1.1 	A bill for an act
1.2 	relating to state government; making certain supplemental appropriations and 
1.3 	reductions; canceling 80 percent of the senate carryforward account to the 
1.4 	general fund; requiring savings from reducing salaries in the executive branch, 
1.5 	instituting a hiring freeze, and limiting nonessential travel and advertising; 
1.6 	requiring receipts from examinations by the state auditor be credited to the 
1.7 	general fund; transferring funds in the state auditor enterprise fund to the 
1.8 	general fund; suspending the public subsidy program for state elections to 
1.9 	the end of fiscal year 2017; requiring the legislative auditor to participate in 
1.10 	preparing fiscal notes, revenue estimates, and local impact notes; requiring 
1.11 	county payments and political subdivision payments for state auditor costs be 
1.12 	deposited in the general fund; requiring a centralized tracking list of agency 
1.13 	projects over $100,000; limiting fee or fine increase by an agency to ten percent 
1.14 	in a biennium; prohibiting nonprofits from political activity under certain 
1.15 	circumstances; requiring disclosure to the legislative auditor on potential federal 
1.16 	penalties for the purchase or sale of state bonds; requiring legislature be notified 
1.17 	of certain costs in state construction projects; requiring approval of the entire 
1.18 	legislature for certain state building projects; requiring termination of state grant 
1.19 	agreement if recipient is convicted of a criminal offense related to the grant 
1.20 	agreement; prohibiting fees for general fund grant administration; requiring 
1.21 	audit of delegated authority by the commissioner of administration; adding a 
1.22 	provision for targeted group business; limiting number of full-time employees; 
1.23 	changing provisions in the Veterans Preference Act; changing a provision for 
1.24 	the IRRRB; defining "killed in the line of duty"; changing payments from 
1.25 	the manufactured home relocation trust fund; requiring a public hearing if a 
1.26 	proposed interim ordinance deals with housing; modifying health insurance 
1.27 	provisions related to school districts and certain self-insurance pools; requiring 
1.28 	reports; designating parking ramp financing; establishing Legislative Surrogacy 
1.29 	Commission; requiring a study for collecting certain fees;amending Minnesota 
1.30 	Statutes 2014, sections 3.971, by adding a subdivision; 3.98; 3.987, subdivision 
1.31 	1; 6.56, subdivision 2; 6.581, subdivision 4; 16A.103, by adding a subdivision; 
1.32 	16A.1283; 16B.335, subdivision 1; 16C.03, subdivision 16; 16C.16, subdivision 
1.33 	5; 298.22, subdivision 1; 299A.41, subdivision 3; 327C.095, subdivision 13; 
1.34 	353.01, subdivision 43; 462.355, subdivision 4; 471.6161, subdivision 8; 
1.35 	471.617, subdivision 2; Minnesota Statutes 2015 Supplement, sections 6.481, 
1.36 	subdivision 6; 197.46; Laws 2015, chapter 77, article 1, section 11, subdivision 
1.37 	4; proposing coding for new law in Minnesota Statutes, chapters 16A; 16B; 43A; 
1.38 	repealing Minnesota Statutes 2014, sections 3.886; 6.581, subdivision 1.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	APPROPRIATIONS

2.4	Section 1. APPROPRIATIONS
 	
2.5 	The sums shown in the columns marked "Appropriations" are added to or subtracted 
2.6 	from the appropriations in Laws 2015, chapter 77, article 1, to the agencies and for the 
2.7 	purposes specified in this act. The appropriations are from the general fund, or another 
2.8 	named fund, and are available for the fiscal years indicated for each purpose. The figures 
2.9 	"2016" and "2017" used in this act mean that the addition to the appropriation listed under 
2.10 	them are available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively.

2.11				APPROPRIATIONS
	
2.12				Available for the Year
	
2.13				Ending June 30
	
2.14					2016
		2017

2.15	Sec. 2. LEGISLATURE
 	$
	-0-
	$
	185,000
	
2.16 	Eighty percent of the amount in the senate 
2.17 	carryforward account cancels to the general 
2.18 	fund on July 1, 2016.
2.19 	$318,000 is appropriated to the Office of the 
2.20 	Legislative Auditor for new duties related 
2.21 	to fiscal notes, revenue estimates, and local 
2.22 	impact notes.
2.23 	The appropriation to the Legislative 
2.24 	Coordinating Commission for the fiscal 
2.25 	year ending June 30, 2017, is reduced by 
2.26 	$133,000.

2.27	Sec. 3. STATE AUDITOR
 	$
	-0-
	$
	6,951,000

2.28	Sec. 4. MN.IT SERVICES
 	$
	-0-
	$
	500,000
	
2.29 	This appropriation is for a study of enhanced 
2.30 	cybersecurity across state government. This 
2.31 	is a onetime appropriation.

3.1	Sec. 5. ADMINISTRATION
 	$
	-0-
	$
	148,000
	
3.2 	This appropriation is for continued 
3.3 	implementation of the state's Olmstead plan.

3.4
3.5	Sec. 6. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	-0-
	$
	(318,000)
	
3.6 	To the extent possible, the appropriation 
3.7 	reduction in this section must be 
3.8 	implemented through savings achieved in 
3.9 	not administering the fiscal note process.

3.10	Sec. 7. REVENUE
 					
3.11 	$1,000,000 of money previously appropriated 
3.12 	to the department for fiscal year 2017 must 
3.13 	be used for efforts to identify and reject 
3.14 	attempted tax refund fraud.

3.15	Sec. 8. HUMAN RIGHTS
 					
3.16 	Notwithstanding any law to the contrary, 
3.17 	federal funds received by the Department of 
3.18 	Human Rights during the biennium ending 
3.19 	June 30, 2017, must be deposited in the 
3.20 	state general fund, to the extent permitted 
3.21 	by agreements with the federal government. 
3.22 	If agreements with the federal government 
3.23 	do not permit federal funds received by the 
3.24 	department to be deposited in the state general 
3.25 	fund, the general fund appropriation to the 
3.26 	department for the biennium ending June 30, 
3.27 	2017, is reduced by the amount of the federal 
3.28 	funds received during the biennium.

3.29	Sec. 9. VETERANS AFFAIRS
 	$
	-0-
	$
	500,000
	
3.30 	$100,000 is for a grant to Eagle's Healing Nest 
3.31 	for assisting veterans who are reintegrating 
3.32 	back into civilian and family life.
4.1 	$300,000 is for the state soldiers assistance 
4.2 	fund, for housing assistance and health 
4.3 	assistance to veterans.
4.4 	$100,000 is to support nonprofit organizations 
4.5 	in providing rent subsidies for housing for 
4.6 	veterans and their families at the Cottages 
4.7 	of Anoka.
4.8 	The appropriations in this section are 
4.9 	onetime.

4.10	Sec. 10. MILITARY AFFAIRS
 	$
	1,562,000
	$
	248,000
	
4.11 	This appropriation is for security 
4.12 	improvements at National Guard facilities.

4.13 	Sec. 11. SAVINGS; APPROPRIATION REDUCTION FOR EXECUTIVE 
4.14 	AGENCIES.
 4.15 	(a) The commissioner of management and budget must reduce general fund 
4.16 	appropriations to executive agencies, including constitutional offices for agency operations 
4.17 	for the biennium ending June 30, 2017, by $6,519,000. The Minnesota State Colleges 
4.18 	and Universities system is not an executive agency for purposes of this section. The 
4.19 	commissioner must not reduce appropriations to the Department of Veterans Affairs, 
4.20 	Military Affairs, Human Services, Corrections, or Public Safety. To the greatest extent 
4.21 	possible, these reductions must come from savings provided by the cost-savings measures 
4.22 	contained in this act, including:
4.23 	(1) reductions in salaries of commissioners and deputy and assistant commissioners;
4.24 	(2) hiring freeze; and
4.25 	(3) reductions in agency expenditures on nonessential travel and advertising.
4.26 	(b) The commissioner of management and budget must report to the chairs 
4.27 	and ranking minority members of the senate Finance Committee and the house of 
4.28 	representatives Ways and Means and Finance Committees regarding the amount of 
4.29 	reductions in spending by each agency under this section.
4.30 	(c) Reductions made in fiscal year 2017 must be reflected as reductions in agency 
4.31 	base budgets for fiscal years 2018 and 2019.

4.32 	Sec. 12. HIRING FREEZE.
 5.1 		Subdivision 1.Application of freeze. A state employer may not hire any permanent 
5.2 	or temporary employees before July 1, 2017. For purposes of this section, "state employer" 
5.3 	means state elected officials, departments, boards, agencies, commissions, offices, and 
5.4 	other hiring entities in the executive and legislative branches of state government, as those 
5.5 	branches are defined in Minnesota Statutes, section 43A.02. State employer does not 
5.6 	include the Minnesota State Colleges and Universities system.
5.7 		Subd. 2.Freeze exceptions. (a) Subdivision 1 does not apply to:
5.8 	(1) a student in a work-study position; or
5.9 	(2) a position that is necessary to perform essential government services.
5.10 	(b) A determination under paragraph (a), clause (2), must be made by the speaker 
5.11 	of the house with respect to house employees, the chair of the Committee on Rules 
5.12 	and Administration with respect to senate employees, and the Legislative Coordinating 
5.13 	Commission with respect to its employees, by a constitutional officer with respect to 
5.14 	employees of the constitutional office, and by the governor with respect to any other 
5.15 	employee covered by this section. Exceptions granted under paragraph (a), clause (2), 
5.16 	must be reported monthly by the entity granting the exception. The reports must be 
5.17 	published on the entity's Web site, and copies must be provided to the chairs of the house 
5.18 	of representatives Ways and Means and senate finance committees and to the Legislative 
5.19 	Reference Library.

5.20 	Sec. 13. NO NONESSENTIAL TRAVEL.
 5.21 	During the biennium ending June 30, 2017, state funds may not be used to pay 
5.22 	for nonessential travel for employees of executive agencies. The governor must report 
5.23 	any travel monthly on the governor's Web site, and by providing copies to the chairs 
5.24 	of the house of representatives Ways and Means and senate finance committees and to 
5.25 	the Legislative Reference Library.

5.26 	Sec. 14. LIMIT ON EXPENDITURES FOR ADVERTISING.
 5.27 	During the fiscal year ending June 30, 2017, an executive branch agency's spending 
5.28 	on advertising and promotions may not exceed 90 percent of the amount the agency 
5.29 	spent on advertising and promotions during the fiscal year ending June 30, 2016. The 
5.30 	commissioner of management and budget must ensure compliance with this limit, and 
5.31 	may issue guidelines and policies to executive agencies. The commissioner may forbid 
5.32 	an agency from engaging in advertising as the commissioner determines is necessary to 
5.33 	ensure compliance with this section. This section does not apply to the Minnesota Lottery 
5.34 	or Explore Minnesota Tourism. Spending during the biennium ending June 30, 2017, on 
6.1 	advertising relating to a declared emergency, an emergency, or a disaster, as those terms 
6.2 	are defined in Minnesota Statutes, section 12.03, is excluded for purposes of this section.

6.3 	Sec. 15. EXECUTIVE AGENCY MANAGERS.
 6.4 	The salaries for the heads of all departments or agencies listed in Minnesota 
6.5 	Statutes, section 15.06, subdivision 1, are reduced by five percent. The salaries for 
6.6 	all deputy commissioners and assistant commissioners of agencies listed in Minnesota 
6.7 	Statutes, section 15.06, subdivision 1, are reduced by five percent. The commissioner 
6.8 	of management and budget must reduce the number of deputy commissioner and 
6.9 	assistant commissioner positions in agencies listed in Minnesota Statutes, section 15.06, 
6.10 	subdivision 1, by five percent.

6.11 	Sec. 16. TRANSITION.
 6.12 	Notwithstanding any law to the contrary, receipts from examinations conducted by 
6.13 	the state auditor must be credited to the general fund beginning July 1, 2016. Amounts in 
6.14 	the state auditor enterprise fund are transferred to the general fund on July 1, 2016.

6.15 	Sec. 17. PUBLIC SUBSIDY PROGRAM SUSPENDED.
 6.16 	Notwithstanding any law to the contrary, the public subsidy program for state 
6.17 	elections does not apply for the remainder of the biennium ending June 30, 2017. During 
6.18 	this period:
6.19 	(1) no appropriations or transfers shall be made from the general fund to the state 
6.20 	elections campaign account;
6.21 	(2) no public subsidy payments shall be made from the state elections campaign 
6.22 	account for any general or special election; and
6.23 	(3) any written agreements made by a candidate as a condition of receiving a 
6.24 	payment are not effective for that election.
6.25 	Amounts designated on income tax and property tax refund returns filed after the effective 
6.26 	date of this section and before June 30, 2017, are not effective and remain in the general 
6.27 	fund.

6.28 	ARTICLE 2
6.29 	STATE GOVERNMENT

6.30 	Section 1. Minnesota Statutes 2014, section 3.971, is amended by adding a subdivision 
6.31 	to read:
7.1 		Subd. 8a.Fiscal notes and revenue estimates. The legislative auditor shall 
7.2 	participate in the fiscal note and revenue estimate process in the manner described in 
7.3 	section 3.98. Authority of the legislative auditor and duties of employees and entities 
7.4 	under section 3.978, subdivision 2, apply to the legislative auditor's work on fiscal notes 
7.5 	and revenue estimates.

7.6 	Sec. 2. Minnesota Statutes 2014, section 3.98, is amended to read:
7.7 	3.98 FISCAL NOTES AND REVENUE ESTIMATES.
7.8 		Subdivision 1.Preparation. The head or chief administrative officer of each 
7.9 	department or agency of the state government, including the Supreme Court, shall prepare 
7.10 	a fiscal note at the request of the chair of the standing committee to which a bill has been 
7.11 	referred, or the chair of the house of representatives Ways and Means Committee, or the 
7.12 	chair of the senate Committee on Finance.
7.13 	For purposes of this subdivision, "Supreme Court" includes all agencies, committees, 
7.14 	and commissions supervised or appointed by the state Supreme Court or the state court 
7.15 	administrator. (a) The chair of the standing committee to which a bill has been referred, 
7.16 	the chair of the house of representatives Ways and Means Committee, and the chair 
7.17 	of the senate Finance Committee may request a fiscal note. The chair of the house of 
7.18 	representatives or senate Tax Committee may request a revenue estimate. A request for a 
7.19 	fiscal note or revenue estimate must be filed with the legislative auditor.
7.20 	(b) Upon receiving a request for a fiscal note or revenue estimate, the legislative 
7.21 	auditor shall request appropriate agencies, offices, boards, or commissions in the executive, 
7.22 	judicial, or legislative branch to provide the legislative auditor with an analysis of the 
7.23 	financial and personnel impacts of the bill. The analysis must include a clear statement 
7.24 	of the assumptions used in the analysis and the extent to which alternative assumptions 
7.25 	were considered. Agencies, offices, boards, or commissions shall, after receiving a request 
7.26 	from the legislative auditor, submit the analysis in the time and manner requested by the 
7.27 	auditor. The legislative auditor may require agencies, offices, boards, or commissions to 
7.28 	use the fiscal note tracking system developed and maintained by the commissioner of 
7.29 	management and budget for submitting fiscal note information and analysis.
7.30 	(c) The legislative auditor shall review the analysis submitted by agencies, offices, 
7.31 	boards, or commissions and assess the reasonableness of the analysis, particularly the 
7.32 	reasonableness of the assumptions used in the analysis. The auditor may require agencies, 
7.33 	offices, boards, or commissions to resubmit their analysis under new assumptions or 
7.34 	calculation parameters as defined by the auditor.
8.1 	(d) When the legislative auditor accepts the final analysis from all relevant agencies, 
8.2 	offices, boards, or commissions, the legislative auditor shall deliver the completed 
8.3 	fiscal note or revenue estimate. The note or estimate must contain the final analysis 
8.4 	and assumptions submitted to the legislative auditor by agencies, offices, boards, or 
8.5 	commissions, and a statement by the legislative auditor as to whether the legislative 
8.6 	auditor agrees with the final analysis and assumptions. The auditor must state the 
8.7 	reasons for any disagreements and may offer alternative analysis and assumptions for 
8.8 	consideration by the legislature. If the legislative auditor deems these disagreements 
8.9 	sufficiently large, the legislative auditor may submit an unofficial "unapproved" fiscal note 
8.10 	to the legislature for public consideration of both the analysis of the agencies, offices, 
8.11 	boards, or commissions, and of the legislative auditor.
8.12 		Subd. 2.Contents. (a) The A fiscal note, where possible, shall:
8.13 	(1) cite the effect in dollar amounts;
8.14 	(2) cite the statutory provisions affected;
8.15 	(3) estimate the increase or decrease in revenues or expenditures;
8.16 	(4) include the costs which may be absorbed without additional funds;
8.17 	(5) include the assumptions used in determining the cost estimates; and
8.18 	(6) specify any long-range implication.
8.19 	(b) The A revenue estimate must estimate the effect of a bill on state tax revenues.
8.20 	(c) A fiscal note or revenue estimate may comment on technical or mechanical 
8.21 	defects in the bill but shall express no opinions concerning the merits of the proposal.
8.22 		Subd. 3.Distribution. A copy of the a fiscal note shall be delivered to the chair 
8.23 	of the Ways and Means Committee of the house of representatives, the chair of the 
8.24 	Finance Committee of the senate, the chair of the standing committee to which the bill 
8.25 	has been referred, to the chief author of the bill and to the commissioner of management 
8.26 	and budget. A copy of a revenue estimate shall be delivered to the chairs of the house 
8.27 	of representatives and senate tax committees, to the chief author of the bill, and to the 
8.28 	commissioner of revenue.
8.29 		Subd. 4.Uniform procedure. The commissioner of management and budget 
8.30 	legislative auditor shall prescribe a uniform procedure to govern the departments and 
8.31 	agencies of the state in complying with the requirements of this section.
8.32 		Subd. 5.Tracking system. The commissioner of management and budget shall 
8.33 	provide the legislative auditor with manuals and other documentation requested by the 
8.34 	auditor for the fiscal note tracking system that is maintained by the commissioner.

8.35 	Sec. 3. Minnesota Statutes 2014, section 3.987, subdivision 1, is amended to read:
9.1 		Subdivision 1.Local impact notes. The commissioner of management and budget 
9.2 	legislative auditor shall coordinate the development of a local impact note for any proposed 
9.3 	legislation introduced after June 30, 1997, upon request of the chair or the ranking minority 
9.4 	member of either legislative Tax, Finance, or Ways and Means Committee. Upon receipt 
9.5 	of a request to prepare a local impact note, the commissioner auditor must notify the 
9.6 	authors of the proposed legislation that the request has been made. The local impact note 
9.7 	must be made available to the public upon request. If the action is among the exceptions 
9.8 	listed in section 3.988, a local impact note need not be requested nor prepared. The 
9.9 	commissioner auditor shall make a reasonable and timely estimate of the local fiscal impact 
9.10 	on each type of political subdivision that would result from the proposed legislation. The 
9.11 	commissioner of management and budget auditor may require any political subdivision or 
9.12 	the commissioner of an administrative agency of the state to supply in a timely manner 
9.13 	any information determined to be necessary to determine local fiscal impact. The political 
9.14 	subdivision, its representative association, or commissioner shall convey the requested 
9.15 	information to the commissioner of management and budget auditor with a signed 
9.16 	statement to the effect that the information is accurate and complete to the best of its ability. 
9.17 	The political subdivision, its representative association, or commissioner, when requested, 
9.18 	shall update its determination of local fiscal impact based on actual cost or revenue figures, 
9.19 	improved estimates, or both. Upon completion of the note, the commissioner auditor must 
9.20 	provide a copy to the authors of the proposed legislation and to the chair and ranking 
9.21 	minority member of each committee to which the proposed legislation is referred.

9.22 	Sec. 4. Minnesota Statutes 2015 Supplement, section 6.481, subdivision 6, is amended 
9.23 	to read:
9.24 		Subd. 6.Payments to state auditor. A county audited by the state auditor must 
9.25 	pay the state auditor for the costs and expenses of the audit. If the state auditor makes 
9.26 	additional examinations of a county whose audit is performed by a CPA firm, the county 
9.27 	must pay the auditor for the cost of these examinations. Payments must be deposited in 
9.28 	the state auditor enterprise general fund.

9.29 	Sec. 5. Minnesota Statutes 2014, section 6.56, subdivision 2, is amended to read:
9.30 		Subd. 2.Billings by state auditor. Upon the examination of the books, records, 
9.31 	accounts, and affairs of any political subdivision, as provided by law, such political 
9.32 	subdivision shall be liable to the state for the total cost and expenses of such examination, 
9.33 	including the salaries paid to the examiners while actually engaged in making such 
9.34 	examination. The state auditor may bill such political subdivision periodically for service 
10.1 	rendered and the officials responsible for approving and paying claims are authorized to 
10.2 	pay said bill promptly. Said payments shall be without prejudice to any defense against 
10.3 	said claims that may exist or be asserted. The state auditor enterprisegeneral fund shall be 
10.4 	credited with all collections made for any such examinations, including interest payments 
10.5 	made pursuant to subdivision 3.

10.6 	Sec. 6. Minnesota Statutes 2014, section 6.581, subdivision 4, is amended to read:
10.7 		Subd. 4.Reports to legislature. At least 30 days before implementing increased 
10.8 	charges for examinations, the state auditor must report the proposed increases to the 
10.9 	chairs and ranking minority members of the committees in the house of representatives 
10.10 	and the senate with jurisdiction over the budget of the state auditor. By January 15 of 
10.11 	each odd-numbered year, the state auditor must report to the chairs and ranking minority 
10.12 	members of the legislative committees and divisions with primary jurisdiction over the 
10.13 	budget of the state auditor a summary of the state auditor enterprise fund anticipated 
10.14 	revenues, and expenditures  related to examinations for the biennium ending June 30 
10.15 	of that year. The report must also include for the biennium the number of full-time 
10.16 	equivalents paid by the fund in the audit practice division, any audit rate changes stated as 
10.17 	a percentage, the number of audit reports issued, and the number of counties audited.

10.18 	Sec. 7. [16A.0565] CENTRALIZED TRACKING LIST OF AGENCY 
10.19 	PROJECTS.
10.20 		Subdivision 1.Centralized tracking. The commissioner must maintain a 
10.21 	centralized tracking list of new agency projects estimated to cost more than $100,000 that 
10.22 	are paid for from the general fund.
10.23 		Subd. 2.New agency project. (a) For purposes of this section a "new agency 
10.24 	project" means:
10.25 	(1) any new agency program or activity with more than $100,000 in funding from 
10.26 	the general fund; and
10.27 	(2) any preexisting agency program or activity with an increase of $100,000 or more 
10.28 	above the base level in general fund support. 
10.29 	(b) For purposes of this section, a new agency project does not include:
10.30 	(1) general aid programs for units of local government, or entitlement programs 
10.31 	providing assistance to individuals; or
10.32 	(2) a new program or activity or increase in a program or activity that is mandated 
10.33 	by law.
11.1 		Subd. 3.Transparency requirements. The centralized tracking list maintained by 
11.2 	the commissioner must report the following for each new agency project:
11.3 	(1) the name of the agency and title of the project;
11.4 	(2) a brief description of the project and its purposes;
11.5 	(3) the extent to which the project has been implemented; and
11.6 	(4) the amount of money that has been spent on the project.
11.7 		Subd. 4.Timing and reporting. The commissioner must display the information 
11.8 	required by subdivision 3 on the department's Web site. The list shall be maintained in a 
11.9 	widely available and common document format such as a spreadsheet that does not require 
11.10 	any new costs to develop. The commissioner must report this information to the chairs of 
11.11 	the house of representatives Ways and Means Committee and senate Finance Committee 
11.12 	quarterly, and must update the information on the Web site at least quarterly.

11.13 	Sec. 8. Minnesota Statutes 2014, section 16A.103, is amended by adding a subdivision 
11.14 	to read:
11.15 		Subd. 1h.Revenue uncertainty information. The commissioner shall report 
11.16 	to the legislature within 14 days of a forecast  under subdivision 1 on uncertainty in 
11.17 	Minnesota's general fund revenue projections. The report shall present information on: (1) 
11.18 	the estimated range of forecast error for revenues; and (2) the data and methods used to 
11.19 	construct those measurements.

11.20 	Sec. 9. [16A.104] FEDERAL FUNDS REPORT.
11.21 	The commissioner must report to the chairs and ranking minority members of the 
11.22 	house of representatives Ways and Means and senate Finance Committee  on receipt of 
11.23 	federal funds by the state. The report must be submitted with the governor's detailed 
11.24 	operating budget in accordance with section 16A.11, subdivision 1, in an odd-numbered 
11.25 	year and within ten days prior to the start of the regular session in accordance with section 
11.26 	3.3005, subdivision 2, in an even-numbered year. The report must include the total amount 
11.27 	of federal funds received by the state in the fiscal year ending the prior June 30 and the 
11.28 	total amount of federal funds anticipated to be received by the state in the current fiscal 
11.29 	year. For each category of federal funding, the report must list:
11.30 	(1) the name of the federal grant or federal funding source, the federal agency 
11.31 	providing the funding, a federal identification number, and a brief description of the 
11.32 	purpose of the federal funding;
12.1 	(2) the amount of federal funding the state received through that grant or source in 
12.2 	the fiscal year ending the prior June 30 and the total amount of federal funds anticipated to 
12.3 	be received by the state in the current fiscal year;
12.4 	(3) if there is a federal maintenance-of-effort requirement associated with the funding;
12.5 	(4) the number of full-time equivalent state employees needed to implement the 
12.6 	federal funding; and
12.7 	(5) the amount of state funds spent, as a match or otherwise, in conjunction with 
12.8 	receipt of the federal funding in the fiscal year ending the prior June 30, and the amount of 
12.9 	state funds anticipated to be spent in the current fiscal year.

12.10 	Sec. 10. Minnesota Statutes 2014, section 16A.1283, is amended to read:
12.11 	16A.1283 LEGISLATIVE APPROVAL REQUIRED FOR FEES.
12.12 	(a) Notwithstanding any law to the contrary, an executive branch state agency may 
12.13 	not impose a new fee or increase an existing fee unless the new fee or increase is approved 
12.14 	by law.  An agency must not propose a fee or fine increase of more than ten percent 
12.15 	in a biennium over the same fee or fine in law at the start of the same biennium. For 
12.16 	purposes of this section, a fee is any charge for goods, services, regulation, or licensure, 
12.17 	and, notwithstanding paragraph (b), clause (3), includes charges for admission to or for 
12.18 	use of public facilities owned by the state.
12.19 	(b) This section does not apply to:
12.20 	(1) charges billed within or between state agencies, or billed to federal agencies;
12.21 	(2) the Minnesota State Colleges and Universities system;
12.22 	(3) charges for goods and services provided for the direct and primary use of a 
12.23 	private individual, business, or other entity;
12.24 	(4) charges that authorize use of state-owned lands and minerals administered by 
12.25 	the commissioner of natural resources by the issuance of leases, easements, cooperative 
12.26 	farming agreements, and land and water crossing licenses and charges for sales of 
12.27 	state-owned lands administered by the commissioner of natural resources; or
12.28 	(5) state park fees and charges established by commissioner's order.
12.29 	(c) An executive branch agency may reduce a fee that was set by rule before July 
12.30 	1, 2001, without legislative approval. Chapter 14 does not apply to fee reductions under 
12.31 	this paragraph.

12.32 	Sec. 11. [16A.6415] FEDERAL PENALTIES RELATING TO PURCHASE OR 
12.33 	SALE OF STATE BONDS.
13.1 	(a) The commissioner must disclose to the legislative auditor any situation that the 
13.2 	commissioner believes potentially could subject the state or a state agency to payment of a 
13.3 	penalty to the federal government in connection with the purchase or sale of bonds issued 
13.4 	by the state. This disclosure must be made within ten days of the commissioner learning 
13.5 	of the situation that has potential to subject the state to a federal penalty.
13.6 	(b) Payment of a penalty to the federal government in connection with the purchase 
13.7 	or sale of state bonds issued by the state must be made from funds appropriated for general 
13.8 	operations of the department. If the commissioner determines that it is not feasible to pay 
13.9 	the penalty from these funds, the commissioner may seek approval under the process in 
13.10 	section 3.30 for use of contingent account appropriations.
13.11 	(c) The commissioner must disclose to the legislative auditor and to the chairs and 
13.12 	ranking minority members of the house of representatives Ways and Means Committee, 
13.13 	senate Finance Committee, and house of representatives and senate committees with 
13.14 	jurisdiction over capital investment the payment of a penalty by the commissioner or a 
13.15 	state agency to the federal government in connection with the purchase or sale of bonds 
13.16 	issued by the state. A disclosure under this paragraph must be made within ten days of the 
13.17 	commissioner or a state agency paying the penalty.

13.18 	Sec. 12. Minnesota Statutes 2014, section 16B.335, subdivision 1, is amended to read:
13.19 		Subdivision 1.Construction and major remodeling. (a) The commissioner, or 
13.20 	any other recipient to whom an appropriation is made to acquire or better public lands 
13.21 	or buildings or other public improvements of a capital nature, must not prepare final 
13.22 	plans and specifications for any construction, major remodeling, or land acquisition in 
13.23 	anticipation of which the appropriation was made until the agency that will use the 
13.24 	project has presented the program plan and cost estimates for all elements necessary to 
13.25 	complete the project to the chair of the senate Finance Committee and the chair of the 
13.26 	house of representatives Ways and Means Committee and the chairs have made their 
13.27 	recommendations, and the chair and ranking minority member of the senate Capital 
13.28 	Investment Committee and the chair and ranking minority member of the house of 
13.29 	representatives Capital Investment Committee are notified. "Construction or major 
13.30 	remodeling" means construction of a new building, a substantial addition to an existing 
13.31 	building, or a substantial change to the interior configuration of an existing building. The 
13.32 	presentation must note any significant changes in the work that will be done, or in its cost, 
13.33 	since the appropriation for the project was enacted or from the predesign submittal. The 
13.34 	program plans and estimates must be presented for review at least two weeks before a 
14.1 	recommendation is needed. The recommendations are advisory only. Failure or refusal to 
14.2 	make a recommendation is considered a negative recommendation. 
14.3 	(b) The chairs and ranking minority members of the senate Finance and Capital 
14.4 	Investment Committees and, the house of representatives Capital Investment and Ways 
14.5 	and Means Committees, and the house of representatives and senate budget committees or 
14.6 	divisions with jurisdiction over the agency that will use the project must also be notified 
14.7 	whenever there is a substantial change in a construction or major remodeling project, or in 
14.8 	its cost. This notice must include the nature and reason for the change, and the anticipated 
14.9 	cost of the change. The notice must be given no later than ten days after signing a change 
14.10 	order or other document authorizing a change in the project, or if there is not a change 
14.11 	order or other document, no later than ten days after the project owner becomes aware of a 
14.12 	substantial change in the project or its cost.
14.13 	(b) (c) Capital projects exempt from the requirements of this subdivisionin 
14.14 	paragraph (a) to seek recommendations before preparing final plans and specifications 
14.15 	include demolition or decommissioning of state assets, hazardous material projects, utility 
14.16 	infrastructure projects, environmental testing, parking lots, parking structures, park and 
14.17 	ride facilities, bus rapid transit stations, light rail lines, passenger rail projects, exterior 
14.18 	lighting, fencing, highway rest areas, truck stations, storage facilities not consisting 
14.19 	primarily of offices or heated work areas, roads, bridges, trails, pathways, campgrounds, 
14.20 	athletic fields, dams, floodwater retention systems, water access sites, harbors, sewer 
14.21 	separation projects, water and wastewater facilities, port development projects for which 
14.22 	the commissioner of transportation has entered into an assistance agreement under section 
14.23 	457A.04, ice centers, a local government project with a construction cost of less than 
14.24 	$1,500,000, or any other capital project with a construction cost of less than $750,000. 
14.25 	The requirements in paragraph (b) to give notice of changes applies to these projects.

14.26 	Sec. 13. [16B.336] NEW STATE BUILDINGS.
14.27 	Any requirement for legislative approval of construction of a state building may be 
14.28 	fulfilled only by approval of the entire legislature in a bill enacted into law, and may not be 
14.29 	fulfilled by approval of one or more committees of the legislature.

14.30 	Sec. 14. [16B.991] TERMINATION OF GRANT.
14.31 	Each grant agreement subject to sections 16B.97 and 16B.98 must provide that 
14.32 	the agreement will immediately be terminated if the recipient is convicted of a criminal 
14.33 	offense relating to a state grant agreement.

15.1 	Sec. 15. [16B.992] NO FEES FOR GENERAL FUND GRANT 
15.2 	ADMINISTRATION.
15.3 	An agency may not charge a recipient of a grant from the general fund a fee and 
15.4 	may not deduct money from the grant to pay administrative expenses incurred by the 
15.5 	agency in administering the grant.

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

15.15 	Sec. 17. Minnesota Statutes 2014, section 16C.16, subdivision 5, is amended to read:
15.16 		Subd. 5.Designation of targeted groups. (a) The commissioner of administration 
15.17 	shall periodically designate businesses that are majority owned and operated by women, 
15.18 	persons with a substantial physical disability, or specific minorities as targeted group 
15.19 	businesses within purchasing categories as determined by the commissioner. A group 
15.20 	may be targeted within a purchasing category if the commissioner determines there is a 
15.21 	statistical disparity between the percentage of purchasing from businesses owned by 
15.22 	group members and the representation of businesses owned by group members among all 
15.23 	businesses in the state in the purchasing category.
15.24 	(b) In addition to designations under paragraph (a),: (1) an individual business may 
15.25 	be included as a targeted group business if the commissioner determines that inclusion is 
15.26 	necessary to remedy discrimination against the owner based on race, gender, or disability 
15.27 	in attempting to operate a business that would provide goods or services to public 
15.28 	agencies; and (2) an individual business must be included as a targeted group business if 
15.29 	the business agrees that its workforce will be composed of at least 40 percent minority 
15.30 	persons or veterans, and that this agreement will be expressed as a condition of any 
15.31 	contract between the state and the business.
15.32 	(c) The designations of purchasing categories and businesses under paragraphs 
15.33 	(a) and (b) are not rules for purposes of chapter 14, and are not subject to rulemaking 
15.34 	procedures of that chapter.

16.1 	Sec. 18. [43A.035] LIMIT ON NUMBER OF FULL-TIME EQUIVALENT 
16.2 	EMPLOYEES.
16.3 	The total number of full-time equivalent employees employed in all executive 
16.4 	branch agencies may not exceed 35,927. As provided in article 1, section 12, an executive 
16.5 	branch agency may not hire a new employee during the biennium ending June 30, 2017, 
16.6 	except as authorized in article 1, section 12. Any reductions in staff should prioritize 
16.7 	protecting client-facing health care workers, corrections officers, public safety workers, 
16.8 	and mental health workers. As a means of achieving compliance with this requirement, 
16.9 	the commissioner may authorize an agency to provide an early retirement incentive to an 
16.10 	executive branch employee, under which the state will continue to make the employer 
16.11 	contribution for health insurance after the employee has terminated state service. The 
16.12 	commissioner must prescribe eligibility requirements and the maximum duration of the 
16.13 	payments. For purposes of this section, an "executive agency" does not include the 
16.14 	Minnesota State Colleges and Universities or statewide pension plans.

16.15 	Sec. 19. Minnesota Statutes 2015 Supplement, section 197.46, is amended to read:
16.16 	197.46 VETERANS PREFERENCE ACT; REMOVAL FORBIDDEN; RIGHT 
16.17 	OF MANDAMUS.
16.18 	(a) Any person whose rights may be in any way prejudiced contrary to any of the 
16.19 	provisions of this section, shall be is entitled to a writ of mandamus to remedy the wrong. 
16.20 	No person holding a position by appointment or employment in the several counties any 
16.21 	county, cities city, towns town, school districts and alldistrict, or any other political 
16.22 	subdivisions subdivision in the state, who is a veteran separated from the military service 
16.23 	under honorable conditions, shall be removed from such the position or employment 
16.24 	except for incompetency or misconduct shown after a hearing, upon due notice, upon 
16.25 	stated charges, in writing.
16.26 	(b) Any veteran who has been notified of the intent to discharge the veteran from an 
16.27 	appointed position or employment pursuant to this section shall be notified in writing of 
16.28 	such the intent to discharge and of the veteran's right to request a hearing within 60 days 
16.29 	of receipt of the notice of intent to discharge. The failure of a veteran to request a hearing 
16.30 	within the provided 60-day period shall constitute constitutes a waiver of the right to a 
16.31 	hearing. Such The failure shall also waive waives all other available legal remedies for 
16.32 	reinstatement.
16.33 	Request for a hearing concerning such a discharge shall be made in writing and 
16.34 	submitted by mail or personal service to the employment office of the concerned employer 
16.35 	or other appropriate office or person. If the veteran requests a hearing under this section, 
17.1 	such the written request must also contain the veteran's election to be heard by a civil 
17.2 	service board or commission, a merit authority, or a three-person panelboard of three 
17.3 	persons as defined in paragraph (c). If the veteran fails to identify the veteran's election, 
17.4 	the governmental subdivision may select the hearing body.
17.5 	(c) In all governmental subdivisions having an established civil service board or 
17.6 	commission, or merit system authority, suchthe veteran may elect to have the hearing for 
17.7 	removal or discharge shall be held before such the civil service board or commission or 
17.8 	merit system authority, or before a board of three persons as specified in this paragraph. 
17.9 	Where no such civil service board or commission or merit system authority exists, such 
17.10 	the hearing shall be held by a board of three persons appointed as follows: one by the 
17.11 	governmental subdivision, one by the veteran, and the third by the two so selected. In the 
17.12 	event that the hearing is authorized to be held before a three-person board of three persons, 
17.13 	the governmental subdivision's notice of intent to discharge shall state that the veteran must 
17.14 	respond within 60 days of receipt of the notice of intent to discharge, and provide in writing 
17.15 	to the governmental subdivision the name, United States mailing address, and telephone 
17.16 	number of the veteran's selected representative for the three-person board of three persons. 
17.17 	The failure of a veteran to submit the name, address, and telephone number of the veteran's 
17.18 	selected representative to the governmental subdivision by mail or by personal service 
17.19 	within the provided notice's 60-day period, shall constitute constitutes a waiver of the 
17.20 	veteran's right to the hearing and all other legal remedies available for reinstatement of the 
17.21 	veteran's employment position. In the event the two personsperson selected by the veteran 
17.22 	and the person selected by the governmental subdivision do not appoint the third person 
17.23 	within ten days after the appointment of the last of the two, then the judge of the district 
17.24 	court of the county wherein where the proceeding is pending, or if there be is more than one 
17.25 	judge in said the county then any judge in chambers, shall have has jurisdiction to appoint, 
17.26 	andthe third person. Upon application of either or both of the two so selectedby the 
17.27 	person selected by the governmental subdivision or by the person selected by the veteran, 
17.28 	or upon application by both, the judge shall appoint, the third person to the board and the 
17.29 	person so appointed by the judge who with the two first selected shall constitute the board.
17.30 	(d) Either the veteran or the governmental subdivision may appeal from the decision 
17.31 	of the board hearing body upon the charges to the district court by causing written notice 
17.32 	of appeal, stating the grounds thereof of the appeal, to be served upon the other party 
17.33 	within 15 days after notice of the decision and by filing the original notice of appeal 
17.34 	with proof of service thereof in the office of the court administrator of the district court 
17.35 	within ten days after service thereof. Nothing in section 197.455 or this section shall be 
17.36 	construed to apply to the position of private secretary, superintendent of schools, or one 
18.1 	chief deputy of any elected official or head of a department, or to any person holding a 
18.2 	strictly confidential relation to the appointing officer. Nothing in this section shall be 
18.3 	construed to apply to the position of teacher. The burden of establishing such relationship 
18.4 	shall be upon the appointing officer in all proceedings and actions relating thereto.
18.5 	(e) For disputes heard by a civil service board, commission or merit system authority, 
18.6 	or by a board of three persons, the political governmental subdivisions shall bear all costs 
18.7 	associated with the hearing but not including attorney fees for attorneys representing the 
18.8 	veteran. For disputes heard by a three-person panel, all parties shall bear equally all costs 
18.9 	associated with the hearing, but not including attorney fees for attorneys representing the 
18.10 	veteran. If the veteran prevails in a dispute heard by a civil service board or a three-person 
18.11 	panel, commission or merit system authority, or by a board of three persons and the hearing 
18.12 	reverses all aspects of the level of the alleged incompetency or misconduct requiring 
18.13 	discharge, the governmental subdivision shall pay the veteran's reasonable attorney fees.
18.14 	(f) All officers, boards, commissions, and employees shall conform to, comply with, 
18.15 	and aid in all proper ways in carrying into effect the provisions of section 197.455 and this 
18.16 	section notwithstanding any laws, charter provisions, ordinances or rules to the contrary. 
18.17 	Any willful violation of such sections by officers, officials, or employees is a misdemeanor.

18.18 	Sec. 20. Minnesota Statutes 2014, section 298.22, subdivision 1, is amended to read:
18.19 		Subdivision 1.The Office of the Commissioner of Iron Range resources 
18.20 	and rehabilitation. (a) The Office of the Commissioner of Iron Range resources and 
18.21 	rehabilitation is created as an agency in the executive branch of state government. The 
18.22 	governor shall appoint the commissioner of Iron Range resources and rehabilitation under 
18.23 	section 15.06.
18.24 	(b) The commissioner may hold other positions or appointments that are not 
18.25 	incompatible with duties as commissioner of Iron Range resources and rehabilitation. The 
18.26 	commissioner may appoint a deputy commissioner. All expenses of the commissioner, 
18.27 	including the payment of staff and other assistance as may be necessary, must be paid 
18.28 	out of the amounts appropriated by section 298.28 or otherwise made available by law 
18.29 	to the commissioner. Notwithstanding chapters 16A, 16B, and 16C, the commissioner 
18.30 	may utilize contracting options available under section 471.345 when the commissioner 
18.31 	determines it is in the best interest of the agency. The agency is not subject to sections 
18.32 	16E.016 and 16C.05.
18.33 	(c) When the commissioner determines that distress and unemployment exists or 
18.34 	may exist in the future in any county by reason of the removal of natural resources or 
18.35 	a possibly limited use of natural resources in the future and any resulting decrease in 
19.1 	employment, the commissioner may use whatever amounts of the appropriation made to 
19.2 	the commissioner of revenue in section 298.28 that are determined to be necessary and 
19.3 	proper in the development of the remaining resources of the county and in the vocational 
19.4 	training and rehabilitation of its residents, except that the amount needed to cover cost 
19.5 	overruns awarded to a contractor by an arbitrator in relation to a contract awarded by 
19.6 	the commissioner or in effect after July 1, 1985, is appropriated from the general fund. 
19.7 	For the purposes of this section, "development of remaining resources" includes, but is 
19.8 	not limited to, the promotion of tourism.

19.9 	Sec. 21. Minnesota Statutes 2014, section 299A.41, subdivision 3, is amended to read:
19.10 		Subd. 3.Killed in the line of duty. "Killed in the line of duty" does not include 
19.11 	deaths from natural causes, except as provided in this subdivision. In the case of a peace
19.12 	public safety officer, "killed in the line of duty" includes the death of an a public safety
19.13 	officer caused by accidental means while the peacepublic safety officer is acting in the 
19.14 	course and scope of duties as a peacepublic safety officer. Killed in the line of duty also 
19.15 	means if a public safety officer dies as the direct and proximate result of a heart attack, 
19.16 	stroke, or vascular rupture, that officer shall be presumed to have died as the direct and 
19.17 	proximate result of a personal injury sustained in the line of duty if:
19.18 	(1) that officer, while on duty:
19.19 	(i) engaged in a situation, and that engagement involved nonroutine stressful or 
19.20 	strenuous physical law enforcement, fire suppression, rescue, hazardous material response, 
19.21 	emergency medical services, prison security, disaster relief, or other emergency response 
19.22 	activity; or
19.23 	(ii) participated in a training exercise, and that participation involved nonroutine 
19.24 	stressful or strenuous physical activity;
19.25 	(2) that officer died as a result of a heart attack, stroke, or vascular rupture suffered:
19.26 	(i) while engaging or participating under clause (1);
19.27 	(ii) while still on duty after engaging or participating under clause (1); or 
19.28 	(iii) not later than 24 hours after engaging or participating under clause (1); and 
19.29 	(3) the presumption is not overcome by competent medical evidence to the contrary.

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

19.31 	Sec. 22. Minnesota Statutes 2014, section 327C.095, subdivision 13, is amended to read:
19.32 		Subd. 13.Change in use, relocation expenses; payments by park owner. (a) 
19.33 	If a manufactured home owner is required to relocate due to the conversion of all or a 
19.34 	portion of a manufactured home park to another use, the closure of a manufactured home 
20.1 	park, or cessation of use of the land as a manufactured home park under subdivision 1, 
20.2 	and the manufactured home owner complies with the requirements of this section, the 
20.3 	manufactured home owner is entitled to payment from the Minnesota manufactured home 
20.4 	relocation trust fund equal to the manufactured home owner's actual relocation costs for 
20.5 	relocating the manufactured home to a new location within a 25-mile radius of the park 
20.6 	that is being closed, up to a maximum of $4,000 $7,000 for a single-section and $8,000 
20.7 	$12,500 for a multisection manufactured home. The actual relocation costs must include 
20.8 	the reasonable cost of taking down, moving, and setting up the manufactured home, 
20.9 	including equipment rental, utility connection and disconnection charges, minor repairs, 
20.10 	modifications necessary for transportation of the home, necessary moving permits and 
20.11 	insurance, moving costs for any appurtenances, which meet applicable local, state, and 
20.12 	federal building and construction codes.
20.13 	(b) A manufactured home owner is not entitled to compensation under paragraph (a) 
20.14 	if the manufactured home park owner is not required to make a payment to the Minnesota 
20.15 	manufactured home relocation trust fund under subdivision 12, paragraph (b).
20.16 	(c) Except as provided in paragraph (e), in order to obtain payment from the 
20.17 	Minnesota manufactured home relocation trust fund, the manufactured home owner shall 
20.18 	submit to the neutral third party and the Minnesota Housing Finance Agency, with a copy 
20.19 	to the park owner, an application for payment, which includes:
20.20 	(1) a copy of the closure statement under subdivision 1;
20.21 	(2) a copy of the contract with a moving or towing contractor, which includes the 
20.22 	relocation costs for relocating the manufactured home;
20.23 	(3) a statement with supporting materials of any additional relocation costs as 
20.24 	outlined in subdivision 1;
20.25 	(4) a statement certifying that none of the exceptions to receipt of compensation 
20.26 	under subdivision 12, paragraph (b), apply to the manufactured home owner;
20.27 	(5) a statement from the manufactured park owner that the lot rental is current 
20.28 	and that the annual $12 payments to the Minnesota manufactured home relocation trust 
20.29 	fund have been paid when due; and
20.30 	(6) a statement from the county where the manufactured home is located certifying 
20.31 	that personal property taxes for the manufactured home are paid through the end of that year.
20.32 	(d) If the neutral third party has acted reasonably and does not approve or deny 
20.33 	payment within 45 days after receipt of the information set forth in paragraph (c), the 
20.34 	payment is deemed approved. Upon approval and request by the neutral third party, 
20.35 	the Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 
20.36 	percent of the contract price payable to the mover and towing contractor for relocating 
21.1 	the manufactured home in the amount of the actual relocation cost, plus a check to the 
21.2 	home owner for additional certified costs associated with third-party vendors, that were 
21.3 	necessary in relocating the manufactured home. The moving or towing contractor shall 
21.4 	receive 50 percent upon execution of the contract and 50 percent upon completion of 
21.5 	the relocation and approval by the manufactured home owner. The moving or towing 
21.6 	contractor may not apply the funds to any other purpose other than relocation of the 
21.7 	manufactured home as provided in the contract. A copy of the approval must be forwarded 
21.8 	by the neutral third party to the park owner with an invoice for payment of the amount 
21.9 	specified in subdivision 12, paragraph (a).
21.10 	(e) In lieu of collecting a relocation payment from the Minnesota manufactured 
21.11 	home relocation trust fund under paragraph (a), the manufactured home owner may collect 
21.12 	an amount from the fund after reasonable efforts to relocate the manufactured home 
21.13 	have failed due to the age or condition of the manufactured home, or because there are 
21.14 	no manufactured home parks willing or able to accept the manufactured home within a 
21.15 	25-mile radius. A manufactured home owner may tender title of the manufactured home in 
21.16 	the manufactured home park to the manufactured home park owner, and collect an amount 
21.17 	to be determined by an independent appraisal. The appraiser must be agreed to by both 
21.18 	the manufactured home park owner and the manufactured home owner. If the appraised 
21.19 	market value cannot be determined, the tax market value, averaged over a period of five 
21.20 	years, can be used as a substitute. The maximum amount that may be reimbursed under 
21.21 	the fund is a maximum of $5,000 $8,000 for a single-section and $9,000 $14,500 for a 
21.22 	multisection manufactured home. The minimum amount that may be reimbursed under the 
21.23 	fund is $4,000 for a single section and $8,000 for a multisection manufactured home. The 
21.24 	manufactured home owner shall deliver to the manufactured home park owner the current 
21.25 	certificate of title to the manufactured home duly endorsed by the owner of record, and 
21.26 	valid releases of all liens shown on the certificate of title, and a statement from the county 
21.27 	where the manufactured home is located evidencing that the personal property taxes have 
21.28 	been paid. The manufactured home owner's application for funds under this paragraph 
21.29 	must include a document certifying that the manufactured home cannot be relocated, that 
21.30 	the lot rental is current, that the annual $12 payments to the Minnesota manufactured home 
21.31 	relocation trust fund have been paid when due, that the manufactured home owner has 
21.32 	chosen to tender title under this section, and that the park owner agrees to make a payment 
21.33 	to the commissioner of management and budget in the amount established in subdivision 
21.34 	12, paragraph (a), less any documented costs submitted to the neutral third party, required 
21.35 	for demolition and removal of the home, and any debris or refuse left on the lot, not to 
21.36 	exceed $1,000. The manufactured home owner must also provide a copy of the certificate 
22.1 	of title endorsed by the owner of record, and certify to the neutral third party, with a copy 
22.2 	to the park owner, that none of the exceptions to receipt of compensation under subdivision 
22.3 	12, paragraph (b), clauses (1) to (6), apply to the manufactured home owner, and that the 
22.4 	home owner will vacate the home within 60 days after receipt of payment or the date of 
22.5 	park closure, whichever is earlier, provided that the monthly lot rent is kept current.
22.6 	(f) The Minnesota Housing Finance Agency must make a determination of the 
22.7 	amount of payment a manufactured home owner would have been entitled to under a local 
22.8 	ordinance in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured 
22.9 	home owner's compensation for relocation costs from the fund under section 462A.35, is 
22.10 	the greater of the amount provided under this subdivision, or the amount under the local 
22.11 	ordinance in effect on May 26, 2007, that is applicable to the manufactured home owner. 
22.12 	Nothing in this paragraph is intended to increase the liability of the park owner.
22.13 	(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall 
22.14 	be liable to any person for recovery if the funds in the Minnesota manufactured home 
22.15 	relocation trust fund are insufficient to pay the amounts claimed. The Minnesota Housing 
22.16 	Finance Agency shall keep a record of the time and date of its approval of payment to a 
22.17 	claimant.
22.18 	(h) The agency shall report to the chairs of the senate Finance Committee and 
22.19 	house of representatives Ways and Means Committee by January 15 of each year on 
22.20 	the Minnesota manufactured home relocation trust fund, including the account balance, 
22.21 	payments to claimants, the amount of any advances to the fund, the amount of any 
22.22 	insufficiencies encountered during the previous calendar year, and any administrative 
22.23 	charges or expenses deducted from the trust fund balance. If sufficient funds become 
22.24 	available, the Minnesota Housing Finance Agency shall pay the manufactured home 
22.25 	owner whose unpaid claim is the earliest by time and date of approval.

22.26 	Sec. 23. Minnesota Statutes 2014, section 353.01, subdivision 43, is amended to read:
22.27 		Subd. 43.Line of duty death. "Line of duty death" means:
22.28 	(1) a death that occurs while performing or as a direct result of performing normal or 
22.29 	less frequent duties which are specific to protecting the property and personal safety of 
22.30 	others and that present inherent dangers that are specific to the positions covered by the 
22.31 	public employees police and fire plan.; or
22.32 	(2) a death determined by the commissioner of public safety to meet the requirements 
22.33 	of section 299A.41, subdivision 3.

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

23.1 	Sec. 24. Minnesota Statutes 2014, section 462.355, subdivision 4, is amended to read:
23.2 		Subd. 4.Interim ordinance. (a) If a municipality is conducting studies or has 
23.3 	authorized a study to be conducted or has held or has scheduled a hearing for the purpose 
23.4 	of considering adoption or amendment of a comprehensive plan or official controls 
23.5 	as defined in section 462.352, subdivision 15, or if new territory for which plans or 
23.6 	controls have not been adopted is annexed to a municipality, the governing body of the 
23.7 	municipality may adopt an interim ordinance applicable to all or part of its jurisdiction for 
23.8 	the purpose of protecting the planning process and the health, safety and welfare of its 
23.9 	citizens. The interim ordinance may regulate, restrict, or prohibit any use, development, 
23.10 	or subdivision within the jurisdiction or a portion thereof for a period not to exceed one 
23.11 	year from the date it is effective.
23.12 	(b) If a proposed interim ordinance purports to regulate, restrict, or prohibit activities 
23.13 	relating to livestock production, a public hearing must be held following a ten-day notice 
23.14 	given by publication in a newspaper of general circulation in the municipality before 
23.15 	the interim ordinance takes effect.
23.16 	(c) If a proposed interim ordinance by a statutory or home rule charter city purports 
23.17 	to regulate, restrict, or prohibit activities relating to housing, a public hearing must be held 
23.18 	following a ten-day notice given by publication in a newspaper of general circulation in 
23.19 	the municipality before the interim ordinance takes effect.
23.20 	(d) The period of an interim ordinance applicable to an area that is affected by 
23.21 	a city's master plan for a municipal airport may be extended for such additional periods 
23.22 	as the municipality may deem appropriate, not exceeding a total additional period of 18 
23.23 	months. In all other cases, no interim ordinance may halt, delay, or impede a subdivision 
23.24 	that has been given preliminary approval, nor may any interim ordinance extend the 
23.25 	time deadline for agency action set forth in section 15.99 with respect to any application 
23.26 	filed prior to the effective date of the interim ordinance. The governing body of the 
23.27 	municipality may extend the interim ordinance after a public hearing and written findings 
23.28 	have been adopted based upon one or more of the conditions in clause (1), (2), or (3). 
23.29 	The public hearing must be held at least 15 days but not more than 30 days before the 
23.30 	expiration of the interim ordinance, and notice of the hearing must be published at least 
23.31 	ten days before the hearing. The interim ordinance may be extended for the following 
23.32 	conditions and durations, but, except as provided in clause (3), an interim ordinance may 
23.33 	not be extended more than an additional 18 months:
23.34 	(1) up to an additional 120 days following the receipt of the final approval or review 
23.35 	by a federal, state, or metropolitan agency when the approval is required by law and the 
24.1 	review or approval has not been completed and received by the municipality at least 30 
24.2 	days before the expiration of the interim ordinance;
24.3 	(2) up to an additional 120 days following the completion of any other process 
24.4 	required by a state statute, federal law, or court order, when the process is not completed at 
24.5 	least 30 days before the expiration of the interim ordinance; or
24.6 	(3) up to an additional one year if the municipality has not adopted a comprehensive 
24.7 	plan under this section at the time the interim ordinance is enacted.

24.8 	EFFECTIVE DATE. This section is effective for interim ordinances proposed on 
24.9 	or after August 1, 2016.

24.10 	Sec. 25. Minnesota Statutes 2014, section 471.6161, subdivision 8, is amended to read:
24.11 		Subd. 8.School districts; group health insurance coverage. (a) Any entity 
24.12 	providing group health insurance coverage to a school district must provide the school 
24.13 	district with school district-specific nonidentifiable aggregate claims records for the most 
24.14 	recent 24 months within 30 days of the request.
24.15 	(b) School districts shall request proposals for group health insurance coverage as 
24.16 	provided in subdivision 2 from a minimum of three potential sources of coverage. One of 
24.17 	these requests must go to an administrator governed by chapter 43A. Entities referenced 
24.18 	in subdivision 1 must respond to requests for proposals received directly from a school 
24.19 	district. School districts that are self-insured must also follow these provisions, except 
24.20 	as provided in paragraph (f). School districts must make requests for proposals at least 
24.21 	150 days prior to the expiration of the existing contract but not more frequently than once 
24.22 	every 24 months. The request for proposals must include the most recently available 
24.23 	24 months of nonidentifiable aggregate claims data. The request for proposals must be 
24.24 	publicly released at or prior to its release to potential sources of coverage.
24.25 	(c) School district contracts for group health insurance must not be longer than two 
24.26 	five years unless the exclusive representative of the largest employment group and the 
24.27 	school district agree otherwise, except that contracts for group health insurance negotiated 
24.28 	in connection with a service cooperative, governed by section 123A.21, must not be 
24.29 	longer than four years.
24.30 	(d) All initial proposals shall be sealed upon receipt until they are all opened no less 
24.31 	than 90 days prior to the plan's renewal date in the presence of up to three representatives 
24.32 	selected by the exclusive representative of the largest group of employees. Section 13.591, 
24.33 	subdivision 3, paragraph (b), applies to data in the proposals. The representatives of 
24.34 	the exclusive representative must maintain the data according to this classification and 
25.1 	are subject to the remedies and penalties under sections 13.08 and 13.09 for a violation 
25.2 	of this requirement.
25.3 	(e) A school district, in consultation with the same representatives referenced in 
25.4 	paragraph (d), may continue to negotiate with any entity that submitted a proposal under 
25.5 	paragraph (d) in order to reduce costs or improve services under the proposal. Following 
25.6 	the negotiations any entity that submitted an initial proposal may submit a final proposal 
25.7 	incorporating the negotiations, which is due no less than 75 days prior to the plan's 
25.8 	renewal date. All the final proposals submitted must be opened at the same time in the 
25.9 	presence of up to three representatives selected by the exclusive representative of the 
25.10 	largest group of employees. Notwithstanding section 13.591, subdivision 3, paragraph (b), 
25.11 	following the opening of the final proposals, all the proposals, including any made under 
25.12 	paragraph (d), and other data submitted in connection with the proposals are public data. 
25.13 	The school district may choose from any of the initial or final proposals without further 
25.14 	negotiations and in accordance with subdivision 5, but not sooner than 15 days after 
25.15 	the proposals become public data.
25.16 	(f) School districts that are self-insured shall follow all of the requirements of this 
25.17 	section, except that:
25.18 	(1) their requests for proposals may be for third-party administrator services, where 
25.19 	applicable;
25.20 	(2) these requests for proposals must be from a minimum of three different sources, 
25.21 	which may include both entities referenced in subdivision 1 and providers of third-party 
25.22 	administrator services;
25.23 	(3) for purposes of fulfilling the requirement to request a proposal for group 
25.24 	insurance coverage from an administrator governed by chapter 43A, self-insured districts 
25.25 	are not required to include in the request for proposal the coverage to be provided;
25.26 	(4) a district that is self-insured on or before the date of enactment, or that is 
25.27 	self-insured with more than 1,000 insured lives, or a district in which the school board 
25.28 	adopted a motion on or before May 14, 2014, to approve a self-insured health care plan 
25.29 	to be effective July 1, 2014, may, but need not, request a proposal from an administrator 
25.30 	governed by chapter 43A;
25.31 	(5) (3)  requests for proposals must be sent to providers no less than 90 days prior to 
25.32 	the expiration of the existing contract; and
25.33 	(6) (4) proposals must be submitted at least 60 days prior to the plan's renewal date 
25.34 	and all proposals shall be opened at the same time and in the presence of the exclusive 
25.35 	representative, where applicable.
26.1 	(g) Nothing in this section shall restrict the authority granted to school district boards 
26.2 	of education by section 471.59, except that districts will not be considered self-insured for 
26.3 	purposes of this subdivision solely through participation in a joint powers arrangement.
26.4 	(h) An entity providing group health insurance to a school district under a multiyear 
26.5 	contract must give notice of any rate or plan design changes applicable under the contract 
26.6 	at least 90 days before the effective date of any change. The notice must be given to the 
26.7 	school district and to the exclusive representatives of employees.
26.8 	(i) The exclusive representative of the largest group of employees shall comply 
26.9 	with this subdivision and must not exercise any of their abilities under section 43A.316, 
26.10 	subdivision 5, notwithstanding anything contained in that section, or any other law to the 
26.11 	contrary.

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

26.13 	Sec. 26. Minnesota Statutes 2014, section 471.617, subdivision 2, is amended to read:
26.14 		Subd. 2.Jointly. Any two or more statutory or home rule charter cities, counties, 
26.15 	school districts, or instrumentalities thereof which together have more than 100 employees 
26.16 	may jointly self-insure for any employee health benefits including long-term disability, but 
26.17 	not for employee life benefits, subject to the same requirements as an individual self-insurer 
26.18 	under subdivision 1. Self-insurance pools under this section are subject to section 62L.045. 
26.19 	A self-insurance pool established and operated by one or more service cooperatives 
26.20 	governed by section 123A.21 to provide coverage described in this subdivision qualifies 
26.21 	under this subdivision, but the individual school district members of such a pool shall not 
26.22 	be considered to be self-insured for purposes of section 471.6161, subdivision 8, paragraph 
26.23 	(f). The commissioner of commerce may adopt rules pursuant to chapter 14, providing 
26.24 	standards or guidelines for the operation and administration of self-insurance pools.

26.25 	Sec. 27. Laws 2015, chapter 77, article 1, section 11, subdivision 4, is amended to read:

26.26	Subd. 4.Fiscal Agent
 		12,957,000
		11,737,000
	
26.27 	The appropriations under this section are to 
26.28 	the commissioner of administration for the 
26.29 	purposes specified.
26.30 	In-Lieu of Rent. $8,158,000 the first year 
26.31 	and $8,158,000 the second year are for 
26.32 	space costs of the legislature and veterans 
26.33 	organizations, ceremonial space, and 
27.1 	statutorily free space. In-lieu of rent may be 
27.2 	used for rent loss and relocation expenses 
27.3 	related to the Capitol restoration in the fiscal 
27.4 	year 2014-2015 biennium and fiscal year 
27.5 	2016-2017 biennium. 
27.6 	Relocation Expenses. $1,380,000 the first 
27.7 	year and $960,000 the second year are for 
27.8 	rent loss and relocation expenses related 
27.9 	to the Capitol renovation project. This is a 
27.10 	onetime appropriation.
27.11 	Public Broadcasting. (a) $1,550,000 the 
27.12 	first year and $1,550,000 the second year are 
27.13 	for matching grants for public television.
27.14 	(b) $550,000 the first year and $250,000 
27.15 	the second year are for public television 
27.16 	equipment grants under Minnesota Statutes, 
27.17 	section 129D.13.
27.18 	(c) The commissioner of administration 
27.19 	must consider the recommendations of the 
27.20 	Minnesota Public Television Association 
27.21 	before allocating the amount appropriated 
27.22 	in paragraphs (a) and (b) for equipment or 
27.23 	matching grants.
27.24 	(d) $592,000 the first year and $392,000 the 
27.25 	second year are for community service grants 
27.26 	to public educational radio stations. This 
27.27 	appropriation may be used to disseminate 
27.28 	emergency information in foreign languages.
27.29 	(e) $167,000 the first year and $117,000 
27.30 	the second year are for equipment grants 
27.31 	to public educational radio stations. This 
27.32 	appropriation may be used for the repair, 
27.33 	rental, and purchase of equipment including 
27.34 	equipment under $500.
28.1 	(f) $560,000 the first year and $310,000 
28.2 	the second year are for equipment grants 
28.3 	to Minnesota Public Radio, Inc., including 
28.4 	upgrades to Minnesota's Emergency Alert 
28.5 	and AMBER Alert Systems.
28.6 	(g) The appropriations in paragraphs (d), 
28.7 	(e), and (f), may not be used for indirect 
28.8 	costs claimed by an institution or governing 
28.9 	body. The commissioner of administration 
28.10 	must consider the recommendations of 
28.11 	the Minnesota Public Educational Radio 
28.12 	Stations before awarding grants under 
28.13 	Minnesota Statutes, section 129D.14, using 
28.14 	the appropriations in paragraphs (d), and (e), 
28.15 	and (f). No grantee is eligible for a grant of 
28.16 	the appropriations in paragraphs (d) and (e) 
28.17 	unless they are a member of the Association 
28.18 	of Minnesota Public Educational Radio 
28.19 	Stations on or before July 1, 2015.
28.20 	(h) Any unencumbered balance remaining 
28.21 	the first year for grants to public television or 
28.22 	radio stations does not cancel and is available 
28.23 	for the second year.

28.24 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2015.

28.25 	Sec. 28. REPORT ON STATE EMPLOYEE OUT-OF-STATE TRAVEL 
28.26 	EXPENSES.
 28.27 	The commissioner of management and budget shall audit state employee out-of-state 
28.28 	travel expenses incurred between July 1, 2013, and June 30, 2016. The audit shall identify 
28.29 	the amount spent on nonessential travel. For purposes of this section, travel is nonessential 
28.30 	unless it is necessary to protect the safety or other essential interests of the citizens of the 
28.31 	state. The commissioner of management and budget shall report to the chairs and ranking 
28.32 	minority members of the legislative committees in the house of representatives and senate 
28.33 	with jurisdiction over state employees by February 17, 2017. The commissioner must use 
28.34 	the department's existing budget to fund the audit.

29.1 	Sec. 29. STATE AUDITOR REPORT.
 29.2 	The state auditor must report to the chairs and ranking minority members of the 
29.3 	house of representatives and senate finance committees with jurisdiction over the Office 
29.4 	of the State Auditor by January 15, 2017. The report must include a strategic plan to 
29.5 	ensure that all local governments receive adequate oversight from the Office of the State 
29.6 	Auditor. In preparing this strategic plan, the state auditor must assess what types of audits 
29.7 	performed by the Office of the State Auditor are the most effective mechanisms for 
29.8 	ensuring that public funds have been used appropriately, what types of audit work can be 
29.9 	performed efficiently by certified public accounting (CPA) firms, and what is the most 
29.10 	effective deployment of audit resources available to the Office of the State Auditor. The 
29.11 	report must also evaluate the continuing importance of the reports, other than financial 
29.12 	audits, that the Office of the State Auditor produces on a regular basis.

29.13 	Sec. 30. PARKING RAMP FINANCING.
 29.14 	The debt service on the design and construction costs allocated to the parking garage 
29.15 	located on the block bounded by Sherburne Avenue on the north, Park Street on the west, 
29.16 	University Avenue on the south, and North Capitol Boulevard on the east must be paid 
29.17 	for exclusively by fees charged to persons parking in that parking garage. No fees may 
29.18 	be charged to members of the public parking in spaces designated for persons with a 
29.19 	disability parking certificate.

29.20 	Sec. 31. REPORT ON MNSURE COSTS TO COUNTIES.
 29.21 	The state auditor must report to the legislature by January 15, 2017, on costs 
29.22 	incurred by Minnesota counties related to eligibility determinations and related enrollment 
29.23 	activities for medical assistance enrollees and MinnesotaCare enrollees that are due to 
29.24 	implementing the Minnesota Eligibility Technology System administered by MNsure.

29.25 	Sec. 32. LEGISLATIVE SURROGACY COMMISSION.
 29.26 		Subdivision 1.Membership. The Legislative Commission on Surrogacy shall 
29.27 	consist of 15 members, appointed as follows:
29.28 	(1) three members of the senate appointed by the senate majority leader;
29.29 	(2) three members of the senate appointed by the senate minority leader;
29.30 	(3) three members of the house of representatives appointed by the speaker of the 
29.31 	house;
29.32 	(4) three members of the house of representatives appointed by the house of 
29.33 	representatives minority leader;
30.1 	(5) the commissioner of human services or the commissioner's designee;
30.2 	(6) the commissioner of health or the commissioner's designee; and
30.3 	(7) a family court referee appointed by the chief justice of the state Supreme Court.
30.4 	Appointments must be made by June 1, 2016.
30.5 		Subd. 2.Chair. The commission shall elect a chair from among its members.
30.6 		Subd. 3.Meetings. The ranking majority member of the commission who is 
30.7 	appointed by the senate majority leader shall convene the first meeting by July 1, 2016. 
30.8 	The commission shall have at least six meetings but may not have more than ten meetings.
30.9 		Subd. 4.Conflict of interest. A commission member may not participate in or 
30.10 	vote on a decision of the commission in which the member has either a direct or indirect 
30.11 	personal financial interest. A witness at a public meeting of the commission must disclose 
30.12 	any financial conflict of interest.
30.13 		Subd. 5.Duties. The commission shall develop recommendations on public policy 
30.14 	and laws regarding surrogacy. To develop the recommendations, the commission shall 
30.15 	study surrogacy through public hearings, research, and deliberation. Topics for study 
30.16 	include, but are not limited to:
30.17 	(1) potential health and psychological effects and benefits on women who serve 
30.18 	as surrogates;
30.19 	(2) potential health and psychological effects and benefits on children born of 
30.20 	surrogates;
30.21 	(3) business practices of the fertility industry, including attorneys, brokers, and 
30.22 	clinics;
30.23 	(4) considerations related to different forms of surrogacy;
30.24 	(5) considerations related to the potential exploitation of women in surrogacy 
30.25 	arrangements;
30.26 	(6) contract law implications when a surrogacy contract is breached;
30.27 	(7) potential conflicts with statutes governing private adoption and termination 
30.28 	of parental rights;
30.29 	(8) potential for legal conflicts related to third-party reproduction, including conflicts 
30.30 	between or amongst the surrogate mother, the intended parents, the child, insurance 
30.31 	companies, and medical professionals;
30.32 	(9) public policy determinations of other jurisdictions with regard to surrogacy; and
30.33 	(10) information to be provided to a child born of a surrogate about the child's 
30.34 	biological and gestational parents.
30.35 		Subd. 6.Reporting. The commission must submit a report including its 
30.36 	recommendations and may draft legislation to implement its recommendations to 
31.1 	the chairs and ranking minority members of the legislative committees with primary 
31.2 	jurisdiction over health and judiciary in the house of representatives and senate by 
31.3 	December 15, 2016. On topics where the commission fails to reach consensus, a majority 
31.4 	and minority report shall be issued.
31.5 		Subd. 7.Staffing. The Legislative Coordinating Commission shall provide staffing 
31.6 	and administrative support to the commission.
31.7 		Subd. 8.Expiration. The commission expires the day after submitting the report 
31.8 	required under subdivision 6.

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

31.10 	Sec. 33. ALTERNATIVE METHODS OF COLLECTING ASSESSMENT FEE; 
31.11 	STUDY.
 31.12 	(a) The commissioner of management and budget shall study alternative methods of 
31.13 	collecting the $12 assessment fee under Minnesota Statutes, section 327C.095, subdivision 
31.14 	12, paragraph (c), shifting the collection from the owner of the manufactured home park to 
31.15 	the owner of the manufactured home. The commissioner shall identify and evaluate the 
31.16 	feasibility, cost, and benefits of alternative methods of collection including, but not limited 
31.17 	to, directly invoicing manufactured home owners or imposition of a sales and use tax.
31.18 	(b) In completing the study in paragraph (a), the commissioner shall consult 
31.19 	stakeholders, including the Association of Minnesota Counties, the All Parks Alliance for 
31.20 	Change, and the Minnesota Manufactured Housing Association.
31.21 	(c) An amount necessary to complete the study in paragraph (a) is appropriated in 
31.22 	fiscal year 2017 to the commissioner of management and budget from the Minnesota 
31.23 	manufactured home relocation trust fund under Minnesota Statutes, section 462A.35.
31.24 	(d) The commissioner shall report on the results of the study to the chairs and ranking 
31.25 	minority members of the senate Finance Committee and the house of representatives 
31.26 	Committee on Ways and Means by January 31, 2017.

31.27 	Sec. 34.  REPEALER.
 31.28 	(a) Minnesota Statutes 2014, section 6.581, subdivision 1, is repealed.
31.29 	(b) Minnesota Statutes 2014, section 3.886, is repealed.