailer or subjobber does not 
83.32 	produce an itemized invoice from a licensed seller within one hour after being requested 
83.33 	by the commissioner to do so as required under section 297F.13, subdivision 4.
83.34 	(k) Cigarette packages which have been imported into the United States in violation 
83.35 	of United States Code, title 26, section 5754. All cigarettes held in violation of that section 
84.1 	shall be presumed to have entered the United States after December 31, 1999, in the 
84.2 	absence of proof to the contrary.
84.3 	(l) Cigarettes subject to forfeiture under section 299F.854, subdivision 5, and 
84.4 	cigarette packaging and markings, including the cigarettes contained therein, which do not 
84.5 	meet the requirements under section 299F.853, paragraph (a).
84.6 	(m) All cigarettes and tobacco products, including those for which the tax has been 
84.7 	paid, offered for sale or held as inventory by a retailer operating without a license required 
84.8 	under chapter 461.

84.9 	EFFECTIVE DATE. This section is effective August 1, 2015.

84.10 	Sec. 13. Minnesota Statutes 2014, section 461.12, subdivision 8, is amended to read:
84.11 		Subd. 8.Notice to commissioner. The licensing authority under this section shall, 
84.12 	within 30 days of the issuance or renewal of a license, inform provide the commissioner of 
84.13 	revenue of, on a form prescribed by the commissioner and completed by the applicant, 
84.14 	the licensee's name, address, trade name, Minnesota business identification number, the 
84.15 	name of the individual or individuals who will be responsible for purchasing cigarettes or 
84.16 	tobacco products for the licensee, and the effective and expiration dates of the license. 
84.17 	The commissioner of revenue must also be informed of a license renewal, transfer, 
84.18 	cancellation, suspension, or revocation during the license period.

84.19 	EFFECTIVE DATE. This section is effective for licenses issued, renewed, 
84.20 	transferred, canceled, suspended, or revoked after December 31, 2015.

84.21 	Sec. 14.  REPEALER.
 84.22 	Minnesota Statutes 2014, section 297F.185, is repealed.

84.23 	EFFECTIVE DATE. This section is effective August 1, 2015.