1.1A bill for an act1.2relating to the operation of state government; appropriating money for the 1.3legislature, governor's office, state auditor, attorney general, secretary of state, 1.4certain agencies, boards, councils, retirement funds, and military affairs and 1.5veterans affairs; creating an ethnic councils account; specifying how legislative 1.6and congressional districts must be drawn; evaluating economic development 1.7incentive programs; transferring responsibility fiscal notes, local impact notes, or 1.8revenue estimates to the legislative auditor; specifying county audits by the state 1.9auditor; modifying campaign finance provisions; defining substantial economic 1.10impact for rulemaking; changing rulemaking provisions; requiring the legislative 1.11auditor to conduct an impact analysis on certain rules; establishing three ethnic 1.12councils; requiring a tracking list of agency projects; allowing prepay for certain 1.13software and information technology hosting services; changing state budget 1.14requirements; limiting a fee or fine increase to ten percent in a biennium; 1.15providing free rehearsal and storage space for the state band; modifying notice 1.16provisions for state construction and remodeling plans; providing reimbursement 1.17for reasonable accommodations; modifying grant agreement provisions; making 1.18changes to provisions governing veteran-owned small businesses; changing 1.19provisions governing the Office of MN.IT Services; limiting the number of 1.20full-time equivalent executive branch agency employees; establishing the healthy 1.21eating, here at home program; establishing expedited and temporary licensing for 1.22former and current military members for certain occupations; adjusting certain 1.23barber board fees for members of the military; modifying provisions governing 1.24the National Guard; modifying the Veterans Preference Act; designating an Honor 1.25and Remember flag; changing provisions governing pari-mutuel horse racing; 1.26changing a fee provision for federal tax liens; changing a contracting provision 1.27for the Office of the Commissioner of Iron Range resources and rehabilitation; 1.28changing certain requirements for corporations; modifying provisions for 1.29accountants; changing a farm product lien; adding an exception to the 1.30rehabilitation of criminal offenders provisions; limiting railroad condemnation 1.31powers over certain properties; providing that school employees and districts are 1.32subject to certain group health insurance requirements; changing provisions 1.33governing the Metropolitan Council; designating the salary for the chair of the 1.34Metropolitan Council; limiting the salary increase for agency heads; establishing 1.35the Legislative Surrogacy Commission; prohibiting state funds, tax expenditures, 1.36or state indebtedness to fund a major league soccer stadium; limiting 1.37compensation for employees in the managerial plan; limiting expenditures 1.38for advertising; specifying debt service on a certain parking ramp financing; 1.39specifying terms for members of the Metropolitan Council; requiring reports;2.1amending Minnesota Statutes 2014, sections 3.971, by adding a subdivision; 2.23.98; 3.987, subdivision 1; 10.43; 10A.01, subdivision 26; 10A.105, subdivision 2.31; 10A.15, subdivision 1; 10A.245, subdivision 2; 10A.257, subdivision 1; 2.410A.38; 14.02, by adding a subdivision; 14.05, subdivisions 1, 2; 14.116; 2.514.127; 14.131; 14.388, subdivision 2; 14.389, subdivision 2; 14.44; 14.45; 2.616A.065; 16A.103, by adding a subdivision; 16A.11, by adding subdivisions; 2.716A.1283; 16B.24, by adding a subdivision; 16B.335, subdivision 1; 16B.371; 2.816B.97, subdivision 1, by adding a subdivision; 16C.03, subdivision 16; 16C.16, 2.9subdivision 6a; 16C.19; 16E.01; 16E.016; 16E.03, subdivision 1; 16E.0465; 2.1016E.14, subdivision 3; 16E.145; 16E.19, by adding a subdivision; 148.57, by 2.11adding a subdivision; 148.624, subdivision 5; 148B.33, by adding a subdivision; 2.12148B.53, by adding a subdivision; 148B.5301, by adding a subdivision; 2.13148F.025, by adding a subdivision; 153.16, subdivisions 1, 4; 154.003; 154.11, 2.14subdivision 3; 190.19, subdivision 2a; 192.38, subdivision 1; 192.501, by adding 2.15a subdivision; 197.46; 211B.37; 240.01, subdivision 22, by adding subdivisions; 2.16240.011; 240.03; 240.08, subdivisions 2, 4, 5; 240.10; 240.13, subdivisions 5, 2.176; 240.135; 240.15, subdivisions 1, 6; 240.16, subdivision 1; 240.22; 240.23; 2.18272.484; 298.22, subdivision 1; 303.19; 304A.301, subdivisions 1, 5, 6, by 2.19adding a subdivision; 326A.01, subdivisions 2, 12, 13a, 15, 16; 326A.02, 2.20subdivisions 3, 5; 326A.05, subdivisions 1, 3; 326A.10; 336A.09, subdivision 2.211; 364.09; 471.6161, subdivision 8; 473.123, subdivisions 2a, 3, 4; 473J.07, 2.22subdivision 3; Laws 2013, chapter 142, article 1, section 10; Laws 2015, chapter 2.233, section 4; proposing coding for new law in Minnesota Statutes, chapters 2; 3; 2.246; 15; 16A; 16B; 16E; 43A; 138; 197; 383B; repealing Minnesota Statutes 2014, 2.25sections 3.886; 3.9223; 3.9225; 3.9226, subdivisions 1, 2, 3, 4, 5, 6, 7; 6.48; 2.2610A.25, subdivisions 1, 2, 2a, 3, 3a, 5, 10; 10A.255, subdivisions 1, 3; 10A.27, 2.27subdivision 11; 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 2.2810a, 10b, 11; 10A.315; 10A.321; 10A.322, subdivisions 1, 2; 10A.323; 10A.324, 2.29subdivisions 1, 3; 240.01, subdivisions 12, 23; 349A.07, subdivision 6; 375.23; 2.30Minnesota Rules, parts 4503.1400, subparts 2, 3, 5, 6, 7, 8, 9; 4503.1450.2.31BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:2.32ARTICLE 12.33STATE GOVERNMENT APPROPRIATIONS

2.34Section 1. STATE GOVERNMENT APPROPRIATIONS.

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

2.42APPROPRIATIONS2.43Available for the Year2.44Ending June 302.4520162017

2.46Sec. 2. LEGISLATURE

3.13.2Subdivision 1.Total Appropriation$69,160,00067,595,000

3.3Appropriations by Fund3.4201620173.5General67,032,00067,467,0003.6Health Care Access128,000128,0003.7Special Revenue2,000,0000

3.8The amounts that may be spent for each 3.9purpose are specified in the following 3.10subdivisions.

3.11Subd. 2.Senate21,501,00021,501,000

3.12$1,723,000 of the senate carryforward 3.13balance shall cancel to the general fund on 3.14July 1, 2015.

3.15Subd. 3.House of Representatives28,998,00028,998,000

3.16During the biennium ending June 30, 2017, 3.17any reductions from the prior biennium's 3.18base level appropriation for the house of 3.19representatives must be implemented by 3.20making equal reductions in expenditures 3.21for house staff and expenditures for house 3.22members.3.23During the biennium ending June 30, 2017, 3.24any revenues received by the house of 3.25representatives from voluntary donations 3.26to support broadcast or print media are 3.27appropriated to the house of representatives.3.28$3,938,000 of the house carryforward 3.29balance shall cancel to the general fund on 3.30July 1, 2015.

3.31Subd. 4.Legislative Coordinating Commission18,661,00017,096,000

3.32Appropriations by Fund3.33General16,533,00016,968,0003.34Health Care Access 128,000128,0003.35Special Revenue2,000,0000

4.1$1,567,000 of the Legislative Coordinating 4.2Commission carryforward balance and the 4.3Revisor of Statutes carryforward balance 4.4shall cancel to the general fund on July 1, 4.52015.4.6$7,132,000 each year from the general fund 4.7is to the Office of the Legislative Auditor. 4.8The auditor is requested to do an evaluation 4.9of Minnesota veterans homes.4.10$435,000 in fiscal year 2017 is for the 4.11revisor's administrative rules system.4.12$595,000 each year is for the Office of the 4.13Revisor of Statutes to maintain and improve 4.14information technology services.4.15$10,000 each year is for purposes of the 4.16legislators' forum, through which Minnesota 4.17legislators meet with counterparts from 4.18South Dakota, North Dakota, and Manitoba 4.19to discuss issues of mutual concern.4.20$2,000,000 is transferred from the state 4.21employee group insurance trust fund to a 4.22rulemaking account in the special revenue 4.23fund.4.24$2,000,000 for the biennium ending June 30, 4.252017, is appropriated from the rulemaking 4.26account in the special revenue fund to the 4.27legislative auditor to:4.28(1) reimburse executive agencies for costs 4.29associated with determining if proposed 4.30rules have substantial economic impact and 4.31for costs of peer review advisory panels 4.32for proposed rules that have substantial 4.33economic impact; and5.1(2) reimburse the legislative auditor for costs 5.2associated with this process.

5.35.4Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR$3,134,000$3,134,000

5.5(a) This appropriation is to fund the Office of 5.6the Governor and Lieutenant Governor.5.7(b) $19,000 the first year and $19,000 the 5.8second year are for necessary expenses in the 5.9normal performance of the Governor's and 5.10Lieutenant Governor's duties for which no 5.11other reimbursement is provided.5.12(c) During the biennium ending June 30, 5.132017, the Office of the Governor may not 5.14receive payments of more than $805,000 5.15each fiscal year from other executive 5.16agencies to support personnel costs incurred 5.17by the office. By September 1 of each year, 5.18the commissioner of management and budget 5.19shall report to the chairs and ranking minority 5.20members of the senate State Departments 5.21and Veterans Affairs Budget Division and the 5.22house of representatives State Government 5.23Finance Committee any personnel costs 5.24incurred by the Offices of the Governor and 5.25Lieutenant Governor that were supported 5.26by appropriations to other agencies during 5.27the previous fiscal year. The Office of the 5.28Governor shall inform the chairs and ranking 5.29minority members of the committees before 5.30initiating any interagency agreements.

5.31Sec. 4. STATE AUDITOR$1,982,000$1,982,000

5.32Sec. 5. ATTORNEY GENERAL$22,897,000$22,897,000

6.1Appropriations by Fund6.2201620176.3General20,679,00020,679,0006.46.5State Government Special Revenue1,823,0001,823,0006.6Environmental145,000145,0006.7Remediation250,000250,000

6.8Of this appropriation, $65,000 in the first 6.9year and $65,000 in the second year are 6.10from the general fund for transfer to the 6.11commissioner of public safety for a grant to 6.12the Minnesota County Attorneys Association 6.13for prosecutor and law enforcement training.

6.14Sec. 6. SECRETARY OF STATE$6,198,000$6,198,000

6.15$420,000 the first year and $440,000 the 6.16second year are for the Safe at Home 6.17program.6.18Any funds available in the account 6.19established in Minnesota Statutes, section 6.205.30, pursuant to the Help America Vote Act, 6.21are appropriated for the purposes and uses 6.22authorized by federal law.

6.236.24Sec. 7. CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD$893,000$893,000

6.25(a) All unspent funds, estimated to be 6.26$150,000, from the Web site redevelopment 6.27project appropriation under Laws 2013, 6.28chapter 142, article 1, section 7, are canceled 6.29to the general fund on June 30, 2015.6.30(b) $150,000 in fiscal year 2016 is 6.31appropriated to the Campaign Finance 6.32and Public Disclosure Board to complete 6.33redevelopment of its Web site. This 6.34appropriation is available until June 30, 2017.7.1(c) By January 15, 2016, the director of the 7.2Campaign Finance and Public Disclosure 7.3Board shall report to the chairs and ranking 7.4minority members of the senate State 7.5Departments and Veterans Affairs Budget 7.6Division and the house of representatives 7.7State Government Finance Committee on the 7.8status of the Web site redevelopment project. 7.9The report shall include a budget detailing 7.10total dollars to be spent, completion date of 7.11the project, and dollars expended to date.

7.12Sec. 8. INVESTMENT BOARD$139,000$139,000

7.13Sec. 9. ADMINISTRATIVE HEARINGS$7,627,000$7,627,000

7.14Appropriations by Fund7.15201620177.16General377,000377,0007.177.18Workers' Compensation7,250,0007,250,000

7.19Campaign Violations Hearings. $115,000 7.20each year is appropriated from the general 7.21fund for the cost of considering complaints 7.22filed under Minnesota Statutes, section 7.23211B.32. These amounts may be spent in 7.24either year of the biennium.7.25$6,000 in fiscal year 2016 and $6,000 in 7.26fiscal year 2017 are appropriated from the  7.27general fund to the Office of Administrative 7.28Hearings for the cost of considering data  7.29practices complaints filed under Minnesota  7.30Statutes, section 13.085. These amounts 7.31may be used in either year of the biennium. 7.32$6,000 is added to the agency's base to be  7.33available for the biennium.

7.34Sec. 10. MN.IT SERVICES$2,431,000$2,431,000

8.1During the biennium ending June 30, 2017, 8.2MN.IT Services must not charge fees to a 8.3public noncommercial educational television 8.4broadcast station eligible for funding under 8.5Minnesota Statutes, chapter 129D, for 8.6access to the state broadcast infrastructure. 8.7If the access fees not charged to public 8.8noncommercial educational television 8.9broadcast stations total more than $400,000 8.10for the biennium, the office may charge for 8.11access fees in excess of these amounts.8.12The commissioner of management and 8.13budget is authorized to provide cash flow 8.14assistance of up to $110,000,000 from the 8.15special revenue fund or other statutory 8.16general funds, as defined in Minnesota 8.17Statutes, section 16A.671, subdivision 8.183, paragraph (a), to the Office of MN.IT 8.19Services for the purpose of managing 8.20revenue and expenditure differences during 8.21the initial phases of IT consolidation. These 8.22funds shall be repaid with interest by the end 8.23of the fiscal year 2017 closing period.

8.24Sec. 11. ADMINISTRATION

8.25Subdivision 1.Total Appropriation$19,781,000$19,191,000

8.26The amounts that may be spent for each 8.27purpose are specified in the following 8.28subdivisions.

8.29Subd. 2.Government and Citizen Services7,265,0007,095,000

8.30$210,000 the first year and $40,000 the 8.31second year are for increased information 8.32technology associated with supporting small 8.33business purchasing programs.9.1$74,000 the first year and $74,000 the second 9.2year are for the Council on Developmental 9.3Disabilities.

9.4Subd. 3.Strategic Management Services1,789,0001,789,000

9.5Subd. 4.Fiscal Agent10,727,00010,307,000

9.6The appropriations under this section are to 9.7the commissioner of administration for the 9.8purposes specified.9.9In-Lieu of Rent. $7,488,000 the first year 9.10and $7,488,000 the second year are for 9.11space costs of the legislature and veterans 9.12organizations, ceremonial space, and 9.13statutorily free space.9.14Relocation Expenses. $1,284,000 the first 9.15year and $864,000 the second year are for 9.16rent loss and relocation expenses related to 9.17the Capitol renovation project. Relocation 9.18expenses include only moving of art, fixtures, 9.19renovation supplies, and similar materials, 9.20and may not be used for moving Senators, 9.21Senate staff, and related offices and supplies. 9.22This is a onetime appropriation.9.23Public Broadcasting. (a) $1,161,000 the 9.24first year and $1,161,000 the second year are 9.25for matching grants for public television.9.26(b) $200,000 the first year and $200,000 9.27the second year are for public television 9.28equipment grants.9.29(c) The equipment or matching grants in 9.30paragraphs (a) and (b) must be allocated 9.31after considering the recommendations of the 9.32Minnesota Public Television Association.9.33(d) $287,000 the first year and $287,000 the 9.34second year are for community service grants 10.1to public educational radio stations. This 10.2appropriation may be used to disseminate 10.3emergency information in foreign languages.10.4(e) $100,000 the first year and $100,000 10.5the second year are for equipment grants 10.6to public educational radio stations. This 10.7appropriation may be used for the repair, 10.8rental, and purchase of equipment including 10.9equipment under $500.10.10(f) The grants in paragraphs (d) and (e) 10.11must be allocated after considering the 10.12recommendations of the Association of 10.13Minnesota Public Education Radio Stations 10.14under Minnesota Statutes, section 129D.14. 10.15As a condition of receiving grants under 10.16paragraphs (d) and (e), the Association of 10.17Minnesota Public Education Radio Stations 10.18must agree that it will not take any steps 10.19leading to the operation of new stations 10.20unless specifically authorized by a future law.10.21(g) $207,000 the first year and $207,000 10.22the second year are for equipment grants 10.23to Minnesota Public Radio, Inc., including 10.24upgrades to Minnesota's Emergency Alert 10.25and AMBER Alert Systems.10.26(h) Any unencumbered balance remaining 10.27the first year for grants to public television or 10.28radio stations does not cancel and is available 10.29for the second year.

10.3010.3110.32Sec. 12. CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD$325,000$325,000

10.3310.34Sec. 13. MINNESOTA MANAGEMENT AND BUDGET$18,757,000$18,757,000

11.1$156,000 the first year and $156,000 the 11.2second year are to develop and implement 11.3a return on taxpayer investment (ROTI) 11.4methodology using the Pew-MacArthur 11.5Results First framework to evaluate 11.6corrections and human services programs 11.7administered and funded by state and 11.8county governments. The commissioner 11.9shall engage and work with staff from 11.10Pew-MacArthur Results First, and shall 11.11consult with representatives of other state 11.12agencies, counties, legislative staff, the 11.13commissioners of corrections and human 11.14services, and other commissioners of state 11.15agencies and stakeholders to implement the 11.16established methodology. The commissioner 11.17of management and budget shall report 11.18on implementation progress and make 11.19recommendations to the governor and 11.20legislature by January 31, 2017.11.21The commissioner must report to the chairs 11.22and ranking minority members of the 11.23House of Representatives State Government 11.24Finance Committee and the Senate State 11.25Departments and Veterans Budget Division 11.26by July 15, 2015, on the gainsharing program 11.27in Minnesota Statutes, Section 16A.90. The 11.28report must include information on how the 11.29commissioner has promoted the program 11.30to state employees, results achieved under 11.31the program, and recommendations for any 11.32legislative changes needed to make the 11.33program more effective.

11.34Sec. 14. REVENUE

11.35Subdivision 1.Total Appropriation$140,717,000$139,537,000

12.1Appropriations by Fund12.22016201712.3General136,482,000135,302,00012.4Health Care Access1,749,0001,749,00012.512.6Highway User Tax Distribution2,183,0002,183,00012.7Environmental303,000303,000

12.8Subd. 2.Tax System Management112,101,000110,921,000

12.9Appropriations by Fund12.10General107,866,000106,686,00012.11Health Care Access1,749,0001,749,00012.1212.13Highway User Tax Distribution2,183,0002,183,00012.14Environmental303,000303,000

12.15Base reductions must be made from expenses 12.16related to the capital equipment sales tax 12.17repealed in 2014, and cannot be applied to 12.18compliance activities.12.19Appropriation; Taxpayer Assistance. 12.20(a) $400,000 each year from the general 12.21fund is for grants to one or more nonprofit 12.22organizations, qualifying under section 12.23501(c)(3) of the Internal Revenue Code of 12.241986, to coordinate, facilitate, encourage, and 12.25aid in the provision of taxpayer assistance 12.26services. The unencumbered balance in the 12.27first year does not cancel but is available for 12.28the second year.12.29(b) For purposes of this section, "taxpayer 12.30assistance services" means accounting 12.31and tax preparation services provided by 12.32volunteers to low-income, elderly, and 12.33disadvantaged Minnesota residents to help 12.34them file federal and state income tax returns 12.35and Minnesota property tax refund claims 12.36and to provide personal representation before 13.1the Department of Revenue and Internal 13.2Revenue Service.

13.3Subd. 3.Debt Collection Management28,616,00028,616,000

13.4Sec. 15. GAMBLING CONTROL$3,959,000$3,959,000

13.5These appropriations are from the lawful 13.6gambling regulation account in the special 13.7revenue fund.

13.8Sec. 16. RACING COMMISSION$899,000$1,081,000

13.9These appropriations are from the racing 13.10and card playing regulation accounts in the 13.11special revenue fund.

13.12Sec. 17. STATE LOTTERY

13.13Notwithstanding Minnesota Statutes, section 13.14349A.10, subdivision 3, the operating budget 13.15must not exceed $31,000,000 in fiscal year 13.162016 and $31,000,000 in fiscal year 2017.

13.17Sec. 18. AMATEUR SPORTS COMMISSION$253,000$253,000

13.1813.19Sec. 19. COUNCIL ON BLACK MINNESOTANS$392,000$392,000

13.20These appropriations are from the ethnic 13.21councils account in the special revenue fund.13.22The general fund base in fiscal years 2018 and 13.232019 for this council is $392,000 each year.

13.2413.25Sec. 20. COUNCIL ON ASIAN-PACIFIC MINNESOTANS$354,000$354,000

13.26These appropriations are from the ethnic 13.27councils account in the special revenue fund.13.28The general fund base in fiscal years 2018 and 13.292019 for this council is $354,000 each year.

14.114.2Sec. 21. COUNCIL ON AFFAIRS OF CHICANO/LATINO PEOPLE$375,000$375,000

14.3These appropriations are from the ethnic 14.4councils account in the special revenue fund.14.5The general fund base in fiscal years 2018 and 14.62019 for this council is $375,000 each year.

14.7Sec. 22. INDIAN AFFAIRS COUNCIL$562,000$562,000

14.8These appropriations are from the ethnic 14.9councils account in the special revenue fund.14.10The general fund base in fiscal years 2018 and 14.112019 for this council is $562,000 each year.

14.1214.13Sec. 23. MINNESOTA HISTORICAL SOCIETY

14.14Subdivision 1.Total Appropriation$22,673,000$22,464,000

14.15The amounts that may be spent for each 14.16purpose are specified in the following 14.17subdivisions.

14.18Subd. 2.Operations and Programs22,160,00022,160,000

14.19Notwithstanding Minnesota Statutes, section 14.20138.668, the Minnesota Historical Society 14.21may not charge a fee for its general tours at 14.22the Capitol, but may charge fees for special 14.23programs other than general tours.14.24$750,000 the first year and $750,000 the 14.25second year are for digital preservation  14.26and access, including planning and 14.27implementation of a program to preserve 14.28and make  available resources related to 14.29Minnesota history.14.30$75,000 the first year and $75,000 the second 14.31year are for activities to enhance educational 14.32achievement through history education.

15.1Subd. 3.Fiscal Agent

15.2(a) Minnesota International Center39,00039,000

15.3(b) Minnesota Air National Guard Museum34,000-0-

15.4(c) Minnesota Military Museum150,00050,000

15.5(d) Farmamerica190,000115,000

15.6(e) Hockey Hall of Fame100,000100,000

15.7Balances Forward. Any unencumbered 15.8balance remaining in this subdivision the first 15.9year does not cancel but is available for the 15.10second year of the biennium.

15.11Subd. 4.Appropriation Limit

15.12Notwithstanding Minnesota Statutes, section 15.13290.0681, subdivision 7, paragraph (b), 15.14the fiscal year 2016 appropriation for 15.15grants in lieu of credit for historic structure 15.16rehabilitation is $457,000.

15.17Sec. 24. BOARD OF THE ARTS

15.18Subdivision 1.Total Appropriation$7,514,000$7,514,000

15.19The amounts that may be spent for each 15.20purpose are specified in the following 15.21subdivisions.

15.22Subd. 2.Operations and Services575,000575,000

15.23Subd. 3.Grants Program4,800,0004,800,000

15.24Subd. 4.Regional Arts Councils2,139,0002,139,000

15.25Unencumbered Balance Available. Any 15.26unencumbered balance remaining in this 15.27section the first year does not cancel, but is 15.28available for the second year of the biennium.15.29Projects located in Minnesota; travel 15.30restriction. Money appropriated in this 15.31section and distributed as grants may only 16.1be spent on projects located in Minnesota. 16.2A recipient of a grant funded by an 16.3appropriation in this section must not use 16.4more than ten percent of the total grant for 16.5costs related to travel outside the state of 16.6Minnesota.

16.716.8Sec. 25. MINNESOTA HUMANITIES CENTER$1,100,000$850,000

16.9$250,000 the first year is for a grant to 16.10Everybody Wins!-Minnesota, a Minnesota 16.11501(c)(3) corporation, to operate a reading 16.12program for Minnesota children. Any 16.13balance in the first year does not cancel but is 16.14available in the second year.16.15$250,000 the first year and $250,000 the 16.16second year are for a grant to the Minnesota 16.17Council on Economic Education to provide 16.18staff development to teachers for the 16.19implementation of the state graduation 16.20standards in learning areas relating to 16.21economic education. This is a onetime 16.22appropriation. The commissioner, in 16.23consultation with the council, shall develop 16.24expected results of staff development, 16.25eligibility criteria for participants, an 16.26evaluation procedure, and guidelines for 16.27direct and in-kind contributions by the 16.28council. This appropriation does not cancel, 16.29but is available until expended.16.30$250,000 in fiscal year 2016 and $250,000 in 16.31fiscal year 2017 are for the healthy eating, 16.32here at home program under Minnesota 16.33Statutes, section 138.912. No more than 16.34three percent of the appropriation may be 16.35used for the nonprofit administration of the 17.1grant program under Minnesota Statutes, 17.2section 138.912.

17.3Sec. 26. BOARD OF ACCOUNTANCY$628,000$618,000

17.417.517.617.7Sec. 27. BOARD OF ARCHITECTURE ENGINEERING, LAND SURVEYING, LANDSCAPE ARCHITECTURE, GEOSCIENCE, AND INTERIOR DESIGN$774,000$774,000

17.817.9Sec. 28. BOARD OF COSMETOLOGIST EXAMINERS$1,346,000$1,346,000

17.10Sec. 29. BOARD OF BARBER EXAMINERS$317,000$317,000

17.11Sec. 30. HUMAN RIGHTS.$3,505,000$3,505,000

17.12$80,000 each year is for operation of an 17.13office in St. Cloud.

17.1417.15Sec. 31. GENERAL CONTINGENT ACCOUNTS$750,000$500,000

17.16Appropriations by Fund17.172016201717.18General250,000-0-17.1917.20State Government Special Revenue400,000400,00017.2117.22Workers' Compensation100,000100,000

17.23(a) The appropriations in this section 17.24may only be spent with the approval of 17.25the governor after consultation with the 17.26Legislative Advisory Commission pursuant 17.27to Minnesota Statutes, section 3.30.17.28(b) If an appropriation in this section for 17.29either year is insufficient, the appropriation 17.30for the other year is available for it.17.31(c) If a contingent account appropriation 17.32is made in one fiscal year, it should be 17.33considered a biennial appropriation.

18.1Sec. 32. TORT CLAIMS$161,000$161,000

18.2These appropriations are to be spent by the 18.3commissioner of management and budget 18.4according to Minnesota Statutes, section 18.53.736, subdivision 7. If the appropriation for 18.6either year is insufficient, the appropriation 18.7for the other year is available for it.

18.818.9Sec. 33. MINNESOTA STATE RETIREMENT SYSTEM$6,552,000$8,936,000

18.10These amounts are estimated to be needed 18.11under Minnesota Statutes, sections 3A.03, 18.12subdivision 2; 3A.04, subdivisions 3 and 4; 18.13and 3A.115 for the Combined Legislators 18.14and Constitutional Officers Retirement Plan.

18.1518.16Sec. 34. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION$6,000,000$6,000,000

18.17Notwithstanding Minnesota Statutes, section 18.18353.505, the state payments to the Public 18.19Employees Retirement Association on behalf 18.20of the former MERF division account are 18.21$6,000,000 on September 15, 2015 and 18.22$6,000,000 on September 15, 2016.

18.2318.24Sec. 35. TEACHERS RETIREMENT ASSOCIATION$29,831,000$29,831,000

18.25The amounts estimated to be needed are as 18.26follows:18.27Special Direct State Aid. $27,331,000 the 18.28first year and $27,331,000 the second year 18.29are for special direct state aid authorized 18.30under Minnesota Statutes, section 354.436.18.31Special Direct State Matching Aid. 18.32$2,500,000 the first year and $2,500,000 18.33the second year are for special direct state 19.1matching aid authorized under Minnesota 19.2Statutes, section 354.435.

19.319.4Sec. 36. ST. PAUL TEACHERS RETIREMENT FUND$9,827,000$9,827,000

19.5The amounts estimated to be needed for 19.6special direct state aid to the first class 19.7city teachers retirement fund association 19.8authorized under Minnesota Statutes, section 19.9354A.12, subdivisions 3a and 3c.

19.10Sec. 37. MILITARY AFFAIRS

19.11Subdivision 1.Total Appropriation$19,368,000$19,368,000

19.12The amounts that may be spent for each 19.13purpose are specified in the following 19.14subdivisions.

19.15Subd. 2.Maintenance of Training Facilities9,661,0009,661,000

19.16Subd. 3.General Support2,819,0002,819,000

19.17Subd. 4.Enlistment Incentives6,888,0006,888,000

19.18If appropriations for either year of the 19.19biennium are insufficient, the appropriation 19.20from the other year is available. The 19.21appropriations for enlistment incentives are 19.22available until expended.19.23Of the funds carried forward from fiscal year 19.242015 to fiscal year 2016, in the enlistment 19.25incentives appropriation, $100,000 is 19.26canceled to the general fund to support the 19.27appropriation to the Minnesota Historical 19.28Society for a grant to the Minnesota Military 19.29Museum. $1,000,000 is canceled to the 19.30general fund to support the appropriation to 19.31the Department of Veterans Affairs for repair 19.32and betterment of the Minnesota veterans 19.33homes.

20.1Sec. 38. VETERANS AFFAIRS

20.2Subdivision 1.Total Appropriation$65,254,000$67,360,000

20.3Appropriations by Fund20.42016201720.5General Fund63,253,00063,253,00020.6Special Revenue2,001,0004,107,000

20.7The amounts that may be spent for each 20.8purpose are specified in the following 20.9subdivisions.

20.10Subd. 2.Veterans Services16,240,00016,240,000

20.11Veterans Service Organizations. $353,000 20.12each year is for grants to the following 20.13congressionally chartered veterans service 20.14organizations, as designated by the 20.15commissioner: Disabled American Veterans, 20.16Military Order of the Purple Heart, the 20.17American Legion, Veterans of Foreign Wars, 20.18Vietnam Veterans of America, AMVETS, 20.19and Paralyzed Veterans of America. This 20.20funding must be allocated in direct proportion 20.21to the funding currently being provided by 20.22the commissioner to these organizations.20.23Minnesota Assistance Council for 20.24Veterans. $750,000 each year is for a grant 20.25to the Minnesota Assistance Council for 20.26Veterans to provide assistance throughout 20.27Minnesota to veterans and their families who 20.28are homeless or in danger of homelessness, 20.29including assistance with the following:20.30(1) utilities;20.31(2) employment; and20.32(3) legal issues.20.33The assistance authorized under this 20.34paragraph must be made only to veterans who 21.1have resided in Minnesota for 30 days prior 21.2to application for assistance and according 21.3to other guidelines established by the 21.4commissioner. In order to avoid duplication 21.5of services, the commissioner must ensure 21.6that this assistance is coordinated with all 21.7other available programs for veterans.21.8Honor Guards. $200,000 each year is 21.9for compensation for honor guards at 21.10the funerals of veterans under Minnesota 21.11Statutes, section 197.231. This amount is 21.12added to the program's base funding.21.13Minnesota GI Bill. $200,000 each year is 21.14for the costs of administering the Minnesota 21.15GI Bill postsecondary educational benefits, 21.16on-the-job training, and apprenticeship 21.17program under Minnesota Statutes, section 21.18197.791. Of this amount, $100,000 is for 21.19transfer to the Office of Higher Education.21.20Gold Star Program. $100,000 each year 21.21is for administering the Gold Star Program 21.22for surviving family members of deceased 21.23veterans. This amount is added to the 21.24program's base funding.21.25County Veterans Service Office. 21.26$1,100,000 each year is for funding the 21.27County Veterans Service Office grant 21.28program under Minnesota Statutes, section 21.29197.608.

21.30Subd. 3.Veterans Homes49,014,00051,120,000

21.31Appropriations by Fund21.322016201721.33General Fund47,013,00047,013,00021.34Special Revenue2,001,0004,107,000

22.1Veterans Homes Special Revenue Account. 22.2$6,108,000 is transferred from the state 22.3employee group insurance program trust fund 22.4to the veterans home special revenue account 22.5in the special revenue fund. The general fund 22.6appropriations made to the department may 22.7be transferred to a veterans homes special 22.8revenue account in the special revenue fund 22.9in the same manner as other receipts are 22.10deposited according to Minnesota Statutes, 22.11section 198.34. Amounts in the account 22.12are appropriated to the department for the 22.13operation of veterans homes facilities and 22.14programs.22.15The general fund base in fiscal years 2018 22.16and 2019 for veterans homes is $51,120,000 22.17each year.22.18    Sec. 39. ETHNIC COUNCILS ACCOUNT.22.19The following amounts are deposited in the ethnic councils account in the special 22.20revenue fund:22.21(1) $ 2,201,000 which is transferred from the state employee group insurance trust 22.22fund;22.23(2) $871,000 which is transferred from the state elections campaign fund; and22.24(3) $294,000 from the appropriation related to health insurance transparency in Laws 22.252014, chapter 312, article 21, section 4, paragraph (a), is canceled to the general fund 22.26and transferred to the special revenue fund, effective the day following final enactment 22.27of this section.22.28ARTICLE 222.29STATE GOVERNMENT22.30    Section 1. [2.92] DISTRICTING PRINCIPLES.22.31    Subdivision 1.Applicability; constitutional duty of legislature.(a) The principles 22.32in this section apply to legislative and congressional districts.23.1(b) Notwithstanding any laws to the contrary, legislative and congressional districts 23.2must be drawn by the legislature, consistent with the requirements of the Minnesota 23.3Constitution, article IV, section 3. The legislature may not delegate its duty to draw 23.4districts to any commission, council, panel, or other entity that is not comprised solely of 23.5members of the legislature.23.6    Subd. 2.Nesting.A representative district may not be divided in the formation 23.7of a senate district.23.8    Subd. 3.Equal population.(a) Legislative districts must be substantially equal 23.9in population. The population of a legislative district must not deviate from the ideal 23.10by more than 0.5 percent, plus or minus.23.11(b) Congressional districts must be as nearly equal in population as practicable. 23.12    Subd. 4.Contiguity; compactness.The districts must be composed of convenient 23.13contiguous territory. To the extent consistent with the other principles in this section, 23.14districts should be compact. Contiguity by water is sufficient if the water is not a serious 23.15obstacle to travel within the district. Point contiguity is not sufficient.23.16    Subd. 5.Numbering.(a) Legislative districts must be numbered in a regular series, 23.17beginning with house district 1A in the northwest corner of the state and proceeding across 23.18the state from west to east, north to south, but bypassing the 11-county metropolitan 23.19area until the southeast corner has been reached; then to the 11-county metropolitan area 23.20outside the cities of Minneapolis and St. Paul; then in Minneapolis and St. Paul.23.21(b) Congressional district numbers must begin with district one in the southeast 23.22corner of the state and end with district eight in the northeast corner of the state.23.23    Subd. 6.Minority representation.(a) The dilution of racial or ethnic minority 23.24voting strength is contrary to the laws of the United States and the state of Minnesota. 23.25These principles must not be construed to supersede any provision of the Voting Rights 23.26Act of 1965, as amended.23.27(b) A redistricting plan must not have the intent or effect of dispersing or 23.28concentrating minority population in a manner that prevents minority communities from 23.29electing their candidates of choice.23.30    Subd. 7.Minor civil divisions. (a) A county, city, or town must not be unduly 23.31divided unless required to meet equal population requirements or to form districts 23.32composed of convenient, contiguous territory.23.33(b) A county, city, or town is not unduly divided in the formation of a legislative or 23.34congressional district if:23.35(1) the division occurs because a portion of a city or town is noncontiguous with 23.36another portion of the same city or town; or24.1(2) despite the division, the known population of any affected county, city, or town 24.2remains wholly located within a single district.24.3    Subd. 8.Preserving communities of interest.(a) Districts should attempt to 24.4preserve identifiable communities of interest where that can be done in compliance with 24.5the principles under this section.24.6(b) For purposes of this subdivision, "communities of interest" means recognizable 24.7areas with similarities of interests including, but not limited to, racial, ethnic, geographic, 24.8social, or cultural interests.24.9    Subd. 9.Data to be used.(a) The geographic areas and population counts used in 24.10maps, tables, and legal descriptions of the districts must be those used by the Geographic 24.11Information Systems Office of the Legislative Coordinating Commission. The population 24.12counts will be the block population counts provided to the state under Public Law 94-171 24.13after each decennial census, subject to correction of any errors acknowledged by the 24.14United States Census Bureau.24.15(b) Nothing in this subdivision prohibits the use of additional data, as determined 24.16by the legislature.24.17    Subd. 10.Consideration of plans.A redistricting plan must not be considered for 24.18adoption by the senate or house of representatives until a block equivalency file showing 24.19the district to which each census block has been assigned, in a form prescribed by the 24.20director of the Geographic Information Systems Office, has been filed with the director.24.21    Subd. 11.Priority of principles. Where it is not possible to fully comply with the 24.22principles contained in subdivisions 1 to 8, a redistricting plan must give priority to those 24.23principles in the order in which they are listed in this section, except to the extent that 24.24doing so would violate federal or state law.24.25EFFECTIVE DATE. This section is effective the day following final enactment 24.26and applies to any plan for districts enacted or established for use on or after that date.24.27    Sec. 2. Minnesota Statutes 2014, section 3.971, is amended by adding a subdivision to 24.28read:24.29    Subd. 8a.Fiscal notes and revenue estimates.The legislative auditor shall 24.30participate in the fiscal note and revenue estimate process in the manner described in 24.31section 3.98. Authority of the legislative auditor and duties of employees and entities 24.32under section 3.978, subdivision 2, apply to the legislative auditor's work on fiscal notes 24.33and revenue estimates.25.1    Sec. 3. [3.9735] EVALUATION OF ECONOMIC DEVELOPMENT INCENTIVE 25.2PROGRAMS.25.3    Subdivision 1.Definitions.For purposes of this section, the terms defined in this 25.4section have the meanings given them.25.5(a) "General incentive" means a state program, statutory provision, or tax 25.6expenditure, including tax credits, tax exemptions, tax deductions, grants, or loans, that 25.7is intended to encourage businesses to locate, expand, invest, or remain in Minnesota or 25.8to hire or retain employees in Minnesota. To be a general incentive, a state program, 25.9statutory provision, or tax expenditure must be available to multiple entities, projects, or 25.10associated projects or include eligibility criteria with the intent that it will be available to 25.11multiple entities, projects, or associated projects.25.12(b) "Exclusive incentive" means a state program, statutory provision, tax 25.13expenditure, or section of a general incentive, including tax credits, tax exemptions, tax 25.14deductions, grants, or loans, that is intended to encourage a single specific entity, project, 25.15or associated projects to locate, expand, invest, or remain in Minnesota or to hire or retain 25.16employees in Minnesota.25.17    Subd. 2.Selection of general incentives for review; schedule for evaluation; 25.18report. Annually, the legislative auditor shall  submit to the Legislative Audit Commission 25.19a list of three to five general incentives proposed for review. In selecting general 25.20incentives to include on this list, the legislative auditor may consider what the incentive 25.21will cost state and local governments in actual spending and foregone revenue currently or 25.22projected into the future, the legislature's need for information about a general incentive 25.23that has an upcoming expiration date, and the legislature's need for regular information on 25.24the results of all major general incentives. Annually, the Legislative Audit Commission 25.25will select at least one general incentive for the legislative auditor's evaluation. The 25.26legislative auditor will evaluate the selected general incentive or incentives, prepared 25.27according to the evaluation plan established under subdivision 4, and submit a written 25.28report to the Legislative Audit Commission.25.29    Subd. 3.Exclusive incentive schedule.The legislative auditor's schedule shall 25.30ensure that at least once every four years the legislative auditor will complete an analysis 25.31of best practices for exclusive incentives.25.32    Subd. 4.Evaluation plans.By February 1, 2016, the Legislative Audit Commission 25.33shall establish evaluation plans that identify elements that the legislative auditor must 25.34include in evaluations of a general incentive and an exclusive incentive. The Legislative 25.35Audit Commission may modify the evaluation plans as needed.26.1    Sec. 4. Minnesota Statutes 2014, section 3.98, is amended to read:26.23.98 FISCAL NOTES AND REVENUE ESTIMATES.26.3    Subdivision 1. Preparation.The head or chief administrative officer of each 26.4department or agency of the state government, including the Supreme Court, shall prepare 26.5a fiscal note at the request of the chair of the standing committee to which a bill has been 26.6referred, or the chair of the house of representatives Ways and Means Committee, or the 26.7chair of the senate Committee on Finance.26.8For purposes of this subdivision, "Supreme Court" includes all agencies, committees, 26.9and commissions supervised or appointed by the state Supreme Court or the state court 26.10administrator. (a) The chair of the standing committee to which a bill has been referred, 26.11the chair of the house of representatives Ways and Means Committee, and the chair of 26.12the senate Committee on Finance may request a fiscal note. The chair of the house of 26.13representatives or senate tax committee may request a revenue estimate. A request for a 26.14fiscal note or revenue estimate must be filed with the legislative auditor.26.15(b) Upon receiving a request for a fiscal note or revenue estimate, the legislative 26.16auditor shall request appropriate agencies, offices, boards, or commissions in the executive, 26.17judicial, or legislative branch to provide the legislative auditor with an analysis of the 26.18financial and personnel impacts of the bill. The analysis must include a clear statement 26.19of the assumptions used in the analysis and the extent to which alternative assumptions 26.20were considered. Agencies, offices, boards, or commissions shall, after receiving a request 26.21from the legislative auditor, submit the analysis in the time and manner requested by the 26.22auditor. The legislative auditor may require agencies, offices, boards, or commissions to 26.23use the fiscal note tracking system developed and maintained by the commissioner of 26.24management and budget for submitting fiscal note information and analysis.26.25(c) The legislative auditor shall review the analysis submitted by agencies, offices, 26.26boards, or commissions and assess the reasonableness of the analysis, particularly the 26.27reasonableness of the assumptions used in the analysis. The auditor may require agencies, 26.28offices, boards, or commissions to resubmit their analysis under new assumptions or 26.29calculation parameters as defined by the auditor.26.30(d) When the legislative auditor accepts the final analysis from all relevant agencies, 26.31offices, boards, or commissions, the legislative auditor shall deliver the completed 26.32fiscal note or revenue estimate. The note or estimate must contain the final analysis 26.33and assumptions submitted to the legislative auditor by agencies, offices, boards, or 26.34commissions, and a statement by the legislative auditor as to whether the legislative 26.35auditor agrees with the final analysis and assumptions. The auditor must state the 26.36reasons for any disagreements and may offer alternative analysis and assumptions for 27.1consideration by the legislature. If the legislative auditor deems these disagreements 27.2sufficiently large, the legislative auditor may submit an unofficial "unapproved" fiscal note 27.3to the legislature for public consideration of both the analysis of the agencies, offices, 27.4boards, or commissions, and of the legislative auditor.27.5    Subd. 2. Contents. (a) The A fiscal note, where possible, shall:27.6(1) cite the effect in dollar amounts;27.7(2) cite the statutory provisions affected;27.8(3) estimate the increase or decrease in revenues or expenditures;27.9(4) include the costs which may be absorbed without additional funds;27.10(5) include the assumptions used in determining the cost estimates; and27.11(6) specify any long-range implication.27.12(b) The A revenue estimate must estimate the effect of a bill on state tax revenues.27.13(c) A fiscal note or revenue estimate may comment on technical or mechanical 27.14defects in the bill but shall express no opinions concerning the merits of the proposal.27.15    Subd. 3. Distribution. A copy of the a fiscal note shall be delivered to the chair 27.16of the Ways and Means Committee of the house of representatives, the chair of the 27.17Finance Committee of the senate, the chair of the standing committee to which the bill 27.18has been referred, to the chief author of the bill and to the commissioner of management 27.19and budget. A copy of a revenue estimate shall be delivered to the chairs of the house 27.20of representatives and senate tax committees, to the chief author of the bill, and to the 27.21commissioner of revenue.27.22    Subd. 4. Uniform procedure. The commissioner of management and budget 27.23legislative auditor shall prescribe a uniform procedure to govern the departments and 27.24agencies of the state in complying with the requirements of this section.27.25    Subd. 5.Tracking system.The commissioner of management and budget shall 27.26provide the legislative auditor with manuals and other documentation requested by the 27.27auditor for the fiscal note tracking system that is maintained by the commissioner.27.28    Sec. 5. Minnesota Statutes 2014, section 3.987, subdivision 1, is amended to read:27.29    Subdivision 1. Local impact notes. The commissioner of management and budget 27.30legislative auditor shall coordinate the development of a local impact note for any proposed 27.31legislation introduced after June 30, 1997, upon request of the chair or the ranking minority 27.32member of either legislative Tax, Finance, or Ways and Means Committee. Upon receipt 27.33of a request to prepare a local impact note, the commissioner auditor must notify the 27.34authors of the proposed legislation that the request has been made. The local impact note 27.35must be made available to the public upon request. If the action is among the exceptions 28.1listed in section 
         3.988, a local impact note need not be requested nor prepared. The 28.2commissioner auditor shall make a reasonable and timely estimate of the local fiscal impact 28.3on each type of political subdivision that would result from the proposed legislation. The 28.4commissioner of management and budget auditor may require any political subdivision or 28.5the commissioner of an administrative agency of the state to supply in a timely manner 28.6any information determined to be necessary to determine local fiscal impact. The political 28.7subdivision, its representative association, or commissioner shall convey the requested 28.8information to the commissioner of management and budget auditor with a signed 28.9statement to the effect that the information is accurate and complete to the best of its ability. 28.10The political subdivision, its representative association, or commissioner, when requested, 28.11shall update its determination of local fiscal impact based on actual cost or revenue figures, 28.12improved estimates, or both. Upon completion of the note, the commissioner auditor must 28.13provide a copy to the authors of the proposed legislation and to the chair and ranking 28.14minority member of each committee to which the proposed legislation is referred.28.15    Sec. 6. [6.481] COUNTY AUDITS.28.16    Subdivision 1.Powers and duties.All the powers and duties conferred and imposed 28.17upon the state auditor shall be exercised and performed by the state auditor in respect to 28.18the offices, institutions, public property, and improvements of several counties of the 28.19state. The state auditor may visit, without previous notice, each county and examine all 28.20accounts and records relating to the receipt and disbursement of the public funds and the 28.21custody of the public funds and other property.  The state auditor shall prescribe and install 28.22systems of accounts and financial reports that shall be uniform, so far as practicable, for 28.23the same class of offices.28.24    Subd. 2.Annual audit required.A county must have an annual financial audit. 28.25A county may choose to have the audit performed by the state auditor, or may choose to 28.26have the audit performed by a CPA firm meeting the requirements of section 326A.05. 28.27The state auditor or a CPA firm may accept the records and audit of the Department of 28.28Human Services instead of examining county human service funds, if the audit of the 28.29Department of Human Services has been made within any period covered by the auditor's 28.30audit of other county records.28.31    Subd. 3.CPA firm audit.A county audit performed by a CPA firm must meet 28.32the standards and be in the form required by the state auditor. The state auditor may 28.33require additional information from the CPA firm if the state auditor determines that is 28.34in the public interest, but the state auditor must accept the audit unless the state auditor 28.35determines it does not meet recognized industry auditing standards or is not in the form 29.1required by the state auditor. The state auditor may make additional examinations as the 29.2auditor determines to be in the public interest.29.3    Subd. 4.Audit availability; data.A copy of the annual audit by the state auditor or 29.4by a CPA firm must be available for public inspection in the Office of the State Auditor and 29.5in the Office of the County Auditor. If an audit is performed by a CPA firm, data relating 29.6to the audit are subject to the same data classifications that apply under section 6.715. A 29.7CPA firm conducting a county audit must provide access to data relating to the audit and is 29.8liable for unlawful disclosure of the data as if it were a government entity under chapter 13.29.9    Subd. 5.Reporting.If an audit conducted by the state auditor or a CPA firm 29.10discloses malfeasance, misfeasance, or nonfeasance, the auditor must report this to the 29.11county attorney, who shall institute civil and criminal proceedings as the law and the 29.12protection of the public interests requires.29.13    Subd. 6.Payments to state auditor.A county audited by the state auditor must 29.14pay the state auditor for the costs and expenses of the audit. If the state auditor makes 29.15additional examinations of a county whose audit is performed by a CPA firm, the county 29.16must pay the auditor for the cost of these examinations. Payments must be deposited in 29.17the state auditor enterprise fund.29.18    Subd. 7.Procedures for change of auditor.A county that plans to change to or 29.19from the state auditor and a CPA firm must notify the state auditor of this change by 29.20August 1 of an even-numbered year. Upon this notice, the following calendar year will be 29.21the first year's records that will be subject to an audit by the new entity. A county that 29.22changes to or from the state auditor must have two annual audits done by the new entity.29.23    Sec. 7. Minnesota Statutes 2014, section 10.43, is amended to read:29.2410.43 TELEPHONE USE; APPROVAL.29.25(a) Each representative, senator, constitutional officer, judge, and head of a state 29.26department or agency shall sign the person's monthly long-distance telephone bills paid 29.27by the state as evidence of the person's approval of each bill. This signature requirement 29.28does not apply to a month in which the person's long-distance phone bill paid by the 29.29state is less than $5.29.30(b) Even if the monthly long-distance phone bill paid by the state for a person 29.31subject to this section is less than $5, the person is responsible for paying that portion of 29.32the bill that does not relate to state business. As provided in section 10.46, long-distance 29.33telephone bills paid by the state are public data, regardless of the amount of the bills.30.1EFFECTIVE DATE.This section is effective for telephone bills for usage on or 30.2after July 1, 2015.30.3    Sec. 8. Minnesota Statutes 2014, section 10A.01, subdivision 26, is amended to read:30.4    Subd. 26. Noncampaign disbursement. "Noncampaign disbursement" means 30.5a purchase or payment of money or anything of value made, or an advance of credit 30.6incurred, or a donation in kind received, by a principal campaign committee for any of 30.7the 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, 30.13and facility rental for a fund-raising event;30.14    (6) (5) services for a constituent by a member of the legislature or a constitutional 30.15officer in the executive branch, including the costs of preparing and distributing a 30.16suggestion or idea solicitation to constituents, performed from the beginning of the term 30.17of office to adjournment sine die of the legislature in the election year for the office 30.18held, and half the cost of services for a constituent by a member of the legislature or a 30.19constitutional officer in the executive branch performed from adjournment sine die to 60 30.20days after adjournment sine die;30.21    (7) (6) payment for food and beverages consumed by a candidate or volunteers while 30.22they are engaged in campaign activities;30.23    (8) (7) payment for food or a beverage consumed while attending a reception or 30.24meeting directly related to legislative duties;30.25    (9) (8) payment of expenses incurred by elected or appointed leaders of a legislative 30.26caucus in carrying out their leadership responsibilities;30.27    (10) (9) payment by a principal campaign committee of the candidate's expenses 30.28for 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 30.32name will no longer appear on a ballot or the general election is concluded, whichever 30.33occurs first;30.34    (14) (13) interest on loans paid by a principal campaign committee on outstanding 30.35loans;31.1    (15) (14) filing fees;31.2    (16) (15) post-general election holiday or seasonal cards, thank-you notes, or 31.3advertisements 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 31.5material, 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 31.9contact information and distributed to constituents;31.10    (21) (20) costs associated with a candidate attending a political party state or national 31.11convention in this state;31.12    (22) (21) other purchases or payments specified in board rules or advisory opinions 31.13as being for any purpose other than to influence the nomination or election of a candidate 31.14or to promote or defeat a ballot question; and31.15(23) (22) costs paid to a third party for processing contributions made by a credit 31.16card, debit card, or electronic check.31.17    The board must determine whether an activity involves a noncampaign disbursement 31.18within the meaning of this subdivision.31.19    A noncampaign disbursement is considered to be made in the year in which the 31.20candidate made the purchase of goods or services or incurred an obligation to pay for 31.21goods or services.31.22EFFECTIVE DATE.This section is effective July 1, 2015, and applies to elections 31.23held 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 31.26from a source, other than self, in aggregate in excess of $750 or accept a public subsidy 31.27unless the candidate designates and causes to be formed a single principal campaign 31.28committee for each office sought. A candidate may not authorize, designate, or cause to be 31.29formed any other political committee bearing the candidate's name or title or otherwise 31.30operating under the direct or indirect control of the candidate. However, a candidate may 31.31be involved in the direct or indirect control of a party unit.31.32EFFECTIVE DATE.This section is effective July 1, 2015, and applies to elections 31.33held 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, 32.3principal campaign committee, or party unit may not retain an anonymous contribution 32.4in excess of $20, but must forward it to the board for deposit in the general account of 32.5the state elections campaign account fund.32.6EFFECTIVE 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 32.9a principal campaign committee, party unit, political committee, or political fund found 32.10to be inactive under this section 60 days after sending written notice of inactivity by 32.11certified mail to the affected association at the last address on record with the board for 32.12that association. Within 60 days after the board sends notice under this section, the 32.13affected association must dispose of its assets as provided in this subdivision. The assets 32.14of the principal campaign committee, party unit, or political committee must be used for 32.15the purposes authorized by this chapter or section 
         211B.12 or must be liquidated and 32.16deposited in the general account of the state elections campaign account fund. The assets 32.17of an association's political fund that were derived from the association's general treasury 32.18money revert to the association's general treasury. Assets of a political fund that resulted 32.19from contributions to the political fund must be used for the purposes authorized by this 32.20chapter or section 
         211B.12 or must be liquidated and deposited in the general account of 32.21the state elections campaign account fund.32.22EFFECTIVE 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 32.2531, 2016, after all campaign expenditures and noncampaign disbursements for an election 32.26cycle have been made, an amount up to 25 percent of the 2014 election cycle expenditure 32.27limit for the office may be carried forward. Any remaining amount up to the total amount of 32.28the 2014 public subsidy from the state elections campaign fund must be returned to the state 32.29treasury for credit to the general fund under section 
         10A.324. Any remaining amount in 32.30excess of the 2014 total public subsidy must be contributed to the state elections campaign 32.31account or a political party for multicandidate expenditures as defined in section 
         10A.275.32.32EFFECTIVE DATE.This section is effective July 1, 2015, and applies to elections 32.33held on or after that date.33.1    Sec. 13. Minnesota Statutes 2014, section 10A.38, is amended to read:33.210A.38 CAPTIONING OF CAMPAIGN ADVERTISEMENTS.33.3    (a) This section applies to a campaign advertisement by a candidate who is governed 33.4by an agreement under section 10A.322.33.5    (b) "Campaign advertisement" means a professionally produced visual or audio 33.6recording of two minutes or less produced by the candidate for the purpose of influencing 33.7the nomination or election of a candidate.33.8    (c) (b) A campaign advertisement that is disseminated as an advertisement by 33.9broadcast or cable television must include closed captioning for deaf and hard-of-hearing 33.10viewers, unless the candidate has filed with the board before the advertisement is 33.11disseminated a statement setting forth the reasons for not doing so. A campaign 33.12advertisement that is disseminated as an advertisement to the public on the candidate's 33.13Web site must include closed captioning for deaf and hard-of-hearing viewers, unless the 33.14candidate has posted on the Web site a transcript of the spoken content of the advertisement 33.15or the candidate has filed with the board before the advertisement is disseminated a 33.16statement setting forth the reasons for not doing so. A campaign advertisement must 33.17not be disseminated as an advertisement by radio unless the candidate has posted on 33.18the candidate's Web site a transcript of the spoken content of the advertisement or the 33.19candidate has filed with the board before the advertisement is disseminated a statement 33.20setting forth the reasons for not doing so.33.21    Sec. 14. Minnesota Statutes 2014, section 14.02, is amended by adding a subdivision 33.22to read:33.23    Subd. 5.Substantial economic impact.A rule has a "substantial economic impact" 33.24if 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 33.26Minnesota 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 33.28industries, state agencies, local governments, individuals, or private-sector enterprises 33.29within certain geographic regions inside the state of Minnesota;33.30(3) significant adverse impacts on the competitiveness of private-sector 33.31Minnesota-based enterprises or on private-sector employment, investment, productivity, 33.32or innovation within the state of Minnesota; or33.33(4) compliance costs, in the first year after the rule takes effect, of more than $25,000 33.34for any one business that has less than 50 full-time employees, or for any one statutory or 33.35home 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 34.3adopt, amend, suspend, or repeal its rules: (1) in accordance with the procedures specified 34.4in sections 
         14.001 to 
         14.69, and; (2) only pursuant to authority delegated by state or 34.5federal 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 34.7automatically repealed on the effective date of the law's repeal unless there is another 34.8law authorizing the rules.34.9(c) Except as provided in section 
         14.06, sections 
         14.001 to 
         14.69 shall not be 34.10authority 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 34.13proposed rule in accordance with the procedures of the Administrative Procedure Act. 34.14However, an agency may not modify a proposed rule so that it is substantially different 34.15from 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 34.18intent 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 34.20adopt or notice of hearing and the comments submitted in response to the notice; and34.21(3) the notice of intent to adopt or notice of hearing provided fair warning that the 34.22outcome 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 34.24fair warning that the outcome of that rulemaking proceeding could be the rule in question 34.25the following factors must be considered:34.26(1) the extent to which persons who will be affected by the rule should have 34.27understood 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 34.29rule are different from the subject matter or issues contained in the notice of intent to 34.30adopt or notice of hearing; and34.31(3) the extent to which the effects of the rule differ from the effects of the proposed 34.32rule 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 34.34causes a rule that did not previously have a substantial economic impact to have a 34.35substantial economic impact.35.1    Sec. 17. Minnesota Statutes 2014, section 14.116, is amended to read:35.214.116 NOTICE TO LEGISLATURE.35.3(a) By January 15 each year, each agency must submit its rulemaking docket 35.4maintained under section 
         14.366, and the official rulemaking record required under section 35.514.365
          for any rule adopted during the preceding calendar year, to the chairs and ranking 35.6minority members of the legislative policy and budget committees with jurisdiction over 35.7the subject matter of the proposed rule and to the Legislative Coordinating Commission. 35.8Each 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 35.1014.22
         , the agency must send a copy of the same notice and a copy of the statement of need 35.11and reasonableness to the chairs and ranking minority party members of the legislative 35.12policy and budget committees with jurisdiction over the subject matter of the proposed 35.13rules 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 35.15of the law granting the agency authority to adopt the proposed rules, the agency shall 35.16make reasonable efforts to send a copy of the notice and the statement to all sitting 35.17legislators who were chief house of representatives and senate authors of the bill granting 35.18the rulemaking authority. If the bill was amended to include this rulemaking authority, 35.19the agency shall make reasonable efforts to send the notice and the statement to the chief 35.20house of representatives and senate authors of the amendment granting rulemaking 35.21authority, rather than to the chief authors of the bill.35.22    Sec. 18. Minnesota Statutes 2014, section 14.127, is amended to read:35.2314.127 LEGISLATIVE APPROVAL REQUIRED.35.24    Subdivision 1. Cost thresholds Substantial economic impact. An agency must 35.25determine if the cost of complying with a proposed rule in the first year after the rule 35.26takes effect will exceed $25,000 for: (1) any one business that has less than 50 full-time 35.27employees; or (2) any one statutory or home rule charter city that has less than ten 35.28full-time employees. For purposes of this section, "business" means a business entity 35.29organized for profit or as a nonprofit, and includes an individual, partnership, corporation, 35.30joint venture, association, or cooperative has a substantial economic impact, as defined 35.31in section 14.02, subdivision 5.35.32    Subd. 2. Agency determination. An agency must make the determination required 35.33by subdivision 1 before the close of the hearing record, or before the agency submits the 35.34record to the administrative law judge if there is no hearing agency gives notice under 36.1section 14.14, 14.22, 14.225, or 14.389. The administrative law judge must review and 36.2approve or disapprove the agency determination under this section.36.3    Subd. 3. Legislative approval required.(a) If the agency determines that a 36.4proposed rule has a substantial economic impact, the agency must request the legislative 36.5auditor to convene a five-person peer review advisory panel to conduct an impact analysis 36.6of the proposed rule. Within 30 days of receipt of the agency's request, the legislative 36.7auditor shall convene a peer review advisory panel. The advisory panel must be made up 36.8of individuals who have not directly or indirectly been involved in the work conducted or 36.9contracted by the agency and who are not employed by the agency. The agency must pay 36.10each panel member for the costs of the person's service on the panel, as determined by 36.11the legislative auditor. The agency shall transfer an amount from the agency's operating 36.12budget to the legislative auditor to pay for costs for convening the peer review advisory 36.13panel process. The panel may receive written and oral comments from the public during 36.14its review. The panel must submit its report within 60 days of being convened. The 36.15agency must receive a final report from the panel before the agency conducts a public 36.16hearing on a proposed rule or, if no hearing is held, before the rule is submitted to the 36.17administrative law judge. The panel's report must include its conclusions on the extent to 36.18which the proposed rule:36.19(1) is based on sound, reasonably available scientific, technical, economic, or other 36.20information or rationale; and36.21(2) is more restrictive than a standard, limitation, or requirement imposed by federal 36.22law 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, 36.24the administrative law judge must review this determination. If the administrative law 36.25judge determines that a rule may have a substantial economic impact, the agency must 36.26have the legislative auditor arrange for the analysis required by paragraph (a), and the 36.27agency must give new notice of intent to adopt the proposed rule after receiving this 36.28analysis. The administrative law judge may make this determination as part of the 36.29administrative law judge's report on the proposed rule, or at any earlier time after the 36.30administrative law judge is assigned to the rule proceeding.36.31(c) If the agency determines that the cost exceeds the threshold in subdivision 1 36.32proposed rule has a substantial economic impact, or if the administrative law judge 36.33disapproves the agency's determination that the cost doesrule does not exceed the threshold 36.34in subdivision 1, any business that has less than 50 full-time employees or any statutory 36.35or home rule charter city that has less than ten full-time employees may file a written 36.36statement with the agency claiming a temporary exemption from the rules. Upon filing of 37.1such a statement with the agency, the rules do not apply to that business or that city until the 37.2rules arehave a substantial economic impact, the agency or the administrative law judge 37.3shall deliver the determination and peer review advisory panel report to the Legislative 37.4Coordinating Commission and to the chairs and ranking minority members of the house 37.5of representatives and senate committees and divisions with jurisdiction over the subject 37.6matter of the rule, and the proposed rule does not take effect until the rule is approved by a 37.7law 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 37.9judge approves an agency's determination that the legislature has appropriated money to 37.10sufficiently fund the expected cost of the rule upon the business or city proposed to be 37.11regulated by the rule.37.12(b) Subdivision 3 does not apply if the administrative law judge approves an 37.13agency's determination that the rule has been proposed pursuant to a specific federal 37.14statutory or regulatory mandate.37.15(c)(b) This section does not apply if the rule is adopted under section 
         14.388 or 37.16under 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 37.18Commission.37.19(e) Subdivision 3 does not apply if the governor waives application of subdivision 3. 37.20The governor may issue a waiver at any time, either before or after the rule would take 37.21effect, but for the requirement of legislative approval. As soon as possible after issuing a 37.22waiver under this paragraph, the governor must send notice of the waiver to the speaker of 37.23the house and the president of the senate and must publish notice of this determination in 37.24the State Register.37.25    Subd. 5. Severability. If an administrative law judge determines that part of a 37.26proposed rule exceeds the threshold specified in subdivision 1 has a substantial economic 37.27impact, but that a severable portion of a proposed rule does not exceed the threshold in 37.28subdivision 1 have a substantial economic impact, the administrative law judge may 37.29provide that the severable portion of the rule that does not exceed the thresholdhave a 37.30substantial economic impact may take effect without legislative approval.37.31    Sec. 19. Minnesota Statutes 2014, section 14.131, is amended to read:37.3214.131 STATEMENT OF NEED AND REASONABLENESS.37.33By the date of the section 
         14.14, subdivision 1a, 14.22, or 14.225, notice, the agency 37.34must prepare, review, and make available for public review a statement of the need for and 37.35reasonableness of the rule. The statement of need and reasonableness must be prepared 38.1under rules adopted by the chief administrative law judge and must include the following 38.2to 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 38.4proposed rule, including classes that will bear the costs of the proposed rule and classes 38.5that will benefit from the proposed rule;38.6(2) the probable costs to the agency and to any other agency of the implementation 38.7and 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 38.9methods for achieving the purpose of the proposed rule;38.10(4) a description of any alternative methods for achieving the purpose of the 38.11proposed rule that were seriously considered by the agency and the reasons why they 38.12were rejected in favor of the proposed rule;38.13(5) the probable costs of complying with the proposed rule, including the portion 38.14of the total costs that will be borne by identifiable categories of affected parties, such as 38.15separate classes of governmental units, businesses, or individuals;38.16(6) the probable costs or consequences of not adopting the proposed rule, including 38.17those costs or consequences borne by identifiable categories of affected parties, such as 38.18separate classes of government units, businesses, or individuals;38.19(7) an assessment of any differences between the proposed rule and existing federal 38.20regulations and a specific analysis of the need for and reasonableness of each difference; and38.21(8) an assessment of the cumulative effect of the rule with other federal and state 38.22regulations related to the specific purpose of the rule.; and38.23(9) the agency's findings and conclusions that support its determination that the 38.24proposed rule does or does not have a substantial economic impact.38.25The statement must describe how the agency, in developing the rules, considered 38.26and implemented the legislative policy supporting performance-based regulatory systems 38.27set forth in section 
         14.002 in a cost-effective and timely manner.38.28For purposes of clause (8), "cumulative effect" means the impact that results from 38.29incremental impact of the proposed rule in addition to other rules, regardless of what 38.30state or federal agency has adopted the other rules. Cumulative effects can result from 38.31individually minor but collectively significant rules adopted over a period of time.38.32The statement must describe, with reasonable particularity, the scientific, technical, 38.33economic, or other information and rationale that supports the proposed rule.38.34The statement must also describe the agency's efforts to provide additional 38.35notification under section 
         14.14, subdivision 1a, to persons or classes of persons who may 38.36be affected by the proposed rule or must explain why these efforts were not made.39.1The agency must consult with the commissioner of management and budget to 39.2help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local 39.3government. The agency must send a copy of the statement of need and reasonableness 39.4to the Legislative Reference Library when the notice of hearing is mailed under section 39.514.14, 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 39.8section must give notice to the chairs and ranking minority members of the legislative 39.9policy and budget committees with jurisdiction over the subject matter of the proposed 39.10rules and to the Legislative Coordinating Commission, must give electronic notice of its 39.11intent in accordance with section 
         16E.07, subdivision 3, and must give notice by United 39.12States mail or electronic mail to persons who have registered their names with the agency 39.13under section 
         14.14, subdivision 1a. The notice must be given no later than the date the 39.14agency submits the proposed rule to the Office of Administrative Hearings for review 39.15of 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 39.18exemption under subdivision 1; and39.19(3) a statement that interested parties have five business days after the date of the 39.20notice 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 39.23rule in the State Register and, must mail the notice by United States mail or electronic 39.24mail to persons who have registered with the agency to receive mailed notices, and must 39.25give notice to the chairs and ranking minority members of the legislative policy and 39.26budget committees with jurisdiction over the subject matter of the proposed rules and to 39.27the Legislative Coordinating Commission. The mailed notice and the notice to legislators 39.28must include either a copy of the proposed rule or a description of the nature and effect 39.29of the proposed rule and a statement that a free copy is available from the agency upon 39.30request. The notice in the State Register must include the proposed rule or the amended 39.31rule in the form required by the revisor under section 
         14.07, an easily readable and 39.32understandable summary of the overall nature and effect of the proposed rule, and a 39.33citation to the most specific statutory authority for the rule, including authority for the 40.1rule to be adopted under the process in this section. The agency must allow 30 days after 40.2publication in the State Register for comment on the rule.40.3    Sec. 22. Minnesota Statutes 2014, section 14.44, is amended to read:40.414.44 DETERMINATION OF VALIDITY OF RULE.40.5(a) The validity of any rule, or the validity of any agency policy, guideline, bulletin, 40.6criterion, manual standard, or similar pronouncement that the petitioner believes is a 40.7rule as defined in section 14.02, subdivision 4, may be determined upon the petition 40.8for a declaratory judgment thereon, addressed to the Court of Appeals, when it appears 40.9that the rule or pronouncement, or its threatened application, interferes with or impairs, 40.10or threatens to interfere with or impair the legal rights or privileges of the petitioner. 40.11The agency shall be made a party to the proceeding. The declaratory judgment may be 40.12rendered whether or not the petitioner has first requested the agency to pass upon the 40.13validity of the rule in question, whether or not the petitioner has petitioned the Office 40.14of Administrative Hearings under section 14.381, and whether or not the agency has 40.15commenced 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, 40.17manual standard, or similar pronouncement, the agency must cease enforcement of the 40.18pronouncement upon filing of the petition until the Court of Appeals rules on the matter. 40.19The agency is liable for all costs associated with review of the petition. If the Court of 40.20Appeals rules in favor of the agency, the agency may recover all or a portion of the cost 40.21from the petitioner unless the petitioner is entitled to proceed in forma pauperis under 40.22section 563.01, or the court determines that the petition was brought in good faith or the 40.23assessment 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:40.2514.45 RULE DECLARED INVALID.40.26In proceedings under section 
         14.44, the court shall declare the rule or agency 40.27pronouncement invalid if it finds that it violates constitutional provisions or exceeds the 40.28statutory authority of the agency or if the rule was adopted or the pronouncement was 40.29improperly implemented without compliance with statutory rulemaking procedures. Any 40.30party to proceedings under section 
         14.44, including the agency, may appeal an adverse 40.31decision 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 41.2Latino Affairs includes public members with an ethnic heritage from Mexico, any of the 41.3countries 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 41.5African ancestry.41.6(c) The Council on Asian-Pacific Minnesotans includes public members with an 41.7ethnic heritage from any of the countries east of, and including, Afghanistan or the 41.8Pacific Islands.41.9    Subd. 2.Membership.(a) Each council has 15 voting members. Eleven members 41.10of each council are public members appointed by the governor. Four members of each 41.11council 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 41.14each of the state's congressional districts and three members appointed at-large. The 41.15governor must attempt to ensure that the demographic composition of council members 41.16accurately reflects the demographic composition of Minnesota's Latino community, 41.17including recent immigrants, as determined by the state demographer;41.18(2) the Minnesota African Heritage Council must include members who are 41.19broadly representative of the African heritage community of the state. The council must 41.20include at least five females. At least three members must be first or second generation 41.21African immigrants, who generally reflect the demographic composition of these African 41.22immigrants, as determined by the state demographer; and41.23(3) the Council on Asian-Pacific Minnesotans must include one member from each 41.24of the five ancestries with the state's highest percentages of Asian-Pacific populations, 41.25as determined by the state demographer. The other six members must be broadly 41.26representative of the rest of the Asian-Pacific population, with no more than one council 41.27member from any one ancestry. For purposes of this clause, ancestry refers to heritage that 41.28is commonly accepted in Minnesota as a unique population.41.29(c) Four legislators are voting members of each council. The speaker of the house 41.30and the house minority leader shall each appoint one member to each council. The 41.31Subcommittee on Committees of the senate Committee on Rules and Administration shall 41.32appoint one member of the majority caucus and one member of the minority caucus to 41.33each council.41.34(d) The governor may appoint a commissioner of a state agency or a designee of that 41.35commissioner 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, 42.2the governor shall consider an appointee's proven dedication and commitment to the 42.3council's community and any expertise possessed by the appointee that might be beneficial 42.4to the council, such as experience in public policy, legal affairs, social work, business, 42.5or management. The executive director of a council and legislative members may offer 42.6advice to the governor on applicants seeking appointment.42.7(b) Terms, compensation, and filling of vacancies for members appointed by the 42.8governor are as provided in section 15.059. Removal of members appointed by the 42.9governor is governed by section 15.059, except that: (1) a member who missed more than 42.10half of the council meetings convened during a 12-month period automatically is removed 42.11from the council; and (2) a member appointed by the governor may be removed by a vote 42.12of three of the four legislative members of the council. The chair of a council shall inform 42.13the governor of the need for the governor to fill a vacancy on the council. Legislative 42.14members 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 42.16years on a council. A legislator may serve no more than eight consecutive years or 12 42.17nonconsecutive years on any one council.42.18    Subd. 4.Training; executive committee; meetings; support.(a) A member 42.19appointed by the governor must attend orientation training within the first six months of 42.20service for each term. The commissioner of administration must arrange for the training 42.21to include but not be limited to the legislative process, government data practices, open 42.22meeting law, Robert's Rules of Order, fiscal management, and human resources. The 42.23governor 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 42.25governor a chair and other officers it deems necessary. These officers and one legislative 42.26member 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 42.28required to conduct council business. A council member may not vote on any action if the 42.29member has a conflict of interest under section 10A.07.42.30(d) Each council shall receive administrative support from the commissioner of 42.31administration under section 16B.371.42.32    Subd. 5.Executive director; staff.(a) The Legislative Coordinating Commission 42.33must appoint an executive director for each council. The executive director must be 42.34experienced in administrative activities and familiar with the challenges and needs of 42.35the ethnic council's larger community. The executive director serves in the unclassified 42.36service at the pleasure of the Legislative Coordinating Commission.43.1(b) The Legislative Coordinating Commission must establish a process for recruiting 43.2and selecting applicants for the executive director positions. This process must include 43.3consultation and collaboration with the applicable council.43.4(c) The executive director and applicable council members must work together in 43.5fulfilling council duties. The executive director must consult with the commissioners of 43.6administration and management and budget to ensure appropriate financial, purchasing, 43.7human resources, and other services for operation of the council. The executive director 43.8must appoint and supervise the work of other staff necessary to carry out the duties of the 43.9council. 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 43.11of economic, social, legal, and political equality for its constituency. The council shall 43.12work with the legislature and governor to carry out this work by performing the duties 43.13in this section.43.14(b) A council shall advise the governor and the legislature on issues confronting the 43.15constituency of the council. This may include, but is not limited to, presenting the results 43.16of surveys, studies, and community forums to the appropriate executive departments 43.17and legislative committees.43.18(c) A council shall advise the governor and the legislature of administrative 43.19and legislative changes needed to improve the economic and social condition of the 43.20constituency of the council. This may include but is not limited to working with legislators 43.21to develop politically feasible legislation to address these issues and to work for passage 43.22of the legislation. This may also include making recommendations regarding the state's 43.23affirmative action program and the state's targeted group small business program, or 43.24working with state agencies and organizations to develop business opportunities and 43.25promote economic development for the constituency of the council.43.26(d) A council shall advise the governor and the legislature of the implications 43.27and effect of proposed administrative and legislative changes on the constituency of 43.28the council. This may include but is not limited to tracking legislation, testifying as 43.29appropriate, and meeting with executive departments and legislators.43.30(e) A council shall serve as a liaison between state government and organizations that 43.31serve the constituency of the council. This may include but is not limited to working with 43.32these organizations to carry out the duties in paragraphs (a) to (d), and working with these 43.33organizations to develop informational programs or publications to involve and empower 43.34the 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 43.36to suggest solutions to the problems of the constituency of the council in the areas of 44.1education, employment, human rights, health, housing, social welfare, and other related 44.2areas.44.3(g) In carrying out duties under this subdivision, councils may act to advise on issues 44.4that 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 44.7meeting 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 44.10duties; and44.11(4) participate in activities the council or executive director deem appropriate and 44.12necessary to facilitate the goals and duties of the council.44.13    Subd. 8.Reports.A council must report on the measurable outcomes achieved in 44.14the council's current strategic plan to meet its statutory duties, along with the specific 44.15objectives and outcome measures proposed for the following year. The council must 44.16submit the report by January 15 each year to the chairs of the committees in the house of 44.17representatives and the senate with primary jurisdiction over state government operations. 44.18Each report must cover the calendar year of the year before the report is submitted. The 44.19specific objectives and outcome measures for the following current year must focus on 44.20three or four achievable objectives, action steps, and measurable outcomes for which 44.21the council will be held accountable. The strategic plan may include other items that 44.22support the statutory purposes of the council but should not distract from the primary 44.23statutory proposals presented. The funding request of each council, after approval by the 44.24Legislative Coordinating Commission, must also be presented by February 1 in each 44.25odd-numbered year.44.26    Sec. 25. [16A.0565] CENTRALIZED TRACKING LIST OF AGENCY 44.27PROJECTS.44.28    Subdivision 1.Centralized tracking.The commissioner must maintain a 44.29centralized tracking list of new agency projects estimated to cost more than $100,000 that 44.30are paid for from the general fund.44.31    Subd. 2.New agency project.(a) For purposes of this section a "new agency 44.32project" means:44.33(1) any new agency program or activity with more than $100,000 in funding from 44.34the general fund; and45.1(2) any pre-existing agency program or activity with an increase of $100,000 or 45.2more 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 45.5providing assistance to individuals; or45.6(ii) a new program or activity or increase in a program or activity that is mandated 45.7by law.45.8    Subd. 3.Transparency requirements.The centralized tracking list maintained by 45.9the 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; and45.13(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 45.15required by subdivision 3 on the department's Web site. The list shall be maintained in a 45.16widely available and common document format such as a spreadsheet, that does not 45.17require any new costs to develop. The commissioner must report this information to the 45.18chairs of the house of representatives Ways and Means Committee and senate Finance 45.19Committee 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:45.2116A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES 45.22DOCUMENTS.45.23Notwithstanding section 
         16A.41, subdivision 1, the commissioner may allow an 45.24agency to make advance deposits or payments for software or software maintenance 45.25services for state-owned or leased electronic data processing equipment, for information 45.26technology hosting services, for sole source maintenance agreements where it is not 45.27cost-effective to pay in arrears, for exhibit booth space or boat slip rental when required 45.28by the renter to guarantee the availability of space, for registration fees where advance 45.29payment is required or advance payment discount is provided, and for newspaper, 45.30magazine, and other subscription fees customarily paid for in advance. The commissioner 45.31may also allow advance deposits by any department with the Library of Congress and 45.32federal 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 45.34subdivision to read:46.1    Subd. 1h.Revenue uncertainty information.The commissioner shall report 46.2to the legislature within 14 days of a forecast  under subdivision 1 on uncertainty in 46.3Minnesota's general fund revenue projections. The report shall present information on: (1) 46.4the estimated range of forecast error for revenues and (2) the data and methods used to 46.5construct those measurements.46.6    Sec. 28. Minnesota Statutes 2014, section 16A.11, is amended by adding a subdivision 46.7to read:46.8    Subd. 3d.Consideration of general incentives. In supplement to, and under the 46.9same deadline as, the governor's budget submission under subdivision 3, the commissioner 46.10shall submit a report identifying each general incentive for which an evaluation was 46.11completed under section 3.9735 in accordance with this section since the governor's 46.12previous budget submission. For each evaluated incentive, the commissioner's report shall 46.13include a recommendation for whether the incentive should be continued or modified, 46.14or whether the state would be better served by using other incentives or strategies to 46.15achieve the incentive's goals. The commissioner's report must include the rationale for 46.16each recommendation.46.17    Sec. 29. Minnesota Statutes 2014, section 16A.11, is amended by adding a subdivision 46.18to read:46.19    Subd. 3e.Consideration of best practices for exclusive incentives.If a new 46.20analysis of best practices for exclusive incentives under section 3.9735 has been 46.21completed since the governor's previous budget submission, the commissioner's report 46.22under subdivision 3d shall include recommendations for when and how Minnesota should 46.23offer and manage exclusive incentives in the future and how they should be structured. 46.24The commissioner's report must include the rationale for each recommendation.46.25    Sec. 30. Minnesota Statutes 2014, section 16A.1283, is amended to read:46.2616A.1283 LEGISLATIVE APPROVAL REQUIRED FOR FEES.46.27(a) Notwithstanding any law to the contrary, an executive branch state agency may 46.28not impose a new fee or increase an existing fee unless the new fee or increase is approved 46.29by law.  An agency must not propose a fee or fine increase of more than ten percent 46.30in a biennium over the same fee or fine in law at the start of the same biennium. For 46.31purposes of this section, a fee is any charge for goods, services, regulation, or licensure, 46.32and, notwithstanding paragraph (b), clause (3), includes charges for admission to or for 46.33use 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 47.5private individual, business, or other entity;47.6(4) charges that authorize use of state-owned lands and minerals administered by 47.7the commissioner of natural resources by the issuance of leases, easements, cooperative 47.8farming agreements, and land and water crossing licenses and charges for sales of 47.9state-owned lands administered by the commissioner of natural resources; or47.10(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 47.121, 2001, without legislative approval. Chapter 14 does not apply to fee reductions under 47.13this paragraph.47.14EFFECTIVE DATE.This section is effective August 1, 2016.47.15    Sec. 31. Minnesota Statutes 2014, section 16B.24, is amended by adding a subdivision 47.16to read:47.17    Subd. 12.State band.The commissioner must provide free rehearsal and storage 47.18space in the same building in the Capitol Area to an entity known as the Minnesota 47.19State Band, which is a tax exempt organization under section 501(c)(3) of the Internal 47.20Revenue Code.47.21EFFECTIVE 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 47.24any other recipient to whom an appropriation is made to acquire or better public lands 47.25or buildings or other public improvements of a capital nature, must not prepare final 47.26plans and specifications for any construction, major remodeling, or land acquisition in 47.27anticipation of which the appropriation was made until the agency that will use the 47.28project has presented the program plan and cost estimates for all elements necessary to 47.29complete the project to the chair of the senate Finance Committee and the chair of the 47.30house of representatives Ways and Means Committee and the chairs have made their 47.31recommendations, and the chair and ranking minority member of the senate Capital 47.32Investment Committee and the chair and ranking minority member of the house of 47.33representatives Capital Investment Committee are notified. "Construction or major 48.1remodeling" means construction of a new building, a substantial addition to an existing 48.2building, or a substantial change to the interior configuration of an existing building. The 48.3presentation must note any significant changes in the work that will be done, or in its cost, 48.4since the appropriation for the project was enacted or from the predesign submittal. The 48.5program plans and estimates must be presented for review at least two weeks before a 48.6recommendation is needed. The recommendations are advisory only. Failure or refusal to 48.7make a recommendation is considered a negative recommendation. 48.8(b) The chairs and ranking minority members of the senate Finance and Capital 48.9Investment Committees and, the house of representatives Capital Investment and Ways 48.10and Means Committees, and the house of representatives and senate budget committees or 48.11divisions with jurisdiction over the agency that will use the project must also be notified 48.12whenever there is a substantial change in a construction or major remodeling project, or in 48.13its cost. This notice must include the nature and reason for the change, and the anticipated 48.14cost of the change. The notice must be given no later than 10 days after signing a change 48.15order or other document authorizing a change in the project, or if there is not a change 48.16order or other document, no later than 10 days after the project owner becomes aware of a 48.17substantial change in the project or its cost.48.18(b) (c) Capital projects exempt from the requirements of this subdivision in 48.19paragraph (a) to seek recommendations before preparing final plans and specifications 48.20include demolition or decommissioning of state assets, hazardous material projects, utility 48.21infrastructure projects, environmental testing, parking lots, parking structures, park and 48.22ride facilities, bus rapid transit stations, light rail lines, passenger rail projects, exterior 48.23lighting, fencing, highway rest areas, truck stations, storage facilities not consisting 48.24primarily of offices or heated work areas, roads, bridges, trails, pathways, campgrounds, 48.25athletic fields, dams, floodwater retention systems, water access sites, harbors, sewer 48.26separation projects, water and wastewater facilities, port development projects for which 48.27the commissioner of transportation has entered into an assistance agreement under section 48.28457A.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. 48.30The 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:48.3216B.371 ASSISTANCE TO SMALL AGENCIES.48.33(a) The commissioner may must provide administrative support services to a small 48.34agencies agency requesting these services. To promote efficiency and cost-effective use 48.35of state resources, and to improve financial controls, the commissioner may require 49.1a small agency to receive administrative support services through the Department of 49.2Administration or through another agency designated by the commissioner. Services 49.3subject to this section include finance, accounting, payroll, purchasing, human resources, 49.4and other services designated by the commissioner. The commissioner may determine 49.5what constitutes a small agency for purposes of this section. The commissioner, in 49.6consultation with the commissioner of management and budget and small agencies, shall 49.7evaluate small agencies' needs for administrative support services. If the commissioner 49.8provides administrative support services to a small agency, the commissioner must enter 49.9into a service level agreement with the agency, specifying the services to be provided and 49.10the costs and anticipated outcomes of the services.49.11(b) The Chicano Latino Affairs Council, the Council on Black Minnesotans, the 49.12Council on Asian-Pacific Minnesotans, the Indian Affairs Council, and the Minnesota 49.13State 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 49.15under 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 49.17the agency to comply with applicable state finance, accounting, payroll, purchasing, and 49.18human resources policies. The agencies served retain the ownership and responsibility for 49.19spending 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  49.22has 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, 49.24subdivision 12. 49.25(c) "Reasonable accommodations eligible for reimbursement" as used in this section 49.26means: 49.27(1) reasonable accommodations provided to applicants for employment; 49.28(2) reasonable accommodations for employees for services that will need to be 49.29provided 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 49.33commissioner of administration shall reimburse state agencies for expenses incurred in 49.34making reasonable accommodations eligible for reimbursement for agency employees and 50.1applicants for employment to the extent that funds are available in the accommodation 50.2account established under subdivision 3 for this purpose.50.3    Subd. 3.Accommodation account established.The accommodation account 50.4is created as an account in the special revenue fund for reimbursing state agencies for 50.5expenses incurred in providing reasonable accommodations eligible for reimbursement for 50.6agency employees and applicants for agency employment.50.7    Subd. 4.Administration costs.The commissioner may use up to 15 percent of the 50.8biennial appropriation for administration of this section.50.9    Subd. 5.Notification.By August 1, 2015, or within 30 days of final enactment, 50.10whichever is later, and each year thereafter by June 30, the commissioner of administration 50.11must notify state agencies that reimbursement for expenses incurred to make reasonable 50.12accommodations eligible for reimbursement for agency employees and applicants for 50.13agency employment is available under this section.50.14    Subd. 6.Report.By January 31 of each year, the commissioner of administration 50.15must report to the chairs and ranking minority members of the house of representatives 50.16and the senate committees with jurisdiction over state government finance on the use of  50.17the 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 50.22applicants 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 50.26number, 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 50.29the amount of money to be deposited in the accommodation account each fiscal year. 50.30The commissioner must require each executive agency to make payments into the 50.31account from amounts appropriated for agency operations. The commissioner must 50.32implement policies and procedures to divide this amount among executive agencies. If  50.33the commissioner determines that it is not practical for an agency to make payments 50.34into a central account due to legal restrictions on use of the agency's appropriations, 50.35the commissioner shall require the agency to set aside money within its own operating 51.1funds, to be used only for purposes of this section. The amounts paid into the account are 51.2appropriated to the commissioner of administration for purposes of this section.51.3EFFECTIVE DATE.This section is effective July 1, 2015. Reimbursement is 51.4available 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 51.7electronic document defining a legal relationship between a granting agency and a grantee 51.8when the principal purpose of the relationship is to transfer cash or something of value 51.9to the recipient to support a public purpose authorized by law instead of acquiring by 51.10professional or technical contract, purchase, lease, or barter property or services for the 51.11direct benefit or use of the granting agency.51.12    (b) This section does not apply to capital project grants to political subdivisions as 51.13defined by section 16A.86.51.14    Sec. 36. Minnesota Statutes 2014, section 16B.97, is amended by adding a subdivision 51.15to read:51.16    Subd. 6.Commerce grants.The office must monitor grants made by the 51.17Department of Commerce.51.18    Sec. 37. [16B.991] TERMINATION OF GRANT.51.19Each grant agreement subject to sections 16B.97 and 16B.98 must provide that the 51.20agreement will immediately be terminated if:51.21(1) the recipient is convicted of a criminal offense relating to a state grant agreement; 51.22or51.23(2) the agency entering into the grant agreement or the commissioner of 51.24administration determines that the grant recipient is under investigation by a federal 51.25agency, a state agency, or a local law enforcement agency for matters relating to 51.26administration of a state grant.51.27    Sec. 38. [16B.992] NO FEES FOR GENERAL FUND GRANT 51.28ADMINISTRATION.51.29An agency may not charge a recipient of a grant from the general fund a fee and 51.30may not deduct money from the grant to pay administrative expenses incurred by the 51.31agency 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 52.3by this chapter to the head of an agency and to any subordinate of the agency head. At 52.4least once every three years the commissioner must audit use of authority under this 52.5chapter by each employee whom the commissioner has delegated duties.52.6    (b) The commissioner must develop guidelines for agencies and employees to whom 52.7authority is delegated under this chapter that protect state legal interests. These guidelines 52.8may provide for review by the commissioner when a specific contract has potential to put 52.9the 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 52.12federal government as a condition of receiving federal funds, the commissioner shall 52.13award up to a six percent preference, but no less than the percentage awarded to any 52.14other group under this section, in the amount bid on state procurement to certified small 52.15businesses that are majority-owned and operated by veterans.52.16(b) The purpose of this designation is to facilitate the transition of veterans from 52.17military to civilian life, and to help compensate veterans for their sacrifices, including but 52.18not limited to their sacrifice of health and time, to the state and nation during their military 52.19service, as well as to enhance economic development within Minnesota.52.20(c) Before the commissioner certifies that a small business is majority-owned and 52.21operated by a veteran, the commissioner of veterans affairs must verify that the owner of 52.22the 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:52.2416C.19 ELIGIBILITY; RULES.52.25(a) A small business wishing to participate in the programs under section 
         16C.16, 52.26subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt 52.27by rule standards and procedures for certifying that small targeted group businesses, 52.28small businesses located in economically disadvantaged areas, and veteran-owned small 52.29businesses are eligible to participate under the requirements of sections 
         16C.16 to 
         16C.21. 52.30The commissioner shall adopt by rule standards and procedures for hearing appeals and 52.31grievances and other rules necessary to carry out the duties set forth in sections 
         16C.1652.32to 
         16C.21.53.1(b) The commissioner may make rules which exclude or limit the participation of 53.2nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers, 53.3manufacturers' 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 53.5on 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 53.7veteran-owned small business, the principal place of business of which is in Minnesota, 53.8is certified if:53.9(1) it has been verified by the United States Department of Veterans Affairs as 53.10being either a veteran-owned small business or a service-disabled veteran-owned small 53.11business, in accordance with Public Law 109-461 and Code of Federal Regulations, title 53.1238, part 74.; or53.13(2) the veteran-owned small business supplies the commissioner with proof that the 53.14small business is majority-owned and operated by:53.15(i) a veteran as defined in section 197.447; or53.16(ii) a veteran with a service-connected disability, as determined at any time by the 53.17United States Department of Veterans Affairs.53.18(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying 53.19veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may 53.20be read to include veteran-owned small businesses. In addition to the documentation 53.21required in Minnesota Rules, part 1230.1700, the veteran owner must have been 53.22discharged under honorable conditions from active service, as indicated by the veteran 53.23owner'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 53.25minority- or woman-owned small business, the principal place of business of which is 53.26in Minnesota, is certified if it has been certified by the Minnesota unified certification 53.27program 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:53.2916E.01 OFFICE OF MN.IT SERVICES.53.30    Subdivision 1. Creation; chief information officer. The Office of MN.IT Services, 53.31referred to in this chapter as the "office," is an agency in the executive branch headed by 53.32a commissioner, who also is the state chief information officer. The appointment of the 53.33commissioner 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 53.35direction for information and telecommunications technology policy and the management, 54.1delivery, accessibility, and security of information and telecommunications technology 54.2systems and services in Minnesota the executive branch of state government. The office 54.3shall manage strategic investments in information and telecommunications technology 54.4systems and services to encourage the development of a technically literate society, to 54.5ensure sufficient access to and efficient delivery of accessible state government services, 54.6and 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 54.9and 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 54.12and other public or private sources;54.13(4) enter into contracts with agencies of the federal government, local governmental 54.14units, the University of Minnesota and other educational institutions, and private persons 54.15and other nongovernmental organizations as necessary to perform its statutory duties;54.16(5) sponsor and conduct conferences and studies, collect and disseminate information, 54.17and issue reports relating to information and communications technology issues; and54.18(6) review the technology infrastructure of regions of the state and cooperate with 54.19and make recommendations to the governor, legislature, state agencies, local governments, 54.20local technology development agencies, the federal government, private businesses, 54.21and individuals for the realization of information and communications technology 54.22infrastructure development potential;54.23(7) sponsor, support, and facilitate innovative and collaborative economic and 54.24community development and government services projects, including technology 54.25initiatives related to culture and the arts, with public and private organizations; and54.26(8) (6) review and recommend alternative sourcing strategies for state information 54.27and 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 54.30public-private resources to develop statewide information and telecommunications 54.31technology systems and services and its infrastructure;54.32    (2) approve state agency and intergovernmental information and telecommunications 54.33technology systems and services development efforts involving state or intergovernmental 54.34funding, including federal funding, provide information to the legislature regarding 54.35projects reviewed, and recommend projects for inclusion in the governor's budget under 54.36section 
         16A.11;55.1    (3) ensure cooperation and collaboration among state and local governments in 55.2developing intergovernmental information and telecommunications technology systems 55.3and services, and define the structure and responsibilities of a representative governance 55.4structure;55.5    (4) cooperate and collaborate with the legislative and judicial branches in the 55.6development of information and communications systems in those branches;55.7    (5) continue the development of North Star, the state's official comprehensive online 55.8service and information initiative;55.9    (6) promote and collaborate with the state's agencies in the state's transition to an 55.10effectively competitive telecommunications market;55.11    (7) collaborate with entities carrying out education and lifelong learning initiatives 55.12to assist Minnesotans in developing technical literacy and obtaining access to ongoing 55.13learning resources;55.14    (8) (7) promote and coordinate public information access and network initiatives, 55.15consistent with chapter 13, to connect Minnesota's citizens and communities to each 55.16other, to their governments, and to the world;55.17    (9) (8) promote and coordinate electronic commerce initiatives to ensure that 55.18Minnesota 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 55.20and telecommunications technology systems and services infrastructure so that state and 55.21local government agencies can effectively and efficiently serve their customers;55.22    (11) (10) facilitate the cooperative development of and ensure compliance with 55.23standards and policies for information and telecommunications technology systems 55.24and services, electronic data practices and privacy, and electronic commerce among 55.25international, national, state, and local public and private organizations;55.26    (12) (11) eliminate unnecessary duplication of existing information and 55.27telecommunications technology systems and services provided by state agencies;55.28    (13) (12) identify, sponsor, develop, and execute shared information and 55.29telecommunications technology projects and ongoing operations;55.30    (14) (13) ensure overall security of the state's information and technology systems 55.31and services; and55.32(15) (14) manage and direct compliance with accessibility standards for informational 55.33technology, including hardware, software, Web sites, online forms, and online surveys.55.34    (b) The chief information officer, in consultation with the commissioner of 55.35management and budget, must determine when it is cost-effective for agencies to develop 55.36and use shared information and telecommunications technology systems and services for 56.1the delivery of electronic government services. The chief information officer may require 56.2agencies to use shared information and telecommunications technology systems and 56.3services. The chief information officer shall establish reimbursement rates in cooperation 56.4with the commissioner of management and budget to be billed to agencies and other 56.5governmental entities sufficient to cover the actual development, operating, maintenance, 56.6and administrative costs of the shared systems. The methodology for billing may include 56.7the use of interagency agreements, or other means as allowed by law.56.8    (c) A state agency that has an information and telecommunications technology 56.9project with a total expected project cost of more than $1,000,000 $100,000, whether 56.10funded as part of the biennial budget or by any other means, shall register with the office 56.11by submitting basic project startup documentation, as specified by the chief information 56.12officer in both format and content, before any project funding is requested or committed 56.13and before the project commences. State agency project leaders must demonstrate that 56.14the project will be properly managed, provide updates to the project documentation 56.15as changes are proposed, and regularly report on the current status of the project on a 56.16schedule agreed to with the chief information officer.56.17    (d) The chief information officer shall monitor progress on any active information 56.18and 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 56.20the project in terms of time, scope, and budget. The chief information officer may conduct 56.21an independent project audit of the project. The audit analysis and evaluation of the 56.22projects subject to paragraph (c) must be presented to agency executive sponsors, the 56.23project governance bodies, and the chief information officer. All reports and responses 56.24must become part of the project record. The chief information officer must prepare a 56.25monthly progress report for each active information and telecommunications technology 56.26project over $1,000,000. The report must be provided to the technology advisory council 56.27and must be available on the office's Web site.56.28    (e) For any active information and telecommunications technology project with a 56.29total expected project cost of more than $10,000,000, the state agency must perform an 56.30annual independent audit that conforms to published project audit principles promulgated 56.31by the office.56.32    (f) The chief information officer shall report by January 15 of each year to the 56.33chairs and ranking minority members of the legislative committees and divisions with 56.34jurisdiction over the office regarding projects the office has reviewed under paragraph (a), 56.35clause (13). The report must include the reasons for the determinations made in the review 56.36of 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 57.2or other agreements to provide services to political subdivisions. The office may continue 57.3to collaborate with and enter into agreements with local subdivisions to create information 57.4technology infrastructure, provide connectivity, coordinate government-to-government 57.5communications, and provide security support. This subdivision does not prevent political 57.6subdivisions from purchasing goods or services from outside vendors through state 57.7contracts, and does not prevent political subdivisions from accessing geospatial data 57.8maintained by the office.57.9EFFECTIVE DATE.This section is effective July 1, 2015. The office may not 57.10enter into a new contract or other agreement or renew an existing contract or agreement 57.11to provide services to political subdivisions in a manner prohibited by subdivision 4 on 57.12or after July 1, 2015. The office must end existing contracts and agreements to provide 57.13services prohibited by subdivision 4 as soon as this can be done without the office 57.14incurring legal liability, and as soon as affected political subdivisions are able to find other 57.15sources to provide the services provided by the office.57.16    Sec. 43. Minnesota Statutes 2014, section 16E.016, is amended to read:57.1716E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY 57.18SERVICES AND EQUIPMENT.57.19(a) The chief information officer is responsible for providing or entering into 57.20managed services contracts for the provision, improvement, and development of the 57.21following 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 57.29tools;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 57.33clauses (1) to (8);58.1(11) regular upgrades and replacement for the components listed in clauses (1) 58.2to (8); and58.3(12) network-connected output devices.58.4(b) All state agency employees whose work primarily involves functions specified in 58.5paragraph (a) are employees of the Office of MN.IT Services. This includes employees 58.6who directly perform the functions in paragraph (a), as well as employees whose work 58.7primarily involves managing, supervising, or providing administrative services or support 58.8services to employees who directly perform these functions. The chief information officer 58.9may 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 58.11state agency to obtain services specified in paragraph (a) through a contract with an outside 58.12vendor when the chief information officer and the agency head agree that a contract would 58.13provide best value, as defined in section 16C.02, under the service-level agreement.A 58.14state agency must enter into a service-level agreement with the chief information officer 58.15for provision of services specified in paragraph (a), or must obtain some or all of these 58.16services through an outside vendor. Before entering into a service-level agreement or 58.17outside vendor contract, an agency must solicit proposals from the office and from at 58.18least one outside vendor. If the cost of the proposal from the office is more than six 58.19percent higher than the cost of a proposal from an outside vendor, the agency may enter 58.20into a contract with an outside vendor, notwithstanding sections 16C.08, subdivision 58.212, clause (1); 16C.09, paragraph (a), clause (1); and 43A.047. The chief information 58.22officer must require that agency contracts with outside vendors ensure that systems and 58.23services are compatible with standards established by the Office of MN.IT Services. The 58.24standards may include analysis of differences in future cost uncertainties, compliance with 58.25security requirements, compliance with hardware and service standards common in other 58.26state offices, ability to comply with legal, accessibility, and transparency requirements, 58.27and compliance with quality standards common to other state offices. The term of a 58.28service-level agreement or a contract under this paragraph is subject to the limits in section 58.2916C.06, subdivision 3b. However, the chief information officer may provide that the term 58.30of the first agreement or contract entered into after the effective date of this section may be 58.31longer, as the chief information officer determines is necessary to establish a system under 58.32which agency agreements and contracts will expire according to a staggered schedule. 58.33A service-level agreement or contract may not be for a term of more than six years. A 58.34contract 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 59.2of the seven-county metropolitan area to solicit proposals from MN.IT services and from 59.3an 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 59.5services of more than $100,000 with an outside vendor without approval of the chief 59.6information officer.59.7(f) The Minnesota State Retirement System, the Public Employees Retirement 59.8Association, the Teachers Retirement Association, the State Board of Investment, the 59.9Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide 59.10Radio Board are not state agencies for purposes of this section.59.11    Sec. 44. Minnesota Statutes 2014, section 16E.03, subdivision 1, is amended to read:59.12    Subdivision 1. Definitions. For the purposes of chapter 16E, the following terms 59.13have the meanings given them.59.14    (a) "Information and telecommunications technology systems and services" means 59.15all computing and telecommunications hardware and software, the activities undertaken 59.16to secure that hardware and software, and the activities undertaken to acquire, transport, 59.17process, analyze, store, and disseminate information electronically. "Information and 59.18telecommunications technology systems and services" includes all proposed expenditures 59.19for computing and telecommunications hardware and software, security for that hardware 59.20and software, and related consulting or other professional services.59.21    (b) "Information and telecommunications technology project" means an effort to 59.22acquire or produce information and telecommunications technology systems and services.59.23    (c) "Telecommunications" means voice, video, and data electronic transmissions 59.24transported by wire, wireless, fiber-optic, radio, or other available transport technology.59.25    (d) "Cyber security" means the protection of data and systems in networks connected 59.26to the Internet.59.27    (e) "State agency" means an agency in the executive branch of state government and 59.28includes the Minnesota Office of Higher Education, but does not include the Minnesota 59.29State Colleges and Universities unless specifically provided elsewhere in this chapter. 59.30Notwithstanding any law to the contrary, "state agency" includes any agency in the 59.31executive branch that operates information technology relating to eligibility for state 59.32programs.59.33    (f) "Total expected project cost" includes direct staff costs, all supplemental contract 59.34staff and vendor costs, and costs of hardware and software development or purchase. 60.1Breaking a project into several phases does not affect the cost threshold, which must be 60.2computed based on the full cost of all phases.60.3    Sec. 45. [16E.034] ANNUAL REPORT ON IT SPENDING.60.4(a) The chief information officer, in consultation with the commissioner of 60.5management and budget, must report by September 1 each year on:60.6(1) total state agency spending on information technology in the prior fiscal year, and  60.7planned state agency spending on information technology in the current fiscal year; and60.8(2) individual state agency spending on information technology in the prior fiscal 60.9year, and  planned spending on information technology in the current fiscal year.60.10(b) The report in paragraph (a) on total state agency and individual agency spending 60.11and proposed spending must show amounts spent and anticipated to be spent in each of 60.12the following categories:60.13(1) new technology projects, or enhancement of existing projects, of more than 60.14$100,000;60.15(2) business as usual and minor enhancements; and60.16(3) infrastructure and operations.60.17(c) The information reported on infrastructure and operations in paragraph (b), 60.18clause (3), must be further divided, by agency, into the following categories:60.19(1) servers;60.20(2) messaging and collaboration;60.21(3) mainframe;60.22(4) storage;60.23(5) database, including administration;60.24(6) technical support;60.25(7) information security;60.26(8) directory administration;60.27(9) architecture;60.28(10) monitoring; and60.29(11) change management.60.30    Sec. 46. Minnesota Statutes 2014, section 16E.0465, is amended to read:60.3116E.0465 TECHNOLOGY APPROVAL.60.32    Subdivision 1. Application. This section applies to an appropriation of more than 60.33$1,000,000 $100,000 of state or federal funds to a state agency for any information and 60.34telecommunications technology project or for any phase of such a project, device, or 61.1system. For purposes of this section, an appropriation of state or federal funds to a state 61.2agency includes an appropriation:61.3(1) to a constitutional officer;61.4(2) for a project that includes both a state agency and units of local government; and61.5(3) to a state agency for grants to be made to other entities.61.6    Subd. 2. Required review and approval. (a) A state agency receiving an 61.7appropriation  of more than $500,000 for an information and telecommunications 61.8technology project subject to this section must divide the project into phases.61.9(b) The commissioner of management and budget may not authorize the 61.10encumbrance or expenditure of an appropriation of state funds to a state agency for any:61.11(1) a project if the project is subject to this section, but not divided into phases; or61.12(2) a phase of a project, device, or system subject to this section, unless the Office of 61.13MN.IT Services has reviewed the project or each phase of the project, device, or system, 61.14and based on this review, the chief information officer has determined for each project 61.15or phase that:61.16(1) (i) the project is compatible with the state information architecture and other 61.17policies and standards established by the chief information officer;61.18(2) (ii) the agency is able to accomplish the goals of the phase of the project with the 61.19funds appropriated; and61.20(3) (iii) the project supports the enterprise information technology strategy.61.21    Subd. 4.Monitor progress.The chief information officer shall monitor progress on 61.22any active information and telecommunications technology project with a total expected 61.23project cost of more than $5,000,000 and report on the performance of the project in 61.24comparison with the plans for the project in terms of time, scope, and budget. The chief 61.25information officer may conduct an independent project audit of the project. The audit 61.26analysis and evaluation of the projects must be presented to agency executive sponsors, 61.27the project governance bodies, and the chief information officer. All reports and responses 61.28must become part of the project record.61.29    Sec. 47. Minnesota Statutes 2014, section 16E.14, subdivision 3, is amended to read:61.30    Subd. 3. Reimbursements. Except as specifically provided otherwise by law, each 61.31agency shall reimburse the MN.IT services revolving fund for the cost of all services, 61.32supplies, materials, labor, employee development and training, and depreciation of 61.33equipment, including reasonable overhead costs, which the chief information officer is 61.34authorized and directed to furnish an agency. The chief information officer shall report the 61.35rates to be charged for the revolving fund no later than July 1 each year to the chair of the 62.1committee or division in the senate and house of representatives with primary jurisdiction 62.2over the budget of the Office of MN.IT Services.62.3    Sec. 48. Minnesota Statutes 2014, section 16E.145, is amended to read:62.416E.145 INFORMATION TECHNOLOGY APPROPRIATION.62.5An appropriation  of more than $100,000 for a state agency information and 62.6telecommunications technology project must be made to the chief information officer. The 62.7chief information officer must manage and disburse the appropriation on behalf of the 62.8sponsoring state agency. Any appropriation for an information and telecommunications 62.9technology project made to a state agency other than the Office of MN.IT Services is 62.10transferred to the chief information officer.62.11    Sec. 49. Minnesota Statutes 2014, section 16E.19, is amended by adding a subdivision 62.12to read:62.13    Subd. 3.Data storage.The chief information officer must establish criteria for 62.14storage of state agency data outside of data centers operated by the chief information 62.15officer. These criteria must include thresholds for when requests of outside data storage 62.16must be approved by the chief information officer.62.17    Sec. 50. [43A.035] LIMIT ON NUMBER OF FULL-TIME EQUIVALENT 62.18EMPLOYEES.62.19The total number of full-time equivalent employees employed in all executive 62.20branch agencies may not exceed 35,927. The commissioner of management and budget 62.21may forbid an executive agency from hiring a new employee or from filling a vacancy as 62.22the commissioner determines is necessary to ensure compliance with this section. Any 62.23reductions in staff should prioritize protecting client-facing health care workers, corrections 62.24officers, public safety workers, and mental health workers. As a means of achieving 62.25compliance with this requirement, the commissioner may authorize an agency to provide 62.26an early retirement incentive to an executive branch employee, under which the state will 62.27continue to make the employer contribution for health insurance after the employee has 62.28terminated state service. The commissioner must prescribe eligibility requirements and the 62.29maximum duration of the payments. For purposes of this section, an "executive agency" 62.30does not include the Minnesota State Colleges and Universities or statewide pension plans.62.31    Sec. 51. [138.912] HEALTHY EATING, HERE AT HOME.63.1    Subdivision 1.Establishment.The healthy eating, here at home program is 63.2established to provide incentives for low-income Minnesotans to use federal Supplemental 63.3Nutrition Assistance Program (SNAP) benefits for healthy purchases at Minnesota-based 63.4farmers' markets.63.5    Subd. 2.Definitions.(a) The definitions in this subdivision apply to this section.63.6(b) "Healthy eating, here at home" means a program administered by the Minnesota 63.7Humanities Center to provide incentives for low-income Minnesotans to use SNAP 63.8benefits for healthy purchases at Minnesota-based farmers' markets.63.9(c) "Healthy purchases" means SNAP-eligible foods.63.10(d) "Minnesota-based farmers' market" means a physical market as defined in section 63.1128A.151, subdivision 1, paragraph (b), and also includes mobile markets.63.12(e) "Voucher" means a physical or electronic credit.63.13(f) "Eligible household" means an individual or family that is determined to be a 63.14recipient of SNAP.63.15    Subd. 3.Grants.The Minnesota Humanities Center shall allocate grant funds to 63.16nonprofit organizations that work with Minnesota-based farmers' markets to provide up 63.17to $10 vouchers to SNAP participants who use electronic benefits transfer (EBT) cards 63.18for healthy purchases. Funds may also be provided for vouchers distributed through 63.19nonprofit organizations engaged in healthy cooking and food education outreach to 63.20eligible households for use at farmers' markets. Funds appropriated under this section may 63.21not be used for healthy cooking classes or food education outreach. When awarding 63.22grants, the Minnesota Humanities Center must consider how the nonprofit organizations 63.23will achieve geographic balance, including specific efforts to reach eligible households 63.24across the state, and the organizations' capacity to manage the programming and outreach.63.25    Subd. 4.Household eligibility; participation.To be eligible for a healthy eating, 63.26here at home voucher, an eligible household must meet the Minnesota SNAP eligibility 63.27requirements under section 256D.051.63.28    Subd. 5.Permissible uses; information provided.An eligible household may use 63.29the voucher toward healthy purchases at Minnesota-based farmers' markets. Every eligible 63.30household that receives a voucher must be informed of the allowable uses of the voucher.63.31    Subd. 6.Program reporting.The nonprofit organizations that receive grant funds 63.32must report annually to the Minnesota Humanities Center with information regarding the 63.33operation of the program, including the number of vouchers issued and the number of 63.34people served. To the extent practicable, the nonprofit organizations must report on the 63.35usage of the vouchers and evaluate the program's effectiveness.64.1    Subd. 7.Grocery inclusion.The commissioner of human services must submit a 64.2waiver request to the federal United States Department of Agriculture seeking approval 64.3for the inclusion of Minnesota grocery stores in this program so that SNAP participants 64.4may use the vouchers for healthy produce at grocery stores. Grocery store participation is 64.5voluntary and a grocery store's associated administrative costs will not be reimbursed.64.6    Sec. 52. Minnesota Statutes 2014, section 148.57, is amended by adding a subdivision 64.7to read:64.8    Subd. 5.Expedited and temporary licensing for former and current members 64.9of the military.(a) Applicants seeking licensure according to this subdivision must be:64.10(1) an active duty military member;64.11(2) the spouse of an active duty military member; or64.12(3) a veteran who has left service in the two years preceding the date of license 64.13application, and has confirmation of an honorable or general discharge status.64.14(b) A qualified applicant under this subdivision must provide evidence of:64.15(1) a current valid license, certificate, or permit in another state without history of 64.16disciplinary action by a regulatory authority in the other state; and64.17(2) a current criminal background study without a criminal conviction that is 64.18determined by the board to adversely affect the applicant's ability to become licensed.64.19(c) A temporary license issued under this subdivision is effective for six months 64.20from the initial temporary licensure date.64.21(d) During the temporary license period, the individual shall complete the licensed 64.22optometrist application for licensure.64.23(e) In order to remain licensed after the expiration of the temporary license, an 64.24individual must meet the requirements in section 148.57, subdivisions 1 and 2.64.25    Sec. 53. Minnesota Statutes 2014, section 148.624, subdivision 5, is amended to read:64.26    Subd. 5. Expedited and temporary licensing for former and current members 64.27of the military permit.The board shall issue a temporary permit to members of the 64.28military in accordance with section 197.4552. (a) Applicants seeking licensure according 64.29to this subdivision must be:64.30(1) an active duty military member;64.31(2) the spouse of an active duty military member; or64.32(3) a veteran who has left service in the two years preceding the date of license 64.33application, and has confirmation of an honorable or general discharge status.64.34(b) A qualified applicant under this subdivision must provide evidence of:65.1(1) a current valid license in another state without history of disciplinary action by a 65.2regulatory authority in the other state; and65.3(2) a current criminal background study without a criminal conviction that is 65.4determined by the board to adversely affect the applicant's ability to become licensed.65.5(c) A temporary license issued under this subdivision is effective for six months 65.6from the initial temporary licensure date.65.7(d) During the temporary license period, the individual shall complete the licensed 65.8dietitian or nutritionist application for licensure.65.9(e) In order to remain licensed after the expiration of the temporary license, an 65.10individual must meet the full licensure requirements.65.11(f) The fee for the temporary permit license is $250.65.12    Sec. 54. Minnesota Statutes 2014, section 148B.33, is amended by adding a 65.13subdivision to read:65.14    Subd. 3.Expedited and temporary licensing for former and current members 65.15of the military.(a) Applicants seeking licensure according to this subdivision must be:65.16(1) an active duty military member; 65.17(2) the spouse of an active duty military member; or65.18(3) a veteran who has left service in the two years preceding the date of license 65.19application, and has confirmation of an honorable or general discharge status.65.20(b) A qualified applicant under this subdivision must provide evidence of:65.21(1) a current valid license, certificate, or permit in another state without history of 65.22disciplinary action by a regulatory authority in the other state; and65.23(2) a current criminal background study without a criminal conviction that is 65.24determined by the board to adversely affect the applicant's ability to become licensed.65.25(c) A temporary license issued under this subdivision is effective for six months 65.26from the initial temporary licensure date.65.27(d) During the temporary license period, the individual shall complete the licensed 65.28marriage and family therapist application for licensure.65.29(e) In order to remain licensed after the expiration of the temporary license, an 65.30individual must meet the requirements in subdivisions 1 and 2.65.31    Sec. 55. Minnesota Statutes 2014, section 148B.53, is amended by adding a 65.32subdivision to read:65.33    Subd. 1a.Expedited and temporary licensing for former and current members 65.34of the military.(a) Applicants seeking licensure according to this subdivision must be:66.1(1) an active duty military member; 66.2(2) the spouse of an active duty military member; or66.3(3) a veteran who has left service in the two years preceding the date of license 66.4application, and has confirmation of an honorable or general discharge status.66.5(b) A qualified applicant under this subdivision must provide evidence of:66.6(1) a current valid license, certificate, or permit in another state without history of 66.7disciplinary action by a regulatory authority in the other state; and66.8(2) a current criminal background study without a criminal conviction that is 66.9determined by the board to adversely affect the applicant's ability to become licensed.66.10(c) A temporary license issued under this subdivision is effective for one year from 66.11the initial licensure date.66.12(d) During the temporary license period, the individual shall complete the licensed 66.13professional counselor application for licensure.66.14(e) In order to remain licensed after the expiration of the temporary license, an 66.15individual must meet the requirements in subdivision 1, paragraphs (a) and (b).66.16    Sec. 56. Minnesota Statutes 2014, section 148B.5301, is amended by adding a 66.17subdivision to read:66.18    Subd. 4a.Expedited and temporary licensing for former and current members 66.19of the military.(a) Applicants seeking licensure according to this subdivision must be:66.20(1) an active duty military member; 66.21(2) the spouse of an active duty military member; or66.22(3) a veteran who has left service in the two years preceding the date of license 66.23application, and has confirmation of an honorable or general discharge status.66.24(b) A qualified applicant under paragraph (a) must provide evidence of:66.25(1) a current valid license, certificate, or permit in another state without history of 66.26disciplinary action by a regulatory authority in the other state; and66.27(2) a current criminal background study without a criminal conviction that is 66.28determined by the board to adversely affect the applicant's ability to become licensed.66.29(c) A temporary license issued under this subdivision is effective for one year from 66.30the initial licensure date.66.31(d) During the temporary license period, the individual shall complete the licensed 66.32professional clinical counselor application for licensure.66.33(e) In order to remain licensed after the expiration of the temporary license, an 66.34individual must meet the requirements in subdivisions 1 and 2.67.1    Sec. 57. Minnesota Statutes 2014, section 148F.025, is amended by adding a 67.2subdivision to read:67.3    Subd. 5.Expedited and temporary licensing for former and current members 67.4of the military.(a) Applicants seeking licensure according to this subdivision must be:67.5(1) an active duty military member; 67.6(2) the spouse of an active duty military member; or67.7(3) a veteran who has left service in the two years preceding the date of license 67.8application, and has confirmation of an honorable or general discharge status.67.9(b) Applicants are required to comply with subdivisions 1 and 4.67.10(c) A qualified applicant under paragraph (a) must provide evidence of:67.11(1) a current valid license, certificate, or permit in another state without history of 67.12disciplinary action by a regulatory authority in the other state; and67.13(2) a current criminal background study without a criminal conviction that is 67.14determined by the board to adversely affect the applicant's ability to become licensed.67.15(d) A temporary license issued under this subdivision is effective for two years from 67.16the initial licensure date.67.17(e) During the temporary license period, the individual shall complete the application 67.18for licensure required in subdivision 1.67.19(f) In order to remain licensed after the expiration of the temporary license, an 67.20individual must meet the requirements in subdivisions 2 and 3.67.21    Sec. 58. Minnesota Statutes 2014, section 153.16, subdivision 1, is amended to read:67.22    Subdivision 1. License requirements. The board shall issue a license to practice 67.23podiatric medicine to a person who meets the following requirements:67.24(a) The applicant for a license shall file a written notarized application on forms 67.25provided by the board, showing to the board's satisfaction that the applicant is of good 67.26moral character and satisfies the requirements of this section.67.27(b) The applicant shall present evidence satisfactory to the board of being a graduate 67.28of a podiatric medical school approved by the board based upon its faculty, curriculum, 67.29facilities, accreditation by a recognized national accrediting organization approved by the 67.30board, and other relevant factors.67.31(c) The applicant must have received a passing score on each part of the national board 67.32examinations, parts one and two, prepared and graded by the National Board of Podiatric 67.33Medical Examiners. The passing score for each part of the national board examinations, 67.34parts one and two, is as defined by the National Board of Podiatric Medical Examiners.68.1(d) Applicants graduating after 1986 from a podiatric medical school shall present 68.2evidence of successful completion of a residency program approved by a national 68.3accrediting podiatric medicine organization.68.4(e) The applicant shall appear in person before the board or its designated 68.5representative to show that the applicant satisfies the requirements of this section, 68.6including knowledge of laws, rules, and ethics pertaining to the practice of podiatric 68.7medicine. The board may establish as internal operating procedures the procedures or 68.8requirements for the applicant's personal presentation. Upon completion of all other 68.9application requirements, a doctor of podiatric medicine applying for a temporary military 68.10license has six months in which to comply with this subdivision.68.11(f) The applicant shall pay a fee established by the board by rule. The fee shall 68.12not be refunded.68.13(g) The applicant must not have engaged in conduct warranting disciplinary action 68.14against a licensee. If the applicant does not satisfy the requirements of this paragraph, 68.15the board may refuse to issue a license unless it determines that the public will be 68.16protected through issuance of a license with conditions and limitations the board considers 68.17appropriate.68.18(h) Upon payment of a fee as the board may require, an applicant who fails to pass 68.19an examination and is refused a license is entitled to reexamination within one year of 68.20the board's refusal to issue the license. No more than two reexaminations are allowed 68.21without a new application for a license.68.22    Sec. 59. Minnesota Statutes 2014, section 153.16, subdivision 4, is amended to read:68.23    Subd. 4. Temporary military permit license.The board shall establish a temporary 68.24permit in accordance with section 197.4552. The fee for the temporary military permit is 68.25$250. (a) The board shall issue an expedited license to practice podiatric medicine to an 68.26applicant who meets the following requirements:68.27(1) is an active duty military member;68.28(2) is the spouse of an active duty military member; or68.29(3) is a veteran who has left service in the two years preceding the date of license 68.30application, and has confirmation of an honorable or general discharge status.68.31(b) A qualified applicant under this subdivision must provide evidence of:68.32(1) a current, valid license in another state without history of disciplinary action by a 68.33regulatory authority in the other state; and68.34(2) a current criminal background study without a criminal conviction that is 68.35determined by the board to adversely affect the applicant's ability to become licensed.69.1(c) The board shall issue a license for up to six months to a doctor of podiatric 69.2medicine eligible for licensure under this subdivision. Doctors of podiatric medicine 69.3licensed in another state who have complied with all other requirements may receive a 69.4temporary license valid for up to six months. No extension is available.69.5(d) A temporary license issued under this subdivision permits a qualified individual 69.6to perform podiatric medicine for a limited length of time as determined by the licensing 69.7board. During the temporary license period, the individual shall complete the full 69.8application procedure and be approved as required by applicable law.69.9(e) The fee for the temporary military license is $250.69.10    Sec. 60. Minnesota Statutes 2014, section 154.003, is amended to read:69.11154.003 FEES.69.12    (a) The fees collected, as required in this chapter, chapter 214, and the rules of the 69.13board, shall be paid to the board. The board shall deposit the fees in the general fund 69.14in the state treasury.69.15    (b) The board shall charge the following fees:69.16    (1) examination and certificate, registered barber, $85;69.17(2) retake of written examination, registered barber, $10;69.18    (3) examination and certificate, apprentice, $80;69.19(4) retake of written examination, apprentice, $10;69.20    (5) examination, instructor, $180;69.21    (6) certificate, instructor, $65;69.22    (7) temporary teacher or apprentice permit, $80;69.23    (8) temporary registered barber, military, $85;69.24(9) temporary barber instructor, military, $180;69.25(10) temporary apprentice barber, military, $80;69.26    (11) renewal of registration, registered barber, $80;69.27    (9) (12) renewal of registration, apprentice, $70;69.28    (10) (13) renewal of registration, instructor, $80;69.29    (11) (14) renewal of temporary teacher permit, $65;69.30    (12) (15) student permit, $45;69.31(13) (16) renewal of student permit, $25;69.32    (14) (17) initial shop registration, $85;69.33    (15) (18) initial school registration, $1,030;69.34    (16) (19) renewal shop registration, $85;69.35    (17) (20) renewal school registration, $280;70.1    (18) (21) restoration of registered barber registration, $95;70.2    (19) (22) restoration of apprentice registration, $90;70.3    (20) (23) restoration of shop registration, $105;70.4    (21) (24) change of ownership or location, $55;70.5    (22) (25) duplicate registration, $40;70.6    (23) (26) home study course, $75;70.7(24) (27) letter of registration verification, $25; and70.8(25) (28) reinspection, $100.70.9    Sec. 61. Minnesota Statutes 2014, section 154.11, subdivision 3, is amended to read:70.10    Subd. 3. Temporary military license permits.(a) In accordance with section 70.11197.4552, the board shall establish issue a temporary license:70.12    (1) permit for apprentice barbers and master;70.13    (2) certificate for registered barbers; and a temporary permit for apprentices in 70.14accordance with section 197.4552. The fee for a temporary license under this subdivision 70.15for a master barber is $85. The fee for a temporary license under this subdivision for a 70.16barber is $180. The fee for a temporary permit under this subdivision for an apprentice is 70.17$80.70.18    (3) certificate for registered barber instructors.70.19    (b) Fees for temporary military permits and certificates of registration under this 70.20subdivision are listed under section 154.003.70.21    (c) Permits or certificates of registration issued under this subdivision are valid 70.22for one year from the date of issuance, after which the individual must complete a full 70.23application as required by section 197.4552.70.24    Sec. 62. Minnesota Statutes 2014, section 190.19, subdivision 2a, is amended to read:70.25    Subd. 2a. Uses; veterans.(a) Money appropriated to the Department of Veterans 70.26Affairs from the Minnesota "Support Our Troops" account may be used for:70.27    (1) grants to veterans service organizations;70.28    (2) outreach to underserved veterans;70.29(3) providing services and programs for veterans and their families; and70.30(4) transfers to the vehicle services account for Gold Star license plates under 70.31section 
         168.1253.;70.32(5) grants of up to $100,000 to any organization approved by the commissioner of 70.33veterans affairs for the purpose of supporting and improving the lives of veterans and 70.34their families; and71.1(6) grants to an eligible foundation. 71.2(b) For purposes of this subdivision, "eligible foundation" includes any organization 71.3that:71.4(1) is a tax-exempt organization under section 501(c) of the Internal Revenue 71.5Code; and71.6(2) is a nonprofit corporation under chapter 317A and the organization's articles of 71.7incorporation specify that a purpose of the organization includes (i) providing assistance 71.8to veterans and their families or (ii) enhancing the lives of veterans and their families.71.9    Sec. 63. Minnesota Statutes 2014, section 192.38, subdivision 1, is amended to read:71.10    Subdivision 1. Temporary emergency relief. If any officer or enlisted member 71.11of the military forces is wounded or otherwise disabled, dies from disease contracted or 71.12injuries received, or is killed while in state active service as defined in section 
         190.05, 71.13subdivision 5a
         , the officer or member, or in the case of death the officer's or member's 71.14dependent spouse, child, or parent, may be provided with immediate temporary relief as 71.15necessary in cases of severe hardship, in an amount to be determined by the adjutant general 71.16and approved by the governor or a death gratuity payment equal to the amount allowed for 71.17service members in a federal active service status. All payments under this subdivision 71.18shall be made from appropriations for the maintenance of the state military forces 71.19emergency services. The adjutant general shall notify the Department of Management and 71.20Budget of any payments made pursuant to this subdivision and the amount of it shall be 71.21subtracted from any award made by the Department of Management and Budget.71.22    Sec. 64. Minnesota Statutes 2014, section 192.501, is amended by adding a subdivision 71.23to read:71.24    Subd. 1d.Reclassification bonus program.(a) The adjutant general may establish 71.25a program to provide a bonus to eligible members of the Minnesota National Guard who 71.26complete training that results in the award of a new military occupational specialty or 71.27air force specialty code in specialties that are identified by the Adjutant General to be 71.28necessary for the enhanced readiness of the Minnesota National Guard.71.29(b) Eligibility for the bonus is limited to a member of the National Guard who:71.30(1) is serving satisfactorily as determined by the adjutant general;71.31(2) has 16 or fewer years of service creditable for retirement; and71.32(3) undergoes military training deemed by the adjutant general as sufficiently 71.33important to the readiness of the National Guard or a unit of the National Guard to warrant 71.34the payment of a bonus in an amount to generally encourage the member's participation in 72.1such training. The adjutant general may, within the limitations of this paragraph and other 72.2applicable laws, determine additional eligibility criteria for the bonus, and must specify all 72.3of the criteria in regulations and publish changes as necessary.72.4(c) The bonus payments must be made on a schedule that is determined and 72.5published in department regulations by the adjutant general.72.6(d) If a member fails to complete a term of reenlistment or an obligated term of 72.7commissioned service for which a bonus was paid, the adjutant general may seek to 72.8recoup a prorated amount of the bonus as determined by the adjutant general.72.9    Sec. 65. Minnesota Statutes 2014, section 197.46, is amended to read:72.10197.46 VETERANS PREFERENCE ACT; REMOVAL FORBIDDEN; RIGHT 72.11OF MANDAMUS.72.12(a) Any person whose rights may be in any way prejudiced contrary to any of the 72.13provisions of this section, shall be entitled to a writ of mandamus to remedy the wrong. 72.14No person holding a position by appointment or employment in the several counties, 72.15cities, towns, school districts and all other political subdivisions in the state, who is a 72.16veteran separated from the military service under honorable conditions, shall be removed 72.17from such position or employment except for incompetency or misconduct shown after a 72.18hearing, upon due notice, upon stated charges, in writing.72.19(b) Any veteran who has been notified of the intent to discharge the veteran from an 72.20appointed position or employment pursuant to this section shall be notified in writing of 72.21such intent to discharge and of the veteran's right to request a hearing within 60 days of 72.22receipt of the notice of intent to discharge. The failure of a veteran to request a hearing 72.23within the provided 60-day period shall constitute a waiver of the right to a hearing. Such 72.24failure shall also waive all other available legal remedies for reinstatement.72.25Request for a hearing concerning such a discharge shall be made in writing and 72.26submitted by mail or personal service to the employment office of the concerned employer 72.27or other appropriate office or person. If the veteran requests a hearing under this section, 72.28such written request must also contain the veteran's election to be heard by a civil service 72.29board or commission, a merit authority, or a three-person panel as defined in paragraph 72.30(c). If the veteran fails to identify the veteran's election, the governmental subdivision 72.31may select the hearing body.72.32In all governmental subdivisions having an established civil service board or 72.33commission, or merit system authority, such hearing for removal or discharge shall be 72.34held before such civil service board or commission or merit system authority. Where no 72.35such civil service board or commission or merit system authority exists, such hearing 73.1shall be held by (c) Hearings under this section shall be held by a civil service board or 73.2commission, a merit system authority, or a board of three persons appointed as follows: 73.3one by the governmental subdivision, one by the veteran, and the third by the two so 73.4selected. In the event that all governmental subdivisions having an established civil service 73.5board or commission or merit system authority, the veteran shall elect which body will 73.6hold the hearing. If the hearing is authorized to be veteran chooses to have the hearing held 73.7before a three-person board, the governmental subdivision's notice of intent to discharge 73.8shall state that the veteran must respond within 60 days of receipt of the notice of intent to 73.9discharge, and provide in writing to the governmental subdivision the name, United States 73.10mailing address, and telephone number of the veteran's selected representative for the 73.11three-person board. The failure of a veteran to submit the name, address, and telephone 73.12number of the veteran's selected representative to the governmental subdivision by mail or 73.13by personal service within the provided notice's 60-day period, shall constitute a waiver of 73.14the veteran's right to the hearing and all other legal remedies available for reinstatement of 73.15the veteran's employment position. In the event the two persons selected by the veteran 73.16and governmental subdivision do not appoint the third person within ten days after the 73.17appointment of the last of the two, then the judge of the district court of the county 73.18wherein the proceeding is pending, or if there be more than one judge in said county then 73.19any judge in chambers, shall have jurisdiction to appoint, and upon application of either or 73.20both of the two so selected shall appoint, the third person to the board and the person so 73.21appointed by the judge with the two first selected shall constitute the board. 73.22(d) Either the veteran or the governmental subdivision may appeal from the decision 73.23of the board upon the charges to the district court by causing written notice of appeal, 73.24stating the grounds thereof, to be served upon the other party within 15 days after notice of 73.25the decision and by filing the original notice of appeal with proof of service thereof in the 73.26office of the court administrator of the district court within ten days after service thereof. 73.27Nothing in section 
         197.455 or this section shall be construed to apply to the position of 73.28private secretary, superintendent of schools, or one chief deputy of any elected official 73.29or head of a department, or to any person holding a strictly confidential relation to the 73.30appointing officer. Nothing in this section shall be construed to apply to the position of 73.31teacher. The burden of establishing such relationship shall be upon the appointing officer 73.32in all proceedings and actions relating thereto.73.33(e) The governmental subdivision shall bear all administrative costs associated with 73.34the hearing. If the veteran  prevails, the governmental subdivision shall pay the veteran's 73.35reasonable attorney fees.74.1(f) All officers, boards, commissions, and employees shall conform to, comply with, 74.2and aid in all proper ways in carrying into effect the provisions of section 
         197.455 and this 74.3section notwithstanding any laws, charter provisions, ordinances or rules to the contrary. 74.4Any willful violation of such sections by officers, officials, or employees is a misdemeanor.74.5EFFECTIVE DATE.This section is effective the day following final enactment 74.6and applies to all notices of intent to discharge issued on or after that date.74.7    Sec. 66. [197.987] HONOR AND REMEMBER FLAG.74.8    Subdivision 1.Legislative findings.The legislature of the state of Minnesota finds 74.9and determines that:74.10(1) since the Revolutionary War, more than 1,000,000 members of the United States 74.11armed forces have paid the ultimate price by sacrificing their lives in active military 74.12service for the United States of America;74.13(2) the contribution made by those fallen members of the armed forces is deserving 74.14of state and national recognition; and74.15(3) the Honor and Remember Flag is an appropriate symbol that acknowledges the 74.16selfless sacrifice of those members of the United States armed forces. 74.17    Subd. 2.Designation.The Honor and Remember Flag created by Honor and 74.18Remember, Inc., is designated as the symbol of our state's concern and commitment to 74.19honoring and remembering the lives of all members of the United States armed forces who 74.20have lost their lives in the line of duty while serving honorably in active military service 74.21in the United States armed forces or of a service-connected cause due to or aggravated 74.22by that service, as determined by the United States Department of Defense or the United 74.23States Department of Veterans Affairs.74.24    Subd. 3.Suggested days for flag display.(a) The chief administrator of each 74.25governmental building or facility within this state, as defined in paragraph (b), is 74.26encouraged to display the Honor and Remember Flag on the following days each year:74.27(1) Armed Forces Day, the third Saturday in May;74.28(2) Flag Day, June 14;74.29(3) July 2nd and July 3rd, in remembrance of the 262 soldiers of the 1st Regiment 74.30Minnesota Volunteer Infantry who, at the Battle of Gettysburg during the American Civil 74.31War, fought so gallantly and successfully to repulse two major Confederate attacks on the 74.32main Union line, suffering over 80 percent casualties, thereby turning the battle and the 74.33war and helping to preserve the Union itself at that pivotal moment in our nation's history;74.34(4) July 4th, Independence Day;74.35(5) the third Friday of September, National POW/MIA Recognition Day;75.1(6) November 11, Veterans Day;75.2(7) July 27, Korean War Armistice Day; and75.3(8) March 29, Vietnam Veterans Day.75.4(b) For purposes of this section, "governmental building or facility within this state" 75.5means the following locations:75.6(1) the Minnesota State Capitol, the Office of the Governor and each other Minnesota 75.7constitutional office, the chambers of the Minnesota Senate and the Minnesota House of 75.8Representatives, the Minnesota Supreme Court Building and each Minnesota District 75.9Court House, as well as any official state of Minnesota veterans memorial, Minnesota 75.10veterans home, or Minnesota veterans cemetery;75.11(2) to the extent authorized by federal law and regulation, any United States veterans 75.12cemetery, veterans memorial, post office, or other federal building, as well as any United 75.13States Department of Veterans Affairs medical center, veterans service center, and veterans 75.14community-based outreach center; and75.15(3) any appropriate local government building or facility, as determined by the 75.16governing body of that local government.75.17    Subd. 4.Limitation.This section may not be construed or interpreted to require 75.18any employee to report to work solely for the purpose of providing for the display of the 75.19Honor and Remember Flag or any other flag.75.20    Subd. 5.Implementation.If a governmental building or facility within this state 75.21opts to display the Honor and Remember Flag, the chief administrator of that facility shall 75.22prescribe procedures necessary for the display.75.23    Subd. 6.Flag donation.Any named public office or public official may accept a 75.24donation of one or more Honor and Remember Flags for the purpose of this section.75.25EFFECTIVE DATE.This section is effective the day following final enactment.75.26    Sec. 67. Minnesota Statutes 2014, section 211B.37, is amended to read:75.27211B.37 COSTS ASSESSED.75.28Except as otherwise provided in section 
         211B.36, subdivision 3, the chief 75.29administrative law judge shall assess the cost of considering complaints filed under section 75.30211B.32
          as provided in this section. Costs of complaints relating to a statewide ballot 75.31question or an election for a statewide or legislative office must be assessed against the 75.32appropriation from the general fund to the general account of the state elections campaign 75.33account in section 10A.31, subdivision 4 paid from appropriations to the office for this 76.1purpose. Costs of complaints relating to any other ballot question or elective office must 76.2be paid from appropriations to the office for this purpose.76.3    Sec. 68. Minnesota Statutes 2014, section 240.01, subdivision 22, is amended to read:76.4    Subd. 22. Racing season. "Racing season" means that portion of the calendar 76.5year starting at the beginning of the day of the first live horse race conducted by the 76.6licensee and concluding at the end of the day of the last live horse race conducted by 76.7the licensee in any year.76.8For purposes of this chapter, the racing season begins before the first Saturday in 76.9May and continues for not less than 25 consecutive weeks.76.10EFFECTIVE DATE.This section is effective January 1, 2016.76.11    Sec. 69. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 76.12to read:76.13    Subd. 28.Takeout."Takeout" means the total amount of money, excluding 76.14breakage, withheld from each pari-mutuel pool, as authorized by statute or rule.76.15    Sec. 70. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 76.16to read:76.17    Subd. 29.Handle"Handle" means the aggregate of all pari-mutuel pools, excluding 76.18refundable wagers or cancellations.76.19    Sec. 71. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 76.20to read:76.21    Subd. 30.Mixed meet."Mixed meet" means a racing day or series of racing days 76.22on which the racing of more than one breed of horse occurs.76.23    Sec. 72. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 76.24to read:76.25    Subd. 31.Banked."Banked" means any game of chance that is played with the 76.26house as a participant in the game, where the house takes on all players, collects from all 76.27losers, and pays all winners, and the house can win.76.28    Sec. 73. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision 76.29to read:77.1    Subd. 32.Steward.A "steward" means an official described in section 240.16. The 77.2term steward includes the terms "judge," "chief steward," and "presiding judge," and 77.3applies to stewards and judges of the commission or a class B licensee, but not to other 77.4racing officials, such as paddock or placement judges, who are employees or agents of 77.5a class B licensee.77.6    Sec. 74. Minnesota Statutes 2014, section 240.011, is amended to read:77.7240.011 APPOINTMENT OF DIRECTOR.77.8The governor shall appoint the director of the Minnesota Racing Commission, 77.9who serves in the unclassified service at the governor's pleasure. The director must be 77.10a person qualified by experience in the administration and regulation of pari-mutuel 77.11racing and training to possess the skills necessary to discharge the duties of the director. 77.12The governor must select a director from a list of one or more names submitted by the 77.13Minnesota Racing Commission.77.14    Sec. 75. Minnesota Statutes 2014, section 240.03, is amended to read:77.15240.03 COMMISSION POWERS AND DUTIES.77.16The commission has the following powers and duties:77.17(1) to regulate horse racing in Minnesota to ensure that it is conducted in the public 77.18interest;77.19(2) to issue licenses as provided in this chapter;77.20(3) to enforce all laws and rules governing horse racing;77.21(4) to collect and distribute all taxes provided for in this chapter;77.22(5) to conduct necessary investigations and inquiries and to issue subpoenas to 77.23compel the attendance of witnesses and the submission of information, documents, and 77.24records, and other evidence it deems necessary to carry out its duties;77.25(6) to supervise the conduct of pari-mutuel betting on horse racing;77.26(7) to employ and supervise personnel under this chapter;77.27(8) to determine the number of racing days to be held in the state and at each 77.28licensed racetrack;77.29(9) to take all necessary steps to ensure the integrity of racing in Minnesota; and77.30(10) to impose fees on the racing and card playing industries sufficient to recover the 77.31operating costs of the commission with the approval of the legislature according to section 77.3216A.1283
         . Notwithstanding section 
         16A.1283, when the legislature is not in session, the 77.33commissioner of management and budget may grant interim approval for any new fees 77.34or adjustments to existing fees that are not statutorily specified, until such time as the 78.1legislature reconvenes and acts upon the new fees or adjustments. As part of its biennial 78.2budget request, the commission must propose changes to its fees that will be sufficient to 78.3recover the operating costs of the commission.78.4    Sec. 76. Minnesota Statutes 2014, section 240.08, subdivision 2, is amended to read:78.5    Subd. 2. Application.(a) An application for a class C license must be on a form 78.6the commission prescribes and must be accompanied by an affidavit of qualification 78.7that the applicant:78.8(a) (1) is not in default in the payment of an obligation or debt to the state under 78.9Laws 1983, chapter 214;78.10(b) (2) does not have a felony conviction of record in a state or federal court and 78.11does not have a state or federal felony charge pending;78.12(c) (3) is not and never has been connected with or engaged in an illegal business;78.13(d) (4) has never been found guilty of fraud or misrepresentation in connection 78.14with racing or breeding;78.15(e) (5) has never been found guilty of a violation of law or rule relating to horse 78.16racing, pari-mutuel betting or any other form of gambling which is a serious violation 78.17as defined by the commission's rules; and78.18(f) (6) has never been found to have knowingly violated a rule or an order of the 78.19commission or a law or rule of Minnesota or another jurisdiction relating to horse racing, 78.20pari-mutuel betting, or any other form of gambling.78.21(b) The application must also contain an irrevocable consent statement, to be signed 78.22by the applicant, which states that suits and actions relating to the subject matter of the 78.23application or acts or omissions arising from it may be commenced against the applicant in 78.24any court of competent jurisdiction in this state by the service on the secretary of state of 78.25any summons, process, or pleading authorized by the laws of this state. If any summons, 78.26process, or pleading is served upon the secretary of state, it must be by duplicate copies. 78.27One copy must be retained in the Office of the Secretary of State and the other copy must 78.28be forwarded immediately by certified mail to the address of the applicant, as shown by 78.29the records of the commission.78.30    Sec. 77. Minnesota Statutes 2014, section 240.08, subdivision 4, is amended to read:78.31    Subd. 4. License issuance and renewal. If the commission determines that 78.32the applicant is qualified for the occupation for which licensing is sought and will 78.33not adversely affect the public health, welfare, and safety or the integrity of racing in 78.34Minnesota, it may issue a class C license to the applicant. If it makes a similar finding for 79.1a renewal of a class C license it may renew the license. Class C licenses are effective for 79.2one year. until December 31 of the calendar year for which they are issued. Certain types 79.3of class C licenses, to be determined by the commission, are effective until December 31 79.4of the third calendar year for which they have been issued.79.5EFFECTIVE DATE.This section is effective July 1, 2015.79.6    Sec. 78. Minnesota Statutes 2014, section 240.08, subdivision 5, is amended to read:79.7    Subd. 5. Revocation and suspension.(a) The commission may revoke a class C 79.8license for a violation of law or rule which in the commission's opinion adversely affects 79.9the integrity of horse racing in Minnesota, the public health, welfare, or safety, or for an 79.10intentional false statement made in a license application.79.11The commission may suspend a class C license for up to one year for a violation of 79.12law, order or rule.79.13The commission may delegate to its designated agents the authority to impose 79.14suspensions of class C licenses, and the revocation or suspension of a class C license may 79.15be appealed to the commission according to its rules.79.16(b) A license revocation or suspension for more than 90 days is a contested case 79.17under sections 
         14.57 to 
         14.69 of the Administrative Procedure Act and is in addition to 79.18criminal penalties imposed for a violation of law or rule. The commission may summarily 79.19suspend a license for more than 90 days prior to a contested case hearing where it is 79.20necessary to ensure the integrity of racing or to protect the public health, welfare, or safety. 79.21A contested case hearing must be held within 20 30 days of the summary suspension and 79.22the administrative law judge's report must be issued within 20 30 days from the close of 79.23the hearing record. In all cases involving summary suspension the commission must issue 79.24its final decision within 30 days from receipt of the report of the administrative law judge 79.25and subsequent exceptions and argument under section 
         14.61.79.26    Sec. 79. Minnesota Statutes 2014, section 240.10, is amended to read:79.27240.10 LICENSE FEES.79.28The fee for a class A license is $253,000 per year and must be remitted on July 1. 79.29The fee for a class B license is $500 for each assigned racing day and $100 for each day 79.30on which simulcasting is authorized and must be remitted on July 1. Included herein are 79.31all days assigned to be conducted after January 1, 2003. The fee for a class D license is 79.32$50 for each assigned racing day on which racing is actually conducted. Fees imposed on 80.1class D licenses must be paid to the commission at a time and in a manner as provided by 80.2rule of the commission.80.3The commission shall by rule establish an annual license fee for each occupation it 80.4licenses under section 
         240.08but no annual fee for a class C license may exceed $100.80.5EFFECTIVE DATE.This section is effective July 1, 2015.80.6    Sec. 80. Minnesota Statutes 2014, section 240.13, subdivision 5, is amended to read:80.7    Subd. 5. Purses. (a) From the amounts deducted from all pari-mutuel pools by a 80.8licensee, an amount equal to not less than the following percentages of all money in all 80.9pools must be set aside by the licensee and used for purses for races conducted by the 80.10licensee, provided that a licensee may agree by contract with an organization representing 80.11a majority of the horsepersons racing the breed involved to set aside amounts in addition 80.12to the following percentages, if the contract is in writing and filed with the commission:80.13(1) for live races conducted at a class A facility, and for races that are part of full 80.14racing card simulcasting that takes place within the time period of the live races, 8.4 80.15percent of handle;80.16(2) for simulcasts conducted during the racing season other than as provided for in 80.17clause (1), 50 percent of the takeout remaining after deduction for taxes on pari-mutuel 80.18pools, payment to the breeders fund, and payment to the sending out-of-state racetrack for 80.19receipt of the signal; and80.20(3) (2) for simulcasts conducted outside of the racing season, 25 any day a class A 80.21facility is licensed, not less than 37 percent of the takeout remaining after deduction for the 80.22state pari-mutuel tax, payment to the breeders fund, and payment to the sending out-of-state 80.23racetrack for receipt of the signal and, before January 1, 2005, a further deduction of 80.24eight percent of all money in all pools. In the event that wagering on simulcasts outside 80.25of the racing season exceeds $125 million in any calendar year, the amount set aside for 80.26purses by this formula is increased to 30 percent on amounts between $125,000,000 and 80.27$150,000,000 wagered; 40 percent on amounts between $150,000,000 and $175,000,000 80.28wagered; and 50 percent on amounts in excess of $175,000,000 wagered. In lieu of 80.29the eight percent deduction, A deduction as agreed to between the licensee and the 80.30horsepersons' organization representing the majority of horsepersons racing at the licensee's 80.31class A facility during the preceding 12 months, is allowed after December 31, 2004.80.32The commission may by rule provide for the administration and enforcement of 80.33this subdivision. The deductions for payment to the sending out-of-state racetrack must 80.34be actual, except that when there exists any overlap of ownership, control, or interest 80.35between the sending out-of-state racetrack and the receiving licensee, the deduction 81.1must not be greater than three percent unless agreed to between the licensee and the 81.2horsepersons' organization representing the majority of horsepersons racing the breed 81.3racing the majority of races during the existing racing meeting or, if outside of the racing 81.4season, during the most recent racing meeting.81.5In lieu of the amount the licensee must pay to the commission for deposit in the 81.6Minnesota breeders fund under section 240.15, subdivision 1, The licensee shall pay to the 81.7commission for deposit in the Minnesota breeders fund 5-1/2 percent of the takeout from 81.8all pari-mutuel pools generated by wagering at the licensee's facility on full racing card 81.9simulcasts of races not conducted in this state.81.10(b) From the money set aside for purses, the licensee shall pay to the horseperson's 81.11organization representing the majority of the horsepersons racing the breed involved 81.12and contracting with the licensee with respect to purses and the conduct of the racing 81.13meetings and providing representation to its members, an amount as may be determined 81.14by agreement by the licensee and the horsepersons' organization sufficient to provide 81.15benevolent programs, benefits, and services for horsepersons and their on-track employees, 81.16an amount, sufficient to perform these services, as may be determined by agreement by 81.17the licensee and the horseperson's organization. The amount paid may be deducted only 81.18from the money set aside for purses to be paid in races for the breed represented by the 81.19horseperson's organization. With respect to racing meetings where more than one breed 81.20is racing, the licensee may contract independently with the horseperson's organization 81.21representing each breed racing.81.22(c) Notwithstanding sections 
         325D.49 to 
         325D.66, a horseperson's organization 81.23representing the majority of the horsepersons racing a breed at a meeting, and the members 81.24thereof, may agree to withhold horses during a meeting.81.25(d) Money set aside for purses from wagering, during the racing season, on 81.26simulcasts must be used for purses for live races conducted at the licensee's class A facility 81.27during the same racing season, over and above the 8.4 percent purse requirement or any 81.28higher requirement to which the parties agree, for races conducted in this state. Money 81.29set aside for purses from wagering, outside of the racing season, on simulcasts must be 81.30for purses for live races conducted at the licensee's class A facility during the next racing 81.31season, over and above the 8.4 percent purse requirement or any higher requirement to 81.32which the parties agree, for races conducted in this state.81.33(e) (d) Money set aside for purses from wagering on simulcasts must be used for 81.34purses for live races involving the same breed involved in the simulcast except that money 81.35set aside for purses and payments to the breeders fund from wagering on full racing card 81.36simulcasts of races not conducted in this state, occurring during a live mixed meet, must 82.1be allotted to the purses and breeders fund for each breed participating in the mixed meet 82.2as agreed upon by the breed organizations participating in the live mixed meet. The 82.3agreement shall be in writing and filed with the commission prior to the first day of the live 82.4mixed meet. In the absence of a written agreement filed with the commission, the money 82.5set aside for purses and payments to the breeders fund from wagering on simulcasts, 82.6occurring during a live mixed meet, shall be allotted to each breed participating in the live 82.7mixed meet  in the same proportion that the number of live races run by each breed bears 82.8to the total number of live races conducted during the period of the mixed meet.82.9(f) (e) The allocation of money set aside for purses to particular racing meets may be 82.10adjusted, relative to overpayments and underpayments, by contract between the licensee 82.11and the horsepersons' organization representing the majority of horsepersons racing the 82.12breed involved at the licensee's facility.82.13(g) (f) Subject to the provisions of this chapter, money set aside from pari-mutuel 82.14pools for purses must be for the breed involved in the race that generated the pool, except 82.15that if the breed involved in the race generating the pari-mutuel pool is not racing in the 82.16current racing meeting, or has not raced within the preceding 12 months at the licensee's 82.17class A facility, money set aside for purses may be distributed proportionately to those 82.18breeds that have run during the preceding 12 months or paid to the commission and 82.19used for purses or to promote racing for the breed involved in the race generating the 82.20pari-mutuel pool, or both, in a manner prescribed by the commission.82.21(h) (g) This subdivision does not apply to a class D licensee.82.22EFFECTIVE DATE.This section is effective January 1, 2016.82.23    Sec. 81. Minnesota Statutes 2014, section 240.13, subdivision 6, is amended to read:82.24    Subd. 6. Simulcasting. (a) The commission may permit an authorized licensee to 82.25conduct simulcasting at the licensee's facility on any day authorized by the commission. 82.26All simulcasts must comply with the Interstate Horse Racing Act of 1978, United States 82.27Code, title 15, sections 3001 to 3007.82.28(b) The commission may not authorize any day for simulcasting at a class A facility 82.29during the racing season, and a licensee may not be allowed to transmit out-of-state 82.30telecasts of races the licensee conducts, unless the licensee has obtained the approval of 82.31the horsepersons' organization representing the majority of the horsepersons racing the 82.32breed involved at the licensed racetrack during the preceding 12 months. In the case of 82.33a class A facility licensed under section 
         240.06, subdivision 5a, the approval applicable 82.34to the first year of the racetrack's operation may be obtained from the horsepersons' 83.1organization that represents the majority of horsepersons who will race the breed involved 83.2at the licensed racetrack during the first year of the racetrack's operation.83.3(c) The licensee may pay fees and costs to an entity transmitting a telecast of a 83.4race to the licensee for purposes of conducting pari-mutuel wagering on the race. The 83.5licensee may deduct fees and costs related to the receipt of televised transmissions from a 83.6pari-mutuel pool on the televised race, provided that one-half of any amount recouped in 83.7this manner must be added to the amounts required to be set aside for purses.83.8(d) With the approval of the commission and subject to the provisions of this 83.9subdivision, a licensee may transmit telecasts of races it conducts, for wagering purposes, 83.10to locations outside the state, and the commission may allow this to be done on a 83.11commingled pool basis.83.12(e) Except as otherwise provided in this section, simulcasting may be conducted on a 83.13separate commingled pool basis or, with the approval of the commission, on a commingled 83.14separate pool basis. All provisions of law governing pari-mutuel betting apply to 83.15simulcasting except as otherwise provided in this subdivision or in the commission's 83.16rules. If pools are commingled, wagering at the licensed facility must be on equipment 83.17electronically linked with the equipment at the licensee's class A facility or with the 83.18sending racetrack via the totalizator computer at the licensee's class A facility. Subject to 83.19the approval of the commission, the types of betting, takeout, and distribution of winnings 83.20on commingled pari-mutuel pools are those in effect at the sending racetrack. Breakage 83.21for pari-mutuel pools on a televised race must be calculated in accordance with the law or 83.22rules governing the sending racetrack for these pools, and must be distributed in a manner 83.23agreed to between the licensee and the sending racetrack. Notwithstanding subdivision 7 83.24and section 
         240.15, subdivision 5, the commission may approve procedures governing the 83.25definition and disposition of unclaimed tickets that are consistent with the law and rules 83.26governing unclaimed tickets at the sending racetrack. For the purposes of this section, 83.27"sending racetrack" is either the racetrack outside of this state where the horse race is 83.28conducted or, with the consent of the racetrack, an alternative facility that serves as the 83.29racetrack for the purpose of commingling pools.83.30(f) Except as otherwise provided in section 
         240.06, subdivision 5b, paragraph (2), 83.31if there is more than one class B licensee conducting racing within the seven-county 83.32metropolitan area, simulcasting may be conducted only on races run by a breed that ran at 83.33the licensee's class A facility within the 12 months preceding the event.83.34    Sec. 82. Minnesota Statutes 2014, section 240.135, is amended to read:83.35240.135 CARD CLUB REVENUE.84.1(a) From the amounts received from charges authorized under section 
         240.30, 84.2subdivision 4
         , the licensee shall set aside the amounts specified in this section to be 84.3used for purse payments. These amounts are in addition to the breeders fund and purse 84.4requirements set forth elsewhere in this chapter.84.5(1) For amounts between zero and $6,000,000, the licensee shall set aside not less 84.6than ten percent to be used as purses.84.7(2) For amounts in excess of $6,000,000, the licensee shall set aside not less than 84.814 percent to be used as purses.84.9(b) From all amounts set aside under paragraph (a), the licensee shall set aside 84.10ten percent to be deposited in the breeders fund. The licensee and the horseperson's 84.11organization representing the majority of horsepersons who have raced at the racetrack 84.12during the preceding 12 months may negotiate percentages different from those stated in 84.13this section if the agreement is in writing and filed with the Racing Commission.84.14(c) It is the intent of the legislature that the proceeds of the card playing activities 84.15authorized by this chapter be used to improve the horse racing industry by improving purses. 84.16The licensee and the horseperson's organization representing the majority of horsepersons 84.17who have raced at the racetrack during the preceding 12 months may negotiate percentages 84.18that exceed those stated in this section if the agreement is in writing and filed with the 84.19commission. The commission shall annually review the financial details of card playing 84.20activities and determine if the present use of card playing proceeds is consistent with the 84.21policy established by this paragraph. If the commission determines that the use of the 84.22proceeds does not comply with the policy set forth herein, then the commission shall direct 84.23the parties to make the changes necessary to ensure compliance. If these changes require 84.24legislation, the commission shall make the appropriate recommendations to the legislature.84.25    Sec. 83. Minnesota Statutes 2014, section 240.15, subdivision 1, is amended to read:84.26    Subdivision 1. Taxes imposed. (a) There is imposed a tax at the rate of six percent 84.27of the amount in excess of $12,000,000 annually withheld from all pari-mutuel pools by 84.28the licensee, including breakage and amounts withheld under section 
         240.13, subdivision 84.294
         . For the purpose of this subdivision, "annually" is the period from July 1 to June 30 of 84.30the next year.84.31In addition to the above tax, the licensee must designate and pay to the commission 84.32a tax of one percent of the total amount bet on each racing day handle for live races 84.33conducted at a class A facility, for deposit in the Minnesota breeders fund.84.34The taxes imposed by this clause must be paid from the amounts permitted to be 84.35withheld by a licensee under section 
         240.13, subdivision 4.85.1(b) The commission may impose an admissions tax of not more than ten cents on 85.2each paid admission at a licensed racetrack on a racing day if:85.3(1) the tax is requested by a local unit of government within whose borders the 85.4track is located;85.5(2) a public hearing is held on the request; and85.6(3) the commission finds that the local unit of government requesting the tax is in 85.7need of its revenue to meet extraordinary expenses caused by the racetrack.85.8    Sec. 84. Minnesota Statutes 2014, section 240.15, subdivision 6, is amended to read:85.9    Subd. 6. Disposition of proceeds; account. The commission shall distribute all 85.10money received under this section, and all money received from license fees and fines it 85.11collects, according to this subdivision. All money designated for deposit in the Minnesota 85.12breeders fund must be paid into that fund for distribution under section 
         240.18 except that 85.13all money generated by full racing card simulcasts must be distributed as provided in 85.14section 
         240.18, subdivisions 2, paragraph (d), clauses (1), (2), and (3); and 3. Revenue 85.15from an admissions tax imposed under subdivision 1 must be paid to the local unit of 85.16government at whose request it was imposed, at times and in a manner the commission 85.17determines. Taxes received under this section and fines collected under section 
         240.2285.18must be paid to the commissioner of management and budget for deposit in the general 85.19fund. All revenues from licenses and other fees imposed by the commission must be 85.20deposited in the state treasury and credited to a racing and card playing regulation account 85.21in the special revenue fund. Receipts in this account are available for the operations of the 85.22commission up to the amount authorized in biennial appropriations from the legislature.85.23    Sec. 85. Minnesota Statutes 2014, section 240.16, subdivision 1, is amended to read:85.24    Subdivision 1. Powers and duties. All horse races run at a licensed racetrack must 85.25be presided over by a board of three stewards, who must be appointees of the commission or 85.26persons approved by it. The commission shall designate one steward as chair. At least two 85.27stewards for all races either shall be employees of the commission who shall serve in the 85.28unclassified service, or shall be under contract with the commission to serve as stewards. 85.29The commission may delegate the following duties and powers to a board of stewards:85.30(a) to ensure that races are run in accordance with the commission's rules;85.31(b) to supervise the conduct of racing to ensure the integrity of the sport;85.32(c) to settle disputes arising from the running of horse races, and to certify official 85.33results;86.1(d) to impose on licensees, for violation of law or commission rules, fines not 86.2exceeding $2,000 $5,000 and license suspensions not exceeding 90 days;86.3(e) to recommend to the commission where warranted penalties in excess of those 86.4in clause (d);86.5(f) to otherwise enforce the laws and rules of racing; and86.6(g) to perform other duties and have other powers assigned by the commission.86.7    Sec. 86. Minnesota Statutes 2014, section 240.22, is amended to read:86.8240.22 FINES.86.9(a) The commission shall by rule establish a graduated schedule of civil fines for 86.10violations of laws related to horse racing or of the commission's rules. The schedule 86.11must include minimum and maximum fines for each violation and be based on and 86.12reflect the culpability, frequency and severity of the violator's actions. The commission 86.13may impose a fine from this schedule on a licensee for a violation of those rules or laws 86.14relating to horse racing. The fine is in addition to any criminal penalty imposed for the 86.15same violation. Fines imposed by the commission must be paid to the commission and 86.16except as provided in paragraph (b), forwarded to the commissioner of management and 86.17budget for deposit in the general fund. A fine in excess of $2,000 $5,000 is a contested 86.18case under the Administrative Procedure Act.86.19(b) If the commission is the prevailing party in a contested case proceeding, the 86.20commission may recover, from amounts to be forwarded under paragraph (a), reasonable 86.21attorney fees and costs associated with the contested case.86.22EFFECTIVE DATE.This section is effective July 1, 2016.86.23    Sec. 87. Minnesota Statutes 2014, section 240.23, is amended to read:86.24240.23 RULEMAKING AUTHORITY.86.25The commission has the authority, in addition to all other rulemaking authority 86.26granted elsewhere in this chapter to promulgate rules governing:86.27(a) the conduct of horse races held at licensed racetracks in Minnesota, including but 86.28not limited to the rules of racing, standards of entry, operation of claiming races, filing and 86.29handling of objections, carrying of weights, and declaration of official results;86.30(b) wire wired and wireless communications between the premises of a licensed 86.31racetrack and any place outside the premises;86.32(c) information on horse races which is sold on the premises of a licensed racetrack;87.1(d) liability insurance which it may require of all class A, class B, and class D 87.2licensees;87.3(e) the auditing of the books and records of a licensee by an auditor employed 87.4or appointed by the commission;87.5(f) emergency action plans maintained by licensed racetracks and their periodic 87.6review;87.7(g) safety, security, and sanitation of stabling facilities at licensed racetracks;87.8(h) entry fees and other funds received by a licensee in the course of conducting 87.9racing which the commission determines must be placed in escrow accounts;87.10(i) affirmative action in employment and contracting by class A, class B, and class D 87.11licensees; and87.12(j) procedures for the sampling and testing of any horse that is eligible to race in 87.13Minnesota for substances or practices that are prohibited by law or rule; and87.14(j) (k) any other aspect of horse racing or pari-mutuel betting which in its opinion 87.15affects the integrity of racing or the public health, welfare, or safety.87.16Rules of the commission are subject to chapter 14, the Administrative Procedure Act.87.17EFFECTIVE DATE.This section is effective the day following final enactment.87.18    Sec. 88. Minnesota Statutes 2014, section 272.484, is amended to read:87.19272.484 FEES.87.20The fee for filing and indexing each notice of lien or certificate or notice affecting 87.21the lien is:87.22(1) for a lien, certificate of discharge or subordination, and for all other notices, 87.23including a certificate of release or nonattachment filed with the secretary of state, the fee 87.24provided by section 
         336.9-525, except that the filing fee charged to the district directors 87.25of internal revenue for filing a federal tax lien is $15 for up to two debtor names and 87.26$15 for each additional name; and87.27(2) for a lien, certificate of discharge or subordination, and for all other notices, 87.28including a certificate of release or nonattachment filed with the county recorder, the fee 87.29for filing a real estate mortgage in the county where filed.87.30The officer shall bill the district directors of internal revenue or other appropriate 87.31federal officials on a monthly basis for fees for documents filed by them.87.32    Sec. 89. Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read:88.1    Subdivision 1. The Office of the Commissioner of Iron Range resources 88.2and rehabilitation. (a) The Office of the Commissioner of Iron Range resources and 88.3rehabilitation is created as an agency in the executive branch of state government. The 88.4governor shall appoint the commissioner of Iron Range resources and rehabilitation under 88.5section 
         15.06.88.6(b) The commissioner may hold other positions or appointments that are not 88.7incompatible with duties as commissioner of Iron Range resources and rehabilitation. The 88.8commissioner may appoint a deputy commissioner. All expenses of the commissioner, 88.9including the payment of staff and other assistance as may be necessary, must be paid 88.10out of the amounts appropriated by section 
         298.28 or otherwise made available by law 88.11to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner 88.12may utilize contracting options available under section 471.345 when the commissioner 88.13determines it is in the best interest of the agency. The agency is not subject to sections 88.1416E.016 and 16C.05.88.15(c) When the commissioner determines that distress and unemployment exists or 88.16may exist in the future in any county by reason of the removal of natural resources or 88.17a possibly limited use of natural resources in the future and any resulting decrease in 88.18employment, the commissioner may use whatever amounts of the appropriation made to 88.19the commissioner of revenue in section 
         298.28 that are determined to be necessary and 88.20proper in the development of the remaining resources of the county and in the vocational 88.21training and rehabilitation of its residents, except that the amount needed to cover cost 88.22overruns awarded to a contractor by an arbitrator in relation to a contract awarded by 88.23the commissioner or in effect after July 1, 1985, is appropriated from the general fund. 88.24For the purposes of this section, "development of remaining resources" includes, but is 88.25not limited to, the promotion of tourism.88.26    Sec. 90. Minnesota Statutes 2014, section 303.19, is amended to read:88.27303.19 REINSTATEMENT.88.28    Subdivision 1. Application Required filing. Any foreign corporation whose 88.29certificate of authority to do business in this state shall have been revoked or canceled may 88.30file reinstate that authority by filing an annual renewal and the fee required by subdivision 88.312 with the secretary of state an application for reinstatement. Such application shall be 88.32on forms prescribed by the secretary of state, shall contain all the matters required to be 88.33set forth in an original application for a certificate of authority, and such other pertinent 88.34information as may be required by the secretary of state. If any of the information in the 88.35original application for authority has changed, the foreign corporation must also file an 89.1amended certificate setting forth the currently accurate information, with the fee required 89.2by section 303.21, subdivision 3.89.3    Subd. 2. Fee. If the certificate of authority was revoked by the secretary of state 89.4pursuant to section 
         303.17, the corporation shall pay to the commissioner of management 89.5and budget $250 before it may be reinstated.89.6If the certificate of authority was canceled or by a judgment pursuant to section 89.7303.18
         , the corporation shall pay to the commissioner of management and budget $500 89.8before it may be reinstated.89.9    Subd. 3. Certificate of reinstatement. Upon the filing of the application and upon 89.10payment of all penalties, fees and charges required by law, not including an initial license 89.11fee or additional license fees to the extent that they have previously been paid by the 89.12corporation the fees imposed by this section, the secretary of state shall reinstate the 89.13license of the corporation.89.14    Sec. 91. Minnesota Statutes 2014, section 304A.301, subdivision 1, is amended to read:89.15    Subdivision 1. Report required.No later than 90 days after the conclusion of 89.16each calendar year Before each April 1, a public benefit corporation must deliver to the 89.17secretary of state for filing an annual benefit report covering the 12-month period ending 89.18on December 31 of that the previous year and pay a fee of $35 to the secretary of state. 89.19The annual benefit report must state the name of the public benefit corporation, be signed 89.20by the public benefit corporation's chief executive officer not more than 30 days before the 89.21report is delivered to the secretary of state for filing, and must be current when signed.89.22    Sec. 92. Minnesota Statutes 2014, section 304A.301, subdivision 5, is amended to read:89.23    Subd. 5. Failure to file an annual benefit report. If a public benefit corporation 89.24fails to file an, before April 1 of any calendar year, the annual benefit report in accordance 89.25with this section within 90 days of the date on which an annual benefit report is due 89.26required by this section, the secretary of state shall revoke the corporation's status as a 89.27public benefit corporation under this chapter and must notify the public benefit corporation 89.28of the revocation using the information provided by the corporation pursuant to section 89.295.002
          or 
         5.34 or provided in the articles.89.30    Sec. 93. Minnesota Statutes 2014, section 304A.301, subdivision 6, is amended to read:89.31    Subd. 6. Effects of revocation; reinstatement. (a) A public benefit corporation 89.32that has lost its public benefit corporation status for failure to timely file an annual benefit 89.33report or by terminating that status pursuant to section 304A.103 is not entitled to the 90.1benefits afforded to a public benefit corporation under this chapter as of the date of 90.2revocation or termination and must amend the articles of incorporation to reflect a name 90.3compliant with section 302A.115, but which does not include the corporate designation 90.4provided for in section 304A.101, subdivision 2.90.5(b) Within 30 days of issuance of revocation of public benefit corporation status by 90.6the secretary of state, filing a renewal complying with this section and a $500 fee with 90.7the secretary of state will reinstate the corporation as a public benefit corporation under 90.8this chapter as of the date of revocation.90.9    Sec. 94. Minnesota Statutes 2014, section 304A.301, is amended by adding a 90.10subdivision to read:90.11    Subd. 8.Failure to change corporate name.The duration of a corporation that has 90.12had public benefit status terminated or revoked and which fails to change the corporate 90.13name as provided in subdivision 6 expires automatically 30 days after termination or 90.14revocation of the public benefit corporation status.90.15    Sec. 95. Minnesota Statutes 2014, section 326A.01, subdivision 2, is amended to read:90.16    Subd. 2. Attest. "Attest" means to provide providing any of the following financial 90.17statement services:90.18(1) an audit or other engagement performed in accordance with the Statements on 90.19Auditing Standards (SAS);90.20(2) a review of a financial statement performed in accordance with the Statements on 90.21Standards for Accounting and Review Services (SSARS);90.22(3) an examination of prospective financial information performed in accordance 90.23with the Statements on Standards for Attestation Engagements (SSAE); and90.24(4) any an engagement performed in accordance with auditing and related the  90.25standards of the Public Company Accounting Oversight Board (PCAOB); and90.26(5) an examination, review, or agreed-upon procedures engagement performed in 90.27accordance with SSAE, other than an examination described in clause (3).90.28    Sec. 96. Minnesota Statutes 2014, section 326A.01, subdivision 12, is amended to read:90.29    Subd. 12. Peer review. "Peer review" means an independent study, appraisal, or 90.30review of one or more aspects of the professional work of a licensee  or CPA firm that 90.31issues attest or compilation reports, or the professional work of a person registered under 90.32section 
         326A.06, paragraph (b), by persons who are not affiliated with the licensee  or 90.33CPA firm being reviewed.91.1    Sec. 97. Minnesota Statutes 2014, section 326A.01, subdivision 13a, is amended to read:91.2    Subd. 13a. Principal place of business. "Principal place of business" means the 91.3office location designated by the licensee for purposes of substantial equivalency and 91.4reciprocity in this state and in other states.91.5    Sec. 98. Minnesota Statutes 2014, section 326A.01, subdivision 15, is amended to read:91.6    Subd. 15. Report. "Report," when used with reference to financial statements an 91.7attest or compilation service, means an opinion, report, or other form of language that 91.8states or implies assurance as to the reliability of any the attested information or compiled 91.9financial statements and that also includes or is accompanied by a statement or implication 91.10that the person or firm issuing it has special knowledge or competence in accounting or 91.11auditing. Such a statement or implication of special knowledge or competence may arise 91.12from use by the issuer of the report of names or titles indicating that the person or firm is an 91.13accountant or auditor, or from the language of the report itself. The term "report" includes 91.14any form of language that disclaims an opinion when the form of language is conventionally 91.15understood to imply any positive assurance as to the reliability of the  attested information 91.16or compiled financial statements referred to or special competence on the part of the person 91.17or firm issuing the language. It includes any other form of language that is conventionally 91.18understood to imply such assurance or such special knowledge or competence.91.19    Sec. 99. Minnesota Statutes 2014, section 326A.01, subdivision 16, is amended to read:91.20    Subd. 16. State. "State" means any state of the United States, the District of 91.21Columbia, Puerto Rico, the U.S. Virgin Islands, the Commonwealth of the Northern 91.22Mariana Islands, and Guam; except that "this state" means the state of Minnesota.91.23    Sec. 100. Minnesota Statutes 2014, section 326A.02, subdivision 3, is amended to read:91.24    Subd. 3. Officers; proceedings. The board shall elect one of its number members  91.25as chair, another as vice-chair, and another as secretary and treasurer. The officers shall 91.26hold their respective offices for a term of one year and until their successors are elected. 91.27The affirmative vote of a majority of the qualified members of the board, or a majority of 91.28a quorum of the board at any meeting duly called, is considered the action of the board. 91.29The board shall meet at such times and places as may be fixed by the board. Meetings 91.30of the board are subject to chapter 13D. A majority of the board members then in office 91.31constitutes a quorum at any meeting duly called. The board shall retain or arrange for the 91.32retention of all applications and all documents under oath that are filed with the board and 91.33also records of its proceedings, and it shall maintain a registry of the names and addresses 92.1of all licensees and registrants under this chapter. In any proceeding in court, civil or 92.2criminal, arising out of or founded upon any provision of this chapter, copies of records of 92.3the proceeding certified as true copies by the board chair or executive director shall be 92.4admissible in evidence as tending to prove the contents of the records.92.5    Sec. 101. Minnesota Statutes 2014, section 326A.02, subdivision 5, is amended to read:92.6    Subd. 5. Rules. The board may adopt rules governing its administration and 92.7enforcement of this chapter and the conduct of licensees and persons registered under 92.8section 
         326A.06, paragraph (b), including:92.9(1) rules governing the board's meetings and the conduct of its business;92.10(2) rules of procedure governing the conduct of investigations and hearings and 92.11discipline by the board;92.12(3) rules specifying the educational and experience qualifications required for the 92.13issuance of certificates and the continuing professional education required for renewal 92.14of certificates;92.15(4) rules of professional conduct directed to controlling the quality and probity 92.16of services by licensees, and dealing among other things with independence, integrity, 92.17and objectivity; competence and technical standards; and responsibilities to the public 92.18and to clients;92.19(5) rules governing the professional standards applicable to licensees including 92.20adoption of the standards specified in section 
         326A.01, subdivision 2, and as developed 92.21for general application by recognized national accountancy organizations such as the 92.22American Institute of Certified Public Accountants or the Public Company Accounting 92.23Oversight Board;92.24(6) rules that incorporate by reference the standards for attesting listed in section 92.25326A.01, subdivision 2, that are consistent with the standards of general applicability 92.26recognized by national accountancy organizations, including the American Institute of 92.27Certified Public Accountants and the Public Company Accounting Oversight Board;92.28(6) (7) rules governing the manner and circumstances of use of the titles "certified 92.29public accountant," "CPA," "registered accounting practitioner," and "RAP";92.30(7) (8) rules regarding peer review that may be required to be performed under 92.31provisions of this chapter;92.32(8) (9) rules on substantial equivalence to implement section 
         326A.14;92.33(9) (10) rules regarding the conduct of the certified public accountant examination;92.34(10) (11) rules regarding the issuance and renewals of certificates, permits, and 92.35registrations;93.1(11) (12) rules regarding transition provisions to implement this chapter;93.2(12) (13) rules specifying the educational and experience qualifications for 93.3registration, rules of professional conduct, rules regarding peer review, rules governing 93.4standards for providing services, and rules regarding the conduct and content of 93.5examination for those persons registered under section 
         326A.06, paragraph (b);93.6(13) (14) rules regarding fees for examinations, certificate issuance and renewal, 93.7firm permits, registrations under section 
         326A.06, paragraph (b), notifications made under 93.8section 
         326A.14, and late processing fees; and93.9(14) (15) upon any change to this chapter, if the board determines a change in 93.10Minnesota Rules is required, the board may initiate the expedited process under section 93.1114.389
          up to one year after the effective date of the change to this chapter.93.12    Sec. 102. Minnesota Statutes 2014, section 326A.05, subdivision 1, is amended to read:93.13    Subdivision 1. General. The board shall grant or renew permits to practice as 93.14a CPA firm to entities that make application and demonstrate their qualifications in 93.15accordance with this section.93.16(a) The following must hold a permit issued under this section:93.17(1) any firm with an office in this state performing attest services as defined in 93.18section 
         326A.01, subdivision 2;93.19(2) to the extent required by section 
         326A.10, paragraph (k), any firm with an office 93.20in this state performing compilation services as defined in section 
         326A.01, subdivision 6;93.21(3) any firm with an office in this state that uses the title "CPA" or "CPA firm"; or93.22(4) any firm that does not have an office in this state but performs attest services 93.23as described in section 
         326A.01, subdivision 2, paragraph (1), (3), or (4), for a client 93.24having its headquarters in this state.93.25(b) A firm possessing a valid permit from another state which does not have an office 93.26in this state may perform services described in section 
         326A.01, subdivision 2, clause (2) 93.27or (5), or subdivision 6, for a client having its headquarters in this state and may use the 93.28title "CPA" or "CPA firm" without a permit issued under this section only if:93.29(1) it has the qualifications described in subdivision 3, paragraph (b);93.30(2) as a condition to the renewal of the firm's permit issued by the other state, that 93.31state requires a peer review which contains the requirements equivalent to subdivision 8, 93.32paragraphs (a) and (e); and93.33(3) it performs the services through an individual who has been granted practice 93.34privileges under section 
         326A.14.94.1(c) A firm possessing a valid permit from another state that does not have an office 94.2in this state and which is not subject to the requirements of paragraph (a), clause (4), or 94.3(b), may perform other professional services while using the title "CPA" or "CPA firm" in 94.4this state without a permit issued under this section only if the firm:94.5(1) has the qualifications described in subdivision 3, paragraph (b);94.6(2) performs the services through an individual who has been granted practice 94.7privileges under section 
         326A.14; and94.8(3) can lawfully perform the services in the state where the individuals with practice 94.9privileges have their principal place of business.94.10    Sec. 103. Minnesota Statutes 2014, section 326A.05, subdivision 3, is amended to read:94.11    Subd. 3. Qualifications. (a) An applicant for initial issuance or renewal of a permit 94.12to practice under this section shall comply with the requirements in this subdivision.94.13(b) Notwithstanding chapter 319B or any other provision of law, a simple majority 94.14of the ownership of the firm, in terms of financial interests and voting rights of all partners, 94.15officers, shareholders, members, or managers, must belong to holders of certificates who 94.16are licensed in some state, and the partners, officers, shareholders, members, or managers, 94.17whose principal place of business is in this state, and who perform professional services in 94.18this state, must hold valid certificates issued under section 
         326A.04 or the corresponding 94.19provision of prior law. Although firms may include nonlicensee owners, the firm and 94.20its ownership must comply with rules adopted by the board. The firm shall register all 94.21nonlicensee owners with the state board as set forth by rule. An individual who has been 94.22granted practice privileges under section 
         326A.14 and who performs services for which 94.23a firm permit is required under section 
         326A.14, subdivision 1, paragraph (d), is not 94.24required to obtain a certificate from the board under section 
         326A.04.94.25(c) A CPA firm may include nonlicensee owners provided that:94.26(1) the firm designates a licensee of this state, or in the case of a firm that must 94.27have a permit according to section 
         326A.14, subdivision 1, paragraph (d), a licensee of 94.28another state who meets the requirements in section 
         326A.14, subdivision 1, paragraph 94.29(a) or (b), who is responsible for the proper registration of the firm and identifies that 94.30individual to the board;94.31(2) all nonlicensee owners are persons of good moral character and are active 94.32individual participants in the CPA firm or affiliated entities; and94.33(3) the firm complies with other requirements imposed by the board in rule.94.34(d) An individual licensee and any individual granted practice privileges under 94.35section 
         326A.14 who is responsible for supervising attest or compilation services and 95.1signs or authorizes someone to sign the accountant's report on the financial statements 95.2on behalf of the firm, shall meet the competency requirements set out in the professional 95.3standards for such services.95.4(e) An individual licensee and any individual granted practice privileges under section 95.5326A.14 
         who signs or authorizes someone to sign the accountants' report on the financial 95.6statements on behalf of the firm shall meet the competency requirement of paragraph (d).95.7    Sec. 104. Minnesota Statutes 2014, section 326A.10, is amended to read:95.8326A.10 UNLAWFUL ACTS.95.9(a) Only a licensee and individuals who have been granted practice privileges 95.10under section 
         326A.14 may issue a report on financial statements of any person, firm, 95.11organization, or governmental unit that results from providing attest services, or offer to 95.12render or render any attest service. Only a certified public accountant, an individual who 95.13has been granted practice privileges under section 
         326A.14, a CPA firm, or, to the extent 95.14permitted by board rule, a person registered under section 
         326A.06, paragraph (b), may 95.15issue a report on financial statements of any person, firm, organization, or governmental 95.16unit that results from providing compilation services or offer to render or render any 95.17compilation service. These restrictions do not prohibit any act of a public official or 95.18public employee in the performance of that person's duties or prohibit the performance 95.19by any nonlicensee of other services involving the use of accounting skills, including 95.20the preparation of tax returns, management advisory services, and the preparation of 95.21financial statements without the issuance of reports on them. Nonlicensees may prepare 95.22financial statements and issue nonattest transmittals or information on them which do not 95.23purport to be in compliance with the Statements on Standards for Accounting and Review 95.24Services (SSARS). Nonlicensees registered under section 
         326A.06, paragraph (b), may, 95.25to the extent permitted by board rule, prepare financial statements and issue nonattest 95.26transmittals or information on them.95.27(b) Licensees and individuals who have been granted practice privileges under 95.28section 
         326A.14 performing attest or compilation services must provide those services in 95.29accordance with professional standards. To the extent permitted by board rule, registered 95.30accounting practitioners performing compilation services must provide those services in 95.31accordance with standards specified in board rule.95.32(c) A person who does not hold a valid certificate issued under section 
         326A.04 95.33or a practice privilege granted under section 
         326A.14 shall not use or assume the title 95.34"certified public accountant," the abbreviation "CPA," or any other title, designation, 96.1words, letters, abbreviation, sign, card, or device tending to indicate that the person is a 96.2certified public accountant.96.3(d) A firm shall not provide attest services or assume or use the title "certified public 96.4accountants," the abbreviation "CPA's," or any other title, designation, words, letters, 96.5abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless 96.6(1) the firm has complied with section 
         326A.05, and (2) ownership of the firm is in 96.7accordance with this chapter and rules adopted by the board.96.8(e) A person or firm that does not hold a valid certificate or permit issued under 96.9section 
         326A.04 or 
         326A.05 or has not otherwise complied with section 
         326A.04 or 96.10326A.05
          as required in this chapter shall not assume or use the title "certified accountant," 96.11"chartered accountant," "enrolled accountant," "licensed accountant," "registered 96.12accountant," "accredited accountant," "accounting practitioner," "public accountant," 96.13"licensed public accountant," or any other title or designation likely to be confused 96.14with the title "certified public accountant," or use any of the abbreviations "CA," "LA," 96.15"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the 96.16abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals 96.17so designated by the Internal Revenue Service.96.18(f) Persons registered under section 
         326A.06, paragraph (b), may use the title 96.19"registered accounting practitioner" or the abbreviation "RAP." A person who does not 96.20hold a valid registration under section 
         326A.06, paragraph (b), shall not assume or use 96.21such title or abbreviation.96.22(g) Except to the extent permitted in paragraph (a), nonlicensees may not use 96.23language in any statement relating to the financial affairs of a person or entity that is 96.24conventionally used by licensees in reports on financial statements or on an attest service. 96.25In this regard, the board shall issue by rule safe harbor language that nonlicensees may 96.26use in connection with such financial information. A person or firm that does not hold a 96.27valid certificate or permit, or a registration issued under section 
         326A.04, 
         326A.05, or 96.28326A.06, paragraph (b)
         , or has not otherwise complied with section 
         326A.04 or 
         326A.0596.29as required in this chapter shall not assume or use any title or designation that includes the 96.30word "accountant" or "accounting" in connection with any other language, including the 96.31language of a report, that implies that the person or firm holds such a certificate, permit, 96.32or registration or has special competence as an accountant. A person or firm that does 96.33not hold a valid certificate or permit issued under section 
         326A.04 or 
         326A.05 or has not 96.34otherwise complied with section 
         326A.04 or 
         326A.05 as required in this chapter shall not 96.35assume or use any title or designation that includes the word "auditor" in connection with 96.36any other language, including the language of a report, that implies that the person or firm 97.1holds such a certificate or permit or has special competence as an auditor. However, 97.2this paragraph does not prohibit any officer, partner, member, manager, or employee of 97.3any firm or organization from affixing that person's own signature to any statement in 97.4reference to the financial affairs of such firm or organization with any wording designating 97.5the position, title, or office that the person holds, nor prohibit any act of a public official or 97.6employee in the performance of the person's duties as such.97.7(h)(1) No person holding a certificate or registration or firm holding a permit under 97.8this chapter shall use a professional or firm name or designation that is misleading about 97.9the legal form of the firm, or about the persons who are partners, officers, members, 97.10managers, or shareholders of the firm, or about any other matter. However, names of one 97.11or more former partners, members, managers, or shareholders may be included in the 97.12name of a firm or its successor.97.13(2) A common brand name or network name part, including common initials, used 97.14by a CPA firm in its name, is not misleading if the firm is a network firm as defined in 97.15the American Institute of Certified Public Accountants (AICPA) Code of Professional 97.16Conduct in effect July 1, 2011, and when offering or rendering services that require 97.17independence under AICPA standards, the firm must comply with the AICPA code's 97.18applicable standards on independence.97.19(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification, 97.20designation, degree, or license granted in a foreign country entitling the holder to engage 97.21in the practice of public accountancy or its equivalent in that country, if:97.22(1) the activities of the person or firm in this state are limited to the provision of 97.23professional services to persons or firms who are residents of, governments of, or business 97.24entities of the country in which the person holds the entitlement;97.25(2) the person or firm performs no attest or compilation services and issues no 97.26reports with respect to the financial statements information of any other persons, firms, or 97.27governmental units in this state; and97.28(3) the person or firm does not use in this state any title or designation other than 97.29the one under which the person practices in the foreign country, followed by a translation 97.30of the title or designation into English, if it is in a different language, and by the name 97.31of the country.97.32(j) No holder of a certificate issued under section 
         326A.04 may perform attest services 97.33through any business form that does not hold a valid permit issued under section 
         326A.05.97.34(k) No individual licensee may issue a report in standard form upon a compilation 97.35of financial information through any form of business that does not hold a valid permit 98.1issued under section 
         326A.05, unless the report discloses the name of the business through 98.2which the individual is issuing the report, and the individual:98.3(1) signs the compilation report identifying the individual as a certified public 98.4accountant;98.5(2) meets the competency requirement provided in applicable standards; and98.6(3) undergoes no less frequently than once every three years, a peer review 98.7conducted in a manner specified by the board in rule, and the review includes verification 98.8that the individual has met the competency requirements set out in professional standards 98.9for such services.98.10(l) No person registered under section 
         326A.06, paragraph (b), may issue a report 98.11in standard form upon a compilation of financial information unless the board by rule 98.12permits the report and the person:98.13(1) signs the compilation report identifying the individual as a registered accounting 98.14practitioner;98.15(2) meets the competency requirements in board rule; and98.16(3) undergoes no less frequently than once every three years a peer review conducted 98.17in a manner specified by the board in rule, and the review includes verification that the 98.18individual has met the competency requirements in board rule.98.19(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from 98.20preparing or presenting records or documents customarily prepared by an attorney or firm 98.21of attorneys in connection with the attorney's professional work in the practice of law.98.22(n) The board shall adopt rules that place limitations on receipt by a licensee or a 98.23person who holds a registration under section 
         326A.06, paragraph (b), of:98.24(1) contingent fees for professional services performed; and98.25(2) commissions or referral fees for recommending or referring to a client any 98.26product or service.98.27(o) Anything in this section to the contrary notwithstanding, it shall not be a violation 98.28of this section for a firm not holding a valid permit under section 
         326A.05 and not having 98.29an office in this state to provide its professional services in this state so long as it complies 98.30with the applicable requirements of section 
         326A.05, subdivision 1.98.31    Sec. 105. Minnesota Statutes 2014, section 336A.09, subdivision 1, is amended to read:98.32    Subdivision 1. Procedure. (a) Oral Online and written inquiries regarding 98.33information provided by the filing of effective financing statements or lien notices may 98.34be made at any filing office submitted to the secretary of state during regular business 98.35hours or, if submitted online, at any time.99.1(b) A filing office receiving an oral or written inquiry shall, upon request The 99.2secretary of state must, upon receiving an inquiry, provide an oral or facsimile a prompt 99.3response to the inquiry.99.4(c) A filing office The secretary of state shall maintain a record of inquiries made 99.5under this section including:99.6(1) the date of the inquiry;99.7(2) the name of the debtor inquired about; and99.8(3) identification of the person making the request for inquiry.99.9    Sec. 106. Minnesota Statutes 2014, section 364.09, is amended to read:99.10364.09 EXCEPTIONS.99.11(a) This chapter does not apply to the licensing process for peace officers; to law 99.12enforcement agencies as defined in section 
         626.84, subdivision 1, paragraph (f); to fire 99.13protection agencies; to eligibility for a private detective or protective agent license; to the 99.14licensing and background study process under chapters 245A and 245C; to the licensing 99.15and background investigation process under chapter 240; to eligibility for school bus 99.16driver endorsements; to eligibility for special transportation service endorsements; to 99.17eligibility for a commercial driver training instructor license, which is governed by section 99.18171.35
          and rules adopted under that section; to emergency medical services personnel, or 99.19to the licensing by political subdivisions of taxicab drivers, if the applicant for the license 99.20has been discharged from sentence for a conviction within the ten years immediately 99.21preceding application of a violation of any of the following:99.22(1) sections 
         609.185 to 
         609.2114, 
         609.221 to 
         609.223, 
         609.342 to 
         609.3451, or 99.23617.23
         , subdivision 2 or 3; or Minnesota Statutes 2012, section 
         609.21;99.24(2) any provision of chapter 152 that is punishable by a maximum sentence of 99.2515 years or more; or99.26(3) a violation of chapter 169 or 169A involving driving under the influence, leaving 99.27the scene of an accident, or reckless or careless driving.99.28This chapter also shall not apply to eligibility for juvenile corrections employment, where 99.29the offense involved child physical or sexual abuse or criminal sexual conduct.99.30(b) This chapter does not apply to a school district or to eligibility for a license 99.31issued or renewed by the Board of Teaching or the commissioner of education.99.32(c) Nothing in this section precludes the Minnesota Police and Peace Officers 99.33Training Board or the state fire marshal from recommending policies set forth in this 99.34chapter to the attorney general for adoption in the attorney general's discretion to apply to 99.35law enforcement or fire protection agencies.100.1(d) This chapter does not apply to a license to practice medicine that has been denied 100.2or revoked by the Board of Medical Practice pursuant to section 
         147.091, subdivision 1a.100.3(e) This chapter does not apply to any person who has been denied a license to 100.4practice chiropractic or whose license to practice chiropractic has been revoked by the 100.5board in accordance with section 
         148.10, subdivision 7.100.6(f) This chapter does not apply to any license, registration, or permit that has 100.7been denied or revoked by the Board of Nursing in accordance with section 
         148.261, 100.8subdivision 1a.100.9(g) This chapter does not supersede a requirement under law to conduct a criminal 100.10history background investigation or consider criminal history records in hiring for 100.11particular types of employment.100.12    Sec. 107. [383B.83] LIMITS ON RAILROAD CONDEMNATION POWERS 100.13OVER CERTAIN GOVERNMENTAL PROPERTY INTERESTS.100.14Notwithstanding anything to the contrary in chapter 117, sections 222.26, 222.27, 100.15222.36, or any other law, the powers of a railroad corporation or a railroad company 100.16or a railroad interest acting as a public service corporation or a common carrier do not 100.17include the power to exercise eminent domain over a property interest owned by Hennepin 100.18County, the Hennepin County Housing and Redevelopment Authority, or the Hennepin 100.19County Regional Railroad Authority if such governmental power, by resolution of its 100.20governing board, determines based on findings that the public safety or access of first 100.21responders would be detrimentally affected by the exercise. 100.22EFFECTIVE DATE.This section is effective the day following final enactment.100.23    Sec. 108. Minnesota Statutes 2014, section 471.6161, subdivision 8, is amended to read:100.24    Subd. 8. School districts; group health insurance coverage. (a) Any entity 100.25providing group health insurance coverage to a school district must provide the school 100.26district with school district-specific nonidentifiable aggregate claims records for the most 100.27recent 24 months within 30 days of the request.100.28(b) School districts shall request proposals for group health insurance coverage as 100.29provided in subdivision 2 from a minimum of three potential sources of coverage. One of 100.30these requests must go to an administrator governed by chapter 43A. Entities referenced 100.31in subdivision 1 must respond to requests for proposals received directly from a school 100.32district. School districts that are self-insured must also follow these provisions, except 100.33as provided in paragraph (f). School districts must make requests for proposals at least 100.34150 days prior to the expiration of the existing contract but not more frequently than once 101.1every 24 months. The request for proposals must include the most recently available 101.224 months of nonidentifiable aggregate claims data. The request for proposals must be 101.3publicly released at or prior to its release to potential sources of coverage.101.4(c) School district contracts for group health insurance must not be longer than 101.5two years unless the exclusive representative of the largest employment group and the 101.6school district agree otherwise.101.7(d) All initial proposals shall be sealed upon receipt until they are all opened no less 101.8than 90 days prior to the plan's renewal date in the presence of up to three representatives 101.9selected by the exclusive representative of the largest group of employees. Section 
         13.591, 101.10subdivision 3
         , paragraph (b), applies to data in the proposals. The representatives of 101.11the exclusive representative must maintain the data according to this classification and 101.12are subject to the remedies and penalties under sections 
         13.08 and 
         13.09 for a violation 101.13of this requirement.101.14(e) A school district, in consultation with the same representatives referenced in 101.15paragraph (d), may continue to negotiate with any entity that submitted a proposal under 101.16paragraph (d) in order to reduce costs or improve services under the proposal. Following 101.17the negotiations any entity that submitted an initial proposal may submit a final proposal 101.18incorporating the negotiations, which is due no less than 75 days prior to the plan's 101.19renewal date. All the final proposals submitted must be opened at the same time in the 101.20presence of up to three representatives selected by the exclusive representative of the 101.21largest group of employees. Notwithstanding section 
         13.591, subdivision 3, paragraph (b), 101.22following the opening of the final proposals, all the proposals, including any made under 101.23paragraph (d), and other data submitted in connection with the proposals are public data. 101.24The school district may choose from any of the initial or final proposals without further 101.25negotiations and in accordance with subdivision 5, but not sooner than 15 days after 101.26the proposals become public data.101.27(f) School districts that are self-insured shall follow all of the requirements of this 101.28section, except that:101.29(1) their requests for proposals may be for third-party administrator services, where 101.30applicable;101.31(2) these requests for proposals must be from a minimum of three different sources, 101.32which may include both entities referenced in subdivision 1 and providers of third-party 101.33administrator services;101.34(3) for purposes of fulfilling the requirement to request a proposal for group 101.35insurance coverage from an administrator governed by chapter 43A, self-insured districts 101.36are not required to include in the request for proposal the coverage to be provided;102.1(4) a district that is self-insured on or before the date of enactment, or that is 102.2self-insured with more than 1,000 insured lives, or a district in which the school board 102.3adopted a motion on or before May 14, 2014, to approve a self-insured health care plan 102.4to be effective July 1, 2014, may, but need not, request a proposal from an administrator 102.5governed by chapter 43A;102.6(5) requests for proposals must be sent to providers no less than 90 days prior to 102.7the expiration of the existing contract; and102.8(6) proposals must be submitted at least 60 days prior to the plan's renewal date 102.9and all proposals shall be opened at the same time and in the presence of the exclusive 102.10representative, where applicable.102.11(g) Nothing in this section shall restrict the authority granted to school district boards 102.12of education by section 
         471.59, except that districts will not be considered self-insured for 102.13purposes of this subdivision solely through participation in a joint powers arrangement.102.14(h) An entity providing group health insurance to a school district under a multiyear 102.15contract must give notice of any rate or plan design changes applicable under the contract 102.16at least 90 days before the effective date of any change. The notice must be given to the 102.17school district and to the exclusive representatives of employees.102.18(i) Notwithstanding the provisions of section 43A.316, subdivision 10, school 102.19employees and their employers insured through chapter 43A are subject to the 102.20requirements of this section.102.21EFFECTIVE DATE.This section is effective the day following final enactment.102.22    Sec. 109. Minnesota Statutes 2014, section 473.123, subdivision 2a, is amended to read:102.23    Subd. 2a. Terms. Following each apportionment of council districts, as provided 102.24under subdivision 3a, council members must be appointed from newly drawn districts as 102.25provided in subdivision 3a. Each council member, other than the chair, must reside in the 102.26council district represented. Each council district must be represented by one member of the 102.27council. The terms of members end with the term of the governor are staggered as follows: 102.28members representing even-numbered districts have terms ending the first Monday in 102.29January of the year ending in the numeral "7"; and members representing odd-numbered 102.30districts have terms ending the first Monday in January of the year ending in the numeral 102.31"5." Thereafter the term of each member is four years, with terms ending the first Monday 102.32in January, except that all terms expire on the effective date of the next apportionment. 102.33A member serves at the pleasure of the governor. A member shall continue to serve the 102.34member's district until a successor is appointed and qualified; except that, following each 102.35apportionment, the member shall continue to serve at large until the governor appoints 16 103.1council members, one from each of the newly drawn council districts as provided under 103.2subdivision 3a, to serve terms as provided under this section. The appointment to the 103.3council must be made by the first Monday in March of the year in which the term ends.103.4EFFECTIVE DATE; APPLICATION.This section is effective the day following 103.5final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 103.6Scott, and Washington.103.7    Sec. 110. Minnesota Statutes 2014, section 473.123, subdivision 3, is amended to read:103.8    Subd. 3. Membership; appointment; qualifications. (a) Sixteen members must be 103.9appointed by the governor from districts defined by this section. Each council member 103.10must reside in the council district represented. Each council district must be represented 103.11by one member of the council. Each Metropolitan Council member must be an elected city 103.12council member or mayor, or county commissioner. A Metropolitan Council member's 103.13office becomes vacant if the person appointed to that position ceases to be an elected city 103.14council member or mayor, or county commissioner.103.15(b) In addition to the notice required by section 
         15.0597, subdivision 4, notice of 103.16vacancies and expiration of terms must be published in newspapers of general circulation 103.17in the metropolitan area and the appropriate districts. The governing bodies of the statutory 103.18and home rule charter cities, counties, and towns having territory in the district for which 103.19a member is to be appointed must be notified in writing. The notices must describe the 103.20appointments process and invite participation and recommendations on the appointment.103.21(c) The governor shall create a nominating committee, composed A committee of 103.22seven metropolitan citizens appointed by the governor, to shall nominate persons for 103.23appointment to the council from districts. Three of the committee members must be local 103.24elected officials appointed by the Association of Metropolitan Municipalities, one must be a 103.25county commissioner appointed by the Association of Minnesota Counties, and three must 103.26be appointed by the governor. Following the submission of applications as provided under 103.27section 
         15.0597, subdivision 5, the nominating committee shall conduct public meetings, 103.28after appropriate notice, to accept statements from or on behalf of persons who have applied 103.29or been nominated for appointment and to allow consultation with and secure the advice 103.30of the public and local elected officials. The committee shall hold the meeting on each 103.31appointment in the district or in a reasonably convenient and accessible location in the part 103.32of the metropolitan area in which the district is located. The committee may consolidate 103.33meetings. Following the meetings, the committee shall submit to the governor a list of 103.34nominees for each appointment. The governor is not required to appoint from the list.104.1(d) Before making an appointment, the governor shall consult with all members of 104.2the legislature from the council district for which the member is to be appointed.104.3(e) Appointments to the council are subject to the advice and consent of the senate as 104.4provided in section 
         15.066.104.5(f) Members of the council must be appointed to reflect fairly the various 104.6demographic, political, and other interests in the metropolitan area and the districts.104.7(g) Members of the council must be persons knowledgeable about urban and 104.8metropolitan affairs.104.9(h) Any vacancy in the office of a council member shall immediately be filled 104.10for the unexpired term. In filling a vacancy, the governor may forgo the requirements 104.11of paragraph (c) if the governor has made appointments in full compliance with the 104.12requirements of this subdivision within the preceding 12 months.104.13EFFECTIVE DATE; APPLICATION.This section is effective the day following 104.14final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 104.15Scott, and Washington.104.16    Sec. 111. Minnesota Statutes 2014, section 473.123, subdivision 4, is amended to read:104.17    Subd. 4. Chair; appointment, officers, selection; duties and compensation. (a) 104.18The chair of the Metropolitan Council shall be appointed elected by the governor 16 104.19members of the council as the 17th voting member thereof by and with the advice and 104.20consent of the senate to serve at the pleasure of the governor council to represent the 104.21metropolitan area at large. Senate confirmation shall be as provided by section 
         15.066.104.22The chair of the Metropolitan Council shall, if present, preside at meetings of the 104.23council, have the primary responsibility for meeting with local elected officials, serve as 104.24the principal legislative liaison, present to the governor and the legislature, after council 104.25approval, the council's plans for regional governance and operations, serve as the principal 104.26spokesperson of the council, and perform other duties assigned by the council or by law.104.27(b) The Metropolitan Council shall elect other officers as it deems necessary for 104.28the conduct of its affairs for a one-year term. A secretary and treasurer need not be 104.29members of the Metropolitan Council. Meeting times and places shall be fixed by the 104.30Metropolitan Council and special meetings may be called by a majority of the members 104.31of the Metropolitan Council or by the chair. The chair and each Metropolitan Council 104.32member shall be reimbursed for actual and necessary expenses.104.33(c) Each member of the council shall attend and participate in council meetings 104.34and meet regularly with local elected officials and legislative members from the council 105.1member's district. Each council member shall serve on at least one division committee for 105.2transportation, environment, or community development.105.3(d) In the performance of its duties the Metropolitan Council may adopt policies 105.4and procedures governing its operation, establish committees, and, when specifically 105.5authorized by law, make appointments to other governmental agencies and districts.105.6EFFECTIVE DATE; APPLICATION.This section is effective the day following 105.7final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 105.8Scott, and Washington. The term of the chair of the Metropolitan Council serving on the 105.9effective date of this section ends on that date, but the chair may continue serving until 105.10a new chair is elected by the council under this section.105.11    Sec. 112. Minnesota Statutes 2014, section 473J.07, subdivision 3, is amended to read:105.12    Subd. 3. Compensation. The authority may compensate its members, other than the 105.13chair, as provided in section 
         15.0575. The chair shall receive, unless otherwise provided 105.14by other law, a salary in an amount fixed by the authority, and shall be reimbursed for 105.15reasonable expenses to the same extent as a member No members of the authority receive 105.16a salary.105.17    Sec. 113. Laws 2013, chapter 142, article 1, section 10, is amended to read:

105.18105.19Sec. 10. OFFICE OF ENTERPRISE TECHNOLOGY MN.IT SERVICES$2,431,000$2,431,000

105.20During the biennium ending June 30, 2015, 105.21the Office of Enterprise Technology MN.IT 105.22Services must not charge fees to a public 105.23noncommercial educational television 105.24broadcast station eligible for funding under 105.25Minnesota Statutes, chapter 129D, for 105.26access to the state broadcast infrastructure. 105.27If the access fees not charged to public 105.28noncommercial educational television 105.29broadcast stations total more than $400,000 105.30for the biennium, the office may charge for 105.31access fees in excess of these amounts.105.32The commissioner of Minnesota management 105.33and budget is authorized to provide cash 106.1flow assistance of up to $110,000,000 from 106.2the special revenue fund or other statutory 106.3general funds as defined in Minnesota 106.4Statutes, section 
         16A.671, subdivision 3, 106.5paragraph (a), to the Office of Enterprise 106.6Technology MN.IT Services for the purpose 106.7of managing revenue and expenditure 106.8differences during the initial phases of IT 106.9consolidation. These funds shall be repaid 106.10with interest by June 30, 2015 the end of the 106.11fiscal year 2015 closing period.106.12EFFECTIVE DATE.This section is effective the day following final enactment.106.13    Sec. 114. Laws 2015, chapter 3, section 4, is amended to read:106.14    Sec. 4. AGENCY HEAD SALARY FREEZE.106.15Notwithstanding Minnesota Statutes, section 
         15A.0815, subdivisions 1 and 5, the 106.16salary rate for positions listed in Minnesota Statutes, section 
         15A.0815, for positions 106.17appointed by the governor, may not be set at a salary rate in excess of the previous 106.18calendar year. The salary of the chair of the Metropolitan Council is $61,414, unless 106.19changed under the process in Minnesota Statutes, section 15A.0815, subdivision 5.106.20EFFECTIVE DATE.This section is effective the day following final enactment.106.21    Sec. 115. LIMIT ON AGENCY HEAD SALARY INCREASE.106.22The percentage increase in salary granted to an agency head listed in Minnesota 106.23Statutes, section 15A.0815, who is appointed by the governor may not exceed the lesser 106.24of: (1) the percentage increase in Minnesota median household income, as determined by 106.25the American Community Survey compiled by the United States Bureau of the Census, for 106.26the most recent 12-month period for which data is available; or (2) the percentage increase 106.27in the consumer price index, as determined by the United States Bureau of Economic 106.28Analysis, for the most recent 12-month period for which data is available. 106.29EFFECTIVE DATE.This section is effective the day following final enactment.106.30    Sec. 116. LEGISLATIVE SURROGACY COMMISSION.106.31    Subdivision 1.Membership.The Legislative Commission on Surrogacy shall 106.32consist of 15 members, appointed as follows:107.1(1) three members of the senate appointed by the senate majority leader;107.2(2) three members of the senate appointed by the senate minority leader;107.3(3) three members of the house of representatives appointed by the speaker of the 107.4house of representatives;107.5(4) three members of the house of representatives appointed by the house of 107.6representatives minority leader;107.7(5) the commissioner of human services or the commissioner's designee;107.8(6) the commissioner of health or the commissioner's designee; and107.9(7) a family court referee appointed by the chief justice of the state Supreme Court.107.10Appointments must be made by June 1, 2015.107.11    Subd. 2.Chair.The commission shall elect a chair from among its members.107.12    Subd. 3.Meetings.The ranking majority member of the commission who is 107.13appointed by the senate majority leader shall convene the first meeting by July 1, 2015. 107.14The commission shall have at least six meetings but may not have more than ten meetings.107.15    Subd. 4.Conflict of interest.A commission member may not participate in or 107.16vote on a decision of the commission in which the member has either a direct or indirect 107.17personal financial interest. A witness at a public meeting of the commission must disclose 107.18any financial conflict of interest.107.19    Subd. 5.Duties.The commission shall develop recommendations on public policy 107.20and laws regarding surrogacy. To develop the recommendations, the commission shall 107.21study surrogacy through public hearings, research, and deliberation. Topics for study 107.22include, but are not limited to:107.23(1) potential health and psychological effects and benefits on women who serve 107.24as surrogates;107.25(2) potential health and psychological effects and benefits on children born of 107.26surrogates;107.27(3) business practices of the fertility industry, including attorneys, brokers, and 107.28clinics;107.29(4) considerations related to different forms of surrogacy;107.30(5) considerations related to the potential exploitation of women in surrogacy 107.31arrangements;107.32(6) contract law implications when a surrogacy contract is breached;107.33(7) potential conflicts with statutes governing private adoption and termination 107.34of parental rights;108.1(8) potential for legal conflicts related to third-party reproduction, including conflicts 108.2between or amongst the surrogate mother, the intended parents, the child, insurance 108.3companies, and medical professionals;108.4(9) public policy determinations of other jurisdictions with regard to surrogacy; and108.5(10) information to be provided to a child born of a surrogate about the child's 108.6biological and gestational parents.108.7    Subd. 6.Reporting.The commission must submit a report including its 108.8recommendations and may draft legislation to implement its recommendations to the chairs 108.9and ranking minority members of the legislative committees with primary jurisdiction 108.10over health and judiciary in the house and senate by December 15, 2015. On topics where 108.11the commission fails to reach consensus, a majority and minority report shall be issued.108.12    Subd. 7.Staffing.The Legislative Coordinating Commission shall provide staffing 108.13and administrative support to the commission.108.14    Subd. 8.Expiration.The commission expires the day after submitting the report 108.15required under subdivision 6.108.16EFFECTIVE DATE.This section is effective the day following final enactment.108.17    Sec. 117. SOCCER STADIUM.108.18No state funds may be appropriated or tax expenditures used to fund the construction 108.19of a new major league soccer stadium. The state may not incur debt of the state to fund 108.20construction of a new major league soccer stadium.108.21    Sec. 118. LIMIT ON INCREASE IN MANAGERIAL COMPENSATION.108.22During the biennium ending June 30, 2017, an employee covered by the managerial 108.23plan in Minnesota Statutes, section 43A.18, subdivision 3, may not be granted a 108.24percentage increase in annual salary that exceeds the lesser of: (1) the percentage increase 108.25in Minnesota median household income, as determined by the American Community 108.26Survey compiled by the United States Bureau of the Census, for the most recent 12-month 108.27period for which data is available; or (2) the percentage increase in the consumer price 108.28index, as determined by the United States Bureau of Economic Analysis, for the most 108.29recent 12-month period for which data is available.108.30    Sec. 119. LIMIT ON EXPENDITURES FOR ADVERTISING.108.31During the biennium ending June 30, 2017, an executive branch agency's spending 108.32on advertising and promotions may not exceed 90 percent of the amount the agency 108.33spent on advertising and promotions during the biennium ending June 30, 2015. The 109.1commissioner of management and budget must ensure compliance with this limit, and 109.2may issue guidelines and policies to executive agencies. The commissioner may forbid 109.3an agency from engaging in advertising as the commissioner determines is necessary to 109.4ensure compliance with this section. This section does not apply to the Minnesota Lottery 109.5or Explore Minnesota Tourism. Spending during the biennium ending June 30, 2017, on 109.6advertising relating to a declared emergency, an emergency, or a disaster, as those terms 109.7are defined in Minnesota Statutes, section 12.03, is excluded for purposes of this section.109.8    Sec. 120. PARKING RAMP FINANCING.109.9The debt service on the design and construction costs allocated to the parking garage 109.10located on the block bounded by Sherburne Avenue on the north, Park Street on the west, 109.11University Avenue on the south, and North Capitol Boulevard on the east must be paid 109.12for exclusively by fees charged to persons parking in that parking garage. No fees may 109.13be charged to members of the public parking in spaces designated for persons with a 109.14disability parking certificate.109.15    Sec. 121. METROPOLITAN COUNCIL APPOINTMENTS; IMMEDIATE 109.16TRANSITION TO STAGGERED TERMS.109.17For members serving on the Metropolitan Council on the effective date of this 109.18section, other than the chair, members representing even-numbered districts shall serve 109.19terms ending the first Monday in January 2019, and members representing odd-numbered 109.20districts shall serve terms ending the first Monday in January 2017. Thereafter the term of 109.21each member is four years, with terms ending the first Monday in January.109.22EFFECTIVE DATE; APPLICATION.This section is effective the day following 109.23final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 109.24Scott, and Washington.109.25    Sec. 122. REPORT ON AGENCY CHIEF INFORMATION OFFICERS.109.26The chief information officer of MN.IT must report to the legislature by January 15, 109.272016, on reduction in the number of chief information officers (CIOs) in state agencies. 109.28The report must include the number of CIOs on July 1, 2015, the number on January 109.2915, 2016, and plans to reduce that number.109.30    Sec. 123. TRANSITION.109.31(a) Members of an ethnic council specified in new Minnesota Statutes, section 109.3215.0145, on July 1, 2015, continue to serve on the council until the end of their current 110.1term. However, if a member of a council has served eight years or more on the council 110.2at any time before December 31, 2015, the term of that member expires December 31, 110.32015. If a council has more members on July 1, 2015, than is provided for by Minnesota 110.4Statutes, section 15.0145, positions on the council shall not be filled until the expiration of 110.5a term results in fewer members on the council than provided for in Minnesota Statutes, 110.6section 15.0145. Membership qualifications newly specified in Minnesota Statutes, section 110.715.0145, must be complied with as soon as possible when terms of current members expire.110.8(b) The Legislative Coordinating Commission must appoint an executive director 110.9for each council no later than November 15, 2015. An incumbent executive director of a 110.10council may apply to be appointed by the Legislative Coordinating Commission but, if 110.11not selected, the employment of the incumbent ends when the Legislative Coordinating 110.12Commission appoints a new executive director, or on another date determined by the 110.13Legislative Coordinating Commission. Other council staff are transferred to employment 110.14with the reformulated councils specified in Minnesota Statutes, section 15.0145.110.15    Sec. 124. REVISOR'S INSTRUCTION.110.16(a) The revisor of statutes shall renumber the subdivisions in Minnesota Statutes, 110.17section 240.01, to put the definitions contained in that section in alphabetical order.110.18(b) The revisor of statutes shall correct any cross-references in Minnesota Statutes 110.19and Minnesota Rules as a result of the renumbering in paragraph (a).110.20(c) In the next and subsequent edition of Minnesota Statutes, the Revisor of Statutes 110.21shall substitute a reference to section 6.481 for each reference to section 6.48.110.22    Sec. 125. REVISOR INSTRUCTION.110.23(a) In the next and subsequent editions of Minnesota Statutes, the revisor of statutes 110.24shall substitute the names of councils as follows in each place where the names occur:110.25(1) Minnesota African Heritage Council, in place of Council on Black Minnesotans; 110.26and 110.27(2) Minnesota Council on Latino Affairs, in place of Council on Affairs of 110.28Chicano/Latino People.110.29(b) The revisor of statutes shall change cross-references to sections 3.9223, 3.9225, 110.30and 3.9226, with Minnesota Statutes, section 15.0145, and make changes necessary to 110.31correct punctuation, grammar, or sentence structure.110.32    Sec. 126.  REPEALER.111.1(a) Minnesota Statutes 2014, sections 10A.25, subdivisions 1, 2, 2a, 3, 3a, 5, and 10; 111.210A.255, subdivisions 1 and 3; 10A.27, subdivision 11; 10A.30; 10A.31, subdivisions 1, 111.33, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b, and 11; 10A.315; 10A.321; 10A.322, subdivisions 111.41 and 2; 10A.323; and 10A.324, subdivisions 1 and 3, and Minnesota Rules, parts 111.54503.1400, subparts 2, 3, 5, 6, 7, 8, and 9; and 4503.1450, are repealed. This paragraph 111.6is effective July 1, 2015, and applies to elections held on or after that date. Amounts 111.7designated under section 10A.31 on income tax and property tax refund returns filed after 111.8June 30, 2015, are not effective and remain in the general fund.111.9(b) Minnesota Statutes 2014, sections 3.886; 6.48; 349A.07, subdivision 6; and 111.10375.23, are repealed.111.11(c) Minnesota Statutes 2014, section 240.01, subdivisions 12 and 23, are repealed.111.12(d) Minnesota Statutes 2014, sections 3.9223; 3.9225; and 3.9226, subdivisions 1, 111.132, 3, 4, 5, 6, and 7, are repealed.