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, and military affairs and 
1.5 	veterans affairs; creating an ethnic councils account; specifying how legislative 
1.6 	and congressional districts must be drawn; evaluating economic development 
1.7 	incentive programs; transferring responsibility fiscal notes, local impact notes, or 
1.8 	revenue estimates to the legislative auditor; specifying county audits by the state 
1.9 	auditor; modifying campaign finance provisions; defining substantial economic 
1.10 	impact for rulemaking; changing rulemaking provisions; requiring the legislative 
1.11 	auditor to conduct an impact analysis on certain rules; establishing three ethnic 
1.12 	councils; requiring a tracking list of agency projects; allowing prepay for certain 
1.13 	software and information technology hosting services; changing state budget 
1.14 	requirements; limiting a fee or fine increase to ten percent in a biennium; 
1.15 	providing free rehearsal and storage space for the state band; modifying notice 
1.16 	provisions for state construction and remodeling plans; providing reimbursement 
1.17 	for reasonable accommodations; modifying grant agreement provisions; making 
1.18 	changes to provisions governing veteran-owned small businesses; changing 
1.19 	provisions governing the Office of MN.IT Services; limiting the number of 
1.20 	full-time equivalent executive branch agency employees; establishing the 
1.21 	healthy eating, here at home program; establishing expedited and temporary 
1.22 	licensing for former and current military members for certain occupations; 
1.23 	adjusting certain barber board fees for members of the military; modifying 
1.24 	provisions governing the National Guard; modifying the Veterans Preference 
1.25 	Act; designating an Honor and Remember flag; changing provisions governing 
1.26 	pari-mutuel horse racing; changing a fee provision for federal tax liens; changing 
1.27 	a contracting provision for the Office of the Commissioner of Iron Range 
1.28 	resources and rehabilitation; changing certain requirements for corporations; 
1.29 	modifying provisions for accountants; changing a farm product lien; adding an 
1.30 	exception to the rehabilitation of criminal offenders provisions; limiting railroad 
1.31 	condemnation powers over certain properties; providing that school employees 
1.32 	and districts are subject to certain group health insurance requirements; changing 
1.33 	provisions governing the Metropolitan Council; designating the salary for 
1.34 	the chair of the Metropolitan Council; limiting the salary increase for agency 
1.35 	heads; establishing the Legislative Surrogacy Commission; prohibiting state 
1.36 	funds, tax expenditures, or state indebtedness to fund a major league soccer 
1.37 	stadium; limiting compensation for employees in the managerial plan; limiting 
1.38 	expenditures for advertising; specifying debt service on a certain parking 
1.39 	ramp financing; specifying terms for members of the Metropolitan Council; 
2.1 	requiring reports;amending Minnesota Statutes 2014, sections 3.971, by 
2.2 	adding a subdivision; 3.979, subdivision 3; 3.98; 3.987, subdivision 1; 10A.01, 
2.3 	subdivision 26; 10A.105, subdivision 1; 10A.15, subdivision 1; 10A.245, 
2.4 	subdivision 2; 10A.257, subdivision 1; 10A.38; 14.02, by adding a subdivision; 
2.5 	14.05, subdivisions 1, 2; 14.116; 14.127; 14.131; 14.388, subdivision 2; 14.389, 
2.6 	subdivision 2; 14.44; 14.45; 16A.065; 16A.103, by adding a subdivision; 16A.11, 
2.7 	by adding subdivisions; 16A.1283; 16B.24, by adding a subdivision; 16B.335, 
2.8 	subdivision 1; 16B.371; 16B.97, subdivision 1, by adding a subdivision; 16C.03, 
2.9 	subdivision 16; 16C.16, subdivision 6a; 16C.19; 16E.01; 16E.016; 16E.0465; 
2.10 	16E.14, subdivision 3; 16E.145; 16E.19, by adding a subdivision; 148.57, by 
2.11 	adding a subdivision; 148.624, subdivision 5; 148B.33, by adding a subdivision; 
2.12 	148B.53, by adding a subdivision; 148B.5301, by adding a subdivision; 
2.13 	148F.025, by adding a subdivision; 153.16, subdivisions 1, 4; 154.003; 154.11, 
2.14 	subdivision 3; 190.19, subdivision 2a; 192.38, subdivision 1; 192.501, by adding 
2.15 	a subdivision; 197.46; 211B.37; 240.01, subdivision 22, by adding subdivisions; 
2.16 	240.011; 240.03; 240.08, subdivisions 2, 4, 5; 240.10; 240.13, subdivisions 5, 
2.17 	6; 240.135; 240.15, subdivisions 1, 6; 240.16, subdivision 1; 240.22; 240.23; 
2.18 	272.484; 298.22, subdivision 1; 303.19; 304A.301, subdivisions 1, 5, 6, by 
2.19 	adding a subdivision; 326A.01, subdivisions 2, 12, 13a, 15, 16; 326A.02, 
2.20 	subdivisions 3, 5; 326A.05, subdivisions 1, 3; 326A.10; 336A.09, subdivision 
2.21 	1; 364.09; 471.6161, subdivision 8; 473.123, subdivisions 2a, 3, 4; 473J.07, 
2.22 	subdivision 3; Laws 2013, chapter 142, article 1, section 10; Laws 2015, chapter 
2.23 	3, section 4; proposing coding for new law in Minnesota Statutes, chapters 2; 3; 
2.24 	6; 15; 16A; 16B; 16E; 43A; 138; 197; 383B; repealing Minnesota Statutes 2014, 
2.25 	sections 3.886; 3.9223; 3.9225; 3.9226, subdivisions 1, 2, 3, 4, 5, 6, 7; 6.48; 
2.26 	10A.25, subdivisions 1, 2, 2a, 3, 3a, 5, 10; 10A.255, subdivisions 1, 3; 10A.27, 
2.27 	subdivision 11; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 
2.28 	10a, 10b, 11; 10A.315; 10A.321; 10A.322, subdivisions 1, 2; 10A.323; 10A.324, 
2.29 	subdivisions 1, 3; 240.01, subdivisions 12, 23; 349A.07, subdivision 6; 375.23; 
2.30 	Minnesota Rules, parts 4503.1400, subparts 2, 3, 5, 6, 7, 8, 9; 4503.1450.
2.31 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.32 	ARTICLE 1
2.33 	STATE GOVERNMENT APPROPRIATIONS

2.34	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 	
2.35 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.36 	agencies and for the purposes specified in this article. The appropriations are from the 
2.37 	general fund, or another named fund, and are available for the fiscal years indicated 
2.38 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
2.39 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
2.40 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
2.41 	year 2017. "The biennium" is fiscal years 2016 and 2017. 

2.42				APPROPRIATIONS
	
2.43				Available for the Year
	
2.44				Ending June 30
	
2.45					2016
		2017

2.46	Sec. 2. LEGISLATURE

3.1
3.2	Subdivision 1.Total 
Appropriation
 			$
	69,160,000
		67,595,000

3.3	Appropriations by Fund
	
3.4		2016
	2017
	
3.5	General
	67,032,000
	67,467,000
	
3.6	Health Care Access
	128,000
	128,000
	
3.7	Special Revenue
	2,000,000
	0
	
3.8 	The amounts that may be spent for each 
3.9 	purpose are specified in the following 
3.10 	subdivisions.

3.11	Subd. 2.Senate
 		21,501,000
		21,501,000
	
3.12 	$1,723,000 of the senate carryforward 
3.13 	balance shall cancel to the general fund on 
3.14 	July 1, 2015.

3.15	Subd. 3.House of Representatives
 		28,998,000
		28,998,000
	
3.16 	During the biennium ending June 30, 2017, 
3.17 	any revenues received by the house of 
3.18 	representatives from voluntary donations 
3.19 	to support broadcast or print media are 
3.20 	appropriated to the house of representatives.
3.21 	$3,938,000 of the house carryforward 
3.22 	balance shall cancel to the general fund on 
3.23 	July 1, 2015.

3.24	Subd. 4.Legislative Coordinating Commission
 		18,661,000
		17,096,000

3.25	Appropriations by Fund
	
3.26	General
	16,533,000
	16,968,000
	
3.27	Health Care Access 
	128,000
	128,000
	
3.28	Special Revenue
	2,000,000
	0
	
3.29 	$1,567,000 of the Legislative Coordinating 
3.30 	Commission carryforward balance and the 
3.31 	Revisor of Statutes carryforward balance 
3.32 	shall cancel to the general fund on July 1, 
3.33 	2015.
4.1 	$7,132,000 each year from the general fund 
4.2 	is to the Office of the Legislative Auditor. 
4.3 	The auditor is requested to do an evaluation 
4.4 	of Minnesota veterans homes.
4.5 	$435,000 in fiscal year 2017 is for the 
4.6 	revisor's administrative rules system.
4.7 	$595,000 each year is for the Office of the 
4.8 	Revisor of Statutes to maintain and improve 
4.9 	information technology services.
4.10 	$10,000 each year is for purposes of the 
4.11 	legislators' forum, through which Minnesota 
4.12 	legislators meet with counterparts from 
4.13 	South Dakota, North Dakota, and Manitoba 
4.14 	to discuss issues of mutual concern.
4.15 	$2,000,000 is transferred from the state 
4.16 	employee group insurance trust fund to a 
4.17 	rulemaking account in the special revenue 
4.18 	fund.
4.19 	$2,000,000 for the biennium ending June 30, 
4.20 	2017, is appropriated from the rulemaking 
4.21 	account in the special revenue fund to the 
4.22 	legislative auditor to:
4.23 	(1) reimburse executive agencies for costs 
4.24 	associated with determining if proposed 
4.25 	rules have substantial economic impact and 
4.26 	for costs of peer review advisory panels 
4.27 	for proposed rules that have substantial 
4.28 	economic impact; and
4.29 	(2) reimburse the legislative auditor for costs 
4.30 	associated with this process.

4.31
4.32	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,134,000
	$
	3,134,000
	
4.33 	(a) This appropriation is to fund the Office of 
4.34 	the Governor and Lieutenant Governor.
5.1 	(b) $19,000 the first year and $19,000 the 
5.2 	second year are for necessary expenses in the 
5.3 	normal performance of the Governor's and 
5.4 	Lieutenant Governor's duties for which no 
5.5 	other reimbursement is provided.
5.6 	(c) During the biennium ending June 30, 
5.7 	2017, the Office of the Governor may not 
5.8 	receive payments of more than $805,000 
5.9 	each fiscal year from other executive 
5.10 	agencies to support personnel costs incurred 
5.11 	by the office. By September 1 of each year, 
5.12 	the commissioner of management and budget 
5.13 	shall report to the chairs and ranking minority 
5.14 	members of the senate State Departments 
5.15 	and Veterans Affairs Budget Division and the 
5.16 	house of representatives State Government 
5.17 	Finance Committee any personnel costs 
5.18 	incurred by the Offices of the Governor and 
5.19 	Lieutenant Governor that were supported 
5.20 	by appropriations to other agencies during 
5.21 	the previous fiscal year. The Office of the 
5.22 	Governor shall inform the chairs and ranking 
5.23 	minority members of the committees before 
5.24 	initiating any interagency agreements.

5.25	Sec. 4. STATE AUDITOR
 	$
	1,982,000
	$
	1,982,000

5.26	Sec. 5. ATTORNEY GENERAL
 	$
	22,897,000
	$
	22,897,000

5.27	Appropriations by Fund
	
5.28		2016
	2017
	
5.29	General
	20,679,000
	20,679,000
	
5.30
5.31	State Government 
Special Revenue
	1,823,000
	1,823,000
	
5.32	Environmental
	145,000
	145,000
	
5.33	Remediation
	250,000
	250,000
	
5.34 	Of this appropriation, $65,000 in the first 
5.35 	year and $65,000 in the second year are 
6.1 	from the general fund for transfer to the 
6.2 	commissioner of public safety for a grant to 
6.3 	the Minnesota County Attorneys Association 
6.4 	for prosecutor and law enforcement training.

6.5	Sec. 6. SECRETARY OF STATE
 	$
	6,198,000
	$
	6,198,000
	
6.6 	$420,000 the first year and $440,000 the 
6.7 	second year are for the Safe at Home 
6.8 	program.
6.9 	Any funds available in the account 
6.10 	established in Minnesota Statutes, section 
6.11 	5.30, pursuant to the Help America Vote Act, 
6.12 	are appropriated for the purposes and uses 
6.13 	authorized by federal law.

6.14
6.15	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	893,000
	$
	893,000
	
6.16 	(a) All unspent funds, estimated to be 
6.17 	$150,000, from the Web site redevelopment 
6.18 	project appropriation under Laws 2013, 
6.19 	chapter 142, article 1, section 7, are canceled 
6.20 	to the general fund on June 30, 2015.
6.21 	(b) $150,000 in fiscal year 2016 is 
6.22 	appropriated to the Campaign Finance 
6.23 	and Public Disclosure Board to complete 
6.24 	redevelopment of its Web site. This 
6.25 	appropriation is available until June 30, 2017.
6.26 	(c) By January 15, 2016, the director of the 
6.27 	Campaign Finance and Public Disclosure 
6.28 	Board shall report to the chairs and ranking 
6.29 	minority members of the senate State 
6.30 	Departments and Veterans Affairs Budget 
6.31 	Division and the house of representatives 
6.32 	State Government Finance Committee on the 
6.33 	status of the Web site redevelopment project. 
6.34 	The report shall include a budget detailing 
7.1 	total dollars to be spent, completion date of 
7.2 	the project, and dollars expended to date.

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

7.4	Sec. 9. ADMINISTRATIVE HEARINGS
 	$
	7,627,000
	$
	7,627,000

7.5	Appropriations by Fund
	
7.6		2016
	2017
	
7.7	General
	377,000
	377,000
	
7.8
7.9	Workers' 
Compensation
	7,250,000
	7,250,000
	
7.10 	Campaign Violations Hearings. $115,000 
7.11 	each year is appropriated from the general 
7.12 	fund for the cost of considering complaints 
7.13 	filed under Minnesota Statutes, section 
7.14 	211B.32. These amounts may be spent in 
7.15 	either year of the biennium.
7.16 	$6,000 in fiscal year 2016 and $6,000 in 
7.17 	fiscal year 2017 are appropriated from the  
7.18 	general fund to the Office of Administrative 
7.19 	Hearings for the cost of considering data  
7.20 	practices complaints filed under Minnesota  
7.21 	Statutes, section 13.085. These amounts 
7.22 	may be used in either year of the biennium. 
7.23 	$6,000 is added to the agency's base to be  
7.24 	available for the biennium.

7.25	Sec. 10. MN.IT SERVICES
 	$
	2,431,000
	$
	2,431,000
	
7.26 	During the biennium ending June 30, 2017, 
7.27 	MN.IT Services must not charge fees to a 
7.28 	public noncommercial educational television 
7.29 	broadcast station eligible for funding under 
7.30 	Minnesota Statutes, chapter 129D, for 
7.31 	access to the state broadcast infrastructure. 
7.32 	If the access fees not charged to public 
7.33 	noncommercial educational television 
7.34 	broadcast stations total more than $400,000 
8.1 	for the biennium, the office may charge for 
8.2 	access fees in excess of these amounts.
8.3 	The commissioner of management and 
8.4 	budget is authorized to provide cash flow 
8.5 	assistance of up to $110,000,000 from the 
8.6 	special revenue fund or other statutory 
8.7 	general funds, as defined in Minnesota 
8.8 	Statutes, section 16A.671, subdivision 
8.9 	3, paragraph (a), to the Office of MN.IT 
8.10 	Services for the purpose of managing 
8.11 	revenue and expenditure differences during 
8.12 	the initial phases of IT consolidation. These 
8.13 	funds shall be repaid with interest by the end 
8.14 	of the fiscal year 2017 closing period.

8.15	Sec. 11. ADMINISTRATION

8.16	Subdivision 1.Total Appropriation
 	$
	19,781,000
	$
	19,191,000
	
8.17 	The amounts that may be spent for each 
8.18 	purpose are specified in the following 
8.19 	subdivisions.

8.20	Subd. 2.Government and Citizen Services
 		7,265,000
		7,095,000
	
8.21 	$210,000 the first year and $40,000 the 
8.22 	second year are for increased information 
8.23 	technology associated with supporting small 
8.24 	business purchasing programs.
8.25 	$74,000 the first year and $74,000 the second 
8.26 	year are for the Council on Developmental 
8.27 	Disabilities.

8.28	Subd. 3.Strategic Management Services
 		1,789,000
		1,789,000

8.29	Subd. 4.Fiscal Agent
 		10,727,000
		10,307,000
	
8.30 	The appropriations under this section are to 
8.31 	the commissioner of administration for the 
8.32 	purposes specified.
9.1 	In-Lieu of Rent. $7,488,000 the first year 
9.2 	and $7,488,000 the second year are for 
9.3 	space costs of the legislature and veterans 
9.4 	organizations, ceremonial space, and 
9.5 	statutorily free space.
9.6 	Relocation Expenses. $1,284,000 the first 
9.7 	year and $864,000 the second year are for 
9.8 	rent loss and relocation expenses related to 
9.9 	the Capitol renovation project. Relocation 
9.10 	expenses include only moving of art, fixtures, 
9.11 	renovation supplies, and similar materials, 
9.12 	and may not be used for moving Senators, 
9.13 	Senate staff, and related offices and supplies. 
9.14 	This is a onetime appropriation.
9.15 	Public Broadcasting. (a) $1,161,000 the 
9.16 	first year and $1,161,000 the second year are 
9.17 	for matching grants for public television.
9.18 	(b) $200,000 the first year and $200,000 
9.19 	the second year are for public television 
9.20 	equipment grants.
9.21 	(c) The equipment or matching grants in 
9.22 	paragraphs (a) and (b) must be allocated 
9.23 	after considering the recommendations of the 
9.24 	Minnesota Public Television Association.
9.25 	(d) $287,000 the first year and $287,000 the 
9.26 	second year are for community service grants 
9.27 	to public educational radio stations. This 
9.28 	appropriation may be used to disseminate 
9.29 	emergency information in foreign languages.
9.30 	(e) $100,000 the first year and $100,000 
9.31 	the second year are for equipment grants 
9.32 	to public educational radio stations. This 
9.33 	appropriation may be used for the repair, 
9.34 	rental, and purchase of equipment including 
9.35 	equipment under $500.
10.1 	(f) The grants in paragraphs (d) and (e) 
10.2 	must be allocated after considering the 
10.3 	recommendations of the Association of 
10.4 	Minnesota Public Education Radio Stations 
10.5 	under Minnesota Statutes, section 129D.14. 
10.6 	As a condition of receiving grants under 
10.7 	paragraphs (d) and (e), the Association of 
10.8 	Minnesota Public Education Radio Stations 
10.9 	must agree that it will not take any steps 
10.10 	leading to the operation of new stations 
10.11 	unless specifically authorized by a future law.
10.12 	(g) $207,000 the first year and $207,000 
10.13 	the second year are for equipment grants 
10.14 	to Minnesota Public Radio, Inc., including 
10.15 	upgrades to Minnesota's Emergency Alert 
10.16 	and AMBER Alert Systems.
10.17 	(h) Any unencumbered balance remaining 
10.18 	the first year for grants to public television or 
10.19 	radio stations does not cancel and is available 
10.20 	for the second year.

10.21
10.22
10.23	Sec. 12. CAPITOL AREA 
ARCHITECTURAL AND PLANNING 
BOARD
 	$
	325,000
	$
	325,000

10.24
10.25	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	18,757,000
	$
	18,757,000
	
10.26 	$156,000 the first year and $156,000 the 
10.27 	second year are to develop and implement 
10.28 	a return on taxpayer investment (ROTI) 
10.29 	methodology using the Pew-MacArthur 
10.30 	Results First framework to evaluate 
10.31 	corrections and human services programs 
10.32 	administered and funded by state and 
10.33 	county governments. The commissioner 
10.34 	shall engage and work with staff from 
10.35 	Pew-MacArthur Results First, and shall 
11.1 	consult with representatives of other state 
11.2 	agencies, counties, legislative staff, the 
11.3 	commissioners of corrections and human 
11.4 	services, and other commissioners of state 
11.5 	agencies and stakeholders to implement the 
11.6 	established methodology. The commissioner 
11.7 	of management and budget shall report 
11.8 	on implementation progress and make 
11.9 	recommendations to the governor and 
11.10 	legislature by January 31, 2017.
11.11 	The commissioner must report to the chairs 
11.12 	and ranking minority members of the 
11.13 	House of Representatives State Government 
11.14 	Finance Committee and the Senate State 
11.15 	Departments and Veterans Budget Division 
11.16 	by July 15, 2015, on the gainsharing program 
11.17 	in Minnesota Statutes, Section 16A.90. The 
11.18 	report must include information on how the 
11.19 	commissioner has promoted the program 
11.20 	to state employees, results achieved under 
11.21 	the program, and recommendations for any 
11.22 	legislative changes needed to make the 
11.23 	program more effective.

11.24	Sec. 14. REVENUE

11.25	Subdivision 1.Total Appropriation
 	$
	140,717,000
	$
	139,537,000

11.26	Appropriations by Fund
	
11.27		2016
	2017
	
11.28	General
	136,482,000
	135,302,000
	
11.29	Health Care Access
	1,749,000
	1,749,000
	
11.30
11.31	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
11.32	Environmental
	303,000
	303,000

11.33	Subd. 2.Tax System Management
 		112,101,000
		110,921,000

11.34	Appropriations by Fund
	
11.35	General
	107,866,000
	106,686,000
	
11.36	Health Care Access
	1,749,000
	1,749,000
	
12.1
12.2	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
12.3	Environmental
	303,000
	303,000
	
12.4 	Base reductions must be made from expenses 
12.5 	related to the capital equipment sales tax 
12.6 	repealed in 2014, and cannot be applied to 
12.7 	compliance activities.
12.8 	Appropriation; Taxpayer Assistance. 
12.9 	(a) $400,000 each year from the general 
12.10 	fund is for grants to one or more nonprofit 
12.11 	organizations, qualifying under section 
12.12 	501(c)(3) of the Internal Revenue Code of 
12.13 	1986, to coordinate, facilitate, encourage, and 
12.14 	aid in the provision of taxpayer assistance 
12.15 	services. The unencumbered balance in the 
12.16 	first year does not cancel but is available for 
12.17 	the second year.
12.18 	(b) For purposes of this section, "taxpayer 
12.19 	assistance services" means accounting 
12.20 	and tax preparation services provided by 
12.21 	volunteers to low-income, elderly, and 
12.22 	disadvantaged Minnesota residents to help 
12.23 	them file federal and state income tax returns 
12.24 	and Minnesota property tax refund claims 
12.25 	and to provide personal representation before 
12.26 	the Department of Revenue and Internal 
12.27 	Revenue Service.

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

12.29	Sec. 15. GAMBLING CONTROL
 	$
	3,959,000
	$
	3,959,000
	
12.30 	These appropriations are from the lawful 
12.31 	gambling regulation account in the special 
12.32 	revenue fund.

12.33	Sec. 16. RACING COMMISSION
 	$
	899,000
	$
	1,081,000
	
13.1 	These appropriations are from the racing 
13.2 	and card playing regulation accounts in the 
13.3 	special revenue fund.

13.4	Sec. 17. STATE LOTTERY
 					
13.5 	Notwithstanding Minnesota Statutes, section 
13.6 	349A.10, subdivision 3, the operating budget 
13.7 	must not exceed $31,000,000 in fiscal year 
13.8 	2016 and $31,000,000 in fiscal year 2017.

13.9	Sec. 18. AMATEUR SPORTS COMMISSION
 	$
	253,000
	$
	253,000

13.10
13.11	Sec. 19. COUNCIL ON BLACK 
MINNESOTANS
 	$
	392,000
	$
	392,000
	
13.12 	These appropriations are from the ethnic 
13.13 	councils account in the special revenue fund.
13.14 	The general fund base in fiscal years 2018 and 
13.15 	2019 for this council is $392,000 each year.

13.16
13.17	Sec. 20. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	354,000
	$
	354,000
	
13.18 	These appropriations are from the ethnic 
13.19 	councils account in the special revenue fund.
13.20 	The general fund base in fiscal years 2018 and 
13.21 	2019 for this council is $354,000 each year.

13.22
13.23	Sec. 21. COUNCIL ON AFFAIRS OF 
CHICANO/LATINO PEOPLE
 	$
	375,000
	$
	375,000
	
13.24 	These appropriations are from the ethnic 
13.25 	councils account in the special revenue fund.
13.26 	The general fund base in fiscal years 2018 and 
13.27 	2019 for this council is $375,000 each year.

13.28	Sec. 22. INDIAN AFFAIRS COUNCIL
 	$
	562,000
	$
	562,000
	
13.29 	These appropriations are from the ethnic 
13.30 	councils account in the special revenue fund.
14.1 	The general fund base in fiscal years 2018 and 
14.2 	2019 for this council is $562,000 each year.

14.3
14.4	Sec. 23. MINNESOTA HISTORICAL 
SOCIETY

14.5	Subdivision 1.Total Appropriation
 	$
	22,673,000
	$
	22,464,000
	
14.6 	The amounts that may be spent for each 
14.7 	purpose are specified in the following 
14.8 	subdivisions.

14.9	Subd. 2.Operations and Programs
 		22,160,000
		22,160,000
	
14.10 	Notwithstanding Minnesota Statutes, section 
14.11 	138.668, the Minnesota Historical Society 
14.12 	may not charge a fee for its general tours at 
14.13 	the Capitol, but may charge fees for special 
14.14 	programs other than general tours.
14.15 	$750,000 the first year and $750,000 the 
14.16 	second year are for digital preservation  
14.17 	and access, including planning and 
14.18 	implementation of a program to preserve 
14.19 	and make  available resources related to 
14.20 	Minnesota history.
14.21 	$75,000 the first year and $75,000 the second 
14.22 	year are for activities to enhance educational 
14.23 	achievement through history education.

14.24	Subd. 3.Fiscal Agent

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

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

14.27	(c) Minnesota Military Museum
		150,000
		50,000

14.28	(d) Farmamerica
		190,000
		115,000

14.29	(e) Hockey Hall of Fame
		100,000
		100,000
	
14.30 	Balances Forward. Any unencumbered 
14.31 	balance remaining in this subdivision the first 
15.1 	year does not cancel but is available for the 
15.2 	second year of the biennium.

15.3	Subd. 4.Appropriation Limit
 					
15.4 	Notwithstanding Minnesota Statutes, section 
15.5 	290.0681, subdivision 7, paragraph (b), 
15.6 	the fiscal year 2016 appropriation for 
15.7 	grants in lieu of credit for historic structure 
15.8 	rehabilitation is $457,000.

15.9	Sec. 24. BOARD OF THE ARTS

15.10	Subdivision 1.Total Appropriation
 	$
	7,514,000
	$
	7,514,000
	
15.11 	The amounts that may be spent for each 
15.12 	purpose are specified in the following 
15.13 	subdivisions.

15.14	Subd. 2.Operations and Services
 		575,000
		575,000

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

15.16	Subd. 4.Regional Arts Councils
 		2,139,000
		2,139,000
	
15.17 	Unencumbered Balance Available. Any 
15.18 	unencumbered balance remaining in this 
15.19 	section the first year does not cancel, but is 
15.20 	available for the second year of the biennium.
15.21 	Projects located in Minnesota; travel 
15.22 	restriction. Money appropriated in this 
15.23 	section and distributed as grants may only 
15.24 	be spent on projects located in Minnesota. 
15.25 	A recipient of a grant funded by an 
15.26 	appropriation in this section must not use 
15.27 	more than ten percent of the total grant for 
15.28 	costs related to travel outside the state of 
15.29 	Minnesota.

15.30
15.31	Sec. 25. MINNESOTA HUMANITIES 
CENTER
 	$
	1,100,000
	$
	850,000
	
16.1 	$250,000 the first year is for a grant to 
16.2 	Everybody Wins!-Minnesota, a Minnesota 
16.3 	501(c)(3) corporation, to operate a reading 
16.4 	program for Minnesota children. Any 
16.5 	balance in the first year does not cancel but is 
16.6 	available in the second year.
16.7 	$250,000 the first year and $250,000 the 
16.8 	second year are for a grant to the Minnesota 
16.9 	Council on Economic Education to provide 
16.10 	staff development to teachers for the 
16.11 	implementation of the state graduation 
16.12 	standards in learning areas relating to 
16.13 	economic education. This is a onetime 
16.14 	appropriation. The commissioner, in 
16.15 	consultation with the council, shall develop 
16.16 	expected results of staff development, 
16.17 	eligibility criteria for participants, an 
16.18 	evaluation procedure, and guidelines for 
16.19 	direct and in-kind contributions by the 
16.20 	council. This appropriation does not cancel, 
16.21 	but is available until expended.
16.22 	$250,000 in fiscal year 2016 and $250,000 in 
16.23 	fiscal year 2017 are for the healthy eating, 
16.24 	here at home program under Minnesota 
16.25 	Statutes, section 256E.345. No more than 
16.26 	three percent of the appropriation may be 
16.27 	used for the nonprofit administration of the 
16.28 	grant program under Minnesota Statutes, 
16.29 	section 256E.345.

16.30	Sec. 26. BOARD OF ACCOUNTANCY
 	$
	628,000
	$
	618,000

16.31
16.32
16.33
16.34	Sec. 27. BOARD OF ARCHITECTURE 
ENGINEERING, LAND SURVEYING, 
LANDSCAPE ARCHITECTURE, 
GEOSCIENCE, AND INTERIOR DESIGN
 	$
	774,000
	$
	774,000

17.1
17.2	Sec. 28. BOARD OF COSMETOLOGIST 
EXAMINERS
 	$
	1,346,000
	$
	1,346,000

17.3	Sec. 29. BOARD OF BARBER EXAMINERS
 	$
	317,000
	$
	317,000

17.4	Sec. 30. HUMAN RIGHTS.
 	$
	3,505,000
	$
	3,505,000
	
17.5 	$80,000 each year is for operation of an 
17.6 	office in St. Cloud.

17.7
17.8	Sec. 31. GENERAL CONTINGENT 
ACCOUNTS
 	$
	750,000
	$
	500,000

17.9	Appropriations by Fund
	
17.10		2016
	2017
	
17.11	General
	250,000
	-0-
	
17.12
17.13	State Government 
Special Revenue
	400,000
	400,000
	
17.14
17.15	Workers' 
Compensation
	100,000
	100,000
	
17.16 	(a) The appropriations in this section 
17.17 	may only be spent with the approval of 
17.18 	the governor after consultation with the 
17.19 	Legislative Advisory Commission pursuant 
17.20 	to Minnesota Statutes, section 3.30.
17.21 	(b) If an appropriation in this section for 
17.22 	either year is insufficient, the appropriation 
17.23 	for the other year is available for it.
17.24 	(c) If a contingent account appropriation 
17.25 	is made in one fiscal year, it should be 
17.26 	considered a biennial appropriation.

17.27	Sec. 32. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
17.28 	These appropriations are to be spent by the 
17.29 	commissioner of management and budget 
17.30 	according to Minnesota Statutes, section 
17.31 	3.736, subdivision 7. If the appropriation for 
17.32 	either year is insufficient, the appropriation 
17.33 	for the other year is available for it.

18.1
18.2	Sec. 33. MINNESOTA STATE RETIREMENT 
SYSTEM
 	$
	6,552,000
	$
	8,936,000
	
18.3 	These amounts are estimated to be needed 
18.4 	under Minnesota Statutes, sections 3A.03, 
18.5 	subdivision 2; 3A.04, subdivisions 3 and 4; 
18.6 	and 3A.115 for the Combined Legislators 
18.7 	and Constitutional Officers Retirement Plan.

18.8
18.9	Sec. 34. PUBLIC EMPLOYEES 
RETIREMENT ASSOCIATION
 	$
	6,000,000
	$
	6,000,000
	
18.10 	Notwithstanding Minnesota Statutes, section 
18.11 	353.505, the state payments to the Public 
18.12 	Employees Retirement Association on behalf 
18.13 	of the former MERF division account are 
18.14 	$6,000,000 on September 15, 2015 and 
18.15 	$6,000,000 on September 15, 2016.

18.16
18.17	Sec. 35. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	29,831,000
	$
	29,831,000
	
18.18 	The amounts estimated to be needed are as 
18.19 	follows:
18.20 	Special Direct State Aid. $27,331,000 the 
18.21 	first year and $27,331,000 the second year 
18.22 	are for special direct state aid authorized 
18.23 	under Minnesota Statutes, section 354.436.
18.24 	Special Direct State Matching Aid. 
18.25 	$2,500,000 the first year and $2,500,000 
18.26 	the second year are for special direct state 
18.27 	matching aid authorized under Minnesota 
18.28 	Statutes, section 354.435.

18.29
18.30	Sec. 36. ST. PAUL TEACHERS 
RETIREMENT FUND
 	$
	9,827,000
	$
	9,827,000
	
18.31 	The amounts estimated to be needed for 
18.32 	special direct state aid to the first class 
18.33 	city teachers retirement fund association 
19.1 	authorized under Minnesota Statutes, section 
19.2 	354A.12, subdivisions 3a and 3c.

19.3	Sec. 37. MILITARY AFFAIRS

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

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

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

19.10	Subd. 4.Enlistment Incentives
 		6,888,000
		6,888,000
	
19.11 	If appropriations for either year of the 
19.12 	biennium are insufficient, the appropriation 
19.13 	from the other year is available. The 
19.14 	appropriations for enlistment incentives are 
19.15 	available until expended.
19.16 	Of the funds carried forward from fiscal year 
19.17 	2015 to fiscal year 2016, in the enlistment 
19.18 	incentives appropriation, $100,000 is 
19.19 	canceled to the general fund to support the 
19.20 	appropriation to the Minnesota Historical 
19.21 	Society for a grant to the Minnesota Military 
19.22 	Museum. $1,000,000 is canceled to the 
19.23 	general fund to support the appropriation to 
19.24 	the Department of Veterans Affairs for repair 
19.25 	and betterment of the Minnesota veterans 
19.26 	homes.

19.27	Sec. 38. VETERANS AFFAIRS

19.28	Subdivision 1.Total Appropriation
 	$
	65,254,000
	$
	67,360,000

19.29	Appropriations by Fund
	
19.30		2016
	2017
	
19.31	General Fund
	63,253,000
	63,253,000
	
19.32	Special Revenue
	2,001,000
	4,107,000
	
20.1 	The amounts that may be spent for each 
20.2 	purpose are specified in the following 
20.3 	subdivisions.

20.4	Subd. 2.Veterans Services
 		16,240,000
		16,240,000
	
20.5 	Veterans Service Organizations. $353,000 
20.6 	each year is for grants to the following 
20.7 	congressionally chartered veterans service 
20.8 	organizations, as designated by the 
20.9 	commissioner: Disabled American Veterans, 
20.10 	Military Order of the Purple Heart, the 
20.11 	American Legion, Veterans of Foreign Wars, 
20.12 	Vietnam Veterans of America, AMVETS, 
20.13 	and Paralyzed Veterans of America. This 
20.14 	funding must be allocated in direct proportion 
20.15 	to the funding currently being provided by 
20.16 	the commissioner to these organizations.
20.17 	Minnesota Assistance Council for 
20.18 	Veterans. $750,000 each year is for a grant 
20.19 	to the Minnesota Assistance Council for 
20.20 	Veterans to provide assistance throughout 
20.21 	Minnesota to veterans and their families who 
20.22 	are homeless or in danger of homelessness, 
20.23 	including assistance with the following:
20.24 	(1) utilities;
20.25 	(2) employment; and
20.26 	(3) legal issues.
20.27 	The assistance authorized under this 
20.28 	paragraph must be made only to veterans who 
20.29 	have resided in Minnesota for 30 days prior 
20.30 	to application for assistance and according 
20.31 	to other guidelines established by the 
20.32 	commissioner. In order to avoid duplication 
20.33 	of services, the commissioner must ensure 
21.1 	that this assistance is coordinated with all 
21.2 	other available programs for veterans.
21.3 	Honor Guards. $200,000 each year is 
21.4 	for compensation for honor guards at 
21.5 	the funerals of veterans under Minnesota 
21.6 	Statutes, section 197.231. This amount is 
21.7 	added to the program's base funding.
21.8 	Minnesota GI Bill. $200,000 each year is 
21.9 	for the costs of administering the Minnesota 
21.10 	GI Bill postsecondary educational benefits, 
21.11 	on-the-job training, and apprenticeship 
21.12 	program under Minnesota Statutes, section 
21.13 	197.791. Of this amount, $100,000 is for 
21.14 	transfer to the Office of Higher Education.
21.15 	Gold Star Program. $100,000 each year 
21.16 	is for administering the Gold Star Program 
21.17 	for surviving family members of deceased 
21.18 	veterans. This amount is added to the 
21.19 	program's base funding.
21.20 	County Veterans Service Office. 
21.21 	$1,100,000 each year is for funding the 
21.22 	County Veterans Service Office grant 
21.23 	program under Minnesota Statutes, section 
21.24 	197.608.

21.25	Subd. 3.Veterans Homes
 		49,014,000
		51,120,000

21.26	Appropriations by Fund
	
21.27		2016
	2017
	
21.28	General Fund
	47,013,000
	47,013,000
	
21.29	Special Revenue
	2,001,000
	4,107,000
	
21.30 	Veterans Homes Special Revenue Account. 
21.31 	$6,108,000 is transferred from the state 
21.32 	employee group insurance program trust fund 
21.33 	to the veterans home special revenue account 
21.34 	in the special revenue fund. The general fund 
21.35 	appropriations made to the department may 
22.1 	be transferred to a veterans homes special 
22.2 	revenue account in the special revenue fund 
22.3 	in the same manner as other receipts are 
22.4 	deposited according to Minnesota Statutes, 
22.5 	section 198.34. Amounts in the account 
22.6 	are appropriated to the department for the 
22.7 	operation of veterans homes facilities and 
22.8 	programs.
22.9 	The general fund base in fiscal years 2018 
22.10 	and 2019 for veterans homes is $51,120,000 
22.11 	each year.

22.12 	Sec. 39. ETHNIC COUNCILS ACCOUNT.
 22.13 	The following amounts are deposited in the ethnic councils account in the special 
22.14 	revenue fund:
22.15 	(1) $ 2,201,000 which is transferred from the state employee group insurance trust 
22.16 	fund;
22.17 	(2) $871,000 which is transferred from the state elections campaign fund; and
22.18 	(3) $294,000 from the appropriation related to health insurance transparency in Laws 
22.19 	2014, chapter 312, article 21, section 4, paragraph (a), is canceled to the general fund 
22.20 	and transferred to the special revenue fund, effective the day following final enactment 
22.21 	of this section.

22.22 	ARTICLE 2
22.23 	STATE GOVERNMENT

22.24 	Section 1. [2.92] DISTRICTING PRINCIPLES.
22.25 		Subdivision 1.Applicability; constitutional duty of legislature. (a) The principles 
22.26 	in this section apply to legislative and congressional districts.
22.27 	(b) Notwithstanding any laws to the contrary, legislative and congressional districts 
22.28 	must be drawn by the legislature, consistent with the requirements of the Minnesota 
22.29 	Constitution, article IV, section 3. The legislature may not delegate its duty to draw 
22.30 	districts to any commission, council, panel, or other entity that is not comprised solely of 
22.31 	members of the legislature.
22.32 		Subd. 2.Nesting. A representative district may not be divided in the formation 
22.33 	of a senate district.
23.1 		Subd. 3.Equal population. (a) Legislative districts must be substantially equal 
23.2 	in population. The population of a legislative district must not deviate from the ideal 
23.3 	by more than 0.5 percent, plus or minus.
23.4 	(b) Congressional districts must be as nearly equal in population as practicable. 
23.5 		Subd. 4.Contiguity; compactness. The districts must be composed of convenient 
23.6 	contiguous territory. To the extent consistent with the other principles in this section, 
23.7 	districts should be compact. Contiguity by water is sufficient if the water is not a serious 
23.8 	obstacle to travel within the district. Point contiguity is not sufficient.
23.9 		Subd. 5.Numbering. (a) Legislative districts must be numbered in a regular series, 
23.10 	beginning with house district 1A in the northwest corner of the state and proceeding across 
23.11 	the state from west to east, north to south, but bypassing the 11-county metropolitan 
23.12 	area until the southeast corner has been reached; then to the 11-county metropolitan area 
23.13 	outside the cities of Minneapolis and St. Paul; then in Minneapolis and St. Paul.
23.14 	(b) Congressional district numbers must begin with district one in the southeast 
23.15 	corner of the state and end with district eight in the northeast corner of the state.
23.16 		Subd. 6.Minority representation. (a) The dilution of racial or ethnic minority 
23.17 	voting strength is contrary to the laws of the United States and the state of Minnesota. 
23.18 	These principles must not be construed to supersede any provision of the Voting Rights 
23.19 	Act of 1965, as amended.
23.20 	(b) A redistricting plan must not have the intent or effect of dispersing or 
23.21 	concentrating minority population in a manner that prevents minority communities from 
23.22 	electing their candidates of choice.
23.23 		Subd. 7.Minor civil divisions.  (a) A county, city, or town must not be unduly 
23.24 	divided unless required to meet equal population requirements or to form districts 
23.25 	composed of convenient, contiguous territory.
23.26 	(b) A county, city, or town is not unduly divided in the formation of a legislative or 
23.27 	congressional district if:
23.28 	(1) the division occurs because a portion of a city or town is noncontiguous with 
23.29 	another portion of the same city or town; or
23.30 	(2) despite the division, the known population of any affected county, city, or town 
23.31 	remains wholly located within a single district.
23.32 		Subd. 8.Preserving communities of interest. (a) Districts should attempt to 
23.33 	preserve identifiable communities of interest where that can be done in compliance with 
23.34 	the principles under this section.
24.1 	(b) For purposes of this subdivision, "communities of interest" means recognizable 
24.2 	areas with similarities of interests including, but not limited to, racial, ethnic, geographic, 
24.3 	social, or cultural interests.
24.4 		Subd. 9.Data to be used. (a) The geographic areas and population counts used in 
24.5 	maps, tables, and legal descriptions of the districts must be those used by the Geographic 
24.6 	Information Systems Office of the Legislative Coordinating Commission. The population 
24.7 	counts will be the block population counts provided to the state under Public Law 94-171 
24.8 	after each decennial census, subject to correction of any errors acknowledged by the 
24.9 	United States Census Bureau.
24.10 	(b) Nothing in this subdivision prohibits the use of additional data, as determined 
24.11 	by the legislature.
24.12 		Subd. 10.Consideration of plans. A redistricting plan must not be considered for 
24.13 	adoption by the senate or house of representatives until a block equivalency file showing 
24.14 	the district to which each census block has been assigned, in a form prescribed by the 
24.15 	director of the Geographic Information Systems Office, has been filed with the director.
24.16 		Subd. 11.Priority of principles.  Where it is not possible to fully comply with the 
24.17 	principles contained in subdivisions 1 to 8, a redistricting plan must give priority to those 
24.18 	principles in the order in which they are listed in this section, except to the extent that 
24.19 	doing so would violate federal or state law.

24.20 	EFFECTIVE DATE.  This section is effective the day following final enactment 
24.21 	and applies to any plan for districts enacted or established for use on or after that date.

24.22 	Sec. 2. Minnesota Statutes 2014, section 3.971, is amended by adding a subdivision to 
24.23 	read:
24.24 		Subd. 8a.Fiscal notes and revenue estimates. The legislative auditor shall 
24.25 	participate in the fiscal note and revenue estimate process in the manner described in 
24.26 	section 3.98. Authority of the legislative auditor and duties of employees and entities 
24.27 	under section 3.978, subdivision 2, apply to the legislative auditor's work on fiscal notes 
24.28 	and revenue estimates.

24.29 	Sec. 3. [3.9735] EVALUATION OF ECONOMIC DEVELOPMENT INCENTIVE 
24.30 	PROGRAMS.
24.31 		Subdivision 1.Definitions. For purposes of this section, the terms defined in this 
24.32 	section have the meanings given them.
24.33 	(a) "General incentive" means a state program, statutory provision, or tax 
24.34 	expenditure, including tax credits, tax exemptions, tax deductions, grants, or loans, that 
25.1 	is intended to encourage businesses to locate, expand, invest, or remain in Minnesota or 
25.2 	to hire or retain employees in Minnesota. To be a general incentive, a state program, 
25.3 	statutory provision, or tax expenditure must be available to multiple entities, projects, or 
25.4 	associated projects or include eligibility criteria with the intent that it will be available to 
25.5 	multiple entities, projects, or associated projects.
25.6 	(b) "Exclusive incentive" means a state program, statutory provision, tax 
25.7 	expenditure, or section of a general incentive, including tax credits, tax exemptions, tax 
25.8 	deductions, grants, or loans, that is intended to encourage a single specific entity, project, 
25.9 	or associated projects to locate, expand, invest, or remain in Minnesota or to hire or retain 
25.10 	employees in Minnesota.
25.11 		Subd. 2.Selection of general incentives for review; schedule for evaluation; 
25.12 	report.  Annually, the legislative auditor shall  submit to the Legislative Audit Commission 
25.13 	a list of three to five general incentives proposed for review. In selecting general 
25.14 	incentives to include on this list, the legislative auditor may consider what the incentive 
25.15 	will cost state and local governments in actual spending and foregone revenue currently or 
25.16 	projected into the future, the legislature's need for information about a general incentive 
25.17 	that has an upcoming expiration date, and the legislature's need for regular information on 
25.18 	the results of all major general incentives. Annually, the Legislative Audit Commission 
25.19 	will select at least one general incentive for the legislative auditor's evaluation. The 
25.20 	legislative auditor will evaluate the selected general incentive or incentives, prepared 
25.21 	according to the evaluation plan established under subdivision 4, and submit a written 
25.22 	report to the Legislative Audit Commission.
25.23 		Subd. 3.Exclusive incentive schedule. The legislative auditor's schedule shall 
25.24 	ensure that at least once every four years the legislative auditor will complete an analysis 
25.25 	of best practices for exclusive incentives.
25.26 		Subd. 4.Evaluation plans. By February 1, 2016, the Legislative Audit Commission 
25.27 	shall establish evaluation plans that identify elements that the legislative auditor must 
25.28 	include in evaluations of a general incentive and an exclusive incentive. The Legislative 
25.29 	Audit Commission may modify the evaluation plans as needed.

25.30 	Sec. 4. Minnesota Statutes 2014, section 3.979, subdivision 3, is amended to read:
25.31 		Subd. 3.Audit data. (a) "Audit" as used in this subdivision means a financial audit, 
25.32 	review, program evaluation, best practices review, evaluation of an incentive program or 
25.33 	exclusive incentive program under section 3.9735, or investigation. Data relating to an 
25.34 	audit are not public or with respect to data on individuals are confidential until the final 
25.35 	report of the audit has been released by the legislative auditor or the audit is no longer 
26.1 	being actively pursued. Upon release of a final audit report by the legislative auditor, data 
26.2 	relating to an audit are public except data otherwise classified as not public.
26.3 	(b) Data related to an audit but not published in the audit report and that the 
26.4 	legislative auditor reasonably believes will be used in litigation are not public and with 
26.5 	respect to data on individuals are confidential until the litigation has been completed or is 
26.6 	no longer being actively pursued.
26.7 	(c) Data on individuals that could reasonably be used to determine the identity of an 
26.8 	individual supplying data for an audit are private if the data supplied by the individual were 
26.9 	needed for an audit and the individual would not have provided the data to the legislative 
26.10 	auditor without an assurance that the individual's identity would remain private, or the 
26.11 	legislative auditor reasonably believes that the subject would not have provided the data.
26.12 	(d) The definitions of terms provided in section 13.02 apply for purposes of this 
26.13 	subdivision.

26.14 	Sec. 5. Minnesota Statutes 2014, section 3.98, is amended to read:
26.15 	3.98 FISCAL NOTES AND REVENUE ESTIMATES.
26.16 		Subdivision 1.Preparation. The head or chief administrative officer of each 
26.17 	department or agency of the state government, including the Supreme Court, shall prepare 
26.18 	a fiscal note at the request of the chair of the standing committee to which a bill has been 
26.19 	referred, or the chair of the house of representatives Ways and Means Committee, or the 
26.20 	chair of the senate Committee on Finance.
26.21 	For purposes of this subdivision, "Supreme Court" includes all agencies, committees, 
26.22 	and commissions supervised or appointed by the state Supreme Court or the state court 
26.23 	administrator. (a) The chair of the standing committee to which a bill has been referred, 
26.24 	the chair of the house of representatives Ways and Means Committee, and the chair of 
26.25 	the senate Committee on Finance may request a fiscal note. The chair of the house of 
26.26 	representatives or senate tax committee may request a revenue estimate. A request for a 
26.27 	fiscal note or revenue estimate must be filed with the legislative auditor.
26.28 	(b) Upon receiving a request for a fiscal note or revenue estimate, the legislative 
26.29 	auditor shall request appropriate agencies, offices, boards, or commissions in the executive, 
26.30 	judicial, or legislative branch to provide the legislative auditor with an analysis of the 
26.31 	financial and personnel impacts of the bill. The analysis must include a clear statement 
26.32 	of the assumptions used in the analysis and the extent to which alternative assumptions 
26.33 	were considered. Agencies, offices, boards, or commissions shall, after receiving a request 
26.34 	from the legislative auditor, submit the analysis in the time and manner requested by the 
26.35 	auditor. The legislative auditor may require agencies, offices, boards, or commissions to 
27.1 	use the fiscal note tracking system developed and maintained by the commissioner of 
27.2 	management and budget for submitting fiscal note information and analysis.
27.3 	(c) The legislative auditor shall review the analysis submitted by agencies, offices, 
27.4 	boards, or commissions and assess the reasonableness of the analysis, particularly the 
27.5 	reasonableness of the assumptions used in the analysis. The auditor may require agencies, 
27.6 	offices, boards, or commissions to resubmit their analysis under new assumptions or 
27.7 	calculation parameters as defined by the auditor.
27.8 	(d) When the legislative auditor accepts the final analysis from all relevant agencies, 
27.9 	offices, boards, or commissions, the legislative auditor shall deliver the completed 
27.10 	fiscal note or revenue estimate. The note or estimate must contain the final analysis 
27.11 	and assumptions submitted to the legislative auditor by agencies, offices, boards, or 
27.12 	commissions, and a statement by the legislative auditor as to whether the legislative 
27.13 	auditor agrees with the final analysis and assumptions. The auditor must state the 
27.14 	reasons for any disagreements and may offer alternative analysis and assumptions for 
27.15 	consideration by the legislature. If the legislative auditor deems these disagreements 
27.16 	sufficiently large, the legislative auditor may submit an unofficial "unapproved" fiscal note 
27.17 	to the legislature for public consideration of both the analysis of the agencies, offices, 
27.18 	boards, or commissions, and of the legislative auditor.
27.19 		Subd. 2.Contents. (a) The A fiscal note, where possible, shall:
27.20 	(1) cite the effect in dollar amounts;
27.21 	(2) cite the statutory provisions affected;
27.22 	(3) estimate the increase or decrease in revenues or expenditures;
27.23 	(4) include the costs which may be absorbed without additional funds;
27.24 	(5) include the assumptions used in determining the cost estimates; and
27.25 	(6) specify any long-range implication.
27.26 	(b) The A revenue estimate must estimate the effect of a bill on state tax revenues.
27.27 	(c) A fiscal note or revenue estimate may comment on technical or mechanical 
27.28 	defects in the bill but shall express no opinions concerning the merits of the proposal.
27.29 		Subd. 3.Distribution. A copy of the a fiscal note shall be delivered to the chair 
27.30 	of the Ways and Means Committee of the house of representatives, the chair of the 
27.31 	Finance Committee of the senate, the chair of the standing committee to which the bill 
27.32 	has been referred, to the chief author of the bill and to the commissioner of management 
27.33 	and budget. A copy of a revenue estimate shall be delivered to the chairs of the house 
27.34 	of representatives and senate tax committees, to the chief author of the bill, and to the 
27.35 	commissioner of revenue.
28.1 		Subd. 4.Uniform procedure. The commissioner of management and budget 
28.2 	legislative auditor shall prescribe a uniform procedure to govern the departments and 
28.3 	agencies of the state in complying with the requirements of this section.
28.4 		Subd. 5.Tracking system. The commissioner of management and budget shall 
28.5 	provide the legislative auditor with manuals and other documentation requested by the 
28.6 	auditor for the fiscal note tracking system that is maintained by the commissioner.

28.7 	Sec. 6. Minnesota Statutes 2014, section 3.987, subdivision 1, is amended to read:
28.8 		Subdivision 1.Local impact notes. The commissioner of management and budget 
28.9 	legislative auditor shall coordinate the development of a local impact note for any proposed 
28.10 	legislation introduced after June 30, 1997, upon request of the chair or the ranking minority 
28.11 	member of either legislative Tax, Finance, or Ways and Means Committee. Upon receipt 
28.12 	of a request to prepare a local impact note, the commissioner auditor must notify the 
28.13 	authors of the proposed legislation that the request has been made. The local impact note 
28.14 	must be made available to the public upon request. If the action is among the exceptions 
28.15 	listed in section 3.988, a local impact note need not be requested nor prepared. The 
28.16 	commissioner auditor shall make a reasonable and timely estimate of the local fiscal impact 
28.17 	on each type of political subdivision that would result from the proposed legislation. The 
28.18 	commissioner of management and budget auditor may require any political subdivision or 
28.19 	the commissioner of an administrative agency of the state to supply in a timely manner 
28.20 	any information determined to be necessary to determine local fiscal impact. The political 
28.21 	subdivision, its representative association, or commissioner shall convey the requested 
28.22 	information to the commissioner of management and budget auditor with a signed 
28.23 	statement to the effect that the information is accurate and complete to the best of its ability. 
28.24 	The political subdivision, its representative association, or commissioner, when requested, 
28.25 	shall update its determination of local fiscal impact based on actual cost or revenue figures, 
28.26 	improved estimates, or both. Upon completion of the note, the commissioner auditor must 
28.27 	provide a copy to the authors of the proposed legislation and to the chair and ranking 
28.28 	minority member of each committee to which the proposed legislation is referred.

28.29 	Sec. 7. [6.481] COUNTY AUDITS.
28.30 		Subdivision 1.Powers and duties. All the powers and duties conferred and imposed 
28.31 	upon the state auditor shall be exercised and performed by the state auditor in respect to 
28.32 	the offices, institutions, public property, and improvements of several counties of the 
28.33 	state. The state auditor may visit, without previous notice, each county and examine all 
28.34 	accounts and records relating to the receipt and disbursement of the public funds and the 
29.1 	custody of the public funds and other property.  The state auditor shall prescribe and install 
29.2 	systems of accounts and financial reports that shall be uniform, so far as practicable, for 
29.3 	the same class of offices.
29.4 		Subd. 2.Annual audit required. A county must have an annual financial audit. 
29.5 	A county may choose to have the audit performed by the state auditor, or may choose to 
29.6 	have the audit performed by a CPA firm meeting the requirements of section 326A.05. 
29.7 	The state auditor or a CPA firm may accept the records and audit of the Department of 
29.8 	Human Services instead of examining county human service funds, if the audit of the 
29.9 	Department of Human Services has been made within any period covered by the auditor's 
29.10 	audit of other county records.
29.11 		Subd. 3.CPA firm audit. A county audit performed by a CPA firm must meet 
29.12 	the standards and be in the form required by the state auditor. The state auditor may 
29.13 	require additional information from the CPA firm if the state auditor determines that is 
29.14 	in the public interest, but the state auditor must accept the audit unless the state auditor 
29.15 	determines it does not meet recognized industry auditing standards or is not in the form 
29.16 	required by the state auditor. The state auditor may make additional examinations as the 
29.17 	auditor determines to be in the public interest.
29.18 		Subd. 4.Audit availability; data. A copy of the annual audit by the state auditor or 
29.19 	by a CPA firm must be available for public inspection in the Office of the State Auditor and 
29.20 	in the Office of the County Auditor. If an audit is performed by a CPA firm, data relating 
29.21 	to the audit are subject to the same data classifications that apply under section 6.715. A 
29.22 	CPA firm conducting a county audit must provide access to data relating to the audit and is 
29.23 	liable for unlawful disclosure of the data as if it were a government entity under chapter 13.
29.24 		Subd. 5.Reporting. If an audit conducted by the state auditor or a CPA firm 
29.25 	discloses malfeasance, misfeasance, or nonfeasance, the auditor must report this to the 
29.26 	county attorney, who shall institute civil and criminal proceedings as the law and the 
29.27 	protection of the public interests requires.
29.28 		Subd. 6.Payments to state auditor. A county audited by the state auditor must 
29.29 	pay the state auditor for the costs and expenses of the audit. If the state auditor makes 
29.30 	additional examinations of a county whose audit is performed by a CPA firm, the county 
29.31 	must pay the auditor for the cost of these examinations. Payments must be deposited in 
29.32 	the state auditor enterprise fund.
29.33 		Subd. 7.Procedures for change of auditor. A county that plans to change to or 
29.34 	from the state auditor and a CPA firm must notify the state auditor of this change by 
29.35 	August 1 of an even-numbered year. Upon this notice, the following calendar year will be 
30.1 	the first year's records that will be subject to an audit by the new entity. A county that 
30.2 	changes to or from the state auditor must have two annual audits done by the new entity.

30.3 	Sec. 8. Minnesota Statutes 2014, section 10A.01, subdivision 26, is amended to read:
30.4 		Subd. 26.Noncampaign disbursement. "Noncampaign disbursement" means 
30.5 	a purchase or payment of money or anything of value made, or an advance of credit 
30.6 	incurred, or a donation in kind received, by a principal campaign committee for any of 
30.7 	the following purposes:
30.8 	(1) payment for accounting and legal services;
30.9 	(2) return of a contribution to the source;
30.10 	(3) repayment of a loan made to the principal campaign committee by that committee;
30.11 	(4) return of a public subsidy;
30.12 	(5) payment for food, beverages, and necessary utensils and supplies, entertainment, 
30.13 	and facility rental for a fund-raising event;
30.14 	(6) (5) services for a constituent by a member of the legislature or a constitutional 
30.15 	officer in the executive branch, including the costs of preparing and distributing a 
30.16 	suggestion or idea solicitation to constituents, performed from the beginning of the term 
30.17 	of office to adjournment sine die of the legislature in the election year for the office 
30.18 	held, and half the cost of services for a constituent by a member of the legislature or a 
30.19 	constitutional officer in the executive branch performed from adjournment sine die to 60 
30.20 	days after adjournment sine die;
30.21 	(7) (6) payment for food and beverages consumed by a candidate or volunteers while 
30.22 	they are engaged in campaign activities;
30.23 	(8) (7) payment for food or a beverage consumed while attending a reception or 
30.24 	meeting directly related to legislative duties;
30.25 	(9) (8) payment of expenses incurred by elected or appointed leaders of a legislative 
30.26 	caucus in carrying out their leadership responsibilities;
30.27 	(10) (9) payment by a principal campaign committee of the candidate's expenses 
30.28 	for serving in public office, other than for personal uses;
30.29 	(11) (10) costs of child care for the candidate's children when campaigning;
30.30 	(12) (11) fees paid to attend a campaign school;
30.31 	(13) (12) costs of a postelection party during the election year when a candidate's 
30.32 	name will no longer appear on a ballot or the general election is concluded, whichever 
30.33 	occurs first;
30.34 	(14) (13) interest on loans paid by a principal campaign committee on outstanding 
30.35 	loans;
31.1 	(15) (14) filing fees;
31.2 	(16) (15) post-general election holiday or seasonal cards, thank-you notes, or 
31.3 	advertisements in the news media mailed or published prior to the end of the election cycle;
31.4 	(17) (16) the cost of campaign material purchased to replace defective campaign 
31.5 	material, if the defective material is destroyed without being used;
31.6 	(18) (17) contributions to a party unit;
31.7 	(19) (18) payments for funeral gifts or memorials;
31.8 	(20) (19) the cost of a magnet less than six inches in diameter containing legislator 
31.9 	contact information and distributed to constituents;
31.10 	(21) (20) costs associated with a candidate attending a political party state or national 
31.11 	convention in this state;
31.12 	(22) (21) other purchases or payments specified in board rules or advisory opinions 
31.13 	as being for any purpose other than to influence the nomination or election of a candidate 
31.14 	or to promote or defeat a ballot question; and
31.15 	(23) (22) costs paid to a third party for processing contributions made by a credit 
31.16 	card, debit card, or electronic check.
31.17 	The board must determine whether an activity involves a noncampaign disbursement 
31.18 	within the meaning of this subdivision.
31.19 	A noncampaign disbursement is considered to be made in the year in which the 
31.20 	candidate made the purchase of goods or services or incurred an obligation to pay for 
31.21 	goods or services.

31.22 	EFFECTIVE DATE. This section is effective July 1, 2015, and applies to elections 
31.23 	held on or after that date.

31.24 	Sec. 9. Minnesota Statutes 2014, section 10A.105, subdivision 1, is amended to read:
31.25 		Subdivision 1.Single committee. A candidate must not accept contributions 
31.26 	from a source, other than self, in aggregate in excess of $750 or accept a public subsidy 
31.27 	unless the candidate designates and causes to be formed a single principal campaign 
31.28 	committee for each office sought. A candidate may not authorize, designate, or cause to be 
31.29 	formed any other political committee bearing the candidate's name or title or otherwise 
31.30 	operating under the direct or indirect control of the candidate. However, a candidate may 
31.31 	be involved in the direct or indirect control of a party unit.

31.32 	EFFECTIVE DATE. This section is effective July 1, 2015, and applies to elections 
31.33 	held on or after that date.

32.1 	Sec. 10. Minnesota Statutes 2014, section 10A.15, subdivision 1, is amended to read:
32.2 		Subdivision 1.Anonymous contributions. A political committee, political fund, 
32.3 	principal campaign committee, or party unit may not retain an anonymous contribution 
32.4 	in excess of $20, but must forward it to the board for deposit in the general account of 
32.5 	the state elections campaign account fund.

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

32.7 	Sec. 11. Minnesota Statutes 2014, section 10A.245, subdivision 2, is amended to read:
32.8 		Subd. 2.Termination by board. The board may terminate the registration of 
32.9 	a principal campaign committee, party unit, political committee, or political fund found 
32.10 	to be inactive under this section 60 days after sending written notice of inactivity by 
32.11 	certified mail to the affected association at the last address on record with the board for 
32.12 	that association. Within 60 days after the board sends notice under this section, the 
32.13 	affected association must dispose of its assets as provided in this subdivision. The assets 
32.14 	of the principal campaign committee, party unit, or political committee must be used for 
32.15 	the purposes authorized by this chapter or section 211B.12 or must be liquidated and 
32.16 	deposited in the general account of the state elections campaign account fund. The assets 
32.17 	of an association's political fund that were derived from the association's general treasury 
32.18 	money revert to the association's general treasury. Assets of a political fund that resulted 
32.19 	from contributions to the political fund must be used for the purposes authorized by this 
32.20 	chapter or section 211B.12 or must be liquidated and deposited in the general account of 
32.21 	the state elections campaign account fund.

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

32.23 	Sec. 12. Minnesota Statutes 2014, section 10A.257, subdivision 1, is amended to read:
32.24 		Subdivision 1.Unused funds. For election cycles ending on or before December 
32.25 	31, 2016, after all campaign expenditures and noncampaign disbursements for an election 
32.26 	cycle have been made, an amount up to 25 percent of the 2014 election cycle expenditure 
32.27 	limit for the office may be carried forward. Any remaining amount up to the total amount of 
32.28 	the 2014 public subsidy from the state elections campaign fund must be returned to the state 
32.29 	treasury for credit to the general fund under section 10A.324. Any remaining amount in 
32.30 	excess of the 2014 total public subsidy must be contributed to the state elections campaign 
32.31 	account or a political party for multicandidate expenditures as defined in section 10A.275.

32.32 	EFFECTIVE DATE. This section is effective July 1, 2015, and applies to elections 
32.33 	held on or after that date.

33.1 	Sec. 13. Minnesota Statutes 2014, section 10A.38, is amended to read:
33.2 	10A.38 CAPTIONING OF CAMPAIGN ADVERTISEMENTS.
33.3 	(a) This section applies to a campaign advertisement by a candidate who is governed 
33.4 	by an agreement under section 10A.322.
33.5 	(b) "Campaign advertisement" means a professionally produced visual or audio 
33.6 	recording of two minutes or less produced by the candidate for the purpose of influencing 
33.7 	the nomination or election of a candidate.
33.8 	(c) (b) A campaign advertisement that is disseminated as an advertisement by 
33.9 	broadcast or cable television must include closed captioning for deaf and hard-of-hearing 
33.10 	viewers, unless the candidate has filed with the board before the advertisement is 
33.11 	disseminated a statement setting forth the reasons for not doing so. A campaign 
33.12 	advertisement that is disseminated as an advertisement to the public on the candidate's 
33.13 	Web site must include closed captioning for deaf and hard-of-hearing viewers, unless the 
33.14 	candidate has posted on the Web site a transcript of the spoken content of the advertisement 
33.15 	or the candidate has filed with the board before the advertisement is disseminated a 
33.16 	statement setting forth the reasons for not doing so. A campaign advertisement must 
33.17 	not be disseminated as an advertisement by radio unless the candidate has posted on 
33.18 	the candidate's Web site a transcript of the spoken content of the advertisement or the 
33.19 	candidate has filed with the board before the advertisement is disseminated a statement 
33.20 	setting forth the reasons for not doing so.

33.21 	Sec. 14. Minnesota Statutes 2014, section 14.02, is amended by adding a subdivision 
33.22 	to read:
33.23 		Subd. 5.Substantial economic impact. A rule has a "substantial economic impact" 
33.24 	if the rule would result in, or likely result in:
33.25 	(1) an adverse effect or impact on the private-sector economy of the state of 
33.26 	Minnesota of $5,000,000 or more in a single year;
33.27 	(2) a significant increase in costs or prices for consumers, individual private-sector 
33.28 	industries, state agencies, local governments, individuals, or private-sector enterprises 
33.29 	within certain geographic regions inside the state of Minnesota;
33.30 	(3) significant adverse impacts on the competitiveness of private-sector 
33.31 	Minnesota-based enterprises or on private-sector employment, investment, productivity, 
33.32 	or innovation within the state of Minnesota; or
33.33 	(4) compliance costs, in the first year after the rule takes effect, of more than $25,000 
33.34 	for any one business that has less than 50 full-time employees, or for any one statutory or 
33.35 	home rule charter city that has less than ten full-time employees.

34.1 	Sec. 15. Minnesota Statutes 2014, section 14.05, subdivision 1, is amended to read:
34.2 		Subdivision 1.Authority to adopt original rules restricted. (a) Each agency shall 
34.3 	adopt, amend, suspend, or repeal its rules: (1) in accordance with the procedures specified 
34.4 	in sections 14.001 to 14.69, and; (2) only pursuant to authority delegated by state or 
34.5 	federal law; and (3) in full compliance with its duties and obligations.
34.6 	(b) If a law authorizing rules is repealed, the rules adopted pursuant to that law are 
34.7 	automatically repealed on the effective date of the law's repeal unless there is another 
34.8 	law authorizing the rules.
34.9 	(c) Except as provided in section 14.06, sections 14.001 to 14.69 shall not be 
34.10 	authority for an agency to adopt, amend, suspend, or repeal rules.

34.11 	Sec. 16. Minnesota Statutes 2014, section 14.05, subdivision 2, is amended to read:
34.12 		Subd. 2.Authority to modify proposed rule. (a) An agency may modify a 
34.13 	proposed rule in accordance with the procedures of the Administrative Procedure Act. 
34.14 	However, an agency may not modify a proposed rule so that it is substantially different 
34.15 	from the proposed rule in the notice of intent to adopt rules or notice of hearing.
34.16 	(b) A modification does not make a proposed rule substantially different if:
34.17 	(1) the differences are within the scope of the matter announced in the notice of 
34.18 	intent to adopt or notice of hearing and are in character with the issues raised in that notice;
34.19 	(2) the differences are a logical outgrowth of the contents of the notice of intent to 
34.20 	adopt or notice of hearing and the comments submitted in response to the notice; and
34.21 	(3) the notice of intent to adopt or notice of hearing provided fair warning that the 
34.22 	outcome of that rulemaking proceeding could be the rule in question.
34.23 	(c) In determining whether the notice of intent to adopt or notice of hearing provided 
34.24 	fair warning that the outcome of that rulemaking proceeding could be the rule in question 
34.25 	the following factors must be considered:
34.26 	(1) the extent to which persons who will be affected by the rule should have 
34.27 	understood that the rulemaking proceeding on which it is based could affect their interests;
34.28 	(2) the extent to which the subject matter of the rule or issues determined by the 
34.29 	rule are different from the subject matter or issues contained in the notice of intent to 
34.30 	adopt or notice of hearing; and
34.31 	(3) the extent to which the effects of the rule differ from the effects of the proposed 
34.32 	rule contained in the notice of intent to adopt or notice of hearing.
34.33 	(d) A modification makes a proposed rule substantially different if the modification 
34.34 	causes a rule that did not previously have a substantial economic impact to have a 
34.35 	substantial economic impact.

35.1 	Sec. 17. Minnesota Statutes 2014, section 14.116, is amended to read:
35.2 	14.116 NOTICE TO LEGISLATURE.
35.3 	(a) By January 15 each year, each agency must submit its rulemaking docket 
35.4 	maintained under section 14.366, and the official rulemaking record required under section 
35.5 	14.365 for any rule adopted during the preceding calendar year, to the chairs and ranking 
35.6 	minority members of the legislative policy and budget committees with jurisdiction over 
35.7 	the subject matter of the proposed rule and to the Legislative Coordinating Commission. 
35.8 	Each agency must post a link to its rulemaking docket on the agency Web site home page.
35.9 	(b) When an agency mails notice of intent to adopt rules under section 14.14 or 
35.10 	14.22, the agency must send a copy of the same notice and a copy of the statement of need 
35.11 	and reasonableness to the chairs and ranking minority party members of the legislative 
35.12 	policy and budget committees with jurisdiction over the subject matter of the proposed 
35.13 	rules and to the Legislative Coordinating Commission.
35.14 	(c) In addition, if the mailing of the notice is within two years of the effective date 
35.15 	of the law granting the agency authority to adopt the proposed rules, the agency shall 
35.16 	make reasonable efforts to send a copy of the notice and the statement to all sitting 
35.17 	legislators who were chief house of representatives and senate authors of the bill granting 
35.18 	the rulemaking authority. If the bill was amended to include this rulemaking authority, 
35.19 	the agency shall make reasonable efforts to send the notice and the statement to the chief 
35.20 	house of representatives and senate authors of the amendment granting rulemaking 
35.21 	authority, rather than to the chief authors of the bill.

35.22 	Sec. 18. Minnesota Statutes 2014, section 14.127, is amended to read:
35.23 	14.127 LEGISLATIVE APPROVAL REQUIRED.
35.24 		Subdivision 1.Cost thresholds Substantial economic impact. An agency must 
35.25 	determine if the cost of complying with a proposed rule in the first year after the rule 
35.26 	takes effect will exceed $25,000 for: (1) any one business that has less than 50 full-time 
35.27 	employees; or (2) any one statutory or home rule charter city that has less than ten 
35.28 	full-time employees. For purposes of this section, "business" means a business entity 
35.29 	organized for profit or as a nonprofit, and includes an individual, partnership, corporation, 
35.30 	joint venture, association, or cooperative has a substantial economic impact, as defined 
35.31 	in section 14.02, subdivision 5.
35.32 		Subd. 2.Agency determination. An agency must make the determination required 
35.33 	by subdivision 1 before the close of the hearing record, or before the agency submits the 
35.34 	record to the administrative law judge if there is no hearing agency gives notice under 
36.1 	section 14.14, 14.22, 14.225, or 14.389. The administrative law judge must review and 
36.2 	approve or disapprove the agency determination under this section.
36.3 		Subd. 3.Legislative approval required. (a) If the agency determines that a 
36.4 	proposed rule has a substantial economic impact, the agency must request the legislative 
36.5 	auditor to convene a five-person peer review advisory panel to conduct an impact analysis 
36.6 	of the proposed rule. Within 30 days of receipt of the agency's request, the legislative 
36.7 	auditor shall convene a peer review advisory panel. The advisory panel must be made up 
36.8 	of individuals who have not directly or indirectly been involved in the work conducted or 
36.9 	contracted by the agency and who are not employed by the agency. The agency must pay 
36.10 	each panel member for the costs of the person's service on the panel, as determined by 
36.11 	the legislative auditor. The agency shall transfer an amount from the agency's operating 
36.12 	budget to the legislative auditor to pay for costs for convening the peer review advisory 
36.13 	panel process. The panel may receive written and oral comments from the public during 
36.14 	its review. The panel must submit its report within 60 days of being convened. The 
36.15 	agency must receive a final report from the panel before the agency conducts a public 
36.16 	hearing on a proposed rule or, if no hearing is held, before the rule is submitted to the 
36.17 	administrative law judge. The panel's report must include its conclusions on the extent to 
36.18 	which the proposed rule:
36.19 	(1) is based on sound, reasonably available scientific, technical, economic, or other 
36.20 	information or rationale; and
36.21 	(2) is more restrictive than a standard, limitation, or requirement imposed by federal 
36.22 	law or rule pertaining to the same subject matter.
36.23 	(b) If the agency determines that a rule does not have a substantial economic impact, 
36.24 	the administrative law judge must review this determination. If the administrative law 
36.25 	judge determines that a rule may have a substantial economic impact, the agency must 
36.26 	have the legislative auditor arrange for the analysis required by paragraph (a), and the 
36.27 	agency must give new notice of intent to adopt the proposed rule after receiving this 
36.28 	analysis. The administrative law judge may make this determination as part of the 
36.29 	administrative law judge's report on the proposed rule, or at any earlier time after the 
36.30 	administrative law judge is assigned to the rule proceeding.
36.31 	(c) If the agency determines that the cost exceeds the threshold in subdivision 1 
36.32 	proposed rule has a substantial economic impact, or if the administrative law judge 
36.33 	disapproves the agency's determination that the cost doesrule does not exceed the threshold 
36.34 	in subdivision 1, any business that has less than 50 full-time employees or any statutory 
36.35 	or home rule charter city that has less than ten full-time employees may file a written 
36.36 	statement with the agency claiming a temporary exemption from the rules. Upon filing of 
37.1 	such a statement with the agency, the rules do not apply to that business or that city until the 
37.2 	rules arehave a substantial economic impact, the agency or the administrative law judge 
37.3 	shall deliver the determination and peer review advisory panel report to the Legislative 
37.4 	Coordinating Commission and to the chairs and ranking minority members of the house 
37.5 	of representatives and senate committees and divisions with jurisdiction over the subject 
37.6 	matter of the rule, and the proposed rule does not take effect until the rule is approved by a 
37.7 	law enacted after the agency determination or administrative law judge disapproval.
37.8 		Subd. 4.Exceptions. (a) Subdivision 3 does not apply if the administrative law 
37.9 	judge approves an agency's determination that the legislature has appropriated money to 
37.10 	sufficiently fund the expected cost of the rule upon the business or city proposed to be 
37.11 	regulated by the rule.
37.12 	(b) Subdivision 3 does not apply if the administrative law judge approves an 
37.13 	agency's determination that the rule has been proposed pursuant to a specific federal 
37.14 	statutory or regulatory mandate.
37.15 	(c)(b) This section does not apply if the rule is adopted under section 14.388 or 
37.16 	under another law specifying that the rulemaking procedures of this chapter do not apply.
37.17 	(d)(c) This section does not apply to a rule adopted by the Public Utilities 
37.18 	Commission.
37.19 	(e) Subdivision 3 does not apply if the governor waives application of subdivision 3. 
37.20 	The governor may issue a waiver at any time, either before or after the rule would take 
37.21 	effect, but for the requirement of legislative approval. As soon as possible after issuing a 
37.22 	waiver under this paragraph, the governor must send notice of the waiver to the speaker of 
37.23 	the house and the president of the senate and must publish notice of this determination in 
37.24 	the State Register.
37.25 		Subd. 5.Severability. If an administrative law judge determines that part of a 
37.26 	proposed rule exceeds the threshold specified in subdivision 1 has a substantial economic 
37.27 	impact, but that a severable portion of a proposed rule does not exceed the threshold in 
37.28 	subdivision 1 have a substantial economic impact, the administrative law judge may 
37.29 	provide that the severable portion of the rule that does not exceed the thresholdhave a 
37.30 	substantial economic impact may take effect without legislative approval.

37.31 	Sec. 19. Minnesota Statutes 2014, section 14.131, is amended to read:
37.32 	14.131 STATEMENT OF NEED AND REASONABLENESS.
37.33 	By the date of the section 14.14, subdivision 1a, 14.22, or 14.225, notice, the agency 
37.34 	must prepare, review, and make available for public review a statement of the need for and 
37.35 	reasonableness of the rule. The statement of need and reasonableness must be prepared 
38.1 	under rules adopted by the chief administrative law judge and must include the following 
38.2 	to the extent the agency, through reasonable effort, can ascertain this information:
38.3 	(1) a description of the classes of persons who probably will be affected by the 
38.4 	proposed rule, including classes that will bear the costs of the proposed rule and classes 
38.5 	that will benefit from the proposed rule;
38.6 	(2) the probable costs to the agency and to any other agency of the implementation 
38.7 	and enforcement of the proposed rule and any anticipated effect on state revenues;
38.8 	(3) a determination of whether there are less costly methods or less intrusive 
38.9 	methods for achieving the purpose of the proposed rule;
38.10 	(4) a description of any alternative methods for achieving the purpose of the 
38.11 	proposed rule that were seriously considered by the agency and the reasons why they 
38.12 	were rejected in favor of the proposed rule;
38.13 	(5) the probable costs of complying with the proposed rule, including the portion 
38.14 	of the total costs that will be borne by identifiable categories of affected parties, such as 
38.15 	separate classes of governmental units, businesses, or individuals;
38.16 	(6) the probable costs or consequences of not adopting the proposed rule, including 
38.17 	those costs or consequences borne by identifiable categories of affected parties, such as 
38.18 	separate classes of government units, businesses, or individuals;
38.19 	(7) an assessment of any differences between the proposed rule and existing federal 
38.20 	regulations and a specific analysis of the need for and reasonableness of each difference; and
38.21 	(8) an assessment of the cumulative effect of the rule with other federal and state 
38.22 	regulations related to the specific purpose of the rule.; and
38.23 	(9) the agency's findings and conclusions that support its determination that the 
38.24 	proposed rule does or does not have a substantial economic impact.
38.25 	The statement must describe how the agency, in developing the rules, considered 
38.26 	and implemented the legislative policy supporting performance-based regulatory systems 
38.27 	set forth in section 14.002 in a cost-effective and timely manner.
38.28 	For purposes of clause (8), "cumulative effect" means the impact that results from 
38.29 	incremental impact of the proposed rule in addition to other rules, regardless of what 
38.30 	state or federal agency has adopted the other rules. Cumulative effects can result from 
38.31 	individually minor but collectively significant rules adopted over a period of time.
38.32 	The statement must describe, with reasonable particularity, the scientific, technical, 
38.33 	economic, or other information and rationale that supports the proposed rule.
38.34 	The statement must also describe the agency's efforts to provide additional 
38.35 	notification under section 14.14, subdivision 1a, to persons or classes of persons who may 
38.36 	be affected by the proposed rule or must explain why these efforts were not made.
39.1 	The agency must consult with the commissioner of management and budget to 
39.2 	help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local 
39.3 	government. The agency must send a copy of the statement of need and reasonableness 
39.4 	to the Legislative Reference Library when the notice of hearing is mailed under section 
39.5 	14.14, subdivision 1a.

39.6 	Sec. 20. Minnesota Statutes 2014, section 14.388, subdivision 2, is amended to read:
39.7 		Subd. 2.Notice. An agency proposing to adopt, amend, or repeal a rule under this 
39.8 	section must give notice to the chairs and ranking minority members of the legislative 
39.9 	policy and budget committees with jurisdiction over the subject matter of the proposed 
39.10 	rules and to the Legislative Coordinating Commission, must give electronic notice of its 
39.11 	intent in accordance with section 16E.07, subdivision 3, and must give notice by United 
39.12 	States mail or electronic mail to persons who have registered their names with the agency 
39.13 	under section 14.14, subdivision 1a. The notice must be given no later than the date the 
39.14 	agency submits the proposed rule to the Office of Administrative Hearings for review 
39.15 	of its legality and must include:
39.16 	(1) the proposed rule, amendment, or repeal;
39.17 	(2) an explanation of why the rule meets the requirements of the good cause 
39.18 	exemption under subdivision 1; and
39.19 	(3) a statement that interested parties have five business days after the date of the 
39.20 	notice to submit comments to the Office of Administrative Hearings.

39.21 	Sec. 21. Minnesota Statutes 2014, section 14.389, subdivision 2, is amended to read:
39.22 		Subd. 2.Notice and comment. The agency must publish notice of the proposed 
39.23 	rule in the State Register and, must mail the notice by United States mail or electronic 
39.24 	mail to persons who have registered with the agency to receive mailed notices, and must 
39.25 	give notice to the chairs and ranking minority members of the legislative policy and 
39.26 	budget committees with jurisdiction over the subject matter of the proposed rules and to 
39.27 	the Legislative Coordinating Commission. The mailed notice and the notice to legislators 
39.28 	must include either a copy of the proposed rule or a description of the nature and effect 
39.29 	of the proposed rule and a statement that a free copy is available from the agency upon 
39.30 	request. The notice in the State Register must include the proposed rule or the amended 
39.31 	rule in the form required by the revisor under section 14.07, an easily readable and 
39.32 	understandable summary of the overall nature and effect of the proposed rule, and a 
39.33 	citation to the most specific statutory authority for the rule, including authority for the 
40.1 	rule to be adopted under the process in this section. The agency must allow 30 days after 
40.2 	publication in the State Register for comment on the rule.

40.3 	Sec. 22. Minnesota Statutes 2014, section 14.44, is amended to read:
40.4 	14.44 DETERMINATION OF VALIDITY OF RULE.
40.5 	(a) The validity of any rule, or the validity of any agency policy, guideline, bulletin, 
40.6 	criterion, manual standard, or similar pronouncement that the petitioner believes is a 
40.7 	rule as defined in section 14.02, subdivision 4, may be determined upon the petition 
40.8 	for a declaratory judgment thereon, addressed to the Court of Appeals, when it appears 
40.9 	that the rule or pronouncement, or its threatened application, interferes with or impairs, 
40.10 	or threatens to interfere with or impair the legal rights or privileges of the petitioner. 
40.11 	The agency shall be made a party to the proceeding. The declaratory judgment may be 
40.12 	rendered whether or not the petitioner has first requested the agency to pass upon the 
40.13 	validity of the rule in question, whether or not the petitioner has petitioned the Office 
40.14 	of Administrative Hearings under section 14.381, and whether or not the agency has 
40.15 	commenced an action against the petitioner to enforce the rule.
40.16 	(b) If the subject of the petition is an agency policy, guideline, bulletin, criterion, 
40.17 	manual standard, or similar pronouncement, the agency must cease enforcement of the 
40.18 	pronouncement upon filing of the petition until the Court of Appeals rules on the matter. 
40.19 	The agency is liable for all costs associated with review of the petition. If the Court of 
40.20 	Appeals rules in favor of the agency, the agency may recover all or a portion of the cost 
40.21 	from the petitioner unless the petitioner is entitled to proceed in forma pauperis under 
40.22 	section 563.01, or the court determines that the petition was brought in good faith or the 
40.23 	assessment of the costs would constitute an undue hardship for the petitioner. 

40.24 	Sec. 23. Minnesota Statutes 2014, section 14.45, is amended to read:
40.25 	14.45 RULE DECLARED INVALID.
40.26 	In proceedings under section 14.44, the court shall declare the rule or agency 
40.27 	pronouncement invalid if it finds that it violates constitutional provisions or exceeds the 
40.28 	statutory authority of the agency or if the rule was adopted or the pronouncement was 
40.29 	improperly implemented without compliance with statutory rulemaking procedures. Any 
40.30 	party to proceedings under section 14.44, including the agency, may appeal an adverse 
40.31 	decision of the Court of Appeals to the Supreme Court as in other civil cases.

40.32 	Sec. 24. [15.0145] ETHNIC COUNCILS.
41.1 		Subdivision 1.Three ethnic councils; creation. (a) The Minnesota Council on 
41.2 	Latino Affairs includes public members with an ethnic heritage from Mexico, any of the 
41.3 	countries in Central or South America, Cuba, the Dominican Republic, or Puerto Rico. 
41.4 	(b) The Minnesota African Heritage Council includes public members of black 
41.5 	African ancestry.
41.6 	(c) The Council on Asian-Pacific Minnesotans includes public members with an 
41.7 	ethnic heritage from any of the countries east of, and including, Afghanistan or the 
41.8 	Pacific Islands.
41.9 		Subd. 2.Membership. (a) Each council has 15 voting members. Eleven members 
41.10 	of each council are public members appointed by the governor. Four members of each 
41.11 	council are legislators.
41.12 	(b) The governor shall appoint 11 members of each council as follows:
41.13 	(1) the Minnesota Council on Latino Affairs must include one member representing 
41.14 	each of the state's congressional districts and three members appointed at-large. The 
41.15 	governor must attempt to ensure that the demographic composition of council members 
41.16 	accurately reflects the demographic composition of Minnesota's Latino community, 
41.17 	including recent immigrants, as determined by the state demographer;
41.18 	(2) the Minnesota African Heritage Council must include members who are 
41.19 	broadly representative of the African heritage community of the state. The council must 
41.20 	include at least five females. At least three members must be first or second generation 
41.21 	African immigrants, who generally reflect the demographic composition of these African 
41.22 	immigrants, as determined by the state demographer; and
41.23 	(3) the Council on Asian-Pacific Minnesotans must include one member from each 
41.24 	of the five ancestries with the state's highest percentages of Asian-Pacific populations, 
41.25 	as determined by the state demographer. The other six members must be broadly 
41.26 	representative of the rest of the Asian-Pacific population, with no more than one council 
41.27 	member from any one ancestry. For purposes of this clause, ancestry refers to heritage that 
41.28 	is commonly accepted in Minnesota as a unique population.
41.29 	(c) Four legislators are voting members of each council. The speaker of the house 
41.30 	and the house minority leader shall each appoint one member to each council. The 
41.31 	Subcommittee on Committees of the senate Committee on Rules and Administration shall 
41.32 	appoint one member of the majority caucus and one member of the minority caucus to 
41.33 	each council.
41.34 	(d) The governor may appoint a commissioner of a state agency or a designee of that 
41.35 	commissioner to serve as an ex-officio, nonvoting member of a council.
42.1 		Subd. 3.Appointments; terms; removal.  (a) In making appointments to a council, 
42.2 	the governor shall consider an appointee's proven dedication and commitment to the 
42.3 	council's community and any expertise possessed by the appointee that might be beneficial 
42.4 	to the council, such as experience in public policy, legal affairs, social work, business, 
42.5 	or management. The executive director of a council and legislative members may offer 
42.6 	advice to the governor on applicants seeking appointment.
42.7 	(b) Terms, compensation, and filling of vacancies for members appointed by the 
42.8 	governor are as provided in section 15.059. Removal of members appointed by the 
42.9 	governor is governed by section 15.059, except that: (1) a member who missed more than 
42.10 	half of the council meetings convened during a 12-month period automatically is removed 
42.11 	from the council; and (2) a member appointed by the governor may be removed by a vote 
42.12 	of three of the four legislative members of the council. The chair of a council shall inform 
42.13 	the governor of the need for the governor to fill a vacancy on the council. Legislative 
42.14 	members serve at the pleasure of their appointing authority.
42.15 	(c) A member appointed by the governor may serve no more than a total of eight 
42.16 	years on a council. A legislator may serve no more than eight consecutive years or 12 
42.17 	nonconsecutive years on any one council.
42.18 		Subd. 4.Training; executive committee; meetings; support. (a) A member 
42.19 	appointed by the governor must attend orientation training within the first six months of 
42.20 	service for each term. The commissioner of administration must arrange for the training 
42.21 	to include but not be limited to the legislative process, government data practices, open 
42.22 	meeting law, Robert's Rules of Order, fiscal management, and human resources. The 
42.23 	governor must remove a member who does not complete the training.
42.24 	(b) Each council shall annually elect from among the members appointed by the 
42.25 	governor a chair and other officers it deems necessary. These officers and one legislative 
42.26 	member selected by the council shall serve as the executive committee of the council.
42.27 	(c) Forty percent of voting members of a council constitutes a quorum. A quorum is 
42.28 	required to conduct council business. A council member may not vote on any action if the 
42.29 	member has a conflict of interest under section 10A.07.
42.30 	(d) Each council shall receive administrative support from the commissioner of 
42.31 	administration under section 16B.371.
42.32 		Subd. 5.Executive director; staff. (a) The Legislative Coordinating Commission 
42.33 	must appoint an executive director for each council. The executive director must be 
42.34 	experienced in administrative activities and familiar with the challenges and needs of 
42.35 	the ethnic council's larger community. The executive director serves in the unclassified 
42.36 	service at the pleasure of the Legislative Coordinating Commission.
43.1 	(b) The Legislative Coordinating Commission must establish a process for recruiting 
43.2 	and selecting applicants for the executive director positions. This process must include 
43.3 	consultation and collaboration with the applicable council.
43.4 	(c) The executive director and applicable council members must work together in 
43.5 	fulfilling council duties. The executive director must consult with the commissioners of 
43.6 	administration and management and budget to ensure appropriate financial, purchasing, 
43.7 	human resources, and other services for operation of the council. The executive director 
43.8 	must appoint and supervise the work of other staff necessary to carry out the duties of the 
43.9 	council. The executive director and other council staff are executive branch employees.
43.10 		Subd. 6.Duties of council. (a) A council must work for the implementation 
43.11 	of economic, social, legal, and political equality for its constituency. The council shall 
43.12 	work with the legislature and governor to carry out this work by performing the duties 
43.13 	in this section.
43.14 	(b) A council shall advise the governor and the legislature on issues confronting the 
43.15 	constituency of the council. This may include, but is not limited to, presenting the results 
43.16 	of surveys, studies, and community forums to the appropriate executive departments 
43.17 	and legislative committees.
43.18 	(c) A council shall advise the governor and the legislature of administrative 
43.19 	and legislative changes needed to improve the economic and social condition of the 
43.20 	constituency of the council. This may include but is not limited to working with legislators 
43.21 	to develop politically feasible legislation to address these issues and to work for passage 
43.22 	of the legislation. This may also include making recommendations regarding the state's 
43.23 	affirmative action program and the state's targeted group small business program, or 
43.24 	working with state agencies and organizations to develop business opportunities and 
43.25 	promote economic development for the constituency of the council.
43.26 	(d) A council shall advise the governor and the legislature of the implications 
43.27 	and effect of proposed administrative and legislative changes on the constituency of 
43.28 	the council. This may include but is not limited to tracking legislation, testifying as 
43.29 	appropriate, and meeting with executive departments and legislators.
43.30 	(e) A council shall serve as a liaison between state government and organizations that 
43.31 	serve the constituency of the council. This may include but is not limited to working with 
43.32 	these organizations to carry out the duties in paragraphs (a) to (d), and working with these 
43.33 	organizations to develop informational programs or publications to involve and empower 
43.34 	the constituency in seeking improvement in their economic and social conditions.
43.35 	(f) A council shall perform or contract for the performance of studies designed 
43.36 	to suggest solutions to the problems of the constituency of the council in the areas of 
44.1 	education, employment, human rights, health, housing, social welfare, and other related 
44.2 	areas.
44.3 	(g) In carrying out duties under this subdivision, councils may act to advise on issues 
44.4 	that affect the shared constituencies of more than one council.
44.5 		Subd. 7.Duties of council members. A council member shall:
44.6 	(1) attend and participate in scheduled meetings and be prepared by reviewing 
44.7 	meeting notes;
44.8 	(2) maintain and build communication with the community represented;
44.9 	(3) collaborate with the council and executive director in carrying out the council's 
44.10 	duties; and
44.11 	(4) participate in activities the council or executive director deem appropriate and 
44.12 	necessary to facilitate the goals and duties of the council.
44.13 		Subd. 8.Reports. A council must report on the measurable outcomes achieved in 
44.14 	the council's current strategic plan to meet its statutory duties, along with the specific 
44.15 	objectives and outcome measures proposed for the following year. The council must 
44.16 	submit the report by January 15 each year to the chairs of the committees in the house of 
44.17 	representatives and the senate with primary jurisdiction over state government operations. 
44.18 	Each report must cover the calendar year of the year before the report is submitted. The 
44.19 	specific objectives and outcome measures for the following current year must focus on 
44.20 	three or four achievable objectives, action steps, and measurable outcomes for which 
44.21 	the council will be held accountable. The strategic plan may include other items that 
44.22 	support the statutory purposes of the council but should not distract from the primary 
44.23 	statutory proposals presented. The funding request of each council, after approval by the 
44.24 	Legislative Coordinating Commission, must also be presented by February 1 in each 
44.25 	odd-numbered year.

44.26 	Sec. 25. [16A.0565] CENTRALIZED TRACKING LIST OF AGENCY 
44.27 	PROJECTS.
44.28 		Subdivision 1.Centralized tracking. The commissioner must maintain a 
44.29 	centralized tracking list of new agency projects estimated to cost more than $100,000 that 
44.30 	are paid for from the general fund.
44.31 		Subd. 2.New agency project. (a) For purposes of this section a "new agency 
44.32 	project" means:
44.33 	(1) any new agency program or activity with more than $100,000 in funding from 
44.34 	the general fund; and
45.1 	(2) any pre-existing agency program or activity with an increase of $100,000 or 
45.2 	more above the base level in general fund support. 
45.3 	(b) For purposes of this section, a new agency project does not include:
45.4 	(i) general aid programs for units of local government, or entitlement programs 
45.5 	providing assistance to individuals; or
45.6 	(ii) a new program or activity or increase in a program or activity that is mandated 
45.7 	by law.
45.8 		Subd. 3.Transparency requirements. The centralized tracking list maintained by 
45.9 	the commissioner must report the following for each new agency project:
45.10 	(1) name of the agency and title of the project;
45.11 	(2) a brief description of the project and its purposes;
45.12 	(3) the extent to which the project has been implemented; and
45.13 	(4) the amount of money that has been spent on the project.
45.14 		Subd. 4.Timing and reporting. The commissioner must display the information 
45.15 	required by subdivision 3 on the department's Web site. The list shall be maintained in a 
45.16 	widely available and common document format such as a spreadsheet, that does not 
45.17 	require any new costs to develop. The commissioner must report this information to the 
45.18 	chairs of the house of representatives Ways and Means Committee and senate Finance 
45.19 	Committee quarterly, and must update the information on the Web site at least quarterly.

45.20 	Sec. 26. Minnesota Statutes 2014, section 16A.065, is amended to read:
45.21 	16A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES 
45.22 	DOCUMENTS.
45.23 	Notwithstanding section 16A.41, subdivision 1, the commissioner may allow an 
45.24 	agency to make advance deposits or payments for software or software maintenance 
45.25 	services for state-owned or leased electronic data processing equipment, for information 
45.26 	technology hosting services, for sole source maintenance agreements where it is not 
45.27 	cost-effective to pay in arrears, for exhibit booth space or boat slip rental when required 
45.28 	by the renter to guarantee the availability of space, for registration fees where advance 
45.29 	payment is required or advance payment discount is provided, and for newspaper, 
45.30 	magazine, and other subscription fees customarily paid for in advance. The commissioner 
45.31 	may also allow advance deposits by any department with the Library of Congress and 
45.32 	federal Supervisor of Documents for items to be purchased from those federal agencies.

45.33 	Sec. 27. Minnesota Statutes 2014, section 16A.103, is amended by adding a 
45.34 	subdivision to read:
46.1 		Subd. 1h.Revenue uncertainty information. The commissioner shall report 
46.2 	to the legislature within 14 days of a forecast  under subdivision 1 on uncertainty in 
46.3 	Minnesota's general fund revenue projections. The report shall present information on: (1) 
46.4 	the estimated range of forecast error for revenues and (2) the data and methods used to 
46.5 	construct those measurements.

46.6 	Sec. 28. Minnesota Statutes 2014, section 16A.11, is amended by adding a subdivision 
46.7 	to read:
46.8 		Subd. 3d.Consideration of general incentives.  In supplement to, and under the 
46.9 	same deadline as, the governor's budget submission under subdivision 3, the commissioner 
46.10 	shall submit a report identifying each general incentive for which an evaluation was 
46.11 	completed under section 3.9735 in accordance with this section since the governor's 
46.12 	previous budget submission. For each evaluated incentive, the commissioner's report shall 
46.13 	include a recommendation for whether the incentive should be continued or modified, 
46.14 	or whether the state would be better served by using other incentives or strategies to 
46.15 	achieve the incentive's goals. The commissioner's report must include the rationale for 
46.16 	each recommendation.

46.17 	Sec. 29. Minnesota Statutes 2014, section 16A.11, is amended by adding a subdivision 
46.18 	to read:
46.19 		Subd. 3e.Consideration of best practices for exclusive incentives. If a new 
46.20 	analysis of best practices for exclusive incentives under section 3.9735 has been 
46.21 	completed since the governor's previous budget submission, the commissioner's report 
46.22 	under subdivision 3d shall include recommendations for when and how Minnesota should 
46.23 	offer and manage exclusive incentives in the future and how they should be structured. 
46.24 	The commissioner's report must include the rationale for each recommendation.

46.25 	Sec. 30. Minnesota Statutes 2014, section 16A.1283, is amended to read:
46.26 	16A.1283 LEGISLATIVE APPROVAL REQUIRED FOR FEES.
46.27 	(a) Notwithstanding any law to the contrary, an executive branch state agency may 
46.28 	not impose a new fee or increase an existing fee unless the new fee or increase is approved 
46.29 	by law.  An agency must not propose a fee or fine increase of more than ten percent 
46.30 	in a biennium over the same fee or fine in law at the start of the same biennium. For 
46.31 	purposes of this section, a fee is any charge for goods, services, regulation, or licensure, 
46.32 	and, notwithstanding paragraph (b), clause (3), includes charges for admission to or for 
46.33 	use of public facilities owned by the state.
47.1 	(b) This section does not apply to:
47.2 	(1) charges billed within or between state agencies, or billed to federal agencies;
47.3 	(2) the Minnesota State Colleges and Universities system;
47.4 	(3) charges for goods and services provided for the direct and primary use of a 
47.5 	private individual, business, or other entity;
47.6 	(4) charges that authorize use of state-owned lands and minerals administered by 
47.7 	the commissioner of natural resources by the issuance of leases, easements, cooperative 
47.8 	farming agreements, and land and water crossing licenses and charges for sales of 
47.9 	state-owned lands administered by the commissioner of natural resources; or
47.10 	(5) state park fees and charges established by commissioner's order.
47.11 	(c) An executive branch agency may reduce a fee that was set by rule before July 
47.12 	1, 2001, without legislative approval. Chapter 14 does not apply to fee reductions under 
47.13 	this paragraph.

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

47.15 	Sec. 31. Minnesota Statutes 2014, section 16B.24, is amended by adding a subdivision 
47.16 	to read:
47.17 		Subd. 12.State band. The commissioner must provide free rehearsal and storage 
47.18 	space in the same building in the Capitol Area to an entity known as the Minnesota 
47.19 	State Band, which is a tax exempt organization under section 501(c)(3) of the Internal 
47.20 	Revenue Code.

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

47.22 	Sec. 32. Minnesota Statutes 2014, section 16B.335, subdivision 1, is amended to read:
47.23 		Subdivision 1.Construction and major remodeling. (a) The commissioner, or 
47.24 	any other recipient to whom an appropriation is made to acquire or better public lands 
47.25 	or buildings or other public improvements of a capital nature, must not prepare final 
47.26 	plans and specifications for any construction, major remodeling, or land acquisition in 
47.27 	anticipation of which the appropriation was made until the agency that will use the 
47.28 	project has presented the program plan and cost estimates for all elements necessary to 
47.29 	complete the project to the chair of the senate Finance Committee and the chair of the 
47.30 	house of representatives Ways and Means Committee and the chairs have made their 
47.31 	recommendations, and the chair and ranking minority member of the senate Capital 
47.32 	Investment Committee and the chair and ranking minority member of the house of 
47.33 	representatives Capital Investment Committee are notified. "Construction or major 
48.1 	remodeling" means construction of a new building, a substantial addition to an existing 
48.2 	building, or a substantial change to the interior configuration of an existing building. The 
48.3 	presentation must note any significant changes in the work that will be done, or in its cost, 
48.4 	since the appropriation for the project was enacted or from the predesign submittal. The 
48.5 	program plans and estimates must be presented for review at least two weeks before a 
48.6 	recommendation is needed. The recommendations are advisory only. Failure or refusal to 
48.7 	make a recommendation is considered a negative recommendation. 
48.8 	(b) The chairs and ranking minority members of the senate Finance and Capital 
48.9 	Investment Committees and, the house of representatives Capital Investment and Ways 
48.10 	and Means Committees, and the house of representatives and senate budget committees or 
48.11 	divisions with jurisdiction over the agency that will use the project must also be notified 
48.12 	whenever there is a substantial change in a construction or major remodeling project, or in 
48.13 	its cost. This notice must include the nature and reason for the change, and the anticipated 
48.14 	cost of the change. The notice must be given no later than 10 days after signing a change 
48.15 	order or other document authorizing a change in the project, or if there is not a change 
48.16 	order or other document, no later than 10 days after the project owner becomes aware of a 
48.17 	substantial change in the project or its cost.
48.18 	(b) (c) Capital projects exempt from the requirements of this subdivision in 
48.19 	paragraph (a) to seek recommendations before preparing final plans and specifications 
48.20 	include demolition or decommissioning of state assets, hazardous material projects, utility 
48.21 	infrastructure projects, environmental testing, parking lots, parking structures, park and 
48.22 	ride facilities, bus rapid transit stations, light rail lines, passenger rail projects, exterior 
48.23 	lighting, fencing, highway rest areas, truck stations, storage facilities not consisting 
48.24 	primarily of offices or heated work areas, roads, bridges, trails, pathways, campgrounds, 
48.25 	athletic fields, dams, floodwater retention systems, water access sites, harbors, sewer 
48.26 	separation projects, water and wastewater facilities, port development projects for which 
48.27 	the commissioner of transportation has entered into an assistance agreement under section 
48.28 	457A.04, ice centers, a local government project with a construction cost of less than 
48.29 	$1,500,000, or any other capital project with a construction cost of less than $750,000. 
48.30 	The requirements in paragraph (b) to give notice of changes applies to these projects.

48.31 	Sec. 33. Minnesota Statutes 2014, section 16B.371, is amended to read:
48.32 	16B.371 ASSISTANCE TO SMALL AGENCIES.
48.33 	(a) The commissioner may must provide administrative support services to a small 
48.34 	agencies agency requesting these services. To promote efficiency and cost-effective use 
48.35 	of state resources, and to improve financial controls, the commissioner may require 
49.1 	a small agency to receive administrative support services through the Department of 
49.2 	Administration or through another agency designated by the commissioner. Services 
49.3 	subject to this section include finance, accounting, payroll, purchasing, human resources, 
49.4 	and other services designated by the commissioner. The commissioner may determine 
49.5 	what constitutes a small agency for purposes of this section. The commissioner, in 
49.6 	consultation with the commissioner of management and budget and small agencies, shall 
49.7 	evaluate small agencies' needs for administrative support services. If the commissioner 
49.8 	provides administrative support services to a small agency, the commissioner must enter 
49.9 	into a service level agreement with the agency, specifying the services to be provided and 
49.10 	the costs and anticipated outcomes of the services.
49.11 	(b) The Chicano Latino Affairs Council, the Council on Black Minnesotans, the 
49.12 	Council on Asian-Pacific Minnesotans, the Indian Affairs Council, and the Minnesota 
49.13 	State Council on Disability must use the services specified in paragraph (a).
49.14 	(c) The commissioner of administration may assess agencies for services it provides 
49.15 	under this section. The amounts assessed are appropriated to the commissioner.
49.16 	(d) For agencies covered in this section, the commissioner has the authority to require 
49.17 	the agency to comply with applicable state finance, accounting, payroll, purchasing, and 
49.18 	human resources policies. The agencies served retain the ownership and responsibility for 
49.19 	spending decisions and for ongoing implementation of appropriate business operations.

49.20 	Sec. 34. [16B.4805] ACCOMMODATION REIMBURSEMENT.
49.21 		Subdivision 1.Definitions. (a) "Reasonable accommodation" as used in this section  
49.22 	has the meaning given in section 363A.08.
49.23 	(b) "State agency" as used in this section has the  meaning given in section 16A.011, 
49.24 	subdivision 12. 
49.25 	(c) "Reasonable accommodations eligible for reimbursement" as used in this section 
49.26 	means: 
49.27 	(1) reasonable accommodations provided to applicants for employment; 
49.28 	(2) reasonable accommodations for employees for services that will need to be 
49.29 	provided on a periodic or ongoing basis; or 
49.30 	(3) reasonable accommodations that involve onetime expenses that total more than 
49.31 	$1,000 for an employee in a fiscal year.
49.32 		Subd. 2.Reimbursement for making reasonable accommodation. The 
49.33 	commissioner of administration shall reimburse state agencies for expenses incurred in 
49.34 	making reasonable accommodations eligible for reimbursement for agency employees and 
50.1 	applicants for employment to the extent that funds are available in the accommodation 
50.2 	account established under subdivision 3 for this purpose.
50.3 		Subd. 3.Accommodation account established. The accommodation account 
50.4 	is created as an account in the special revenue fund for reimbursing state agencies for 
50.5 	expenses incurred in providing reasonable accommodations eligible for reimbursement for 
50.6 	agency employees and applicants for agency employment.
50.7 		Subd. 4.Administration costs. The commissioner may use up to 15 percent of the 
50.8 	biennial appropriation for administration of this section.
50.9 		Subd. 5.Notification. By August 1, 2015, or within 30 days of final enactment, 
50.10 	whichever is later, and each year thereafter by June 30, the commissioner of administration 
50.11 	must notify state agencies that reimbursement for expenses incurred to make reasonable 
50.12 	accommodations eligible for reimbursement for agency employees and applicants for 
50.13 	agency employment is available under this section.
50.14 		Subd. 6.Report. By January 31 of each year, the commissioner of administration 
50.15 	must report to the chairs and ranking minority members of the house of representatives 
50.16 	and the senate committees with jurisdiction over state government finance on the use of  
50.17 	the central accommodation fund during the prior calendar year. The report must include: 
50.18 	(1) the number and type of accommodations requested; 
50.19 	(2) the cost of accommodations requested; 
50.20 	(3) the state agencies from which the requests were made; 
50.21 	(4) the number of requests made for employees and the number of requests for 
50.22 	applicants for employment; 
50.23 	(5) the number and type of accommodations that were not provided; 
50.24 	(6) any remaining balance left in the fund; 
50.25 	(7) if the fund was depleted, the date on which funds were exhausted and the 
50.26 	number, type, and cost of accommodations that were not reimbursed to state agencies; and 
50.27 	(8) a description of how the fund was promoted to state agencies.
50.28 		Subd. 7.Funding. The commissioner of management and budget must determine 
50.29 	the amount of money to be deposited in the accommodation account each fiscal year. 
50.30 	The commissioner must require each executive agency to make payments into the 
50.31 	account from amounts appropriated for agency operations. The commissioner must 
50.32 	implement policies and procedures to divide this amount among executive agencies. If  
50.33 	the commissioner determines that it is not practical for an agency to make payments 
50.34 	into a central account due to legal restrictions on use of the agency's appropriations, 
50.35 	the commissioner shall require the agency to set aside money within its own operating 
51.1 	funds, to be used only for purposes of this section. The amounts paid into the account are 
51.2 	appropriated to the commissioner of administration for purposes of this section.

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

51.5 	Sec. 35. Minnesota Statutes 2014, section 16B.97, subdivision 1, is amended to read:
51.6 		Subdivision 1.Grant agreement. (a) A grant agreement is a written instrument or 
51.7 	electronic document defining a legal relationship between a granting agency and a grantee 
51.8 	when the principal purpose of the relationship is to transfer cash or something of value 
51.9 	to the recipient to support a public purpose authorized by law instead of acquiring by 
51.10 	professional or technical contract, purchase, lease, or barter property or services for the 
51.11 	direct benefit or use of the granting agency.
51.12 	(b) This section does not apply to capital project grants to political subdivisions as 
51.13 	defined by section 16A.86.

51.14 	Sec. 36. Minnesota Statutes 2014, section 16B.97, is amended by adding a subdivision 
51.15 	to read:
51.16 		Subd. 6.Commerce grants. The office must monitor grants made by the 
51.17 	Department of Commerce.

51.18 	Sec. 37. [16B.991] TERMINATION OF GRANT.
51.19 	Each grant agreement subject to sections 16B.97 and 16B.98 must provide that the 
51.20 	agreement will immediately be terminated if:
51.21 	(1) the recipient is convicted of a criminal offense relating to a state grant agreement; 
51.22 	or
51.23 	(2) the agency entering into the grant agreement or the commissioner of 
51.24 	administration determines that the grant recipient is under investigation by a federal 
51.25 	agency, a state agency, or a local law enforcement agency for matters relating to 
51.26 	administration of a state grant.

51.27 	Sec. 38. [16B.992] NO FEES FOR GENERAL FUND GRANT 
51.28 	ADMINISTRATION.
51.29 	An agency may not charge a recipient of a grant from the general fund a fee and 
51.30 	may not deduct money from the grant to pay administrative expenses incurred by the 
51.31 	agency in administering the grant.

52.1 	Sec. 39. Minnesota Statutes 2014, section 16C.03, subdivision 16, is amended to read:
52.2 		Subd. 16.Delegation of duties. (a) The commissioner may delegate duties imposed 
52.3 	by this chapter to the head of an agency and to any subordinate of the agency head. At 
52.4 	least once every three years the commissioner must audit use of authority under this 
52.5 	chapter by each employee whom the commissioner has delegated duties.
52.6 	(b) The commissioner must develop guidelines for agencies and employees to whom 
52.7 	authority is delegated under this chapter that protect state legal interests. These guidelines 
52.8 	may provide for review by the commissioner when a specific contract has potential to put 
52.9 	the state's legal interests at risk.

52.10 	Sec. 40. Minnesota Statutes 2014, section 16C.16, subdivision 6a, is amended to read:
52.11 		Subd. 6a.Veteran-owned small businesses. (a) Except when mandated by the 
52.12 	federal government as a condition of receiving federal funds, the commissioner shall 
52.13 	award up to a six percent preference, but no less than the percentage awarded to any 
52.14 	other group under this section, in the amount bid on state procurement to certified small 
52.15 	businesses that are majority-owned and operated by veterans.
52.16 	(b) The purpose of this designation is to facilitate the transition of veterans from 
52.17 	military to civilian life, and to help compensate veterans for their sacrifices, including but 
52.18 	not limited to their sacrifice of health and time, to the state and nation during their military 
52.19 	service, as well as to enhance economic development within Minnesota.
52.20 	(c) Before the commissioner certifies that a small business is majority-owned and 
52.21 	operated by a veteran, the commissioner of veterans affairs must verify that the owner of 
52.22 	the small business is a veteran, as defined in section 197.447.

52.23 	Sec. 41. Minnesota Statutes 2014, section 16C.19, is amended to read:
52.24 	16C.19 ELIGIBILITY; RULES.
52.25 	(a) A small business wishing to participate in the programs under section 16C.16, 
52.26 	subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt 
52.27 	by rule standards and procedures for certifying that small targeted group businesses, 
52.28 	small businesses located in economically disadvantaged areas, and veteran-owned small 
52.29 	businesses are eligible to participate under the requirements of sections 16C.16 to 16C.21. 
52.30 	The commissioner shall adopt by rule standards and procedures for hearing appeals and 
52.31 	grievances and other rules necessary to carry out the duties set forth in sections 16C.16
52.32 	to 16C.21.
53.1 	(b) The commissioner may make rules which exclude or limit the participation of 
53.2 	nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers, 
53.3 	manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
53.4 	(c) The commissioner may make rules that set time limits and other eligibility limits 
53.5 	on business participation in programs under sections 16C.16 to 16C.21.
53.6 	(d) Notwithstanding paragraph (c) (a), for purposes of sections 16C.16 to 16C.21, a 
53.7 	veteran-owned small business, the principal place of business of which is in Minnesota, 
53.8 	is certified if:
53.9 	(1) it has been verified by the United States Department of Veterans Affairs as 
53.10 	being either a veteran-owned small business or a service-disabled veteran-owned small 
53.11 	business, in accordance with Public Law 109-461 and Code of Federal Regulations, title 
53.12 	38, part 74.; or
53.13 	(2) the veteran-owned small business supplies the commissioner with proof that the 
53.14 	small business is majority-owned and operated by:
53.15 	(i) a veteran as defined in section 197.447; or
53.16 	(ii) a veteran with a service-connected disability, as determined at any time by the 
53.17 	United States Department of Veterans Affairs.
53.18 	(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying 
53.19 	veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may 
53.20 	be read to include veteran-owned small businesses. In addition to the documentation 
53.21 	required in Minnesota Rules, part 1230.1700, the veteran owner must have been 
53.22 	discharged under honorable conditions from active service, as indicated by the veteran 
53.23 	owner's most current United States Department of Defense form DD-214.
53.24 	(f) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a 
53.25 	minority- or woman-owned small business, the principal place of business of which is 
53.26 	in Minnesota, is certified if it has been certified by the Minnesota unified certification 
53.27 	program under the provisions of Code of Federal Regulations, title 49, part 26.

53.28 	Sec. 42. Minnesota Statutes 2014, section 16E.01, is amended to read:
53.29 	16E.01 OFFICE OF MN.IT SERVICES.
53.30 		Subdivision 1.Creation; chief information officer. The Office of MN.IT Services, 
53.31 	referred to in this chapter as the "office," is an agency in the executive branch headed by 
53.32 	a commissioner, who also is the state chief information officer. The appointment of the 
53.33 	commissioner is subject to the advice and consent of the senate under section 15.066.
53.34 		Subd. 1a.Responsibilities. The office shall provide oversight, leadership, and 
53.35 	direction for information and telecommunications technology policy and the management, 
54.1 	delivery, accessibility, and security of information and telecommunications technology 
54.2 	systems and services in Minnesota the executive branch of state government. The office 
54.3 	shall manage strategic investments in information and telecommunications technology 
54.4 	systems and services to encourage the development of a technically literate society, to 
54.5 	ensure sufficient access to and efficient delivery of accessible state government services, 
54.6 	and to maximize benefits for the state government as an enterprise.
54.7 		Subd. 2.Discretionary powers. The office may:
54.8 	(1) enter into contracts for goods or services with public or private organizations 
54.9 	and charge fees for services it provides;
54.10 	(2) apply for, receive, and expend money from public agencies;
54.11 	(3) apply for, accept, and disburse grants and other aids from the federal government 
54.12 	and other public or private sources;
54.13 	(4) enter into contracts with agencies of the federal government, local governmental 
54.14 	units, the University of Minnesota and other educational institutions, and private persons 
54.15 	and other nongovernmental organizations as necessary to perform its statutory duties;
54.16 	(5) sponsor and conduct conferences and studies, collect and disseminate information, 
54.17 	and issue reports relating to information and communications technology issues; and
54.18 	(6) review the technology infrastructure of regions of the state and cooperate with 
54.19 	and make recommendations to the governor, legislature, state agencies, local governments, 
54.20 	local technology development agencies, the federal government, private businesses, 
54.21 	and individuals for the realization of information and communications technology 
54.22 	infrastructure development potential;
54.23 	(7) sponsor, support, and facilitate innovative and collaborative economic and 
54.24 	community development and government services projects, including technology 
54.25 	initiatives related to culture and the arts, with public and private organizations; and
54.26 	(8) (6) review and recommend alternative sourcing strategies for state information 
54.27 	and communications systems.
54.28 		Subd. 3.Duties. (a) The office shall:
54.29 	(1) manage the efficient and effective use of available federal, state, local, and 
54.30 	public-private resources to develop statewide information and telecommunications 
54.31 	technology systems and services and its infrastructure;
54.32 	(2) approve state agency and intergovernmental information and telecommunications 
54.33 	technology systems and services development efforts involving state or intergovernmental 
54.34 	funding, including federal funding, provide information to the legislature regarding 
54.35 	projects reviewed, and recommend projects for inclusion in the governor's budget under 
54.36 	section 16A.11;
55.1 	(3) ensure cooperation and collaboration among state and local governments in 
55.2 	developing intergovernmental information and telecommunications technology systems 
55.3 	and services, and define the structure and responsibilities of a representative governance 
55.4 	structure;
55.5 	(4) cooperate and collaborate with the legislative and judicial branches in the 
55.6 	development of information and communications systems in those branches;
55.7 	(5) continue the development of North Star, the state's official comprehensive online 
55.8 	service and information initiative;
55.9 	(6) promote and collaborate with the state's agencies in the state's transition to an 
55.10 	effectively competitive telecommunications market;
55.11 	(7) collaborate with entities carrying out education and lifelong learning initiatives 
55.12 	to assist Minnesotans in developing technical literacy and obtaining access to ongoing 
55.13 	learning resources;
55.14 	(8) (7) promote and coordinate public information access and network initiatives, 
55.15 	consistent with chapter 13, to connect Minnesota's citizens and communities to each 
55.16 	other, to their governments, and to the world;
55.17 	(9) (8) promote and coordinate electronic commerce initiatives to ensure that 
55.18 	Minnesota businesses and citizens can successfully compete in the global economy;
55.19 	(10) (9) manage and promote the regular and periodic reinvestment in the information 
55.20 	and telecommunications technology systems and services infrastructure so that state and 
55.21 	local government agencies can effectively and efficiently serve their customers;
55.22 	(11) (10) facilitate the cooperative development of and ensure compliance with 
55.23 	standards and policies for information and telecommunications technology systems 
55.24 	and services, electronic data practices and privacy, and electronic commerce among 
55.25 	international, national, state, and local public and private organizations;
55.26 	(12) (11) eliminate unnecessary duplication of existing information and 
55.27 	telecommunications technology systems and services provided by state agencies;
55.28 	(13) (12) identify, sponsor, develop, and execute shared information and 
55.29 	telecommunications technology projects and ongoing operations;
55.30 	(14) (13) ensure overall security of the state's information and technology systems 
55.31 	and services; and
55.32 	(15) (14) manage and direct compliance with accessibility standards for informational 
55.33 	technology, including hardware, software, Web sites, online forms, and online surveys.
55.34 	(b) The chief information officer, in consultation with the commissioner of 
55.35 	management and budget, must determine when it is cost-effective for agencies to develop 
55.36 	and use shared information and telecommunications technology systems and services for 
56.1 	the delivery of electronic government services. The chief information officer may require 
56.2 	agencies to use shared information and telecommunications technology systems and 
56.3 	services. The chief information officer shall establish reimbursement rates in cooperation 
56.4 	with the commissioner of management and budget to be billed to agencies and other 
56.5 	governmental entities sufficient to cover the actual development, operating, maintenance, 
56.6 	and administrative costs of the shared systems. The methodology for billing may include 
56.7 	the use of interagency agreements, or other means as allowed by law.
56.8 	(c) A state agency that has an information and telecommunications technology 
56.9 	project with a total expected project cost of more than $1,000,000 $100,000, whether 
56.10 	funded as part of the biennial budget or by any other means, shall register with the office 
56.11 	by submitting basic project startup documentation, as specified by the chief information 
56.12 	officer in both format and content, before any project funding is requested or committed 
56.13 	and before the project commences. State agency project leaders must demonstrate that 
56.14 	the project will be properly managed, provide updates to the project documentation 
56.15 	as changes are proposed, and regularly report on the current status of the project on a 
56.16 	schedule agreed to with the chief information officer.
56.17 	(d) The chief information officer shall monitor progress on any active information 
56.18 	and telecommunications technology project with a total expected project cost of more than 
56.19 	$5,000,000 and report on the performance of the project in comparison with the plans for 
56.20 	the project in terms of time, scope, and budget. The chief information officer may conduct 
56.21 	an independent project audit of the project. The audit analysis and evaluation of the 
56.22 	projects subject to paragraph (c) must be presented to agency executive sponsors, the 
56.23 	project governance bodies, and the chief information officer. All reports and responses 
56.24 	must become part of the project record. The chief information officer must prepare a 
56.25 	monthly progress report for each active information and telecommunications technology 
56.26 	project over $1,000,000. The report must be provided to the technology advisory council 
56.27 	and must be available on the office's Web site.
56.28 	(e) For any active information and telecommunications technology project with a 
56.29 	total expected project cost of more than $10,000,000, the state agency must perform an 
56.30 	annual independent audit that conforms to published project audit principles promulgated 
56.31 	by the office.
56.32 	(f) The chief information officer shall report by January 15 of each year to the 
56.33 	chairs and ranking minority members of the legislative committees and divisions with 
56.34 	jurisdiction over the office regarding projects the office has reviewed under paragraph (a), 
56.35 	clause (13). The report must include the reasons for the determinations made in the review 
56.36 	of each project and a description of its current status.
57.1 		Subd. 4.Limits. The office may not enter into any new general or project contracts 
57.2 	or other agreements to provide services to political subdivisions. The office may continue 
57.3 	to collaborate with and enter into agreements with local subdivisions to create information 
57.4 	technology infrastructure, provide connectivity, coordinate government-to-government 
57.5 	communications, and provide security support. This subdivision does not prevent political 
57.6 	subdivisions from purchasing goods or services from outside vendors through state 
57.7 	contracts, and does not prevent political subdivisions from accessing geospatial data 
57.8 	maintained by the office.

57.9 	EFFECTIVE DATE. This section is effective July 1, 2015. The office may not 
57.10 	enter into a new contract or other agreement or renew an existing contract or agreement 
57.11 	to provide services to political subdivisions in a manner prohibited by subdivision 4 on 
57.12 	or after July 1, 2015. The office must end existing contracts and agreements to provide 
57.13 	services prohibited by subdivision 4 as soon as this can be done without the office 
57.14 	incurring legal liability, and as soon as affected political subdivisions are able to find other 
57.15 	sources to provide the services provided by the office.

57.16 	Sec. 43. Minnesota Statutes 2014, section 16E.016, is amended to read:
57.17 	16E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY 
57.18 	SERVICES AND EQUIPMENT.
57.19 	(a) The chief information officer is responsible for providing or entering into 
57.20 	managed services contracts for the provision, improvement, and development of the 
57.21 	following information technology systems and services to state agencies:
57.22 	(1) state data centers;
57.23 	(2) mainframes including system software;
57.24 	(3) servers including system software;
57.25 	(4) desktops including system software;
57.26 	(5) laptop computers including system software;
57.27 	(6) a data network including system software;
57.28 	(7) database, electronic mail, office systems, reporting, and other standard software 
57.29 	tools;
57.30 	(8) business application software and related technical support services;
57.31 	(9) help desk for the components listed in clauses (1) to (8);
57.32 	(10) maintenance, problem resolution, and break-fix for the components listed in 
57.33 	clauses (1) to (8);
58.1 	(11) regular upgrades and replacement for the components listed in clauses (1) 
58.2 	to (8); and
58.3 	(12) network-connected output devices.
58.4 	(b) All state agency employees whose work primarily involves functions specified in 
58.5 	paragraph (a) are employees of the Office of MN.IT Services. This includes employees 
58.6 	who directly perform the functions in paragraph (a), as well as employees whose work 
58.7 	primarily involves managing, supervising, or providing administrative services or support 
58.8 	services to employees who directly perform these functions. The chief information officer 
58.9 	may assign employees of the office to perform work exclusively for another state agency.
58.10 	(c) Subject to sections 16C.08 and 16C.09, the chief information officer may allow a 
58.11 	state agency to obtain services specified in paragraph (a) through a contract with an outside 
58.12 	vendor when the chief information officer and the agency head agree that a contract would 
58.13 	provide best value, as defined in section 16C.02, under the service-level agreement.A 
58.14 	state agency must enter into a service-level agreement with the chief information officer 
58.15 	for provision of services specified in paragraph (a), or must obtain some or all of these 
58.16 	services through an outside vendor. Before entering into a service-level agreement or 
58.17 	outside vendor contract, an agency must solicit proposals from the office and from at 
58.18 	least one outside vendor. If the cost of the proposal from the office is more than six 
58.19 	percent higher than the cost of a proposal from an outside vendor, the agency may enter 
58.20 	into a contract with an outside vendor, notwithstanding sections 16C.08, subdivision 
58.21 	2, clause (1); 16C.09, paragraph (a), clause (1); and 43A.047. The chief information 
58.22 	officer must require that agency contracts with outside vendors ensure that systems and 
58.23 	services are compatible with standards established by the Office of MN.IT Services. The 
58.24 	standards may include analysis of differences in future cost uncertainties, compliance with 
58.25 	security requirements, compliance with hardware and service standards common in other 
58.26 	state offices, ability to comply with legal, accessibility, and transparency requirements, 
58.27 	and compliance with quality standards common to other state offices. The term of a 
58.28 	service-level agreement or a contract under this paragraph is subject to the limits in section 
58.29 	16C.06, subdivision 3b. However, the chief information officer may provide that the term 
58.30 	of the first agreement or contract entered into after the effective date of this section may be 
58.31 	longer, as the chief information officer determines is necessary to establish a system under 
58.32 	which agency agreements and contracts will expire according to a staggered schedule. 
58.33 	A service-level agreement or contract may not be for a term of more than six years. A 
58.34 	contract longer than four years must be followed by a contract of less than four years.
59.1 	(d) The chief information officer may authorize a state agency office located outside 
59.2 	of the seven-county metropolitan area to solicit proposals from MN.IT services and from 
59.3 	an outside vendor separately from the rest of the agency.
59.4 	(e) An agency may not enter into a contract for information technology systems or 
59.5 	services of more than $100,000 with an outside vendor without approval of the chief 
59.6 	information officer.
59.7 	(f) The Minnesota State Retirement System, the Public Employees Retirement 
59.8 	Association, the Teachers Retirement Association, the State Board of Investment, the 
59.9 	Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide 
59.10 	Radio Board are not state agencies for purposes of this section.

59.11 	Sec. 44. [16E.034] ANNUAL REPORT ON IT SPENDING.
59.12 	(a) The chief information officer, in consultation with the commissioner of 
59.13 	management and budget, must report by September 1 each year on:
59.14 	(1) total state agency spending on information technology in the prior fiscal year, and  
59.15 	planned state agency spending on information technology in the current fiscal year; and
59.16 	(2) individual state agency spending on information technology in the prior fiscal 
59.17 	year, and  planned spending on information technology in the current fiscal year.
59.18 	(b) The report in paragraph (a) on total state agency and individual agency spending 
59.19 	and proposed spending must show amounts spent and anticipated to be spent in each of 
59.20 	the following categories:
59.21 	(1) new technology projects, or enhancement of existing projects, of more than 
59.22 	$100,000;
59.23 	(2) business as usual and minor enhancements; and
59.24 	(3) infrastructure and operations.
59.25 	(c) The information reported on infrastructure and operations in paragraph (b), 
59.26 	clause (3), must be further divided, by agency, into the following categories:
59.27 	(1) servers;
59.28 	(2) messaging and collaboration;
59.29 	(3) mainframe;
59.30 	(4) storage;
59.31 	(5) database, including administration;
59.32 	(6) technical support;
59.33 	(7) information security;
59.34 	(8) directory administration;
59.35 	(9) architecture;
60.1 	(10) monitoring; and
60.2 	(11) change management.

60.3 	Sec. 45. Minnesota Statutes 2014, section 16E.0465, is amended to read:
60.4 	16E.0465 TECHNOLOGY APPROVAL.
60.5 		Subdivision 1.Application. This section applies to an appropriation of more than 
60.6 	$1,000,000 $100,000 of state or federal funds to a state agency for any information and 
60.7 	telecommunications technology project or for any phase of such a project, device, or 
60.8 	system. For purposes of this section, an appropriation of state or federal funds to a state 
60.9 	agency includes an appropriation:
60.10 	(1) to a constitutional officer;
60.11 	(2) for a project that includes both a state agency and units of local government; and
60.12 	(3) to a state agency for grants to be made to other entities.
60.13 		Subd. 2.Required review and approval. (a) A state agency receiving an 
60.14 	appropriation  of more than $500,000 for an information and telecommunications 
60.15 	technology project subject to this section must divide the project into phases.
60.16 	(b) The commissioner of management and budget may not authorize the 
60.17 	encumbrance or expenditure of an appropriation of state funds to a state agency for any:
60.18 	(1) a project if the project is subject to this section, but not divided into phases; or
60.19 	(2) a phase of a project, device, or system subject to this section, unless the Office of 
60.20 	MN.IT Services has reviewed the project or each phase of the project, device, or system, 
60.21 	and based on this review, the chief information officer has determined for each project 
60.22 	or phase that:
60.23 	(1) (i) the project is compatible with the state information architecture and other 
60.24 	policies and standards established by the chief information officer;
60.25 	(2) (ii) the agency is able to accomplish the goals of the phase of the project with the 
60.26 	funds appropriated; and
60.27 	(3) (iii) the project supports the enterprise information technology strategy.
60.28 		Subd. 4.Monitor progress. The chief information officer shall monitor progress on 
60.29 	any active information and telecommunications technology project with a total expected 
60.30 	project cost of more than $5,000,000 and report on the performance of the project in 
60.31 	comparison with the plans for the project in terms of time, scope, and budget. The chief 
60.32 	information officer may conduct an independent project audit of the project. The audit 
60.33 	analysis and evaluation of the projects must be presented to agency executive sponsors, 
60.34 	the project governance bodies, and the chief information officer. All reports and responses 
60.35 	must become part of the project record.

61.1 	Sec. 46. Minnesota Statutes 2014, section 16E.14, subdivision 3, is amended to read:
61.2 		Subd. 3.Reimbursements. Except as specifically provided otherwise by law, each 
61.3 	agency shall reimburse the MN.IT services revolving fund for the cost of all services, 
61.4 	supplies, materials, labor, employee development and training, and depreciation of 
61.5 	equipment, including reasonable overhead costs, which the chief information officer is 
61.6 	authorized and directed to furnish an agency. The chief information officer shall report the 
61.7 	rates to be charged for the revolving fund no later than July 1 each year to the chair of the 
61.8 	committee or division in the senate and house of representatives with primary jurisdiction 
61.9 	over the budget of the Office of MN.IT Services.

61.10 	Sec. 47. Minnesota Statutes 2014, section 16E.145, is amended to read:
61.11 	16E.145 INFORMATION TECHNOLOGY APPROPRIATION.
61.12 	An appropriation  of more than $100,000 for a state agency information and 
61.13 	telecommunications technology project must be made to the chief information officer. The 
61.14 	chief information officer must manage and disburse the appropriation on behalf of the 
61.15 	sponsoring state agency. Any appropriation for an information and telecommunications 
61.16 	technology project made to a state agency other than the Office of MN.IT Services is 
61.17 	transferred to the chief information officer.

61.18 	Sec. 48. Minnesota Statutes 2014, section 16E.19, is amended by adding a subdivision 
61.19 	to read:
61.20 		Subd. 3.Data storage. The chief information officer must establish criteria for 
61.21 	storage of state agency data outside of data centers operated by the chief information 
61.22 	officer. These criteria must include thresholds for when requests of outside data storage 
61.23 	must be approved by the chief information officer.

61.24 	Sec. 49. [43A.035] LIMIT ON NUMBER OF FULL-TIME EQUIVALENT 
61.25 	EMPLOYEES.
61.26 	The total number of full-time equivalent employees employed in all executive 
61.27 	branch agencies may not exceed 35,927. The commissioner of management and budget 
61.28 	may forbid an executive agency from hiring a new employee or from filling a vacancy as 
61.29 	the commissioner determines is necessary to ensure compliance with this section. Any 
61.30 	reductions in staff should prioritize protecting client-facing health care workers, corrections 
61.31 	officers, public safety workers, and mental health workers. As a means of achieving 
61.32 	compliance with this requirement, the commissioner may authorize an agency to provide 
61.33 	an early retirement incentive to an executive branch employee, under which the state will 
62.1 	continue to make the employer contribution for health insurance after the employee has 
62.2 	terminated state service. The commissioner must prescribe eligibility requirements and the 
62.3 	maximum duration of the payments. For purposes of this section, an "executive agency" 
62.4 	does not include the Minnesota State Colleges and Universities or statewide pension plans.

62.5 	Sec. 50. [138.912] HEALTHY EATING, HERE AT HOME.
62.6 		Subdivision 1.Establishment. The healthy eating, here at home program is 
62.7 	established to provide incentives for low-income Minnesotans to use federal Supplemental 
62.8 	Nutrition Assistance Program (SNAP) benefits for healthy purchases at Minnesota-based 
62.9 	farmers' markets.
62.10 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
62.11 	(b) "Healthy eating, here at home" means a program administered by the Minnesota 
62.12 	Humanities Center to provide incentives for low-income Minnesotans to use SNAP 
62.13 	benefits for healthy purchases at Minnesota-based farmers' markets.
62.14 	(c) "Healthy purchases" means SNAP-eligible foods.
62.15 	(d) "Minnesota-based farmers' market" means a physical market as defined in section 
62.16 	28A.151, subdivision 1, paragraph (b), and also includes mobile markets.
62.17 	(e) "Voucher" means a physical or electronic credit.
62.18 	(f) "Eligible household" means an individual or family that is determined to be a 
62.19 	recipient of SNAP.
62.20 		Subd. 3.Grants. The Minnesota Humanities Center shall allocate grant funds to 
62.21 	nonprofit organizations that work with Minnesota-based farmers' markets to provide up 
62.22 	to $10 vouchers to SNAP participants who use electronic benefits transfer (EBT) cards 
62.23 	for healthy purchases. Funds may also be provided for vouchers distributed through 
62.24 	nonprofit organizations engaged in healthy cooking and food education outreach to 
62.25 	eligible households for use at farmers' markets. Funds appropriated under this section may 
62.26 	not be used for healthy cooking classes or food education outreach. When awarding 
62.27 	grants, the Minnesota Humanities Center must consider how the nonprofit organizations 
62.28 	will achieve geographic balance, including specific efforts to reach eligible households 
62.29 	across the state, and the organizations' capacity to manage the programming and outreach.
62.30 		Subd. 4.Household eligibility; participation. To be eligible for a healthy eating, 
62.31 	here at home voucher, an eligible household must meet the Minnesota SNAP eligibility 
62.32 	requirements under section 256D.051.
62.33 		Subd. 5.Permissible uses; information provided. An eligible household may use 
62.34 	the voucher toward healthy purchases at Minnesota-based farmers' markets. Every eligible 
62.35 	household that receives a voucher must be informed of the allowable uses of the voucher.
63.1 		Subd. 6.Program reporting. The nonprofit organizations that receive grant funds 
63.2 	must report annually to the Minnesota Humanities Center with information regarding the 
63.3 	operation of the program, including the number of vouchers issued and the number of 
63.4 	people served. To the extent practicable, the nonprofit organizations must report on the 
63.5 	usage of the vouchers and evaluate the program's effectiveness.
63.6 		Subd. 7.Grocery inclusion. The commissioner of human services must submit a 
63.7 	waiver request to the federal United States Department of Agriculture seeking approval 
63.8 	for the inclusion of Minnesota grocery stores in this program so that SNAP participants 
63.9 	may use the vouchers for healthy produce at grocery stores. Grocery store participation is 
63.10 	voluntary and a grocery store's associated administrative costs will not be reimbursed.

63.11 	Sec. 51. Minnesota Statutes 2014, section 148.57, is amended by adding a subdivision 
63.12 	to read:
63.13 		Subd. 5.Expedited and temporary licensing for former and current members 
63.14 	of the military. (a) Applicants seeking licensure according to this subdivision must be:
63.15 	(1) an active duty military member;
63.16 	(2) the spouse of an active duty military member; or
63.17 	(3) a veteran who has left service in the two years preceding the date of license 
63.18 	application, and has confirmation of an honorable or general discharge status.
63.19 	(b) A qualified applicant under this subdivision must provide evidence of:
63.20 	(1) a current valid license, certificate, or permit in another state without history of 
63.21 	disciplinary action by a regulatory authority in the other state; and
63.22 	(2) a current criminal background study without a criminal conviction that is 
63.23 	determined by the board to adversely affect the applicant's ability to become licensed.
63.24 	(c) A temporary license issued under this subdivision is effective for six months 
63.25 	from the initial temporary licensure date.
63.26 	(d) During the temporary license period, the individual shall complete the licensed 
63.27 	optometrist application for licensure.
63.28 	(e) In order to remain licensed after the expiration of the temporary license, an 
63.29 	individual must meet the requirements in section 148.57, subdivisions 1 and 2.

63.30 	Sec. 52. Minnesota Statutes 2014, section 148.624, subdivision 5, is amended to read:
63.31 		Subd. 5.Expedited and temporary licensing for former and current members 
63.32 	of the military permit. The board shall issue a temporary permit to members of the 
63.33 	military in accordance with section 197.4552. (a) Applicants seeking licensure according 
63.34 	to this subdivision must be:
64.1 	(1) an active duty military member;
64.2 	(2) the spouse of an active duty military member; or
64.3 	(3) a veteran who has left service in the two years preceding the date of license 
64.4 	application, and has confirmation of an honorable or general discharge status.
64.5 	(b) A qualified applicant under this subdivision must provide evidence of:
64.6 	(1) a current valid license in another state without history of disciplinary action by a 
64.7 	regulatory authority in the other state; and
64.8 	(2) a current criminal background study without a criminal conviction that is 
64.9 	determined by the board to adversely affect the applicant's ability to become licensed.
64.10 	(c) A temporary license issued under this subdivision is effective for six months 
64.11 	from the initial temporary licensure date.
64.12 	(d) During the temporary license period, the individual shall complete the licensed 
64.13 	dietitian or nutritionist application for licensure.
64.14 	(e) In order to remain licensed after the expiration of the temporary license, an 
64.15 	individual must meet the full licensure requirements.
64.16 	(f) The fee for the temporary permit license is $250.

64.17 	Sec. 53. Minnesota Statutes 2014, section 148B.33, is amended by adding a 
64.18 	subdivision to read:
64.19 		Subd. 3.Expedited and temporary licensing for former and current members 
64.20 	of the military. (a) Applicants seeking licensure according to this subdivision must be:
64.21 	(1) an active duty military member; 
64.22 	(2) the spouse of an active duty military member; or
64.23 	(3) a veteran who has left service in the two years preceding the date of license 
64.24 	application, and has confirmation of an honorable or general discharge status.
64.25 	(b) A qualified applicant under this subdivision must provide evidence of:
64.26 	(1) a current valid license, certificate, or permit in another state without history of 
64.27 	disciplinary action by a regulatory authority in the other state; and
64.28 	(2) a current criminal background study without a criminal conviction that is 
64.29 	determined by the board to adversely affect the applicant's ability to become licensed.
64.30 	(c) A temporary license issued under this subdivision is effective for six months 
64.31 	from the initial temporary licensure date.
64.32 	(d) During the temporary license period, the individual shall complete the licensed 
64.33 	marriage and family therapist application for licensure.
64.34 	(e) In order to remain licensed after the expiration of the temporary license, an 
64.35 	individual must meet the requirements in subdivisions 1 and 2.

65.1 	Sec. 54. Minnesota Statutes 2014, section 148B.53, is amended by adding a 
65.2 	subdivision to read:
65.3 		Subd. 1a.Expedited and temporary licensing for former and current members 
65.4 	of the military. (a) Applicants seeking licensure according to this subdivision must be:
65.5 	(1) an active duty military member; 
65.6 	(2) the spouse of an active duty military member; or
65.7 	(3) a veteran who has left service in the two years preceding the date of license 
65.8 	application, and has confirmation of an honorable or general discharge status.
65.9 	(b) A qualified applicant under this subdivision must provide evidence of:
65.10 	(1) a current valid license, certificate, or permit in another state without history of 
65.11 	disciplinary action by a regulatory authority in the other state; and
65.12 	(2) a current criminal background study without a criminal conviction that is 
65.13 	determined by the board to adversely affect the applicant's ability to become licensed.
65.14 	(c) A temporary license issued under this subdivision is effective for one year from 
65.15 	the initial licensure date.
65.16 	(d) During the temporary license period, the individual shall complete the licensed 
65.17 	professional counselor application for licensure.
65.18 	(e) In order to remain licensed after the expiration of the temporary license, an 
65.19 	individual must meet the requirements in subdivision 1, paragraphs (a) and (b).

65.20 	Sec. 55. Minnesota Statutes 2014, section 148B.5301, is amended by adding a 
65.21 	subdivision to read:
65.22 		Subd. 4a.Expedited and temporary licensing for former and current members 
65.23 	of the military. (a) Applicants seeking licensure according to this subdivision must be:
65.24 	(1) an active duty military member; 
65.25 	(2) the spouse of an active duty military member; or
65.26 	(3) a veteran who has left service in the two years preceding the date of license 
65.27 	application, and has confirmation of an honorable or general discharge status.
65.28 	(b) A qualified applicant under paragraph (a) must provide evidence of:
65.29 	(1) a current valid license, certificate, or permit in another state without history of 
65.30 	disciplinary action by a regulatory authority in the other state; and
65.31 	(2) a current criminal background study without a criminal conviction that is 
65.32 	determined by the board to adversely affect the applicant's ability to become licensed.
65.33 	(c) A temporary license issued under this subdivision is effective for one year from 
65.34 	the initial licensure date.
66.1 	(d) During the temporary license period, the individual shall complete the licensed 
66.2 	professional clinical counselor application for licensure.
66.3 	(e) In order to remain licensed after the expiration of the temporary license, an 
66.4 	individual must meet the requirements in subdivisions 1 and 2.

66.5 	Sec. 56. Minnesota Statutes 2014, section 148F.025, is amended by adding a 
66.6 	subdivision to read:
66.7 		Subd. 5.Expedited and temporary licensing for former and current members 
66.8 	of the military. (a) Applicants seeking licensure according to this subdivision must be:
66.9 	(1) an active duty military member; 
66.10 	(2) the spouse of an active duty military member; or
66.11 	(3) a veteran who has left service in the two years preceding the date of license 
66.12 	application, and has confirmation of an honorable or general discharge status.
66.13 	(b) Applicants are required to comply with subdivisions 1 and 4.
66.14 	(c) A qualified applicant under paragraph (a) must provide evidence of:
66.15 	(1) a current valid license, certificate, or permit in another state without history of 
66.16 	disciplinary action by a regulatory authority in the other state; and
66.17 	(2) a current criminal background study without a criminal conviction that is 
66.18 	determined by the board to adversely affect the applicant's ability to become licensed.
66.19 	(d) A temporary license issued under this subdivision is effective for two years from 
66.20 	the initial licensure date.
66.21 	(e) During the temporary license period, the individual shall complete the application 
66.22 	for licensure required in subdivision 1.
66.23 	(f) In order to remain licensed after the expiration of the temporary license, an 
66.24 	individual must meet the requirements in subdivisions 2 and 3.

66.25 	Sec. 57. Minnesota Statutes 2014, section 153.16, subdivision 1, is amended to read:
66.26 		Subdivision 1.License requirements. The board shall issue a license to practice 
66.27 	podiatric medicine to a person who meets the following requirements:
66.28 	(a) The applicant for a license shall file a written notarized application on forms 
66.29 	provided by the board, showing to the board's satisfaction that the applicant is of good 
66.30 	moral character and satisfies the requirements of this section.
66.31 	(b) The applicant shall present evidence satisfactory to the board of being a graduate 
66.32 	of a podiatric medical school approved by the board based upon its faculty, curriculum, 
66.33 	facilities, accreditation by a recognized national accrediting organization approved by the 
66.34 	board, and other relevant factors.
67.1 	(c) The applicant must have received a passing score on each part of the national board 
67.2 	examinations, parts one and two, prepared and graded by the National Board of Podiatric 
67.3 	Medical Examiners. The passing score for each part of the national board examinations, 
67.4 	parts one and two, is as defined by the National Board of Podiatric Medical Examiners.
67.5 	(d) Applicants graduating after 1986 from a podiatric medical school shall present 
67.6 	evidence of successful completion of a residency program approved by a national 
67.7 	accrediting podiatric medicine organization.
67.8 	(e) The applicant shall appear in person before the board or its designated 
67.9 	representative to show that the applicant satisfies the requirements of this section, 
67.10 	including knowledge of laws, rules, and ethics pertaining to the practice of podiatric 
67.11 	medicine. The board may establish as internal operating procedures the procedures or 
67.12 	requirements for the applicant's personal presentation. Upon completion of all other 
67.13 	application requirements, a doctor of podiatric medicine applying for a temporary military 
67.14 	license has six months in which to comply with this subdivision.
67.15 	(f) The applicant shall pay a fee established by the board by rule. The fee shall 
67.16 	not be refunded.
67.17 	(g) The applicant must not have engaged in conduct warranting disciplinary action 
67.18 	against a licensee. If the applicant does not satisfy the requirements of this paragraph, 
67.19 	the board may refuse to issue a license unless it determines that the public will be 
67.20 	protected through issuance of a license with conditions and limitations the board considers 
67.21 	appropriate.
67.22 	(h) Upon payment of a fee as the board may require, an applicant who fails to pass 
67.23 	an examination and is refused a license is entitled to reexamination within one year of 
67.24 	the board's refusal to issue the license. No more than two reexaminations are allowed 
67.25 	without a new application for a license.

67.26 	Sec. 58. Minnesota Statutes 2014, section 153.16, subdivision 4, is amended to read:
67.27 		Subd. 4.Temporary military permit license. The board shall establish a temporary 
67.28 	permit in accordance with section 197.4552. The fee for the temporary military permit is 
67.29 	$250. (a) The board shall issue an expedited license to practice podiatric medicine to an 
67.30 	applicant who meets the following requirements:
67.31 	(1) is an active duty military member;
67.32 	(2) is the spouse of an active duty military member; or
67.33 	(3) is a veteran who has left service in the two years preceding the date of license 
67.34 	application, and has confirmation of an honorable or general discharge status.
67.35 	(b) A qualified applicant under this subdivision must provide evidence of:
68.1 	(1) a current, valid license in another state without history of disciplinary action by a 
68.2 	regulatory authority in the other state; and
68.3 	(2) a current criminal background study without a criminal conviction that is 
68.4 	determined by the board to adversely affect the applicant's ability to become licensed.
68.5 	(c) The board shall issue a license for up to six months to a doctor of podiatric 
68.6 	medicine eligible for licensure under this subdivision. Doctors of podiatric medicine 
68.7 	licensed in another state who have complied with all other requirements may receive a 
68.8 	temporary license valid for up to six months. No extension is available.
68.9 	(d) A temporary license issued under this subdivision permits a qualified individual 
68.10 	to perform podiatric medicine for a limited length of time as determined by the licensing 
68.11 	board. During the temporary license period, the individual shall complete the full 
68.12 	application procedure and be approved as required by applicable law.
68.13 	(e) The fee for the temporary military license is $250.

68.14 	Sec. 59. Minnesota Statutes 2014, section 154.003, is amended to read:
68.15 	154.003 FEES.
68.16 	(a) The fees collected, as required in this chapter, chapter 214, and the rules of the 
68.17 	board, shall be paid to the board. The board shall deposit the fees in the general fund 
68.18 	in the state treasury.
68.19 	(b) The board shall charge the following fees:
68.20 	(1) examination and certificate, registered barber, $85;
68.21 	(2) retake of written examination, registered barber, $10;
68.22 	(3) examination and certificate, apprentice, $80;
68.23 	(4) retake of written examination, apprentice, $10;
68.24 	(5) examination, instructor, $180;
68.25 	(6) certificate, instructor, $65;
68.26 	(7) temporary teacher or apprentice permit, $80;
68.27 	(8) temporary registered barber, military, $85;
68.28 	(9) temporary barber instructor, military, $180;
68.29 	(10) temporary apprentice barber, military, $80;
68.30 	(11) renewal of registration, registered barber, $80;
68.31 	(9) (12) renewal of registration, apprentice, $70;
68.32 	(10) (13) renewal of registration, instructor, $80;
68.33 	(11) (14) renewal of temporary teacher permit, $65;
68.34 	(12) (15) student permit, $45;
68.35 	(13) (16) renewal of student permit, $25;
69.1 	(14) (17) initial shop registration, $85;
69.2 	(15) (18) initial school registration, $1,030;
69.3 	(16) (19) renewal shop registration, $85;
69.4 	(17) (20) renewal school registration, $280;
69.5 	(18) (21) restoration of registered barber registration, $95;
69.6 	(19) (22) restoration of apprentice registration, $90;
69.7 	(20) (23) restoration of shop registration, $105;
69.8 	(21) (24) change of ownership or location, $55;
69.9 	(22) (25) duplicate registration, $40;
69.10 	(23) (26) home study course, $75;
69.11 	(24) (27) letter of registration verification, $25; and
69.12 	(25) (28) reinspection, $100.

69.13 	Sec. 60. Minnesota Statutes 2014, section 154.11, subdivision 3, is amended to read:
69.14 		Subd. 3.Temporary military license permits. (a) In accordance with section 
69.15 	197.4552, the board shall establish issue a temporary license:
69.16 	(1) permit for apprentice barbers and master;
69.17 	(2) certificate for registered barbers; and a temporary permit for apprentices in 
69.18 	accordance with section 197.4552. The fee for a temporary license under this subdivision 
69.19 	for a master barber is $85. The fee for a temporary license under this subdivision for a 
69.20 	barber is $180. The fee for a temporary permit under this subdivision for an apprentice is 
69.21 	$80.
69.22 	(3) certificate for registered barber instructors.
69.23 	(b) Fees for temporary military permits and certificates of registration under this 
69.24 	subdivision are listed under section 154.003.
69.25 	(c) Permits or certificates of registration issued under this subdivision are valid 
69.26 	for one year from the date of issuance, after which the individual must complete a full 
69.27 	application as required by section 197.4552.

69.28 	Sec. 61. Minnesota Statutes 2014, section 190.19, subdivision 2a, is amended to read:
69.29 		Subd. 2a.Uses; veterans. (a) Money appropriated to the Department of Veterans 
69.30 	Affairs from the Minnesota "Support Our Troops" account may be used for:
69.31 	(1) grants to veterans service organizations;
69.32 	(2) outreach to underserved veterans;
69.33 	(3) providing services and programs for veterans and their families; and
70.1 	(4) transfers to the vehicle services account for Gold Star license plates under 
70.2 	section 168.1253.;
70.3 	(5) grants of up to $100,000 to any organization approved by the commissioner of 
70.4 	veterans affairs for the purpose of supporting and improving the lives of veterans and 
70.5 	their families; and
70.6 	(6) grants to an eligible foundation. 
70.7 	(b) For purposes of this subdivision, "eligible foundation" includes any organization 
70.8 	that:
70.9 	(1) is a tax-exempt organization under section 501(c) of the Internal Revenue 
70.10 	Code; and
70.11 	(2) is a nonprofit corporation under chapter 317A and the organization's articles of 
70.12 	incorporation specify that a purpose of the organization includes (i) providing assistance 
70.13 	to veterans and their families or (ii) enhancing the lives of veterans and their families.

70.14 	Sec. 62. Minnesota Statutes 2014, section 192.38, subdivision 1, is amended to read:
70.15 		Subdivision 1.Temporary emergency relief. If any officer or enlisted member 
70.16 	of the military forces is wounded or otherwise disabled, dies from disease contracted or 
70.17 	injuries received, or is killed while in state active service as defined in section 190.05, 
70.18 	subdivision 5a, the officer or member, or in the case of death the officer's or member's 
70.19 	dependent spouse, child, or parent, may be provided with immediate temporary relief as 
70.20 	necessary in cases of severe hardship, in an amount to be determined by the adjutant general 
70.21 	and approved by the governor or a death gratuity payment equal to the amount allowed for 
70.22 	service members in a federal active service status. All payments under this subdivision 
70.23 	shall be made from appropriations for the maintenance of the state military forces 
70.24 	emergency services. The adjutant general shall notify the Department of Management and 
70.25 	Budget of any payments made pursuant to this subdivision and the amount of it shall be 
70.26 	subtracted from any award made by the Department of Management and Budget.

70.27 	Sec. 63. Minnesota Statutes 2014, section 192.501, is amended by adding a subdivision 
70.28 	to read:
70.29 		Subd. 1d.Reclassification bonus program. (a) The adjutant general may establish 
70.30 	a program to provide a bonus to eligible members of the Minnesota National Guard who 
70.31 	complete training that results in the award of a new military occupational specialty or 
70.32 	air force specialty code in specialties that are identified by the Adjutant General to be 
70.33 	necessary for the enhanced readiness of the Minnesota National Guard.
70.34 	(b) Eligibility for the bonus is limited to a member of the National Guard who:
71.1 	(1) is serving satisfactorily as determined by the adjutant general;
71.2 	(2) has 16 or fewer years of service creditable for retirement; and
71.3 	(3) undergoes military training deemed by the adjutant general as sufficiently 
71.4 	important to the readiness of the National Guard or a unit of the National Guard to warrant 
71.5 	the payment of a bonus in an amount to generally encourage the member's participation in 
71.6 	such training. The adjutant general may, within the limitations of this paragraph and other 
71.7 	applicable laws, determine additional eligibility criteria for the bonus, and must specify all 
71.8 	of the criteria in regulations and publish changes as necessary.
71.9 	(c) The bonus payments must be made on a schedule that is determined and 
71.10 	published in department regulations by the adjutant general.
71.11 	(d) If a member fails to complete a term of reenlistment or an obligated term of 
71.12 	commissioned service for which a bonus was paid, the adjutant general may seek to 
71.13 	recoup a prorated amount of the bonus as determined by the adjutant general.

71.14 	Sec. 64. Minnesota Statutes 2014, section 197.46, is amended to read:
71.15 	197.46 VETERANS PREFERENCE ACT; REMOVAL FORBIDDEN; RIGHT 
71.16 	OF MANDAMUS.
71.17 	(a) Any person whose rights may be in any way prejudiced contrary to any of the 
71.18 	provisions of this section, shall be entitled to a writ of mandamus to remedy the wrong. 
71.19 	No person holding a position by appointment or employment in the several counties, 
71.20 	cities, towns, school districts and all other political subdivisions in the state, who is a 
71.21 	veteran separated from the military service under honorable conditions, shall be removed 
71.22 	from such position or employment except for incompetency or misconduct shown after a 
71.23 	hearing, upon due notice, upon stated charges, in writing.
71.24 	(b) Any veteran who has been notified of the intent to discharge the veteran from an 
71.25 	appointed position or employment pursuant to this section shall be notified in writing of 
71.26 	such intent to discharge and of the veteran's right to request a hearing within 60 days of 
71.27 	receipt of the notice of intent to discharge. The failure of a veteran to request a hearing 
71.28 	within the provided 60-day period shall constitute a waiver of the right to a hearing. Such 
71.29 	failure shall also waive all other available legal remedies for reinstatement.
71.30 	Request for a hearing concerning such a discharge shall be made in writing and 
71.31 	submitted by mail or personal service to the employment office of the concerned employer 
71.32 	or other appropriate office or person. If the veteran requests a hearing under this section, 
71.33 	such written request must also contain the veteran's election to be heard by a civil service 
71.34 	board or commission, a merit authority, or a three-person panel as defined in paragraph 
72.1 	(c). If the veteran fails to identify the veteran's election, the governmental subdivision 
72.2 	may select the hearing body.
72.3 	In all governmental subdivisions having an established civil service board or 
72.4 	commission, or merit system authority, such hearing for removal or discharge shall be 
72.5 	held before such civil service board or commission or merit system authority. Where no 
72.6 	such civil service board or commission or merit system authority exists, such hearing 
72.7 	shall be held by (c) Hearings under this section shall be held by a civil service board or 
72.8 	commission, a merit system authority, or a board of three persons appointed as follows: 
72.9 	one by the governmental subdivision, one by the veteran, and the third by the two so 
72.10 	selected. In the event that all governmental subdivisions having an established civil service 
72.11 	board or commission or merit system authority, the veteran shall elect which body will 
72.12 	hold the hearing. If the hearing is authorized to be veteran chooses to have the hearing held 
72.13 	before a three-person board, the governmental subdivision's notice of intent to discharge 
72.14 	shall state that the veteran must respond within 60 days of receipt of the notice of intent to 
72.15 	discharge, and provide in writing to the governmental subdivision the name, United States 
72.16 	mailing address, and telephone number of the veteran's selected representative for the 
72.17 	three-person board. The failure of a veteran to submit the name, address, and telephone 
72.18 	number of the veteran's selected representative to the governmental subdivision by mail or 
72.19 	by personal service within the provided notice's 60-day period, shall constitute a waiver of 
72.20 	the veteran's right to the hearing and all other legal remedies available for reinstatement of 
72.21 	the veteran's employment position. In the event the two persons selected by the veteran 
72.22 	and governmental subdivision do not appoint the third person within ten days after the 
72.23 	appointment of the last of the two, then the judge of the district court of the county 
72.24 	wherein the proceeding is pending, or if there be more than one judge in said county then 
72.25 	any judge in chambers, shall have jurisdiction to appoint, and upon application of either or 
72.26 	both of the two so selected shall appoint, the third person to the board and the person so 
72.27 	appointed by the judge with the two first selected shall constitute the board. 
72.28 	(d) Either the veteran or the governmental subdivision may appeal from the decision 
72.29 	of the board upon the charges to the district court by causing written notice of appeal, 
72.30 	stating the grounds thereof, to be served upon the other party within 15 days after notice of 
72.31 	the decision and by filing the original notice of appeal with proof of service thereof in the 
72.32 	office of the court administrator of the district court within ten days after service thereof. 
72.33 	Nothing in section 197.455 or this section shall be construed to apply to the position of 
72.34 	private secretary, superintendent of schools, or one chief deputy of any elected official 
72.35 	or head of a department, or to any person holding a strictly confidential relation to the 
72.36 	appointing officer. Nothing in this section shall be construed to apply to the position of 
73.1 	teacher. The burden of establishing such relationship shall be upon the appointing officer 
73.2 	in all proceedings and actions relating thereto.
73.3 	(e) The governmental subdivision shall bear all administrative costs associated with 
73.4 	the hearing. If the veteran  prevails, the governmental subdivision shall pay the veteran's 
73.5 	reasonable attorney fees.
73.6 	(f) All officers, boards, commissions, and employees shall conform to, comply with, 
73.7 	and aid in all proper ways in carrying into effect the provisions of section 197.455 and this 
73.8 	section notwithstanding any laws, charter provisions, ordinances or rules to the contrary. 
73.9 	Any willful violation of such sections by officers, officials, or employees is a misdemeanor.

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

73.12 	Sec. 65. [197.987] HONOR AND REMEMBER FLAG.
73.13 		Subdivision 1.Legislative findings. The legislature of the state of Minnesota finds 
73.14 	and determines that:
73.15 	(1) since the Revolutionary War, more than 1,000,000 members of the United States 
73.16 	armed forces have paid the ultimate price by sacrificing their lives in active military 
73.17 	service for the United States of America;
73.18 	(2) the contribution made by those fallen members of the armed forces is deserving 
73.19 	of state and national recognition; and
73.20 	(3) the Honor and Remember Flag is an appropriate symbol that acknowledges the 
73.21 	selfless sacrifice of those members of the United States armed forces. 
73.22 		Subd. 2.Designation. The Honor and Remember Flag created by Honor and 
73.23 	Remember, Inc., is designated as the symbol of our state's concern and commitment to 
73.24 	honoring and remembering the lives of all members of the United States armed forces who 
73.25 	have lost their lives in the line of duty while serving honorably in active military service 
73.26 	in the United States armed forces or of a service-connected cause due to or aggravated 
73.27 	by that service, as determined by the United States Department of Defense or the United 
73.28 	States Department of Veterans Affairs.
73.29 		Subd. 3.Suggested days for flag display. (a) The chief administrator of each 
73.30 	governmental building or facility within this state, as defined in paragraph (b), is 
73.31 	encouraged to display the Honor and Remember Flag on the following days each year:
73.32 	(1) Armed Forces Day, the third Saturday in May;
73.33 	(2) Flag Day, June 14;
73.34 	(3) July 2nd and July 3rd, in remembrance of the 262 soldiers of the 1st Regiment 
73.35 	Minnesota Volunteer Infantry who, at the Battle of Gettysburg during the American Civil 
74.1 	War, fought so gallantly and successfully to repulse two major Confederate attacks on the 
74.2 	main Union line, suffering over 80 percent casualties, thereby turning the battle and the 
74.3 	war and helping to preserve the Union itself at that pivotal moment in our nation's history;
74.4 	(4) July 4th, Independence Day;
74.5 	(5) the third Friday of September, National POW/MIA Recognition Day;
74.6 	(6) November 11, Veterans Day;
74.7 	(7) July 27, Korean War Armistice Day; and
74.8 	(8) March 29, Vietnam Veterans Day.
74.9 	(b) For purposes of this section, "governmental building or facility within this state" 
74.10 	means the following locations:
74.11 	(1) the Minnesota State Capitol, the Office of the Governor and each other Minnesota 
74.12 	constitutional office, the chambers of the Minnesota Senate and the Minnesota House of 
74.13 	Representatives, the Minnesota Supreme Court Building and each Minnesota District 
74.14 	Court House, as well as any official state of Minnesota veterans memorial, Minnesota 
74.15 	veterans home, or Minnesota veterans cemetery;
74.16 	(2) to the extent authorized by federal law and regulation, any United States veterans 
74.17 	cemetery, veterans memorial, post office, or other federal building, as well as any United 
74.18 	States Department of Veterans Affairs medical center, veterans service center, and veterans 
74.19 	community-based outreach center; and
74.20 	(3) any appropriate local government building or facility, as determined by the 
74.21 	governing body of that local government.
74.22 		Subd. 4.Limitation. This section may not be construed or interpreted to require 
74.23 	any employee to report to work solely for the purpose of providing for the display of the 
74.24 	Honor and Remember Flag or any other flag.
74.25 		Subd. 5.Implementation. If a governmental building or facility within this state 
74.26 	opts to display the Honor and Remember Flag, the chief administrator of that facility shall 
74.27 	prescribe procedures necessary for the display.
74.28 		Subd. 6.Flag donation. Any named public office or public official may accept a 
74.29 	donation of one or more Honor and Remember Flags for the purpose of this section.

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

74.31 	Sec. 66. Minnesota Statutes 2014, section 211B.37, is amended to read:
74.32 	211B.37 COSTS ASSESSED.
74.33 	Except as otherwise provided in section 211B.36, subdivision 3, the chief 
74.34 	administrative law judge shall assess the cost of considering complaints filed under section 
75.1 	211B.32 as provided in this section. Costs of complaints relating to a statewide ballot 
75.2 	question or an election for a statewide or legislative office must be assessed against the 
75.3 	appropriation from the general fund to the general account of the state elections campaign 
75.4 	account in section 10A.31, subdivision 4 paid from appropriations to the office for this 
75.5 	purpose. Costs of complaints relating to any other ballot question or elective office must 
75.6 	be paid from appropriations to the office for this purpose.

75.7 	Sec. 67. Minnesota Statutes 2014, section 240.01, subdivision 22, is amended to read:
75.8 		Subd. 22.Racing season. "Racing season" means that portion of the calendar 
75.9 	year starting at the beginning of the day of the first live horse race conducted by the 
75.10 	licensee and concluding at the end of the day of the last live horse race conducted by 
75.11 	the licensee in any year.
75.12 	For purposes of this chapter, the racing season begins before the first Saturday in 
75.13 	May and continues for not less than 25 consecutive weeks.

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

75.15 	Sec. 68. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 
75.16 	to read:
75.17 		Subd. 28.Takeout. "Takeout" means the total amount of money, excluding 
75.18 	breakage, withheld from each pari-mutuel pool, as authorized by statute or rule.

75.19 	Sec. 69. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 
75.20 	to read:
75.21 		Subd. 29.Handle "Handle" means the aggregate of all pari-mutuel pools, excluding 
75.22 	refundable wagers or cancellations.

75.23 	Sec. 70. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 
75.24 	to read:
75.25 		Subd. 30.Mixed meet. "Mixed meet" means a racing day or series of racing days 
75.26 	on which the racing of more than one breed of horse occurs.

75.27 	Sec. 71. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 
75.28 	to read:
75.29 		Subd. 31.Banked. "Banked" means any game of chance that is played with the 
75.30 	house as a participant in the game, where the house takes on all players, collects from all 
75.31 	losers, and pays all winners, and the house can win.

76.1 	Sec. 72. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 
76.2 	to read:
76.3 		Subd. 32.Steward. A "steward" means an official described in section 240.16. The 
76.4 	term steward includes the terms "judge," "chief steward," and "presiding judge," and 
76.5 	applies to stewards and judges of the commission or a class B licensee, but not to other 
76.6 	racing officials, such as paddock or placement judges, who are employees or agents of 
76.7 	a class B licensee.

76.8 	Sec. 73. Minnesota Statutes 2014, section 240.011, is amended to read:
76.9 	240.011 APPOINTMENT OF DIRECTOR.
76.10 	The governor shall appoint the director of the Minnesota Racing Commission, 
76.11 	who serves in the unclassified service at the governor's pleasure. The director must be 
76.12 	a person qualified by experience in the administration and regulation of pari-mutuel 
76.13 	racing and training to possess the skills necessary to discharge the duties of the director. 
76.14 	The governor must select a director from a list of one or more names submitted by the 
76.15 	Minnesota Racing Commission.

76.16 	Sec. 74. Minnesota Statutes 2014, section 240.03, is amended to read:
76.17 	240.03 COMMISSION POWERS AND DUTIES.
76.18 	The commission has the following powers and duties:
76.19 	(1) to regulate horse racing in Minnesota to ensure that it is conducted in the public 
76.20 	interest;
76.21 	(2) to issue licenses as provided in this chapter;
76.22 	(3) to enforce all laws and rules governing horse racing;
76.23 	(4) to collect and distribute all taxes provided for in this chapter;
76.24 	(5) to conduct necessary investigations and inquiries and to issue subpoenas to 
76.25 	compel the attendance of witnesses and the submission of information, documents, and 
76.26 	records, and other evidence it deems necessary to carry out its duties;
76.27 	(6) to supervise the conduct of pari-mutuel betting on horse racing;
76.28 	(7) to employ and supervise personnel under this chapter;
76.29 	(8) to determine the number of racing days to be held in the state and at each 
76.30 	licensed racetrack;
76.31 	(9) to take all necessary steps to ensure the integrity of racing in Minnesota; and
76.32 	(10) to impose fees on the racing and card playing industries sufficient to recover the 
76.33 	operating costs of the commission with the approval of the legislature according to section 
76.34 	16A.1283. Notwithstanding section 16A.1283, when the legislature is not in session, the 
77.1 	commissioner of management and budget may grant interim approval for any new fees 
77.2 	or adjustments to existing fees that are not statutorily specified, until such time as the 
77.3 	legislature reconvenes and acts upon the new fees or adjustments. As part of its biennial 
77.4 	budget request, the commission must propose changes to its fees that will be sufficient to 
77.5 	recover the operating costs of the commission.

77.6 	Sec. 75. Minnesota Statutes 2014, section 240.08, subdivision 2, is amended to read:
77.7 		Subd. 2.Application. (a) An application for a class C license must be on a form 
77.8 	the commission prescribes and must be accompanied by an affidavit of qualification 
77.9 	that the applicant:
77.10 	(a) (1) is not in default in the payment of an obligation or debt to the state under 
77.11 	Laws 1983, chapter 214;
77.12 	(b) (2) does not have a felony conviction of record in a state or federal court and 
77.13 	does not have a state or federal felony charge pending;
77.14 	(c) (3) is not and never has been connected with or engaged in an illegal business;
77.15 	(d) (4) has never been found guilty of fraud or misrepresentation in connection 
77.16 	with racing or breeding;
77.17 	(e) (5) has never been found guilty of a violation of law or rule relating to horse 
77.18 	racing, pari-mutuel betting or any other form of gambling which is a serious violation 
77.19 	as defined by the commission's rules; and
77.20 	(f) (6) has never been found to have knowingly violated a rule or an order of the 
77.21 	commission or a law or rule of Minnesota or another jurisdiction relating to horse racing, 
77.22 	pari-mutuel betting, or any other form of gambling.
77.23 	(b) The application must also contain an irrevocable consent statement, to be signed 
77.24 	by the applicant, which states that suits and actions relating to the subject matter of the 
77.25 	application or acts or omissions arising from it may be commenced against the applicant in 
77.26 	any court of competent jurisdiction in this state by the service on the secretary of state of 
77.27 	any summons, process, or pleading authorized by the laws of this state. If any summons, 
77.28 	process, or pleading is served upon the secretary of state, it must be by duplicate copies. 
77.29 	One copy must be retained in the Office of the Secretary of State and the other copy must 
77.30 	be forwarded immediately by certified mail to the address of the applicant, as shown by 
77.31 	the records of the commission.

77.32 	Sec. 76. Minnesota Statutes 2014, section 240.08, subdivision 4, is amended to read:
77.33 		Subd. 4.License issuance and renewal. If the commission determines that 
77.34 	the applicant is qualified for the occupation for which licensing is sought and will 
78.1 	not adversely affect the public health, welfare, and safety or the integrity of racing in 
78.2 	Minnesota, it may issue a class C license to the applicant. If it makes a similar finding for 
78.3 	a renewal of a class C license it may renew the license. Class C licenses are effective for 
78.4 	one year. until December 31 of the calendar year for which they are issued. Certain types 
78.5 	of class C licenses, to be determined by the commission, are effective until December 31 
78.6 	of the third calendar year for which they have been issued.

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

78.8 	Sec. 77. Minnesota Statutes 2014, section 240.08, subdivision 5, is amended to read:
78.9 		Subd. 5.Revocation and suspension. (a) The commission may revoke a class C 
78.10 	license for a violation of law or rule which in the commission's opinion adversely affects 
78.11 	the integrity of horse racing in Minnesota, the public health, welfare, or safety, or for an 
78.12 	intentional false statement made in a license application.
78.13 	The commission may suspend a class C license for up to one year for a violation of 
78.14 	law, order or rule.
78.15 	The commission may delegate to its designated agents the authority to impose 
78.16 	suspensions of class C licenses, and the revocation or suspension of a class C license may 
78.17 	be appealed to the commission according to its rules.
78.18 	(b) A license revocation or suspension for more than 90 days is a contested case 
78.19 	under sections 14.57 to 14.69 of the Administrative Procedure Act and is in addition to 
78.20 	criminal penalties imposed for a violation of law or rule. The commission may summarily 
78.21 	suspend a license for more than 90 days prior to a contested case hearing where it is 
78.22 	necessary to ensure the integrity of racing or to protect the public health, welfare, or safety. 
78.23 	A contested case hearing must be held within 20 30 days of the summary suspension and 
78.24 	the administrative law judge's report must be issued within 20 30 days from the close of 
78.25 	the hearing record. In all cases involving summary suspension the commission must issue 
78.26 	its final decision within 30 days from receipt of the report of the administrative law judge 
78.27 	and subsequent exceptions and argument under section 14.61.

78.28 	Sec. 78. Minnesota Statutes 2014, section 240.10, is amended to read:
78.29 	240.10 LICENSE FEES.
78.30 	The fee for a class A license is $253,000 per year and must be remitted on July 1. 
78.31 	The fee for a class B license is $500 for each assigned racing day and $100 for each day 
78.32 	on which simulcasting is authorized and must be remitted on July 1. Included herein are 
78.33 	all days assigned to be conducted after January 1, 2003. The fee for a class D license is 
79.1 	$50 for each assigned racing day on which racing is actually conducted. Fees imposed on 
79.2 	class D licenses must be paid to the commission at a time and in a manner as provided by 
79.3 	rule of the commission.
79.4 	The commission shall by rule establish an annual license fee for each occupation it 
79.5 	licenses under section 240.08but no annual fee for a class C license may exceed $100.

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

79.7 	Sec. 79. Minnesota Statutes 2014, section 240.13, subdivision 5, is amended to read:
79.8 		Subd. 5.Purses. (a) From the amounts deducted from all pari-mutuel pools by a 
79.9 	licensee, an amount equal to not less than the following percentages of all money in all 
79.10 	pools must be set aside by the licensee and used for purses for races conducted by the 
79.11 	licensee, provided that a licensee may agree by contract with an organization representing 
79.12 	a majority of the horsepersons racing the breed involved to set aside amounts in addition 
79.13 	to the following percentages, if the contract is in writing and filed with the commission:
79.14 	(1) for live races conducted at a class A facility, and for races that are part of full 
79.15 	racing card simulcasting that takes place within the time period of the live races, 8.4 
79.16 	percent of handle;
79.17 	(2) for simulcasts conducted during the racing season other than as provided for in 
79.18 	clause (1), 50 percent of the takeout remaining after deduction for taxes on pari-mutuel 
79.19 	pools, payment to the breeders fund, and payment to the sending out-of-state racetrack for 
79.20 	receipt of the signal; and
79.21 	(3) (2) for simulcasts conducted outside of the racing season, 25 any day a class A 
79.22 	facility is licensed, not less than 37 percent of the takeout remaining after deduction for the 
79.23 	state pari-mutuel tax, payment to the breeders fund, and payment to the sending out-of-state 
79.24 	racetrack for receipt of the signal and, before January 1, 2005, a further deduction of 
79.25 	eight percent of all money in all pools. In the event that wagering on simulcasts outside 
79.26 	of the racing season exceeds $125 million in any calendar year, the amount set aside for 
79.27 	purses by this formula is increased to 30 percent on amounts between $125,000,000 and 
79.28 	$150,000,000 wagered; 40 percent on amounts between $150,000,000 and $175,000,000 
79.29 	wagered; and 50 percent on amounts in excess of $175,000,000 wagered. In lieu of 
79.30 	the eight percent deduction, A deduction as agreed to between the licensee and the 
79.31 	horsepersons' organization representing the majority of horsepersons racing at the licensee's 
79.32 	class A facility during the preceding 12 months, is allowed after December 31, 2004.
79.33 	The commission may by rule provide for the administration and enforcement of 
79.34 	this subdivision. The deductions for payment to the sending out-of-state racetrack must 
79.35 	be actual, except that when there exists any overlap of ownership, control, or interest 
80.1 	between the sending out-of-state racetrack and the receiving licensee, the deduction 
80.2 	must not be greater than three percent unless agreed to between the licensee and the 
80.3 	horsepersons' organization representing the majority of horsepersons racing the breed 
80.4 	racing the majority of races during the existing racing meeting or, if outside of the racing 
80.5 	season, during the most recent racing meeting.
80.6 	In lieu of the amount the licensee must pay to the commission for deposit in the 
80.7 	Minnesota breeders fund under section 240.15, subdivision 1, The licensee shall pay to the 
80.8 	commission for deposit in the Minnesota breeders fund 5-1/2 percent of the takeout from 
80.9 	all pari-mutuel pools generated by wagering at the licensee's facility on full racing card 
80.10 	simulcasts of races not conducted in this state.
80.11 	(b) From the money set aside for purses, the licensee shall pay to the horseperson's 
80.12 	organization representing the majority of the horsepersons racing the breed involved 
80.13 	and contracting with the licensee with respect to purses and the conduct of the racing 
80.14 	meetings and providing representation to its members, an amount as may be determined 
80.15 	by agreement by the licensee and the horsepersons' organization sufficient to provide 
80.16 	benevolent programs, benefits, and services for horsepersons and their on-track employees, 
80.17 	an amount, sufficient to perform these services, as may be determined by agreement by 
80.18 	the licensee and the horseperson's organization. The amount paid may be deducted only 
80.19 	from the money set aside for purses to be paid in races for the breed represented by the 
80.20 	horseperson's organization. With respect to racing meetings where more than one breed 
80.21 	is racing, the licensee may contract independently with the horseperson's organization 
80.22 	representing each breed racing.
80.23 	(c) Notwithstanding sections 325D.49 to 325D.66, a horseperson's organization 
80.24 	representing the majority of the horsepersons racing a breed at a meeting, and the members 
80.25 	thereof, may agree to withhold horses during a meeting.
80.26 	(d) Money set aside for purses from wagering, during the racing season, on 
80.27 	simulcasts must be used for purses for live races conducted at the licensee's class A facility 
80.28 	during the same racing season, over and above the 8.4 percent purse requirement or any 
80.29 	higher requirement to which the parties agree, for races conducted in this state. Money 
80.30 	set aside for purses from wagering, outside of the racing season, on simulcasts must be 
80.31 	for purses for live races conducted at the licensee's class A facility during the next racing 
80.32 	season, over and above the 8.4 percent purse requirement or any higher requirement to 
80.33 	which the parties agree, for races conducted in this state.
80.34 	(e) (d) Money set aside for purses from wagering on simulcasts must be used for 
80.35 	purses for live races involving the same breed involved in the simulcast except that money 
80.36 	set aside for purses and payments to the breeders fund from wagering on full racing card 
81.1 	simulcasts of races not conducted in this state, occurring during a live mixed meet, must 
81.2 	be allotted to the purses and breeders fund for each breed participating in the mixed meet 
81.3 	as agreed upon by the breed organizations participating in the live mixed meet. The 
81.4 	agreement shall be in writing and filed with the commission prior to the first day of the live 
81.5 	mixed meet. In the absence of a written agreement filed with the commission, the money 
81.6 	set aside for purses and payments to the breeders fund from wagering on simulcasts, 
81.7 	occurring during a live mixed meet, shall be allotted to each breed participating in the live 
81.8 	mixed meet  in the same proportion that the number of live races run by each breed bears 
81.9 	to the total number of live races conducted during the period of the mixed meet.
81.10 	(f) (e) The allocation of money set aside for purses to particular racing meets may be 
81.11 	adjusted, relative to overpayments and underpayments, by contract between the licensee 
81.12 	and the horsepersons' organization representing the majority of horsepersons racing the 
81.13 	breed involved at the licensee's facility.
81.14 	(g) (f) Subject to the provisions of this chapter, money set aside from pari-mutuel 
81.15 	pools for purses must be for the breed involved in the race that generated the pool, except 
81.16 	that if the breed involved in the race generating the pari-mutuel pool is not racing in the 
81.17 	current racing meeting, or has not raced within the preceding 12 months at the licensee's 
81.18 	class A facility, money set aside for purses may be distributed proportionately to those 
81.19 	breeds that have run during the preceding 12 months or paid to the commission and 
81.20 	used for purses or to promote racing for the breed involved in the race generating the 
81.21 	pari-mutuel pool, or both, in a manner prescribed by the commission.
81.22 	(h) (g) This subdivision does not apply to a class D licensee.

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

81.24 	Sec. 80. Minnesota Statutes 2014, section 240.13, subdivision 6, is amended to read:
81.25 		Subd. 6.Simulcasting. (a) The commission may permit an authorized licensee to 
81.26 	conduct simulcasting at the licensee's facility on any day authorized by the commission. 
81.27 	All simulcasts must comply with the Interstate Horse Racing Act of 1978, United States 
81.28 	Code, title 15, sections 3001 to 3007.
81.29 	(b) The commission may not authorize any day for simulcasting at a class A facility 
81.30 	during the racing season, and a licensee may not be allowed to transmit out-of-state 
81.31 	telecasts of races the licensee conducts, unless the licensee has obtained the approval of 
81.32 	the horsepersons' organization representing the majority of the horsepersons racing the 
81.33 	breed involved at the licensed racetrack during the preceding 12 months. In the case of 
81.34 	a class A facility licensed under section 240.06, subdivision 5a, the approval applicable 
81.35 	to the first year of the racetrack's operation may be obtained from the horsepersons' 
82.1 	organization that represents the majority of horsepersons who will race the breed involved 
82.2 	at the licensed racetrack during the first year of the racetrack's operation.
82.3 	(c) The licensee may pay fees and costs to an entity transmitting a telecast of a 
82.4 	race to the licensee for purposes of conducting pari-mutuel wagering on the race. The 
82.5 	licensee may deduct fees and costs related to the receipt of televised transmissions from a 
82.6 	pari-mutuel pool on the televised race, provided that one-half of any amount recouped in 
82.7 	this manner must be added to the amounts required to be set aside for purses.
82.8 	(d) With the approval of the commission and subject to the provisions of this 
82.9 	subdivision, a licensee may transmit telecasts of races it conducts, for wagering purposes, 
82.10 	to locations outside the state, and the commission may allow this to be done on a 
82.11 	commingled pool basis.
82.12 	(e) Except as otherwise provided in this section, simulcasting may be conducted on a 
82.13 	separate commingled pool basis or, with the approval of the commission, on a commingled 
82.14 	separate pool basis. All provisions of law governing pari-mutuel betting apply to 
82.15 	simulcasting except as otherwise provided in this subdivision or in the commission's 
82.16 	rules. If pools are commingled, wagering at the licensed facility must be on equipment 
82.17 	electronically linked with the equipment at the licensee's class A facility or with the 
82.18 	sending racetrack via the totalizator computer at the licensee's class A facility. Subject to 
82.19 	the approval of the commission, the types of betting, takeout, and distribution of winnings 
82.20 	on commingled pari-mutuel pools are those in effect at the sending racetrack. Breakage 
82.21 	for pari-mutuel pools on a televised race must be calculated in accordance with the law or 
82.22 	rules governing the sending racetrack for these pools, and must be distributed in a manner 
82.23 	agreed to between the licensee and the sending racetrack. Notwithstanding subdivision 7 
82.24 	and section 240.15, subdivision 5, the commission may approve procedures governing the 
82.25 	definition and disposition of unclaimed tickets that are consistent with the law and rules 
82.26 	governing unclaimed tickets at the sending racetrack. For the purposes of this section, 
82.27 	"sending racetrack" is either the racetrack outside of this state where the horse race is 
82.28 	conducted or, with the consent of the racetrack, an alternative facility that serves as the 
82.29 	racetrack for the purpose of commingling pools.
82.30 	(f) Except as otherwise provided in section 240.06, subdivision 5b, paragraph (2), 
82.31 	if there is more than one class B licensee conducting racing within the seven-county 
82.32 	metropolitan area, simulcasting may be conducted only on races run by a breed that ran at 
82.33 	the licensee's class A facility within the 12 months preceding the event.

82.34 	Sec. 81. Minnesota Statutes 2014, section 240.135, is amended to read:
82.35 	240.135 CARD CLUB REVENUE.
83.1 	(a) From the amounts received from charges authorized under section 240.30, 
83.2 	subdivision 4, the licensee shall set aside the amounts specified in this section to be 
83.3 	used for purse payments. These amounts are in addition to the breeders fund and purse 
83.4 	requirements set forth elsewhere in this chapter.
83.5 	(1) For amounts between zero and $6,000,000, the licensee shall set aside not less 
83.6 	than ten percent to be used as purses.
83.7 	(2) For amounts in excess of $6,000,000, the licensee shall set aside not less than 
83.8 	14 percent to be used as purses.
83.9 	(b) From all amounts set aside under paragraph (a), the licensee shall set aside 
83.10 	ten percent to be deposited in the breeders fund. The licensee and the horseperson's 
83.11 	organization representing the majority of horsepersons who have raced at the racetrack 
83.12 	during the preceding 12 months may negotiate percentages different from those stated in 
83.13 	this section if the agreement is in writing and filed with the Racing Commission.
83.14 	(c) It is the intent of the legislature that the proceeds of the card playing activities 
83.15 	authorized by this chapter be used to improve the horse racing industry by improving purses. 
83.16 	The licensee and the horseperson's organization representing the majority of horsepersons 
83.17 	who have raced at the racetrack during the preceding 12 months may negotiate percentages 
83.18 	that exceed those stated in this section if the agreement is in writing and filed with the 
83.19 	commission. The commission shall annually review the financial details of card playing 
83.20 	activities and determine if the present use of card playing proceeds is consistent with the 
83.21 	policy established by this paragraph. If the commission determines that the use of the 
83.22 	proceeds does not comply with the policy set forth herein, then the commission shall direct 
83.23 	the parties to make the changes necessary to ensure compliance. If these changes require 
83.24 	legislation, the commission shall make the appropriate recommendations to the legislature.

83.25 	Sec. 82. Minnesota Statutes 2014, section 240.15, subdivision 1, is amended to read:
83.26 		Subdivision 1.Taxes imposed. (a) There is imposed a tax at the rate of six percent 
83.27 	of the amount in excess of $12,000,000 annually withheld from all pari-mutuel pools by 
83.28 	the licensee, including breakage and amounts withheld under section 240.13, subdivision 
83.29 	4. For the purpose of this subdivision, "annually" is the period from July 1 to June 30 of 
83.30 	the next year.
83.31 	In addition to the above tax, the licensee must designate and pay to the commission 
83.32 	a tax of one percent of the total amount bet on each racing day handle for live races 
83.33 	conducted at a class A facility, for deposit in the Minnesota breeders fund.
83.34 	The taxes imposed by this clause must be paid from the amounts permitted to be 
83.35 	withheld by a licensee under section 240.13, subdivision 4.
84.1 	(b) The commission may impose an admissions tax of not more than ten cents on 
84.2 	each paid admission at a licensed racetrack on a racing day if:
84.3 	(1) the tax is requested by a local unit of government within whose borders the 
84.4 	track is located;
84.5 	(2) a public hearing is held on the request; and
84.6 	(3) the commission finds that the local unit of government requesting the tax is in 
84.7 	need of its revenue to meet extraordinary expenses caused by the racetrack.

84.8 	Sec. 83. Minnesota Statutes 2014, section 240.15, subdivision 6, is amended to read:
84.9 		Subd. 6.Disposition of proceeds; account. The commission shall distribute all 
84.10 	money received under this section, and all money received from license fees and fines it 
84.11 	collects, according to this subdivision. All money designated for deposit in the Minnesota 
84.12 	breeders fund must be paid into that fund for distribution under section 240.18 except that 
84.13 	all money generated by full racing card simulcasts must be distributed as provided in 
84.14 	section 240.18, subdivisions 2, paragraph (d), clauses (1), (2), and (3); and 3. Revenue 
84.15 	from an admissions tax imposed under subdivision 1 must be paid to the local unit of 
84.16 	government at whose request it was imposed, at times and in a manner the commission 
84.17 	determines. Taxes received under this section and fines collected under section 240.22
84.18 	must be paid to the commissioner of management and budget for deposit in the general 
84.19 	fund. All revenues from licenses and other fees imposed by the commission must be 
84.20 	deposited in the state treasury and credited to a racing and card playing regulation account 
84.21 	in the special revenue fund. Receipts in this account are available for the operations of the 
84.22 	commission up to the amount authorized in biennial appropriations from the legislature.

84.23 	Sec. 84. Minnesota Statutes 2014, section 240.16, subdivision 1, is amended to read:
84.24 		Subdivision 1.Powers and duties. All horse races run at a licensed racetrack must 
84.25 	be presided over by a board of three stewards, who must be appointees of the commission or 
84.26 	persons approved by it. The commission shall designate one steward as chair. At least two 
84.27 	stewards for all races either shall be employees of the commission who shall serve in the 
84.28 	unclassified service, or shall be under contract with the commission to serve as stewards. 
84.29 	The commission may delegate the following duties and powers to a board of stewards:
84.30 	(a) to ensure that races are run in accordance with the commission's rules;
84.31 	(b) to supervise the conduct of racing to ensure the integrity of the sport;
84.32 	(c) to settle disputes arising from the running of horse races, and to certify official 
84.33 	results;
85.1 	(d) to impose on licensees, for violation of law or commission rules, fines not 
85.2 	exceeding $2,000 $5,000 and license suspensions not exceeding 90 days;
85.3 	(e) to recommend to the commission where warranted penalties in excess of those 
85.4 	in clause (d);
85.5 	(f) to otherwise enforce the laws and rules of racing; and
85.6 	(g) to perform other duties and have other powers assigned by the commission.

85.7 	Sec. 85. Minnesota Statutes 2014, section 240.22, is amended to read:
85.8 	240.22 FINES.
85.9 	(a) The commission shall by rule establish a graduated schedule of civil fines for 
85.10 	violations of laws related to horse racing or of the commission's rules. The schedule 
85.11 	must include minimum and maximum fines for each violation and be based on and 
85.12 	reflect the culpability, frequency and severity of the violator's actions. The commission 
85.13 	may impose a fine from this schedule on a licensee for a violation of those rules or laws 
85.14 	relating to horse racing. The fine is in addition to any criminal penalty imposed for the 
85.15 	same violation. Fines imposed by the commission must be paid to the commission and 
85.16 	except as provided in paragraph (b), forwarded to the commissioner of management and 
85.17 	budget for deposit in the general fund. A fine in excess of $2,000 $5,000 is a contested 
85.18 	case under the Administrative Procedure Act.
85.19 	(b) If the commission is the prevailing party in a contested case proceeding, the 
85.20 	commission may recover, from amounts to be forwarded under paragraph (a), reasonable 
85.21 	attorney fees and costs associated with the contested case.

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

85.23 	Sec. 86. Minnesota Statutes 2014, section 240.23, is amended to read:
85.24 	240.23 RULEMAKING AUTHORITY.
85.25 	The commission has the authority, in addition to all other rulemaking authority 
85.26 	granted elsewhere in this chapter to promulgate rules governing:
85.27 	(a) the conduct of horse races held at licensed racetracks in Minnesota, including but 
85.28 	not limited to the rules of racing, standards of entry, operation of claiming races, filing and 
85.29 	handling of objections, carrying of weights, and declaration of official results;
85.30 	(b) wire wired and wireless communications between the premises of a licensed 
85.31 	racetrack and any place outside the premises;
85.32 	(c) information on horse races which is sold on the premises of a licensed racetrack;
86.1 	(d) liability insurance which it may require of all class A, class B, and class D 
86.2 	licensees;
86.3 	(e) the auditing of the books and records of a licensee by an auditor employed 
86.4 	or appointed by the commission;
86.5 	(f) emergency action plans maintained by licensed racetracks and their periodic 
86.6 	review;
86.7 	(g) safety, security, and sanitation of stabling facilities at licensed racetracks;
86.8 	(h) entry fees and other funds received by a licensee in the course of conducting 
86.9 	racing which the commission determines must be placed in escrow accounts;
86.10 	(i) affirmative action in employment and contracting by class A, class B, and class D 
86.11 	licensees; and
86.12 	(j) procedures for the sampling and testing of any horse that is eligible to race in 
86.13 	Minnesota for substances or practices that are prohibited by law or rule; and
86.14 	(j) (k) any other aspect of horse racing or pari-mutuel betting which in its opinion 
86.15 	affects the integrity of racing or the public health, welfare, or safety.
86.16 	Rules of the commission are subject to chapter 14, the Administrative Procedure Act.

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

86.18 	Sec. 87. Minnesota Statutes 2014, section 272.484, is amended to read:
86.19 	272.484 FEES.
86.20 	The fee for filing and indexing each notice of lien or certificate or notice affecting 
86.21 	the lien is:
86.22 	(1) for a lien, certificate of discharge or subordination, and for all other notices, 
86.23 	including a certificate of release or nonattachment filed with the secretary of state, the fee 
86.24 	provided by section 336.9-525, except that the filing fee charged to the district directors 
86.25 	of internal revenue for filing a federal tax lien is $15 for up to two debtor names and 
86.26 	$15 for each additional name; and
86.27 	(2) for a lien, certificate of discharge or subordination, and for all other notices, 
86.28 	including a certificate of release or nonattachment filed with the county recorder, the fee 
86.29 	for filing a real estate mortgage in the county where filed.
86.30 	The officer shall bill the district directors of internal revenue or other appropriate 
86.31 	federal officials on a monthly basis for fees for documents filed by them.

86.32 	Sec. 88. Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read:
87.1 		Subdivision 1.The Office of the Commissioner of Iron Range resources 
87.2 	and rehabilitation. (a) The Office of the Commissioner of Iron Range resources and 
87.3 	rehabilitation is created as an agency in the executive branch of state government. The 
87.4 	governor shall appoint the commissioner of Iron Range resources and rehabilitation under 
87.5 	section 15.06.
87.6 	(b) The commissioner may hold other positions or appointments that are not 
87.7 	incompatible with duties as commissioner of Iron Range resources and rehabilitation. The 
87.8 	commissioner may appoint a deputy commissioner. All expenses of the commissioner, 
87.9 	including the payment of staff and other assistance as may be necessary, must be paid 
87.10 	out of the amounts appropriated by section 298.28 or otherwise made available by law 
87.11 	to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner 
87.12 	may utilize contracting options available under section 471.345 when the commissioner 
87.13 	determines it is in the best interest of the agency. The agency is not subject to sections 
87.14 	16E.016 and 16C.05.
87.15 	(c) When the commissioner determines that distress and unemployment exists or 
87.16 	may exist in the future in any county by reason of the removal of natural resources or 
87.17 	a possibly limited use of natural resources in the future and any resulting decrease in 
87.18 	employment, the commissioner may use whatever amounts of the appropriation made to 
87.19 	the commissioner of revenue in section 298.28 that are determined to be necessary and 
87.20 	proper in the development of the remaining resources of the county and in the vocational 
87.21 	training and rehabilitation of its residents, except that the amount needed to cover cost 
87.22 	overruns awarded to a contractor by an arbitrator in relation to a contract awarded by 
87.23 	the commissioner or in effect after July 1, 1985, is appropriated from the general fund. 
87.24 	For the purposes of this section, "development of remaining resources" includes, but is 
87.25 	not limited to, the promotion of tourism.

87.26 	Sec. 89. Minnesota Statutes 2014, section 303.19, is amended to read:
87.27 	303.19 REINSTATEMENT.
87.28 		Subdivision 1.Application Required filing. Any foreign corporation whose 
87.29 	certificate of authority to do business in this state shall have been revoked or canceled may 
87.30 	file reinstate that authority by filing an annual renewal and the fee required by subdivision 
87.31 	2 with the secretary of state an application for reinstatement. Such application shall be 
87.32 	on forms prescribed by the secretary of state, shall contain all the matters required to be 
87.33 	set forth in an original application for a certificate of authority, and such other pertinent 
87.34 	information as may be required by the secretary of state. If any of the information in the 
87.35 	original application for authority has changed, the foreign corporation must also file an 
88.1 	amended certificate setting forth the currently accurate information, with the fee required 
88.2 	by section 303.21, subdivision 3.
88.3 		Subd. 2.Fee. If the certificate of authority was revoked by the secretary of state 
88.4 	pursuant to section 303.17, the corporation shall pay to the commissioner of management 
88.5 	and budget $250 before it may be reinstated.
88.6 	If the certificate of authority was canceled or by a judgment pursuant to section 
88.7 	303.18, the corporation shall pay to the commissioner of management and budget $500 
88.8 	before it may be reinstated.
88.9 		Subd. 3.Certificate of reinstatement. Upon the filing of the application and upon 
88.10 	payment of all penalties, fees and charges required by law, not including an initial license 
88.11 	fee or additional license fees to the extent that they have previously been paid by the 
88.12 	corporation the fees imposed by this section, the secretary of state shall reinstate the 
88.13 	license of the corporation.

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

88.22 	Sec. 91. Minnesota Statutes 2014, section 304A.301, subdivision 5, is amended to read:
88.23 		Subd. 5.Failure to file an annual benefit report. If a public benefit corporation 
88.24 	fails to file an, before April 1 of any calendar year, the annual benefit report in accordance 
88.25 	with this section within 90 days of the date on which an annual benefit report is due 
88.26 	required by this section, the secretary of state shall revoke the corporation's status as a 
88.27 	public benefit corporation under this chapter and must notify the public benefit corporation 
88.28 	of the revocation using the information provided by the corporation pursuant to section 
88.29 	5.002 or 5.34 or provided in the articles.

88.30 	Sec. 92. Minnesota Statutes 2014, section 304A.301, subdivision 6, is amended to read:
88.31 		Subd. 6.Effects of revocation; reinstatement. (a) A public benefit corporation 
88.32 	that has lost its public benefit corporation status for failure to timely file an annual benefit 
88.33 	report or by terminating that status pursuant to section 304A.103 is not entitled to the 
89.1 	benefits afforded to a public benefit corporation under this chapter as of the date of 
89.2 	revocation or termination and must amend the articles of incorporation to reflect a name 
89.3 	compliant with section 302A.115, but which does not include the corporate designation 
89.4 	provided for in section 304A.101, subdivision 2.
89.5 	(b) Within 30 days of issuance of revocation of public benefit corporation status by 
89.6 	the secretary of state, filing a renewal complying with this section and a $500 fee with 
89.7 	the secretary of state will reinstate the corporation as a public benefit corporation under 
89.8 	this chapter as of the date of revocation.

89.9 	Sec. 93. Minnesota Statutes 2014, section 304A.301, is amended by adding a 
89.10 	subdivision to read:
89.11 		Subd. 8.Failure to change corporate name. The duration of a corporation that has 
89.12 	had public benefit status terminated or revoked and which fails to change the corporate 
89.13 	name as provided in subdivision 6 expires automatically 30 days after termination or 
89.14 	revocation of the public benefit corporation status.

89.15 	Sec. 94. Minnesota Statutes 2014, section 326A.01, subdivision 2, is amended to read:
89.16 		Subd. 2.Attest. "Attest" means to provide providing any of the following financial 
89.17 	statement services:
89.18 	(1) an audit or other engagement performed in accordance with the Statements on 
89.19 	Auditing Standards (SAS);
89.20 	(2) a review of a financial statement performed in accordance with the Statements on 
89.21 	Standards for Accounting and Review Services (SSARS);
89.22 	(3) an examination of prospective financial information performed in accordance 
89.23 	with the Statements on Standards for Attestation Engagements (SSAE); and
89.24 	(4) any an engagement performed in accordance with auditing and related the  
89.25 	standards of the Public Company Accounting Oversight Board (PCAOB); and
89.26 	(5) an examination, review, or agreed-upon procedures engagement performed in 
89.27 	accordance with SSAE, other than an examination described in clause (3).

89.28 	Sec. 95. Minnesota Statutes 2014, section 326A.01, subdivision 12, is amended to read:
89.29 		Subd. 12.Peer review. "Peer review" means an independent study, appraisal, or 
89.30 	review of one or more aspects of the professional work of a licensee  or CPA firm that 
89.31 	issues attest or compilation reports, or the professional work of a person registered under 
89.32 	section 326A.06, paragraph (b), by persons who are not affiliated with the licensee  or 
89.33 	CPA firm being reviewed.

90.1 	Sec. 96. Minnesota Statutes 2014, section 326A.01, subdivision 13a, is amended to read:
90.2 		Subd. 13a.Principal place of business. "Principal place of business" means the 
90.3 	office location designated by the licensee for purposes of substantial equivalency and 
90.4 	reciprocity in this state and in other states.

90.5 	Sec. 97. Minnesota Statutes 2014, section 326A.01, subdivision 15, is amended to read:
90.6 		Subd. 15.Report. "Report," when used with reference to financial statements an 
90.7 	attest or compilation service, means an opinion, report, or other form of language that 
90.8 	states or implies assurance as to the reliability of any the attested information or compiled 
90.9 	financial statements and that also includes or is accompanied by a statement or implication 
90.10 	that the person or firm issuing it has special knowledge or competence in accounting or 
90.11 	auditing. Such a statement or implication of special knowledge or competence may arise 
90.12 	from use by the issuer of the report of names or titles indicating that the person or firm is an 
90.13 	accountant or auditor, or from the language of the report itself. The term "report" includes 
90.14 	any form of language that disclaims an opinion when the form of language is conventionally 
90.15 	understood to imply any positive assurance as to the reliability of the  attested information 
90.16 	or compiled financial statements referred to or special competence on the part of the person 
90.17 	or firm issuing the language. It includes any other form of language that is conventionally 
90.18 	understood to imply such assurance or such special knowledge or competence.

90.19 	Sec. 98. Minnesota Statutes 2014, section 326A.01, subdivision 16, is amended to read:
90.20 		Subd. 16.State. "State" means any state of the United States, the District of 
90.21 	Columbia, Puerto Rico, the U.S. Virgin Islands, the Commonwealth of the Northern 
90.22 	Mariana Islands, and Guam; except that "this state" means the state of Minnesota.

90.23 	Sec. 99. Minnesota Statutes 2014, section 326A.02, subdivision 3, is amended to read:
90.24 		Subd. 3.Officers; proceedings. The board shall elect one of its number members  
90.25 	as chair, another as vice-chair, and another as secretary and treasurer. The officers shall 
90.26 	hold their respective offices for a term of one year and until their successors are elected. 
90.27 	The affirmative vote of a majority of the qualified members of the board, or a majority of 
90.28 	a quorum of the board at any meeting duly called, is considered the action of the board. 
90.29 	The board shall meet at such times and places as may be fixed by the board. Meetings 
90.30 	of the board are subject to chapter 13D. A majority of the board members then in office 
90.31 	constitutes a quorum at any meeting duly called. The board shall retain or arrange for the 
90.32 	retention of all applications and all documents under oath that are filed with the board and 
90.33 	also records of its proceedings, and it shall maintain a registry of the names and addresses 
91.1 	of all licensees and registrants under this chapter. In any proceeding in court, civil or 
91.2 	criminal, arising out of or founded upon any provision of this chapter, copies of records of 
91.3 	the proceeding certified as true copies by the board chair or executive director shall be 
91.4 	admissible in evidence as tending to prove the contents of the records.

91.5 	Sec. 100. Minnesota Statutes 2014, section 326A.02, subdivision 5, is amended to read:
91.6 		Subd. 5.Rules. The board may adopt rules governing its administration and 
91.7 	enforcement of this chapter and the conduct of licensees and persons registered under 
91.8 	section 326A.06, paragraph (b), including:
91.9 	(1) rules governing the board's meetings and the conduct of its business;
91.10 	(2) rules of procedure governing the conduct of investigations and hearings and 
91.11 	discipline by the board;
91.12 	(3) rules specifying the educational and experience qualifications required for the 
91.13 	issuance of certificates and the continuing professional education required for renewal 
91.14 	of certificates;
91.15 	(4) rules of professional conduct directed to controlling the quality and probity 
91.16 	of services by licensees, and dealing among other things with independence, integrity, 
91.17 	and objectivity; competence and technical standards; and responsibilities to the public 
91.18 	and to clients;
91.19 	(5) rules governing the professional standards applicable to licensees including 
91.20 	adoption of the standards specified in section 326A.01, subdivision 2, and as developed 
91.21 	for general application by recognized national accountancy organizations such as the 
91.22 	American Institute of Certified Public Accountants or the Public Company Accounting 
91.23 	Oversight Board;
91.24 	(6) rules that incorporate by reference the standards for attesting listed in section 
91.25 	326A.01, subdivision 2, that are consistent with the standards of general applicability 
91.26 	recognized by national accountancy organizations, including the American Institute of 
91.27 	Certified Public Accountants and the Public Company Accounting Oversight Board;
91.28 	(6) (7) rules governing the manner and circumstances of use of the titles "certified 
91.29 	public accountant," "CPA," "registered accounting practitioner," and "RAP";
91.30 	(7) (8) rules regarding peer review that may be required to be performed under 
91.31 	provisions of this chapter;
91.32 	(8) (9) rules on substantial equivalence to implement section 326A.14;
91.33 	(9) (10) rules regarding the conduct of the certified public accountant examination;
91.34 	(10) (11) rules regarding the issuance and renewals of certificates, permits, and 
91.35 	registrations;
92.1 	(11) (12) rules regarding transition provisions to implement this chapter;
92.2 	(12) (13) rules specifying the educational and experience qualifications for 
92.3 	registration, rules of professional conduct, rules regarding peer review, rules governing 
92.4 	standards for providing services, and rules regarding the conduct and content of 
92.5 	examination for those persons registered under section 326A.06, paragraph (b);
92.6 	(13) (14) rules regarding fees for examinations, certificate issuance and renewal, 
92.7 	firm permits, registrations under section 326A.06, paragraph (b), notifications made under 
92.8 	section 326A.14, and late processing fees; and
92.9 	(14) (15) upon any change to this chapter, if the board determines a change in 
92.10 	Minnesota Rules is required, the board may initiate the expedited process under section 
92.11 	14.389 up to one year after the effective date of the change to this chapter.

92.12 	Sec. 101. Minnesota Statutes 2014, section 326A.05, subdivision 1, is amended to read:
92.13 		Subdivision 1.General. The board shall grant or renew permits to practice as 
92.14 	a CPA firm to entities that make application and demonstrate their qualifications in 
92.15 	accordance with this section.
92.16 	(a) The following must hold a permit issued under this section:
92.17 	(1) any firm with an office in this state performing attest services as defined in 
92.18 	section 326A.01, subdivision 2;
92.19 	(2) to the extent required by section 326A.10, paragraph (k), any firm with an office 
92.20 	in this state performing compilation services as defined in section 326A.01, subdivision 6;
92.21 	(3) any firm with an office in this state that uses the title "CPA" or "CPA firm"; or
92.22 	(4) any firm that does not have an office in this state but performs attest services 
92.23 	as described in section 326A.01, subdivision 2, paragraph (1), (3), or (4), for a client 
92.24 	having its headquarters in this state.
92.25 	(b) A firm possessing a valid permit from another state which does not have an office 
92.26 	in this state may perform services described in section 326A.01, subdivision 2, clause (2) 
92.27 	or (5), or subdivision 6, for a client having its headquarters in this state and may use the 
92.28 	title "CPA" or "CPA firm" without a permit issued under this section only if:
92.29 	(1) it has the qualifications described in subdivision 3, paragraph (b);
92.30 	(2) as a condition to the renewal of the firm's permit issued by the other state, that 
92.31 	state requires a peer review which contains the requirements equivalent to subdivision 8, 
92.32 	paragraphs (a) and (e); and
92.33 	(3) it performs the services through an individual who has been granted practice 
92.34 	privileges under section 326A.14.
93.1 	(c) A firm possessing a valid permit from another state that does not have an office 
93.2 	in this state and which is not subject to the requirements of paragraph (a), clause (4), or 
93.3 	(b), may perform other professional services while using the title "CPA" or "CPA firm" in 
93.4 	this state without a permit issued under this section only if the firm:
93.5 	(1) has the qualifications described in subdivision 3, paragraph (b);
93.6 	(2) performs the services through an individual who has been granted practice 
93.7 	privileges under section 326A.14; and
93.8 	(3) can lawfully perform the services in the state where the individuals with practice 
93.9 	privileges have their principal place of business.

93.10 	Sec. 102. Minnesota Statutes 2014, section 326A.05, subdivision 3, is amended to read:
93.11 		Subd. 3.Qualifications. (a) An applicant for initial issuance or renewal of a permit 
93.12 	to practice under this section shall comply with the requirements in this subdivision.
93.13 	(b) Notwithstanding chapter 319B or any other provision of law, a simple majority 
93.14 	of the ownership of the firm, in terms of financial interests and voting rights of all partners, 
93.15 	officers, shareholders, members, or managers, must belong to holders of certificates who 
93.16 	are licensed in some state, and the partners, officers, shareholders, members, or managers, 
93.17 	whose principal place of business is in this state, and who perform professional services in 
93.18 	this state, must hold valid certificates issued under section 326A.04 or the corresponding 
93.19 	provision of prior law. Although firms may include nonlicensee owners, the firm and 
93.20 	its ownership must comply with rules adopted by the board. The firm shall register all 
93.21 	nonlicensee owners with the state board as set forth by rule. An individual who has been 
93.22 	granted practice privileges under section 326A.14 and who performs services for which 
93.23 	a firm permit is required under section 326A.14, subdivision 1, paragraph (d), is not 
93.24 	required to obtain a certificate from the board under section 326A.04.
93.25 	(c) A CPA firm may include nonlicensee owners provided that:
93.26 	(1) the firm designates a licensee of this state, or in the case of a firm that must 
93.27 	have a permit according to section 326A.14, subdivision 1, paragraph (d), a licensee of 
93.28 	another state who meets the requirements in section 326A.14, subdivision 1, paragraph 
93.29 	(a) or (b), who is responsible for the proper registration of the firm and identifies that 
93.30 	individual to the board;
93.31 	(2) all nonlicensee owners are persons of good moral character and are active 
93.32 	individual participants in the CPA firm or affiliated entities; and
93.33 	(3) the firm complies with other requirements imposed by the board in rule.
93.34 	(d) An individual licensee and any individual granted practice privileges under 
93.35 	section 326A.14 who is responsible for supervising attest or compilation services and 
94.1 	signs or authorizes someone to sign the accountant's report on the financial statements 
94.2 	on behalf of the firm, shall meet the competency requirements set out in the professional 
94.3 	standards for such services.
94.4 	(e) An individual licensee and any individual granted practice privileges under section 
94.5 	326A.14 who signs or authorizes someone to sign the accountants' report on the financial 
94.6 	statements on behalf of the firm shall meet the competency requirement of paragraph (d).

94.7 	Sec. 103. Minnesota Statutes 2014, section 326A.10, is amended to read:
94.8 	326A.10 UNLAWFUL ACTS.
94.9 	(a) Only a licensee and individuals who have been granted practice privileges 
94.10 	under section 326A.14 may issue a report on financial statements of any person, firm, 
94.11 	organization, or governmental unit that results from providing attest services, or offer to 
94.12 	render or render any attest service. Only a certified public accountant, an individual who 
94.13 	has been granted practice privileges under section 326A.14, a CPA firm, or, to the extent 
94.14 	permitted by board rule, a person registered under section 326A.06, paragraph (b), may 
94.15 	issue a report on financial statements of any person, firm, organization, or governmental 
94.16 	unit that results from providing compilation services or offer to render or render any 
94.17 	compilation service. These restrictions do not prohibit any act of a public official or 
94.18 	public employee in the performance of that person's duties or prohibit the performance 
94.19 	by any nonlicensee of other services involving the use of accounting skills, including 
94.20 	the preparation of tax returns, management advisory services, and the preparation of 
94.21 	financial statements without the issuance of reports on them. Nonlicensees may prepare 
94.22 	financial statements and issue nonattest transmittals or information on them which do not 
94.23 	purport to be in compliance with the Statements on Standards for Accounting and Review 
94.24 	Services (SSARS). Nonlicensees registered under section 326A.06, paragraph (b), may, 
94.25 	to the extent permitted by board rule, prepare financial statements and issue nonattest 
94.26 	transmittals or information on them.
94.27 	(b) Licensees and individuals who have been granted practice privileges under 
94.28 	section 326A.14 performing attest or compilation services must provide those services in 
94.29 	accordance with professional standards. To the extent permitted by board rule, registered 
94.30 	accounting practitioners performing compilation services must provide those services in 
94.31 	accordance with standards specified in board rule.
94.32 	(c) A person who does not hold a valid certificate issued under section 326A.04 
94.33 	or a practice privilege granted under section 326A.14 shall not use or assume the title 
94.34 	"certified public accountant," the abbreviation "CPA," or any other title, designation, 
95.1 	words, letters, abbreviation, sign, card, or device tending to indicate that the person is a 
95.2 	certified public accountant.
95.3 	(d) A firm shall not provide attest services or assume or use the title "certified public 
95.4 	accountants," the abbreviation "CPA's," or any other title, designation, words, letters, 
95.5 	abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless 
95.6 	(1) the firm has complied with section 326A.05, and (2) ownership of the firm is in 
95.7 	accordance with this chapter and rules adopted by the board.
95.8 	(e) A person or firm that does not hold a valid certificate or permit issued under 
95.9 	section 326A.04 or 326A.05 or has not otherwise complied with section 326A.04 or 
95.10 	326A.05 as required in this chapter shall not assume or use the title "certified accountant," 
95.11 	"chartered accountant," "enrolled accountant," "licensed accountant," "registered 
95.12 	accountant," "accredited accountant," "accounting practitioner," "public accountant," 
95.13 	"licensed public accountant," or any other title or designation likely to be confused 
95.14 	with the title "certified public accountant," or use any of the abbreviations "CA," "LA," 
95.15 	"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the 
95.16 	abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals 
95.17 	so designated by the Internal Revenue Service.
95.18 	(f) Persons registered under section 326A.06, paragraph (b), may use the title 
95.19 	"registered accounting practitioner" or the abbreviation "RAP." A person who does not 
95.20 	hold a valid registration under section 326A.06, paragraph (b), shall not assume or use 
95.21 	such title or abbreviation.
95.22 	(g) Except to the extent permitted in paragraph (a), nonlicensees may not use 
95.23 	language in any statement relating to the financial affairs of a person or entity that is 
95.24 	conventionally used by licensees in reports on financial statements or on an attest service. 
95.25 	In this regard, the board shall issue by rule safe harbor language that nonlicensees may 
95.26 	use in connection with such financial information. A person or firm that does not hold a 
95.27 	valid certificate or permit, or a registration issued under section 326A.04, 326A.05, or 
95.28 	326A.06, paragraph (b), or has not otherwise complied with section 326A.04 or 326A.05
95.29 	as required in this chapter shall not assume or use any title or designation that includes the 
95.30 	word "accountant" or "accounting" in connection with any other language, including the 
95.31 	language of a report, that implies that the person or firm holds such a certificate, permit, 
95.32 	or registration or has special competence as an accountant. A person or firm that does 
95.33 	not hold a valid certificate or permit issued under section 326A.04 or 326A.05 or has not 
95.34 	otherwise complied with section 326A.04 or 326A.05 as required in this chapter shall not 
95.35 	assume or use any title or designation that includes the word "auditor" in connection with 
95.36 	any other language, including the language of a report, that implies that the person or firm 
96.1 	holds such a certificate or permit or has special competence as an auditor. However, 
96.2 	this paragraph does not prohibit any officer, partner, member, manager, or employee of 
96.3 	any firm or organization from affixing that person's own signature to any statement in 
96.4 	reference to the financial affairs of such firm or organization with any wording designating 
96.5 	the position, title, or office that the person holds, nor prohibit any act of a public official or 
96.6 	employee in the performance of the person's duties as such.
96.7 	(h)(1) No person holding a certificate or registration or firm holding a permit under 
96.8 	this chapter shall use a professional or firm name or designation that is misleading about 
96.9 	the legal form of the firm, or about the persons who are partners, officers, members, 
96.10 	managers, or shareholders of the firm, or about any other matter. However, names of one 
96.11 	or more former partners, members, managers, or shareholders may be included in the 
96.12 	name of a firm or its successor.
96.13 	(2) A common brand name or network name part, including common initials, used 
96.14 	by a CPA firm in its name, is not misleading if the firm is a network firm as defined in 
96.15 	the American Institute of Certified Public Accountants (AICPA) Code of Professional 
96.16 	Conduct in effect July 1, 2011, and when offering or rendering services that require 
96.17 	independence under AICPA standards, the firm must comply with the AICPA code's 
96.18 	applicable standards on independence.
96.19 	(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification, 
96.20 	designation, degree, or license granted in a foreign country entitling the holder to engage 
96.21 	in the practice of public accountancy or its equivalent in that country, if:
96.22 	(1) the activities of the person or firm in this state are limited to the provision of 
96.23 	professional services to persons or firms who are residents of, governments of, or business 
96.24 	entities of the country in which the person holds the entitlement;
96.25 	(2) the person or firm performs no attest or compilation services and issues no 
96.26 	reports with respect to the financial statements information of any other persons, firms, or 
96.27 	governmental units in this state; and
96.28 	(3) the person or firm does not use in this state any title or designation other than 
96.29 	the one under which the person practices in the foreign country, followed by a translation 
96.30 	of the title or designation into English, if it is in a different language, and by the name 
96.31 	of the country.
96.32 	(j) No holder of a certificate issued under section 326A.04 may perform attest services 
96.33 	through any business form that does not hold a valid permit issued under section 326A.05.
96.34 	(k) No individual licensee may issue a report in standard form upon a compilation 
96.35 	of financial information through any form of business that does not hold a valid permit 
97.1 	issued under section 326A.05, unless the report discloses the name of the business through 
97.2 	which the individual is issuing the report, and the individual:
97.3 	(1) signs the compilation report identifying the individual as a certified public 
97.4 	accountant;
97.5 	(2) meets the competency requirement provided in applicable standards; and
97.6 	(3) undergoes no less frequently than once every three years, a peer review 
97.7 	conducted in a manner specified by the board in rule, and the review includes verification 
97.8 	that the individual has met the competency requirements set out in professional standards 
97.9 	for such services.
97.10 	(l) No person registered under section 326A.06, paragraph (b), may issue a report 
97.11 	in standard form upon a compilation of financial information unless the board by rule 
97.12 	permits the report and the person:
97.13 	(1) signs the compilation report identifying the individual as a registered accounting 
97.14 	practitioner;
97.15 	(2) meets the competency requirements in board rule; and
97.16 	(3) undergoes no less frequently than once every three years a peer review conducted 
97.17 	in a manner specified by the board in rule, and the review includes verification that the 
97.18 	individual has met the competency requirements in board rule.
97.19 	(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from 
97.20 	preparing or presenting records or documents customarily prepared by an attorney or firm 
97.21 	of attorneys in connection with the attorney's professional work in the practice of law.
97.22 	(n) The board shall adopt rules that place limitations on receipt by a licensee or a 
97.23 	person who holds a registration under section 326A.06, paragraph (b), of:
97.24 	(1) contingent fees for professional services performed; and
97.25 	(2) commissions or referral fees for recommending or referring to a client any 
97.26 	product or service.
97.27 	(o) Anything in this section to the contrary notwithstanding, it shall not be a violation 
97.28 	of this section for a firm not holding a valid permit under section 326A.05 and not having 
97.29 	an office in this state to provide its professional services in this state so long as it complies 
97.30 	with the applicable requirements of section 326A.05, subdivision 1.

97.31 	Sec. 104. Minnesota Statutes 2014, section 336A.09, subdivision 1, is amended to read:
97.32 		Subdivision 1.Procedure. (a) Oral Online and written inquiries regarding 
97.33 	information provided by the filing of effective financing statements or lien notices may 
97.34 	be made at any filing office submitted to the secretary of state during regular business 
97.35 	hours or, if submitted online, at any time.
98.1 	(b) A filing office receiving an oral or written inquiry shall, upon request The 
98.2 	secretary of state must, upon receiving an inquiry, provide an oral or facsimile a prompt 
98.3 	response to the inquiry.
98.4 	(c) A filing office The secretary of state shall maintain a record of inquiries made 
98.5 	under this section including:
98.6 	(1) the date of the inquiry;
98.7 	(2) the name of the debtor inquired about; and
98.8 	(3) identification of the person making the request for inquiry.

98.9 	Sec. 105. Minnesota Statutes 2014, section 364.09, is amended to read:
98.10 	364.09 EXCEPTIONS.
98.11 	(a) This chapter does not apply to the licensing process for peace officers; to law 
98.12 	enforcement agencies as defined in section 626.84, subdivision 1, paragraph (f); to fire 
98.13 	protection agencies; to eligibility for a private detective or protective agent license; to the 
98.14 	licensing and background study process under chapters 245A and 245C; to the licensing 
98.15 	and background investigation process under chapter 240; to eligibility for school bus 
98.16 	driver endorsements; to eligibility for special transportation service endorsements; to 
98.17 	eligibility for a commercial driver training instructor license, which is governed by section 
98.18 	171.35 and rules adopted under that section; to emergency medical services personnel, or 
98.19 	to the licensing by political subdivisions of taxicab drivers, if the applicant for the license 
98.20 	has been discharged from sentence for a conviction within the ten years immediately 
98.21 	preceding application of a violation of any of the following:
98.22 	(1) sections 609.185 to 609.2114, 609.221 to 609.223, 609.342 to 609.3451, or 
98.23 	617.23, subdivision 2 or 3; or Minnesota Statutes 2012, section 609.21;
98.24 	(2) any provision of chapter 152 that is punishable by a maximum sentence of 
98.25 	15 years or more; or
98.26 	(3) a violation of chapter 169 or 169A involving driving under the influence, leaving 
98.27 	the scene of an accident, or reckless or careless driving.
98.28 	This chapter also shall not apply to eligibility for juvenile corrections employment, where 
98.29 	the offense involved child physical or sexual abuse or criminal sexual conduct.
98.30 	(b) This chapter does not apply to a school district or to eligibility for a license 
98.31 	issued or renewed by the Board of Teaching or the commissioner of education.
98.32 	(c) Nothing in this section precludes the Minnesota Police and Peace Officers 
98.33 	Training Board or the state fire marshal from recommending policies set forth in this 
98.34 	chapter to the attorney general for adoption in the attorney general's discretion to apply to 
98.35 	law enforcement or fire protection agencies.
99.1 	(d) This chapter does not apply to a license to practice medicine that has been denied 
99.2 	or revoked by the Board of Medical Practice pursuant to section 147.091, subdivision 1a.
99.3 	(e) This chapter does not apply to any person who has been denied a license to 
99.4 	practice chiropractic or whose license to practice chiropractic has been revoked by the 
99.5 	board in accordance with section 148.10, subdivision 7.
99.6 	(f) This chapter does not apply to any license, registration, or permit that has 
99.7 	been denied or revoked by the Board of Nursing in accordance with section 148.261, 
99.8 	subdivision 1a.
99.9 	(g) This chapter does not supersede a requirement under law to conduct a criminal 
99.10 	history background investigation or consider criminal history records in hiring for 
99.11 	particular types of employment.

99.12 	Sec. 106. [383B.83] LIMITS ON RAILROAD CONDEMNATION POWERS 
99.13 	OVER CERTAIN GOVERNMENTAL PROPERTY INTERESTS.
99.14 	Notwithstanding anything to the contrary in chapter 117, sections 222.26, 222.27, 
99.15 	222.36, or any other law, the powers of a railroad corporation or a railroad company 
99.16 	or a railroad interest acting as a public service corporation or a common carrier do not 
99.17 	include the power to exercise eminent domain over a property interest owned by Hennepin 
99.18 	County, the Hennepin County Housing and Redevelopment Authority, or the Hennepin 
99.19 	County Regional Railroad Authority if such governmental power, by resolution of its 
99.20 	governing board, determines based on findings that the public safety or access of first 
99.21 	responders would be detrimentally affected by the exercise. 

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

99.23 	Sec. 107. Minnesota Statutes 2014, section 471.6161, subdivision 8, is amended to read:
99.24 		Subd. 8.School districts; group health insurance coverage. (a) Any entity 
99.25 	providing group health insurance coverage to a school district must provide the school 
99.26 	district with school district-specific nonidentifiable aggregate claims records for the most 
99.27 	recent 24 months within 30 days of the request.
99.28 	(b) School districts shall request proposals for group health insurance coverage as 
99.29 	provided in subdivision 2 from a minimum of three potential sources of coverage. One of 
99.30 	these requests must go to an administrator governed by chapter 43A. Entities referenced 
99.31 	in subdivision 1 must respond to requests for proposals received directly from a school 
99.32 	district. School districts that are self-insured must also follow these provisions, except 
99.33 	as provided in paragraph (f). School districts must make requests for proposals at least 
99.34 	150 days prior to the expiration of the existing contract but not more frequently than once 
100.1 	every 24 months. The request for proposals must include the most recently available 
100.2 	24 months of nonidentifiable aggregate claims data. The request for proposals must be 
100.3 	publicly released at or prior to its release to potential sources of coverage.
100.4 	(c) School district contracts for group health insurance must not be longer than 
100.5 	two years unless the exclusive representative of the largest employment group and the 
100.6 	school district agree otherwise.
100.7 	(d) All initial proposals shall be sealed upon receipt until they are all opened no less 
100.8 	than 90 days prior to the plan's renewal date in the presence of up to three representatives 
100.9 	selected by the exclusive representative of the largest group of employees. Section 13.591, 
100.10 	subdivision 3, paragraph (b), applies to data in the proposals. The representatives of 
100.11 	the exclusive representative must maintain the data according to this classification and 
100.12 	are subject to the remedies and penalties under sections 13.08 and 13.09 for a violation 
100.13 	of this requirement.
100.14 	(e) A school district, in consultation with the same representatives referenced in 
100.15 	paragraph (d), may continue to negotiate with any entity that submitted a proposal under 
100.16 	paragraph (d) in order to reduce costs or improve services under the proposal. Following 
100.17 	the negotiations any entity that submitted an initial proposal may submit a final proposal 
100.18 	incorporating the negotiations, which is due no less than 75 days prior to the plan's 
100.19 	renewal date. All the final proposals submitted must be opened at the same time in the 
100.20 	presence of up to three representatives selected by the exclusive representative of the 
100.21 	largest group of employees. Notwithstanding section 13.591, subdivision 3, paragraph (b), 
100.22 	following the opening of the final proposals, all the proposals, including any made under 
100.23 	paragraph (d), and other data submitted in connection with the proposals are public data. 
100.24 	The school district may choose from any of the initial or final proposals without further 
100.25 	negotiations and in accordance with subdivision 5, but not sooner than 15 days after 
100.26 	the proposals become public data.
100.27 	(f) School districts that are self-insured shall follow all of the requirements of this 
100.28 	section, except that:
100.29 	(1) their requests for proposals may be for third-party administrator services, where 
100.30 	applicable;
100.31 	(2) these requests for proposals must be from a minimum of three different sources, 
100.32 	which may include both entities referenced in subdivision 1 and providers of third-party 
100.33 	administrator services;
100.34 	(3) for purposes of fulfilling the requirement to request a proposal for group 
100.35 	insurance coverage from an administrator governed by chapter 43A, self-insured districts 
100.36 	are not required to include in the request for proposal the coverage to be provided;
101.1 	(4) a district that is self-insured on or before the date of enactment, or that is 
101.2 	self-insured with more than 1,000 insured lives, or a district in which the school board 
101.3 	adopted a motion on or before May 14, 2014, to approve a self-insured health care plan 
101.4 	to be effective July 1, 2014, may, but need not, request a proposal from an administrator 
101.5 	governed by chapter 43A;
101.6 	(5) requests for proposals must be sent to providers no less than 90 days prior to 
101.7 	the expiration of the existing contract; and
101.8 	(6) proposals must be submitted at least 60 days prior to the plan's renewal date 
101.9 	and all proposals shall be opened at the same time and in the presence of the exclusive 
101.10 	representative, where applicable.
101.11 	(g) Nothing in this section shall restrict the authority granted to school district boards 
101.12 	of education by section 471.59, except that districts will not be considered self-insured for 
101.13 	purposes of this subdivision solely through participation in a joint powers arrangement.
101.14 	(h) An entity providing group health insurance to a school district under a multiyear 
101.15 	contract must give notice of any rate or plan design changes applicable under the contract 
101.16 	at least 90 days before the effective date of any change. The notice must be given to the 
101.17 	school district and to the exclusive representatives of employees.
101.18 	(i) Notwithstanding the provisions of section 43A.316, subdivision 10, school 
101.19 	employees and their employers insured through chapter 43A are subject to the 
101.20 	requirements of this section.

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

101.22 	Sec. 108. Minnesota Statutes 2014, section 473.123, subdivision 2a, is amended to read:
101.23 		Subd. 2a.Terms. Following each apportionment of council districts, as provided 
101.24 	under subdivision 3a, council members must be appointed from newly drawn districts as 
101.25 	provided in subdivision 3a. Each council member, other than the chair, must reside in the 
101.26 	council district represented. Each council district must be represented by one member of the 
101.27 	council. The terms of members end with the term of the governor are staggered as follows: 
101.28 	members representing even-numbered districts have terms ending the first Monday in 
101.29 	January of the year ending in the numeral "7"; and members representing odd-numbered 
101.30 	districts have terms ending the first Monday in January of the year ending in the numeral 
101.31 	"5." Thereafter the term of each member is four years, with terms ending the first Monday 
101.32 	in January, except that all terms expire on the effective date of the next apportionment. 
101.33 	A member serves at the pleasure of the governor. A member shall continue to serve the 
101.34 	member's district until a successor is appointed and qualified; except that, following each 
101.35 	apportionment, the member shall continue to serve at large until the governor appoints 16 
102.1 	council members, one from each of the newly drawn council districts as provided under 
102.2 	subdivision 3a, to serve terms as provided under this section. The appointment to the 
102.3 	council must be made by the first Monday in March of the year in which the term ends.

102.4 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
102.5 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
102.6 	Scott, and Washington.

102.7 	Sec. 109. Minnesota Statutes 2014, section 473.123, subdivision 3, is amended to read:
102.8 		Subd. 3.Membership; appointment; qualifications. (a) Sixteen members must be 
102.9 	appointed by the governor from districts defined by this section. Each council member 
102.10 	must reside in the council district represented. Each council district must be represented 
102.11 	by one member of the council. Each Metropolitan Council member must be an elected city 
102.12 	council member or mayor, or county commissioner. A Metropolitan Council member's 
102.13 	office becomes vacant if the person appointed to that position ceases to be an elected city 
102.14 	council member or mayor, or county commissioner.
102.15 	(b) In addition to the notice required by section 15.0597, subdivision 4, notice of 
102.16 	vacancies and expiration of terms must be published in newspapers of general circulation 
102.17 	in the metropolitan area and the appropriate districts. The governing bodies of the statutory 
102.18 	and home rule charter cities, counties, and towns having territory in the district for which 
102.19 	a member is to be appointed must be notified in writing. The notices must describe the 
102.20 	appointments process and invite participation and recommendations on the appointment.
102.21 	(c) The governor shall create a nominating committee, composed A committee of 
102.22 	seven metropolitan citizens appointed by the governor, to shall nominate persons for 
102.23 	appointment to the council from districts. Three of the committee members must be local 
102.24 	elected officials appointed by the Association of Metropolitan Municipalities, one must be a 
102.25 	county commissioner appointed by the Association of Minnesota Counties, and three must 
102.26 	be appointed by the governor. Following the submission of applications as provided under 
102.27 	section 15.0597, subdivision 5, the nominating committee shall conduct public meetings, 
102.28 	after appropriate notice, to accept statements from or on behalf of persons who have applied 
102.29 	or been nominated for appointment and to allow consultation with and secure the advice 
102.30 	of the public and local elected officials. The committee shall hold the meeting on each 
102.31 	appointment in the district or in a reasonably convenient and accessible location in the part 
102.32 	of the metropolitan area in which the district is located. The committee may consolidate 
102.33 	meetings. Following the meetings, the committee shall submit to the governor a list of 
102.34 	nominees for each appointment. The governor is not required to appoint from the list.
103.1 	(d) Before making an appointment, the governor shall consult with all members of 
103.2 	the legislature from the council district for which the member is to be appointed.
103.3 	(e) Appointments to the council are subject to the advice and consent of the senate as 
103.4 	provided in section 15.066.
103.5 	(f) Members of the council must be appointed to reflect fairly the various 
103.6 	demographic, political, and other interests in the metropolitan area and the districts.
103.7 	(g) Members of the council must be persons knowledgeable about urban and 
103.8 	metropolitan affairs.
103.9 	(h) Any vacancy in the office of a council member shall immediately be filled 
103.10 	for the unexpired term. In filling a vacancy, the governor may forgo the requirements 
103.11 	of paragraph (c) if the governor has made appointments in full compliance with the 
103.12 	requirements of this subdivision within the preceding 12 months.

103.13 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
103.14 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
103.15 	Scott, and Washington.

103.16 	Sec. 110. Minnesota Statutes 2014, section 473.123, subdivision 4, is amended to read:
103.17 		Subd. 4.Chair; appointment, officers, selection; duties and compensation. (a) 
103.18 	The chair of the Metropolitan Council shall be appointed elected by the governor 16 
103.19 	members of the council as the 17th voting member thereof by and with the advice and 
103.20 	consent of the senate to serve at the pleasure of the governor council to represent the 
103.21 	metropolitan area at large. Senate confirmation shall be as provided by section 15.066.
103.22 	The chair of the Metropolitan Council shall, if present, preside at meetings of the 
103.23 	council, have the primary responsibility for meeting with local elected officials, serve as 
103.24 	the principal legislative liaison, present to the governor and the legislature, after council 
103.25 	approval, the council's plans for regional governance and operations, serve as the principal 
103.26 	spokesperson of the council, and perform other duties assigned by the council or by law.
103.27 	(b) The Metropolitan Council shall elect other officers as it deems necessary for 
103.28 	the conduct of its affairs for a one-year term. A secretary and treasurer need not be 
103.29 	members of the Metropolitan Council. Meeting times and places shall be fixed by the 
103.30 	Metropolitan Council and special meetings may be called by a majority of the members 
103.31 	of the Metropolitan Council or by the chair. The chair and each Metropolitan Council 
103.32 	member shall be reimbursed for actual and necessary expenses.
103.33 	(c) Each member of the council shall attend and participate in council meetings 
103.34 	and meet regularly with local elected officials and legislative members from the council 
104.1 	member's district. Each council member shall serve on at least one division committee for 
104.2 	transportation, environment, or community development.
104.3 	(d) In the performance of its duties the Metropolitan Council may adopt policies 
104.4 	and procedures governing its operation, establish committees, and, when specifically 
104.5 	authorized by law, make appointments to other governmental agencies and districts.

104.6 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
104.7 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
104.8 	Scott, and Washington. The term of the chair of the Metropolitan Council serving on the 
104.9 	effective date of this section ends on that date, but the chair may continue serving until 
104.10 	a new chair is elected by the council under this section.

104.11 	Sec. 111. Minnesota Statutes 2014, section 473J.07, subdivision 3, is amended to read:
104.12 		Subd. 3.Compensation. The authority may compensate its members, other than the 
104.13 	chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided 
104.14 	by other law, a salary in an amount fixed by the authority, and shall be reimbursed for 
104.15 	reasonable expenses to the same extent as a member No members of the authority receive 
104.16 	a salary.

104.17 	Sec. 112. Laws 2013, chapter 142, article 1, section 10, is amended to read:

104.18
104.19	Sec. 10. OFFICE OF ENTERPRISE 
TECHNOLOGY MN.IT SERVICES
 	$
	2,431,000
	$
	2,431,000
	
104.20 	During the biennium ending June 30, 2015, 
104.21 	the Office of Enterprise Technology MN.IT 
104.22 	Services must not charge fees to a public 
104.23 	noncommercial educational television 
104.24 	broadcast station eligible for funding under 
104.25 	Minnesota Statutes, chapter 129D, for 
104.26 	access to the state broadcast infrastructure. 
104.27 	If the access fees not charged to public 
104.28 	noncommercial educational television 
104.29 	broadcast stations total more than $400,000 
104.30 	for the biennium, the office may charge for 
104.31 	access fees in excess of these amounts.
104.32 	The commissioner of Minnesota management 
104.33 	and budget is authorized to provide cash 
105.1 	flow assistance of up to $110,000,000 from 
105.2 	the special revenue fund or other statutory 
105.3 	general funds as defined in Minnesota 
105.4 	Statutes, section 16A.671, subdivision 3, 
105.5 	paragraph (a), to the Office of Enterprise 
105.6 	Technology MN.IT Services for the purpose 
105.7 	of managing revenue and expenditure 
105.8 	differences during the initial phases of IT 
105.9 	consolidation. These funds shall be repaid 
105.10 	with interest by June 30, 2015 the end of the 
105.11 	fiscal year 2015 closing period.

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

105.13 	Sec. 113. Laws 2015, chapter 3, section 4, is amended to read:
105.14 	Sec. 4. AGENCY HEAD SALARY FREEZE.
 105.15 	Notwithstanding Minnesota Statutes, section 15A.0815, subdivisions 1 and 5, the 
105.16 	salary rate for positions listed in Minnesota Statutes, section 15A.0815, for positions 
105.17 	appointed by the governor, may not be set at a salary rate in excess of the previous 
105.18 	calendar year. The salary of the chair of the Metropolitan Council is $61,414, unless 
105.19 	changed under the process in Minnesota Statutes, section 15A.0815, subdivision 5.

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

105.21 	Sec. 114. LIMIT ON AGENCY HEAD SALARY INCREASE.
 105.22 	The percentage increase in salary granted to an agency head listed in Minnesota 
105.23 	Statutes, section 15A.0815, who is appointed by the governor may not exceed the lesser 
105.24 	of: (1) the percentage increase in Minnesota median household income, as determined by 
105.25 	the American Community Survey compiled by the United States Bureau of the Census, for 
105.26 	the most recent 12-month period for which data is available; or (2) the percentage increase 
105.27 	in the consumer price index, as determined by the United States Bureau of Economic 
105.28 	Analysis, for the most recent 12-month period for which data is available. 

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

105.30 	Sec. 115. LEGISLATIVE SURROGACY COMMISSION.
 105.31 		Subdivision 1.Membership. The Legislative Commission on Surrogacy shall 
105.32 	consist of 15 members, appointed as follows:
106.1 	(1) three members of the senate appointed by the senate majority leader;
106.2 	(2) three members of the senate appointed by the senate minority leader;
106.3 	(3) three members of the house of representatives appointed by the speaker of the 
106.4 	house of representatives;
106.5 	(4) three members of the house of representatives appointed by the house of 
106.6 	representatives minority leader;
106.7 	(5) the commissioner of human services or the commissioner's designee;
106.8 	(6) the commissioner of health or the commissioner's designee; and
106.9 	(7) a family court referee appointed by the chief justice of the state Supreme Court.
106.10 	Appointments must be made by June 1, 2015.
106.11 		Subd. 2.Chair. The commission shall elect a chair from among its members.
106.12 		Subd. 3.Meetings. The ranking majority member of the commission who is 
106.13 	appointed by the senate majority leader shall convene the first meeting by July 1, 2015. 
106.14 	The commission shall have at least six meetings but may not have more than ten meetings.
106.15 		Subd. 4.Conflict of interest. A commission member may not participate in or 
106.16 	vote on a decision of the commission in which the member has either a direct or indirect 
106.17 	personal financial interest. A witness at a public meeting of the commission must disclose 
106.18 	any financial conflict of interest.
106.19 		Subd. 5.Duties. The commission shall develop recommendations on public policy 
106.20 	and laws regarding surrogacy. To develop the recommendations, the commission shall 
106.21 	study surrogacy through public hearings, research, and deliberation. Topics for study 
106.22 	include, but are not limited to:
106.23 	(1) potential health and psychological effects and benefits on women who serve 
106.24 	as surrogates;
106.25 	(2) potential health and psychological effects and benefits on children born of 
106.26 	surrogates;
106.27 	(3) business practices of the fertility industry, including attorneys, brokers, and 
106.28 	clinics;
106.29 	(4) considerations related to different forms of surrogacy;
106.30 	(5) considerations related to the potential exploitation of women in surrogacy 
106.31 	arrangements;
106.32 	(6) contract law implications when a surrogacy contract is breached;
106.33 	(7) potential conflicts with statutes governing private adoption and termination 
106.34 	of parental rights;
107.1 	(8) potential for legal conflicts related to third-party reproduction, including conflicts 
107.2 	between or amongst the surrogate mother, the intended parents, the child, insurance 
107.3 	companies, and medical professionals;
107.4 	(9) public policy determinations of other jurisdictions with regard to surrogacy; and
107.5 	(10) information to be provided to a child born of a surrogate about the child's 
107.6 	biological and gestational parents.
107.7 		Subd. 6.Reporting. The commission must submit a report including its 
107.8 	recommendations and may draft legislation to implement its recommendations to the chairs 
107.9 	and ranking minority members of the legislative committees with primary jurisdiction 
107.10 	over health and judiciary in the house and senate by December 15, 2015. On topics where 
107.11 	the commission fails to reach consensus, a majority and minority report shall be issued.
107.12 		Subd. 7.Staffing. The Legislative Coordinating Commission shall provide staffing 
107.13 	and administrative support to the commission.
107.14 		Subd. 8.Expiration. The commission expires the day after submitting the report 
107.15 	required under subdivision 6.

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

107.17 	Sec. 116. SOCCER STADIUM.
 107.18 	No state funds may be appropriated or tax expenditures used to fund the construction 
107.19 	of a new major league soccer stadium. The state may not incur debt of the state to fund 
107.20 	construction of a new major league soccer stadium.

107.21 	Sec. 117. LIMIT ON INCREASE IN MANAGERIAL COMPENSATION.
 107.22 	During the biennium ending June 30, 2017, an employee covered by the managerial 
107.23 	plan in Minnesota Statutes, section 43A.18, subdivision 3, may not be granted a 
107.24 	percentage increase in annual salary that exceeds the lesser of: (1) the percentage increase 
107.25 	in Minnesota median household income, as determined by the American Community 
107.26 	Survey compiled by the United States Bureau of the Census, for the most recent 12-month 
107.27 	period for which data is available; or (2) the percentage increase in the consumer price 
107.28 	index, as determined by the United States Bureau of Economic Analysis, for the most 
107.29 	recent 12-month period for which data is available.

107.30 	Sec. 118. LIMIT ON EXPENDITURES FOR ADVERTISING.
 107.31 	During the biennium ending June 30, 2017, an executive branch agency's spending 
107.32 	on advertising and promotions may not exceed 90 percent of the amount the agency 
107.33 	spent on advertising and promotions during the biennium ending June 30, 2015. The 
108.1 	commissioner of management and budget must ensure compliance with this limit, and 
108.2 	may issue guidelines and policies to executive agencies. The commissioner may forbid 
108.3 	an agency from engaging in advertising as the commissioner determines is necessary to 
108.4 	ensure compliance with this section. This section does not apply to the Minnesota Lottery 
108.5 	or Explore Minnesota Tourism. Spending during the biennium ending June 30, 2017, on 
108.6 	advertising relating to a declared emergency, an emergency, or a disaster, as those terms 
108.7 	are defined in Minnesota Statutes, section 12.03, is excluded for purposes of this section.

108.8 	Sec. 119. PARKING RAMP FINANCING.
 108.9 	The debt service on the design and construction costs allocated to the parking garage 
108.10 	located on the block bounded by Sherburne Avenue on the north, Park Street on the west, 
108.11 	University Avenue on the south, and North Capitol Boulevard on the east must be paid 
108.12 	for exclusively by fees charged to persons parking in that parking garage. No fees may 
108.13 	be charged to members of the public parking in spaces designated for persons with a 
108.14 	disability parking certificate.

108.15 	Sec. 120. METROPOLITAN COUNCIL APPOINTMENTS; IMMEDIATE 
108.16 	TRANSITION TO STAGGERED TERMS.
 108.17 	For members serving on the Metropolitan Council on the effective date of this 
108.18 	section, other than the chair, members representing even-numbered districts shall serve 
108.19 	terms ending the first Monday in January 2019, and members representing odd-numbered 
108.20 	districts shall serve terms ending the first Monday in January 2017. Thereafter the term of 
108.21 	each member is four years, with terms ending the first Monday in January.

108.22 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
108.23 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
108.24 	Scott, and Washington.

108.25 	Sec. 121. REPORT ON AGENCY CHIEF INFORMATION OFFICERS.
 108.26 	The chief information officer of MN.IT must report to the legislature by January 15, 
108.27 	2016, on reduction in the number of chief information officers (CIOs) in state agencies. 
108.28 	The report must include the number of CIOs on July 1, 2015, the number on January 
108.29 	15, 2016, and plans to reduce that number.

108.30 	Sec. 122. TRANSITION.
 108.31 	(a) Members of an ethnic council specified in new Minnesota Statutes, section 
108.32 	15.0145, on July 1, 2015, continue to serve on the council until the end of their current 
109.1 	term. However, if a member of a council has served eight years or more on the council 
109.2 	at any time before December 31, 2015, the term of that member expires December 31, 
109.3 	2015. If a council has more members on July 1, 2015, than is provided for by Minnesota 
109.4 	Statutes, section 15.0145, positions on the council shall not be filled until the expiration of 
109.5 	a term results in fewer members on the council than provided for in Minnesota Statutes, 
109.6 	section 15.0145. Membership qualifications newly specified in Minnesota Statutes, section 
109.7 	15.0145, must be complied with as soon as possible when terms of current members expire.
109.8 	(b) The Legislative Coordinating Commission must appoint an executive director 
109.9 	for each council no later than November 15, 2015. An incumbent executive director of a 
109.10 	council may apply to be appointed by the Legislative Coordinating Commission but, if 
109.11 	not selected, the employment of the incumbent ends when the Legislative Coordinating 
109.12 	Commission appoints a new executive director, or on another date determined by the 
109.13 	Legislative Coordinating Commission. Other council staff are transferred to employment 
109.14 	with the reformulated councils specified in Minnesota Statutes, section 15.0145.

109.15 	Sec. 123. REVISOR'S INSTRUCTION.
 109.16 	(a) The revisor of statutes shall renumber the subdivisions in Minnesota Statutes, 
109.17 	section 240.01, to put the definitions contained in that section in alphabetical order.
109.18 	(b) The revisor of statutes shall correct any cross-references in Minnesota Statutes 
109.19 	and Minnesota Rules as a result of the renumbering in paragraph (a).
109.20 	(c) In the next and subsequent edition of Minnesota Statutes, the Revisor of Statutes 
109.21 	shall substitute a reference to section 6.481 for each reference to section 6.48.

109.22 	Sec. 124. REVISOR INSTRUCTION.
 109.23 	(a) In the next and subsequent editions of Minnesota Statutes, the revisor of statutes 
109.24 	shall substitute the names of councils as follows in each place where the names occur:
109.25 	(1) Minnesota African Heritage Council, in place of Council on Black Minnesotans; 
109.26 	and 
109.27 	(2) Minnesota Council on Latino Affairs, in place of Council on Affairs of 
109.28 	Chicano/Latino People.
109.29 	(b) The revisor of statutes shall change cross-references to sections 3.9223, 3.9225, 
109.30 	and 3.9226, with Minnesota Statutes, section 15.0145, and make changes necessary to 
109.31 	correct punctuation, grammar, or sentence structure.

109.32 	Sec. 125.  REPEALER.
 110.1 	(a) Minnesota Statutes 2014, sections 10A.25, subdivisions 1, 2, 2a, 3, 3a, 5, and 10; 
110.2 	10A.255, subdivisions 1 and 3; 10A.27, subdivision 11; 10A.30; 10A.31, subdivisions 1, 
110.3 	3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b, and 11; 10A.315; 10A.321; 10A.322, subdivisions 
110.4 	1 and 2; 10A.323; and 10A.324, subdivisions 1 and 3, and Minnesota Rules, parts 
110.5 	4503.1400, subparts 2, 3, 5, 6, 7, 8, and 9; and 4503.1450, are repealed. This paragraph 
110.6 	is effective July 1, 2015, and applies to elections held on or after that date. Amounts 
110.7 	designated under section 10A.31 on income tax and property tax refund returns filed after 
110.8 	June 30, 2015, are not effective and remain in the general fund.
110.9 	(b) Minnesota Statutes 2014, sections 3.886; 6.48; 349A.07, subdivision 6; and 
110.10 	375.23, are repealed.
110.11 	(c) Minnesota Statutes 2014, section 240.01, subdivisions 12 and 23, are repealed.
110.12 	(d) Minnesota Statutes 2014, sections 3.9223; 3.9225; and 3.9226, subdivisions 1, 
110.13 	2, 3, 4, 5, 6, and 7, are repealed.