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; cancellation of certain appropriations; requiring general incentive 
1.6 	proposals for review by the legislative auditor; allowing counties to elect to have 
1.7 	an audit conducted by a CPA firm; changing the signature requirement for phone 
1.8 	records of certain public officials; creating three ethnic councils; allowing prepay 
1.9 	for certain software and information technology hosting services; changing 
1.10 	provisions on report on budget reserve percentage; providing reimbursement for 
1.11 	reasonable accommodation; modifying grant agreement provisions; making 
1.12 	changes to guaranteed energy-savings program, small business requirements, 
1.13 	and veteran-owned small businesses; establishing healthy eating, here at home 
1.14 	program; establishing expedited and temporary licensing for former and current 
1.15 	members of the military for certain occupations; changing certain provisions 
1.16 	governing cosmetology; assessing certain costs for Office of Administrative 
1.17 	Hearings; requirements for reinstatement of a foreign corporation; making 
1.18 	changes to provisions governing public benefit corporations; modifying 
1.19 	provisions for accountants; changing certain requirements for corporations; 
1.20 	modifying gambling provisions; limiting railroad condemnation powers in 
1.21 	certain interests; modifying debt service provision for legislative parking garage; 
1.22 	requiring some room numbers on signage in the Capitol to identify legacy 
1.23 	rooms; providing in-lieu of rent evaluation; allowing board of cosmetology to 
1.24 	adopt rules; specifying political contribution credit; specifying state agency 
1.25 	technology projects; requiring the legislative auditor to evaluate the efficacy 
1.26 	of the state auditor's examinations; requiring a report on reduction of chief 
1.27 	information officers in state agencies; making changes to provisions governing 
1.28 	military and veterans affairs; changing provisions governing pari-mutuel horse 
1.29 	racing; setting certain fees; requiring reports;amending Minnesota Statutes 2014, 
1.30 	sections 3.8843, subdivision 5; 10.43; 16A.065; 16A.152, subdivision 8; 16B.97, 
1.31 	subdivision 1; 16B.98, subdivisions 1, 11; 16C.144; 16C.16, subdivisions 
1.32 	2, 6a, by adding a subdivision; 16C.19; 148.57, by adding a subdivision; 
1.33 	148.624, subdivision 5; 148B.33, by adding a subdivision; 148B.53, by adding 
1.34 	a subdivision; 148B.5301, by adding a subdivision; 148F.025, by adding a 
1.35 	subdivision; 153.16, subdivisions 1, 4; 154.003; 154.11, subdivision 3; 155A.21; 
1.36 	155A.23, subdivision 8, by adding subdivisions; 155A.24, subdivision 2; 
1.37 	155A.25, subdivisions 1a, 5, by adding subdivisions; 155A.27, subdivisions 1, 2, 
1.38 	5a; 155A.271; 155A.29, subdivisions 1, 2, by adding a subdivision; 155A.30, 
1.39 	subdivisions 5, 10; 161.1419, subdivision 8; 190.19, subdivisions 2a, 3; 192.38, 
2.1 	subdivision 1; 192.501, by adding a subdivision; 197.133; 197.46; 198.01; 
2.2 	211B.37; 240.01, subdivision 22, by adding subdivisions; 240.011; 240.03; 
2.3 	240.08, subdivisions 2, 4, 5; 240.10; 240.13, subdivisions 5, 6; 240.135; 240.15, 
2.4 	subdivisions 1, 6; 240.16, subdivision 1; 240.22; 240.23; 272.484; 303.19; 
2.5 	304A.301, subdivisions 1, 5, 6, by adding a subdivision; 326A.01, subdivisions 
2.6 	2, 12, 13a, 15, 16; 326A.02, subdivisions 3, 5; 326A.05, subdivisions 1, 3; 
2.7 	326A.08, subdivision 7; 326A.10; 336A.09, subdivision 1; 349.16, subdivision 
2.8 	6a; 349.161, subdivision 4; 349.163, subdivisions 2, 6; 349.166, subdivision 2; 
2.9 	364.09; Laws 2013, chapter 142, article 1, section 10; Laws 2014, chapter 287, 
2.10 	section 25; proposing coding for new law in Minnesota Statutes, chapters 3; 6; 
2.11 	15; 16B; 138; 197; 383B; repealing Minnesota Statutes 2014, sections 3.9223; 
2.12 	3.9225; 3.9226, subdivisions 1, 2, 3, 4, 5, 6, 7; 6.48; 155A.23, subdivision 6; 
2.13 	197.131; 197.132; 240.01, subdivisions 12, 23; 375.23.
2.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.15 	ARTICLE 1
2.16 	STATE GOVERNMENT APPROPRIATIONS

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

2.25				APPROPRIATIONS
	
2.26				Available for the Year
	
2.27				Ending June 30
	
2.28					2016
		2017

2.29	Sec. 2. LEGISLATURE

2.30
2.31	Subdivision 1.Total 
Appropriation
 			$
	76,304,000
		82,132,000

2.32	Appropriations by Fund
	
2.33		2016
	2017
	
2.34	General
	76,176,000
	82,004,000
	
2.35	Health Care Access
	128,000
	128,000
	
2.36 	The amounts that may be spent for each 
2.37 	purpose are specified in the following 
2.38 	subdivisions.
3.1 	The appropriations in this section may 
3.2 	be used for any purpose relating to the 
3.3 	functions of the entities receiving the 
3.4 	appropriations, including but not limited 
3.5 	to member and employee compensation 
3.6 	and expenses, supplies, payments required 
3.7 	under lease agreements for real property, and 
3.8 	other expenses associated with legislative 
3.9 	sessions, interim activities, public hearings 
3.10 	and other public outreach activities, and 
3.11 	related activities. The Senate Committee 
3.12 	on Rules and Administration for the Senate, 
3.13 	the House of Representatives Committee 
3.14 	on Rules and Legislative Administration 
3.15 	for the House of Representatives, and the 
3.16 	Legislative Coordinating Commission for 
3.17 	entities under its control must each adopt a 
3.18 	budget approving use of these appropriations 
3.19 	for specific purposes. The budget must 
3.20 	approve use of specific amounts for employee 
3.21 	compensation, member compensation, rental 
3.22 	payments under a lease, and other categories 
3.23 	determined by the rules committees and 
3.24 	the Legislative Coordinating Commission. 
3.25 	The budget must be adopted after this 
3.26 	appropriation is enacted.

3.27	Subd. 2.Senate
 		27,962,000
		32,286,000
	
3.28 	The base for fiscal year 2018 is $32,299,000 
3.29 	and for fiscal year 2019 is $32,105,000.

3.30	Subd. 3.House of Representatives
 		31,439,000
		32,383,000
	
3.31 	During the biennium ending June 30, 2017, 
3.32 	any revenues received by the house of 
3.33 	representatives from voluntary donations 
3.34 	to support broadcast or print media are 
3.35 	appropriated to the house of representatives.

4.1	Subd. 4.Legislative Coordinating Commission
 		16,903,000
		17,463,000

4.2	Appropriations by Fund
	
4.3	General
	16,775,000
	17,335,000
	
4.4	Health Care Access 
	128,000
	128,000
	
4.5 	$6,564,000 each year from the general fund 
4.6 	is to the Office of the Legislative Auditor. 
4.7 	The auditor is requested to conduct a special 
4.8 	review of the Department of Veterans Affairs 
4.9 	financial management of Minnesota veterans 
4.10 	homes. This review should include an 
4.11 	examination of the department's:
4.12 	(1) management of increasing compensation 
4.13 	costs, including any projected increases in 
4.14 	staffing levels;
4.15 	(2) use of reserve funds in the special revenue 
4.16 	fund to manage shortfalls in funding;
4.17 	(3) implementation of federal Centers for 
4.18 	Medicare and Medicaid Services certification 
4.19 	requirements, and the ability to accurately 
4.20 	forecast and obtain federal reimbursements;
4.21 	(4) operation of the adult day care program 
4.22 	at the Minneapolis campus; and
4.23 	(5) management of facilities operating costs, 
4.24 	including plans to address the needs of aging 
4.25 	facilities.
4.26 	$380,000 in fiscal year 2017 is for the 
4.27 	revisor's administrative rules system. This is 
4.28 	a onetime appropriation.
4.29 	$297,000 the first year and $298,000 the 
4.30 	second year is for the Office of the Revisor of 
4.31 	Statutes to maintain and improve information 
4.32 	technology services.
4.33 	$35,000 in fiscal year 2016 and $35,000 in 
4.34 	fiscal year 2017 are to provide support to the 
5.1 	Legislative Commission on Data Practices 
5.2 	established under Minnesota Statutes, section 
5.3 	3.8843. This is a onetime appropriation.
5.4 	From its funds, $10,000 each year is for 
5.5 	purposes of the legislators' forum, through 
5.6 	which Minnesota legislators meet with 
5.7 	counterparts from South Dakota, North 
5.8 	Dakota, and Manitoba to discuss issues of 
5.9 	mutual concern.

5.10
5.11	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,615,000
	$
	3,616,000
	
5.12 	(a) This appropriation is to fund the Office of 
5.13 	the Governor and Lieutenant Governor.
5.14 	(b) Up to $19,000 the first year and up to 
5.15 	$19,000 the second year are for necessary 
5.16 	expenses in the normal performance of 
5.17 	the Governor's and Lieutenant Governor's 
5.18 	duties for which no other reimbursement is 
5.19 	provided.
5.20 	(c) By September 1 of each year, the 
5.21 	commissioner of management and budget 
5.22 	shall report to the chairs and ranking minority 
5.23 	members of the senate State Departments 
5.24 	and Veterans Affairs Budget Division and the 
5.25 	house of representatives State Government 
5.26 	Finance Committee any personnel costs 
5.27 	incurred by the Offices of the Governor and 
5.28 	Lieutenant Governor that were supported 
5.29 	by appropriations to other agencies during 
5.30 	the previous fiscal year. The Office of the 
5.31 	Governor shall inform the chairs and ranking 
5.32 	minority members of the committees before 
5.33 	initiating any interagency agreements.

5.34	Sec. 4. STATE AUDITOR
 	$
	2,185,000
	$
	2,231,000

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

6.2	Appropriations by Fund
	
6.3		2016
	2017
	
6.4	General
	22,125,000
	22,125,000
	
6.5
6.6	State Government 
Special Revenue
	1,823,000
	1,823,000
	
6.7	Environmental
	145,000
	145,000
	
6.8	Remediation
	250,000
	250,000

6.9	Sec. 6. SECRETARY OF STATE
 	$
	6,631,000
	$
	6,631,000
	
6.10 	Any funds available in the account 
6.11 	established in Minnesota Statutes, section 
6.12 	5.30, pursuant to the Help America Vote Act, 
6.13 	are appropriated for the purposes and uses 
6.14 	authorized by federal law.

6.15
6.16	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	1,164,000
	$
	1,028,000
	
6.17 	Campaign Finance and Public Disclosure 
6.18 	Board Web Site Redevelopment Project. 
6.19 	$150,000 in fiscal year 2016 is appropriated 
6.20 	to the Campaign Finance and Public 
6.21 	Disclosure Board to complete redevelopment 
6.22 	of its Web site. This appropriation is 
6.23 	available until June 30, 2017. By January 15, 
6.24 	2016, the director of the Campaign Finance 
6.25 	and Public Disclosure Board shall report to 
6.26 	the chairs and ranking minority members of 
6.27 	the senate State Departments and Veterans 
6.28 	Affairs Budget Division and the house of 
6.29 	representatives State Government Finance 
6.30 	Committee on the status of the Web site 
6.31 	redevelopment project. The report shall 
6.32 	include a budget detailing total dollars to be 
6.33 	spent, completion date of the project, and 
6.34 	dollars expended to date.

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

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

7.3	Appropriations by Fund
	
7.4		2016
	2017
	
7.5	General
	380,000
	383,000
	
7.6
7.7	Workers' 
Compensation
	7,250,000
	7,250,000
	
7.8 	Campaign Violations Hearings. $115,000 
7.9 	in fiscal year 2016 and $115,000 in fiscal year 
7.10 	2017 are appropriated from the general fund 
7.11 	for the cost of considering complaints filed 
7.12 	under Minnesota Statutes, section 211B.32. 
7.13 	These amounts may be used in either year 
7.14 	of the biennium.
7.15 	$6,000 in fiscal year 2016 and $6,000 in 
7.16 	fiscal year 2017 are appropriated from the 
7.17 	general fund to the Office of Administrative 
7.18 	Hearings for the cost of considering data 
7.19 	practices complaints filed under Minnesota 
7.20 	Statutes, section 13.085. These amounts may 
7.21 	be used in either year of the biennium.

7.22	Sec. 10. MN.IT SERVICES
 	$
	2,526,000
	$
	2,622,000
	
7.23 	The commissioner of management and 
7.24 	budget is authorized to provide cash flow 
7.25 	assistance of up to $110,000,000 from the 
7.26 	special revenue fund or other statutory 
7.27 	general funds as defined in Minnesota 
7.28 	Statutes, section 16A.671, subdivision 
7.29 	3, paragraph (a), to the Office of MN.IT 
7.30 	Services for the purpose of managing 
7.31 	revenue and expenditure differences during 
7.32 	the initial phases of IT consolidation. These 
7.33 	funds shall be repaid with interest by the end 
7.34 	of the fiscal year 2017 closing period.
8.1 	During the biennium ending June 30, 2017, 
8.2 	MN.IT Services must not charge fees to a 
8.3 	public noncommercial educational television 
8.4 	broadcast station eligible for funding under 
8.5 	Minnesota Statutes, chapter 129D, for 
8.6 	access to the state broadcast infrastructure. 
8.7 	If the access fees not charged to public 
8.8 	noncommercial educational television 
8.9 	broadcast stations total more than $400,000 
8.10 	for the biennium, the office may charge for 
8.11 	access fees in excess of these amounts.

8.12	Sec. 11. ADMINISTRATION

8.13	Subdivision 1.Total Appropriation
 	$
	24,397,000
	$
	22,346,000
	
8.14 	The amounts that may be spent for each 
8.15 	purpose are specified in the following 
8.16 	subdivisions.

8.17	Subd. 2.Government and Citizen Services
 		9,465,000
		8,600,000
	
8.18 	$74,000 the first year and $74,000 the second 
8.19 	year are for the Council on Developmental 
8.20 	Disabilities.
8.21 	$735,000 the first year and $65,000 the 
8.22 	second year are to conduct a disparity study 
8.23 	required under Minnesota Statutes, section 
8.24 	16C.16, subdivision 5. This is a onetime 
8.25 	appropriation.
8.26 	$200,000 in fiscal year 2016 and $200,000 
8.27 	in fiscal year 2017 are credited to the 
8.28 	accommodation account established in 
8.29 	Minnesota Statutes, section 16B.4805. 
8.30 	In fiscal year 2016, the commissioner of 
8.31 	administration may use five percent of 
8.32 	the appropriation for fiscal year 2016 for 
8.33 	developing policies and procedures to 
8.34 	implement the reimbursement program 
9.1 	established in Minnesota Statutes, section 
9.2 	16B.4805, and for educating qualifying 
9.3 	agencies about the availability of and 
9.4 	process for receiving reimbursement for 
9.5 	accommodation expenses.

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

9.7	Subd. 4.Fiscal Agent
 		12,957,000
		11,737,000
	
9.8 	The appropriations under this section are to 
9.9 	the commissioner of administration for the 
9.10 	purposes specified.
9.11 	In-Lieu of Rent. $8,158,000 the first year 
9.12 	and $8,158,000 the second year are for 
9.13 	space costs of the legislature and veterans 
9.14 	organizations, ceremonial space, and 
9.15 	statutorily free space. In-lieu of rent may be 
9.16 	used for rent loss and relocation expenses 
9.17 	related to the Capitol restoration in the fiscal 
9.18 	year 2014-2015 biennium and fiscal year 
9.19 	2016-2017 biennium. 
9.20 	Relocation Expenses. $1,380,000 the first 
9.21 	year and $960,000 the second year are for 
9.22 	rent loss and relocation expenses related 
9.23 	to the Capitol renovation project. This is a 
9.24 	onetime appropriation.
9.25 	Public Broadcasting. (a) $1,550,000 the 
9.26 	first year and $1,550,000 the second year are 
9.27 	for matching grants for public television.
9.28 	(b) $550,000 the first year and $250,000 
9.29 	the second year are for public television 
9.30 	equipment grants under Minnesota Statutes, 
9.31 	section 129D.13.
9.32 	(c) The commissioner of administration 
9.33 	must consider the recommendations of the 
9.34 	Minnesota Public Television Association 
10.1 	before allocating the amount appropriated 
10.2 	in paragraphs (a) and (b) for equipment or 
10.3 	matching grants.
10.4 	(d) $592,000 the first year and $392,000 the 
10.5 	second year are for community service grants 
10.6 	to public educational radio stations. This 
10.7 	appropriation may be used to disseminate 
10.8 	emergency information in foreign languages.
10.9 	(e) $167,000 the first year and $117,000 
10.10 	the second year are for equipment grants 
10.11 	to public educational radio stations. This 
10.12 	appropriation may be used for the repair, 
10.13 	rental, and purchase of equipment including 
10.14 	equipment under $500.
10.15 	(f) $560,000 the first year and $310,000 
10.16 	the second year are for equipment grants 
10.17 	to Minnesota Public Radio, Inc., including 
10.18 	upgrades to Minnesota's Emergency Alert 
10.19 	and AMBER Alert Systems.
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 
10.25 	the Minnesota Public Educational Radio 
10.26 	Stations before awarding grants under 
10.27 	Minnesota Statutes, section 129D.14, using 
10.28 	the appropriations in paragraphs (d), (e), and 
10.29 	(f). No grantee is eligible for a grant unless 
10.30 	they are a member of the Association of 
10.31 	Minnesota Public Educational Radio Stations 
10.32 	on or before July 1, 2015.
10.33 	(h) Any unencumbered balance remaining 
10.34 	the first year for grants to public television or 
11.1 	radio stations does not cancel and is available 
11.2 	for the second year.

11.3
11.4
11.5	Sec. 12. CAPITOL AREA 
ARCHITECTURAL AND PLANNING 
BOARD
 	$
	340,000
	$
	345,000

11.6
11.7	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	22,398,000
	$
	23,691,000
	
11.8 	$1,000,000 in fiscal year 2016 and 
11.9 	$2,000,000 in fiscal year 2017 are to maintain 
11.10 	and upgrade statewide business systems, 
11.11 	including, but not limited to, the statewide 
11.12 	accounting system, the human resource and 
11.13 	payroll system, the employment application 
11.14 	system, the enterprise learning management 
11.15 	system, the budget planning and analysis 
11.16 	system, the fiscal note tracking system, and 
11.17 	capital budget system.
11.18 	$121,000 the first year and $122,000 the 
11.19 	second year are to develop and implement 
11.20 	a return on taxpayer investment (ROTI) 
11.21 	methodology using the Pew-MacArthur 
11.22 	Results First framework to evaluate 
11.23 	corrections and human services programs 
11.24 	administered and funded by state and 
11.25 	county governments. The commissioner 
11.26 	shall engage and work with staff from 
11.27 	Pew-MacArthur Results First, and shall 
11.28 	consult with representatives of other state 
11.29 	agencies, counties, legislative staff, the 
11.30 	commissioners of corrections and human 
11.31 	services, and other commissioners of state 
11.32 	agencies and stakeholders to implement the 
11.33 	established methodology. The commissioner 
11.34 	of management and budget shall report 
11.35 	on implementation progress and make 
12.1 	recommendations to the governor and 
12.2 	legislature by January 31, 2017.
12.3 	The commissioner must report to the chairs 
12.4 	and ranking minority members of the 
12.5 	House of Representatives State Government 
12.6 	Finance Committee and the Senate State 
12.7 	Departments and Veterans Budget Division 
12.8 	by July 15, 2015, on the gainsharing program 
12.9 	in Minnesota Statutes, Section 16A.90. The 
12.10 	report must include information on how the 
12.11 	commissioner has promoted the program 
12.12 	to state employees, results achieved under 
12.13 	the program, and recommendations for any 
12.14 	legislative changes needed to make the 
12.15 	program more effective.

12.16	Sec. 14. REVENUE

12.17	Subdivision 1.Total Appropriation
 	$
	144,438,000
	$
	146,112,000

12.18	Appropriations by Fund
	
12.19		2016
	2017
	
12.20	General
	140,203,000
	141,877,000
	
12.21	Health Care Access
	1,749,000
	1,749,000
	
12.22
12.23	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
12.24	Environmental
	303,000
	303,000

12.25	Subd. 2.Tax System Management
 		115,822,000
		117,496,000

12.26	Appropriations by Fund
	
12.27	General
	111,587,000
	113,261,000
	
12.28	Health Care Access
	1,749,000
	1,749,000
	
12.29
12.30	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
12.31	Environmental
	303,000
	303,000
	
12.32 	Appropriation; Taxpayer Assistance. 
12.33 	(a) $400,000 each year from the general 
12.34 	fund is for grants to one or more nonprofit 
12.35 	organizations, qualifying under section 
12.36 	501(c)(3) of the Internal Revenue Code of 
13.1 	1986, to coordinate, facilitate, encourage, and 
13.2 	aid in the provision of taxpayer assistance 
13.3 	services. The unencumbered balance in the 
13.4 	first year does not cancel but is available for 
13.5 	the second year.
13.6 	(b) For purposes of this section, "taxpayer 
13.7 	assistance services" means accounting 
13.8 	and tax preparation services provided by 
13.9 	volunteers to low-income, elderly, and 
13.10 	disadvantaged Minnesota residents to help 
13.11 	them file federal and state income tax returns 
13.12 	and Minnesota property tax refund claims 
13.13 	and to provide personal representation before 
13.14 	the Department of Revenue and Internal 
13.15 	Revenue Service.

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

13.17	Sec. 15. GAMBLING CONTROL
 	$
	3,260,000
	$
	3,324,000
	
13.18 	These appropriations are from the lawful 
13.19 	gambling regulation account in the special 
13.20 	revenue fund.

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

13.22	Appropriations by Fund
	
13.23		2016
	2017
	
13.24	General
	269,000
	72,000
	
13.25	Special Revenue
	899,000
	1,081,000
	
13.26 	The general fund appropriation is for fiscal 
13.27 	years 2016 and 2017 only.
13.28 	The special revenue fund appropriations are 
13.29 	from the racing and card playing regulation 
13.30 	accounts. The base for the special revenue 
13.31 	fund appropriation is $972,000 in fiscal year 
13.32 	2018 and $971,000 in fiscal year 2019.
14.1 	The Racing Commission is directed to work 
14.2 	in consultation with the racing industry 
14.3 	to propose permanent dedicated funding 
14.4 	changes to fully support the operations of 
14.5 	the commission to ensure that racing is 
14.6 	conducted in the public interest. These 
14.7 	changes shall be reported to the Office of the 
14.8 	Governor and to the majority and minority 
14.9 	leaders of the relevant finance and policy 
14.10 	legislative committees by November 1, 2015.

14.11	Sec. 17. STATE LOTTERY
 					
14.12 	Notwithstanding Minnesota Statutes, section 
14.13 	349A.10, subdivision 3, the operating budget 
14.14 	must not exceed $31,000,000 in fiscal year 
14.15 	2016 and $31,000,000 in fiscal year 2017.

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

14.17
14.18	Sec. 19. COUNCIL ON BLACK 
MINNESOTANS
 	$
	396,000
	$
	401,000

14.19
14.20	Sec. 20. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	359,000
	$
	364,000

14.21
14.22	Sec. 21. COUNCIL ON AFFAIRS OF 
CHICANO/LATINO PEOPLE
 	$
	381,000
	$
	386,000

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

14.24
14.25	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

14.26	Subdivision 1.Total Appropriation
 	$
	22,022,000
	$
	22,193,000
	
14.27 	The amounts that may be spent for each 
14.28 	purpose are specified in the following 
14.29 	subdivisions.

14.30	Subd. 2.Operations and Programs
 		21,576,000
		21,822,000
	
15.1 	Notwithstanding Minnesota Statutes, section 
15.2 	138.668, the Minnesota Historical Society 
15.3 	may not charge a fee for its general tours at 
15.4 	the Capitol, but may charge fees for special 
15.5 	programs other than general tours.

15.6	Subd. 3.Fiscal Agent

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

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

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

15.14	(d) Farmamerica
		190,000
		115,000
	
15.15 	$75,000 in fiscal year 2016 is for a grant 
15.16 	to Farmamerica, the Minnesota agriculture 
15.17 	interpretive center, for capital improvements.

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

15.23	Sec. 24. BOARD OF THE ARTS

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

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

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

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

16.14
16.15	Sec. 25. MINNESOTA HUMANITIES 
CENTER
 	$
	675,000
	$
	675,000
	
16.16 	$325,000 in fiscal year 2016 and $325,000 in 
16.17 	fiscal year 2017 are for the healthy eating, 
16.18 	here at home program under Minnesota 
16.19 	Statutes, section 138.912. No more than 
16.20 	three percent of the appropriation may be 
16.21 	used for the nonprofit administration of the 
16.22 	grant program under Minnesota Statutes, 
16.23 	section 138.912.

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

16.25
16.26
16.27
16.28	Sec. 27. BOARD OF ARCHITECTURE 
ENGINEERING, LAND SURVEYING, 
LANDSCAPE ARCHITECTURE, 
GEOSCIENCE, AND INTERIOR DESIGN
 	$
	784,000
	$
	794,000

16.29
16.30	Sec. 28. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	2,565,000
	$
	2,584,000

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

16.32
16.33	Sec. 30. GENERAL CONTINGENT 
ACCOUNTS
 	$
	1,000,000
	$
	500,000

17.1	Appropriations by Fund
	
17.2		2016
	2017
	
17.3	General
	500,000
	-0-
	
17.4
17.5	State Government 
Special Revenue
	400,000
	400,000
	
17.6
17.7	Workers' 
Compensation
	100,000
	100,000
	
17.8 	(a) The appropriations in this section 
17.9 	may only be spent with the approval of 
17.10 	the governor after consultation with the 
17.11 	Legislative Advisory Commission pursuant 
17.12 	to Minnesota Statutes, section 3.30.
17.13 	(b) If an appropriation in this section for 
17.14 	either year is insufficient, the appropriation 
17.15 	for the other year is available for it.
17.16 	(c) If a contingent account appropriation 
17.17 	is made in one fiscal year, it should be 
17.18 	considered a biennial appropriation.

17.19	Sec. 31. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
17.20 	These appropriations are to be spent by the 
17.21 	commissioner of management and budget 
17.22 	according to Minnesota Statutes, section 
17.23 	3.736, subdivision 7. If the appropriation for 
17.24 	either year is insufficient, the appropriation 
17.25 	for the other year is available for it.

17.26
17.27	Sec. 32. MINNESOTA STATE RETIREMENT 
SYSTEM

17.28	Subdivision 1.Total Appropriation
 	$
	6,552,000
	$
	8,936,000
	
17.29 	The amounts that may be spent for each 
17.30 	purpose are specified in the following 
17.31 	subdivisions.

17.32
17.33	Subd. 2.Combined Legislators and 
Constitutional Officers Retirement Plan
 					
18.1 	Under Minnesota Statutes, sections 3A.03, 
18.2 	subdivision 2; 3A.04, subdivisions 3 and 4; 
18.3 	and 3A.115.
18.4 	If an appropriation in this section for either 
18.5 	year is insufficient, the appropriation for the 
18.6 	other year is available for it.

18.7
18.8	Sec. 33. PUBLIC EMPLOYEES 
RETIREMENT ASSOCIATION
 	$
	6,000,000
	$
	6,000,000
	
18.9 	Notwithstanding Minnesota Statutes, section 
18.10 	353.505, the state payments to the Public 
18.11 	Employees Retirement Association on behalf 
18.12 	of the former MERF division account are 
18.13 	$6,000,000 on September 15, 2015 and 
18.14 	$6,000,000 on September 15, 2016.

18.15
18.16	Sec. 34. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	29,831,000
	$
	29,831,000
	
18.17 	The amounts estimated to be needed are as 
18.18 	follows:
18.19 	Special Direct State Aid. $27,331,000 the 
18.20 	first year and $27,331,000 the second year 
18.21 	are for special direct state aid authorized 
18.22 	under Minnesota Statutes, section 354.436.
18.23 	Special Direct State Matching Aid. 
18.24 	$2,500,000 the first year and $2,500,000 
18.25 	the second year are for special direct state 
18.26 	matching aid authorized under Minnesota 
18.27 	Statutes, section 354.435.

18.28
18.29	Sec. 35. ST. PAUL TEACHERS 
RETIREMENT FUND
 	$
	9,827,000
	$
	9,827,000
	
18.30 	The amounts estimated to be needed for 
18.31 	special direct state aid to the first class 
18.32 	city teachers retirement fund association 
18.33 	authorized under Minnesota Statutes, section 
18.34 	354A.12, subdivisions 3a and 3c.

19.1	Sec. 36. MILITARY AFFAIRS

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

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

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

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

19.25	Sec. 37. VETERANS AFFAIRS

19.26	Subdivision 1.Total Appropriation
 	$
	69,106,000
	$
	73,679,000
	
19.27 	The amounts that may be spent for each 
19.28 	purpose are specified in the following 
19.29 	subdivisions.

19.30	Subd. 2.Veterans Programs and Services
 		16,393,000
		16,461,000
	
19.31 	$44,000 for a transfer to the Department 
19.32 	of Education to implement the expedited 
20.1 	and temporary licensing provisions of 
20.2 	Minnesota Statutes, section 197.4552. This 
20.3 	appropriation is available until June 30, 2017.
20.4 	Veterans Service Organizations. $353,000 
20.5 	each year is for grants to the following 
20.6 	congressionally chartered veterans service 
20.7 	organizations, as designated by the 
20.8 	commissioner: Disabled American Veterans, 
20.9 	Military Order of the Purple Heart, the 
20.10 	American Legion, Veterans of Foreign Wars, 
20.11 	Vietnam Veterans of America, AMVETS, 
20.12 	and Paralyzed Veterans of America. This 
20.13 	funding must be allocated in direct proportion 
20.14 	to the funding currently being provided by 
20.15 	the commissioner to these organizations.
20.16 	Minnesota Assistance Council for 
20.17 	Veterans. $750,000 each year is for a grant 
20.18 	to the Minnesota Assistance Council for 
20.19 	Veterans to provide assistance throughout 
20.20 	Minnesota to veterans and their families who 
20.21 	are homeless or in danger of homelessness, 
20.22 	including assistance with the following:
20.23 	(1) utilities;
20.24 	(2) employment; and
20.25 	(3) legal issues.
20.26 	The assistance authorized under this 
20.27 	paragraph must be made only to veterans who 
20.28 	have resided in Minnesota for 30 days prior 
20.29 	to application for assistance and according 
20.30 	to other guidelines established by the 
20.31 	commissioner. In order to avoid duplication 
20.32 	of services, the commissioner must ensure 
20.33 	that this assistance is coordinated with all 
20.34 	other available programs for veterans.
21.1 	Honor Guards. $200,000 each year is for 
21.2 	compensation for honor guards at the funerals 
21.3 	of veterans under Minnesota Statutes, section 
21.4 	197.231.
21.5 	Minnesota GI Bill. $200,000 each year is 
21.6 	for the costs of administering the Minnesota 
21.7 	GI Bill postsecondary educational benefits, 
21.8 	on-the-job training, and apprenticeship 
21.9 	program under Minnesota Statutes, section 
21.10 	197.791. Of this amount, $100,000 is for 
21.11 	transfer to the Office of Higher Education.
21.12 	Gold Star Program. $100,000 each year 
21.13 	is for administering the Gold Star Program 
21.14 	for surviving family members of deceased 
21.15 	veterans.
21.16 	County Veterans Service Office. 
21.17 	$1,100,000 each year is for funding the 
21.18 	County Veterans Service Office grant 
21.19 	program under Minnesota Statutes, section 
21.20 	197.608.

21.21	Subd. 3.Veterans Homes
 		52,713,000
		57,218,000
	
21.22 	Veterans Homes Special Revenue Account. 
21.23 	The general fund appropriations made to the 
21.24 	department may be transferred to a veterans 
21.25 	homes special revenue account in the special 
21.26 	revenue fund in the same manner as other 
21.27 	receipts are deposited according to Minnesota 
21.28 	Statutes, section 198.34, and are appropriated 
21.29 	to the department for the operation of 
21.30 	veterans homes facilities and programs.
21.31 	Maximize Federal Reimbursements. 
21.32 	The department will seek opportunities 
21.33 	to maximize federal reimbursements of 
21.34 	Medicare-eligible expenses and will provide 
21.35 	annual reports to the commissioner of 
22.1 	management and budget on the federal 
22.2 	Medicare reimbursements received. 
22.3 	Contingent upon future federal Medicare 
22.4 	receipts, reductions to the homes' general 
22.5 	fund appropriation may be made.

22.6
22.7	Sec. 38. APPROPRIATION 
CANCELLATIONS 
 					
22.8 	All unspent funds, estimated to be $44,000, 
22.9 	to implement the expedited and temporary 
22.10 	licensing provisions of Minnesota Statutes, 
22.11 	section 197.4552, under Laws 2014, chapter 
22.12 	312, article 4, section 2, subdivision 8, are 
22.13 	canceled to the general fund on June 30, 2015.
22.14 	All unspent funds, estimated to be $150,000, 
22.15 	from the Web site redevelopment project 
22.16 	appropriation under Laws 2013, chapter 
22.17 	142, article 1, section 7, are canceled to the 
22.18 	general fund on June 30, 2015.

22.19 	ARTICLE 2
22.20 	STATE GOVERNMENT OPERATIONS

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

22.25 	Sec. 2. [3.9735] EVALUATION OF ECONOMIC DEVELOPMENT INCENTIVE 
22.26 	PROGRAMS.
22.27 		Subdivision 1.Definitions. For purposes of this section, the terms defined in this 
22.28 	section have the meanings given them.
22.29 	(a) "General incentive" means a state program, statutory provision, or tax expenditure, 
22.30 	including tax credits, tax exemptions, tax deductions, grants, or loans, that is intended to 
22.31 	encourage businesses to locate, expand, invest, or remain in Minnesota or to hire or retain 
22.32 	employees in Minnesota. To be a general incentive, a state program, statutory provision, 
22.33 	or tax expenditure must be funded by an appropriation from the general fund, and be 
23.1 	available to multiple entities, projects, or associated projects or include eligibility criteria 
23.2 	with the intent that it will be available to multiple entities, projects, or associated projects.
23.3 	(b) "Exclusive incentive" means a state program, statutory provision, tax 
23.4 	expenditure, or section of a general incentive, including tax credits, tax exemptions, tax 
23.5 	deductions, grants, or loans, that is intended to encourage a single specific entity, project, 
23.6 	or associated projects to locate, expand, invest, or remain in Minnesota or to hire or retain 
23.7 	employees in Minnesota.
23.8 		Subd. 2.Selection of general incentives for review; schedule for evaluation; 
23.9 	report.  Annually, the legislative auditor shall  submit to the Legislative Audit Commission 
23.10 	a list of three to five general incentives proposed for review. In selecting general 
23.11 	incentives to include on this list, the legislative auditor may consider what the incentive 
23.12 	will cost state and local governments in actual spending and foregone revenue currently or 
23.13 	projected into the future, the legislature's need for information about a general incentive 
23.14 	that has an upcoming expiration date, and the legislature's need for regular information on 
23.15 	the results of all major general incentives. Annually, the Legislative Audit Commission 
23.16 	will select at least one general incentive for the legislative auditor's evaluation. The 
23.17 	legislative auditor will evaluate the selected general incentive or incentives, prepared 
23.18 	according to the evaluation plan established under subdivision 4, and submit a written 
23.19 	report to the Legislative Audit Commission.
23.20 		Subd. 3.Exclusive incentive schedule. The legislative auditor's schedule shall 
23.21 	ensure that at least once every four years the legislative auditor will complete an analysis 
23.22 	of best practices for exclusive incentives.
23.23 		Subd. 4.Evaluation plans. By February 1, 2016, the Legislative Audit Commission 
23.24 	shall establish evaluation plans that identify elements that the legislative auditor must 
23.25 	include in evaluations of a general incentive and an exclusive incentive. The Legislative 
23.26 	Audit Commission may modify the evaluation plans as needed.

23.27 	Sec. 3. [6.481] COUNTY AUDITS.
23.28 		Subdivision 1.Powers and duties. All the powers and duties conferred and imposed 
23.29 	upon the state auditor shall be exercised and performed by the state auditor in respect to 
23.30 	the offices, institutions, public property, and improvements of several counties of the 
23.31 	state. The state auditor may visit, without previous notice, each county and examine all 
23.32 	accounts and records relating to the receipt and disbursement of the public funds and the 
23.33 	custody of the public funds and other property.  The state auditor shall prescribe and install 
23.34 	systems of accounts and financial reports that shall be uniform, so far as practicable, for 
23.35 	the same class of offices.
24.1 		Subd. 2.Annual audit required. A county must have an annual financial audit. 
24.2 	A county may choose to have the audit performed by the state auditor, or may choose to 
24.3 	have the audit performed by a CPA firm meeting the requirements of section 326A.05. 
24.4 	The state auditor or a CPA firm may accept the records and audit of the Department of 
24.5 	Human Services instead of examining county human service funds, if the audit of the 
24.6 	Department of Human Services has been made within any period covered by the auditor's 
24.7 	audit of other county records.
24.8 		Subd. 3.CPA firm audit. A county audit performed by a CPA firm must meet 
24.9 	the standards and be in the form required by the state auditor. The state auditor may 
24.10 	require additional information from the CPA firm if the state auditor determines that is 
24.11 	in the public interest, but the state auditor must accept the audit unless the state auditor 
24.12 	determines it does not meet recognized industry auditing standards or is not in the form 
24.13 	required by the state auditor. The state auditor may make additional examinations as the 
24.14 	auditor determines to be in the public interest.
24.15 		Subd. 4.Audit availability; data. A copy of the annual audit by the state auditor or 
24.16 	by a CPA firm must be available for public inspection in the Office of the State Auditor and 
24.17 	in the Office of the County Auditor. If an audit is performed by a CPA firm, data relating 
24.18 	to the audit are subject to the same data classifications that apply under section 6.715. A 
24.19 	CPA firm conducting a county audit must provide access to data relating to the audit and is 
24.20 	liable for unlawful disclosure of the data as if it were a government entity under chapter 13.
24.21 		Subd. 5.Reporting. If an audit conducted by the state auditor or a CPA firm 
24.22 	discloses malfeasance, misfeasance, or nonfeasance, the auditor must report this to the 
24.23 	county attorney, who shall institute civil and criminal proceedings as the law and the 
24.24 	protection of the public interests requires.
24.25 		Subd. 6.Payments to state auditor. A county audited by the state auditor must 
24.26 	pay the state auditor for the costs and expenses of the audit. If the state auditor makes 
24.27 	additional examinations of a county whose audit is performed by a CPA firm, the county 
24.28 	must pay the auditor for the cost of these examinations. Payments must be deposited in 
24.29 	the state auditor enterprise fund.
24.30 		Subd. 7.Procedures for change of auditor. A county that plans to change to or 
24.31 	from the state auditor and a CPA firm must notify the state auditor of this change by 
24.32 	August 1 of an even-numbered year. Upon this notice, the following calendar year will be 
24.33 	the first year's records that will be subject to an audit by the new entity. A county that 
24.34 	changes to or from the state auditor must have two annual audits done by the new entity.

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

25.1 	Sec. 4. Minnesota Statutes 2014, section 10.43, is amended to read:
25.2 	10.43 TELEPHONE USE; APPROVAL.
25.3 	(a) Each representative, senator, constitutional officer, judge, and head of a state 
25.4 	department or agency shall sign the person's monthly long-distance telephone bills paid 
25.5 	by the state as evidence of the person's approval of each bill. This signature requirement 
25.6 	does not apply to a month in which the person's long-distance phone bill paid by the 
25.7 	state is less than $5.
25.8 	(b) Even if the monthly long-distance phone bill paid by the state for a person 
25.9 	subject to this section is less than $5, the person is responsible for paying that portion of 
25.10 	the bill that does not relate to state business. As provided in section 10.46, long-distance 
25.11 	telephone bills paid by the state are public data, regardless of the amount of the bills.

25.12 	EFFECTIVE DATE. This section is effective for telephone bills for usage on or 
25.13 	after July 1, 2015.

25.14 	Sec. 5. [15.0145] ETHNIC COUNCILS.
25.15 		Subdivision 1.Three ethnic councils; creation. (a) The Minnesota Council on 
25.16 	Latino Affairs includes public members with an ethnic heritage from Mexico, any of the 
25.17 	countries in Central or South America, Cuba, the Dominican Republic, or Puerto Rico. 
25.18 	(b) The Council for Minnesotans of African Heritage includes public members of 
25.19 	black African ancestry.
25.20 	(c) The Council on Asian-Pacific Minnesotans includes public members with an 
25.21 	ethnic heritage from any of the countries east of, and including, Afghanistan or the 
25.22 	Pacific Islands.
25.23 		Subd. 2.Membership. (a) Each council has 15 voting members. Eleven members 
25.24 	of each council are public members appointed by the governor. Four members of each 
25.25 	council are legislators.
25.26 	(b) The governor shall appoint 11 members of each council as follows:
25.27 	(1) the Minnesota Council on Latino Affairs must include one member representing 
25.28 	each of the state's congressional districts and three members appointed at-large. The 
25.29 	council must include at least five women. The governor must attempt to ensure that 
25.30 	the demographic composition of council members accurately reflects the demographic 
25.31 	composition of Minnesota's Latino community, including recent immigrants, as 
25.32 	determined by the state demographer;
25.33 	(2) the Council for Minnesotans of African Heritage must include members who are 
25.34 	broadly representative of the African heritage community of the state. The council must 
26.1 	include at least five women. At least three members must be first or second generation 
26.2 	African immigrants, who generally reflect the demographic composition of these African 
26.3 	immigrants, as determined by the state demographer; and
26.4 	(3) the Council on Asian-Pacific Minnesotans must include one member from each 
26.5 	of the five ancestries with the state's highest percentages of Asian-Pacific populations, 
26.6 	as determined by the state demographer. The other six members must be broadly 
26.7 	representative of the rest of the Asian-Pacific population, with no more than one council 
26.8 	member from any one ancestry. The council must include at least five women. For 
26.9 	purposes of this clause, ancestry refers to heritage that is commonly accepted in Minnesota 
26.10 	as a unique population.
26.11 	(c) Four legislators are voting members of each council. The speaker of the house 
26.12 	and the house minority leader shall each appoint one member to each council. The 
26.13 	Subcommittee on Committees of the senate Committee on Rules and Administration shall 
26.14 	appoint one member of the majority caucus and one member of the minority caucus to 
26.15 	each council.
26.16 	(d) The governor may appoint a commissioner of a state agency or a designee of that 
26.17 	commissioner to serve as an ex-officio, nonvoting member of a council.
26.18 		Subd. 3.Appointments; terms; removal.  (a) In making appointments to a council, 
26.19 	the governor shall consider an appointee's proven dedication and commitment to the 
26.20 	council's community and any expertise possessed by the appointee that might be beneficial 
26.21 	to the council, such as experience in public policy, legal affairs, social work, business, 
26.22 	or management. The executive director of a council and legislative members may offer 
26.23 	advice to the governor on applicants seeking appointment.
26.24 	(b) Terms, compensation, and filling of vacancies for members appointed by the 
26.25 	governor are as provided in section 15.059. Removal of members appointed by the 
26.26 	governor is governed by section 15.059, except that: (1) a member who missed more than 
26.27 	half of the council meetings convened during a 12-month period automatically is removed 
26.28 	from the council; and (2) a member appointed by the governor may be removed by a vote 
26.29 	of three of the four legislative members of the council. The chair of a council shall inform 
26.30 	the governor of the need for the governor to fill a vacancy on the council. Legislative 
26.31 	members serve at the pleasure of their appointing authority.
26.32 	(c) A member appointed by the governor may serve no more than a total of eight 
26.33 	years on a council. A legislator may serve no more than eight consecutive years or 12 
26.34 	nonconsecutive years on any one council.
26.35 		Subd. 4.Training; executive committee; meetings; support. (a) A member 
26.36 	appointed by the governor must attend orientation training within the first six months of 
27.1 	service for each term. The commissioner of administration must arrange for the training 
27.2 	to include but not be limited to the legislative process, government data practices, open 
27.3 	meeting law, Robert's Rules of Order, fiscal management, and human resources. The 
27.4 	governor must remove a member who does not complete the training.
27.5 	(b) Each council shall annually elect from among the members appointed by the 
27.6 	governor a chair and other officers it deems necessary. These officers and one legislative 
27.7 	member selected by the council shall serve as the executive committee of the council.
27.8 	(c) Forty percent of voting members of a council constitutes a quorum. A quorum is 
27.9 	required to conduct council business. A council member may not vote on any action if the 
27.10 	member has a conflict of interest under section 10A.07.
27.11 	(d) Each council shall receive administrative support from the commissioner of 
27.12 	administration under section 16B.371. The council may contract in its own name but may 
27.13 	not accept or receive a loan or incur indebtedness except as otherwise provided by law. 
27.14 	Contracts must be approved by a majority of the members of the council and executed by 
27.15 	the chair and the executive director. The council may apply for, receive, and expend in 
27.16 	its own name grants and gifts of money consistent with the powers and duties specified 
27.17 	in this section.
27.18 	(e) The attorney general shall provide legal services to the councils on behalf of the 
27.19 	state on all matters relating to the councils, including matters relating to the state as the 
27.20 	employer of the executive directors of the council, and other council staff.
27.21 		Subd. 5.Executive director; staff. (a) The Legislative Coordinating Commission 
27.22 	must appoint an executive director for each council. The executive director must be 
27.23 	experienced in administrative activities and familiar with the challenges and needs of 
27.24 	the ethnic council's larger community. The executive director serves in the unclassified 
27.25 	service at the pleasure of the Legislative Coordinating Commission.
27.26 	(b) The Legislative Coordinating Commission must establish a process for recruiting 
27.27 	and selecting applicants for the executive director positions. This process must include 
27.28 	consultation and collaboration with the applicable council.
27.29 	(c) The executive director and applicable council members must work together in 
27.30 	fulfilling council duties. The executive director must consult with the commissioners of 
27.31 	administration and management and budget to ensure appropriate financial, purchasing, 
27.32 	human resources, and other services for operation of the council. The executive director 
27.33 	must appoint and supervise the work of other staff necessary to carry out the duties of the 
27.34 	council. The executive director and other council staff are executive branch employees.
27.35 		Subd. 6.Duties of council. (a) A council must work for the implementation 
27.36 	of economic, social, legal, and political equality for its constituency. The council shall 
28.1 	work with the legislature and governor to carry out this work by performing the duties 
28.2 	in this section.
28.3 	(b) A council shall advise the governor and the legislature on issues confronting the 
28.4 	constituency of the council. This may include, but is not limited to, presenting the results 
28.5 	of surveys, studies, and community forums to the appropriate executive departments 
28.6 	and legislative committees.
28.7 	(c) A council shall advise the governor and the legislature of administrative 
28.8 	and legislative changes needed to improve the economic and social condition of the 
28.9 	constituency of the council. This may include but is not limited to working with legislators 
28.10 	to develop legislation to address these issues and to work for passage of the legislation. 
28.11 	This may also include making recommendations regarding the state's affirmative action 
28.12 	program and the state's targeted group small business program, or working with state 
28.13 	agencies and organizations to develop business opportunities and promote economic 
28.14 	development for the constituency of the council.
28.15 	(d) A council shall advise the governor and the legislature of the implications 
28.16 	and effect of proposed administrative and legislative changes on the constituency of 
28.17 	the council. This may include but is not limited to tracking legislation, testifying as 
28.18 	appropriate, and meeting with executive departments and legislators.
28.19 	(e) A council shall serve as a liaison between state government and organizations that 
28.20 	serve the constituency of the council. This may include but is not limited to working with 
28.21 	these organizations to carry out the duties in paragraphs (a) to (d), and working with these 
28.22 	organizations to develop informational programs or publications to involve and empower 
28.23 	the constituency in seeking improvement in their economic and social conditions.
28.24 	(f) A council shall perform or contract for the performance of studies designed 
28.25 	to suggest solutions to the problems of the constituency of the council in the areas of 
28.26 	education, employment, human rights, health, housing, social welfare, and other related 
28.27 	areas.
28.28 	(g) In carrying out duties under this subdivision, councils may act to advise on issues 
28.29 	that affect the shared constituencies of more than one council.
28.30 		Subd. 7.Duties of council members. A council member shall:
28.31 	(1) attend and participate in scheduled meetings and be prepared by reviewing 
28.32 	meeting notes;
28.33 	(2) maintain and build communication with the community represented;
28.34 	(3) collaborate with the council and executive director in carrying out the council's 
28.35 	duties; and
29.1 	(4) participate in activities the council or executive director deem appropriate and 
29.2 	necessary to facilitate the goals and duties of the council.
29.3 		Subd. 8.Reports. A council must report on the measurable outcomes achieved in 
29.4 	the council's current strategic plan to meet its statutory duties, along with the specific 
29.5 	objectives and outcome measures proposed for the following year. The council must 
29.6 	submit the report by January 15 each year to the chairs of the committees in the house of 
29.7 	representatives and the senate with primary jurisdiction over state government operations. 
29.8 	Each report must cover the calendar year of the year before the report is submitted. The 
29.9 	specific objectives and outcome measures for the following current year must focus on 
29.10 	three or four achievable objectives, action steps, and measurable outcomes for which 
29.11 	the council will be held accountable. The strategic plan may include other items that 
29.12 	support the statutory purposes of the council but should not distract from the primary 
29.13 	statutory proposals presented. The funding request of each council, after approval by the 
29.14 	Legislative Coordinating Commission, must also be presented by February 1 in each 
29.15 	odd-numbered year.

29.16 	Sec. 6. Minnesota Statutes 2014, section 16A.065, is amended to read:
29.17 	16A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES 
29.18 	DOCUMENTS.
29.19 	Notwithstanding section 16A.41, subdivision 1, the commissioner may allow an 
29.20 	agency to make advance deposits or payments for software or software maintenance 
29.21 	services for state-owned or leased electronic data processing equipment, for information 
29.22 	technology hosting services, for sole source maintenance agreements where it is not 
29.23 	cost-effective to pay in arrears, for exhibit booth space or boat slip rental when required 
29.24 	by the renter to guarantee the availability of space, for registration fees where advance 
29.25 	payment is required or advance payment discount is provided, and for newspaper, 
29.26 	magazine, and other subscription fees customarily paid for in advance. The commissioner 
29.27 	may also allow advance deposits by any department with the Library of Congress and 
29.28 	federal Supervisor of Documents for items to be purchased from those federal agencies.

29.29 	Sec. 7. Minnesota Statutes 2014, section 16A.152, subdivision 8, is amended to read:
29.30 		Subd. 8.Report on budget reserve percentage. (a) The commissioner of 
29.31 	management and budget shall develop and annually review a methodology for evaluating 
29.32 	the adequacy of the budget reserve based on the volatility of Minnesota's general fund 
29.33 	tax structure. The review must take into consideration relevant statistical and economic 
29.34 	literature. After completing the review, the commissioner may revise the methodology 
30.1 	if necessary. The commissioner must use the methodology to annually estimate the 
30.2 	percentage of the current biennium's general fund nondedicated revenues recommended 
30.3 	as a budget reserve.
30.4 	(b) By January 15 September 30 of each year, the commissioner shall report 
30.5 	the percentage of the current biennium's general fund nondedicated revenue that is 
30.6 	recommended as a budget reserve to the chairs and ranking minority members of the 
30.7 	legislative committees with jurisdiction over the Department of Management and Budget 
30.8 	senate committee on finance, the house of representatives committee on ways and means, 
30.9 	and the senate and house of representatives committees on taxes. The report must also 
30.10 	specify:
30.11 	(1) whether the commissioner revised the recommendation as a result of significant 
30.12 	changes in the mix of general fund taxes or the base of one or more general fund taxes;
30.13 	(2) whether the commissioner revised the recommendation as a result of a revision 
30.14 	to the methodology; and
30.15 	(3) any additional appropriate information.

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

30.17 	Sec. 8. [16B.4805] ACCOMMODATION REIMBURSEMENT.
30.18 		Subdivision 1.Definitions. "Reasonable accommodation" as used in this section 
30.19 	has the meaning given in section 363A.08. "State agency" as used in this section has the 
30.20 	meaning given in section 16A.011, subdivision 12. "Reasonable accommodations eligible 
30.21 	for reimbursement" means:
30.22 	(1) reasonable accommodations provided to applicants for employment;
30.23 	(2) reasonable accommodations for employees for services that will need to be 
30.24 	provided on a periodic or ongoing basis; or
30.25 	(3) reasonable accommodations that involve onetime expenses that total more than 
30.26 	$1,000 for an employee in a fiscal year.
30.27 		Subd. 2.Reimbursement for making reasonable accommodation. The 
30.28 	commissioner of administration shall reimburse state agencies for expenses incurred in 
30.29 	making reasonable accommodations eligible for reimbursement for agency employees and 
30.30 	applicants for employment to the extent that funds are available in the accommodation 
30.31 	account established under subdivision 3 for this purpose.
30.32 		Subd. 3.Accommodation account established. The accommodation account 
30.33 	is created as an account in the special revenue fund for reimbursing state agencies for 
30.34 	expenses incurred in providing reasonable accommodation eligible for reimbursement for 
30.35 	agency employees and applicants for agency employment.
31.1 		Subd. 4.Administration costs. The commissioner may use up to 15 percent of the 
31.2 	biennial appropriation for administration of this section.
31.3 		Subd. 5.Notification. By August 1, 2015, or within 30 days of final enactment, 
31.4 	whichever is later, and each year thereafter by June 30, the commissioner of administration 
31.5 	must notify state agencies that reimbursement for expenses incurred to make reasonable 
31.6 	accommodation eligible for reimbursement for agency employees and applicants for 
31.7 	agency employment is available under this section.
31.8 		Subd. 6.Report. By January 31 of each year, the commissioner of administration 
31.9 	must report to the chairs and ranking minority members of the house of representatives and 
31.10 	the senate committees with jurisdiction over state government finance on the use of the 
31.11 	central accommodation account during the prior calendar year. The report must include:
31.12 	(1) the number and type of accommodations requested;
31.13 	(2) the cost of accommodations requested;
31.14 	(3) the state agencies from which the requests were made;
31.15 	(4) the number of requests made for employees and the number of requests for 
31.16 	applicants for employment;
31.17 	(5) the number and type of accommodations that were not provided;
31.18 	(6) any remaining balance left in the account;
31.19 	(7) if the account was depleted, the date on which funds were exhausted and the 
31.20 	number, type, and cost of accommodations that were not reimbursed to state agencies; and
31.21 	(8) a description of how the account was promoted to state agencies.

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

31.24 	Sec. 9. Minnesota Statutes 2014, section 16B.97, subdivision 1, is amended to read:
31.25 		Subdivision 1.Grant agreement. (a) A grant agreement is a written instrument or 
31.26 	electronic document defining a legal relationship between a granting agency and a grantee 
31.27 	when the principal purpose of the relationship is to transfer cash or something of value 
31.28 	to the recipient to support a public purpose authorized by law instead of acquiring by 
31.29 	professional or technical contract, purchase, lease, or barter property or services for the 
31.30 	direct benefit or use of the granting agency.
31.31 	(b) This section does not apply to general obligation grants as defined by section 
31.32 	16A.695 and capital project grants to political subdivisions as defined by section 16A.86.

31.33 	Sec. 10. Minnesota Statutes 2014, section 16B.98, subdivision 1, is amended to read:
32.1 		Subdivision 1.Limitation. (a) As a condition of receiving a grant from 
32.2 	an appropriation of state funds, the recipient of the grant must agree to minimize 
32.3 	administrative costs. The granting agency is responsible for negotiating appropriate limits 
32.4 	to these costs so that the state derives the optimum benefit for grant funding.
32.5 	(b) This section does not apply to general obligation grants as defined by section 
32.6 	16A.695 and also capital project grants to political subdivisions as defined by section 
32.7 	16A.86.

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

32.17 	Sec. 12. Minnesota Statutes 2014, section 16C.144, is amended to read:
32.18 	16C.144 GUARANTEED ENERGY-SAVINGS PROGRAM.
32.19 		Subdivision 1.Definitions. The following definitions apply to this section.
32.20 	(a) "Utility" means electricity, natural gas, or other energy resource, water, and 
32.21 	wastewater.
32.22 	(b) "Utility cost savings" means the difference between the utility costs after 
32.23 	installation of the utility cost-savings measures pursuant to the guaranteed energy-savings 
32.24 	agreement and the baseline utility costs after baseline adjustments have been made.
32.25 	(c) "Baseline" means the preagreement utilities, operations, and maintenance costs.
32.26 	(d) "Utility cost-savings measure" means a measure that produces utility cost savings 
32.27 	or operation and maintenance cost savings.
32.28 	(e) "Operation and maintenance cost savings" means a measurable difference 
32.29 	between operation and maintenance costs after the installation of the utility cost-savings 
32.30 	measures pursuant to the guaranteed energy-savings agreement and the baseline operation 
32.31 	and maintenance costs after inflation adjustments have been made. Operation and 
32.32 	maintenance costs savings shall not include savings from in-house staff labor.
33.1 	(f) "Guaranteed energy-savings agreement" means an agreement for the installation 
33.2 	of one or more utility cost-savings measures that includes the qualified provider's 
33.3 	guarantee as required under subdivision 2.
33.4 	(g) "Baseline adjustments" means adjusting the utility cost-savings baselines 
33.5 	annually for changes in the following variables:
33.6 	(1) utility rates;
33.7 	(2) number of days in the utility billing cycle;
33.8 	(3) square footage of the facility;
33.9 	(4) operational schedule of the facility;
33.10 	(5) facility temperature set points;
33.11 	(6) weather; and
33.12 	(7) amount of equipment or lighting utilized in the facility.
33.13 	(h) "Inflation adjustment" means adjusting the operation and maintenance 
33.14 	cost-savings baseline annually for inflation.
33.15 	(i) "Lease purchase agreement Project financing" means an agreement any type of 
33.16 	financing including but not limited to lease, lease purchase, installment agreements, or 
33.17 	bonds issued by an entity, other than the state, with authority to issue bonds, obligating the 
33.18 	state to make regular lease payments to satisfy the lease costs of the utility cost-savings 
33.19 	measures until the final payment, after which time the utility cost-savings measures 
33.20 	become the sole property of the state of Minnesota.
33.21 	(j) "Qualified provider" means a person or business experienced in the design, 
33.22 	implementation, and installation of utility cost-savings measures.
33.23 	(k) "Engineering report" means a report prepared by a professional engineer licensed 
33.24 	by the state of Minnesota summarizing estimates of all costs of installations, modifications, 
33.25 	or remodeling, including costs of design, engineering, installation, maintenance, repairs, 
33.26 	and estimates of the amounts by which utility and operation and maintenance costs will be 
33.27 	reduced.
33.28 	(l) "Capital cost avoidance" means money expended by a state agency to pay for 
33.29 	utility cost-savings measures with a guaranteed savings agreement so long as the measures 
33.30 	that are being implemented to achieve the utility, operation, and maintenance cost savings 
33.31 	are a significant portion of an overall project as determined by the commissioner.
33.32 	(m) "Guaranteed energy-savings program guidelines" means policies, procedures, 
33.33 	and requirements of guaranteed savings agreements established by the Department of 
33.34 	Administration.
33.35 		Subd. 2.Guaranteed energy-savings agreement. The commissioner may enter 
33.36 	into a guaranteed energy-savings agreement with a qualified provider if:
34.1 	(1) the qualified provider is selected through a competitive process in accordance 
34.2 	with the guaranteed energy-savings program guidelines within the Department of 
34.3 	Administration;
34.4 	(2) the qualified provider agrees to submit an engineering report prior to the 
34.5 	execution of the guaranteed energy-savings agreement. The cost of the engineering report 
34.6 	may be considered as part of the implementation costs if the commissioner enters into a 
34.7 	guaranteed energy-savings agreement with the provider;
34.8 	(3) the term of the guaranteed energy-savings agreement shall not exceed 25 years 
34.9 	from the date of final installation;
34.10 	(4) the commissioner finds that the amount it the state  would spend, less the amount 
34.11 	contributed for capital cost avoidance, on the utility cost-savings measures recommended 
34.12 	in the engineering report will not exceed the amount to be saved in utility operation and 
34.13 	maintenance costs over 25 years from the date of implementation of utility cost-savings 
34.14 	measures;
34.15 	(5) the qualified provider provides a written guarantee that the annual utility, 
34.16 	operation, and maintenance cost savings during the term of the guaranteed energy-savings 
34.17 	agreement will meet or exceed the annual payments due under a lease purchase agreement 
34.18 	the project financing. The qualified provider shall reimburse the state for any shortfall of 
34.19 	guaranteed utility, operation, and maintenance cost savings; and
34.20 	(6) the qualified provider gives a sufficient bond in accordance with section 
34.21 	574.26 to the commissioner for the faithful implementation and installation of the utility 
34.22 	cost-savings measures.
34.23 		Subd. 3.Lease purchase agreement Project financing. The commissioner 
34.24 	may enter into a lease purchase agreement project financing with any party for the 
34.25 	implementation of utility cost-savings measures in accordance with the guaranteed 
34.26 	energy-savings agreement. The implementation costs of the utility cost-savings measures 
34.27 	recommended in the engineering report shall not exceed the amount to be saved in utility 
34.28 	and operation and maintenance costs over the term of the lease purchase agreement. The 
34.29 	term of the lease purchase agreement project financing shall not exceed 25 years from 
34.30 	the date of final installation. The lease project financing is assignable in accordance with 
34.31 	terms approved by the commissioner of management and budget.
34.32 		Subd. 4.Use of capital cost avoidance. The affected state agency may contribute 
34.33 	funds for capital cost avoidance for guaranteed energy-savings agreements. Use of capital 
34.34 	cost avoidance is subject to the guaranteed energy-savings program guidelines within the 
34.35 	Department of Administration.
35.1 		Subd. 5.Independent report.  For each guaranteed energy-savings agreement 
35.2 	entered into, the commissioner of administration shall contract with an independent third 
35.3 	party to evaluate the cost-effectiveness of each utility cost-savings measure implemented 
35.4 	to ensure that such measures were the least-cost measures available. For the purposes of 
35.5 	this section, "independent third party" means an entity not affiliated with the qualified 
35.6 	provider, that is not involved in creating or providing conservation project services to that 
35.7 	provider, and that has expertise (or access to expertise) in energy-savings practices.

35.8 	Sec. 13. Minnesota Statutes 2014, section 16C.16, subdivision 2, is amended to read:
35.9 		Subd. 2.Small business. The commissioner shall adopt rules defining the size 
35.10 	standards for "small business" found in Code of Federal Relations, title 49, section 
35.11 	26.65, for purposes of sections 16C.16 to 16C.21, 137.31, 137.35, 161.321, and 473.142. 
35.12 	The definition must include only businesses with their, provided that the business has 
35.13 	its principal place of business in Minnesota. The definition must establish different 
35.14 	size standards for various types of businesses. In establishing these standards, the 
35.15 	commissioner must consider the differences among industries caused by the size of the 
35.16 	market for goods or services and the relative size and market share of the competitors 
35.17 	operating in those markets.

35.18 	Sec. 14. Minnesota Statutes 2014, section 16C.16, subdivision 6a, is amended to read:
35.19 		Subd. 6a.Veteran-owned small businesses. (a) Except when mandated by the 
35.20 	federal government as a condition of receiving federal funds, the commissioner shall 
35.21 	award up to a six percent preference, but no less than the percentage awarded to any 
35.22 	other group under this section, in the amount bid on state procurement to certified small 
35.23 	businesses that are majority-owned and operated by veterans.
35.24 	(b) The purpose of this designation is to facilitate the transition of veterans from 
35.25 	military to civilian life, and to help compensate veterans for their sacrifices, including but 
35.26 	not limited to their sacrifice of health and time, to the state and nation during their military 
35.27 	service, as well as to enhance economic development within Minnesota.
35.28 	(c) Before the commissioner certifies that a small business is majority-owned and 
35.29 	operated by a veteran, the commissioner of veterans affairs must verify that the owner of 
35.30 	the small business is a veteran, as defined in section 197.447.

35.31 	Sec. 15. Minnesota Statutes 2014, section 16C.16, is amended by adding a subdivision 
35.32 	to read:
36.1 		Subd. 13.State-funded projects. (a) Notwithstanding section 16C.001, this 
36.2 	subdivision applies to contracts for state-funded capital improvement projects in excess of 
36.3 	$100,000 that are issued by organizations not subject to the small business requirements of 
36.4 	this section, including municipalities as defined in section 466.01, subdivision 1.
36.5 	(b) Organizations administering contracts described in paragraph (a) shall promote 
36.6 	the use of targeted group businesses designated under this section and take steps to remove 
36.7 	barriers to equitable participation of targeted group businesses.
36.8 	(c) Organizations shall cooperate with the commissioner's efforts to monitor and 
36.9 	measure compliance with this subdivision in the performance of state-funded contracts.

36.10 	Sec. 16. Minnesota Statutes 2014, section 16C.19, is amended to read:
36.11 	16C.19 ELIGIBILITY; RULES.
36.12 	(a) A small business wishing to participate in the programs under section 16C.16, 
36.13 	subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt 
36.14 	by rule standards and procedures for certifying that small targeted group businesses, 
36.15 	small businesses located in economically disadvantaged areas, and veteran-owned small 
36.16 	businesses are eligible to participate under the requirements of sections 16C.16 to 16C.21. 
36.17 	The commissioner shall adopt by rule standards and procedures for hearing appeals and 
36.18 	grievances and other rules necessary to carry out the duties set forth in sections 16C.16
36.19 	to 16C.21.
36.20 	(b) The commissioner may make rules which exclude or limit the participation of 
36.21 	nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers, 
36.22 	manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
36.23 	(c) The commissioner may make rules that set time limits and other eligibility limits 
36.24 	on business participation in programs under sections 16C.16 to 16C.21.
36.25 	(d) Notwithstanding paragraph (c) (a), for purposes of sections 16C.16 to 16C.21, a 
36.26 	veteran-owned small business, the principal place of business of which is in Minnesota, 
36.27 	is certified if:
36.28 	(1) it has been verified by the United States Department of Veterans Affairs as 
36.29 	being either a veteran-owned small business or a service-disabled veteran-owned small 
36.30 	business, in accordance with Public Law 109-461 and Code of Federal Regulations, title 
36.31 	38, part 74.; or
36.32 	(2) the veteran-owned small business supplies the commissioner with proof that the 
36.33 	small business is majority-owned and operated by:
36.34 	(i) a veteran as defined in section 197.447; or
37.1 	(ii) a veteran with a service-connected disability, as determined at any time by the 
37.2 	United States Department of Veterans Affairs.
37.3 	(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying 
37.4 	veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may 
37.5 	be read to include veteran-owned small businesses. In addition to the documentation 
37.6 	required in Minnesota Rules, part 1230.1700, the veteran owner must have been 
37.7 	discharged under honorable conditions from active service, as indicated by the veteran 
37.8 	owner's most current United States Department of Defense form DD-214.
37.9 	(f) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a 
37.10 	minority- or woman-owned small business, the principal place of business of which is 
37.11 	in Minnesota, is certified if it has been certified by the Minnesota unified certification 
37.12 	program under the provisions of Code of Federal Regulations, title 49, part 26.
37.13 	(g) The commissioner may adopt rules to implement the programs under section 
37.14 	16C.16, subdivisions 4 to 7, using the expedited rulemaking process in section 14.389.

37.15 	Sec. 17. [138.912] HEALTHY EATING, HERE AT HOME.
37.16 		Subdivision 1.Establishment. The healthy eating, here at home program is 
37.17 	established to provide incentives for low-income Minnesotans to use federal Supplemental 
37.18 	Nutrition Assistance Program (SNAP) benefits for healthy purchases at Minnesota-based 
37.19 	farmers' markets.
37.20 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
37.21 	(b) "Healthy eating, here at home" means a program administered by the Minnesota 
37.22 	Humanities Center to provide incentives for low-income Minnesotans to use SNAP 
37.23 	benefits for healthy purchases at Minnesota-based farmers' markets.
37.24 	(c) "Healthy purchases" means SNAP-eligible foods.
37.25 	(d) "Minnesota-based farmers' market" means a physical market as defined in section 
37.26 	28A.151, subdivision 1, paragraph (b), and also includes mobile markets.
37.27 	(e) "Voucher" means a physical or electronic credit.
37.28 	(f) "Eligible household" means an individual or family that is determined to be a 
37.29 	recipient of SNAP.
37.30 		Subd. 3.Grants. The Minnesota Humanities Center shall allocate grant funds to 
37.31 	nonprofit organizations that work with Minnesota-based farmers' markets to provide up 
37.32 	to $10 vouchers to SNAP participants who use electronic benefits transfer (EBT) cards 
37.33 	for healthy purchases. Funds may also be provided for vouchers distributed through 
37.34 	nonprofit organizations engaged in healthy cooking and food education outreach to 
37.35 	eligible households for use at farmers' markets. Funds appropriated under this section may 
38.1 	not be used for healthy cooking classes or food education outreach. When awarding 
38.2 	grants, the Minnesota Humanities Center must consider how the nonprofit organizations 
38.3 	will achieve geographic balance, including specific efforts to reach eligible households 
38.4 	across the state, and the organizations' capacity to manage the programming and outreach.
38.5 		Subd. 4.Household eligibility; participation. To be eligible for a healthy eating, 
38.6 	here at home voucher, an eligible household must meet the Minnesota SNAP eligibility 
38.7 	requirements under section 256D.051.
38.8 		Subd. 5.Permissible uses; information provided. An eligible household may use 
38.9 	the voucher toward healthy purchases at Minnesota-based farmers' markets. Every eligible 
38.10 	household that receives a voucher must be informed of the allowable uses of the voucher.
38.11 		Subd. 6.Program reporting. The nonprofit organizations that receive grant funds 
38.12 	must report annually to the Minnesota Humanities Center with information regarding the 
38.13 	operation of the program, including the number of vouchers issued and the number of 
38.14 	people served. To the extent practicable, the nonprofit organizations must report on the 
38.15 	usage of the vouchers and evaluate the program's effectiveness.
38.16 		Subd. 7.Grocery inclusion. The commissioner of human services must submit a 
38.17 	waiver request to the federal United States Department of Agriculture seeking approval 
38.18 	for the inclusion of Minnesota grocery stores in this program so that SNAP participants 
38.19 	may use the vouchers for healthy produce at grocery stores. Grocery store participation is 
38.20 	voluntary and a grocery store's associated administrative costs will not be reimbursed.

38.21 	Sec. 18. Minnesota Statutes 2014, section 148.57, is amended by adding a subdivision 
38.22 	to read:
38.23 		Subd. 5.Expedited and temporary licensing for former and current members 
38.24 	of the military. (a) Applicants seeking licensure according to this subdivision must be:
38.25 	(1) an active duty military member;
38.26 	(2) the spouse of an active duty military member; or
38.27 	(3) a veteran who has left service in the two years preceding the date of license 
38.28 	application, and has confirmation of an honorable or general discharge status.
38.29 	(b) A qualified applicant under this subdivision must provide evidence of:
38.30 	(1) a current valid license, certificate, or permit in another state without history of 
38.31 	disciplinary action by a regulatory authority in the other state; and
38.32 	(2) a current criminal background study without a criminal conviction that is 
38.33 	determined by the board to adversely affect the applicant's ability to become licensed.
38.34 	(c) A temporary license issued under this subdivision is effective for six months 
38.35 	from the initial temporary licensure date.
39.1 	(d) During the temporary license period, the individual shall complete the licensed 
39.2 	optometrist application for licensure.
39.3 	(e) In order to remain licensed after the expiration of the temporary license, an 
39.4 	individual must meet the requirements in section 148.57, subdivisions 1 and 2.

39.5 	Sec. 19. Minnesota Statutes 2014, section 148.624, subdivision 5, is amended to read:
39.6 		Subd. 5.Expedited and temporary licensing for former and current members 
39.7 	of the military permit. The board shall issue a temporary permit to members of the 
39.8 	military in accordance with section 197.4552. (a) Applicants seeking licensure according 
39.9 	to this subdivision must be:
39.10 	(1) an active duty military member;
39.11 	(2) the spouse of an active duty military member; or
39.12 	(3) a veteran who has left service in the two years preceding the date of license 
39.13 	application, and has confirmation of an honorable or general discharge status.
39.14 	(b) A qualified applicant under this subdivision must provide evidence of:
39.15 	(1) a current valid license in another state without history of disciplinary action by a 
39.16 	regulatory authority in the other state; and
39.17 	(2) a current criminal background study without a criminal conviction that is 
39.18 	determined by the board to adversely affect the applicant's ability to become licensed.
39.19 	(c) A temporary license issued under this subdivision is effective for six months 
39.20 	from the initial temporary licensure date.
39.21 	(d) During the temporary license period, the individual shall complete the licensed 
39.22 	dietitian or nutritionist application for licensure.
39.23 	(e) In order to remain licensed after the expiration of the temporary license, an 
39.24 	individual must meet the full licensure requirements.
39.25 	(f) The fee for the temporary permit license is $250.

39.26 	Sec. 20. Minnesota Statutes 2014, section 148B.33, is amended by adding a 
39.27 	subdivision to read:
39.28 		Subd. 3.Expedited and temporary licensing for former and current members 
39.29 	of the military. (a) Applicants seeking licensure according to this subdivision must be:
39.30 	(1) an active duty military member; 
39.31 	(2) the spouse of an active duty military member; or
39.32 	(3) a veteran who has left service in the two years preceding the date of license 
39.33 	application, and has confirmation of an honorable or general discharge status.
39.34 	(b) A qualified applicant under this subdivision must provide evidence of:
40.1 	(1) a current valid license, certificate, or permit in another state without history of 
40.2 	disciplinary action by a regulatory authority in the other state; and
40.3 	(2) a current criminal background study without a criminal conviction that is 
40.4 	determined by the board to adversely affect the applicant's ability to become licensed.
40.5 	(c) A temporary license issued under this subdivision is effective for six months 
40.6 	from the initial temporary licensure date.
40.7 	(d) During the temporary license period, the individual shall complete the licensed 
40.8 	marriage and family therapist application for licensure.
40.9 	(e) In order to remain licensed after the expiration of the temporary license, an 
40.10 	individual must meet the requirements in subdivisions 1 and 2.

40.11 	Sec. 21. Minnesota Statutes 2014, section 148B.53, is amended by adding a 
40.12 	subdivision to read:
40.13 		Subd. 1a.Expedited and temporary licensing for former and current members 
40.14 	of the military. (a) Applicants seeking licensure according to this subdivision must be:
40.15 	(1) an active duty military member; 
40.16 	(2) the spouse of an active duty military member; or
40.17 	(3) a veteran who has left service in the two years preceding the date of license 
40.18 	application, and has confirmation of an honorable or general discharge status.
40.19 	(b) A qualified applicant under this subdivision must provide evidence of:
40.20 	(1) a current valid license, certificate, or permit in another state without history of 
40.21 	disciplinary action by a regulatory authority in the other state; and
40.22 	(2) a current criminal background study without a criminal conviction that is 
40.23 	determined by the board to adversely affect the applicant's ability to become licensed.
40.24 	(c) A temporary license issued under this subdivision is effective for one year from 
40.25 	the initial licensure date.
40.26 	(d) During the temporary license period, the individual shall complete the licensed 
40.27 	professional counselor application for licensure.
40.28 	(e) In order to remain licensed after the expiration of the temporary license, an 
40.29 	individual must meet the requirements in subdivision 1, paragraphs (a) and (b).

40.30 	Sec. 22. Minnesota Statutes 2014, section 148B.5301, is amended by adding a 
40.31 	subdivision to read:
40.32 		Subd. 4a.Expedited and temporary licensing for former and current members 
40.33 	of the military. (a) Applicants seeking licensure according to this subdivision must be:
40.34 	(1) an active duty military member; 
41.1 	(2) the spouse of an active duty military member; or
41.2 	(3) a veteran who has left service in the two years preceding the date of license 
41.3 	application, and has confirmation of an honorable or general discharge status.
41.4 	(b) A qualified applicant under paragraph (a) must provide evidence of:
41.5 	(1) a current valid license, certificate, or permit in another state without history of 
41.6 	disciplinary action by a regulatory authority in the other state; and
41.7 	(2) a current criminal background study without a criminal conviction that is 
41.8 	determined by the board to adversely affect the applicant's ability to become licensed.
41.9 	(c) A temporary license issued under this subdivision is effective for one year from 
41.10 	the initial licensure date.
41.11 	(d) During the temporary license period, the individual shall complete the licensed 
41.12 	professional clinical counselor application for licensure.
41.13 	(e) In order to remain licensed after the expiration of the temporary license, an 
41.14 	individual must meet the requirements in subdivisions 1 and 2.

41.15 	Sec. 23. Minnesota Statutes 2014, section 148F.025, is amended by adding a 
41.16 	subdivision to read:
41.17 		Subd. 5.Expedited and temporary licensing for former and current members 
41.18 	of the military. (a) Applicants seeking licensure according to this subdivision must be:
41.19 	(1) an active duty military member; 
41.20 	(2) the spouse of an active duty military member; or
41.21 	(3) a veteran who has left service in the two years preceding the date of license 
41.22 	application, and has confirmation of an honorable or general discharge status.
41.23 	(b) Applicants are required to comply with subdivisions 1 and 4.
41.24 	(c) A qualified applicant under paragraph (a) must provide evidence of:
41.25 	(1) a current valid license, certificate, or permit in another state without history of 
41.26 	disciplinary action by a regulatory authority in the other state; and
41.27 	(2) a current criminal background study without a criminal conviction that is 
41.28 	determined by the board to adversely affect the applicant's ability to become licensed.
41.29 	(d) A temporary license issued under this subdivision is effective for two years from 
41.30 	the initial licensure date.
41.31 	(e) During the temporary license period, the individual shall complete the application 
41.32 	for licensure required in subdivision 1.
41.33 	(f) In order to remain licensed after the expiration of the temporary license, an 
41.34 	individual must meet the requirements in subdivisions 2 and 3.

42.1 	Sec. 24. Minnesota Statutes 2014, section 153.16, subdivision 1, is amended to read:
42.2 		Subdivision 1.License requirements. The board shall issue a license to practice 
42.3 	podiatric medicine to a person who meets the following requirements:
42.4 	(a) The applicant for a license shall file a written notarized application on forms 
42.5 	provided by the board, showing to the board's satisfaction that the applicant is of good 
42.6 	moral character and satisfies the requirements of this section.
42.7 	(b) The applicant shall present evidence satisfactory to the board of being a graduate 
42.8 	of a podiatric medical school approved by the board based upon its faculty, curriculum, 
42.9 	facilities, accreditation by a recognized national accrediting organization approved by the 
42.10 	board, and other relevant factors.
42.11 	(c) The applicant must have received a passing score on each part of the national board 
42.12 	examinations, parts one and two, prepared and graded by the National Board of Podiatric 
42.13 	Medical Examiners. The passing score for each part of the national board examinations, 
42.14 	parts one and two, is as defined by the National Board of Podiatric Medical Examiners.
42.15 	(d) Applicants graduating after 1986 from a podiatric medical school shall present 
42.16 	evidence of successful completion of a residency program approved by a national 
42.17 	accrediting podiatric medicine organization.
42.18 	(e) The applicant shall appear in person before the board or its designated 
42.19 	representative to show that the applicant satisfies the requirements of this section, 
42.20 	including knowledge of laws, rules, and ethics pertaining to the practice of podiatric 
42.21 	medicine. The board may establish as internal operating procedures the procedures or 
42.22 	requirements for the applicant's personal presentation. Upon completion of all other 
42.23 	application requirements, a doctor of podiatric medicine applying for a temporary military 
42.24 	license has six months in which to comply with this subdivision.
42.25 	(f) The applicant shall pay a fee established by the board by rule. The fee shall 
42.26 	not be refunded.
42.27 	(g) The applicant must not have engaged in conduct warranting disciplinary action 
42.28 	against a licensee. If the applicant does not satisfy the requirements of this paragraph, 
42.29 	the board may refuse to issue a license unless it determines that the public will be 
42.30 	protected through issuance of a license with conditions and limitations the board considers 
42.31 	appropriate.
42.32 	(h) Upon payment of a fee as the board may require, an applicant who fails to pass 
42.33 	an examination and is refused a license is entitled to reexamination within one year of 
42.34 	the board's refusal to issue the license. No more than two reexaminations are allowed 
42.35 	without a new application for a license.

43.1 	Sec. 25. Minnesota Statutes 2014, section 153.16, subdivision 4, is amended to read:
43.2 		Subd. 4.Temporary military permit license. The board shall establish a temporary 
43.3 	permit in accordance with section 197.4552. The fee for the temporary military permit is 
43.4 	$250. (a) The board shall issue an expedited license to practice podiatric medicine to an 
43.5 	applicant who meets the following requirements:
43.6 	(1) is an active duty military member;
43.7 	(2) is the spouse of an active duty military member; or
43.8 	(3) is a veteran who has left service in the two years preceding the date of license 
43.9 	application, and has confirmation of an honorable or general discharge status.
43.10 	(b) A qualified applicant under this subdivision must provide evidence of:
43.11 	(1) a current, valid license in another state without history of disciplinary action by a 
43.12 	regulatory authority in the other state; and
43.13 	(2) a current criminal background study without a criminal conviction that is 
43.14 	determined by the board to adversely affect the applicant's ability to become licensed.
43.15 	(c) The board shall issue a license for up to six months to a doctor of podiatric 
43.16 	medicine eligible for licensure under this subdivision. Doctors of podiatric medicine 
43.17 	licensed in another state who have complied with all other requirements may receive a 
43.18 	temporary license valid for up to six months. No extension is available.
43.19 	(d) A temporary license issued under this subdivision permits a qualified individual 
43.20 	to perform podiatric medicine for a limited length of time as determined by the licensing 
43.21 	board. During the temporary license period, the individual shall complete the full 
43.22 	application procedure and be approved as required by applicable law.
43.23 	(e) The fee for the temporary military license is $250.

43.24 	Sec. 26. Minnesota Statutes 2014, section 154.003, is amended to read:
43.25 	154.003 FEES.
43.26 	(a) The fees collected, as required in this chapter, chapter 214, and the rules of the 
43.27 	board, shall be paid to the board. The board shall deposit the fees in the general fund 
43.28 	in the state treasury.
43.29 	(b) The board shall charge the following fees:
43.30 	(1) examination and certificate, registered barber, $85;
43.31 	(2) retake of written examination, registered barber, $10;
43.32 	(3) examination and certificate, apprentice, $80;
43.33 	(4) retake of written examination, apprentice, $10;
43.34 	(5) examination, instructor, $180;
43.35 	(6) certificate, instructor, $65;
44.1 	(7) temporary teacher or apprentice permit, $80;
44.2 	(8) temporary registered barber, military, $85;
44.3 	(9) temporary barber instructor, military, $180;
44.4 	(10) temporary apprentice barber, military, $80;
44.5 	(11) renewal of registration, registered barber, $80;
44.6 	(9) (12) renewal of registration, apprentice, $70;
44.7 	(10) (13) renewal of registration, instructor, $80;
44.8 	(11) (14) renewal of temporary teacher permit, $65;
44.9 	(12) (15) student permit, $45;
44.10 	(13) (16) renewal of student permit, $25;
44.11 	(14) (17) initial shop registration, $85;
44.12 	(15) (18) initial school registration, $1,030;
44.13 	(16) (19) renewal shop registration, $85;
44.14 	(17) (20) renewal school registration, $280;
44.15 	(18) (21) restoration of registered barber registration, $95;
44.16 	(19) (22) restoration of apprentice registration, $90;
44.17 	(20) (23) restoration of shop registration, $105;
44.18 	(21) (24) change of ownership or location, $55;
44.19 	(22) (25) duplicate registration, $40;
44.20 	(23) (26) home study course, $75;
44.21 	(24) (27) letter of registration verification, $25; and
44.22 	(25) (28) reinspection, $100.

44.23 	Sec. 27. Minnesota Statutes 2014, section 154.11, subdivision 3, is amended to read:
44.24 		Subd. 3.Temporary military license permits. (a) In accordance with section 
44.25 	197.4552, the board shall establish issue a temporary license:
44.26 	(1) permit for apprentice barbers and master;
44.27 	(2) certificate for registered barbers; and a temporary permit for apprentices in 
44.28 	accordance with section 197.4552. The fee for a temporary license under this subdivision 
44.29 	for a master barber is $85. The fee for a temporary license under this subdivision for a 
44.30 	barber is $180. The fee for a temporary permit under this subdivision for an apprentice is 
44.31 	$80.
44.32 	(3) certificate for registered barber instructors.
44.33 	(b) Fees for temporary military permits and certificates of registration under this 
44.34 	subdivision are listed under section 154.003.
45.1 	(c) Permits or certificates of registration issued under this subdivision are valid 
45.2 	for one year from the date of issuance, after which the individual must complete a full 
45.3 	application as required by section 197.4552.

45.4 	Sec. 28. Minnesota Statutes 2014, section 155A.21, is amended to read:
45.5 	155A.21 POLICY.
45.6 	The legislature finds that the health and safety of the people of the state are served 
45.7 	by the licensing of the practice of cosmetology because of  infection control and the use 
45.8 	of chemicals, implements, apparatus, and other appliances requiring special skills and 
45.9 	education.
45.10 	To this end, the public will best be served by vesting these responsibilities in the 
45.11 	Board of Cosmetologist Examiners.

45.12 	Sec. 29. Minnesota Statutes 2014, section 155A.23, subdivision 8, is amended to read:
45.13 		Subd. 8.Manager. A "manager" is any person who conducts, operates, or manages 
45.14 	a cosmetology school or salon and who also instructs in or is a cosmetologist, esthetician, 
45.15 	advanced practice esthetician, or nail technician practitioner, and who has a manager 
45.16 	license and  provides any services under that license, as defined in subdivision 3. A school 
45.17 	manager must maintain an active salon manager's license.

45.18 	Sec. 30. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
45.19 	subdivision to read:
45.20 		Subd. 8a.Mobile salon.  A "mobile salon" is a salon that is operated in a mobile 
45.21 	vehicle or mobile structure for exclusive use to offer personal services, as defined in 
45.22 	subdivision 3.

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

45.24 	Sec. 31. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
45.25 	subdivision to read:
45.26 		Subd. 14.Advanced practice esthetician. An "advanced practice esthetician" is a 
45.27 	person who for compensation performs personal services for the cosmetic care of the skin, 
45.28 	including the use of mechanical or electrical skin care apparatuses or appliances that are 
45.29 	used on the epidermal layer of the skin.

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

46.1 	Sec. 32. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
46.2 	subdivision to read:
46.3 		Subd. 15.Designated licensed salon manager. A "designated licensed salon 
46.4 	manager" is a manager designated by a salon owner and registered with the board, who is 
46.5 	responsible with the salon owner for salon and practitioner compliance.

46.6 	Sec. 33. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
46.7 	subdivision to read:
46.8 		Subd. 16.School manager. A "school manager" is a cosmetologist who is a salon 
46.9 	manager and who has a school manager license. A school manager must maintain an 
46.10 	active salon manager's license.

46.11 	Sec. 34. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
46.12 	subdivision to read:
46.13 		Subd. 17.Designated school manager. A "designated school manager" is a school 
46.14 	manager who is designated by the school owner and registered with the board, who is 
46.15 	responsible with the school owner for school and instructor compliance.

46.16 	Sec. 35. Minnesota Statutes 2014, section 155A.23, is amended by adding a 
46.17 	subdivision to read:
46.18 		Subd. 18.Practitioner. A "practitioner" is any person licensed in the practice of 
46.19 	cosmetology, esthiology, or nail technology services.

46.20 	Sec. 36. Minnesota Statutes 2014, section 155A.24, subdivision 2, is amended to read:
46.21 		Subd. 2.Hiring and assignment of employees. The board has the authority to hire 
46.22 	qualified personnel in the classified service to assist in administering the law, including 
46.23 	those for the testing and licensing of applicants and the continuing inspections required. 
46.24 	All staff must receive periodic training to improve and maintain customer service skills, 
46.25 	conducting inspections, and complaint investigations.

46.26 	Sec. 37. Minnesota Statutes 2014, section 155A.25, subdivision 1a, is amended to read:
46.27 		Subd. 1a.Schedule. (a) The fee schedule for licensees fees and penalties is as 
46.28 	follows: provided in this subdivision.
46.29 	(a) (b) Three-year license fees are as follows:
46.30 	(1) cosmetologist, nail technician, or esthetician $195 initial practitioner, manager, 
46.31 	or instructor license, divided as follows:
47.1 	(i) $90$155 for each initial license and a $40 nonrefundable initial license 
47.2 	application fee, for a total of $130; and
47.3 	(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for a total 
47.4 	of $75 $40 for each initial license application fee;
47.5 	(2) instructor or manager $115 renewal of practitioner license, divided as follows:
47.6 	(i) $120 $100 for each initial renewal license and a $40 nonrefundable initial license 
47.7 	application fee, for a total of $160; and
47.8 	(ii) $90 $15 for each renewal and a $15 nonrefundable renewal application fee, 
47.9 	for a total of $105;
47.10 	(3) $145 renewal of manager or instructor license, divided as follows:
47.11 	(i) $130 for each renewal license; and
47.12 	(ii) $15 for each renewal application fee;
47.13 	(4) $350 initial salon license, divided as follows:
47.14 	(i) $130 $250 for each initial license and a $100 nonrefundable initial license 
47.15 	application fee, for a total of $230; and
47.16 	(ii) $100 for each renewal and a $50 nonrefundable renewal initial license 
47.17 	application fee, for a total of $150; and
47.18 	(4) school (5) $225 renewal of salon license, divided as follows:
47.19 	(i) $1,500 $175 for each initial license and a $1,000 nonrefundable initial license 
47.20 	application fee, for a total of $2,500 renewal; and
47.21 	(ii) $1,500 $50 for each renewal and a $500 nonrefundable renewal application 
47.22 	fee, for a total of $2,000;
47.23 	(6) $4,000 initial school license, divided as follows:
47.24 	(i) $3,000 for each initial license; and
47.25 	(ii) $1,000 for each initial license application fee; and
47.26 	(7) $2,500 renewal of school license, divided as follows:
47.27 	(i) $2,000 for each renewal; and
47.28 	(ii) $500 for each renewal application fee.
47.29 	(b) (c) Penalties may be assessed in amounts up to the following:
47.30 	(1) reinspection fee, variable $150;
47.31 	(2) manager and owner with lapsed practitioner found on inspection, $150 each;
47.32 	(3) lapsed practitioner or instructor found on inspection, $200;
47.33 	(4) lapsed salon found on inspection, $500;
47.34 	(5) lapsed school found on inspection, $1,000;
47.35 	(6) failure to display current license, $100;
48.1 	(7) failure to dispose of single-use equipment, implements, or materials as provided 
48.2 	under section 155A.355, subdivision 1, $500;
48.3 	(8) use of prohibited razor-type callus shavers, rasps, or graters under section 
48.4 	155A.355, subdivision 2, $500;
48.5 	(9) performing nail or cosmetology services in esthetician salon, or performing 
48.6 	esthetician or cosmetology services in a nail salon, $500;
48.7 	(10) owner and manager allowing an operator to work as an independent contractor, 
48.8 	$200;
48.9 	(11) operator working as an independent contractor, $100;
48.10 	(12) refusal or failure to cooperate with an inspection, $500;
48.11 	(13) expired cosmetologist, nail technician, esthetician, manager, school manager, 
48.12 	and instructor license practitioner late renewal fee, $45; and
48.13 	(14) expired salon or school license late renewal fee, $50.
48.14 	(c) (d) Administrative fees are as follows:
48.15 	(1) certificate of identification, $20 homebound service permit, $50 three-year fee;
48.16 	(2) name change, $20;
48.17 	(3) letter of license verification certification of licensure, $30 each;
48.18 	(4) duplicate license, $20;
48.19 	(5) processing fee, $10;
48.20 	(6) special event permit, $75 per year; and
48.21 	(7) (6) registration of hair braiders, $20 per year;
48.22 	(7) $100 for each temporary military license for a cosmetologist, nail technician, 
48.23 	esthetician, or advanced practice esthetician one-year fee;
48.24 	(8) expedited initial individual license, $150;
48.25 	(9) expedited initial salon license, $300;
48.26 	(10) instructor continuing education provider approval, $150 each year; and
48.27 	(11) practitioner continuing education provider approval, $150 each year.

48.28 	Sec. 38. Minnesota Statutes 2014, section 155A.25, subdivision 5, is amended to read:
48.29 		Subd. 5.Board must approve or deny application; timeline. Within 15 working 
48.30 	days of receiving a complete application and the required fees for an initial or renewal 
48.31 	to apply for or renew an  individual or salon license that is not an expedited license or a 
48.32 	military license, the board must (1) either grant or deny the application issue the license, 
48.33 	(2) issue deny the license or and notify the applicant of the denial, or (3) issue a temporary 
48.34 	license to an applicant for whom no record exists regarding: (i) a complaint filed with the 
48.35 	board against the applicant; or (ii) a negative action by the board against the applicant if 
49.1 	the conditions in subdivision 6 are met, notify the applicant that the board must conduct 
49.2 	additional review.

49.3 	Sec. 39. Minnesota Statutes 2014, section 155A.25, is amended by adding a 
49.4 	subdivision to read:
49.5 		Subd. 6.Additional review for certain licenses. If an application contains 
49.6 	discrepancies, the applicant is the subject of a complaint investigation, or the applicant 
49.7 	has pending disciplinary actions before the board, the board will comply with the time 
49.8 	limits prescribed in section 15.992 to process the application.

49.9 	Sec. 40. Minnesota Statutes 2014, section 155A.25, is amended by adding a 
49.10 	subdivision to read:
49.11 		Subd. 7.Temporary military license or expedited license. Within five business 
49.12 	days of receiving a completed application and the required fees for an individual or salon 
49.13 	license that meets requirements for an expedited license or a temporary military license, 
49.14 	the board must (1) issue the license, (2) deny the license and notify the applicant of the 
49.15 	denial, or (3) notify the applicant that the board must conduct additional review if the 
49.16 	application meets the conditions in subdivision 8.

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

49.19 	Sec. 41. Minnesota Statutes 2014, section 155A.25, is amended by adding a 
49.20 	subdivision to read:
49.21 		Subd. 8.Additional review for certain temporary military license or expedited 
49.22 	license. If an application under subdivision 7 contains discrepancies, the applicant is the 
49.23 	subject of a complaint investigation, or the applicant has pending disciplinary actions 
49.24 	before the board, the board will process the application according to the time limits in 
49.25 	section 15.992.

49.26 	Sec. 42. Minnesota Statutes 2014, section 155A.27, subdivision 1, is amended to read:
49.27 		Subdivision 1.Licensing. Individual licensing shall be required for persons seeking 
49.28 	A person must hold an individual license  to practice in the state as a cosmetologist, 
49.29 	esthetician, nail technician,  advanced practice esthetician, manager, or instructor.

49.30 	Sec. 43. Minnesota Statutes 2014, section 155A.27, subdivision 2, is amended to read:
50.1 		Subd. 2.Qualifications. Qualifications for licensing in each classification shall 
50.2 	be determined by the board and established by rule, and shall include educational 
50.3 	and experiential prerequisites. The rules shall require a demonstrated knowledge of 
50.4 	procedures necessary to protect the health  and safety of the practitioner and the consumer 
50.5 	of cosmetology services, including but not limited to chemical applications infection 
50.6 	control, use of implements, apparatuses and other appliances, and the use of chemicals.

50.7 	Sec. 44. Minnesota Statutes 2014, section 155A.27, subdivision 5a, is amended to read:
50.8 		Subd. 5a.Temporary military license. The board shall establish temporary 
50.9 	licenses for a cosmetologist, nail technician, and esthetician in accordance with section 
50.10 	197.4552. The fee for a temporary license under this subdivision for a cosmetologist, nail 
50.11 	technician, or esthetician is $100.

50.12 	Sec. 45. Minnesota Statutes 2014, section 155A.271, is amended to read:
50.13 	155A.271 CONTINUING EDUCATION REQUIREMENTS.
50.14 		Subdivision 1.Continuing education requirements. (a) Effective August 1, 2014, 
50.15 	to qualify for license renewal under this chapter as an individual cosmetologist, nail 
50.16 	technician, esthetician, advanced practice esthetician, or salon manager, the applicant 
50.17 	must attest to the completion of four hours of continuing education credits from an 
50.18 	accredited school or a professional association of cosmetology during the three years 
50.19 	prior to the applicant's renewal date. One credit hour of the requirement must include 
50.20 	instruction pertaining to state laws and rules governing the practice of cosmetology. Three 
50.21 	credit hours must include instruction pertaining to health, safety, and sanitation matters 
50.22 	consistent with the United States Department of Labor's Occupational Safety and Health 
50.23 	Administration standards applicable to the practice of cosmetology, or other applicable 
50.24 	federal health, sanitation, and safety standards, and must be regularly updated so as to 
50.25 	incorporate newly developed standards and accepted professional best practices. Credit 
50.26 	hours earned are valid for three years and may be applied simultaneously to all individual 
50.27 	licenses held by a licensee under this chapter. This subdivision does not apply to 
50.28 	instructors or inactive licenses.
50.29 	(b) Effective August 1, 2017, in addition to the hours of continuing education credits 
50.30 	required under paragraph (a), to qualify for license renewal under this chapter as an 
50.31 	individual cosmetologist, nail technician, esthetician, advanced practice esthetician, or 
50.32 	salon manager, the applicant must also attest to the completion of one four-hour continuing 
50.33 	education course from a continuing education provider based on any or all of the following:
50.34 	(1) product chemistry and chemistry interaction;
51.1 	(2) proper use of machines and instruments;
51.2 	(3) business management and human relations; or
51.3 	(4) techniques relevant to the type of license held.
51.4 	Credits must be completed during the three years prior to the applicant's renewal date and 
51.5 	may be applied simultaneously to other individual licenses held as applicable, except 
51.6 	that credits completed under this paragraph must not duplicate credits completed under 
51.7 	paragraph (a).
51.8 	(c) Paragraphs (a) and (b) do not apply to an instructor license, a school manager 
51.9 	license, or an inactive license.
51.10 		Subd. 1a.Product sales or marketing prohibited. The marketing or sale of 
51.11 	any product is prohibited during a continuing education class receiving credit under 
51.12 	subdivision 1.
51.13 		Subd. 2.Schools and professional associations Continuing education providers.
 51.14 	(a) Only a board-licensed school of cosmetology, a postsecondary institution as defined in 
51.15 	section 136A.103, paragraph (a), or a board-recognized professional association organized 
51.16 	under chapter 317A may offer continuing education curriculum for credit under this 
51.17 	section.subdivision 1, paragraph (a). Continuing education curriculum under subdivision 
51.18 	1, paragraph (b), may be offered by a:
51.19 	(1) board-licensed school of cosmetology;
51.20 	(2) board-recognized professional association organized under chapter 317A; or
51.21 	(3) board-licensed salon.
51.22 	The school and professional association may offer online and independent study 
51.23 	options to achieve maximum involvement of licensees and is. Continuing education 
51.24 	providers are encouraged to offer classes available in foreign language formats.
51.25 	(b) Board recognition authorization of a professional association continuing 
51.26 	education provider under paragraph (a) is valid for three years one calendar year and is 
51.27 	contingent upon submission and preapproval of the general curriculum lesson plan or 
51.28 	plans with learning objectives for the class to be offered and the payment of the application 
51.29 	fee in section 155A.25, subdivision 1a, paragraph (d), clause (11). The board may revoke 
51.30 	recognition authorization of a continuing education provider at any time for just cause and 
51.31 	the board may demand return of documents required under subdivision 3. The professional 
51.32 	association offering continuing education must be organized under chapter 317A.
51.33 		Subd. 3.Proof of credits. The school or professional associationcontinuing 
51.34 	education provider shall provide to licensees who attend a class a receipt to prove 
51.35 	completion of the class. Licensees shall retain proof of their continuing education credits 
51.36 	for one year beyond the credit's expiration. The school or professional association 
52.1 	continuing education provider shall retain documentation of all licensees successfully 
52.2 	completing a class and the licensee's credit hours for five years.
52.3 		Subd. 4.Audit. The board shall conduct random audits of active licensees 
52.4 	periodically to ensure compliance with continuing education requirements. To initiate 
52.5 	an audit, the board shall notify an active licensee of the audit and request proof of 
52.6 	credits earned during a specified period. The licensee must provide the requested proof 
52.7 	to the board within 30 days of an audit notice. The board may request that a school or 
52.8 	professional association verify a licensee's credits. The school or professional association 
52.9 	continuing education provider must furnish verification, or a written statement that the 
52.10 	credits are not verified, within 15 days of the board's request for verification. If the board 
52.11 	determines that a licensee has failed to provide proof of necessary credits earned during 
52.12 	the specified time, the board may revoke the individual's license and may deem the 
52.13 	individual a lapsed practitioner subject to penalty under section 155A.25 or 155A.36.

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

52.16 	Sec. 46. Minnesota Statutes 2014, section 155A.29, subdivision 1, is amended to read:
52.17 		Subdivision 1.Licensing. Any A person who offers must not offer cosmetology 
52.18 	services for compensation in this state shall be (1) licensed as a salon if not employed by 
52.19 	another licensed salon or (2) employed as an esthetician or cosmetologist in connection 
52.20 	with medical care in relation to esthiology in the office of a licensed physician unless the 
52.21 	services are provided by a licensee in a licensed salon or as otherwise provided in this 
52.22 	section. Each salon must be licensed as a cosmetology salon, a nail salon, esthetician 
52.23 	salon, or advanced practice esthetician salon. A salon may hold more than one type of 
52.24 	salon license.

52.25 	Sec. 47. Minnesota Statutes 2014, section 155A.29, subdivision 2, is amended to read:
52.26 		Subd. 2.Requirements. (a) The conditions and process by which a salon is licensed 
52.27 	shall be established by the board by rule. In addition to those requirements, no license 
52.28 	shall be issued unless the board first determines that the conditions in clauses (1) to (5) 
52.29 	have been satisfied:
52.30 	(1) compliance with all local and state laws, particularly relating to matters of 
52.31 	sanitation, health, and safety;
52.32 	(2) the employment of a manager, as defined in section 155A.23, subdivision 8;
52.33 	(3) if applicable, evidence of compliance with workers' compensation section 
52.34 	176.182; and
53.1 	(4) evidence of continued professional liability insurance coverage of at least 
53.2 	$25,000 for each claim and $50,000 total coverage for each policy year for each operator.
53.3 	(b) A licensed esthetician or nail technician who complies with the health, safety, 
53.4 	sanitation, inspection, and insurance rules promulgated by the board to operate a salon 
53.5 	solely for the performance of those personal services defined in section 155A.23, 
53.6 	subdivision 5, in the case of an esthetician, or subdivision 7, in the case of a nail technician.

53.7 	Sec. 48. Minnesota Statutes 2014, section 155A.29, is amended by adding a 
53.8 	subdivision to read:
53.9 		Subd. 2a.Requirements for mobile salon. In addition to complying with the 
53.10 	requirements for a salon in subdivision 2, the holder of a salon license for a mobile salon 
53.11 	must:
53.12 	(1) maintain a permanent business address; and
53.13 	(2) notify the board of the locations and schedule of operation of a mobile salon.

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

53.15 	Sec. 49. Minnesota Statutes 2014, section 155A.30, subdivision 5, is amended to read:
53.16 		Subd. 5.Conditions precedent to issuance. A license must not be issued unless the 
53.17 	board first determines that the applicant has met the requirements in clauses (1) to (8).:
53.18 	(1) the applicant must have a sound financial condition with sufficient resources 
53.19 	available to meet the school's financial obligations; to refund all tuition and other charges, 
53.20 	within a reasonable period of time, in the event of dissolution of the school or in the event 
53.21 	of any justifiable claims for refund against the school; to provide adequate service to its 
53.22 	students and prospective students; and to maintain proper use and support of the school.;
53.23 	(2) the applicant must have satisfactory training facilities with sufficient tools and 
53.24 	equipment and the necessary number of work stations to adequately train the students 
53.25 	currently enrolled, and those proposed to be enrolled.;
53.26 	(3) the applicant must employ a sufficient number of qualified instructors trained by 
53.27 	experience and education to give the training contemplated.;
53.28 	(4) the premises and conditions under which the students work and study must be 
53.29 	sanitary, healthful, and safe according to modern standards.;
53.30 	(5) each occupational course or program of instruction or study must be of such 
53.31 	quality and content as to provide education and training which that will adequately prepare 
53.32 	enrolled students for testing, licensing, and entry level positions as a cosmetologist, 
53.33 	esthetician, or nail technician.;
54.1 	(6) the school must have coverage by professional liability insurance of at least 
54.2 	$25,000 per incident and an accumulation of $150,000 for each premium year.;
54.3 	(7) the applicant shall provide evidence of the school's compliance with section 
54.4 	176.182.;
54.5 	(8) the applicant, except the state and its political subdivisions as described in 
54.6 	section 471.617, subdivision 1, shall file with the board a continuous corporate surety 
54.7 	bond in the amount of $10,000, conditioned upon the faithful performance of all contracts 
54.8 	and agreements with students made by the applicant. The bond shall run to the state of 
54.9 	Minnesota and to any person who may have a cause of action against the applicant arising 
54.10 	at any time after the bond is filed and before it is canceled for breach of any contract or 
54.11 	agreement made by the applicant with any student. The aggregate liability of the surety for 
54.12 	all breaches of the conditions of the bond shall not exceed $10,000. The surety of the bond 
54.13 	may cancel it upon giving 60 days' notice in writing to the board and shall be relieved of 
54.14 	liability for any breach of condition occurring after the effective date of cancellation; and
54.15 	(9) the applicant must, at all times during the term of the license, employ a 
54.16 	designated licensed school manager who maintains a cosmetology salon manager license.

54.17 	Sec. 50. Minnesota Statutes 2014, section 155A.30, subdivision 10, is amended to read:
54.18 		Subd. 10.Discrimination prohibited. No Each school, duly approved under 
54.19 	sections 155A.21 to 155A.36, shall refuse to teach any student, otherwise qualified, on 
54.20 	account of race, sex, creed, color, citizenship, national origin, or sexual preference must 
54.21 	comply with the Minnesota Human Rights Act under chapter 363A.

54.22 	Sec. 51. Minnesota Statutes 2014, section 161.1419, subdivision 8, is amended to read:
54.23 		Subd. 8.Expiration. The commission expires on June 30, 2016 2020.

54.24 	Sec. 52. Minnesota Statutes 2014, section 211B.37, is amended to read:
54.25 	211B.37 COSTS ASSESSED.
54.26 	Except as otherwise provided in section 211B.36, subdivision 3, the chief 
54.27 	administrative law judge shall assess the cost of considering complaints filed under section 
54.28 	211B.32 as provided in this section. Costs of complaints relating to a statewide ballot 
54.29 	question or an election for a statewide or legislative office must be assessed against the 
54.30 	appropriation from the general fund to the general account of the state elections campaign 
54.31 	account in section 10A.31, subdivision 4 paid from appropriations to the Office of 
54.32 	Administrative Hearings for this purpose. Costs of complaints relating to any other ballot 
54.33 	question or elective office must be paid from appropriations to the office for this purpose.

55.1 	Sec. 53. Minnesota Statutes 2014, section 272.484, is amended to read:
55.2 	272.484 FEES.
55.3 	The fee for filing and indexing each notice of lien or certificate or notice affecting 
55.4 	the lien is:
55.5 	(1) for a lien, certificate of discharge or subordination, and for all other notices, 
55.6 	including a certificate of release or nonattachment filed with the secretary of state, the fee 
55.7 	provided by section 336.9-525, except that the filing fee charged to the district directors 
55.8 	of internal revenue for filing a federal tax lien is $15 for up to two debtor names and 
55.9 	$15 for each additional name; and
55.10 	(2) for a lien, certificate of discharge or subordination, and for all other notices, 
55.11 	including a certificate of release or nonattachment filed with the county recorder, the fee 
55.12 	for filing a real estate mortgage in the county where filed.
55.13 	The officer shall bill the district directors of internal revenue or other appropriate 
55.14 	federal officials on a monthly basis for fees for documents filed by them.

55.15 	Sec. 54. Minnesota Statutes 2014, section 303.19, is amended to read:
55.16 	303.19 REINSTATEMENT.
55.17 		Subdivision 1.Application Required filing. Any foreign corporation whose 
55.18 	certificate of authority to do business in this state shall have been revoked or canceled may 
55.19 	file reinstate that authority by filing an annual renewal and the fee required by subdivision 
55.20 	2 with the secretary of state an application for reinstatement. Such application shall be 
55.21 	on forms prescribed by the secretary of state, shall contain all the matters required to be 
55.22 	set forth in an original application for a certificate of authority, and such other pertinent 
55.23 	information as may be required by the secretary of state. If any of the information in the 
55.24 	original application for authority has changed, the foreign corporation must also file an 
55.25 	amended certificate setting forth the currently accurate information, with the fee required 
55.26 	by section 303.21, subdivision 3.
55.27 		Subd. 2.Fee. If the certificate of authority was revoked by the secretary of state 
55.28 	pursuant to section 303.17, the corporation shall pay to the commissioner of management 
55.29 	and budget $250 before it may be reinstated.
55.30 	If the certificate of authority was canceled or by a judgment pursuant to section 
55.31 	303.18, the corporation shall pay to the commissioner of management and budget $500 
55.32 	before it may be reinstated.
55.33 		Subd. 3.Certificate of reinstatement. Upon the filing of the application and upon 
55.34 	payment of all penalties, fees and charges required by law, not including an initial license 
55.35 	fee or additional license fees to the extent that they have previously been paid by the 
56.1 	corporation the fees imposed by this section, the secretary of state shall reinstate the 
56.2 	license of the corporation.

56.3 	Sec. 55. Minnesota Statutes 2014, section 304A.301, subdivision 1, is amended to read:
56.4 		Subdivision 1.Report required. No later than 90 days after the conclusion of 
56.5 	each calendar year Before each April 1, a public benefit corporation must deliver to the 
56.6 	secretary of state for filing an annual benefit report covering the 12-month period ending 
56.7 	on December 31 of that the previous year and pay a fee of $35 to the secretary of state. 
56.8 	The annual benefit report must state the name of the public benefit corporation, be signed 
56.9 	by the public benefit corporation's chief executive officer not more than 30 days before the 
56.10 	report is delivered to the secretary of state for filing, and must be current when signed.

56.11 	Sec. 56. Minnesota Statutes 2014, section 304A.301, subdivision 5, is amended to read:
56.12 		Subd. 5.Failure to file an annual benefit report. If a public benefit corporation 
56.13 	fails to file an, before April 1 of any calendar year, the annual benefit report in accordance 
56.14 	with this section within 90 days of the date on which an annual benefit report is due 
56.15 	required by this section, the secretary of state shall revoke the corporation's status as a 
56.16 	public benefit corporation under this chapter and must notify the public benefit corporation 
56.17 	of the revocation using the information provided by the corporation pursuant to section 
56.18 	5.002 or 5.34 or provided in the articles.

56.19 	Sec. 57. Minnesota Statutes 2014, section 304A.301, subdivision 6, is amended to read:
56.20 		Subd. 6.Effects of revocation; reinstatement. (a) A public benefit corporation 
56.21 	that has lost its public benefit corporation status for failure to timely file an annual benefit 
56.22 	report or by terminating that status pursuant to section 304A.103 is not entitled to the 
56.23 	benefits afforded to a public benefit corporation under this chapter as of the date of 
56.24 	revocation or termination and must amend the articles of incorporation to reflect a name 
56.25 	compliant with section 302A.115, but which does not include the corporate designation 
56.26 	provided for in section 304A.101, subdivision 2.
56.27 	(b) Within 30 days of issuance of revocation of public benefit corporation status by 
56.28 	the secretary of state, filing a renewal complying with this section and a $500 fee with 
56.29 	the secretary of state will reinstate the corporation as a public benefit corporation under 
56.30 	this chapter as of the date of revocation.

56.31 	Sec. 58. Minnesota Statutes 2014, section 304A.301, is amended by adding a 
56.32 	subdivision to read:
57.1 		Subd. 8.Failure to change corporate name. The duration of a corporation that has 
57.2 	had public benefit status terminated or revoked and which fails to change the corporate 
57.3 	name as provided in subdivision 6 expires automatically 30 days after termination or 
57.4 	revocation of the public benefit corporation status.

57.5 	Sec. 59. Minnesota Statutes 2014, section 326A.01, subdivision 2, is amended to read:
57.6 		Subd. 2.Attest. "Attest" means to provide providing any of the following financial 
57.7 	statement services:
57.8 	(1) an audit or other engagement performed in accordance with the Statements on 
57.9 	Auditing Standards (SAS);
57.10 	(2) a review of a financial statement performed in accordance with the Statements on 
57.11 	Standards for Accounting and Review Services (SSARS);
57.12 	(3) an examination of prospective financial information performed in accordance 
57.13 	with the Statements on Standards for Attestation Engagements (SSAE); and
57.14 	(4) any an engagement performed in accordance with auditing and related the  
57.15 	standards of the Public Company Accounting Oversight Board (PCAOB); and
57.16 	(5) an examination, review, or agreed-upon procedures engagement performed in 
57.17 	accordance with SSAE, other than an examination described in clause (3).

57.18 	Sec. 60. Minnesota Statutes 2014, section 326A.01, subdivision 12, is amended to read:
57.19 		Subd. 12.Peer review. "Peer review" means an independent study, appraisal, or 
57.20 	review of one or more aspects of the professional work of a licensee  or CPA firm that 
57.21 	issues attest or compilation reports, or the professional work of a person registered under 
57.22 	section 326A.06, paragraph (b), by persons who are not affiliated with the licensee  or 
57.23 	CPA firm being reviewed.

57.24 	Sec. 61. Minnesota Statutes 2014, section 326A.01, subdivision 13a, is amended to read:
57.25 		Subd. 13a.Principal place of business. "Principal place of business" means the 
57.26 	office location designated by the licensee for purposes of substantial equivalency and 
57.27 	reciprocity in this state and in other states.

57.28 	Sec. 62. Minnesota Statutes 2014, section 326A.01, subdivision 15, is amended to read:
57.29 		Subd. 15.Report. "Report," when used with reference to financial statements an 
57.30 	attest or compilation service, means an opinion, report, or other form of language that 
57.31 	states or implies assurance as to the reliability of any the attested information or compiled 
57.32 	financial statements and that also includes or is accompanied by a statement or implication 
58.1 	that the person or firm issuing it has special knowledge or competence in accounting or 
58.2 	auditing. Such a statement or implication of special knowledge or competence may arise 
58.3 	from use by the issuer of the report of names or titles indicating that the person or firm is an 
58.4 	accountant or auditor, or from the language of the report itself. The term "report" includes 
58.5 	any form of language that disclaims an opinion when the form of language is conventionally 
58.6 	understood to imply any positive assurance as to the reliability of the  attested information 
58.7 	or compiled financial statements referred to or special competence on the part of the person 
58.8 	or firm issuing the language. It includes any other form of language that is conventionally 
58.9 	understood to imply such assurance or such special knowledge or competence.

58.10 	Sec. 63. Minnesota Statutes 2014, section 326A.01, subdivision 16, is amended to read:
58.11 		Subd. 16.State. "State" means any state of the United States, the District of 
58.12 	Columbia, Puerto Rico, the U.S. Virgin Islands, the Commonwealth of the Northern 
58.13 	Mariana Islands, and Guam; except that "this state" means the state of Minnesota.

58.14 	Sec. 64. Minnesota Statutes 2014, section 326A.02, subdivision 3, is amended to read:
58.15 		Subd. 3.Officers; proceedings. The board shall elect one of its number members  
58.16 	as chair, another as vice-chair, and another as secretary and treasurer. The officers shall 
58.17 	hold their respective offices for a term of one year and until their successors are elected. 
58.18 	The affirmative vote of a majority of the qualified members of the board, or a majority of 
58.19 	a quorum of the board at any meeting duly called, is considered the action of the board. 
58.20 	The board shall meet at such times and places as may be fixed by the board. Meetings 
58.21 	of the board are subject to chapter 13D. A majority of the board members then in office 
58.22 	constitutes a quorum at any meeting duly called. The board shall retain or arrange for the 
58.23 	retention of all applications and all documents under oath that are filed with the board and 
58.24 	also records of its proceedings, and it shall maintain a registry of the names and addresses 
58.25 	of all licensees and registrants under this chapter. In any proceeding in court, civil or 
58.26 	criminal, arising out of or founded upon any provision of this chapter, copies of records of 
58.27 	the proceeding certified as true copies by the board chair or executive director shall be 
58.28 	admissible in evidence as tending to prove the contents of the records.

58.29 	Sec. 65. Minnesota Statutes 2014, section 326A.02, subdivision 5, is amended to read:
58.30 		Subd. 5.Rules. The board may adopt rules governing its administration and 
58.31 	enforcement of this chapter and the conduct of licensees and persons registered under 
58.32 	section 326A.06, paragraph (b), including:
58.33 	(1) rules governing the board's meetings and the conduct of its business;
59.1 	(2) rules of procedure governing the conduct of investigations and hearings and 
59.2 	discipline by the board;
59.3 	(3) rules specifying the educational and experience qualifications required for the 
59.4 	issuance of certificates and the continuing professional education required for renewal 
59.5 	of certificates;
59.6 	(4) rules of professional conduct directed to controlling the quality and probity 
59.7 	of services by licensees, and dealing among other things with independence, integrity, 
59.8 	and objectivity; competence and technical standards; and responsibilities to the public 
59.9 	and to clients;
59.10 	(5) rules governing the professional standards applicable to licensees including 
59.11 	adoption of the standards specified in section 326A.01, subdivision 2, and as developed 
59.12 	for general application by recognized national accountancy organizations such as the 
59.13 	American Institute of Certified Public Accountants or the Public Company Accounting 
59.14 	Oversight Board;
59.15 	(6) rules that incorporate by reference the standards for attesting listed in section 
59.16 	326A.01, subdivision 2, that are consistent with the standards of general applicability 
59.17 	recognized by national accountancy organizations, including the American Institute of 
59.18 	Certified Public Accountants and the Public Company Accounting Oversight Board;
59.19 	(6) (7) rules governing the manner and circumstances of use of the titles "certified 
59.20 	public accountant," "CPA," "registered accounting practitioner," and "RAP";
59.21 	(7) (8) rules regarding peer review that may be required to be performed under 
59.22 	provisions of this chapter;
59.23 	(8) (9) rules on substantial equivalence to implement section 326A.14;
59.24 	(9) (10) rules regarding the conduct of the certified public accountant examination;
59.25 	(10) (11) rules regarding the issuance and renewals of certificates, permits, and 
59.26 	registrations;
59.27 	(11) (12) rules regarding transition provisions to implement this chapter;
59.28 	(12) (13) rules specifying the educational and experience qualifications for 
59.29 	registration, rules of professional conduct, rules regarding peer review, rules governing 
59.30 	standards for providing services, and rules regarding the conduct and content of 
59.31 	examination for those persons registered under section 326A.06, paragraph (b);
59.32 	(13) (14) rules regarding fees for examinations, certificate issuance and renewal, 
59.33 	firm permits, registrations under section 326A.06, paragraph (b), notifications made under 
59.34 	section 326A.14, and late processing fees; and
60.1 	(14) (15) upon any change to this chapter, if the board determines a change in 
60.2 	Minnesota Rules is required, the board may initiate the expedited process under section 
60.3 	14.389 up to one year after the effective date of the change to this chapter.

60.4 	Sec. 66. Minnesota Statutes 2014, section 326A.05, subdivision 1, is amended to read:
60.5 		Subdivision 1.General. The board shall grant or renew permits to practice as 
60.6 	a CPA firm to entities that make application and demonstrate their qualifications in 
60.7 	accordance with this section.
60.8 	(a) The following must hold a permit issued under this section:
60.9 	(1) any firm with an office in this state performing attest services as defined in 
60.10 	section 326A.01, subdivision 2;
60.11 	(2) to the extent required by section 326A.10, paragraph (k), any firm with an office 
60.12 	in this state performing compilation services as defined in section 326A.01, subdivision 6;
60.13 	(3) any firm with an office in this state that uses the title "CPA" or "CPA firm"; or
60.14 	(4) any firm that does not have an office in this state but performs attest services 
60.15 	as described in section 326A.01, subdivision 2, paragraph (1), (3), or (4), for a client 
60.16 	having its headquarters in this state.
60.17 	(b) A firm possessing a valid permit from another state which does not have an office 
60.18 	in this state may perform services described in section 326A.01, subdivision 2, clause (2) 
60.19 	or (5), or subdivision 6, for a client having its headquarters in this state and may use the 
60.20 	title "CPA" or "CPA firm" without a permit issued under this section only if:
60.21 	(1) it has the qualifications described in subdivision 3, paragraph (b);
60.22 	(2) as a condition to the renewal of the firm's permit issued by the other state, that 
60.23 	state requires a peer review which contains the requirements equivalent to subdivision 8, 
60.24 	paragraphs (a) and (e); and
60.25 	(3) it performs the services through an individual who has been granted practice 
60.26 	privileges under section 326A.14.
60.27 	(c) A firm possessing a valid permit from another state that does not have an office 
60.28 	in this state and which is not subject to the requirements of paragraph (a), clause (4), or 
60.29 	(b), may perform other professional services while using the title "CPA" or "CPA firm" in 
60.30 	this state without a permit issued under this section only if the firm:
60.31 	(1) has the qualifications described in subdivision 3, paragraph (b);
60.32 	(2) performs the services through an individual who has been granted practice 
60.33 	privileges under section 326A.14; and
60.34 	(3) can lawfully perform the services in the state where the individuals with practice 
60.35 	privileges have their principal place of business.

61.1 	Sec. 67. Minnesota Statutes 2014, section 326A.05, subdivision 3, is amended to read:
61.2 		Subd. 3.Qualifications. (a) An applicant for initial issuance or renewal of a permit 
61.3 	to practice under this section shall comply with the requirements in this subdivision.
61.4 	(b) Notwithstanding chapter 319B or any other provision of law, a simple majority 
61.5 	of the ownership of the firm, in terms of financial interests and voting rights of all partners, 
61.6 	officers, shareholders, members, or managers, must belong to holders of certificates who 
61.7 	are licensed in some state, and the partners, officers, shareholders, members, or managers, 
61.8 	whose principal place of business is in this state, and who perform professional services in 
61.9 	this state, must hold valid certificates issued under section 326A.04 or the corresponding 
61.10 	provision of prior law. Although firms may include nonlicensee owners, the firm and 
61.11 	its ownership must comply with rules adopted by the board. The firm shall register all 
61.12 	nonlicensee owners with the state board as set forth by rule. An individual who has been 
61.13 	granted practice privileges under section 326A.14 and who performs services for which 
61.14 	a firm permit is required under section 326A.14, subdivision 1, paragraph (d), is not 
61.15 	required to obtain a certificate from the board under section 326A.04.
61.16 	(c) A CPA firm may include nonlicensee owners provided that:
61.17 	(1) the firm designates a licensee of this state, or in the case of a firm that must 
61.18 	have a permit according to section 326A.14, subdivision 1, paragraph (d), a licensee of 
61.19 	another state who meets the requirements in section 326A.14, subdivision 1, paragraph 
61.20 	(a) or (b), who is responsible for the proper registration of the firm and identifies that 
61.21 	individual to the board;
61.22 	(2) all nonlicensee owners are persons of good moral character and are active 
61.23 	individual participants in the CPA firm or affiliated entities; and
61.24 	(3) the firm complies with other requirements imposed by the board in rule.
61.25 	(d) An individual licensee and any individual granted practice privileges under 
61.26 	section 326A.14 who is responsible for supervising attest or compilation services and 
61.27 	signs or authorizes someone to sign the accountant's report on the financial statements 
61.28 	on behalf of the firm, shall meet the competency requirements set out in the professional 
61.29 	standards for such services.
61.30 	(e) An individual licensee and any individual granted practice privileges under section 
61.31 	326A.14 who signs or authorizes someone to sign the accountants' report on the financial 
61.32 	statements on behalf of the firm shall meet the competency requirement of paragraph (d).

61.33 	Sec. 68. Minnesota Statutes 2014, section 326A.08, subdivision 7, is amended to read:
62.1 		Subd. 7.Violation; penalties; costs of proceeding. (a) The board may impose 
62.2 	a civil penalty not to exceed $2,000 $5,000  per violation upon a person or a firm that 
62.3 	violates an order, statute, or rule that the board has issued or is empowered to enforce.
62.4 	(b) The board may, in addition, impose a fee to reimburse the board for all or 
62.5 	part of the cost of the proceedings, including reasonable investigative costs, resulting 
62.6 	in disciplinary or corrective action authorized by this section, the imposition of civil 
62.7 	penalties, or the issuance of a cease and desist order. The fee may be imposed when the 
62.8 	board shows that the position of the person or firm that violates a statute, rule, or order 
62.9 	that the board has issued or is empowered to enforce is not substantially justified, unless 
62.10 	special circumstances make an award unjust, notwithstanding the provisions of Minnesota 
62.11 	Rules, part 1400.8401. The costs include, but are not limited to, the amount paid by the 
62.12 	board for services from the office of administrative hearings, attorney and reasonable 
62.13 	investigative fees, court reporters, witnesses, reproduction of records, board members' per 
62.14 	diem compensation, board staff time, and expense incurred by board members and staff.

62.15 	Sec. 69. Minnesota Statutes 2014, section 326A.10, is amended to read:
62.16 	326A.10 UNLAWFUL ACTS.
62.17 	(a) Only a licensee and individuals who have been granted practice privileges 
62.18 	under section 326A.14 may issue a report on financial statements of any person, firm, 
62.19 	organization, or governmental unit that results from providing attest services, or offer to 
62.20 	render or render any attest service. Only a certified public accountant, an individual who 
62.21 	has been granted practice privileges under section 326A.14, a CPA firm, or, to the extent 
62.22 	permitted by board rule, a person registered under section 326A.06, paragraph (b), may 
62.23 	issue a report on financial statements of any person, firm, organization, or governmental 
62.24 	unit that results from providing compilation services or offer to render or render any 
62.25 	compilation service. These restrictions do not prohibit any act of a public official or 
62.26 	public employee in the performance of that person's duties or prohibit the performance 
62.27 	by any nonlicensee of other services involving the use of accounting skills, including 
62.28 	the preparation of tax returns, management advisory services, and the preparation of 
62.29 	financial statements without the issuance of reports on them. Nonlicensees may prepare 
62.30 	financial statements and issue nonattest transmittals or information on them which do not 
62.31 	purport to be in compliance with the Statements on Standards for Accounting and Review 
62.32 	Services (SSARS). Nonlicensees registered under section 326A.06, paragraph (b), may, 
62.33 	to the extent permitted by board rule, prepare financial statements and issue nonattest 
62.34 	transmittals or information on them.
63.1 	(b) Licensees and individuals who have been granted practice privileges under 
63.2 	section 326A.14 performing attest or compilation services must provide those services in 
63.3 	accordance with professional standards. To the extent permitted by board rule, registered 
63.4 	accounting practitioners performing compilation services must provide those services in 
63.5 	accordance with standards specified in board rule.
63.6 	(c) A person who does not hold a valid certificate issued under section 326A.04 
63.7 	or a practice privilege granted under section 326A.14 shall not use or assume the title 
63.8 	"certified public accountant," the abbreviation "CPA," or any other title, designation, 
63.9 	words, letters, abbreviation, sign, card, or device tending to indicate that the person is a 
63.10 	certified public accountant.
63.11 	(d) A firm shall not provide attest services or assume or use the title "certified public 
63.12 	accountants," the abbreviation "CPA's," or any other title, designation, words, letters, 
63.13 	abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless 
63.14 	(1) the firm has complied with section 326A.05, and (2) ownership of the firm is in 
63.15 	accordance with this chapter and rules adopted by the board.
63.16 	(e) A person or firm that does not hold a valid certificate or permit issued under 
63.17 	section 326A.04 or 326A.05 or has not otherwise complied with section 326A.04 or 
63.18 	326A.05 as required in this chapter shall not assume or use the title "certified accountant," 
63.19 	"chartered accountant," "enrolled accountant," "licensed accountant," "registered 
63.20 	accountant," "accredited accountant," "accounting practitioner," "public accountant," 
63.21 	"licensed public accountant," or any other title or designation likely to be confused 
63.22 	with the title "certified public accountant," or use any of the abbreviations "CA," "LA," 
63.23 	"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the 
63.24 	abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals 
63.25 	so designated by the Internal Revenue Service.
63.26 	(f) Persons registered under section 326A.06, paragraph (b), may use the title 
63.27 	"registered accounting practitioner" or the abbreviation "RAP." A person who does not 
63.28 	hold a valid registration under section 326A.06, paragraph (b), shall not assume or use 
63.29 	such title or abbreviation.
63.30 	(g) Except to the extent permitted in paragraph (a), nonlicensees may not use 
63.31 	language in any statement relating to the financial affairs of a person or entity that is 
63.32 	conventionally used by licensees in reports on financial statements or on an attest service. 
63.33 	In this regard, the board shall issue by rule safe harbor language that nonlicensees may 
63.34 	use in connection with such financial information. A person or firm that does not hold a 
63.35 	valid certificate or permit, or a registration issued under section 326A.04, 326A.05, or 
63.36 	326A.06, paragraph (b), or has not otherwise complied with section 326A.04 or 326A.05
64.1 	as required in this chapter shall not assume or use any title or designation that includes the 
64.2 	word "accountant" or "accounting" in connection with any other language, including the 
64.3 	language of a report, that implies that the person or firm holds such a certificate, permit, 
64.4 	or registration or has special competence as an accountant. A person or firm that does 
64.5 	not hold a valid certificate or permit issued under section 326A.04 or 326A.05 or has not 
64.6 	otherwise complied with section 326A.04 or 326A.05 as required in this chapter shall not 
64.7 	assume or use any title or designation that includes the word "auditor" in connection with 
64.8 	any other language, including the language of a report, that implies that the person or firm 
64.9 	holds such a certificate or permit or has special competence as an auditor. However, 
64.10 	this paragraph does not prohibit any officer, partner, member, manager, or employee of 
64.11 	any firm or organization from affixing that person's own signature to any statement in 
64.12 	reference to the financial affairs of such firm or organization with any wording designating 
64.13 	the position, title, or office that the person holds, nor prohibit any act of a public official or 
64.14 	employee in the performance of the person's duties as such.
64.15 	(h)(1) No person holding a certificate or registration or firm holding a permit under 
64.16 	this chapter shall use a professional or firm name or designation that is misleading about 
64.17 	the legal form of the firm, or about the persons who are partners, officers, members, 
64.18 	managers, or shareholders of the firm, or about any other matter. However, names of one 
64.19 	or more former partners, members, managers, or shareholders may be included in the 
64.20 	name of a firm or its successor.
64.21 	(2) A common brand name or network name part, including common initials, used 
64.22 	by a CPA firm in its name, is not misleading if the firm is a network firm as defined in 
64.23 	the American Institute of Certified Public Accountants (AICPA) Code of Professional 
64.24 	Conduct in effect July 1, 2011, and when offering or rendering services that require 
64.25 	independence under AICPA standards, the firm must comply with the AICPA code's 
64.26 	applicable standards on independence.
64.27 	(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification, 
64.28 	designation, degree, or license granted in a foreign country entitling the holder to engage 
64.29 	in the practice of public accountancy or its equivalent in that country, if:
64.30 	(1) the activities of the person or firm in this state are limited to the provision of 
64.31 	professional services to persons or firms who are residents of, governments of, or business 
64.32 	entities of the country in which the person holds the entitlement;
64.33 	(2) the person or firm performs no attest or compilation services and issues no 
64.34 	reports with respect to the financial statements information of any other persons, firms, or 
64.35 	governmental units in this state; and
65.1 	(3) the person or firm does not use in this state any title or designation other than 
65.2 	the one under which the person practices in the foreign country, followed by a translation 
65.3 	of the title or designation into English, if it is in a different language, and by the name 
65.4 	of the country.
65.5 	(j) No holder of a certificate issued under section 326A.04 may perform attest services 
65.6 	through any business form that does not hold a valid permit issued under section 326A.05.
65.7 	(k) No individual licensee may issue a report in standard form upon a compilation 
65.8 	of financial information through any form of business that does not hold a valid permit 
65.9 	issued under section 326A.05, unless the report discloses the name of the business through 
65.10 	which the individual is issuing the report, and the individual:
65.11 	(1) signs the compilation report identifying the individual as a certified public 
65.12 	accountant;
65.13 	(2) meets the competency requirement provided in applicable standards; and
65.14 	(3) undergoes no less frequently than once every three years, a peer review 
65.15 	conducted in a manner specified by the board in rule, and the review includes verification 
65.16 	that the individual has met the competency requirements set out in professional standards 
65.17 	for such services.
65.18 	(l) No person registered under section 326A.06, paragraph (b), may issue a report 
65.19 	in standard form upon a compilation of financial information unless the board by rule 
65.20 	permits the report and the person:
65.21 	(1) signs the compilation report identifying the individual as a registered accounting 
65.22 	practitioner;
65.23 	(2) meets the competency requirements in board rule; and
65.24 	(3) undergoes no less frequently than once every three years a peer review conducted 
65.25 	in a manner specified by the board in rule, and the review includes verification that the 
65.26 	individual has met the competency requirements in board rule.
65.27 	(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from 
65.28 	preparing or presenting records or documents customarily prepared by an attorney or firm 
65.29 	of attorneys in connection with the attorney's professional work in the practice of law.
65.30 	(n) The board shall adopt rules that place limitations on receipt by a licensee or a 
65.31 	person who holds a registration under section 326A.06, paragraph (b), of:
65.32 	(1) contingent fees for professional services performed; and
65.33 	(2) commissions or referral fees for recommending or referring to a client any 
65.34 	product or service.
65.35 	(o) Anything in this section to the contrary notwithstanding, it shall not be a violation 
65.36 	of this section for a firm not holding a valid permit under section 326A.05 and not having 
66.1 	an office in this state to provide its professional services in this state so long as it complies 
66.2 	with the applicable requirements of section 326A.05, subdivision 1.

66.3 	Sec. 70. Minnesota Statutes 2014, section 336A.09, subdivision 1, is amended to read:
66.4 		Subdivision 1.Procedure. (a) Oral Online and written inquiries regarding 
66.5 	information provided by the filing of effective financing statements or lien notices may 
66.6 	be made at any filing office submitted to the secretary of state during regular business 
66.7 	hours or, if submitted online, at any time.
66.8 	(b) A filing office receiving an oral or written inquiry shall, upon request The 
66.9 	secretary of state must, upon receiving an inquiry, provide an oral or facsimile a prompt 
66.10 	response to the inquiry.
66.11 	(c) A filing office The secretary of state shall maintain a record of inquiries made 
66.12 	under this section including:
66.13 	(1) the date of the inquiry;
66.14 	(2) the name of the debtor inquired about; and
66.15 	(3) identification of the person making the request for inquiry.

66.16 	Sec. 71. Minnesota Statutes 2014, section 349.16, subdivision 6a, is amended to read:
66.17 		Subd. 6a.Monthly regulatory fee. An organization must pay a monthly regulatory 
66.18 	fee of 0.1 0.125 percent of the organization's gross receipts from lawful gambling 
66.19 	conducted each month. The fee must be reported and paid on a monthly basis in a format 
66.20 	as determined by the commissioner of revenue, and remitted to the commissioner of 
66.21 	revenue with the organization's monthly tax return. All monthly regulatory fees received 
66.22 	by the commissioner of revenue under this subdivision must be deposited in the lawful 
66.23 	gambling regulation account in the special revenue fund according to section 349.151. 
66.24 	Failure to pay the monthly regulatory fees in a timely manner may result in disciplinary 
66.25 	action by the board.

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

66.27 	Sec. 72. Minnesota Statutes 2014, section 349.161, subdivision 4, is amended to read:
66.28 		Subd. 4.Fees. (a) The annual fee for a distributor's license is $6,000 $7,000.
66.29 	(b) The annual fee for a distributor salesperson license is $100 $150.

66.30 	EFFECTIVE DATE. This section is effective the day following final enactment 
66.31 	and applies to distributor and distributor salesperson licenses with an effective date 
66.32 	of July 1, 2015, or later.

67.1 	Sec. 73. Minnesota Statutes 2014, section 349.163, subdivision 2, is amended to read:
67.2 		Subd. 2.License; fee. The annual fee for a manufacturer's license is $9,000 $10,000.

67.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
67.4 	and applies to manufacturer licenses with an effective date of July 1, 2015, or later.

67.5 	Sec. 74. Minnesota Statutes 2014, section 349.163, subdivision 6, is amended to read:
67.6 		Subd. 6.Samples of gambling equipment. (a) The board shall require each 
67.7 	licensed manufacturer to submit to the board one or more samples of each item of 
67.8 	gambling equipment manufactured for use or resale in this state. For purposes of this 
67.9 	subdivision, a manufacturer is also required to submit the applicable version of any 
67.10 	software necessary to operate electronic devices and related systems.
67.11 	(b) The board shall inspect and test all the equipment, including software and 
67.12 	software upgrades, it deems necessary to determine the equipment's compliance with law 
67.13 	and board rules. Samples required under this subdivision must be approved by the board 
67.14 	before the equipment being sampled is shipped into or sold for use or resale in this state. 
67.15 	The board shall impose a fee of $25 $30 for each item of gambling equipment that the 
67.16 	manufacturer submits for approval or for which the manufacturer requests approval. The 
67.17 	board shall impose a fee of $100 $125 for each sample of gambling equipment that it tests.
67.18 	(c) The board may require samples of gambling equipment to be tested by an 
67.19 	independent testing laboratory prior to submission to the board for approval. All costs 
67.20 	of testing by an independent testing laboratory must be borne by the manufacturer. An 
67.21 	independent testing laboratory used by a manufacturer to test samples of gambling 
67.22 	equipment must be approved by the board before the equipment is submitted to the 
67.23 	laboratory for testing.
67.24 	(d) The board may request the assistance of the commissioner of public safety and 
67.25 	the director of the State Lottery in performing the tests.

67.26 	EFFECTIVE DATE. This section is effective the day following final enactment 
67.27 	and applies to games submitted for approval on July 1, 2015, or later.

67.28 	Sec. 75. Minnesota Statutes 2014, section 349.166, subdivision 2, is amended to read:
67.29 		Subd. 2.Exemptions. (a) Lawful gambling, with the exception of linked bingo 
67.30 	games, may be conducted by an organization without a license and without complying 
67.31 	with sections 349.168, subdivisions 1 and 2; 349.17, subdivision 4; 349.18, subdivision 1; 
67.32 	and 349.19 if:
67.33 	(1) the organization conducts lawful gambling on five or fewer days in a calendar year;
68.1 	(2) the organization does not award more than $50,000 in prizes for lawful gambling 
68.2 	in a calendar year;
68.3 	(3) the organization submits a board-prescribed application and pays a fee of $50 
68.4 	$100 to the board for each gambling occasion, and receives an exempt permit number 
68.5 	from the board. If the application is postmarked or received less than 30 days before the 
68.6 	gambling occasion, the fee is $100 $150 for that application. The application must include 
68.7 	the date and location of the occasion, the types of lawful gambling to be conducted, and 
68.8 	the prizes to be awarded;
68.9 	(4) the organization notifies the local government unit 30 days before the lawful 
68.10 	gambling occasion, or 60 days for an occasion held in a city of the first class;
68.11 	(5) the organization purchases all gambling equipment and supplies from a licensed 
68.12 	distributor; and
68.13 	(6) the organization reports to the board, on a single-page form prescribed by the 
68.14 	board, within 30 days of each gambling occasion, the gross receipts, prizes, expenses, 
68.15 	expenditures of net profits from the occasion, and the identification of the licensed 
68.16 	distributor from whom all gambling equipment was purchased.
68.17 	(b) If the organization fails to file a timely report as required by paragraph (a), clause 
68.18 	(6), the board shall not issue any authorization, license, or permit to the organization to 
68.19 	conduct lawful gambling on an exempt, excluded, or licensed basis until the report has 
68.20 	been filed and the organization may be subject to penalty as determined by the board. The 
68.21 	board may refuse to issue any authorization, license, or permit if a report or application is 
68.22 	determined to be incomplete or knowingly contains false or inaccurate information.
68.23 	(c) Merchandise prizes must be valued at their fair market value.
68.24 	(d) Organizations that qualify to conduct exempt raffles under paragraph (a), are 
68.25 	exempt from section 349.173, paragraph (b), clause (2), if the raffle tickets are sold 
68.26 	only in combination with an organization's membership or a ticket for an organization's 
68.27 	membership dinner and are not included with any other raffle conducted under the exempt 
68.28 	permit.
68.29 	(e) Unused pull-tab and tipboard deals must be returned to the distributor within 
68.30 	seven working days after the end of the lawful gambling occasion. The distributor must 
68.31 	accept and pay a refund for all returns of unopened and undamaged deals returned under 
68.32 	this paragraph.
68.33 	(f) The organization must maintain all required records of exempt gambling activity 
68.34 	for 3-1/2 years.

68.35 	EFFECTIVE DATE. This section is effective the day following final enactment 
68.36 	and applies to all permits with an effective date of July 1, 2015, or later.

69.1 	Sec. 76. [383B.83] LIMITS ON RAILROAD CONDEMNATION POWERS 
69.2 	OVER CERTAIN GOVERNMENTAL PROPERTY INTERESTS.
69.3 	Notwithstanding anything to the contrary in chapter 117, sections 222.26, 222.27, 
69.4 	222.36, or any other law, the powers of a railroad corporation or a railroad company 
69.5 	or a railroad interest acting as a public service corporation or a common carrier do not 
69.6 	include the power to exercise eminent domain over a property interest owned by Hennepin 
69.7 	County, the Hennepin County Housing and Redevelopment Authority, or the Hennepin 
69.8 	County Regional Railroad Authority if such governmental power, by resolution of its 
69.9 	governing board, determines based on findings that the public safety or access of first 
69.10 	responders would be detrimentally affected by the exercise. 

69.11 	EFFECTIVE DATE. This section is effective retroactively from March 2, 2015, 
69.12 	and applies to any eminent domain action to acquire any property interest of any of the 
69.13 	named entities.

69.14 	Sec. 77. Laws 2013, chapter 142, article 1, section 10, is amended to read:

69.15
69.16	Sec. 10. OFFICE OF ENTERPRISE 
TECHNOLOGY MN.IT SERVICES
 	$
	2,431,000
	$
	2,431,000
	
69.17 	During the biennium ending June 30, 2015, 
69.18 	the Office of Enterprise Technology MN.IT 
69.19 	Services must not charge fees to a public 
69.20 	noncommercial educational television 
69.21 	broadcast station eligible for funding under 
69.22 	Minnesota Statutes, chapter 129D, for 
69.23 	access to the state broadcast infrastructure. 
69.24 	If the access fees not charged to public 
69.25 	noncommercial educational television 
69.26 	broadcast stations total more than $400,000 
69.27 	for the biennium, the office may charge for 
69.28 	access fees in excess of these amounts.
69.29 	The commissioner of Minnesota management 
69.30 	and budget is authorized to provide cash 
69.31 	flow assistance of up to $110,000,000 from 
69.32 	the special revenue fund or other statutory 
69.33 	general funds as defined in Minnesota 
69.34 	Statutes, section 16A.671, subdivision 3, 
70.1 	paragraph (a), to the Office of Enterprise 
70.2 	Technology MN.IT Services for the purpose 
70.3 	of managing revenue and expenditure 
70.4 	differences during the initial phases of IT 
70.5 	consolidation. These funds shall be repaid 
70.6 	with interest by June 30, 2015 the end of the 
70.7 	fiscal year 2015 closing period.

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

70.9 	Sec. 78. Laws 2014, chapter 287, section 25, is amended to read:
70.10 	Sec. 25. PARKING RAMP; REQUIRED USER FINANCING.
 70.11 	The amount equivalent to debt service on the design and construction costs allocated 
70.12 	to the parking garage to be located on the block bounded by Sherburne Avenue on the north, 
70.13 	Park Street on the west, University Avenue on the south, and North Capitol Boulevard on 
70.14 	the east must be user-financed frommust be transferred from parking fees collected and 
70.15 	deposited into the state parking account and credited to the debt service account for the 
70.16 	Legislative Office Facility. to the general fund to offset any direct appropriations made to 
70.17 	the senate for debt service payments for the legislative parking garage.

70.18 	Sec. 79. CAPITOL ROOM NUMBERS.
 70.19 	After the Capitol renovation has been completed, the commissioner of administration 
70.20 	must use the same room numbers on signage to identify legacy rooms that were used to 
70.21 	identify the rooms before the Capitol renovation. For purposes of this section, "Capitol 
70.22 	renovation" means the construction project for which funds were appropriated in Laws 
70.23 	2013, chapter 136, section 3; "legacy rooms" means any room in the Capitol after Capitol 
70.24 	renovation that has dimensions and a location that are substantially similar to a room 
70.25 	within the Capitol that existed before renovation; and "signage" means any posting on any 
70.26 	surface in the Capitol building.

70.27 	Sec. 80. IN-LIEU OF RENT EVALUATION.
 70.28 	(a) The commissioner of administration must evaluate and provide recommendations 
70.29 	regarding the base appropriation to the Department of Administration for an in-lieu of rent 
70.30 	payment for space costs of the legislature and veterans organizations, vending operators, 
70.31 	ceremonial space, and statutorily free space in the Capitol building and in other buildings 
70.32 	on the Capitol grounds under the custodial control of the Department of Administration.
71.1 	(b) By January 15, 2017, the commissioner must report to the chairs and 
71.2 	ranking minority members of the committees and divisions in the senate and the 
71.3 	house of representatives with jurisdiction over the appropriation to the Department of 
71.4 	Administration for the in-lieu of rent payment.  The report must:
71.5 	(1) identify the amount and quality of space that will be occupied by the senate, the 
71.6 	house of representatives, and veterans organizations, ceremonial space, and statutorily free 
71.7 	space, in fiscal years 2018 and 2019, including a comparison to the amount and quality of 
71.8 	space occupied by the same tenants in fiscal year 2013;
71.9 	(2) evaluate and justify the expense components included and assumptions made in 
71.10 	determining lease rates and make comparisons to market rates; and
71.11 	(3) evaluate whether the base funding for fiscal years 2018 and 2019 for the in-lieu 
71.12 	of rent appropriation is justified, and if not, recommend an increase or decrease.
71.13 	(c) In conducting the evaluation and preparing the report, the commissioner must 
71.14 	consult with the secretary of the senate, the chief clerk of the house of representatives, the 
71.15 	commissioner of employment and economic development on behalf of the services for the 
71.16 	blind, and the commissioner of veterans affairs on behalf of veterans organizations that use 
71.17 	space for which the Department of Administration receives an in-lieu of rent appropriation.

71.18 	Sec. 81. RULEMAKING.
 71.19 	(a) The Board of Cosmetologist Examiners shall adopt rules governing the licensure, 
71.20 	operation, and inspection of mobile salons, including facility requirements; safety and 
71.21 	infection control requirements; a process for a salon licensee to notify the board of the 
71.22 	mobile salon's location and times of operation; requirements for supplying and disposing 
71.23 	of water and waste products; and the scope of personal services to be provided in mobile 
71.24 	salons. The rules must prohibit mobile salons from violating reasonable municipal 
71.25 	restrictions on time and place of operation of a mobile salon within its jurisdiction, 
71.26 	and shall establish penalties, up to and including revocation of a license, for repeated 
71.27 	violations of municipal laws.
71.28 	(b) The Board of Cosmetologist Examiners shall adopt rules governing the advanced 
71.29 	practice esthetician license, including the educational and training requirements, scope of 
71.30 	practice, and the conditions and process of issuing and renewing the license.

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

71.34 	Sec. 82. POLITICAL CONTRIBUTION CREDIT.
 72.1 	Notwithstanding the provisions of Minnesota Statutes, section 290.06, subdivision 
72.2 	23, or any other law to the contrary, the political contribution refund does not apply to 
72.3 	contributions made after June 30, 2015, and before July 1, 2017.

72.4 	Sec. 83. STATE AGENCY TECHNOLOGY PROJECTS.
 72.5 	Any appropriation in this chapter for information technology project services and 
72.6 	support is subject to Minnesota Statutes, section 16E.0466. If an agency needs ongoing 
72.7 	information technology services as a result of the services and support paid for with an 
72.8 	appropriation in this chapter, the agency must enter into an agreement with the Office of 
72.9 	MN.IT Services to provide those services. The agreement must require the agency to pay 
72.10 	the Office of MN.IT Services under rates and mechanisms specified in the agreement.

72.11 	Sec. 84. EXAMINATION OF COUNTY RECORDS; REPORT.
 72.12 	Consistent with the authority granted under Minnesota Statutes, section 3.971, 
72.13 	the Office of the Legislative Auditor shall report on the efficiency of the examinations 
72.14 	conducted by the state auditor under Minnesota Statutes, section 6.48. The report must be 
72.15 	forwarded to the house of representatives and senate chairs of legislative committees with 
72.16 	jurisdiction over state government finance by January 15, 2016.

72.17 	Sec. 85. REPORT ON AGENCY CHIEF INFORMATION OFFICERS.
 72.18 	The chief information officer of MN.IT must report to the legislature by January 15, 
72.19 	2016, on reduction in the number of chief information officers (CIOs) in state agencies. 
72.20 	The report must include the number of CIOs on July 1, 2015, the number on January 
72.21 	15, 2016, and plans to reduce that number.

72.22 	Sec. 86. TRANSITION.
 72.23 	(a) Members of an ethnic council specified in new Minnesota Statutes, section 
72.24 	15.0145, on July 1, 2015, continue to serve on the council until the end of their current 
72.25 	term. However, if a member of a council has served eight years or more on the council 
72.26 	at any time before December 31, 2015, the term of that member expires December 31, 
72.27 	2015. If a council has more members on July 1, 2015, than is provided for by Minnesota 
72.28 	Statutes, section 15.0145, positions on the council shall not be filled until the expiration of 
72.29 	a term results in fewer members on the council than provided for in Minnesota Statutes, 
72.30 	section 15.0145. Membership qualifications newly specified in Minnesota Statutes, section 
72.31 	15.0145, must be complied with as soon as possible when terms of current members expire.
73.1 	(b) The Legislative Coordinating Commission must appoint an executive director 
73.2 	for each council no later than November 15, 2015. The authority of the Legislative 
73.3 	Coordinating Commission to recruit and select persons to serve as executive directors 
73.4 	is effective the day following final enactment. An incumbent executive director of a 
73.5 	council may apply to be appointed by the Legislative Coordinating Commission but, if 
73.6 	not selected, the employment of the incumbent ends when the Legislative Coordinating 
73.7 	Commission appoints a new executive director, or on another date determined by the 
73.8 	Legislative Coordinating Commission. Other council staff are transferred to employment 
73.9 	with the reformulated councils specified in Minnesota Statutes, section 15.0145.
73.10 	(c) Minnesota Statutes, section 15.039, subdivisions 1 to 6, apply to the ethnic 
73.11 	councils that are reformulated in this act.

73.12 	Sec. 87. REVISOR'S INSTRUCTION.
 73.13 		Subdivision 1.Cosmetology. The revisor of statutes shall change the word 
73.14 	"sanitation" to "infection control" and the word "lapsed" to "expired" wherever they 
73.15 	appear in Minnesota Statutes, chapter 155A, or Minnesota Rules, chapter 2105 or 2110.
73.16 		Subd. 2.County audits. In the next and subsequent edition of Minnesota Statutes, 
73.17 	the Revisor of Statutes shall substitute a reference to section 6.481 for each reference 
73.18 	to section 6.48.
73.19 		Subd. 3.Ethnic councils. (a) In the next and subsequent editions of Minnesota 
73.20 	Statutes, the revisor of statutes shall substitute the names of councils as follows in each 
73.21 	place where the names occur:
73.22 	(1) Council for Minnesotans of African Heritage, in place of Council on Black 
73.23 	Minnesotans; and 
73.24 	(2) Minnesota Council on Latino Affairs, in place of Council on Affairs of 
73.25 	Chicano/Latino People.
73.26 	(b) The revisor of statutes shall change cross-references to sections 3.9223, 3.9225, 
73.27 	and 3.9226, with Minnesota Statutes, section 15.0145, and make changes necessary to 
73.28 	correct punctuation, grammar, or sentence structure.

73.29 	EFFECTIVE DATE. Subdivision 2 is effective August 1, 2016.

73.30 	Sec. 88.  REPEALER.
 73.31 	(a) Minnesota Statutes 2014, sections 3.9223; 3.9225; and 3.9226, subdivisions 1, 
73.32 	2, 3, 4, 5, 6, and 7, are repealed.
73.33 	(b) Minnesota Statutes 2014, sections 6.48; and 375.23, are repealed.
73.34 	(c) Minnesota Statutes 2014, section 155A.23, subdivision 6, is repealed.

74.1 	ARTICLE 3
74.2 	MILITARY AND VETERANS AFFAIRS

74.3 	Section 1. Minnesota Statutes 2014, section 190.19, subdivision 2a, is amended to read:
74.4 		Subd. 2a.Uses; veterans. (a) Money appropriated to the Department of Veterans 
74.5 	Affairs from the Minnesota "Support Our Troops" account may be used for:
74.6 	(1) grants to veterans service organizations;
74.7 	(2) outreach to underserved veterans;
74.8 	(3) providing services and programs for veterans and their families; and
74.9 	(4) transfers to the vehicle services account for Gold Star license plates under 
74.10 	section 168.1253.;
74.11 	(5) grants of up to $100,000 to any organization approved by the commissioner of 
74.12 	veterans affairs for the purpose of supporting and improving the lives of veterans and 
74.13 	their families; and
74.14 	(6) grants to an eligible foundation. 
74.15 	(b) For purposes of this subdivision, "eligible foundation" includes any organization 
74.16 	that:
74.17 	(1) is a tax-exempt organization under section 501(c) of the Internal Revenue 
74.18 	Code; and
74.19 	(2) is a nonprofit corporation under chapter 317A and the organization's articles of 
74.20 	incorporation specify that a purpose of the organization includes (i) providing assistance 
74.21 	to veterans and their families or (ii) enhancing the lives of veterans and their families.

74.22 	Sec. 2. Minnesota Statutes 2014, section 190.19, subdivision 3, is amended to read:
74.23 		Subd. 3.Annual report. The adjutant general  and commissioner of veterans affairs 
74.24 	must report by February 1, 2007, and each year thereafter, to the chairs and ranking minority 
74.25 	members of the legislative committees and divisions with jurisdiction over military and 
74.26 	veterans' affairs on the number, amounts, and use of grants made by the adjutant general  
74.27 	each agency from the Minnesota "Support Our Troops" account in the previous year.

74.28 	Sec. 3. Minnesota Statutes 2014, section 192.38, subdivision 1, is amended to read:
74.29 		Subdivision 1.Temporary emergency relief. If any officer or enlisted member 
74.30 	of the military forces is wounded or otherwise disabled, dies from disease contracted or 
74.31 	injuries received, or is killed while in state active service as defined in section 190.05, 
74.32 	subdivision 5a, the officer or member, or in the case of death the officer's or member's 
74.33 	dependent spouse, child, or parent, may be provided with immediate temporary relief as 
75.1 	necessary in cases of severe hardship, in an amount to be determined by the adjutant general 
75.2 	and approved by the governor or a death gratuity payment equal to the amount allowed for 
75.3 	service members in a federal active service status. All payments under this subdivision 
75.4 	shall be made from appropriations for the maintenance of the state military forces 
75.5 	emergency services. The adjutant general shall notify the Department of Management and 
75.6 	Budget of any payments made pursuant to this subdivision and the amount of it shall be 
75.7 	subtracted from any award made by the Department of Management and Budget.

75.8 	Sec. 4. Minnesota Statutes 2014, section 192.501, is amended by adding a subdivision 
75.9 	to read:
75.10 		Subd. 1d.Reclassification bonus program. (a) The adjutant general must establish 
75.11 	a program to provide a bonus to eligible members of the Minnesota National Guard who 
75.12 	complete training that results in the award of a new military occupational specialty or 
75.13 	Air Force specialty code in specialties that are identified by the adjutant general to be 
75.14 	necessary for the enhanced readiness of the Minnesota National Guard.
75.15 	(b) Eligibility for the bonus is limited to a member of the National Guard who:
75.16 	(1) is serving satisfactorily as determined by the adjutant general;
75.17 	(2) has 16 or fewer years of services creditable for retirement; and
75.18 	(3) undergoes military training deemed by the adjutant general as sufficiently 
75.19 	important to the readiness of the National Guard or a unit of the National Guard to warrant 
75.20 	the payment of a bonus in an amount to generally encourage the member's participation 
75.21 	in the training. 
75.22 	The adjutant general may, within the limitations of this paragraph and other applicable 
75.23 	laws, determine additional eligibility criteria for the bonus, and must specify all of the 
75.24 	criteria in regulations and publish changes as necessary.
75.25 	(c) The bonus payments must be made on a schedule that is determined and 
75.26 	published in department regulations by the adjutant general.
75.27 	(d) If a member fails to complete a term of reenlistment or an obligated term of 
75.28 	commissioned service for which a bonus was paid, the adjutant general may seek to 
75.29 	recoup a prorated amount of the bonus as determined by the adjutant general.

75.30 	Sec. 5. Minnesota Statutes 2014, section 197.133, is amended to read:
75.31 	197.133 DISPOSAL OF PROPERTY AND EXPIRATION OF BOARD OF 
75.32 	GOVERNORS.
75.33 	(a) If a majority of the board determines that the disposal of the Big Island Veterans 
75.34 	camp or a portion of the camp is in the best interests of Minnesota veterans, or if the camp 
76.1 	is not used solely as a camp for and by disabled and other veterans and their families and 
76.2 	operated and maintained in compliance with all state, federal, and local laws, the board 
76.3 	may dispose of the property at market value as provided in this section. Before disposing 
76.4 	of the property, the board shall give notice by certified mail to the commissioner of 
76.5 	veterans affairs of its decision to dispose of the property. The commissioner shall publish 
76.6 	the notice in the State Register. Interested governmental agencies have until the end of the 
76.7 	next legislative session after the notice to appropriate money to purchase the property.
76.8 	(b) Proceeds realized from the disposal of the property and any assets on hand at 
76.9 	the time of the disposal of the property, must be placed in an irrevocable trust to be used 
76.10 	for the initiation or maintenance of veterans programs in the state of Minnesota. Trustees 
76.11 	must be appointed in the same manner as provided for under Minnesota Statutes 2014, 
76.12 	section 197.131. The trustees shall consult with the commissioner of veterans affairs to 
76.13 	determine the needs of Minnesota veterans and provide the commissioner with an annual 
76.14 	written report on the trust. The commissioner must approve all expenditures from the 
76.15 	trust. A certified audit of all assets, expenditures, and property must be conducted prior 
76.16 	to any disposition of any assets under the control of the board. Any board member who 
76.17 	would benefit directly or indirectly financially from the sale of this property must be 
76.18 	removed by the board and a successor appointed as provided by Minnesota Statutes 2014, 
76.19 	section 197.131. Upon final disposition of all assets to the trust, the board must disband. 
76.20 	Should the assets of the trust be exhausted, the trust must be terminated.
76.21 	(c) The trustees appointed under paragraph (b) shall have the exclusive authority 
76.22 	to remove a trustee of the trust established under paragraph (b). A trustee may be 
76.23 	removed at any time without cause upon a majority vote of the trustees with consent 
76.24 	of the commissioner of veterans affairs. 
76.25 	(d) A vacancy in a trusteeship of the trust established under paragraph (b) must 
76.26 	be filled for the remainder of the unexpired term in the same manner as the original 
76.27 	appointment. 

76.28 	Sec. 6. Minnesota Statutes 2014, section 197.46, is amended to read:
76.29 	197.46 VETERANS PREFERENCE ACT; REMOVAL FORBIDDEN; RIGHT 
76.30 	OF MANDAMUS.
76.31 	(a) Any person whose rights may be in any way prejudiced contrary to any of the 
76.32 	provisions of this section, shall be entitled to a writ of mandamus to remedy the wrong. 
76.33 	No person holding a position by appointment or employment in the several counties, 
76.34 	cities, towns, school districts and all other political subdivisions in the state, who is a 
76.35 	veteran separated from the military service under honorable conditions, shall be removed 
77.1 	from such position or employment except for incompetency or misconduct shown after a 
77.2 	hearing, upon due notice, upon stated charges, in writing.
77.3 	(b) Any veteran who has been notified of the intent to discharge the veteran from an 
77.4 	appointed position or employment pursuant to this section shall be notified in writing of 
77.5 	such intent to discharge and of the veteran's right to request a hearing within 60 days of 
77.6 	receipt of the notice of intent to discharge. The failure of a veteran to request a hearing 
77.7 	within the provided 60-day period shall constitute a waiver of the right to a hearing. Such 
77.8 	failure shall also waive all other available legal remedies for reinstatement.
77.9 	Request for a hearing concerning such a discharge shall be made in writing and 
77.10 	submitted by mail or personal service to the employment office of the concerned employer 
77.11 	or other appropriate office or person. If the veteran requests a hearing under this section, 
77.12 	such written request must also contain the veteran's election to be heard by a civil service 
77.13 	board or commission, a merit authority, or a three-person panel as defined in paragraph 
77.14 	(c). If the veteran fails to identify the veteran's election, the governmental subdivision 
77.15 	may select the hearing body.
77.16 	(c) In all governmental subdivisions having an established civil service board or 
77.17 	commission, or merit system authority, such hearing for removal or discharge shall be 
77.18 	held before such civil service board or commission or merit system authority. Where no 
77.19 	such civil service board or commission or merit system authority exists, such hearing 
77.20 	shall be held by a board of three persons appointed as follows: one by the governmental 
77.21 	subdivision, one by the veteran, and the third by the two so selected. In the event that 
77.22 	the hearing is authorized to be held before a three-person board, the governmental 
77.23 	subdivision's notice of intent to discharge shall state that the veteran must respond within 
77.24 	60 days of receipt of the notice of intent to discharge, and provide in writing to the 
77.25 	governmental subdivision the name, United States mailing address, and telephone number 
77.26 	of the veteran's selected representative for the three-person board. The failure of a veteran 
77.27 	to submit the name, address, and telephone number of the veteran's selected representative 
77.28 	to the governmental subdivision by mail or by personal service within the provided 
77.29 	notice's 60-day period, shall constitute a waiver of the veteran's right to the hearing and all 
77.30 	other legal remedies available for reinstatement of the veteran's employment position. In 
77.31 	the event the two persons selected by the veteran and governmental subdivision do not 
77.32 	appoint the third person within ten days after the appointment of the last of the two, 
77.33 	then the judge of the district court of the county wherein the proceeding is pending, or 
77.34 	if there be more than one judge in said county then any judge in chambers, shall have 
77.35 	jurisdiction to appoint, and upon application of either or both of the two so selected shall 
78.1 	appoint, the third person to the board and the person so appointed by the judge with the 
78.2 	two first selected shall constitute the board. 
78.3 	(d) Either the veteran or the governmental subdivision may appeal from the decision 
78.4 	of the board upon the charges to the district court by causing written notice of appeal, 
78.5 	stating the grounds thereof, to be served upon the other party within 15 days after notice of 
78.6 	the decision and by filing the original notice of appeal with proof of service thereof in the 
78.7 	office of the court administrator of the district court within ten days after service thereof. 
78.8 	Nothing in section 197.455 or this section shall be construed to apply to the position of 
78.9 	private secretary, superintendent of schools, or one chief deputy of any elected official 
78.10 	or head of a department, or to any person holding a strictly confidential relation to the 
78.11 	appointing officer. Nothing in this section shall be construed to apply to the position of 
78.12 	teacher. The burden of establishing such relationship shall be upon the appointing officer 
78.13 	in all proceedings and actions relating thereto.
78.14 	(e) For disputes heard by a civil service board, the political subdivisions shall 
78.15 	bear all costs associated with the hearing but not including attorney fees for attorneys 
78.16 	representing the veteran. For disputes heard by a three-person panel, all parties shall bear 
78.17 	equally all costs associated with the hearing, but not including attorney fees for attorneys 
78.18 	representing the veteran. If the veteran prevails in a dispute heard by a civil service board 
78.19 	or a three-person panel and the hearing reverses all aspects of discharge, the governmental 
78.20 	subdivision shall pay the veteran's reasonable attorney fees.
78.21 	(f) All officers, boards, commissions, and employees shall conform to, comply with, 
78.22 	and aid in all proper ways in carrying into effect the provisions of section 197.455 and this 
78.23 	section notwithstanding any laws, charter provisions, ordinances or rules to the contrary. 
78.24 	Any willful violation of such sections by officers, officials, or employees is a misdemeanor.

78.25 	EFFECTIVE DATE. This section is effective the day following final enactment 
78.26 	and applies to all notices of intent to discharge issued on or after that date.

78.27 	Sec. 7. [197.987] HONOR AND REMEMBER FLAG.
78.28 		Subdivision 1.Legislative findings. The legislature of the state of Minnesota finds 
78.29 	and determines that:
78.30 	(1) since the Revolutionary War, more than 1,000,000 members of the United States 
78.31 	armed forces have paid the ultimate price by sacrificing their lives in active military 
78.32 	service for the United States of America;
78.33 	(2) the contribution made by those fallen members of the armed forces is deserving 
78.34 	of state and national recognition; and
79.1 	(3) the Honor and Remember Flag is an appropriate symbol that acknowledges the 
79.2 	selfless sacrifice of those members of the United States armed forces. 
79.3 		Subd. 2.Designation. The Honor and Remember Flag described in subdivision 
79.4 	3 is designated as the symbol of our state's concern and commitment to honoring and 
79.5 	remembering the lives of all members of the United States armed forces who have lost 
79.6 	their lives in the line of duty while serving honorably in active military service in the 
79.7 	United States armed forces or of a service-connected cause due to or aggravated by that 
79.8 	service, as determined by the United States Department of Defense or the United States 
79.9 	Department of Veterans Affairs. This designation is contingent on the flag being available 
79.10 	for purchase at a reasonable price.
79.11 		Subd. 3.Description. The Honor and Remember Flag shall conform substantially 
79.12 	to the following description: The Honor and Remember Flag is the same standard 
79.13 	proportions as the flag of the United States of America. Its design contains a red field that 
79.14 	occupies the top three-quarters and a white field that occupies the bottom quarter of the 
79.15 	flag. In the center of the red field is a five-pointed, gold star with the top point located 
79.16 	near the top of the red field and the two bottom points extending about one-quarter of the 
79.17 	way into the white field. The gold star has a white border surrounded by a blue border. 
79.18 	Between the two bottom points of the star is a tri-folded American flag displaying the blue 
79.19 	field and some stars, which is the configuration of the American flag presented to the 
79.20 	family of the deceased at a military memorial service. At the top of the tri-folded flag, 
79.21 	extending into the center of the gold star, is a stylized, three-part flame, with one blue part 
79.22 	and two red parts. In the white field below the tri-folded flag, the words "Honor and 
79.23 	Remember" are centered. The Honor and Remember Flag is protected by U. S. copyright, 
79.24 	registration number VA0001670661, owned by Honor and Remember, Inc.
79.25 		Subd. 4.Suggested days for flag display. (a) The chief administrator of each 
79.26 	governmental building or facility within this state, as defined in paragraph (b), is 
79.27 	encouraged to display the Honor and Remember Flag on the following days each year:
79.28 	(1) Armed Forces Day, the third Saturday in May;
79.29 	(2) Flag Day, June 14;
79.30 	(3) July 2nd and July 3rd, in remembrance of the 262 soldiers of the 1st Regiment 
79.31 	Minnesota Volunteer Infantry who, at the Battle of Gettysburg during the American Civil 
79.32 	War, fought so gallantly and successfully to repulse two major Confederate attacks on the 
79.33 	main Union line, suffering over 80 percent casualties, thereby turning the battle and the 
79.34 	war and helping to preserve the Union itself at that pivotal moment in our nation's history;
79.35 	(4) July 4th, Independence Day;
79.36 	(5) the third Friday of September, National POW/MIA Recognition Day;
80.1 	(6) November 11, Veterans Day;
80.2 	(7) July 27, Korean War Armistice Day;
80.3 	(8) March 29, Vietnam Veterans Day; and
80.4 	(9) any day on which the United States flag is displayed at a governmental building 
80.5 	or facility within this state.
80.6 	(b) For purposes of this section, "governmental building or facility within this state" 
80.7 	means the following locations:
80.8 	(1) the Minnesota State Capitol, the Office of the Governor and each other Minnesota 
80.9 	constitutional office, the chambers of the Minnesota Senate and the Minnesota House of 
80.10 	Representatives, the Minnesota Judicial Center and each Minnesota District Court House, 
80.11 	any official state of Minnesota veterans memorial, Minnesota veterans home, Minnesota 
80.12 	veterans cemetery, state veterans service centers, and state veterans community-based 
80.13 	outreach centers; and
80.14 	(2) any appropriate local government building or facility, as determined by the 
80.15 	governing body of that local government.
80.16 		Subd. 5.Limitation. This section may not be construed or interpreted to require 
80.17 	any employee to report to work solely for the purpose of providing for the display of the 
80.18 	Honor and Remember Flag or any other flag.
80.19 		Subd. 6.Implementation. If a governmental building or facility within this state 
80.20 	opts to display the Honor and Remember Flag, the chief administrator of that facility shall 
80.21 	prescribe procedures necessary for the display.
80.22 		Subd. 7.Flag donation. Notwithstanding sections 10A.071 and 471.895, any 
80.23 	named public office or public official may accept a donation of one or more Honor and 
80.24 	Remember Flags for the purpose of this section.

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

80.26 	Sec. 8. Minnesota Statutes 2014, section 198.01, is amended to read:
80.27 	198.01 VETERANS HOME; ELIGIBILITY OF VETERANS.
80.28 	The Minnesota veterans homes shall provide nursing care and related health 
80.29 	and social services for veterans and their spouses who meet eligibility and admission 
80.30 	requirements of the Minnesota veterans homes. The commissioner may not close a 
80.31 	veterans home unless closure of the home is specifically authorized or required by a law 
80.32 	enacted after July 1, 2015. The word "veteran" as used in this section has the meaning 
80.33 	provided in section 197.447.

81.1 	Sec. 9.  REPEALER.
 81.2 	Minnesota Statutes 2014, sections 197.131; and 197.132, are repealed.

81.3 	ARTICLE 4
81.4 	PARI-MUTUEL HORSE RACING

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

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

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

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

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

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

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

82.8 	Sec. 7. Minnesota Statutes 2014, section 240.011, is amended to read:
82.9 	240.011 APPOINTMENT OF DIRECTOR.
82.10 	The governor shall appoint the director of the Minnesota Racing Commission, 
82.11 	who serves in the unclassified service at the governor's pleasure. The director must be 
82.12 	a person qualified by experience in the administration and regulation of pari-mutuel 
82.13 	racing and training to possess the skills necessary to discharge the duties of the director. 
82.14 	The governor must select a director from a list of one or more names submitted by the 
82.15 	Minnesota Racing Commission.

82.16 	Sec. 8. Minnesota Statutes 2014, section 240.03, is amended to read:
82.17 	240.03 COMMISSION POWERS AND DUTIES.
82.18 	The commission has the following powers and duties:
82.19 	(1) to regulate horse racing in Minnesota to ensure that it is conducted in the public 
82.20 	interest;
82.21 	(2) to issue licenses as provided in this chapter;
82.22 	(3) to enforce all laws and rules governing horse racing;
82.23 	(4) to collect and distribute all taxes provided for in this chapter;
82.24 	(5) to conduct necessary investigations and inquiries and to issue subpoenas to 
82.25 	compel the attendance of witnesses and the submission of information, documents, and 
82.26 	records, and other evidence it deems necessary to carry out its duties;
82.27 	(6) to supervise the conduct of pari-mutuel betting on horse racing;
82.28 	(7) to employ and supervise personnel under this chapter;
82.29 	(8) to determine the number of racing days to be held in the state and at each 
82.30 	licensed racetrack;
82.31 	(9) to take all necessary steps to ensure the integrity of racing in Minnesota; and
82.32 	(10) to impose fees on the racing and card playing industries sufficient to recover the 
82.33 	operating costs of the commission with the approval of the legislature according to section 
82.34 	16A.1283. Notwithstanding section 16A.1283, when the legislature is not in session, the 
83.1 	commissioner of management and budget may grant interim approval for any new fees 
83.2 	or adjustments to existing fees that are not statutorily specified, until such time as the 
83.3 	legislature reconvenes and acts upon the new fees or adjustments. As part of its biennial 
83.4 	budget request, the commission must propose changes to its fees that will be sufficient to 
83.5 	recover the operating costs of the commission.

83.6 	Sec. 9. Minnesota Statutes 2014, section 240.08, subdivision 2, is amended to read:
83.7 		Subd. 2.Application. (a) An application for a class C license must be on a form 
83.8 	the commission prescribes and must be accompanied by an affidavit of qualification 
83.9 	that the applicant:
83.10 	(a) (1) is not in default in the payment of an obligation or debt to the state under 
83.11 	Laws 1983, chapter 214;
83.12 	(b) (2) does not have a felony conviction of record in a state or federal court and 
83.13 	does not have a state or federal felony charge pending;
83.14 	(c) (3) is not and never has been connected with or engaged in an illegal business;
83.15 	(d) (4) has never been found guilty of fraud or misrepresentation in connection 
83.16 	with racing or breeding;
83.17 	(e) (5) has never been found guilty of a violation of law or rule relating to horse 
83.18 	racing, pari-mutuel betting or any other form of gambling which is a serious violation 
83.19 	as defined by the commission's rules; and
83.20 	(f) (6) has never been found to have knowingly violated a rule or an order of the 
83.21 	commission or a law or rule of Minnesota or another jurisdiction relating to horse racing, 
83.22 	pari-mutuel betting, or any other form of gambling.
83.23 	(b) The application must also contain an irrevocable consent statement, to be signed 
83.24 	by the applicant, which states that suits and actions relating to the subject matter of the 
83.25 	application or acts or omissions arising from it may be commenced against the applicant in 
83.26 	any court of competent jurisdiction in this state by the service on the secretary of state of 
83.27 	any summons, process, or pleading authorized by the laws of this state. If any summons, 
83.28 	process, or pleading is served upon the secretary of state, it must be by duplicate copies. 
83.29 	One copy must be retained in the Office of the Secretary of State and the other copy must 
83.30 	be forwarded immediately by certified mail to the address of the applicant, as shown by 
83.31 	the records of the commission.

83.32 	Sec. 10. Minnesota Statutes 2014, section 240.08, subdivision 4, is amended to read:
83.33 		Subd. 4.License issuance and renewal. If the commission determines that 
83.34 	the applicant is qualified for the occupation for which licensing is sought and will 
84.1 	not adversely affect the public health, welfare, and safety or the integrity of racing in 
84.2 	Minnesota, it may issue a class C license to the applicant. If it makes a similar finding for 
84.3 	a renewal of a class C license it may renew the license. Class C licenses are effective for 
84.4 	one year. until December 31 of the calendar year for which they are issued. Certain types 
84.5 	of class C licenses, to be determined by the commission, are effective until December 31 
84.6 	of the third calendar year for which they have been issued.

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

84.8 	Sec. 11. Minnesota Statutes 2014, section 240.08, subdivision 5, is amended to read:
84.9 		Subd. 5.Revocation and suspension. (a) The commission may revoke a class C 
84.10 	license for a violation of law or rule which in the commission's opinion adversely affects 
84.11 	the integrity of horse racing in Minnesota, the public health, welfare, or safety, or for an 
84.12 	intentional false statement made in a license application.
84.13 	The commission may suspend a class C license for up to one year for a violation of 
84.14 	law, order or rule.
84.15 	The commission may delegate to its designated agents the authority to impose 
84.16 	suspensions of class C licenses, and the revocation or suspension of a class C license may 
84.17 	be appealed to the commission according to its rules.
84.18 	(b) A license revocation or suspension for more than 90 days is a contested case 
84.19 	under sections 14.57 to 14.69 of the Administrative Procedure Act and is in addition to 
84.20 	criminal penalties imposed for a violation of law or rule. The commission may summarily 
84.21 	suspend a license for more than 90 days prior to a contested case hearing where it is 
84.22 	necessary to ensure the integrity of racing or to protect the public health, welfare, or safety. 
84.23 	A contested case hearing must be held within 20 30 days of the summary suspension and 
84.24 	the administrative law judge's report must be issued within 20 30 days from the close of 
84.25 	the hearing record. In all cases involving summary suspension the commission must issue 
84.26 	its final decision within 30 days from receipt of the report of the administrative law judge 
84.27 	and subsequent exceptions and argument under section 14.61.

84.28 	Sec. 12. Minnesota Statutes 2014, section 240.10, is amended to read:
84.29 	240.10 LICENSE FEES.
84.30 	The fee for a class A license is $253,000 per year and must be remitted on July 1. 
84.31 	The fee for a class B license is $500 for each assigned racing day and $100 for each day 
84.32 	on which simulcasting is authorized and must be remitted on July 1. Included herein are 
84.33 	all days assigned to be conducted after January 1, 2003. The fee for a class D license is 
85.1 	$50 for each assigned racing day on which racing is actually conducted. Fees imposed on 
85.2 	class D licenses must be paid to the commission at a time and in a manner as provided by 
85.3 	rule of the commission.
85.4 	The commission shall by rule establish an annual license fee for each occupation it 
85.5 	licenses under section 240.08but no annual fee for a class C license may exceed $100.

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

85.7 	Sec. 13. Minnesota Statutes 2014, section 240.13, subdivision 5, is amended to read:
85.8 		Subd. 5.Purses. (a) From the amounts deducted from all pari-mutuel pools by a 
85.9 	licensee, an amount equal to not less than the following percentages of all money in all 
85.10 	pools must be set aside by the licensee and used for purses for races conducted by the 
85.11 	licensee, provided that a licensee may agree by contract with an organization representing 
85.12 	a majority of the horsepersons racing the breed involved to set aside amounts in addition 
85.13 	to the following percentages, if the contract is in writing and filed with the commission:
85.14 	(1) for live races conducted at a class A facility, and for races that are part of full 
85.15 	racing card simulcasting that takes place within the time period of the live races, 8.4 
85.16 	percent of handle;
85.17 	(2) for simulcasts conducted during the racing season other than as provided for in 
85.18 	clause (1), 50 percent of the takeout remaining after deduction for taxes on pari-mutuel 
85.19 	pools, payment to the breeders fund, and payment to the sending out-of-state racetrack for 
85.20 	receipt of the signal; and
85.21 	(3) (2) for simulcasts conducted outside of the racing season, 25 any day a class A 
85.22 	facility is licensed, not less than 37 percent of the takeout remaining after deduction for the 
85.23 	state pari-mutuel tax, payment to the breeders fund, and payment to the sending out-of-state 
85.24 	racetrack for receipt of the signal and, before January 1, 2005, a further deduction of 
85.25 	eight percent of all money in all pools. In the event that wagering on simulcasts outside 
85.26 	of the racing season exceeds $125 million in any calendar year, the amount set aside for 
85.27 	purses by this formula is increased to 30 percent on amounts between $125,000,000 and 
85.28 	$150,000,000 wagered; 40 percent on amounts between $150,000,000 and $175,000,000 
85.29 	wagered; and 50 percent on amounts in excess of $175,000,000 wagered. In lieu of 
85.30 	the eight percent deduction, A deduction as agreed to between the licensee and the 
85.31 	horsepersons' organization representing the majority of horsepersons racing at the licensee's 
85.32 	class A facility during the preceding 12 months, is allowed after December 31, 2004.
85.33 	The commission may by rule provide for the administration and enforcement of 
85.34 	this subdivision. The deductions for payment to the sending out-of-state racetrack must 
85.35 	be actual, except that when there exists any overlap of ownership, control, or interest 
86.1 	between the sending out-of-state racetrack and the receiving licensee, the deduction 
86.2 	must not be greater than three percent unless agreed to between the licensee and the 
86.3 	horsepersons' organization representing the majority of horsepersons racing the breed 
86.4 	racing the majority of races during the existing racing meeting or, if outside of the racing 
86.5 	season, during the most recent racing meeting.
86.6 	In lieu of the amount the licensee must pay to the commission for deposit in the 
86.7 	Minnesota breeders fund under section 240.15, subdivision 1, The licensee shall pay to the 
86.8 	commission for deposit in the Minnesota breeders fund 5-1/2 percent of the takeout from 
86.9 	all pari-mutuel pools generated by wagering at the licensee's facility on full racing card 
86.10 	simulcasts of races not conducted in this state.
86.11 	(b) From the money set aside for purses, the licensee shall pay to the horseperson's 
86.12 	organization representing the majority of the horsepersons racing the breed involved 
86.13 	and contracting with the licensee with respect to purses and the conduct of the racing 
86.14 	meetings and providing representation to its members, an amount as may be determined 
86.15 	by agreement by the licensee and the horsepersons' organization sufficient to provide 
86.16 	benevolent programs, benefits, and services for horsepersons and their on-track employees, 
86.17 	an amount, sufficient to perform these services, as may be determined by agreement by 
86.18 	the licensee and the horseperson's organization. The amount paid may be deducted only 
86.19 	from the money set aside for purses to be paid in races for the breed represented by the 
86.20 	horseperson's organization. With respect to racing meetings where more than one breed 
86.21 	is racing, the licensee may contract independently with the horseperson's organization 
86.22 	representing each breed racing.
86.23 	(c) Notwithstanding sections 325D.49 to 325D.66, a horseperson's organization 
86.24 	representing the majority of the horsepersons racing a breed at a meeting, and the members 
86.25 	thereof, may agree to withhold horses during a meeting.
86.26 	(d) Money set aside for purses from wagering, during the racing season, on 
86.27 	simulcasts must be used for purses for live races conducted at the licensee's class A facility 
86.28 	during the same racing season, over and above the 8.4 percent purse requirement or any 
86.29 	higher requirement to which the parties agree, for races conducted in this state. Money 
86.30 	set aside for purses from wagering, outside of the racing season, on simulcasts must be 
86.31 	for purses for live races conducted at the licensee's class A facility during the next racing 
86.32 	season, over and above the 8.4 percent purse requirement or any higher requirement to 
86.33 	which the parties agree, for races conducted in this state.
86.34 	(e) (d) Money set aside for purses from wagering on simulcasts must be used for 
86.35 	purses for live races involving the same breed involved in the simulcast except that money 
86.36 	set aside for purses and payments to the breeders fund from wagering on full racing card 
87.1 	simulcasts of races not conducted in this state, occurring during a live mixed meet, must 
87.2 	be allotted to the purses and breeders fund for each breed participating in the mixed meet 
87.3 	as agreed upon by the breed organizations participating in the live mixed meet. The 
87.4 	agreement shall be in writing and filed with the commission prior to the first day of the live 
87.5 	mixed meet. In the absence of a written agreement filed with the commission, the money 
87.6 	set aside for purses and payments to the breeders fund from wagering on simulcasts, 
87.7 	occurring during a live mixed meet, shall be allotted to each breed participating in the live 
87.8 	mixed meet  in the same proportion that the number of live races run by each breed bears 
87.9 	to the total number of live races conducted during the period of the mixed meet.
87.10 	(f) (e) The allocation of money set aside for purses to particular racing meets may be 
87.11 	adjusted, relative to overpayments and underpayments, by contract between the licensee 
87.12 	and the horsepersons' organization representing the majority of horsepersons racing the 
87.13 	breed involved at the licensee's facility.
87.14 	(g) (f) Subject to the provisions of this chapter, money set aside from pari-mutuel 
87.15 	pools for purses must be for the breed involved in the race that generated the pool, except 
87.16 	that if the breed involved in the race generating the pari-mutuel pool is not racing in the 
87.17 	current racing meeting, or has not raced within the preceding 12 months at the licensee's 
87.18 	class A facility, money set aside for purses may be distributed proportionately to those 
87.19 	breeds that have run during the preceding 12 months or paid to the commission and 
87.20 	used for purses or to promote racing for the breed involved in the race generating the 
87.21 	pari-mutuel pool, or both, in a manner prescribed by the commission.
87.22 	(h) (g) This subdivision does not apply to a class D licensee.

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

87.24 	Sec. 14. Minnesota Statutes 2014, section 240.13, subdivision 6, is amended to read:
87.25 		Subd. 6.Simulcasting. (a) The commission may permit an authorized licensee to 
87.26 	conduct simulcasting at the licensee's facility on any day authorized by the commission. 
87.27 	All simulcasts must comply with the Interstate Horse Racing Act of 1978, United States 
87.28 	Code, title 15, sections 3001 to 3007.
87.29 	(b) The commission may not authorize any day for simulcasting at a class A facility 
87.30 	during the racing season, and a licensee may not be allowed to transmit out-of-state 
87.31 	telecasts of races the licensee conducts, unless the licensee has obtained the approval of 
87.32 	the horsepersons' organization representing the majority of the horsepersons racing the 
87.33 	breed involved at the licensed racetrack during the preceding 12 months. In the case of 
87.34 	a class A facility licensed under section 240.06, subdivision 5a, the approval applicable 
87.35 	to the first year of the racetrack's operation may be obtained from the horsepersons' 
88.1 	organization that represents the majority of horsepersons who will race the breed involved 
88.2 	at the licensed racetrack during the first year of the racetrack's operation.
88.3 	(c) The licensee may pay fees and costs to an entity transmitting a telecast of a 
88.4 	race to the licensee for purposes of conducting pari-mutuel wagering on the race. The 
88.5 	licensee may deduct fees and costs related to the receipt of televised transmissions from a 
88.6 	pari-mutuel pool on the televised race, provided that one-half of any amount recouped in 
88.7 	this manner must be added to the amounts required to be set aside for purses.
88.8 	(d) With the approval of the commission and subject to the provisions of this 
88.9 	subdivision, a licensee may transmit telecasts of races it conducts, for wagering purposes, 
88.10 	to locations outside the state, and the commission may allow this to be done on a 
88.11 	commingled pool basis.
88.12 	(e) Except as otherwise provided in this section, simulcasting may be conducted on a 
88.13 	separate commingled pool basis or, with the approval of the commission, on a commingled 
88.14 	separate pool basis. All provisions of law governing pari-mutuel betting apply to 
88.15 	simulcasting except as otherwise provided in this subdivision or in the commission's 
88.16 	rules. If pools are commingled, wagering at the licensed facility must be on equipment 
88.17 	electronically linked with the equipment at the licensee's class A facility or with the 
88.18 	sending racetrack via the totalizator computer at the licensee's class A facility. Subject to 
88.19 	the approval of the commission, the types of betting, takeout, and distribution of winnings 
88.20 	on commingled pari-mutuel pools are those in effect at the sending racetrack. Breakage 
88.21 	for pari-mutuel pools on a televised race must be calculated in accordance with the law or 
88.22 	rules governing the sending racetrack for these pools, and must be distributed in a manner 
88.23 	agreed to between the licensee and the sending racetrack. Notwithstanding subdivision 7 
88.24 	and section 240.15, subdivision 5, the commission may approve procedures governing the 
88.25 	definition and disposition of unclaimed tickets that are consistent with the law and rules 
88.26 	governing unclaimed tickets at the sending racetrack. For the purposes of this section, 
88.27 	"sending racetrack" is either the racetrack outside of this state where the horse race is 
88.28 	conducted or, with the consent of the racetrack, an alternative facility that serves as the 
88.29 	racetrack for the purpose of commingling pools.
88.30 	(f) Except as otherwise provided in section 240.06, subdivision 5b, paragraph (2), 
88.31 	if there is more than one class B licensee conducting racing within the seven-county 
88.32 	metropolitan area, simulcasting may be conducted only on races run by a breed that ran at 
88.33 	the licensee's class A facility within the 12 months preceding the event.

88.34 	Sec. 15. Minnesota Statutes 2014, section 240.135, is amended to read:
88.35 	240.135 CARD CLUB REVENUE.
89.1 	(a) From the amounts received from charges authorized under section 240.30, 
89.2 	subdivision 4, the licensee shall set aside the amounts specified in this section to be 
89.3 	used for purse payments. These amounts are in addition to the breeders fund and purse 
89.4 	requirements set forth elsewhere in this chapter.
89.5 	(1) For amounts between zero and $6,000,000, the licensee shall set aside not less 
89.6 	than ten percent to be used as purses.
89.7 	(2) For amounts in excess of $6,000,000, the licensee shall set aside not less than 
89.8 	14 percent to be used as purses.
89.9 	(b) From all amounts set aside under paragraph (a), the licensee shall set aside 
89.10 	ten percent to be deposited in the breeders fund. The licensee and the horseperson's 
89.11 	organization representing the majority of horsepersons who have raced at the racetrack 
89.12 	during the preceding 12 months may negotiate percentages different from those stated in 
89.13 	this section if the agreement is in writing and filed with the Racing Commission.
89.14 	(c) It is the intent of the legislature that the proceeds of the card playing activities 
89.15 	authorized by this chapter be used to improve the horse racing industry by improving purses. 
89.16 	The licensee and the horseperson's organization representing the majority of horsepersons 
89.17 	who have raced at the racetrack during the preceding 12 months may negotiate percentages 
89.18 	that exceed those stated in this section if the agreement is in writing and filed with the 
89.19 	commission. The commission shall annually review the financial details of card playing 
89.20 	activities and determine if the present use of card playing proceeds is consistent with the 
89.21 	policy established by this paragraph. If the commission determines that the use of the 
89.22 	proceeds does not comply with the policy set forth herein, then the commission shall direct 
89.23 	the parties to make the changes necessary to ensure compliance. If these changes require 
89.24 	legislation, the commission shall make the appropriate recommendations to the legislature.

89.25 	Sec. 16. Minnesota Statutes 2014, section 240.15, subdivision 1, is amended to read:
89.26 		Subdivision 1.Taxes imposed. (a) There is imposed a tax at the rate of six percent 
89.27 	of the amount in excess of $12,000,000 annually withheld from all pari-mutuel pools by 
89.28 	the licensee, including breakage and amounts withheld under section 240.13, subdivision 
89.29 	4. For the purpose of this subdivision, "annually" is the period from July 1 to June 30 of 
89.30 	the next year.
89.31 	In addition to the above tax, the licensee must designate and pay to the commission 
89.32 	a tax of one percent of the total amount bet on each racing day handle for live races 
89.33 	conducted at a class A facility, for deposit in the Minnesota breeders fund.
89.34 	The taxes imposed by this clause must be paid from the amounts permitted to be 
89.35 	withheld by a licensee under section 240.13, subdivision 4.
90.1 	(b) The commission may impose an admissions tax of not more than ten cents on 
90.2 	each paid admission at a licensed racetrack on a racing day if:
90.3 	(1) the tax is requested by a local unit of government within whose borders the 
90.4 	track is located;
90.5 	(2) a public hearing is held on the request; and
90.6 	(3) the commission finds that the local unit of government requesting the tax is in 
90.7 	need of its revenue to meet extraordinary expenses caused by the racetrack.

90.8 	Sec. 17. Minnesota Statutes 2014, section 240.15, subdivision 6, is amended to read:
90.9 		Subd. 6.Disposition of proceeds; account. The commission shall distribute all 
90.10 	money received under this section, and all money received from license fees and fines it 
90.11 	collects, according to this subdivision. All money designated for deposit in the Minnesota 
90.12 	breeders fund must be paid into that fund for distribution under section 240.18 except that 
90.13 	all money generated by full racing card simulcasts must be distributed as provided in 
90.14 	section 240.18, subdivisions 2, paragraph (d), clauses (1), (2), and (3); and 3. Revenue 
90.15 	from an admissions tax imposed under subdivision 1 must be paid to the local unit of 
90.16 	government at whose request it was imposed, at times and in a manner the commission 
90.17 	determines. Taxes received under this section and fines collected under section 240.22
90.18 	must be paid to the commissioner of management and budget for deposit in the general 
90.19 	fund. All revenues from licenses and other fees imposed by the commission must be 
90.20 	deposited in the state treasury and credited to a racing and card playing regulation account 
90.21 	in the special revenue fund. Receipts in this account are available for the operations of the 
90.22 	commission up to the amount authorized in biennial appropriations from the legislature.

90.23 	Sec. 18. Minnesota Statutes 2014, section 240.16, subdivision 1, is amended to read:
90.24 		Subdivision 1.Powers and duties. All horse races run at a licensed racetrack must 
90.25 	be presided over by a board of three stewards, who must be appointees of the commission or 
90.26 	persons approved by it. The commission shall designate one steward as chair. At least two 
90.27 	stewards for all races either shall be employees of the commission who shall serve in the 
90.28 	unclassified service, or shall be under contract with the commission to serve as stewards. 
90.29 	The commission may delegate the following duties and powers to a board of stewards:
90.30 	(a) to ensure that races are run in accordance with the commission's rules;
90.31 	(b) to supervise the conduct of racing to ensure the integrity of the sport;
90.32 	(c) to settle disputes arising from the running of horse races, and to certify official 
90.33 	results;
91.1 	(d) to impose on licensees, for violation of law or commission rules, fines not 
91.2 	exceeding $2,000 $5,000 and license suspensions not exceeding 90 days;
91.3 	(e) to recommend to the commission where warranted penalties in excess of those 
91.4 	in clause (d);
91.5 	(f) to otherwise enforce the laws and rules of racing; and
91.6 	(g) to perform other duties and have other powers assigned by the commission.

91.7 	Sec. 19. Minnesota Statutes 2014, section 240.22, is amended to read:
91.8 	240.22 FINES.
91.9 	(a) The commission shall by rule establish a graduated schedule of civil fines for 
91.10 	violations of laws related to horse racing or of the commission's rules. The schedule 
91.11 	must include minimum and maximum fines for each violation and be based on and 
91.12 	reflect the culpability, frequency and severity of the violator's actions. The commission 
91.13 	may impose a fine from this schedule on a licensee for a violation of those rules or laws 
91.14 	relating to horse racing. The fine is in addition to any criminal penalty imposed for the 
91.15 	same violation. Fines imposed by the commission must be paid to the commission and 
91.16 	except as provided in paragraph (b), forwarded to the commissioner of management and 
91.17 	budget for deposit in the general fund. A fine in excess of $2,000 $5,000 is a contested 
91.18 	case under the Administrative Procedure Act.
91.19 	(b) If the commission is the prevailing party in a contested case proceeding, the 
91.20 	commission may recover, from amounts to be forwarded under paragraph (a), reasonable 
91.21 	attorney fees and costs associated with the contested case.

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

91.23 	Sec. 20. Minnesota Statutes 2014, section 240.23, is amended to read:
91.24 	240.23 RULEMAKING AUTHORITY.
91.25 	The commission has the authority, in addition to all other rulemaking authority 
91.26 	granted elsewhere in this chapter to promulgate rules governing:
91.27 	(a) the conduct of horse races held at licensed racetracks in Minnesota, including but 
91.28 	not limited to the rules of racing, standards of entry, operation of claiming races, filing and 
91.29 	handling of objections, carrying of weights, and declaration of official results;
91.30 	(b) wire wired and wireless communications between the premises of a licensed 
91.31 	racetrack and any place outside the premises;
91.32 	(c) information on horse races which is sold on the premises of a licensed racetrack;
92.1 	(d) liability insurance which it may require of all class A, class B, and class D 
92.2 	licensees;
92.3 	(e) the auditing of the books and records of a licensee by an auditor employed 
92.4 	or appointed by the commission;
92.5 	(f) emergency action plans maintained by licensed racetracks and their periodic 
92.6 	review;
92.7 	(g) safety, security, and sanitation of stabling facilities at licensed racetracks;
92.8 	(h) entry fees and other funds received by a licensee in the course of conducting 
92.9 	racing which the commission determines must be placed in escrow accounts;
92.10 	(i) affirmative action in employment and contracting by class A, class B, and class D 
92.11 	licensees; and
92.12 	(j) procedures for the sampling and testing of any horse that is eligible to race in 
92.13 	Minnesota for substances or practices that are prohibited by law or rule; and
92.14 	(j) (k) any other aspect of horse racing or pari-mutuel betting which in its opinion 
92.15 	affects the integrity of racing or the public health, welfare, or safety.
92.16 	Rules of the commission are subject to chapter 14, the Administrative Procedure Act.

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

92.18 	Sec. 21. Minnesota Statutes 2014, section 364.09, is amended to read:
92.19 	364.09 EXCEPTIONS.
92.20 	(a) This chapter does not apply to the licensing process for peace officers; to law 
92.21 	enforcement agencies as defined in section 626.84, subdivision 1, paragraph (f); to fire 
92.22 	protection agencies; to eligibility for a private detective or protective agent license; to the 
92.23 	licensing and background study process under chapters 245A and 245C; to the licensing 
92.24 	and background investigation process under chapter 240; to eligibility for school bus 
92.25 	driver endorsements; to eligibility for special transportation service endorsements; to 
92.26 	eligibility for a commercial driver training instructor license, which is governed by section 
92.27 	171.35 and rules adopted under that section; to emergency medical services personnel, or 
92.28 	to the licensing by political subdivisions of taxicab drivers, if the applicant for the license 
92.29 	has been discharged from sentence for a conviction within the ten years immediately 
92.30 	preceding application of a violation of any of the following:
92.31 	(1) sections 609.185 to 609.2114, 609.221 to 609.223, 609.342 to 609.3451, or 
92.32 	617.23, subdivision 2 or 3; or Minnesota Statutes 2012, section 609.21;
92.33 	(2) any provision of chapter 152 that is punishable by a maximum sentence of 
92.34 	15 years or more; or
93.1 	(3) a violation of chapter 169 or 169A involving driving under the influence, leaving 
93.2 	the scene of an accident, or reckless or careless driving.
93.3 	This chapter also shall not apply to eligibility for juvenile corrections employment, where 
93.4 	the offense involved child physical or sexual abuse or criminal sexual conduct.
93.5 	(b) This chapter does not apply to a school district or to eligibility for a license 
93.6 	issued or renewed by the Board of Teaching or the commissioner of education.
93.7 	(c) Nothing in this section precludes the Minnesota Police and Peace Officers 
93.8 	Training Board or the state fire marshal from recommending policies set forth in this 
93.9 	chapter to the attorney general for adoption in the attorney general's discretion to apply to 
93.10 	law enforcement or fire protection agencies.
93.11 	(d) This chapter does not apply to a license to practice medicine that has been denied 
93.12 	or revoked by the Board of Medical Practice pursuant to section 147.091, subdivision 1a.
93.13 	(e) This chapter does not apply to any person who has been denied a license to 
93.14 	practice chiropractic or whose license to practice chiropractic has been revoked by the 
93.15 	board in accordance with section 148.10, subdivision 7.
93.16 	(f) This chapter does not apply to any license, registration, or permit that has 
93.17 	been denied or revoked by the Board of Nursing in accordance with section 148.261, 
93.18 	subdivision 1a.
93.19 	(g) This chapter does not supersede a requirement under law to conduct a criminal 
93.20 	history background investigation or consider criminal history records in hiring for 
93.21 	particular types of employment.

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

93.27 	Sec. 23.  REPEALER.
 93.28 	Minnesota Statutes 2014, section 240.01, subdivisions 12 and 23, are repealed.