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SF 888A

Conference Committee Report - 89th Legislature (2015 - 2016) Posted on 05/18/2015 05:15pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 888
1.2A bill for an act
1.3relating to the operation of state government; appropriating money for the
1.4legislature, governor's office, state auditor, attorney general, secretary of state,
1.5certain agencies, boards, councils, retirement funds, military affairs and veterans
1.6affairs, and senate building; cancellation of certain appropriations; transferring
1.7money to the budget reserve; allowing prepay for certain software and information
1.8technology hosting services; limiting a fee or fine increase to ten percent in a
1.9biennium; providing reimbursement for reasonable accommodation; modifying
1.10grant agreement provisions; making changes to guaranteed energy-savings
1.11program, small business requirements, and targeted group businesses; changing
1.12certain requirements for the practice of cosmetology; assessing certain costs
1.13for Office of Administrative Hearings; changing a rehabilitation or renovation
1.14grant from the Minnesota Amateur Sports Commission; changing or establishing
1.15certain fees; limiting fire sprinkler requirement in certain dwellings; modifying
1.16certain filing requirements for corporations; modifying provisions for
1.17accountants; requiring a licensee of the residential trades to give an option to
1.18install fire sprinklers; modifying debt service provision for the legislative parking
1.19garage; requiring the same room numbers on signage in the Capitol to identify
1.20legacy rooms; providing in-lieu of rent evaluation; prohibiting state funds, tax
1.21expenditures, or state indebtedness to fund a major league soccer stadium; making
1.22changes to provisions for military and veterans affairs; changing provisions
1.23covering pari-mutuel horse racing; modifying provisions for cigarette and tobacco
1.24license; providing civil penalties; requiring reports;amending Minnesota Statutes
1.252014, sections 3.8843, subdivision 5; 16A.065; 16A.1283; 16B.97, subdivision
1.261; 16B.98, subdivisions 1, 11; 16C.144; 16C.16, subdivision 2, by adding a
1.27subdivision; 16C.19; 155A.21; 155A.23, subdivision 8, by adding subdivisions;
1.28155A.24, subdivision 2; 155A.25, subdivisions 1a, 5, by adding subdivisions;
1.29155A.27, subdivisions 1, 2, 5a; 155A.271; 155A.29, subdivisions 1, 2, by adding
1.30a subdivision; 155A.30, subdivisions 5, 10; 161.1419, subdivision 8; 190.16, by
1.31adding a subdivision; 190.19, subdivisions 2a, 3; 192.26, by adding a subdivision;
1.32192.38, subdivision 1; 192.501, by adding a subdivision; 197.133; 198.03,
1.33subdivisions 2, 3; 211B.37; 240.01, subdivision 22, by adding subdivisions;
1.34240.011; 240.03; 240.08, subdivisions 2, 4, 5; 240.10; 240.13, subdivisions 5,
1.356; 240.135; 240.15, subdivisions 1, 6; 240.16, subdivision 1; 240.22; 240.23;
1.36240A.09; 270C.722, subdivision 1; 270C.728, by adding a subdivision; 272.484;
1.37297F.01, subdivision 14; 297F.03, subdivisions 5, 6; 297F.04, subdivision 1;
1.38297F.13, subdivision 4; 297F.19, by adding a subdivision; 297F.20, by adding
1.39subdivisions; 297F.21, subdivision 1; 299F.011, by adding a subdivision; 303.19;
1.40304A.301, subdivisions 1, 5, 6, by adding a subdivision; 326A.01, subdivisions
1.412, 12, 13a, 15, 16; 326A.02, subdivisions 3, 5; 326A.05, subdivisions 1, 3;
1.42326A.08, subdivision 7; 326A.10; 326B.809; 336A.09, subdivision 1; 364.09;
1.43461.12, subdivision 8; Laws 2013, chapter 142, article 1, section 10; Laws 2014,
2.1chapter 287, section 25; proposing coding for new law in Minnesota Statutes,
2.2chapters 3; 16B; 297F; repealing Minnesota Statutes 2014, sections 155A.23,
2.3subdivision 6; 197.131; 197.132; 240.01, subdivisions 12, 23; 297F.185.
2.4May 18, 2015
2.5The Honorable Sandra L. Pappas
2.6President of the Senate
2.7The Honorable Kurt L. Daudt
2.8Speaker of the House of Representatives
2.9We, the undersigned conferees for S.F. No. 888 report that we have agreed upon the
2.10items in dispute and recommend as follows:
2.11That the House and Senate recede from their amendments and that S.F. No. 888
2.12be further amended as follows:
2.13Delete everything after the enacting clause and insert:

2.14"ARTICLE 1
2.15STATE GOVERNMENT APPROPRIATIONS

2.16
Section 1. STATE GOVERNMENT APPROPRIATIONS.
2.17    The sums shown in the columns marked "Appropriations" are appropriated to the
2.18agencies and for the purposes specified in this article. The appropriations are from the
2.19general fund, or another named fund, and are available for the fiscal years indicated
2.20for each purpose. The figures "2016" and "2017" used in this article mean that the
2.21appropriations listed under them are available for the fiscal year ending June 30, 2016, or
2.22June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
2.23year 2017. "The biennium" is fiscal years 2016 and 2017.
2.24
APPROPRIATIONS
2.25
Available for the Year
2.26
Ending June 30
2.27
2016
2017

2.28
Sec. 2. LEGISLATURE
2.29
2.30
Subdivision 1.Total
Appropriation
$
76,304,000
82,132,000
2.31
Appropriations by Fund
2.32
2016
2017
2.33
General
76,176,000
82,004,000
2.34
Health Care Access
128,000
128,000
2.35The amounts that may be spent for each
2.36purpose are specified in the following
2.37subdivisions.
3.1The appropriations in this section may
3.2be used for any purpose relating to the
3.3functions of the entities receiving the
3.4appropriations, including but not limited
3.5to member and employee compensation
3.6and expenses, supplies, payments required
3.7under lease agreements for real property, and
3.8other expenses associated with legislative
3.9sessions, interim activities, public hearings
3.10and other public outreach activities, and
3.11related activities. The Senate Committee
3.12on Rules and Administration for the Senate,
3.13the House of Representatives Committee
3.14on Rules and Legislative Administration
3.15for the House of Representatives, and the
3.16Legislative Coordinating Commission for
3.17entities under its control must each adopt a
3.18budget approving use of these appropriations
3.19for specific purposes. The budget must
3.20approve use of specific amounts for employee
3.21compensation, member compensation, rental
3.22payments under a lease, and other categories
3.23determined by the rules committees and
3.24the Legislative Coordinating Commission.
3.25The budget must be adopted after this
3.26appropriation is enacted.
3.27
Subd. 2.Senate
27,962,000
32,286,000
3.28The base for fiscal year 2018 is $32,299,000
3.29and for fiscal year 2019 is $32,105,000.
3.30
Subd. 3.House of Representatives
31,439,000
32,383,000
3.31During the biennium ending June 30, 2017,
3.32any revenues received by the house of
3.33representatives from voluntary donations
3.34to support broadcast or print media are
3.35appropriated to the house of representatives.
4.1
Subd. 4.Legislative Coordinating Commission
16,903,000
17,463,000
4.2
Appropriations by Fund
4.3
General
16,775,000
17,335,000
4.4
Health Care Access
128,000
128,000
4.5$6,564,000 each year from the general fund
4.6is to the Office of the Legislative Auditor.
4.7The auditor is requested to conduct a special
4.8review of the Department of Veterans Affairs
4.9financial management of Minnesota veterans
4.10homes. This review should include an
4.11examination of the department's:
4.12(1) management of increasing compensation
4.13costs, including any projected increases in
4.14staffing levels;
4.15(2) use of reserve funds in the special revenue
4.16fund to manage shortfalls in funding;
4.17(3) implementation of federal Centers for
4.18Medicare and Medicaid Services certification
4.19requirements, and the ability to accurately
4.20forecast and obtain federal reimbursements;
4.21(4) operation of the adult day care program
4.22at the Minneapolis campus; and
4.23(5) management of facilities operating costs,
4.24including plans to address the needs of aging
4.25facilities.
4.26$380,000 in fiscal year 2017 is for the
4.27revisor's administrative rules system. This is
4.28a onetime appropriation.
4.29$297,000 the first year and $298,000 the
4.30second year is for the Office of the Revisor of
4.31Statutes to maintain and improve information
4.32technology services.
5.1$35,000 in fiscal year 2016 and $35,000 in
5.2fiscal year 2017 are to provide support to the
5.3Legislative Commission on Data Practices
5.4established under Minnesota Statutes, section
5.53.8843. This is a onetime appropriation.
5.6From its funds, $10,000 each year is for
5.7purposes of the legislators' forum, through
5.8which Minnesota legislators meet with
5.9counterparts from South Dakota, North
5.10Dakota, and Manitoba to discuss issues of
5.11mutual concern.

5.12
5.13
Sec. 3. GOVERNOR AND LIEUTENANT
GOVERNOR
$
3,615,000
$
3,616,000
5.14(a) This appropriation is to fund the Office of
5.15the Governor and Lieutenant Governor.
5.16(b) Up to $19,000 the first year and up to
5.17$19,000 the second year are for necessary
5.18expenses in the normal performance of
5.19the Governor's and Lieutenant Governor's
5.20duties for which no other reimbursement is
5.21provided.
5.22(c) By September 1 of each year, the
5.23commissioner of management and budget
5.24shall report to the chairs and ranking minority
5.25members of the senate State Departments
5.26and Veterans Affairs Budget Division and the
5.27house of representatives State Government
5.28Finance Committee any personnel costs
5.29incurred by the Offices of the Governor and
5.30Lieutenant Governor that were supported
5.31by appropriations to other agencies during
5.32the previous fiscal year. The Office of the
5.33Governor shall inform the chairs and ranking
6.1minority members of the committees before
6.2initiating any interagency agreements.

6.3
Sec. 4. STATE AUDITOR
$
2,185,000
$
2,231,000

6.4
Sec. 5. ATTORNEY GENERAL
$
24,343,000
$
24,343,000
6.5
Appropriations by Fund
6.6
2016
2017
6.7
General
22,125,000
22,125,000
6.8
6.9
State Government
Special Revenue
1,823,000
1,823,000
6.10
Environmental
145,000
145,000
6.11
Remediation
250,000
250,000

6.12
Sec. 6. SECRETARY OF STATE
$
6,631,000
$
6,631,000
6.13Any funds available in the account
6.14established in Minnesota Statutes, section
6.155.30, pursuant to the Help America Vote Act,
6.16are appropriated for the purposes and uses
6.17authorized by federal law.

6.18
6.19
Sec. 7. CAMPAIGN FINANCE AND PUBLIC
DISCLOSURE BOARD
$
1,164,000
$
1,028,000
6.20Campaign Finance and Public Disclosure
6.21Board Web Site Redevelopment Project.
6.22$150,000 in fiscal year 2016 is appropriated
6.23to the Campaign Finance and Public
6.24Disclosure Board to complete redevelopment
6.25of its Web site. This appropriation is
6.26available until June 30, 2017. By January 15,
6.272016, the director of the Campaign Finance
6.28and Public Disclosure Board shall report to
6.29the chairs and ranking minority members of
6.30the senate State Departments and Veterans
6.31Affairs Budget Division and the house of
6.32representatives State Government Finance
6.33Committee on the status of the Web site
6.34redevelopment project. The report shall
7.1include a budget detailing total dollars to be
7.2spent, completion date of the project, and
7.3dollars expended to date.

7.4
Sec. 8. INVESTMENT BOARD
$
139,000
$
139,000

7.5
Sec. 9. ADMINISTRATIVE HEARINGS
$
7,630,000
$
7,633,000
7.6
Appropriations by Fund
7.7
2016
2017
7.8
General
380,000
383,000
7.9
7.10
Workers'
Compensation
7,250,000
7,250,000
7.11Campaign Violations Hearings. $115,000
7.12in fiscal year 2016 and $115,000 in fiscal year
7.132017 are appropriated from the general fund
7.14for the cost of considering complaints filed
7.15under Minnesota Statutes, section 211B.32.
7.16These amounts may be used in either year
7.17of the biennium.
7.18$6,000 in fiscal year 2016 and $6,000 in
7.19fiscal year 2017 are appropriated from the
7.20general fund to the Office of Administrative
7.21Hearings for the cost of considering data
7.22practices complaints filed under Minnesota
7.23Statutes, section 13.085. These amounts may
7.24be used in either year of the biennium.

7.25
Sec. 10. MN.IT SERVICES
$
2,526,000
$
2,622,000
7.26The commissioner of management and
7.27budget is authorized to provide cash flow
7.28assistance of up to $110,000,000 from the
7.29special revenue fund or other statutory
7.30general funds as defined in Minnesota
7.31Statutes, section 16A.671, subdivision
7.323, paragraph (a), to the Office of MN.IT
7.33Services for the purpose of managing
8.1revenue and expenditure differences during
8.2the initial phases of IT consolidation. These
8.3funds shall be repaid with interest by the end
8.4of the fiscal year 2017 closing period.
8.5During the biennium ending June 30, 2017,
8.6MN.IT Services must not charge fees to a
8.7public noncommercial educational television
8.8broadcast station eligible for funding under
8.9Minnesota Statutes, chapter 129D, for
8.10access to the state broadcast infrastructure.
8.11If the access fees not charged to public
8.12noncommercial educational television
8.13broadcast stations total more than $400,000
8.14for the biennium, the office may charge for
8.15access fees in excess of these amounts.

8.16
Sec. 11. ADMINISTRATION
8.17
Subdivision 1.Total Appropriation
$
24,397,000
$
22,346,000
8.18The amounts that may be spent for each
8.19purpose are specified in the following
8.20subdivisions.
8.21
Subd. 2.Government and Citizen Services
9,465,000
8,600,000
8.22$74,000 the first year and $74,000 the second
8.23year are for the Council on Developmental
8.24Disabilities.
8.25$735,000 the first year and $65,000 the
8.26second year are to conduct a disparity study
8.27required under Minnesota Statutes, section
8.2816C.16, subdivision 5. This is a onetime
8.29appropriation.
8.30$200,000 in fiscal year 2016 and $200,000
8.31in fiscal year 2017 are credited to the
8.32accommodation account established in
8.33Minnesota Statutes, section 16B.4805.
9.1In fiscal year 2016, the commissioner of
9.2administration may use five percent of
9.3the appropriation for fiscal year 2016 for
9.4developing policies and procedures to
9.5implement the reimbursement program
9.6established in Minnesota Statutes, section
9.716B.4805, and for educating qualifying
9.8agencies about the availability of and
9.9process for receiving reimbursement for
9.10accommodation expenses.
9.11
Subd. 3.Strategic Management Services
1,975,000
2,009,000
9.12
Subd. 4.Fiscal Agent
12,957,000
11,737,000
9.13The appropriations under this section are to
9.14the commissioner of administration for the
9.15purposes specified.
9.16In-Lieu of Rent. $8,158,000 the first year
9.17and $8,158,000 the second year are for
9.18space costs of the legislature and veterans
9.19organizations, ceremonial space, and
9.20statutorily free space. In-lieu of rent may be
9.21used for rent loss and relocation expenses
9.22related to the Capitol restoration in the fiscal
9.23year 2014-2015 biennium and fiscal year
9.242016-2017 biennium.
9.25Relocation Expenses. $1,380,000 the first
9.26year and $960,000 the second year are for
9.27rent loss and relocation expenses related
9.28to the Capitol renovation project. This is a
9.29onetime appropriation.
9.30Public Broadcasting. (a) $1,550,000 the
9.31first year and $1,550,000 the second year are
9.32for matching grants for public television.
9.33(b) $550,000 the first year and $250,000
9.34the second year are for public television
10.1equipment grants under Minnesota Statutes,
10.2section 129D.13.
10.3(c) The commissioner of administration
10.4must consider the recommendations of the
10.5Minnesota Public Television Association
10.6before allocating the amount appropriated
10.7in paragraphs (a) and (b) for equipment or
10.8matching grants.
10.9(d) $592,000 the first year and $392,000 the
10.10second year are for community service grants
10.11to public educational radio stations. This
10.12appropriation may be used to disseminate
10.13emergency information in foreign languages.
10.14(e) $167,000 the first year and $117,000
10.15the second year are for equipment grants
10.16to public educational radio stations. This
10.17appropriation may be used for the repair,
10.18rental, and purchase of equipment including
10.19equipment under $500.
10.20(f) $560,000 the first year and $310,000
10.21the second year are for equipment grants
10.22to Minnesota Public Radio, Inc., including
10.23upgrades to Minnesota's Emergency Alert
10.24and AMBER Alert Systems.
10.25(g) The appropriations in paragraphs (d),
10.26(e), and (f), may not be used for indirect
10.27costs claimed by an institution or governing
10.28body. The commissioner of administration
10.29must consider the recommendations of
10.30the Minnesota Public Educational Radio
10.31Stations before awarding grants under
10.32Minnesota Statutes, section 129D.14, using
10.33the appropriations in paragraphs (d), (e), and
10.34(f). No grantee is eligible for a grant unless
10.35they are a member of the Association of
11.1Minnesota Public Educational Radio Stations
11.2on or before July 1, 2015.
11.3(h) Any unencumbered balance remaining
11.4the first year for grants to public television or
11.5radio stations does not cancel and is available
11.6for the second year.

11.7
11.8
11.9
Sec. 12. CAPITOL AREA
ARCHITECTURAL AND PLANNING
BOARD
$
340,000
$
345,000

11.10
11.11
Sec. 13. MINNESOTA MANAGEMENT AND
BUDGET
$
22,398,000
$
23,691,000
11.12$1,000,000 in fiscal year 2016 and
11.13$2,000,000 in fiscal year 2017 are to maintain
11.14and upgrade statewide business systems,
11.15including, but not limited to, the statewide
11.16accounting system, the human resource and
11.17payroll system, the employment application
11.18system, the enterprise learning management
11.19system, the budget planning and analysis
11.20system, the fiscal note tracking system, and
11.21capital budget system.
11.22$121,000 the first year and $122,000 the
11.23second year are to develop and implement
11.24a return on taxpayer investment (ROTI)
11.25methodology using the Pew-MacArthur
11.26Results First framework to evaluate
11.27corrections and human services programs
11.28administered and funded by state and
11.29county governments. The commissioner
11.30shall engage and work with staff from
11.31Pew-MacArthur Results First, and shall
11.32consult with representatives of other state
11.33agencies, counties, legislative staff, the
11.34commissioners of corrections and human
11.35services, and other commissioners of state
12.1agencies and stakeholders to implement the
12.2established methodology. The commissioner
12.3of management and budget shall report
12.4on implementation progress and make
12.5recommendations to the governor and
12.6legislature by January 31, 2017.
12.7The commissioner must report to the chairs
12.8and ranking minority members of the
12.9House of Representatives State Government
12.10Finance Committee and the Senate State
12.11Departments and Veterans Budget Division
12.12by July 15, 2015, on the gainsharing program
12.13in Minnesota Statutes, Section 16A.90. The
12.14report must include information on how the
12.15commissioner has promoted the program
12.16to state employees, results achieved under
12.17the program, and recommendations for any
12.18legislative changes needed to make the
12.19program more effective.

12.20
Sec. 14. REVENUE
12.21
Subdivision 1.Total Appropriation
$
144,438,000
$
146,112,000
12.22
Appropriations by Fund
12.23
2016
2017
12.24
General
140,203,000
141,877,000
12.25
Health Care Access
1,749,000
1,749,000
12.26
12.27
Highway User Tax
Distribution
2,183,000
2,183,000
12.28
Environmental
303,000
303,000
12.29
Subd. 2.Tax System Management
115,822,000
117,496,000
12.30
Appropriations by Fund
12.31
General
111,587,000
113,261,000
12.32
Health Care Access
1,749,000
1,749,000
12.33
12.34
Highway User Tax
Distribution
2,183,000
2,183,000
12.35
Environmental
303,000
303,000
13.1Appropriation; Taxpayer Assistance.
13.2(a) $400,000 each year from the general
13.3fund is for grants to one or more nonprofit
13.4organizations, qualifying under section
13.5501(c)(3) of the Internal Revenue Code of
13.61986, to coordinate, facilitate, encourage, and
13.7aid in the provision of taxpayer assistance
13.8services. The unencumbered balance in the
13.9first year does not cancel but is available for
13.10the second year.
13.11(b) For purposes of this section, "taxpayer
13.12assistance services" means accounting
13.13and tax preparation services provided by
13.14volunteers to low-income, elderly, and
13.15disadvantaged Minnesota residents to help
13.16them file federal and state income tax returns
13.17and Minnesota property tax refund claims
13.18and to provide personal representation before
13.19the Department of Revenue and Internal
13.20Revenue Service.
13.21
Subd. 3.Debt Collection Management
28,616,000
28,616,000

13.22
Sec. 15. GAMBLING CONTROL
$
3,260,000
$
3,324,000
13.23These appropriations are from the lawful
13.24gambling regulation account in the special
13.25revenue fund.

13.26
Sec. 16. RACING COMMISSION
$
1,168,000
$
1,153,000
13.27
Appropriations by Fund
13.28
2016
2017
13.29
General
269,000
72,000
13.30
Special Revenue
899,000
1,081,000
13.31The general fund appropriation is for fiscal
13.32years 2016 and 2017 only.
14.1The special revenue fund appropriations are
14.2from the racing and card playing regulation
14.3accounts. The base for the special revenue
14.4fund appropriation is $972,000 in fiscal year
14.52018 and $971,000 in fiscal year 2019.
14.6The Racing Commission is directed to work
14.7in consultation with the racing industry
14.8to propose permanent dedicated funding
14.9changes to fully support the operations of
14.10the commission to ensure that racing is
14.11conducted in the public interest. These
14.12changes shall be reported to the Office of the
14.13Governor and to the majority and minority
14.14leaders of the relevant finance and policy
14.15legislative committees by November 1, 2015.

14.16
Sec. 17. STATE LOTTERY
14.17Notwithstanding Minnesota Statutes, section
14.18349A.10, subdivision 3, the operating budget
14.19must not exceed $31,000,000 in fiscal year
14.202016 and $31,000,000 in fiscal year 2017.

14.21
Sec. 18. AMATEUR SPORTS COMMISSION
$
300,000
$
300,000

14.22
14.23
Sec. 19. COUNCIL ON BLACK
MINNESOTANS
$
396,000
$
401,000

14.24
14.25
Sec. 20. COUNCIL ON ASIAN-PACIFIC
MINNESOTANS
$
359,000
$
364,000

14.26
14.27
Sec. 21. COUNCIL ON AFFAIRS OF
CHICANO/LATINO PEOPLE
$
381,000
$
386,000

14.28
Sec. 22. INDIAN AFFAIRS COUNCIL
$
569,000
$
576,000

14.29
14.30
Sec. 23. MINNESOTA HISTORICAL
SOCIETY
14.31
Subdivision 1.Total Appropriation
$
22,022,000
$
22,193,000
15.1The amounts that may be spent for each
15.2purpose are specified in the following
15.3subdivisions.
15.4
Subd. 2.Operations and Programs
21,576,000
21,822,000
15.5Notwithstanding Minnesota Statutes, section
15.6138.668, the Minnesota Historical Society
15.7may not charge a fee for its general tours at
15.8the Capitol, but may charge fees for special
15.9programs other than general tours.
15.10
Subd. 3.Fiscal Agent
15.11
(a) Minnesota International Center
39,000
39,000
15.12
(b) Minnesota Air National Guard Museum
17,000
17,000
15.13
(c) Minnesota Military Museum
100,000
100,000
15.14$50,000 in fiscal year 2016 and $50,000 in
15.15fiscal year 2017 are for an archivist position.
15.16This is a onetime appropriation and available
15.17until June 30, 2017.
15.18
(d) Farmamerica
190,000
115,000
15.19$75,000 in fiscal year 2016 is for a grant
15.20to Farmamerica, the Minnesota agriculture
15.21interpretive center, for capital improvements.
15.22
(e) Hockey Hall of Fame
100,000
100,000
15.23Balances Forward. Any unencumbered
15.24balance remaining in this subdivision the first
15.25year does not cancel but is available for the
15.26second year of the biennium.

15.27
Sec. 24. BOARD OF THE ARTS
15.28
Subdivision 1.Total Appropriation
$
7,522,000
$
7,530,000
15.29The amounts that may be spent for each
15.30purpose are specified in the following
15.31subdivisions.
16.1
Subd. 2.Operations and Services
583,000
591,000
16.2
Subd. 3.Grants Program
4,800,000
4,800,000
16.3
Subd. 4.Regional Arts Councils
2,139,000
2,139,000
16.4Unencumbered Balance Available. Any
16.5unencumbered balance remaining in this
16.6section the first year does not cancel, but is
16.7available for the second year of the biennium.
16.8Projects located in Minnesota; travel
16.9restriction. Money appropriated in this
16.10section and distributed as grants may only
16.11be spent on projects located in Minnesota.
16.12A recipient of a grant funded by an
16.13appropriation in this section must not use
16.14more than ten percent of the total grant for
16.15costs related to travel outside the state of
16.16Minnesota.

16.17
16.18
Sec. 25. MINNESOTA HUMANITIES
CENTER
$
675,000
$
675,000
16.19$325,000 in fiscal year 2016 and $325,000 in
16.20fiscal year 2017 are for the healthy eating,
16.21here at home program under Minnesota
16.22Statutes, section 138.912. No more than
16.23three percent of the appropriation may be
16.24used for the nonprofit administration of the
16.25grant program under Minnesota Statutes,
16.26section 138.912.

16.27
Sec. 26. BOARD OF ACCOUNTANCY
$
639,000
$
641,000

16.28
16.29
16.30
16.31
Sec. 27. BOARD OF ARCHITECTURE
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN
$
784,000
$
794,000

16.32
16.33
Sec. 28. BOARD OF COSMETOLOGIST
EXAMINERS
$
2,565,000
$
2,584,000

17.1
Sec. 29. BOARD OF BARBER EXAMINERS
$
321,000
$
325,000

17.2
17.3
Sec. 30. GENERAL CONTINGENT
ACCOUNTS
$
1,000,000
$
500,000
17.4
Appropriations by Fund
17.5
2016
2017
17.6
General
500,000
-0-
17.7
17.8
State Government
Special Revenue
400,000
400,000
17.9
17.10
Workers'
Compensation
100,000
100,000
17.11(a) The appropriations in this section
17.12may only be spent with the approval of
17.13the governor after consultation with the
17.14Legislative Advisory Commission pursuant
17.15to Minnesota Statutes, section 3.30.
17.16(b) If an appropriation in this section for
17.17either year is insufficient, the appropriation
17.18for the other year is available for it.
17.19(c) If a contingent account appropriation
17.20is made in one fiscal year, it should be
17.21considered a biennial appropriation.

17.22
Sec. 31. TORT CLAIMS
$
161,000
$
161,000
17.23These appropriations are to be spent by the
17.24commissioner of management and budget
17.25according to Minnesota Statutes, section
17.263.736, subdivision 7. If the appropriation for
17.27either year is insufficient, the appropriation
17.28for the other year is available for it.

17.29
17.30
Sec. 32. MINNESOTA STATE RETIREMENT
SYSTEM
17.31
Subdivision 1.Total Appropriation
$
6,552,000
$
8,936,000
18.1The amounts that may be spent for each
18.2purpose are specified in the following
18.3subdivisions.
18.4
18.5
Subd. 2.Combined Legislators and
Constitutional Officers Retirement Plan
18.6Under Minnesota Statutes, sections 3A.03,
18.7subdivision 2; 3A.04, subdivisions 3 and 4;
18.8and 3A.115.
18.9If an appropriation in this section for either
18.10year is insufficient, the appropriation for the
18.11other year is available for it.

18.12
18.13
Sec. 33. PUBLIC EMPLOYEES
RETIREMENT ASSOCIATION
$
6,000,000
$
6,000,000
18.14Notwithstanding Minnesota Statutes, section
18.15353.505, the state payments to the Public
18.16Employees Retirement Association on behalf
18.17of the former MERF division account are
18.18$6,000,000 on September 15, 2015 and
18.19$6,000,000 on September 15, 2016.

18.20
18.21
Sec. 34. TEACHERS RETIREMENT
ASSOCIATION
$
29,831,000
$
29,831,000
18.22The amounts estimated to be needed are as
18.23follows:
18.24Special Direct State Aid. $27,331,000 the
18.25first year and $27,331,000 the second year
18.26are for special direct state aid authorized
18.27under Minnesota Statutes, section 354.436.
18.28Special Direct State Matching Aid.
18.29$2,500,000 the first year and $2,500,000
18.30the second year are for special direct state
18.31matching aid authorized under Minnesota
18.32Statutes, section 354.435.

19.1
19.2
Sec. 35. ST. PAUL TEACHERS
RETIREMENT FUND
$
9,827,000
$
9,827,000
19.3The amounts estimated to be needed for
19.4special direct state aid to the first class
19.5city teachers retirement fund association
19.6authorized under Minnesota Statutes, section
19.7354A.12, subdivisions 3a and 3c.

19.8
Sec. 36. MILITARY AFFAIRS
19.9
Subdivision 1.Total Appropriation
$
19,368,000
$
19,368,000
19.10The amounts that may be spent for each
19.11purpose are specified in the following
19.12subdivisions.
19.13
Subd. 2.Maintenance of Training Facilities
9,661,000
9,661,000
19.14
Subd. 3.General Support
2,819,000
2,819,000
19.15
Subd. 4.Enlistment Incentives
6,888,000
6,888,000
19.16Appropriation Availability. If
19.17appropriations for either year of the biennium
19.18are insufficient, the appropriation from the
19.19other year is available. The appropriations
19.20for enlistment incentives are available until
19.21expended.
19.22Transfer Authority. Of the funds carried
19.23forward from fiscal year 2015 to fiscal
19.24year 2016, in the enlistment incentives
19.25appropriation, $10,000,000 in fiscal year
19.262016 may be transferred to the maintenance
19.27of training facilities appropriation to
19.28address significant maintenance backlog
19.29to the department's military training and
19.30community centers. This is a onetime
19.31transfer and is available until June 30, 2019.

19.32
Sec. 37. VETERANS AFFAIRS
20.1
Subdivision 1.Total Appropriation
$
69,106,000
$
73,679,000
20.2The amounts that may be spent for each
20.3purpose are specified in the following
20.4subdivisions.
20.5
Subd. 2.Veterans Programs and Services
16,393,000
16,461,000
20.6$44,000 for a transfer to the Department
20.7of Education to implement the expedited
20.8and temporary licensing provisions of
20.9Minnesota Statutes, section 197.4552. This
20.10appropriation is available until June 30, 2017.
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; and
20.32(3) legal issues.
21.1The assistance authorized under this
21.2paragraph must be made only to veterans who
21.3have resided in Minnesota for 30 days prior
21.4to application for assistance and according
21.5to other guidelines established by the
21.6commissioner. In order to avoid duplication
21.7of services, the commissioner must ensure
21.8that this assistance is coordinated with all
21.9other available programs for veterans.
21.10Honor Guards. $200,000 each year is for
21.11compensation for honor guards at the funerals
21.12of veterans under Minnesota Statutes, section
21.13197.231.
21.14Minnesota GI Bill. $200,000 each year is
21.15for the costs of administering the Minnesota
21.16GI Bill postsecondary educational benefits,
21.17on-the-job training, and apprenticeship
21.18program under Minnesota Statutes, section
21.19197.791. Of this amount, $100,000 is for
21.20transfer to the Office of Higher Education.
21.21Gold Star Program. $100,000 each year
21.22is for administering the Gold Star Program
21.23for surviving family members of deceased
21.24veterans.
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.
21.30
Subd. 3.Veterans Homes
52,713,000
57,218,000
21.31Veterans Homes Special Revenue Account.
21.32The general fund appropriations made to the
21.33department may be transferred to a veterans
21.34homes special revenue account in the special
22.1revenue fund in the same manner as other
22.2receipts are deposited according to Minnesota
22.3Statutes, section 198.34, and are appropriated
22.4to the department for the operation of
22.5veterans homes facilities and programs.
22.6Maximize Federal Reimbursements.
22.7The department will seek opportunities
22.8to maximize federal reimbursements of
22.9Medicare-eligible expenses and will provide
22.10annual reports to the commissioner of
22.11management and budget on the federal
22.12Medicare reimbursements received.
22.13Contingent upon future federal Medicare
22.14receipts, reductions to the homes' general
22.15fund appropriation may be made.

22.16
22.17
Sec. 38. APPROPRIATION
CANCELLATIONS
22.18All unspent funds, estimated to be $44,000,
22.19to implement the expedited and temporary
22.20licensing provisions of Minnesota Statutes,
22.21section 197.4552, under Laws 2014, chapter
22.22312, article 4, section 2, subdivision 8, are
22.23canceled to the general fund on June 30, 2015.
22.24All unspent funds, estimated to be $150,000,
22.25from the Web site redevelopment project
22.26appropriation under Laws 2013, chapter
22.27142, article 1, section 7, are canceled to the
22.28general fund on June 30, 2015.

22.29ARTICLE 2
22.30STATE GOVERNMENT OPERATIONS

22.31    Section 1. Minnesota Statutes 2014, section 3.8843, subdivision 5, is amended to read:
22.32    Subd. 5. Staff. Legislative staff must provide administrative and research assistance
22.33to the commission. The Legislative Coordinating Commission may, if funding is available,
22.34appoint staff to provide research assistance.

23.1    Sec. 2. [3.9735] EVALUATION OF ECONOMIC DEVELOPMENT INCENTIVE
23.2PROGRAMS.
23.3    Subdivision 1. Definitions. For purposes of this section, the terms defined in this
23.4section have the meanings given them.
23.5(a) "General incentive" means a state program, statutory provision, or tax expenditure,
23.6including tax credits, tax exemptions, tax deductions, grants, or loans, that is intended to
23.7encourage businesses to locate, expand, invest, or remain in Minnesota or to hire or retain
23.8employees in Minnesota. To be a general incentive, a state program, statutory provision,
23.9or tax expenditure must be funded by an appropriation from the general fund, and be
23.10available to multiple entities, projects, or associated projects or include eligibility criteria
23.11with the intent that it will be available to multiple entities, projects, or associated projects.
23.12(b) "Exclusive incentive" means a state program, statutory provision, tax
23.13expenditure, or section of a general incentive, including tax credits, tax exemptions, tax
23.14deductions, grants, or loans, that is intended to encourage a single specific entity, project,
23.15or associated projects to locate, expand, invest, or remain in Minnesota or to hire or retain
23.16employees in Minnesota.
23.17    Subd. 2. Selection of general incentives for review; schedule for evaluation;
23.18report. Annually, the legislative auditor shall submit to the Legislative Audit Commission
23.19a list of three to five general incentives proposed for review. In selecting general
23.20incentives to include on this list, the legislative auditor may consider what the incentive
23.21will cost state and local governments in actual spending and foregone revenue currently or
23.22projected into the future, the legislature's need for information about a general incentive
23.23that has an upcoming expiration date, and the legislature's need for regular information on
23.24the results of all major general incentives. Annually, the Legislative Audit Commission
23.25will select at least one general incentive for the legislative auditor's evaluation. The
23.26legislative auditor will evaluate the selected general incentive or incentives, prepared
23.27according to the evaluation plan established under subdivision 4, and submit a written
23.28report to the Legislative Audit Commission.
23.29    Subd. 3. Exclusive incentive schedule. The legislative auditor's schedule shall
23.30ensure that at least once every four years the legislative auditor will complete an analysis
23.31of best practices for exclusive incentives.
23.32    Subd. 4. Evaluation plans. By February 1, 2016, the Legislative Audit Commission
23.33shall establish evaluation plans that identify elements that the legislative auditor must
23.34include in evaluations of a general incentive and an exclusive incentive. The Legislative
23.35Audit Commission may modify the evaluation plans as needed.

24.1    Sec. 3. [6.481] COUNTY AUDITS.
24.2    Subdivision 1. Powers and duties. All the powers and duties conferred and imposed
24.3upon the state auditor shall be exercised and performed by the state auditor in respect to
24.4the offices, institutions, public property, and improvements of several counties of the
24.5state. The state auditor may visit, without previous notice, each county and examine all
24.6accounts and records relating to the receipt and disbursement of the public funds and the
24.7custody of the public funds and other property. The state auditor shall prescribe and install
24.8systems of accounts and financial reports that shall be uniform, so far as practicable, for
24.9the same class of offices.
24.10    Subd. 2. Annual audit required. A county must have an annual financial audit.
24.11A county may choose to have the audit performed by the state auditor, or may choose to
24.12have the audit performed by a CPA firm meeting the requirements of section 326A.05.
24.13The state auditor or a CPA firm may accept the records and audit of the Department of
24.14Human Services instead of examining county human service funds, if the audit of the
24.15Department of Human Services has been made within any period covered by the auditor's
24.16audit of other county records.
24.17    Subd. 3. CPA firm audit. A county audit performed by a CPA firm must meet
24.18the standards and be in the form required by the state auditor. The state auditor may
24.19require additional information from the CPA firm if the state auditor determines that is
24.20in the public interest, but the state auditor must accept the audit unless the state auditor
24.21determines it does not meet recognized industry auditing standards or is not in the form
24.22required by the state auditor. The state auditor may make additional examinations as the
24.23auditor determines to be in the public interest.
24.24    Subd. 4. Audit availability; data. A copy of the annual audit by the state auditor or
24.25by a CPA firm must be available for public inspection in the Office of the State Auditor and
24.26in the Office of the County Auditor. If an audit is performed by a CPA firm, data relating
24.27to the audit are subject to the same data classifications that apply under section 6.715. A
24.28CPA firm conducting a county audit must provide access to data relating to the audit and is
24.29liable for unlawful disclosure of the data as if it were a government entity under chapter 13.
24.30    Subd. 5. Reporting. If an audit conducted by the state auditor or a CPA firm
24.31discloses malfeasance, misfeasance, or nonfeasance, the auditor must report this to the
24.32county attorney, who shall institute civil and criminal proceedings as the law and the
24.33protection of the public interests requires.
24.34    Subd. 6. Payments to state auditor. A county audited by the state auditor must
24.35pay the state auditor for the costs and expenses of the audit. If the state auditor makes
24.36additional examinations of a county whose audit is performed by a CPA firm, the county
25.1must pay the auditor for the cost of these examinations. Payments must be deposited in
25.2the state auditor enterprise fund.
25.3    Subd. 7. Procedures for change of auditor. A county that plans to change to or
25.4from the state auditor and a CPA firm must notify the state auditor of this change by
25.5August 1 of an even-numbered year. Upon this notice, the following calendar year will be
25.6the first year's records that will be subject to an audit by the new entity. A county that
25.7changes to or from the state auditor must have two annual audits done by the new entity.
25.8EFFECTIVE DATE.This section is effective August 1, 2016.

25.9    Sec. 4. Minnesota Statutes 2014, section 10.43, is amended to read:
25.1010.43 TELEPHONE USE; APPROVAL.
25.11(a) Each representative, senator, constitutional officer, judge, and head of a state
25.12department or agency shall sign the person's monthly long-distance telephone bills paid
25.13by the state as evidence of the person's approval of each bill. This signature requirement
25.14does not apply to a month in which the person's long-distance phone bill paid by the
25.15state is less than $5.
25.16(b) Even if the monthly long-distance phone bill paid by the state for a person
25.17subject to this section is less than $5, the person is responsible for paying that portion of
25.18the bill that does not relate to state business. As provided in section 10.46, long-distance
25.19telephone bills paid by the state are public data, regardless of the amount of the bills.
25.20EFFECTIVE DATE.This section is effective for telephone bills for usage on or
25.21after July 1, 2015.

25.22    Sec. 5. [15.0145] ETHNIC COUNCILS.
25.23    Subdivision 1. Three ethnic councils; creation. (a) The Minnesota Council on
25.24Latino Affairs includes public members with an ethnic heritage from Mexico, any of the
25.25countries in Central or South America, Cuba, the Dominican Republic, or Puerto Rico.
25.26(b) The Council for Minnesotans of African Heritage includes public members of
25.27black African ancestry.
25.28(c) The Council on Asian-Pacific Minnesotans includes public members with an
25.29ethnic heritage from any of the countries east of, and including, Afghanistan or the
25.30Pacific Islands.
25.31    Subd. 2. Membership. (a) Each council has 15 voting members. Eleven members
25.32of each council are public members appointed by the governor. Four members of each
25.33council are legislators.
26.1(b) The governor shall appoint 11 members of each council as follows:
26.2(1) the Minnesota Council on Latino Affairs must include one member representing
26.3each of the state's congressional districts and three members appointed at-large. The
26.4council must include at least five women. The governor must attempt to ensure that
26.5the demographic composition of council members accurately reflects the demographic
26.6composition of Minnesota's Latino community, including recent immigrants, as
26.7determined by the state demographer;
26.8(2) the Council for Minnesotans of African Heritage must include members who are
26.9broadly representative of the African heritage community of the state. The council must
26.10include at least five women. At least three members must be first or second generation
26.11African immigrants, who generally reflect the demographic composition of these African
26.12immigrants, as determined by the state demographer; and
26.13(3) the Council on Asian-Pacific Minnesotans must include one member from each
26.14of the five ancestries with the state's highest percentages of Asian-Pacific populations,
26.15as determined by the state demographer. The other six members must be broadly
26.16representative of the rest of the Asian-Pacific population, with no more than one council
26.17member from any one ancestry. The council must include at least five women. For
26.18purposes of this clause, ancestry refers to heritage that is commonly accepted in Minnesota
26.19as a unique population.
26.20(c) Four legislators are voting members of each council. The speaker of the house
26.21and the house minority leader shall each appoint one member to each council. The
26.22Subcommittee on Committees of the senate Committee on Rules and Administration shall
26.23appoint one member of the majority caucus and one member of the minority caucus to
26.24each council.
26.25(d) The governor may appoint a commissioner of a state agency or a designee of that
26.26commissioner to serve as an ex-officio, nonvoting member of a council.
26.27    Subd. 3. Appointments; terms; removal. (a) In making appointments to a council,
26.28the governor shall consider an appointee's proven dedication and commitment to the
26.29council's community and any expertise possessed by the appointee that might be beneficial
26.30to the council, such as experience in public policy, legal affairs, social work, business,
26.31or management. The executive director of a council and legislative members may offer
26.32advice to the governor on applicants seeking appointment.
26.33(b) Terms, compensation, and filling of vacancies for members appointed by the
26.34governor are as provided in section 15.059. Removal of members appointed by the
26.35governor is governed by section 15.059, except that: (1) a member who missed more than
26.36half of the council meetings convened during a 12-month period automatically is removed
27.1from the council; and (2) a member appointed by the governor may be removed by a vote
27.2of three of the four legislative members of the council. The chair of a council shall inform
27.3the governor of the need for the governor to fill a vacancy on the council. Legislative
27.4members serve at the pleasure of their appointing authority.
27.5(c) A member appointed by the governor may serve no more than a total of eight
27.6years on a council. A legislator may serve no more than eight consecutive years or 12
27.7nonconsecutive years on any one council.
27.8    Subd. 4. Training; executive committee; meetings; support. (a) A member
27.9appointed by the governor must attend orientation training within the first six months of
27.10service for each term. The commissioner of administration must arrange for the training
27.11to include but not be limited to the legislative process, government data practices, open
27.12meeting law, Robert's Rules of Order, fiscal management, and human resources. The
27.13governor must remove a member who does not complete the training.
27.14(b) Each council shall annually elect from among the members appointed by the
27.15governor a chair and other officers it deems necessary. These officers and one legislative
27.16member selected by the council shall serve as the executive committee of the council.
27.17(c) Forty percent of voting members of a council constitutes a quorum. A quorum is
27.18required to conduct council business. A council member may not vote on any action if the
27.19member has a conflict of interest under section 10A.07.
27.20(d) Each council shall receive administrative support from the commissioner of
27.21administration under section 16B.371. The council may contract in its own name but may
27.22not accept or receive a loan or incur indebtedness except as otherwise provided by law.
27.23Contracts must be approved by a majority of the members of the council and executed by
27.24the chair and the executive director. The council may apply for, receive, and expend in
27.25its own name grants and gifts of money consistent with the powers and duties specified
27.26in this section.
27.27(e) The attorney general shall provide legal services to the councils on behalf of the
27.28state on all matters relating to the councils, including matters relating to the state as the
27.29employer of the executive directors of the council, and other council staff.
27.30    Subd. 5. Executive director; staff. (a) The Legislative Coordinating Commission
27.31must appoint an executive director for each council. The executive director must be
27.32experienced in administrative activities and familiar with the challenges and needs of
27.33the ethnic council's larger community. The executive director serves in the unclassified
27.34service at the pleasure of the Legislative Coordinating Commission.
28.1(b) The Legislative Coordinating Commission must establish a process for recruiting
28.2and selecting applicants for the executive director positions. This process must include
28.3consultation and collaboration with the applicable council.
28.4(c) The executive director and applicable council members must work together in
28.5fulfilling council duties. The executive director must consult with the commissioners of
28.6administration and management and budget to ensure appropriate financial, purchasing,
28.7human resources, and other services for operation of the council. The executive director
28.8must appoint and supervise the work of other staff necessary to carry out the duties of the
28.9council. The executive director and other council staff are executive branch employees.
28.10    Subd. 6. Duties of council. (a) A council must work for the implementation
28.11of economic, social, legal, and political equality for its constituency. The council shall
28.12work with the legislature and governor to carry out this work by performing the duties
28.13in this section.
28.14(b) A council shall advise the governor and the legislature on issues confronting the
28.15constituency of the council. This may include, but is not limited to, presenting the results
28.16of surveys, studies, and community forums to the appropriate executive departments
28.17and legislative committees.
28.18(c) A council shall advise the governor and the legislature of administrative
28.19and legislative changes needed to improve the economic and social condition of the
28.20constituency of the council. This may include but is not limited to working with legislators
28.21to develop legislation to address these issues and to work for passage of the legislation.
28.22This may also include making recommendations regarding the state's affirmative action
28.23program and the state's targeted group small business program, or working with state
28.24agencies and organizations to develop business opportunities and promote economic
28.25development for the constituency of the council.
28.26(d) A council shall advise the governor and the legislature of the implications
28.27and effect of proposed administrative and legislative changes on the constituency of
28.28the council. This may include but is not limited to tracking legislation, testifying as
28.29appropriate, and meeting with executive departments and legislators.
28.30(e) A council shall serve as a liaison between state government and organizations that
28.31serve the constituency of the council. This may include but is not limited to working with
28.32these organizations to carry out the duties in paragraphs (a) to (d), and working with these
28.33organizations to develop informational programs or publications to involve and empower
28.34the constituency in seeking improvement in their economic and social conditions.
28.35(f) A council shall perform or contract for the performance of studies designed
28.36to suggest solutions to the problems of the constituency of the council in the areas of
29.1education, employment, human rights, health, housing, social welfare, and other related
29.2areas.
29.3(g) In carrying out duties under this subdivision, councils may act to advise on issues
29.4that affect the shared constituencies of more than one council.
29.5    Subd. 7. Duties of council members. A council member shall:
29.6(1) attend and participate in scheduled meetings and be prepared by reviewing
29.7meeting notes;
29.8(2) maintain and build communication with the community represented;
29.9(3) collaborate with the council and executive director in carrying out the council's
29.10duties; and
29.11(4) participate in activities the council or executive director deem appropriate and
29.12necessary to facilitate the goals and duties of the council.
29.13    Subd. 8. Reports. A council must report on the measurable outcomes achieved in
29.14the council's current strategic plan to meet its statutory duties, along with the specific
29.15objectives and outcome measures proposed for the following year. The council must
29.16submit the report by January 15 each year to the chairs of the committees in the house of
29.17representatives and the senate with primary jurisdiction over state government operations.
29.18Each report must cover the calendar year of the year before the report is submitted. The
29.19specific objectives and outcome measures for the following current year must focus on
29.20three or four achievable objectives, action steps, and measurable outcomes for which
29.21the council will be held accountable. The strategic plan may include other items that
29.22support the statutory purposes of the council but should not distract from the primary
29.23statutory proposals presented. The funding request of each council, after approval by the
29.24Legislative Coordinating Commission, must also be presented by February 1 in each
29.25odd-numbered year.

29.26    Sec. 6. Minnesota Statutes 2014, section 16A.065, is amended to read:
29.2716A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES
29.28DOCUMENTS.
29.29Notwithstanding section 16A.41, subdivision 1, the commissioner may allow an
29.30agency to make advance deposits or payments for software or software maintenance
29.31services for state-owned or leased electronic data processing equipment, for information
29.32technology hosting services, for sole source maintenance agreements where it is not
29.33cost-effective to pay in arrears, for exhibit booth space or boat slip rental when required
29.34by the renter to guarantee the availability of space, for registration fees where advance
29.35payment is required or advance payment discount is provided, and for newspaper,
30.1magazine, and other subscription fees customarily paid for in advance. The commissioner
30.2may also allow advance deposits by any department with the Library of Congress and
30.3federal Supervisor of Documents for items to be purchased from those federal agencies.

30.4    Sec. 7. Minnesota Statutes 2014, section 16A.152, subdivision 8, is amended to read:
30.5    Subd. 8. Report on budget reserve percentage. (a) The commissioner of
30.6management and budget shall develop and annually review a methodology for evaluating
30.7the adequacy of the budget reserve based on the volatility of Minnesota's general fund
30.8tax structure. The review must take into consideration relevant statistical and economic
30.9literature. After completing the review, the commissioner may revise the methodology
30.10if necessary. The commissioner must use the methodology to annually estimate the
30.11percentage of the current biennium's general fund nondedicated revenues recommended
30.12as a budget reserve.
30.13    (b) By January 15 September 30 of each year, the commissioner shall report
30.14the percentage of the current biennium's general fund nondedicated revenue that is
30.15recommended as a budget reserve to the chairs and ranking minority members of the
30.16legislative committees with jurisdiction over the Department of Management and Budget
30.17senate committee on finance, the house of representatives committee on ways and means,
30.18and the senate and house of representatives committees on taxes. The report must also
30.19specify:
30.20    (1) whether the commissioner revised the recommendation as a result of significant
30.21changes in the mix of general fund taxes or the base of one or more general fund taxes;
30.22    (2) whether the commissioner revised the recommendation as a result of a revision
30.23to the methodology; and
30.24    (3) any additional appropriate information.
30.25EFFECTIVE DATE.This section is effective July 1, 2015.

30.26    Sec. 8. [16B.4805] ACCOMMODATION REIMBURSEMENT.
30.27    Subdivision 1. Definitions. "Reasonable accommodation" as used in this section
30.28has the meaning given in section 363A.08. "State agency" as used in this section has the
30.29meaning given in section 16A.011, subdivision 12. "Reasonable accommodations eligible
30.30for reimbursement" means:
30.31(1) reasonable accommodations provided to applicants for employment;
30.32(2) reasonable accommodations for employees for services that will need to be
30.33provided on a periodic or ongoing basis; or
31.1(3) reasonable accommodations that involve onetime expenses that total more than
31.2$1,000 for an employee in a fiscal year.
31.3    Subd. 2. Reimbursement for making reasonable accommodation. The
31.4commissioner of administration shall reimburse state agencies for expenses incurred in
31.5making reasonable accommodations eligible for reimbursement for agency employees and
31.6applicants for employment to the extent that funds are available in the accommodation
31.7account established under subdivision 3 for this purpose.
31.8    Subd. 3. Accommodation account established. The accommodation account
31.9is created as an account in the special revenue fund for reimbursing state agencies for
31.10expenses incurred in providing reasonable accommodation eligible for reimbursement for
31.11agency employees and applicants for agency employment.
31.12    Subd. 4. Administration costs. The commissioner may use up to 15 percent of the
31.13biennial appropriation for administration of this section.
31.14    Subd. 5. Notification. By August 1, 2015, or within 30 days of final enactment,
31.15whichever is later, and each year thereafter by June 30, the commissioner of administration
31.16must notify state agencies that reimbursement for expenses incurred to make reasonable
31.17accommodation eligible for reimbursement for agency employees and applicants for
31.18agency employment is available under this section.
31.19    Subd. 6. Report. By January 31 of each year, the commissioner of administration
31.20must report to the chairs and ranking minority members of the house of representatives and
31.21the senate committees with jurisdiction over state government finance on the use of the
31.22central accommodation account during the prior calendar year. The report must include:
31.23(1) the number and type of accommodations requested;
31.24(2) the cost of accommodations requested;
31.25(3) the state agencies from which the requests were made;
31.26(4) the number of requests made for employees and the number of requests for
31.27applicants for employment;
31.28(5) the number and type of accommodations that were not provided;
31.29(6) any remaining balance left in the account;
31.30(7) if the account was depleted, the date on which funds were exhausted and the
31.31number, type, and cost of accommodations that were not reimbursed to state agencies; and
31.32(8) a description of how the account was promoted to state agencies.
31.33EFFECTIVE DATE.This section is effective July 1, 2015. Reimbursement is
31.34available for accommodation expenses incurred after June 30, 2015.

31.35    Sec. 9. Minnesota Statutes 2014, section 16B.97, subdivision 1, is amended to read:
32.1    Subdivision 1. Grant agreement. (a) A grant agreement is a written instrument or
32.2electronic document defining a legal relationship between a granting agency and a grantee
32.3when the principal purpose of the relationship is to transfer cash or something of value
32.4to the recipient to support a public purpose authorized by law instead of acquiring by
32.5professional or technical contract, purchase, lease, or barter property or services for the
32.6direct benefit or use of the granting agency.
32.7    (b) This section does not apply to general obligation grants as defined by section
32.816A.695 and capital project grants to political subdivisions as defined by section 16A.86.

32.9    Sec. 10. Minnesota Statutes 2014, section 16B.98, subdivision 1, is amended to read:
32.10    Subdivision 1. Limitation. (a) As a condition of receiving a grant from
32.11an appropriation of state funds, the recipient of the grant must agree to minimize
32.12administrative costs. The granting agency is responsible for negotiating appropriate limits
32.13to these costs so that the state derives the optimum benefit for grant funding.
32.14(b) This section does not apply to general obligation grants as defined by section
32.1516A.695 and also capital project grants to political subdivisions as defined by section
32.1616A.86.

32.17    Sec. 11. Minnesota Statutes 2014, section 16B.98, subdivision 11, is amended to read:
32.18    Subd. 11. Encumbrance exception. Notwithstanding subdivision 5, paragraph (a),
32.19clause (2), or section 16C.05, subdivision 2, paragraph (a), clause (3), agencies may
32.20permit a specifically named, legislatively appropriated, noncompetitive grant recipient to
32.21incur eligible expenses based on an agreed upon work plan and budget for up to 60 days
32.22prior to an encumbrance being established in the accounting system. For a grant funded
32.23in whole or in part with state general obligation bond proceeds, an agency may permit
32.24incurring of expenses under this subdivision only with prior approval of the commissioner
32.25of management and budget.

32.26    Sec. 12. Minnesota Statutes 2014, section 16C.144, is amended to read:
32.2716C.144 GUARANTEED ENERGY-SAVINGS PROGRAM.
32.28    Subdivision 1. Definitions. The following definitions apply to this section.
32.29(a) "Utility" means electricity, natural gas, or other energy resource, water, and
32.30wastewater.
32.31(b) "Utility cost savings" means the difference between the utility costs after
32.32installation of the utility cost-savings measures pursuant to the guaranteed energy-savings
32.33agreement and the baseline utility costs after baseline adjustments have been made.
33.1(c) "Baseline" means the preagreement utilities, operations, and maintenance costs.
33.2(d) "Utility cost-savings measure" means a measure that produces utility cost savings
33.3or operation and maintenance cost savings.
33.4(e) "Operation and maintenance cost savings" means a measurable difference
33.5between operation and maintenance costs after the installation of the utility cost-savings
33.6measures pursuant to the guaranteed energy-savings agreement and the baseline operation
33.7and maintenance costs after inflation adjustments have been made. Operation and
33.8maintenance costs savings shall not include savings from in-house staff labor.
33.9(f) "Guaranteed energy-savings agreement" means an agreement for the installation
33.10of one or more utility cost-savings measures that includes the qualified provider's
33.11guarantee as required under subdivision 2.
33.12(g) "Baseline adjustments" means adjusting the utility cost-savings baselines
33.13annually for changes in the following variables:
33.14(1) utility rates;
33.15(2) number of days in the utility billing cycle;
33.16(3) square footage of the facility;
33.17(4) operational schedule of the facility;
33.18(5) facility temperature set points;
33.19(6) weather; and
33.20(7) amount of equipment or lighting utilized in the facility.
33.21(h) "Inflation adjustment" means adjusting the operation and maintenance
33.22cost-savings baseline annually for inflation.
33.23(i) "Lease purchase agreement Project financing" means an agreement any type of
33.24financing including but not limited to lease, lease purchase, installment agreements, or
33.25bonds issued by an entity, other than the state, with authority to issue bonds, obligating the
33.26state to make regular lease payments to satisfy the lease costs of the utility cost-savings
33.27measures until the final payment, after which time the utility cost-savings measures
33.28become the sole property of the state of Minnesota.
33.29(j) "Qualified provider" means a person or business experienced in the design,
33.30implementation, and installation of utility cost-savings measures.
33.31(k) "Engineering report" means a report prepared by a professional engineer licensed
33.32by the state of Minnesota summarizing estimates of all costs of installations, modifications,
33.33or remodeling, including costs of design, engineering, installation, maintenance, repairs,
33.34and estimates of the amounts by which utility and operation and maintenance costs will be
33.35reduced.
34.1(l) "Capital cost avoidance" means money expended by a state agency to pay for
34.2utility cost-savings measures with a guaranteed savings agreement so long as the measures
34.3that are being implemented to achieve the utility, operation, and maintenance cost savings
34.4are a significant portion of an overall project as determined by the commissioner.
34.5(m) "Guaranteed energy-savings program guidelines" means policies, procedures,
34.6and requirements of guaranteed savings agreements established by the Department of
34.7Administration.
34.8    Subd. 2. Guaranteed energy-savings agreement. The commissioner may enter
34.9into a guaranteed energy-savings agreement with a qualified provider if:
34.10(1) the qualified provider is selected through a competitive process in accordance
34.11with the guaranteed energy-savings program guidelines within the Department of
34.12Administration;
34.13(2) the qualified provider agrees to submit an engineering report prior to the
34.14execution of the guaranteed energy-savings agreement. The cost of the engineering report
34.15may be considered as part of the implementation costs if the commissioner enters into a
34.16guaranteed energy-savings agreement with the provider;
34.17(3) the term of the guaranteed energy-savings agreement shall not exceed 25 years
34.18from the date of final installation;
34.19(4) the commissioner finds that the amount it the state would spend, less the amount
34.20contributed for capital cost avoidance, on the utility cost-savings measures recommended
34.21in the engineering report will not exceed the amount to be saved in utility operation and
34.22maintenance costs over 25 years from the date of implementation of utility cost-savings
34.23measures;
34.24(5) the qualified provider provides a written guarantee that the annual utility,
34.25operation, and maintenance cost savings during the term of the guaranteed energy-savings
34.26agreement will meet or exceed the annual payments due under a lease purchase agreement
34.27the project financing. The qualified provider shall reimburse the state for any shortfall of
34.28guaranteed utility, operation, and maintenance cost savings; and
34.29(6) the qualified provider gives a sufficient bond in accordance with section
34.30574.26 to the commissioner for the faithful implementation and installation of the utility
34.31cost-savings measures.
34.32    Subd. 3. Lease purchase agreement Project financing. The commissioner
34.33may enter into a lease purchase agreement project financing with any party for the
34.34implementation of utility cost-savings measures in accordance with the guaranteed
34.35energy-savings agreement. The implementation costs of the utility cost-savings measures
34.36recommended in the engineering report shall not exceed the amount to be saved in utility
35.1and operation and maintenance costs over the term of the lease purchase agreement. The
35.2term of the lease purchase agreement project financing shall not exceed 25 years from
35.3the date of final installation. The lease project financing is assignable in accordance with
35.4terms approved by the commissioner of management and budget.
35.5    Subd. 4. Use of capital cost avoidance. The affected state agency may contribute
35.6funds for capital cost avoidance for guaranteed energy-savings agreements. Use of capital
35.7cost avoidance is subject to the guaranteed energy-savings program guidelines within the
35.8Department of Administration.
35.9    Subd. 5. Independent report. For each guaranteed energy-savings agreement
35.10entered into, the commissioner of administration shall contract with an independent third
35.11party to evaluate the cost-effectiveness of each utility cost-savings measure implemented
35.12to ensure that such measures were the least-cost measures available. For the purposes of
35.13this section, "independent third party" means an entity not affiliated with the qualified
35.14provider, that is not involved in creating or providing conservation project services to that
35.15provider, and that has expertise (or access to expertise) in energy-savings practices.

35.16    Sec. 13. Minnesota Statutes 2014, section 16C.16, subdivision 2, is amended to read:
35.17    Subd. 2. Small business. The commissioner shall adopt rules defining the size
35.18standards for "small business" found in Code of Federal Relations, title 49, section
35.1926.65, for purposes of sections 16C.16 to 16C.21, 137.31, 137.35, 161.321, and 473.142.
35.20The definition must include only businesses with their, provided that the business has
35.21its principal place of business in Minnesota. The definition must establish different
35.22size standards for various types of businesses. In establishing these standards, the
35.23commissioner must consider the differences among industries caused by the size of the
35.24market for goods or services and the relative size and market share of the competitors
35.25operating in those markets.

35.26    Sec. 14. Minnesota Statutes 2014, section 16C.16, subdivision 6a, is amended to read:
35.27    Subd. 6a. Veteran-owned small businesses. (a) Except when mandated by the
35.28federal government as a condition of receiving federal funds, the commissioner shall
35.29award up to a six percent preference, but no less than the percentage awarded to any
35.30other group under this section, in the amount bid on state procurement to certified small
35.31businesses that are majority-owned and operated by veterans.
35.32(b) The purpose of this designation is to facilitate the transition of veterans from
35.33military to civilian life, and to help compensate veterans for their sacrifices, including but
36.1not limited to their sacrifice of health and time, to the state and nation during their military
36.2service, as well as to enhance economic development within Minnesota.
36.3(c) Before the commissioner certifies that a small business is majority-owned and
36.4operated by a veteran, the commissioner of veterans affairs must verify that the owner of
36.5the small business is a veteran, as defined in section 197.447.

36.6    Sec. 15. Minnesota Statutes 2014, section 16C.16, is amended by adding a subdivision
36.7to read:
36.8    Subd. 13. State-funded projects. (a) Notwithstanding section 16C.001, this
36.9subdivision applies to contracts for state-funded capital improvement projects in excess of
36.10$100,000 that are issued by organizations not subject to the small business requirements of
36.11this section, including municipalities as defined in section 466.01, subdivision 1.
36.12(b) Organizations administering contracts described in paragraph (a) shall promote
36.13the use of targeted group businesses designated under this section and take steps to remove
36.14barriers to equitable participation of targeted group businesses.
36.15(c) Organizations shall cooperate with the commissioner's efforts to monitor and
36.16measure compliance with this subdivision in the performance of state-funded contracts.

36.17    Sec. 16. Minnesota Statutes 2014, section 16C.19, is amended to read:
36.1816C.19 ELIGIBILITY; RULES.
36.19(a) A small business wishing to participate in the programs under section 16C.16,
36.20subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt
36.21by rule standards and procedures for certifying that small targeted group businesses,
36.22small businesses located in economically disadvantaged areas, and veteran-owned small
36.23businesses are eligible to participate under the requirements of sections 16C.16 to 16C.21.
36.24The commissioner shall adopt by rule standards and procedures for hearing appeals and
36.25grievances and other rules necessary to carry out the duties set forth in sections 16C.16
36.26to 16C.21.
36.27(b) The commissioner may make rules which exclude or limit the participation of
36.28nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers,
36.29manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.
36.30(c) The commissioner may make rules that set time limits and other eligibility limits
36.31on business participation in programs under sections 16C.16 to 16C.21.
36.32(d) Notwithstanding paragraph (c) (a), for purposes of sections 16C.16 to 16C.21, a
36.33veteran-owned small business, the principal place of business of which is in Minnesota,
36.34is certified if:
37.1(1) it has been verified by the United States Department of Veterans Affairs as
37.2being either a veteran-owned small business or a service-disabled veteran-owned small
37.3business, in accordance with Public Law 109-461 and Code of Federal Regulations, title
37.438, part 74.; or
37.5(2) the veteran-owned small business supplies the commissioner with proof that the
37.6small business is majority-owned and operated by:
37.7(i) a veteran as defined in section 197.447; or
37.8(ii) a veteran with a service-connected disability, as determined at any time by the
37.9United States Department of Veterans Affairs.
37.10(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying
37.11veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may
37.12be read to include veteran-owned small businesses. In addition to the documentation
37.13required in Minnesota Rules, part 1230.1700, the veteran owner must have been
37.14discharged under honorable conditions from active service, as indicated by the veteran
37.15owner's most current United States Department of Defense form DD-214.
37.16(f) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a
37.17minority- or woman-owned small business, the principal place of business of which is
37.18in Minnesota, is certified if it has been certified by the Minnesota unified certification
37.19program under the provisions of Code of Federal Regulations, title 49, part 26.
37.20(g) The commissioner may adopt rules to implement the programs under section
37.2116C.16, subdivisions 4 to 7, using the expedited rulemaking process in section 14.389.

37.22    Sec. 17. [138.912] HEALTHY EATING, HERE AT HOME.
37.23    Subdivision 1. Establishment. The healthy eating, here at home program is
37.24established to provide incentives for low-income Minnesotans to use federal Supplemental
37.25Nutrition Assistance Program (SNAP) benefits for healthy purchases at Minnesota-based
37.26farmers' markets.
37.27    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
37.28(b) "Healthy eating, here at home" means a program administered by the Minnesota
37.29Humanities Center to provide incentives for low-income Minnesotans to use SNAP
37.30benefits for healthy purchases at Minnesota-based farmers' markets.
37.31(c) "Healthy purchases" means SNAP-eligible foods.
37.32(d) "Minnesota-based farmers' market" means a physical market as defined in section
37.3328A.151, subdivision 1, paragraph (b), and also includes mobile markets.
37.34(e) "Voucher" means a physical or electronic credit.
38.1(f) "Eligible household" means an individual or family that is determined to be a
38.2recipient of SNAP.
38.3    Subd. 3. Grants. The Minnesota Humanities Center shall allocate grant funds to
38.4nonprofit organizations that work with Minnesota-based farmers' markets to provide up
38.5to $10 vouchers to SNAP participants who use electronic benefits transfer (EBT) cards
38.6for healthy purchases. Funds may also be provided for vouchers distributed through
38.7nonprofit organizations engaged in healthy cooking and food education outreach to
38.8eligible households for use at farmers' markets. Funds appropriated under this section may
38.9not be used for healthy cooking classes or food education outreach. When awarding
38.10grants, the Minnesota Humanities Center must consider how the nonprofit organizations
38.11will achieve geographic balance, including specific efforts to reach eligible households
38.12across the state, and the organizations' capacity to manage the programming and outreach.
38.13    Subd. 4. Household eligibility; participation. To be eligible for a healthy eating,
38.14here at home voucher, an eligible household must meet the Minnesota SNAP eligibility
38.15requirements under section 256D.051.
38.16    Subd. 5. Permissible uses; information provided. An eligible household may use
38.17the voucher toward healthy purchases at Minnesota-based farmers' markets. Every eligible
38.18household that receives a voucher must be informed of the allowable uses of the voucher.
38.19    Subd. 6. Program reporting. The nonprofit organizations that receive grant funds
38.20must report annually to the Minnesota Humanities Center with information regarding the
38.21operation of the program, including the number of vouchers issued and the number of
38.22people served. To the extent practicable, the nonprofit organizations must report on the
38.23usage of the vouchers and evaluate the program's effectiveness.
38.24    Subd. 7. Grocery inclusion. The commissioner of human services must submit a
38.25waiver request to the federal United States Department of Agriculture seeking approval
38.26for the inclusion of Minnesota grocery stores in this program so that SNAP participants
38.27may use the vouchers for healthy produce at grocery stores. Grocery store participation is
38.28voluntary and a grocery store's associated administrative costs will not be reimbursed.

38.29    Sec. 18. Minnesota Statutes 2014, section 148.57, is amended by adding a subdivision
38.30to read:
38.31    Subd. 5. Expedited and temporary licensing for former and current members
38.32of the military. (a) Applicants seeking licensure according to this subdivision must be:
38.33(1) an active duty military member;
38.34(2) the spouse of an active duty military member; or
39.1(3) a veteran who has left service in the two years preceding the date of license
39.2application, and has confirmation of an honorable or general discharge status.
39.3(b) A qualified applicant under this subdivision must provide evidence of:
39.4(1) a current valid license, certificate, or permit in another state without history of
39.5disciplinary action by a regulatory authority in the other state; and
39.6(2) a current criminal background study without a criminal conviction that is
39.7determined by the board to adversely affect the applicant's ability to become licensed.
39.8(c) A temporary license issued under this subdivision is effective for six months
39.9from the initial temporary licensure date.
39.10(d) During the temporary license period, the individual shall complete the licensed
39.11optometrist application for licensure.
39.12(e) In order to remain licensed after the expiration of the temporary license, an
39.13individual must meet the requirements in section 148.57, subdivisions 1 and 2.

39.14    Sec. 19. Minnesota Statutes 2014, section 148.624, subdivision 5, is amended to read:
39.15    Subd. 5. Expedited and temporary licensing for former and current members
39.16of the military permit. The board shall issue a temporary permit to members of the
39.17military in accordance with section 197.4552. (a) Applicants seeking licensure according
39.18to this subdivision must be:
39.19(1) an active duty military member;
39.20(2) the spouse of an active duty military member; or
39.21(3) a veteran who has left service in the two years preceding the date of license
39.22application, and has confirmation of an honorable or general discharge status.
39.23(b) A qualified applicant under this subdivision must provide evidence of:
39.24(1) a current valid license in another state without history of disciplinary action by a
39.25regulatory authority in the other state; and
39.26(2) a current criminal background study without a criminal conviction that is
39.27determined by the board to adversely affect the applicant's ability to become licensed.
39.28(c) A temporary license issued under this subdivision is effective for six months
39.29from the initial temporary licensure date.
39.30(d) During the temporary license period, the individual shall complete the licensed
39.31dietitian or nutritionist application for licensure.
39.32(e) In order to remain licensed after the expiration of the temporary license, an
39.33individual must meet the full licensure requirements.
39.34(f) The fee for the temporary permit license is $250.

40.1    Sec. 20. Minnesota Statutes 2014, section 148B.33, is amended by adding a
40.2subdivision to read:
40.3    Subd. 3. Expedited and temporary licensing for former and current members
40.4of the military. (a) Applicants seeking licensure according to this subdivision must be:
40.5(1) an active duty military member;
40.6(2) the spouse of an active duty military member; or
40.7(3) a veteran who has left service in the two years preceding the date of license
40.8application, and has confirmation of an honorable or general discharge status.
40.9(b) A qualified applicant under this subdivision must provide evidence of:
40.10(1) a current valid license, certificate, or permit in another state without history of
40.11disciplinary action by a regulatory authority in the other state; and
40.12(2) a current criminal background study without a criminal conviction that is
40.13determined by the board to adversely affect the applicant's ability to become licensed.
40.14(c) A temporary license issued under this subdivision is effective for six months
40.15from the initial temporary licensure date.
40.16(d) During the temporary license period, the individual shall complete the licensed
40.17marriage and family therapist application for licensure.
40.18(e) In order to remain licensed after the expiration of the temporary license, an
40.19individual must meet the requirements in subdivisions 1 and 2.

40.20    Sec. 21. Minnesota Statutes 2014, section 148B.53, is amended by adding a
40.21subdivision to read:
40.22    Subd. 1a. Expedited and temporary licensing for former and current members
40.23of the military. (a) Applicants seeking licensure according to this subdivision must be:
40.24(1) an active duty military member;
40.25(2) the spouse of an active duty military member; or
40.26(3) a veteran who has left service in the two years preceding the date of license
40.27application, and has confirmation of an honorable or general discharge status.
40.28(b) A qualified applicant under this subdivision must provide evidence of:
40.29(1) a current valid license, certificate, or permit in another state without history of
40.30disciplinary action by a regulatory authority in the other state; and
40.31(2) a current criminal background study without a criminal conviction that is
40.32determined by the board to adversely affect the applicant's ability to become licensed.
40.33(c) A temporary license issued under this subdivision is effective for one year from
40.34the initial licensure date.
41.1(d) During the temporary license period, the individual shall complete the licensed
41.2professional counselor application for licensure.
41.3(e) In order to remain licensed after the expiration of the temporary license, an
41.4individual must meet the requirements in subdivision 1, paragraphs (a) and (b).

41.5    Sec. 22. Minnesota Statutes 2014, section 148B.5301, is amended by adding a
41.6subdivision to read:
41.7    Subd. 4a. Expedited and temporary licensing for former and current members
41.8of the military. (a) Applicants seeking licensure according to this subdivision must be:
41.9(1) an active duty military member;
41.10(2) the spouse of an active duty military member; or
41.11(3) a veteran who has left service in the two years preceding the date of license
41.12application, and has confirmation of an honorable or general discharge status.
41.13(b) A qualified applicant under paragraph (a) must provide evidence of:
41.14(1) a current valid license, certificate, or permit in another state without history of
41.15disciplinary action by a regulatory authority in the other state; and
41.16(2) a current criminal background study without a criminal conviction that is
41.17determined by the board to adversely affect the applicant's ability to become licensed.
41.18(c) A temporary license issued under this subdivision is effective for one year from
41.19the initial licensure date.
41.20(d) During the temporary license period, the individual shall complete the licensed
41.21professional clinical counselor application for licensure.
41.22(e) In order to remain licensed after the expiration of the temporary license, an
41.23individual must meet the requirements in subdivisions 1 and 2.

41.24    Sec. 23. Minnesota Statutes 2014, section 148F.025, is amended by adding a
41.25subdivision to read:
41.26    Subd. 5. Expedited and temporary licensing for former and current members
41.27of the military. (a) Applicants seeking licensure according to this subdivision must be:
41.28(1) an active duty military member;
41.29(2) the spouse of an active duty military member; or
41.30(3) a veteran who has left service in the two years preceding the date of license
41.31application, and has confirmation of an honorable or general discharge status.
41.32(b) Applicants are required to comply with subdivisions 1 and 4.
41.33(c) A qualified applicant under paragraph (a) must provide evidence of:
42.1(1) a current valid license, certificate, or permit in another state without history of
42.2disciplinary action by a regulatory authority in the other state; and
42.3(2) a current criminal background study without a criminal conviction that is
42.4determined by the board to adversely affect the applicant's ability to become licensed.
42.5(d) A temporary license issued under this subdivision is effective for two years from
42.6the initial licensure date.
42.7(e) During the temporary license period, the individual shall complete the application
42.8for licensure required in subdivision 1.
42.9(f) In order to remain licensed after the expiration of the temporary license, an
42.10individual must meet the requirements in subdivisions 2 and 3.

42.11    Sec. 24. Minnesota Statutes 2014, section 153.16, subdivision 1, is amended to read:
42.12    Subdivision 1. License requirements. The board shall issue a license to practice
42.13podiatric medicine to a person who meets the following requirements:
42.14(a) The applicant for a license shall file a written notarized application on forms
42.15provided by the board, showing to the board's satisfaction that the applicant is of good
42.16moral character and satisfies the requirements of this section.
42.17(b) The applicant shall present evidence satisfactory to the board of being a graduate
42.18of a podiatric medical school approved by the board based upon its faculty, curriculum,
42.19facilities, accreditation by a recognized national accrediting organization approved by the
42.20board, and other relevant factors.
42.21(c) The applicant must have received a passing score on each part of the national board
42.22examinations, parts one and two, prepared and graded by the National Board of Podiatric
42.23Medical Examiners. The passing score for each part of the national board examinations,
42.24parts one and two, is as defined by the National Board of Podiatric Medical Examiners.
42.25(d) Applicants graduating after 1986 from a podiatric medical school shall present
42.26evidence of successful completion of a residency program approved by a national
42.27accrediting podiatric medicine organization.
42.28(e) The applicant shall appear in person before the board or its designated
42.29representative to show that the applicant satisfies the requirements of this section,
42.30including knowledge of laws, rules, and ethics pertaining to the practice of podiatric
42.31medicine. The board may establish as internal operating procedures the procedures or
42.32requirements for the applicant's personal presentation. Upon completion of all other
42.33application requirements, a doctor of podiatric medicine applying for a temporary military
42.34license has six months in which to comply with this subdivision.
43.1(f) The applicant shall pay a fee established by the board by rule. The fee shall
43.2not be refunded.
43.3(g) The applicant must not have engaged in conduct warranting disciplinary action
43.4against a licensee. If the applicant does not satisfy the requirements of this paragraph,
43.5the board may refuse to issue a license unless it determines that the public will be
43.6protected through issuance of a license with conditions and limitations the board considers
43.7appropriate.
43.8(h) Upon payment of a fee as the board may require, an applicant who fails to pass
43.9an examination and is refused a license is entitled to reexamination within one year of
43.10the board's refusal to issue the license. No more than two reexaminations are allowed
43.11without a new application for a license.

43.12    Sec. 25. Minnesota Statutes 2014, section 153.16, subdivision 4, is amended to read:
43.13    Subd. 4. Temporary military permit license. The board shall establish a temporary
43.14permit in accordance with section 197.4552. The fee for the temporary military permit is
43.15$250. (a) The board shall issue an expedited license to practice podiatric medicine to an
43.16applicant who meets the following requirements:
43.17(1) is an active duty military member;
43.18(2) is the spouse of an active duty military member; or
43.19(3) is a veteran who has left service in the two years preceding the date of license
43.20application, and has confirmation of an honorable or general discharge status.
43.21(b) A qualified applicant under this subdivision must provide evidence of:
43.22(1) a current, valid license in another state without history of disciplinary action by a
43.23regulatory authority in the other state; and
43.24(2) a current criminal background study without a criminal conviction that is
43.25determined by the board to adversely affect the applicant's ability to become licensed.
43.26(c) The board shall issue a license for up to six months to a doctor of podiatric
43.27medicine eligible for licensure under this subdivision. Doctors of podiatric medicine
43.28licensed in another state who have complied with all other requirements may receive a
43.29temporary license valid for up to six months. No extension is available.
43.30(d) A temporary license issued under this subdivision permits a qualified individual
43.31to perform podiatric medicine for a limited length of time as determined by the licensing
43.32board. During the temporary license period, the individual shall complete the full
43.33application procedure and be approved as required by applicable law.
43.34(e) The fee for the temporary military license is $250.

44.1    Sec. 26. Minnesota Statutes 2014, section 154.003, is amended to read:
44.2154.003 FEES.
44.3    (a) The fees collected, as required in this chapter, chapter 214, and the rules of the
44.4board, shall be paid to the board. The board shall deposit the fees in the general fund
44.5in the state treasury.
44.6    (b) The board shall charge the following fees:
44.7    (1) examination and certificate, registered barber, $85;
44.8(2) retake of written examination, registered barber, $10;
44.9    (3) examination and certificate, apprentice, $80;
44.10(4) retake of written examination, apprentice, $10;
44.11    (5) examination, instructor, $180;
44.12    (6) certificate, instructor, $65;
44.13    (7) temporary teacher or apprentice permit, $80;
44.14    (8) temporary registered barber, military, $85;
44.15(9) temporary barber instructor, military, $180;
44.16(10) temporary apprentice barber, military, $80;
44.17    (11) renewal of registration, registered barber, $80;
44.18    (9) (12) renewal of registration, apprentice, $70;
44.19    (10) (13) renewal of registration, instructor, $80;
44.20    (11) (14) renewal of temporary teacher permit, $65;
44.21    (12) (15) student permit, $45;
44.22(13) (16) renewal of student permit, $25;
44.23    (14) (17) initial shop registration, $85;
44.24    (15) (18) initial school registration, $1,030;
44.25    (16) (19) renewal shop registration, $85;
44.26    (17) (20) renewal school registration, $280;
44.27    (18) (21) restoration of registered barber registration, $95;
44.28    (19) (22) restoration of apprentice registration, $90;
44.29    (20) (23) restoration of shop registration, $105;
44.30    (21) (24) change of ownership or location, $55;
44.31    (22) (25) duplicate registration, $40;
44.32    (23) (26) home study course, $75;
44.33(24) (27) letter of registration verification, $25; and
44.34(25) (28) reinspection, $100.

44.35    Sec. 27. Minnesota Statutes 2014, section 154.11, subdivision 3, is amended to read:
45.1    Subd. 3. Temporary military license permits. (a) In accordance with section
45.2197.4552, the board shall establish issue a temporary license:
45.3    (1) permit for apprentice barbers and master;
45.4    (2) certificate for registered barbers; and a temporary permit for apprentices in
45.5accordance with section 197.4552. The fee for a temporary license under this subdivision
45.6for a master barber is $85. The fee for a temporary license under this subdivision for a
45.7barber is $180. The fee for a temporary permit under this subdivision for an apprentice is
45.8$80.
45.9    (3) certificate for registered barber instructors.
45.10    (b) Fees for temporary military permits and certificates of registration under this
45.11subdivision are listed under section 154.003.
45.12    (c) Permits or certificates of registration issued under this subdivision are valid
45.13for one year from the date of issuance, after which the individual must complete a full
45.14application as required by section 197.4552.

45.15    Sec. 28. Minnesota Statutes 2014, section 155A.21, is amended to read:
45.16155A.21 POLICY.
45.17The legislature finds that the health and safety of the people of the state are served
45.18by the licensing of the practice of cosmetology because of infection control and the use
45.19of chemicals, implements, apparatus, and other appliances requiring special skills and
45.20education.
45.21To this end, the public will best be served by vesting these responsibilities in the
45.22Board of Cosmetologist Examiners.

45.23    Sec. 29. Minnesota Statutes 2014, section 155A.23, subdivision 8, is amended to read:
45.24    Subd. 8. Manager. A "manager" is any person who conducts, operates, or manages
45.25a cosmetology school or salon and who also instructs in or is a cosmetologist, esthetician,
45.26advanced practice esthetician, or nail technician practitioner, and who has a manager
45.27license and provides any services under that license, as defined in subdivision 3. A school
45.28manager must maintain an active salon manager's license.

45.29    Sec. 30. Minnesota Statutes 2014, section 155A.23, is amended by adding a
45.30subdivision to read:
45.31    Subd. 8a. Mobile salon. A "mobile salon" is a salon that is operated in a mobile
45.32vehicle or mobile structure for exclusive use to offer personal services, as defined in
45.33subdivision 3.
46.1EFFECTIVE DATE.This section is effective July 1, 2017.

46.2    Sec. 31. Minnesota Statutes 2014, section 155A.23, is amended by adding a
46.3subdivision to read:
46.4    Subd. 14. Advanced practice esthetician. An "advanced practice esthetician" is a
46.5person who for compensation performs personal services for the cosmetic care of the skin,
46.6including the use of mechanical or electrical skin care apparatuses or appliances that are
46.7used on the epidermal layer of the skin.
46.8EFFECTIVE DATE.This section is effective August 1, 2015, except that a license
46.9for an advanced practice esthetician must not be issued prior to January 1, 2018.

46.10    Sec. 32. Minnesota Statutes 2014, section 155A.23, is amended by adding a
46.11subdivision to read:
46.12    Subd. 15. Designated licensed salon manager. A "designated licensed salon
46.13manager" is a manager designated by a salon owner and registered with the board, who is
46.14responsible with the salon owner for salon and practitioner compliance.

46.15    Sec. 33. Minnesota Statutes 2014, section 155A.23, is amended by adding a
46.16subdivision to read:
46.17    Subd. 16. School manager. A "school manager" is a cosmetologist who is a salon
46.18manager and who has a school manager license. A school manager must maintain an
46.19active salon manager's license.

46.20    Sec. 34. Minnesota Statutes 2014, section 155A.23, is amended by adding a
46.21subdivision to read:
46.22    Subd. 17. Designated school manager. A "designated school manager" is a school
46.23manager who is designated by the school owner and registered with the board, who is
46.24responsible with the school owner for school and instructor compliance.

46.25    Sec. 35. Minnesota Statutes 2014, section 155A.23, is amended by adding a
46.26subdivision to read:
46.27    Subd. 18. Practitioner. A "practitioner" is any person licensed in the practice of
46.28cosmetology, esthiology, or nail technology services.

46.29    Sec. 36. Minnesota Statutes 2014, section 155A.24, subdivision 2, is amended to read:
47.1    Subd. 2. Hiring and assignment of employees. The board has the authority to hire
47.2qualified personnel in the classified service to assist in administering the law, including
47.3those for the testing and licensing of applicants and the continuing inspections required.
47.4All staff must receive periodic training to improve and maintain customer service skills,
47.5conducting inspections, and complaint investigations.

47.6    Sec. 37. Minnesota Statutes 2014, section 155A.25, subdivision 1a, is amended to read:
47.7    Subd. 1a. Schedule. (a) The fee schedule for licensees fees and penalties is as
47.8follows: provided in this subdivision.
47.9(a) (b) Three-year license fees are as follows:
47.10(1) cosmetologist, nail technician, or esthetician $195 initial practitioner, manager,
47.11or instructor license, divided as follows:
47.12(i) $90 $155 for each initial license and a $40 nonrefundable initial license
47.13application fee, for a total of $130; and
47.14(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for a total
47.15of $75 $40 for each initial license application fee;
47.16(2) instructor or manager $115 renewal of practitioner license, divided as follows:
47.17(i) $120 $100 for each initial renewal license and a $40 nonrefundable initial license
47.18application fee, for a total of $160; and
47.19(ii) $90 $15 for each renewal and a $15 nonrefundable renewal application fee,
47.20for a total of $105;
47.21(3) $145 renewal of manager or instructor license, divided as follows:
47.22(i) $130 for each renewal license; and
47.23(ii) $15 for each renewal application fee;
47.24(4) $350 initial salon license, divided as follows:
47.25(i) $130 $250 for each initial license and a $100 nonrefundable initial license
47.26application fee, for a total of $230; and
47.27(ii) $100 for each renewal and a $50 nonrefundable renewal initial license
47.28application fee, for a total of $150; and
47.29(4) school (5) $225 renewal of salon license, divided as follows:
47.30(i) $1,500 $175 for each initial license and a $1,000 nonrefundable initial license
47.31application fee, for a total of $2,500 renewal; and
47.32(ii) $1,500 $50 for each renewal and a $500 nonrefundable renewal application
47.33fee, for a total of $2,000;
47.34(6) $4,000 initial school license, divided as follows:
47.35(i) $3,000 for each initial license; and
48.1(ii) $1,000 for each initial license application fee; and
48.2(7) $2,500 renewal of school license, divided as follows:
48.3(i) $2,000 for each renewal; and
48.4(ii) $500 for each renewal application fee.
48.5(b) (c) Penalties may be assessed in amounts up to the following:
48.6(1) reinspection fee, variable $150;
48.7(2) manager and owner with lapsed practitioner found on inspection, $150 each;
48.8(3) lapsed practitioner or instructor found on inspection, $200;
48.9(4) lapsed salon found on inspection, $500;
48.10(5) lapsed school found on inspection, $1,000;
48.11(6) failure to display current license, $100;
48.12(7) failure to dispose of single-use equipment, implements, or materials as provided
48.13under section 155A.355, subdivision 1, $500;
48.14(8) use of prohibited razor-type callus shavers, rasps, or graters under section
48.15155A.355, subdivision 2 , $500;
48.16(9) performing nail or cosmetology services in esthetician salon, or performing
48.17esthetician or cosmetology services in a nail salon, $500;
48.18(10) owner and manager allowing an operator to work as an independent contractor,
48.19$200;
48.20(11) operator working as an independent contractor, $100;
48.21(12) refusal or failure to cooperate with an inspection, $500;
48.22(13) expired cosmetologist, nail technician, esthetician, manager, school manager,
48.23and instructor license practitioner late renewal fee, $45; and
48.24(14) expired salon or school license late renewal fee, $50.
48.25(c) (d) Administrative fees are as follows:
48.26(1) certificate of identification, $20 homebound service permit, $50 three-year fee;
48.27(2) name change, $20;
48.28(3) letter of license verification certification of licensure, $30 each;
48.29(4) duplicate license, $20;
48.30(5) processing fee, $10;
48.31(6) special event permit, $75 per year; and
48.32(7) (6) registration of hair braiders, $20 per year;
48.33(7) $100 for each temporary military license for a cosmetologist, nail technician,
48.34esthetician, or advanced practice esthetician one-year fee;
48.35(8) expedited initial individual license, $150;
48.36(9) expedited initial salon license, $300;
49.1(10) instructor continuing education provider approval, $150 each year; and
49.2(11) practitioner continuing education provider approval, $150 each year.

49.3    Sec. 38. Minnesota Statutes 2014, section 155A.25, subdivision 5, is amended to read:
49.4    Subd. 5. Board must approve or deny application; timeline. Within 15 working
49.5days of receiving a complete application and the required fees for an initial or renewal
49.6to apply for or renew an individual or salon license that is not an expedited license or a
49.7military license, the board must (1) either grant or deny the application issue the license,
49.8(2) issue deny the license or and notify the applicant of the denial, or (3) issue a temporary
49.9license to an applicant for whom no record exists regarding: (i) a complaint filed with the
49.10board against the applicant; or (ii) a negative action by the board against the applicant if
49.11the conditions in subdivision 6 are met, notify the applicant that the board must conduct
49.12additional review.

49.13    Sec. 39. Minnesota Statutes 2014, section 155A.25, is amended by adding a
49.14subdivision to read:
49.15    Subd. 6. Additional review for certain licenses. If an application contains
49.16discrepancies, the applicant is the subject of a complaint investigation, or the applicant
49.17has pending disciplinary actions before the board, the board will comply with the time
49.18limits prescribed in section 15.992 to process the application.

49.19    Sec. 40. Minnesota Statutes 2014, section 155A.25, is amended by adding a
49.20subdivision to read:
49.21    Subd. 7. Temporary military license or expedited license. Within five business
49.22days of receiving a completed application and the required fees for an individual or salon
49.23license that meets requirements for an expedited license or a temporary military license,
49.24the board must (1) issue the license, (2) deny the license and notify the applicant of the
49.25denial, or (3) notify the applicant that the board must conduct additional review if the
49.26application meets the conditions in subdivision 8.
49.27EFFECTIVE DATE.This section is effective August 1, 2015, except that an
49.28expedited license must not be issued prior to January 1, 2016.

49.29    Sec. 41. Minnesota Statutes 2014, section 155A.25, is amended by adding a
49.30subdivision to read:
49.31    Subd. 8. Additional review for certain temporary military license or expedited
49.32license. If an application under subdivision 7 contains discrepancies, the applicant is the
50.1subject of a complaint investigation, or the applicant has pending disciplinary actions
50.2before the board, the board will process the application according to the time limits in
50.3section 15.992.

50.4    Sec. 42. Minnesota Statutes 2014, section 155A.27, subdivision 1, is amended to read:
50.5    Subdivision 1. Licensing. Individual licensing shall be required for persons seeking
50.6A person must hold an individual license to practice in the state as a cosmetologist,
50.7esthetician, nail technician, advanced practice esthetician, manager, or instructor.

50.8    Sec. 43. Minnesota Statutes 2014, section 155A.27, subdivision 2, is amended to read:
50.9    Subd. 2. Qualifications. Qualifications for licensing in each classification shall
50.10be determined by the board and established by rule, and shall include educational
50.11and experiential prerequisites. The rules shall require a demonstrated knowledge of
50.12procedures necessary to protect the health and safety of the practitioner and the consumer
50.13of cosmetology services, including but not limited to chemical applications infection
50.14control, use of implements, apparatuses and other appliances, and the use of chemicals.

50.15    Sec. 44. Minnesota Statutes 2014, section 155A.27, subdivision 5a, is amended to read:
50.16    Subd. 5a. Temporary military license. The board shall establish temporary
50.17licenses for a cosmetologist, nail technician, and esthetician in accordance with section
50.18197.4552 . The fee for a temporary license under this subdivision for a cosmetologist, nail
50.19technician, or esthetician is $100.

50.20    Sec. 45. Minnesota Statutes 2014, section 155A.271, is amended to read:
50.21155A.271 CONTINUING EDUCATION REQUIREMENTS.
50.22    Subdivision 1. Continuing education requirements. (a) Effective August 1, 2014,
50.23to qualify for license renewal under this chapter as an individual cosmetologist, nail
50.24technician, esthetician, advanced practice esthetician, or salon manager, the applicant
50.25must attest to the completion of four hours of continuing education credits from an
50.26accredited school or a professional association of cosmetology during the three years
50.27prior to the applicant's renewal date. One credit hour of the requirement must include
50.28instruction pertaining to state laws and rules governing the practice of cosmetology. Three
50.29credit hours must include instruction pertaining to health, safety, and sanitation matters
50.30consistent with the United States Department of Labor's Occupational Safety and Health
50.31Administration standards applicable to the practice of cosmetology, or other applicable
50.32federal health, sanitation, and safety standards, and must be regularly updated so as to
51.1incorporate newly developed standards and accepted professional best practices. Credit
51.2hours earned are valid for three years and may be applied simultaneously to all individual
51.3licenses held by a licensee under this chapter. This subdivision does not apply to
51.4instructors or inactive licenses.
51.5(b) Effective August 1, 2017, in addition to the hours of continuing education credits
51.6required under paragraph (a), to qualify for license renewal under this chapter as an
51.7individual cosmetologist, nail technician, esthetician, advanced practice esthetician, or
51.8salon manager, the applicant must also attest to the completion of one four-hour continuing
51.9education course from a continuing education provider based on any or all of the following:
51.10(1) product chemistry and chemistry interaction;
51.11(2) proper use of machines and instruments;
51.12(3) business management and human relations; or
51.13(4) techniques relevant to the type of license held.
51.14Credits must be completed during the three years prior to the applicant's renewal date and
51.15may be applied simultaneously to other individual licenses held as applicable, except
51.16that credits completed under this paragraph must not duplicate credits completed under
51.17paragraph (a).
51.18(c) Paragraphs (a) and (b) do not apply to an instructor license, a school manager
51.19license, or an inactive license.
51.20    Subd. 1a. Product sales or marketing prohibited. The marketing or sale of
51.21any product is prohibited during a continuing education class receiving credit under
51.22subdivision 1.
51.23    Subd. 2. Schools and professional associations Continuing education providers.
51.24    (a) Only a board-licensed school of cosmetology, a postsecondary institution as defined in
51.25section 136A.103, paragraph (a), or a board-recognized professional association organized
51.26under chapter 317A may offer continuing education curriculum for credit under this
51.27section. subdivision 1, paragraph (a). Continuing education curriculum under subdivision
51.281, paragraph (b), may be offered by a:
51.29    (1) board-licensed school of cosmetology;
51.30    (2) board-recognized professional association organized under chapter 317A; or
51.31    (3) board-licensed salon.
51.32    The school and professional association may offer online and independent study
51.33options to achieve maximum involvement of licensees and is. Continuing education
51.34providers are encouraged to offer classes available in foreign language formats.
51.35    (b) Board recognition authorization of a professional association continuing
51.36education provider under paragraph (a) is valid for three years one calendar year and is
52.1contingent upon submission and preapproval of the general curriculum lesson plan or
52.2plans with learning objectives for the class to be offered and the payment of the application
52.3fee in section 155A.25, subdivision 1a, paragraph (d), clause (11). The board may revoke
52.4recognition authorization of a continuing education provider at any time for just cause and
52.5the board may demand return of documents required under subdivision 3. The professional
52.6association offering continuing education must be organized under chapter 317A.
52.7    Subd. 3. Proof of credits. The school or professional association continuing
52.8education provider shall provide to licensees who attend a class a receipt to prove
52.9completion of the class. Licensees shall retain proof of their continuing education credits
52.10for one year beyond the credit's expiration. The school or professional association
52.11continuing education provider shall retain documentation of all licensees successfully
52.12completing a class and the licensee's credit hours for five years.
52.13    Subd. 4. Audit. The board shall conduct random audits of active licensees
52.14periodically to ensure compliance with continuing education requirements. To initiate
52.15an audit, the board shall notify an active licensee of the audit and request proof of
52.16credits earned during a specified period. The licensee must provide the requested proof
52.17to the board within 30 days of an audit notice. The board may request that a school or
52.18professional association verify a licensee's credits. The school or professional association
52.19continuing education provider must furnish verification, or a written statement that the
52.20credits are not verified, within 15 days of the board's request for verification. If the board
52.21determines that a licensee has failed to provide proof of necessary credits earned during
52.22the specified time, the board may revoke the individual's license and may deem the
52.23individual a lapsed practitioner subject to penalty under section 155A.25 or 155A.36.
52.24EFFECTIVE DATE.Subdivision 1 is effective August 1, 2017. Subdivision 1a is
52.25effective the day following final enactment. Subdivisions 2 to 4 are effective July 1, 2015.

52.26    Sec. 46. Minnesota Statutes 2014, section 155A.29, subdivision 1, is amended to read:
52.27    Subdivision 1. Licensing. Any A person who offers must not offer cosmetology
52.28services for compensation in this state shall be (1) licensed as a salon if not employed by
52.29another licensed salon or (2) employed as an esthetician or cosmetologist in connection
52.30with medical care in relation to esthiology in the office of a licensed physician unless the
52.31services are provided by a licensee in a licensed salon or as otherwise provided in this
52.32section. Each salon must be licensed as a cosmetology salon, a nail salon, esthetician
52.33salon, or advanced practice esthetician salon. A salon may hold more than one type of
52.34salon license.

53.1    Sec. 47. Minnesota Statutes 2014, section 155A.29, subdivision 2, is amended to read:
53.2    Subd. 2. Requirements. (a) The conditions and process by which a salon is licensed
53.3shall be established by the board by rule. In addition to those requirements, no license
53.4shall be issued unless the board first determines that the conditions in clauses (1) to (5)
53.5have been satisfied:
53.6(1) compliance with all local and state laws, particularly relating to matters of
53.7sanitation, health, and safety;
53.8(2) the employment of a manager, as defined in section 155A.23, subdivision 8;
53.9(3) if applicable, evidence of compliance with workers' compensation section
53.10176.182 ; and
53.11(4) evidence of continued professional liability insurance coverage of at least
53.12$25,000 for each claim and $50,000 total coverage for each policy year for each operator.
53.13(b) A licensed esthetician or nail technician who complies with the health, safety,
53.14sanitation, inspection, and insurance rules promulgated by the board to operate a salon
53.15solely for the performance of those personal services defined in section 155A.23,
53.16subdivision 5
, in the case of an esthetician, or subdivision 7, in the case of a nail technician.

53.17    Sec. 48. Minnesota Statutes 2014, section 155A.29, is amended by adding a
53.18subdivision to read:
53.19    Subd. 2a. Requirements for mobile salon. In addition to complying with the
53.20requirements for a salon in subdivision 2, the holder of a salon license for a mobile salon
53.21must:
53.22(1) maintain a permanent business address; and
53.23(2) notify the board of the locations and schedule of operation of a mobile salon.
53.24EFFECTIVE DATE.This section is effective July 1, 2017.

53.25    Sec. 49. Minnesota Statutes 2014, section 155A.30, subdivision 5, is amended to read:
53.26    Subd. 5. Conditions precedent to issuance. A license must not be issued unless the
53.27board first determines that the applicant has met the requirements in clauses (1) to (8).:
53.28(1) the applicant must have a sound financial condition with sufficient resources
53.29available to meet the school's financial obligations; to refund all tuition and other charges,
53.30within a reasonable period of time, in the event of dissolution of the school or in the event
53.31of any justifiable claims for refund against the school; to provide adequate service to its
53.32students and prospective students; and to maintain proper use and support of the school.;
54.1(2) the applicant must have satisfactory training facilities with sufficient tools and
54.2equipment and the necessary number of work stations to adequately train the students
54.3currently enrolled, and those proposed to be enrolled.;
54.4(3) the applicant must employ a sufficient number of qualified instructors trained by
54.5experience and education to give the training contemplated.;
54.6(4) the premises and conditions under which the students work and study must be
54.7sanitary, healthful, and safe according to modern standards.;
54.8(5) each occupational course or program of instruction or study must be of such
54.9quality and content as to provide education and training which that will adequately prepare
54.10enrolled students for testing, licensing, and entry level positions as a cosmetologist,
54.11esthetician, or nail technician.;
54.12(6) the school must have coverage by professional liability insurance of at least
54.13$25,000 per incident and an accumulation of $150,000 for each premium year.;
54.14(7) the applicant shall provide evidence of the school's compliance with section
54.15176.182 .;
54.16(8) the applicant, except the state and its political subdivisions as described in
54.17section 471.617, subdivision 1, shall file with the board a continuous corporate surety
54.18bond in the amount of $10,000, conditioned upon the faithful performance of all contracts
54.19and agreements with students made by the applicant. The bond shall run to the state of
54.20Minnesota and to any person who may have a cause of action against the applicant arising
54.21at any time after the bond is filed and before it is canceled for breach of any contract or
54.22agreement made by the applicant with any student. The aggregate liability of the surety for
54.23all breaches of the conditions of the bond shall not exceed $10,000. The surety of the bond
54.24may cancel it upon giving 60 days' notice in writing to the board and shall be relieved of
54.25liability for any breach of condition occurring after the effective date of cancellation; and
54.26(9) the applicant must, at all times during the term of the license, employ a
54.27designated licensed school manager who maintains a cosmetology salon manager license.

54.28    Sec. 50. Minnesota Statutes 2014, section 155A.30, subdivision 10, is amended to read:
54.29    Subd. 10. Discrimination prohibited. No Each school, duly approved under
54.30sections 155A.21 to 155A.36, shall refuse to teach any student, otherwise qualified, on
54.31account of race, sex, creed, color, citizenship, national origin, or sexual preference must
54.32comply with the Minnesota Human Rights Act under chapter 363A.

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

55.1    Sec. 52. Minnesota Statutes 2014, section 211B.37, is amended to read:
55.2211B.37 COSTS ASSESSED.
55.3Except as otherwise provided in section 211B.36, subdivision 3, the chief
55.4administrative law judge shall assess the cost of considering complaints filed under section
55.5211B.32 as provided in this section. Costs of complaints relating to a statewide ballot
55.6question or an election for a statewide or legislative office must be assessed against the
55.7appropriation from the general fund to the general account of the state elections campaign
55.8account in section 10A.31, subdivision 4 paid from appropriations to the Office of
55.9Administrative Hearings for this purpose. Costs of complaints relating to any other ballot
55.10question or elective office must be paid from appropriations to the office for this purpose.

55.11    Sec. 53. Minnesota Statutes 2014, section 272.484, is amended to read:
55.12272.484 FEES.
55.13The fee for filing and indexing each notice of lien or certificate or notice affecting
55.14the lien is:
55.15(1) for a lien, certificate of discharge or subordination, and for all other notices,
55.16including a certificate of release or nonattachment filed with the secretary of state, the fee
55.17provided by section 336.9-525, except that the filing fee charged to the district directors
55.18of internal revenue for filing a federal tax lien is $15 for up to two debtor names and
55.19$15 for each additional name; and
55.20(2) for a lien, certificate of discharge or subordination, and for all other notices,
55.21including a certificate of release or nonattachment filed with the county recorder, the fee
55.22for filing a real estate mortgage in the county where filed.
55.23The officer shall bill the district directors of internal revenue or other appropriate
55.24federal officials on a monthly basis for fees for documents filed by them.

55.25    Sec. 54. Minnesota Statutes 2014, section 303.19, is amended to read:
55.26303.19 REINSTATEMENT.
55.27    Subdivision 1. Application Required filing. Any foreign corporation whose
55.28certificate of authority to do business in this state shall have been revoked or canceled may
55.29file reinstate that authority by filing an annual renewal and the fee required by subdivision
55.302 with the secretary of state an application for reinstatement. Such application shall be
55.31on forms prescribed by the secretary of state, shall contain all the matters required to be
55.32set forth in an original application for a certificate of authority, and such other pertinent
55.33information as may be required by the secretary of state. If any of the information in the
56.1original application for authority has changed, the foreign corporation must also file an
56.2amended certificate setting forth the currently accurate information, with the fee required
56.3by section 303.21, subdivision 3.
56.4    Subd. 2. Fee. If the certificate of authority was revoked by the secretary of state
56.5pursuant to section 303.17, the corporation shall pay to the commissioner of management
56.6and budget $250 before it may be reinstated.
56.7If the certificate of authority was canceled or by a judgment pursuant to section
56.8303.18 , the corporation shall pay to the commissioner of management and budget $500
56.9before it may be reinstated.
56.10    Subd. 3. Certificate of reinstatement. Upon the filing of the application and upon
56.11payment of all penalties, fees and charges required by law, not including an initial license
56.12fee or additional license fees to the extent that they have previously been paid by the
56.13corporation the fees imposed by this section, the secretary of state shall reinstate the
56.14license of the corporation.

56.15    Sec. 55. Minnesota Statutes 2014, section 304A.301, subdivision 1, is amended to read:
56.16    Subdivision 1. Report required. No later than 90 days after the conclusion of
56.17each calendar year Before each April 1, a public benefit corporation must deliver to the
56.18secretary of state for filing an annual benefit report covering the 12-month period ending
56.19on December 31 of that the previous year and pay a fee of $35 to the secretary of state.
56.20The annual benefit report must state the name of the public benefit corporation, be signed
56.21by the public benefit corporation's chief executive officer not more than 30 days before the
56.22report is delivered to the secretary of state for filing, and must be current when signed.

56.23    Sec. 56. Minnesota Statutes 2014, section 304A.301, subdivision 5, is amended to read:
56.24    Subd. 5. Failure to file an annual benefit report. If a public benefit corporation
56.25fails to file an, before April 1 of any calendar year, the annual benefit report in accordance
56.26with this section within 90 days of the date on which an annual benefit report is due
56.27required by this section, the secretary of state shall revoke the corporation's status as a
56.28public benefit corporation under this chapter and must notify the public benefit corporation
56.29of the revocation using the information provided by the corporation pursuant to section
56.305.002 or 5.34 or provided in the articles.

56.31    Sec. 57. Minnesota Statutes 2014, section 304A.301, subdivision 6, is amended to read:
56.32    Subd. 6. Effects of revocation; reinstatement. (a) A public benefit corporation
56.33that has lost its public benefit corporation status for failure to timely file an annual benefit
57.1report or by terminating that status pursuant to section 304A.103 is not entitled to the
57.2benefits afforded to a public benefit corporation under this chapter as of the date of
57.3revocation or termination and must amend the articles of incorporation to reflect a name
57.4compliant with section 302A.115, but which does not include the corporate designation
57.5provided for in section 304A.101, subdivision 2.
57.6(b) Within 30 days of issuance of revocation of public benefit corporation status by
57.7the secretary of state, filing a renewal complying with this section and a $500 fee with
57.8the secretary of state will reinstate the corporation as a public benefit corporation under
57.9this chapter as of the date of revocation.

57.10    Sec. 58. Minnesota Statutes 2014, section 304A.301, is amended by adding a
57.11subdivision to read:
57.12    Subd. 8. Failure to change corporate name. The duration of a corporation that has
57.13had public benefit status terminated or revoked and which fails to change the corporate
57.14name as provided in subdivision 6 expires automatically 30 days after termination or
57.15revocation of the public benefit corporation status.

57.16    Sec. 59. Minnesota Statutes 2014, section 326A.01, subdivision 2, is amended to read:
57.17    Subd. 2. Attest. "Attest" means to provide providing any of the following financial
57.18statement services:
57.19(1) an audit or other engagement performed in accordance with the Statements on
57.20Auditing Standards (SAS);
57.21(2) a review of a financial statement performed in accordance with the Statements on
57.22Standards for Accounting and Review Services (SSARS);
57.23(3) an examination of prospective financial information performed in accordance
57.24with the Statements on Standards for Attestation Engagements (SSAE); and
57.25(4) any an engagement performed in accordance with auditing and related the
57.26standards of the Public Company Accounting Oversight Board (PCAOB); and
57.27(5) an examination, review, or agreed-upon procedures engagement performed in
57.28accordance with SSAE, other than an examination described in clause (3).

57.29    Sec. 60. Minnesota Statutes 2014, section 326A.01, subdivision 12, is amended to read:
57.30    Subd. 12. Peer review. "Peer review" means an independent study, appraisal, or
57.31review of one or more aspects of the professional work of a licensee or CPA firm that
57.32issues attest or compilation reports, or the professional work of a person registered under
58.1section 326A.06, paragraph (b), by persons who are not affiliated with the licensee or
58.2CPA firm being reviewed.

58.3    Sec. 61. Minnesota Statutes 2014, section 326A.01, subdivision 13a, is amended to read:
58.4    Subd. 13a. Principal place of business. "Principal place of business" means the
58.5office location designated by the licensee for purposes of substantial equivalency and
58.6reciprocity in this state and in other states.

58.7    Sec. 62. Minnesota Statutes 2014, section 326A.01, subdivision 15, is amended to read:
58.8    Subd. 15. Report. "Report," when used with reference to financial statements an
58.9attest or compilation service, means an opinion, report, or other form of language that
58.10states or implies assurance as to the reliability of any the attested information or compiled
58.11financial statements and that also includes or is accompanied by a statement or implication
58.12that the person or firm issuing it has special knowledge or competence in accounting or
58.13auditing. Such a statement or implication of special knowledge or competence may arise
58.14from use by the issuer of the report of names or titles indicating that the person or firm is an
58.15accountant or auditor, or from the language of the report itself. The term "report" includes
58.16any form of language that disclaims an opinion when the form of language is conventionally
58.17understood to imply any positive assurance as to the reliability of the attested information
58.18or compiled financial statements referred to or special competence on the part of the person
58.19or firm issuing the language. It includes any other form of language that is conventionally
58.20understood to imply such assurance or such special knowledge or competence.

58.21    Sec. 63. Minnesota Statutes 2014, section 326A.01, subdivision 16, is amended to read:
58.22    Subd. 16. State. "State" means any state of the United States, the District of
58.23Columbia, Puerto Rico, the U.S. Virgin Islands, the Commonwealth of the Northern
58.24Mariana Islands, and Guam; except that "this state" means the state of Minnesota.

58.25    Sec. 64. Minnesota Statutes 2014, section 326A.02, subdivision 3, is amended to read:
58.26    Subd. 3. Officers; proceedings. The board shall elect one of its number members
58.27as chair, another as vice-chair, and another as secretary and treasurer. The officers shall
58.28hold their respective offices for a term of one year and until their successors are elected.
58.29The affirmative vote of a majority of the qualified members of the board, or a majority of
58.30a quorum of the board at any meeting duly called, is considered the action of the board.
58.31The board shall meet at such times and places as may be fixed by the board. Meetings
58.32of the board are subject to chapter 13D. A majority of the board members then in office
59.1constitutes a quorum at any meeting duly called. The board shall retain or arrange for the
59.2retention of all applications and all documents under oath that are filed with the board and
59.3also records of its proceedings, and it shall maintain a registry of the names and addresses
59.4of all licensees and registrants under this chapter. In any proceeding in court, civil or
59.5criminal, arising out of or founded upon any provision of this chapter, copies of records of
59.6the proceeding certified as true copies by the board chair or executive director shall be
59.7admissible in evidence as tending to prove the contents of the records.

59.8    Sec. 65. Minnesota Statutes 2014, section 326A.02, subdivision 5, is amended to read:
59.9    Subd. 5. Rules. The board may adopt rules governing its administration and
59.10enforcement of this chapter and the conduct of licensees and persons registered under
59.11section 326A.06, paragraph (b), including:
59.12(1) rules governing the board's meetings and the conduct of its business;
59.13(2) rules of procedure governing the conduct of investigations and hearings and
59.14discipline by the board;
59.15(3) rules specifying the educational and experience qualifications required for the
59.16issuance of certificates and the continuing professional education required for renewal
59.17of certificates;
59.18(4) rules of professional conduct directed to controlling the quality and probity
59.19of services by licensees, and dealing among other things with independence, integrity,
59.20and objectivity; competence and technical standards; and responsibilities to the public
59.21and to clients;
59.22(5) rules governing the professional standards applicable to licensees including
59.23adoption of the standards specified in section 326A.01, subdivision 2, and as developed
59.24for general application by recognized national accountancy organizations such as the
59.25American Institute of Certified Public Accountants or the Public Company Accounting
59.26Oversight Board;
59.27(6) rules that incorporate by reference the standards for attesting listed in section
59.28326A.01, subdivision 2, that are consistent with the standards of general applicability
59.29recognized by national accountancy organizations, including the American Institute of
59.30Certified Public Accountants and the Public Company Accounting Oversight Board;
59.31(6) (7) rules governing the manner and circumstances of use of the titles "certified
59.32public accountant," "CPA," "registered accounting practitioner," and "RAP";
59.33(7) (8) rules regarding peer review that may be required to be performed under
59.34provisions of this chapter;
59.35(8) (9) rules on substantial equivalence to implement section 326A.14;
60.1(9) (10) rules regarding the conduct of the certified public accountant examination;
60.2(10) (11) rules regarding the issuance and renewals of certificates, permits, and
60.3registrations;
60.4(11) (12) rules regarding transition provisions to implement this chapter;
60.5(12) (13) rules specifying the educational and experience qualifications for
60.6registration, rules of professional conduct, rules regarding peer review, rules governing
60.7standards for providing services, and rules regarding the conduct and content of
60.8examination for those persons registered under section 326A.06, paragraph (b);
60.9(13) (14) rules regarding fees for examinations, certificate issuance and renewal,
60.10firm permits, registrations under section 326A.06, paragraph (b), notifications made under
60.11section 326A.14, and late processing fees; and
60.12(14) (15) upon any change to this chapter, if the board determines a change in
60.13Minnesota Rules is required, the board may initiate the expedited process under section
60.1414.389 up to one year after the effective date of the change to this chapter.

60.15    Sec. 66. Minnesota Statutes 2014, section 326A.05, subdivision 1, is amended to read:
60.16    Subdivision 1. General. The board shall grant or renew permits to practice as
60.17a CPA firm to entities that make application and demonstrate their qualifications in
60.18accordance with this section.
60.19(a) The following must hold a permit issued under this section:
60.20(1) any firm with an office in this state performing attest services as defined in
60.21section 326A.01, subdivision 2;
60.22(2) to the extent required by section 326A.10, paragraph (k), any firm with an office
60.23in this state performing compilation services as defined in section 326A.01, subdivision 6;
60.24(3) any firm with an office in this state that uses the title "CPA" or "CPA firm"; or
60.25(4) any firm that does not have an office in this state but performs attest services
60.26as described in section 326A.01, subdivision 2, paragraph (1), (3), or (4), for a client
60.27having its headquarters in this state.
60.28(b) A firm possessing a valid permit from another state which does not have an office
60.29in this state may perform services described in section 326A.01, subdivision 2, clause (2)
60.30or (5), or subdivision 6, for a client having its headquarters in this state and may use the
60.31title "CPA" or "CPA firm" without a permit issued under this section only if:
60.32(1) it has the qualifications described in subdivision 3, paragraph (b);
60.33(2) as a condition to the renewal of the firm's permit issued by the other state, that
60.34state requires a peer review which contains the requirements equivalent to subdivision 8,
60.35paragraphs (a) and (e); and
61.1(3) it performs the services through an individual who has been granted practice
61.2privileges under section 326A.14.
61.3(c) A firm possessing a valid permit from another state that does not have an office
61.4in this state and which is not subject to the requirements of paragraph (a), clause (4), or
61.5(b), may perform other professional services while using the title "CPA" or "CPA firm" in
61.6this state without a permit issued under this section only if the firm:
61.7(1) has the qualifications described in subdivision 3, paragraph (b);
61.8(2) performs the services through an individual who has been granted practice
61.9privileges under section 326A.14; and
61.10(3) can lawfully perform the services in the state where the individuals with practice
61.11privileges have their principal place of business.

61.12    Sec. 67. Minnesota Statutes 2014, section 326A.05, subdivision 3, is amended to read:
61.13    Subd. 3. Qualifications. (a) An applicant for initial issuance or renewal of a permit
61.14to practice under this section shall comply with the requirements in this subdivision.
61.15(b) Notwithstanding chapter 319B or any other provision of law, a simple majority
61.16of the ownership of the firm, in terms of financial interests and voting rights of all partners,
61.17officers, shareholders, members, or managers, must belong to holders of certificates who
61.18are licensed in some state, and the partners, officers, shareholders, members, or managers,
61.19whose principal place of business is in this state, and who perform professional services in
61.20this state, must hold valid certificates issued under section 326A.04 or the corresponding
61.21provision of prior law. Although firms may include nonlicensee owners, the firm and
61.22its ownership must comply with rules adopted by the board. The firm shall register all
61.23nonlicensee owners with the state board as set forth by rule. An individual who has been
61.24granted practice privileges under section 326A.14 and who performs services for which
61.25a firm permit is required under section 326A.14, subdivision 1, paragraph (d), is not
61.26required to obtain a certificate from the board under section 326A.04.
61.27(c) A CPA firm may include nonlicensee owners provided that:
61.28(1) the firm designates a licensee of this state, or in the case of a firm that must
61.29have a permit according to section 326A.14, subdivision 1, paragraph (d), a licensee of
61.30another state who meets the requirements in section 326A.14, subdivision 1, paragraph
61.31(a) or (b), who is responsible for the proper registration of the firm and identifies that
61.32individual to the board;
61.33(2) all nonlicensee owners are persons of good moral character and are active
61.34individual participants in the CPA firm or affiliated entities; and
61.35(3) the firm complies with other requirements imposed by the board in rule.
62.1(d) An individual licensee and any individual granted practice privileges under
62.2section 326A.14 who is responsible for supervising attest or compilation services and
62.3signs or authorizes someone to sign the accountant's report on the financial statements
62.4on behalf of the firm, shall meet the competency requirements set out in the professional
62.5standards for such services.
62.6(e) An individual licensee and any individual granted practice privileges under section
62.7326A.14 who signs or authorizes someone to sign the accountants' report on the financial
62.8statements on behalf of the firm shall meet the competency requirement of paragraph (d).

62.9    Sec. 68. Minnesota Statutes 2014, section 326A.08, subdivision 7, is amended to read:
62.10    Subd. 7. Violation; penalties; costs of proceeding. (a) The board may impose
62.11a civil penalty not to exceed $2,000 $5,000 per violation upon a person or a firm that
62.12violates an order, statute, or rule that the board has issued or is empowered to enforce.
62.13(b) The board may, in addition, impose a fee to reimburse the board for all or
62.14part of the cost of the proceedings, including reasonable investigative costs, resulting
62.15in disciplinary or corrective action authorized by this section, the imposition of civil
62.16penalties, or the issuance of a cease and desist order. The fee may be imposed when the
62.17board shows that the position of the person or firm that violates a statute, rule, or order
62.18that the board has issued or is empowered to enforce is not substantially justified, unless
62.19special circumstances make an award unjust, notwithstanding the provisions of Minnesota
62.20Rules, part 1400.8401. The costs include, but are not limited to, the amount paid by the
62.21board for services from the office of administrative hearings, attorney and reasonable
62.22investigative fees, court reporters, witnesses, reproduction of records, board members' per
62.23diem compensation, board staff time, and expense incurred by board members and staff.

62.24    Sec. 69. Minnesota Statutes 2014, section 326A.10, is amended to read:
62.25326A.10 UNLAWFUL ACTS.
62.26(a) Only a licensee and individuals who have been granted practice privileges
62.27under section 326A.14 may issue a report on financial statements of any person, firm,
62.28organization, or governmental unit that results from providing attest services, or offer to
62.29render or render any attest service. Only a certified public accountant, an individual who
62.30has been granted practice privileges under section 326A.14, a CPA firm, or, to the extent
62.31permitted by board rule, a person registered under section 326A.06, paragraph (b), may
62.32issue a report on financial statements of any person, firm, organization, or governmental
62.33unit that results from providing compilation services or offer to render or render any
62.34compilation service. These restrictions do not prohibit any act of a public official or
63.1public employee in the performance of that person's duties or prohibit the performance
63.2by any nonlicensee of other services involving the use of accounting skills, including
63.3the preparation of tax returns, management advisory services, and the preparation of
63.4financial statements without the issuance of reports on them. Nonlicensees may prepare
63.5financial statements and issue nonattest transmittals or information on them which do not
63.6purport to be in compliance with the Statements on Standards for Accounting and Review
63.7Services (SSARS). Nonlicensees registered under section 326A.06, paragraph (b), may,
63.8to the extent permitted by board rule, prepare financial statements and issue nonattest
63.9transmittals or information on them.
63.10(b) Licensees and individuals who have been granted practice privileges under
63.11section 326A.14 performing attest or compilation services must provide those services in
63.12accordance with professional standards. To the extent permitted by board rule, registered
63.13accounting practitioners performing compilation services must provide those services in
63.14accordance with standards specified in board rule.
63.15(c) A person who does not hold a valid certificate issued under section 326A.04
63.16or a practice privilege granted under section 326A.14 shall not use or assume the title
63.17"certified public accountant," the abbreviation "CPA," or any other title, designation,
63.18words, letters, abbreviation, sign, card, or device tending to indicate that the person is a
63.19certified public accountant.
63.20(d) A firm shall not provide attest services or assume or use the title "certified public
63.21accountants," the abbreviation "CPA's," or any other title, designation, words, letters,
63.22abbreviation, sign, card, or device tending to indicate that the firm is a CPA firm unless
63.23(1) the firm has complied with section 326A.05, and (2) ownership of the firm is in
63.24accordance with this chapter and rules adopted by the board.
63.25(e) A person or firm that does not hold a valid certificate or permit issued under
63.26section 326A.04 or 326A.05 or has not otherwise complied with section 326A.04 or
63.27326A.05 as required in this chapter shall not assume or use the title "certified accountant,"
63.28"chartered accountant," "enrolled accountant," "licensed accountant," "registered
63.29accountant," "accredited accountant," "accounting practitioner," "public accountant,"
63.30"licensed public accountant," or any other title or designation likely to be confused
63.31with the title "certified public accountant," or use any of the abbreviations "CA," "LA,"
63.32"RA," "AA," "PA," "AP," "LPA," or similar abbreviation likely to be confused with the
63.33abbreviation "CPA." The title "enrolled agent" or "EA" may only be used by individuals
63.34so designated by the Internal Revenue Service.
63.35(f) Persons registered under section 326A.06, paragraph (b), may use the title
63.36"registered accounting practitioner" or the abbreviation "RAP." A person who does not
64.1hold a valid registration under section 326A.06, paragraph (b), shall not assume or use
64.2such title or abbreviation.
64.3(g) Except to the extent permitted in paragraph (a), nonlicensees may not use
64.4language in any statement relating to the financial affairs of a person or entity that is
64.5conventionally used by licensees in reports on financial statements or on an attest service.
64.6In this regard, the board shall issue by rule safe harbor language that nonlicensees may
64.7use in connection with such financial information. A person or firm that does not hold a
64.8valid certificate or permit, or a registration issued under section 326A.04, 326A.05, or
64.9326A.06, paragraph (b) , or has not otherwise complied with section 326A.04 or 326A.05
64.10as required in this chapter shall not assume or use any title or designation that includes the
64.11word "accountant" or "accounting" in connection with any other language, including the
64.12language of a report, that implies that the person or firm holds such a certificate, permit,
64.13or registration or has special competence as an accountant. A person or firm that does
64.14not hold a valid certificate or permit issued under section 326A.04 or 326A.05 or has not
64.15otherwise complied with section 326A.04 or 326A.05 as required in this chapter shall not
64.16assume or use any title or designation that includes the word "auditor" in connection with
64.17any other language, including the language of a report, that implies that the person or firm
64.18holds such a certificate or permit or has special competence as an auditor. However,
64.19this paragraph does not prohibit any officer, partner, member, manager, or employee of
64.20any firm or organization from affixing that person's own signature to any statement in
64.21reference to the financial affairs of such firm or organization with any wording designating
64.22the position, title, or office that the person holds, nor prohibit any act of a public official or
64.23employee in the performance of the person's duties as such.
64.24(h)(1) No person holding a certificate or registration or firm holding a permit under
64.25this chapter shall use a professional or firm name or designation that is misleading about
64.26the legal form of the firm, or about the persons who are partners, officers, members,
64.27managers, or shareholders of the firm, or about any other matter. However, names of one
64.28or more former partners, members, managers, or shareholders may be included in the
64.29name of a firm or its successor.
64.30(2) A common brand name or network name part, including common initials, used
64.31by a CPA firm in its name, is not misleading if the firm is a network firm as defined in
64.32the American Institute of Certified Public Accountants (AICPA) Code of Professional
64.33Conduct in effect July 1, 2011, and when offering or rendering services that require
64.34independence under AICPA standards, the firm must comply with the AICPA code's
64.35applicable standards on independence.
65.1(i) Paragraphs (a) to (h) do not apply to a person or firm holding a certification,
65.2designation, degree, or license granted in a foreign country entitling the holder to engage
65.3in the practice of public accountancy or its equivalent in that country, if:
65.4(1) the activities of the person or firm in this state are limited to the provision of
65.5professional services to persons or firms who are residents of, governments of, or business
65.6entities of the country in which the person holds the entitlement;
65.7(2) the person or firm performs no attest or compilation services and issues no
65.8reports with respect to the financial statements information of any other persons, firms, or
65.9governmental units in this state; and
65.10(3) the person or firm does not use in this state any title or designation other than
65.11the one under which the person practices in the foreign country, followed by a translation
65.12of the title or designation into English, if it is in a different language, and by the name
65.13of the country.
65.14(j) No holder of a certificate issued under section 326A.04 may perform attest services
65.15through any business form that does not hold a valid permit issued under section 326A.05.
65.16(k) No individual licensee may issue a report in standard form upon a compilation
65.17of financial information through any form of business that does not hold a valid permit
65.18issued under section 326A.05, unless the report discloses the name of the business through
65.19which the individual is issuing the report, and the individual:
65.20(1) signs the compilation report identifying the individual as a certified public
65.21accountant;
65.22(2) meets the competency requirement provided in applicable standards; and
65.23(3) undergoes no less frequently than once every three years, a peer review
65.24conducted in a manner specified by the board in rule, and the review includes verification
65.25that the individual has met the competency requirements set out in professional standards
65.26for such services.
65.27(l) No person registered under section 326A.06, paragraph (b), may issue a report
65.28in standard form upon a compilation of financial information unless the board by rule
65.29permits the report and the person:
65.30(1) signs the compilation report identifying the individual as a registered accounting
65.31practitioner;
65.32(2) meets the competency requirements in board rule; and
65.33(3) undergoes no less frequently than once every three years a peer review conducted
65.34in a manner specified by the board in rule, and the review includes verification that the
65.35individual has met the competency requirements in board rule.
66.1(m) Nothing in this section prohibits a practicing attorney or firm of attorneys from
66.2preparing or presenting records or documents customarily prepared by an attorney or firm
66.3of attorneys in connection with the attorney's professional work in the practice of law.
66.4(n) The board shall adopt rules that place limitations on receipt by a licensee or a
66.5person who holds a registration under section 326A.06, paragraph (b), of:
66.6(1) contingent fees for professional services performed; and
66.7(2) commissions or referral fees for recommending or referring to a client any
66.8product or service.
66.9(o) Anything in this section to the contrary notwithstanding, it shall not be a violation
66.10of this section for a firm not holding a valid permit under section 326A.05 and not having
66.11an office in this state to provide its professional services in this state so long as it complies
66.12with the applicable requirements of section 326A.05, subdivision 1.

66.13    Sec. 70. Minnesota Statutes 2014, section 336A.09, subdivision 1, is amended to read:
66.14    Subdivision 1. Procedure. (a) Oral Online and written inquiries regarding
66.15information provided by the filing of effective financing statements or lien notices may
66.16be made at any filing office submitted to the secretary of state during regular business
66.17hours or, if submitted online, at any time.
66.18(b) A filing office receiving an oral or written inquiry shall, upon request The
66.19secretary of state must, upon receiving an inquiry, provide an oral or facsimile a prompt
66.20response to the inquiry.
66.21(c) A filing office The secretary of state shall maintain a record of inquiries made
66.22under this section including:
66.23(1) the date of the inquiry;
66.24(2) the name of the debtor inquired about; and
66.25(3) identification of the person making the request for inquiry.

66.26    Sec. 71. Minnesota Statutes 2014, section 349.16, subdivision 6a, is amended to read:
66.27    Subd. 6a. Monthly regulatory fee. An organization must pay a monthly regulatory
66.28fee of 0.1 0.125 percent of the organization's gross receipts from lawful gambling
66.29conducted each month. The fee must be reported and paid on a monthly basis in a format
66.30as determined by the commissioner of revenue, and remitted to the commissioner of
66.31revenue with the organization's monthly tax return. All monthly regulatory fees received
66.32by the commissioner of revenue under this subdivision must be deposited in the lawful
66.33gambling regulation account in the special revenue fund according to section 349.151.
67.1Failure to pay the monthly regulatory fees in a timely manner may result in disciplinary
67.2action by the board.
67.3EFFECTIVE DATE.This section is effective July 1, 2015.

67.4    Sec. 72. Minnesota Statutes 2014, section 349.161, subdivision 4, is amended to read:
67.5    Subd. 4. Fees. (a) The annual fee for a distributor's license is $6,000 $7,000.
67.6(b) The annual fee for a distributor salesperson license is $100 $150.
67.7EFFECTIVE DATE.This section is effective the day following final enactment
67.8and applies to distributor and distributor salesperson licenses with an effective date
67.9of July 1, 2015, or later.

67.10    Sec. 73. Minnesota Statutes 2014, section 349.163, subdivision 2, is amended to read:
67.11    Subd. 2. License; fee. The annual fee for a manufacturer's license is $9,000 $10,000.
67.12EFFECTIVE DATE.This section is effective the day following final enactment
67.13and applies to manufacturer licenses with an effective date of July 1, 2015, or later.

67.14    Sec. 74. Minnesota Statutes 2014, section 349.163, subdivision 6, is amended to read:
67.15    Subd. 6. Samples of gambling equipment. (a) The board shall require each
67.16licensed manufacturer to submit to the board one or more samples of each item of
67.17gambling equipment manufactured for use or resale in this state. For purposes of this
67.18subdivision, a manufacturer is also required to submit the applicable version of any
67.19software necessary to operate electronic devices and related systems.
67.20(b) The board shall inspect and test all the equipment, including software and
67.21software upgrades, it deems necessary to determine the equipment's compliance with law
67.22and board rules. Samples required under this subdivision must be approved by the board
67.23before the equipment being sampled is shipped into or sold for use or resale in this state.
67.24The board shall impose a fee of $25 $30 for each item of gambling equipment that the
67.25manufacturer submits for approval or for which the manufacturer requests approval. The
67.26board shall impose a fee of $100 $125 for each sample of gambling equipment that it tests.
67.27(c) The board may require samples of gambling equipment to be tested by an
67.28independent testing laboratory prior to submission to the board for approval. All costs
67.29of testing by an independent testing laboratory must be borne by the manufacturer. An
67.30independent testing laboratory used by a manufacturer to test samples of gambling
67.31equipment must be approved by the board before the equipment is submitted to the
67.32laboratory for testing.
68.1(d) The board may request the assistance of the commissioner of public safety and
68.2the director of the State Lottery in performing the tests.
68.3EFFECTIVE DATE.This section is effective the day following final enactment
68.4and applies to games submitted for approval on July 1, 2015, or later.

68.5    Sec. 75. Minnesota Statutes 2014, section 349.166, subdivision 2, is amended to read:
68.6    Subd. 2. Exemptions. (a) Lawful gambling, with the exception of linked bingo
68.7games, may be conducted by an organization without a license and without complying
68.8with sections 349.168, subdivisions 1 and 2; 349.17, subdivision 4; 349.18, subdivision 1;
68.9and 349.19 if:
68.10(1) the organization conducts lawful gambling on five or fewer days in a calendar year;
68.11(2) the organization does not award more than $50,000 in prizes for lawful gambling
68.12in a calendar year;
68.13(3) the organization submits a board-prescribed application and pays a fee of $50
68.14$100 to the board for each gambling occasion, and receives an exempt permit number
68.15from the board. If the application is postmarked or received less than 30 days before the
68.16gambling occasion, the fee is $100 $150 for that application. The application must include
68.17the date and location of the occasion, the types of lawful gambling to be conducted, and
68.18the prizes to be awarded;
68.19(4) the organization notifies the local government unit 30 days before the lawful
68.20gambling occasion, or 60 days for an occasion held in a city of the first class;
68.21(5) the organization purchases all gambling equipment and supplies from a licensed
68.22distributor; and
68.23(6) the organization reports to the board, on a single-page form prescribed by the
68.24board, within 30 days of each gambling occasion, the gross receipts, prizes, expenses,
68.25expenditures of net profits from the occasion, and the identification of the licensed
68.26distributor from whom all gambling equipment was purchased.
68.27(b) If the organization fails to file a timely report as required by paragraph (a), clause
68.28(6), the board shall not issue any authorization, license, or permit to the organization to
68.29conduct lawful gambling on an exempt, excluded, or licensed basis until the report has
68.30been filed and the organization may be subject to penalty as determined by the board. The
68.31board may refuse to issue any authorization, license, or permit if a report or application is
68.32determined to be incomplete or knowingly contains false or inaccurate information.
68.33(c) Merchandise prizes must be valued at their fair market value.
68.34(d) Organizations that qualify to conduct exempt raffles under paragraph (a), are
68.35exempt from section 349.173, paragraph (b), clause (2), if the raffle tickets are sold
69.1only in combination with an organization's membership or a ticket for an organization's
69.2membership dinner and are not included with any other raffle conducted under the exempt
69.3permit.
69.4(e) Unused pull-tab and tipboard deals must be returned to the distributor within
69.5seven working days after the end of the lawful gambling occasion. The distributor must
69.6accept and pay a refund for all returns of unopened and undamaged deals returned under
69.7this paragraph.
69.8(f) The organization must maintain all required records of exempt gambling activity
69.9for 3-1/2 years.
69.10EFFECTIVE DATE.This section is effective the day following final enactment
69.11and applies to all permits with an effective date of July 1, 2015, or later.

69.12    Sec. 76. [383B.83] LIMITS ON RAILROAD CONDEMNATION POWERS
69.13OVER CERTAIN GOVERNMENTAL PROPERTY INTERESTS.
69.14Notwithstanding anything to the contrary in chapter 117, sections 222.26, 222.27,
69.15222.36, or any other law, the powers of a railroad corporation or a railroad company
69.16or a railroad interest acting as a public service corporation or a common carrier do not
69.17include the power to exercise eminent domain over a property interest owned by Hennepin
69.18County, the Hennepin County Housing and Redevelopment Authority, or the Hennepin
69.19County Regional Railroad Authority if such governmental power, by resolution of its
69.20governing board, determines based on findings that the public safety or access of first
69.21responders would be detrimentally affected by the exercise.
69.22EFFECTIVE DATE.This section is effective retroactively from March 2, 2015,
69.23and applies to any eminent domain action to acquire any property interest of any of the
69.24named entities.

69.25    Sec. 77. Laws 2013, chapter 142, article 1, section 10, is amended to read:
69.26
69.27
Sec. 10. OFFICE OF ENTERPRISE
TECHNOLOGY MN.IT SERVICES
$
2,431,000
$
2,431,000
69.28During the biennium ending June 30, 2015,
69.29the Office of Enterprise Technology MN.IT
69.30Services must not charge fees to a public
69.31noncommercial educational television
69.32broadcast station eligible for funding under
69.33Minnesota Statutes, chapter 129D, for
70.1access to the state broadcast infrastructure.
70.2If the access fees not charged to public
70.3noncommercial educational television
70.4broadcast stations total more than $400,000
70.5for the biennium, the office may charge for
70.6access fees in excess of these amounts.
70.7The commissioner of Minnesota management
70.8and budget is authorized to provide cash
70.9flow assistance of up to $110,000,000 from
70.10the special revenue fund or other statutory
70.11general funds as defined in Minnesota
70.12Statutes, section 16A.671, subdivision 3,
70.13paragraph (a), to the Office of Enterprise
70.14Technology MN.IT Services for the purpose
70.15of managing revenue and expenditure
70.16differences during the initial phases of IT
70.17consolidation. These funds shall be repaid
70.18with interest by June 30, 2015 the end of the
70.19fiscal year 2015 closing period.
70.20EFFECTIVE DATE.This section is effective the day following final enactment.

70.21    Sec. 78. Laws 2014, chapter 287, section 25, is amended to read:
70.22    Sec. 25. PARKING RAMP; REQUIRED USER FINANCING.
70.23The amount equivalent to debt service on the design and construction costs allocated
70.24to the parking garage to be located on the block bounded by Sherburne Avenue on the north,
70.25Park Street on the west, University Avenue on the south, and North Capitol Boulevard on
70.26the east must be user-financed from must be transferred from parking fees collected and
70.27deposited into the state parking account and credited to the debt service account for the
70.28Legislative Office Facility. to the general fund to offset any direct appropriations made to
70.29the senate for debt service payments for the legislative parking garage.

70.30    Sec. 79. CAPITOL ROOM NUMBERS.
70.31After the Capitol renovation has been completed, the commissioner of administration
70.32must use the same room numbers on signage to identify legacy rooms that were used to
70.33identify the rooms before the Capitol renovation. For purposes of this section, "Capitol
71.1renovation" means the construction project for which funds were appropriated in Laws
71.22013, chapter 136, section 3; "legacy rooms" means any room in the Capitol after Capitol
71.3renovation that has dimensions and a location that are substantially similar to a room
71.4within the Capitol that existed before renovation; and "signage" means any posting on any
71.5surface in the Capitol building.

71.6    Sec. 80. IN-LIEU OF RENT EVALUATION.
71.7(a) The commissioner of administration must evaluate and provide recommendations
71.8regarding the base appropriation to the Department of Administration for an in-lieu of rent
71.9payment for space costs of the legislature and veterans organizations, vending operators,
71.10ceremonial space, and statutorily free space in the Capitol building and in other buildings
71.11on the Capitol grounds under the custodial control of the Department of Administration.
71.12(b) By January 15, 2017, the commissioner must report to the chairs and
71.13ranking minority members of the committees and divisions in the senate and the
71.14house of representatives with jurisdiction over the appropriation to the Department of
71.15Administration for the in-lieu of rent payment. The report must:
71.16(1) identify the amount and quality of space that will be occupied by the senate, the
71.17house of representatives, and veterans organizations, ceremonial space, and statutorily free
71.18space, in fiscal years 2018 and 2019, including a comparison to the amount and quality of
71.19space occupied by the same tenants in fiscal year 2013;
71.20(2) evaluate and justify the expense components included and assumptions made in
71.21determining lease rates and make comparisons to market rates; and
71.22(3) evaluate whether the base funding for fiscal years 2018 and 2019 for the in-lieu
71.23of rent appropriation is justified, and if not, recommend an increase or decrease.
71.24(c) In conducting the evaluation and preparing the report, the commissioner must
71.25consult with the secretary of the senate, the chief clerk of the house of representatives, the
71.26commissioner of employment and economic development on behalf of the services for the
71.27blind, and the commissioner of veterans affairs on behalf of veterans organizations that use
71.28space for which the Department of Administration receives an in-lieu of rent appropriation.

71.29    Sec. 81. RULEMAKING.
71.30(a) The Board of Cosmetologist Examiners shall adopt rules governing the licensure,
71.31operation, and inspection of mobile salons, including facility requirements; safety and
71.32infection control requirements; a process for a salon licensee to notify the board of the
71.33mobile salon's location and times of operation; requirements for supplying and disposing
71.34of water and waste products; and the scope of personal services to be provided in mobile
72.1salons. The rules must prohibit mobile salons from violating reasonable municipal
72.2restrictions on time and place of operation of a mobile salon within its jurisdiction,
72.3and shall establish penalties, up to and including revocation of a license, for repeated
72.4violations of municipal laws.
72.5(b) The Board of Cosmetologist Examiners shall adopt rules governing the advanced
72.6practice esthetician license, including the educational and training requirements, scope of
72.7practice, and the conditions and process of issuing and renewing the license.
72.8EFFECTIVE DATE.Paragraph (a) of this section is effective the day following
72.9final enactment. Paragraph (b) of this section is effective January 1, 2016, and expires
72.10January 1, 2019.

72.11    Sec. 82. POLITICAL CONTRIBUTION CREDIT.
72.12Notwithstanding the provisions of Minnesota Statutes, section 290.06, subdivision
72.1323, or any other law to the contrary, the political contribution refund does not apply to
72.14contributions made after June 30, 2015, and before July 1, 2017.

72.15    Sec. 83. STATE AGENCY TECHNOLOGY PROJECTS.
72.16Any appropriation in this chapter for information technology project services and
72.17support is subject to Minnesota Statutes, section 16E.0466. If an agency needs ongoing
72.18information technology services as a result of the services and support paid for with an
72.19appropriation in this chapter, the agency must enter into an agreement with the Office of
72.20MN.IT Services to provide those services. The agreement must require the agency to pay
72.21the Office of MN.IT Services under rates and mechanisms specified in the agreement.

72.22    Sec. 84. EXAMINATION OF COUNTY RECORDS; REPORT.
72.23Consistent with the authority granted under Minnesota Statutes, section 3.971,
72.24the Office of the Legislative Auditor shall report on the efficiency of the examinations
72.25conducted by the state auditor under Minnesota Statutes, section 6.48. The report must be
72.26forwarded to the house of representatives and senate chairs of legislative committees with
72.27jurisdiction over state government finance by January 15, 2016.

72.28    Sec. 85. REPORT ON AGENCY CHIEF INFORMATION OFFICERS.
72.29The chief information officer of MN.IT must report to the legislature by January 15,
72.302016, on reduction in the number of chief information officers (CIOs) in state agencies.
72.31The report must include the number of CIOs on July 1, 2015, the number on January
72.3215, 2016, and plans to reduce that number.

73.1    Sec. 86. TRANSITION.
73.2(a) Members of an ethnic council specified in new Minnesota Statutes, section
73.315.0145, on July 1, 2015, continue to serve on the council until the end of their current
73.4term. However, if a member of a council has served eight years or more on the council
73.5at any time before December 31, 2015, the term of that member expires December 31,
73.62015. If a council has more members on July 1, 2015, than is provided for by Minnesota
73.7Statutes, section 15.0145, positions on the council shall not be filled until the expiration of
73.8a term results in fewer members on the council than provided for in Minnesota Statutes,
73.9section 15.0145. Membership qualifications newly specified in Minnesota Statutes, section
73.1015.0145, must be complied with as soon as possible when terms of current members expire.
73.11(b) The Legislative Coordinating Commission must appoint an executive director
73.12for each council no later than November 15, 2015. The authority of the Legislative
73.13Coordinating Commission to recruit and select persons to serve as executive directors
73.14is effective the day following final enactment. An incumbent executive director of a
73.15council may apply to be appointed by the Legislative Coordinating Commission but, if
73.16not selected, the employment of the incumbent ends when the Legislative Coordinating
73.17Commission appoints a new executive director, or on another date determined by the
73.18Legislative Coordinating Commission. Other council staff are transferred to employment
73.19with the reformulated councils specified in Minnesota Statutes, section 15.0145.
73.20(c) Minnesota Statutes, section 15.039, subdivisions 1 to 6, apply to the ethnic
73.21councils that are reformulated in this act.

73.22    Sec. 87. REVISOR'S INSTRUCTION.
73.23    Subdivision 1. Cosmetology. The revisor of statutes shall change the word
73.24"sanitation" to "infection control" and the word "lapsed" to "expired" wherever they
73.25appear in Minnesota Statutes, chapter 155A, or Minnesota Rules, chapter 2105 or 2110.
73.26    Subd. 2. County audits. In the next and subsequent edition of Minnesota Statutes,
73.27the Revisor of Statutes shall substitute a reference to section 6.481 for each reference
73.28to section 6.48.
73.29    Subd. 3. Ethnic councils. (a) In the next and subsequent editions of Minnesota
73.30Statutes, the revisor of statutes shall substitute the names of councils as follows in each
73.31place where the names occur:
73.32(1) Council for Minnesotans of African Heritage, in place of Council on Black
73.33Minnesotans; and
73.34(2) Minnesota Council on Latino Affairs, in place of Council on Affairs of
73.35Chicano/Latino People.
74.1(b) The revisor of statutes shall change cross-references to sections 3.9223, 3.9225,
74.2and 3.9226, with Minnesota Statutes, section 15.0145, and make changes necessary to
74.3correct punctuation, grammar, or sentence structure.
74.4EFFECTIVE DATE.Subdivision 2 is effective August 1, 2016.

74.5    Sec. 88. REPEALER.
74.6(a) Minnesota Statutes 2014, sections 3.9223; 3.9225; and 3.9226, subdivisions 1,
74.72, 3, 4, 5, 6, and 7, are repealed.
74.8(b) Minnesota Statutes 2014, sections 6.48; and 375.23, are repealed.
74.9(c) Minnesota Statutes 2014, section 155A.23, subdivision 6, is repealed.

74.10ARTICLE 3
74.11MILITARY AND VETERANS AFFAIRS

74.12    Section 1. Minnesota Statutes 2014, section 190.19, subdivision 2a, is amended to read:
74.13    Subd. 2a. Uses; veterans. (a) Money appropriated to the Department of Veterans
74.14Affairs from the Minnesota "Support Our Troops" account may be used for:
74.15    (1) grants to veterans service organizations;
74.16    (2) outreach to underserved veterans;
74.17(3) providing services and programs for veterans and their families; and
74.18(4) transfers to the vehicle services account for Gold Star license plates under
74.19section 168.1253.;
74.20(5) grants of up to $100,000 to any organization approved by the commissioner of
74.21veterans affairs for the purpose of supporting and improving the lives of veterans and
74.22their families; and
74.23(6) grants to an eligible foundation.
74.24(b) For purposes of this subdivision, "eligible foundation" includes any organization
74.25that:
74.26(1) is a tax-exempt organization under section 501(c) of the Internal Revenue
74.27Code; and
74.28(2) is a nonprofit corporation under chapter 317A and the organization's articles of
74.29incorporation specify that a purpose of the organization includes (i) providing assistance
74.30to veterans and their families or (ii) enhancing the lives of veterans and their families.

74.31    Sec. 2. Minnesota Statutes 2014, section 190.19, subdivision 3, is amended to read:
74.32    Subd. 3. Annual report. The adjutant general and commissioner of veterans affairs
74.33must report by February 1, 2007, and each year thereafter, to the chairs and ranking minority
75.1members of the legislative committees and divisions with jurisdiction over military and
75.2veterans' affairs on the number, amounts, and use of grants made by the adjutant general
75.3each agency from the Minnesota "Support Our Troops" account in the previous year.

75.4    Sec. 3. Minnesota Statutes 2014, section 192.38, subdivision 1, is amended to read:
75.5    Subdivision 1. Temporary emergency relief. If any officer or enlisted member
75.6of the military forces is wounded or otherwise disabled, dies from disease contracted or
75.7injuries received, or is killed while in state active service as defined in section 190.05,
75.8subdivision 5a
, the officer or member, or in the case of death the officer's or member's
75.9dependent spouse, child, or parent, may be provided with immediate temporary relief as
75.10necessary in cases of severe hardship, in an amount to be determined by the adjutant general
75.11and approved by the governor or a death gratuity payment equal to the amount allowed for
75.12service members in a federal active service status. All payments under this subdivision
75.13shall be made from appropriations for the maintenance of the state military forces
75.14emergency services. The adjutant general shall notify the Department of Management and
75.15Budget of any payments made pursuant to this subdivision and the amount of it shall be
75.16subtracted from any award made by the Department of Management and Budget.

75.17    Sec. 4. Minnesota Statutes 2014, section 192.501, is amended by adding a subdivision
75.18to read:
75.19    Subd. 1d. Reclassification bonus program. (a) The adjutant general must establish
75.20a program to provide a bonus to eligible members of the Minnesota National Guard who
75.21complete training that results in the award of a new military occupational specialty or
75.22Air Force specialty code in specialties that are identified by the adjutant general to be
75.23necessary for the enhanced readiness of the Minnesota National Guard.
75.24(b) Eligibility for the bonus is limited to a member of the National Guard who:
75.25(1) is serving satisfactorily as determined by the adjutant general;
75.26(2) has 16 or fewer years of services creditable for retirement; and
75.27(3) undergoes military training deemed by the adjutant general as sufficiently
75.28important to the readiness of the National Guard or a unit of the National Guard to warrant
75.29the payment of a bonus in an amount to generally encourage the member's participation
75.30in the training.
75.31The adjutant general may, within the limitations of this paragraph and other applicable
75.32laws, determine additional eligibility criteria for the bonus, and must specify all of the
75.33criteria in regulations and publish changes as necessary.
76.1(c) The bonus payments must be made on a schedule that is determined and
76.2published in department regulations by the adjutant general.
76.3(d) If a member fails to complete a term of reenlistment or an obligated term of
76.4commissioned service for which a bonus was paid, the adjutant general may seek to
76.5recoup a prorated amount of the bonus as determined by the adjutant general.

76.6    Sec. 5. Minnesota Statutes 2014, section 197.133, is amended to read:
76.7197.133 DISPOSAL OF PROPERTY AND EXPIRATION OF BOARD OF
76.8GOVERNORS.
76.9(a) If a majority of the board determines that the disposal of the Big Island Veterans
76.10camp or a portion of the camp is in the best interests of Minnesota veterans, or if the camp
76.11is not used solely as a camp for and by disabled and other veterans and their families and
76.12operated and maintained in compliance with all state, federal, and local laws, the board
76.13may dispose of the property at market value as provided in this section. Before disposing
76.14of the property, the board shall give notice by certified mail to the commissioner of
76.15veterans affairs of its decision to dispose of the property. The commissioner shall publish
76.16the notice in the State Register. Interested governmental agencies have until the end of the
76.17next legislative session after the notice to appropriate money to purchase the property.
76.18(b) Proceeds realized from the disposal of the property and any assets on hand at
76.19the time of the disposal of the property, must be placed in an irrevocable trust to be used
76.20for the initiation or maintenance of veterans programs in the state of Minnesota. Trustees
76.21must be appointed in the same manner as provided for under Minnesota Statutes 2014,
76.22section 197.131. The trustees shall consult with the commissioner of veterans affairs to
76.23determine the needs of Minnesota veterans and provide the commissioner with an annual
76.24written report on the trust. The commissioner must approve all expenditures from the
76.25trust. A certified audit of all assets, expenditures, and property must be conducted prior
76.26to any disposition of any assets under the control of the board. Any board member who
76.27would benefit directly or indirectly financially from the sale of this property must be
76.28removed by the board and a successor appointed as provided by Minnesota Statutes 2014,
76.29section 197.131. Upon final disposition of all assets to the trust, the board must disband.
76.30Should the assets of the trust be exhausted, the trust must be terminated.
76.31(c) The trustees appointed under paragraph (b) shall have the exclusive authority
76.32to remove a trustee of the trust established under paragraph (b). A trustee may be
76.33removed at any time without cause upon a majority vote of the trustees with consent
76.34of the commissioner of veterans affairs.
77.1(d) A vacancy in a trusteeship of the trust established under paragraph (b) must
77.2be filled for the remainder of the unexpired term in the same manner as the original
77.3appointment.

77.4    Sec. 6. Minnesota Statutes 2014, section 197.46, is amended to read:
77.5197.46 VETERANS PREFERENCE ACT; REMOVAL FORBIDDEN; RIGHT
77.6OF MANDAMUS.
77.7(a) Any person whose rights may be in any way prejudiced contrary to any of the
77.8provisions of this section, shall be entitled to a writ of mandamus to remedy the wrong.
77.9No person holding a position by appointment or employment in the several counties,
77.10cities, towns, school districts and all other political subdivisions in the state, who is a
77.11veteran separated from the military service under honorable conditions, shall be removed
77.12from such position or employment except for incompetency or misconduct shown after a
77.13hearing, upon due notice, upon stated charges, in writing.
77.14(b) Any veteran who has been notified of the intent to discharge the veteran from an
77.15appointed position or employment pursuant to this section shall be notified in writing of
77.16such intent to discharge and of the veteran's right to request a hearing within 60 days of
77.17receipt of the notice of intent to discharge. The failure of a veteran to request a hearing
77.18within the provided 60-day period shall constitute a waiver of the right to a hearing. Such
77.19failure shall also waive all other available legal remedies for reinstatement.
77.20Request for a hearing concerning such a discharge shall be made in writing and
77.21submitted by mail or personal service to the employment office of the concerned employer
77.22or other appropriate office or person. If the veteran requests a hearing under this section,
77.23such written request must also contain the veteran's election to be heard by a civil service
77.24board or commission, a merit authority, or a three-person panel as defined in paragraph
77.25(c). If the veteran fails to identify the veteran's election, the governmental subdivision
77.26may select the hearing body.
77.27(c) In all governmental subdivisions having an established civil service board or
77.28commission, or merit system authority, such hearing for removal or discharge shall be
77.29held before such civil service board or commission or merit system authority. Where no
77.30such civil service board or commission or merit system authority exists, such hearing
77.31shall be held by a board of three persons appointed as follows: one by the governmental
77.32subdivision, one by the veteran, and the third by the two so selected. In the event that
77.33the hearing is authorized to be held before a three-person board, the governmental
77.34subdivision's notice of intent to discharge shall state that the veteran must respond within
77.3560 days of receipt of the notice of intent to discharge, and provide in writing to the
78.1governmental subdivision the name, United States mailing address, and telephone number
78.2of the veteran's selected representative for the three-person board. The failure of a veteran
78.3to submit the name, address, and telephone number of the veteran's selected representative
78.4to the governmental subdivision by mail or by personal service within the provided
78.5notice's 60-day period, shall constitute a waiver of the veteran's right to the hearing and all
78.6other legal remedies available for reinstatement of the veteran's employment position. In
78.7the event the two persons selected by the veteran and governmental subdivision do not
78.8appoint the third person within ten days after the appointment of the last of the two,
78.9then the judge of the district court of the county wherein the proceeding is pending, or
78.10if there be more than one judge in said county then any judge in chambers, shall have
78.11jurisdiction to appoint, and upon application of either or both of the two so selected shall
78.12appoint, the third person to the board and the person so appointed by the judge with the
78.13two first selected shall constitute the board.
78.14(d) Either the veteran or the governmental subdivision may appeal from the decision
78.15of the board upon the charges to the district court by causing written notice of appeal,
78.16stating the grounds thereof, to be served upon the other party within 15 days after notice of
78.17the decision and by filing the original notice of appeal with proof of service thereof in the
78.18office of the court administrator of the district court within ten days after service thereof.
78.19Nothing in section 197.455 or this section shall be construed to apply to the position of
78.20private secretary, superintendent of schools, or one chief deputy of any elected official
78.21or head of a department, or to any person holding a strictly confidential relation to the
78.22appointing officer. Nothing in this section shall be construed to apply to the position of
78.23teacher. The burden of establishing such relationship shall be upon the appointing officer
78.24in all proceedings and actions relating thereto.
78.25(e) For disputes heard by a civil service board, the political subdivisions shall
78.26bear all costs associated with the hearing but not including attorney fees for attorneys
78.27representing the veteran. For disputes heard by a three-person panel, all parties shall bear
78.28equally all costs associated with the hearing, but not including attorney fees for attorneys
78.29representing the veteran. If the veteran prevails in a dispute heard by a civil service board
78.30or a three-person panel and the hearing reverses all aspects of discharge, the governmental
78.31subdivision shall pay the veteran's reasonable attorney fees.
78.32(f) All officers, boards, commissions, and employees shall conform to, comply with,
78.33and aid in all proper ways in carrying into effect the provisions of section 197.455 and this
78.34section notwithstanding any laws, charter provisions, ordinances or rules to the contrary.
78.35Any willful violation of such sections by officers, officials, or employees is a misdemeanor.
79.1EFFECTIVE DATE.This section is effective the day following final enactment
79.2and applies to all notices of intent to discharge issued on or after that date.

79.3    Sec. 7. [197.987] HONOR AND REMEMBER FLAG.
79.4    Subdivision 1. Legislative findings. The legislature of the state of Minnesota finds
79.5and determines that:
79.6(1) since the Revolutionary War, more than 1,000,000 members of the United States
79.7armed forces have paid the ultimate price by sacrificing their lives in active military
79.8service for the United States of America;
79.9(2) the contribution made by those fallen members of the armed forces is deserving
79.10of state and national recognition; and
79.11(3) the Honor and Remember Flag is an appropriate symbol that acknowledges the
79.12selfless sacrifice of those members of the United States armed forces.
79.13    Subd. 2. Designation. The Honor and Remember Flag described in subdivision
79.143 is designated as the symbol of our state's concern and commitment to honoring and
79.15remembering the lives of all members of the United States armed forces who have lost
79.16their lives in the line of duty while serving honorably in active military service in the
79.17United States armed forces or of a service-connected cause due to or aggravated by that
79.18service, as determined by the United States Department of Defense or the United States
79.19Department of Veterans Affairs. This designation is contingent on the flag being available
79.20for purchase at a reasonable price.
79.21    Subd. 3. Description. The Honor and Remember Flag shall conform substantially
79.22to the following description: The Honor and Remember Flag is the same standard
79.23proportions as the flag of the United States of America. Its design contains a red field that
79.24occupies the top three-quarters and a white field that occupies the bottom quarter of the
79.25flag. In the center of the red field is a five-pointed, gold star with the top point located
79.26near the top of the red field and the two bottom points extending about one-quarter of the
79.27way into the white field. The gold star has a white border surrounded by a blue border.
79.28Between the two bottom points of the star is a tri-folded American flag displaying the blue
79.29field and some stars, which is the configuration of the American flag presented to the
79.30family of the deceased at a military memorial service. At the top of the tri-folded flag,
79.31extending into the center of the gold star, is a stylized, three-part flame, with one blue part
79.32and two red parts. In the white field below the tri-folded flag, the words "Honor and
79.33Remember" are centered. The Honor and Remember Flag is protected by U. S. copyright,
79.34registration number VA0001670661, owned by Honor and Remember, Inc.
80.1    Subd. 4. Suggested days for flag display. (a) The chief administrator of each
80.2governmental building or facility within this state, as defined in paragraph (b), is
80.3encouraged to display the Honor and Remember Flag on the following days each year:
80.4(1) Armed Forces Day, the third Saturday in May;
80.5(2) Flag Day, June 14;
80.6(3) July 2nd and July 3rd, in remembrance of the 262 soldiers of the 1st Regiment
80.7Minnesota Volunteer Infantry who, at the Battle of Gettysburg during the American Civil
80.8War, fought so gallantly and successfully to repulse two major Confederate attacks on the
80.9main Union line, suffering over 80 percent casualties, thereby turning the battle and the
80.10war and helping to preserve the Union itself at that pivotal moment in our nation's history;
80.11(4) July 4th, Independence Day;
80.12(5) the third Friday of September, National POW/MIA Recognition Day;
80.13(6) November 11, Veterans Day;
80.14(7) July 27, Korean War Armistice Day;
80.15(8) March 29, Vietnam Veterans Day; and
80.16(9) any day on which the United States flag is displayed at a governmental building
80.17or facility within this state.
80.18(b) For purposes of this section, "governmental building or facility within this state"
80.19means the following locations:
80.20(1) the Minnesota State Capitol, the Office of the Governor and each other Minnesota
80.21constitutional office, the chambers of the Minnesota Senate and the Minnesota House of
80.22Representatives, the Minnesota Judicial Center and each Minnesota District Court House,
80.23any official state of Minnesota veterans memorial, Minnesota veterans home, Minnesota
80.24veterans cemetery, state veterans service centers, and state veterans community-based
80.25outreach centers; and
80.26(2) any appropriate local government building or facility, as determined by the
80.27governing body of that local government.
80.28    Subd. 5. Limitation. This section may not be construed or interpreted to require
80.29any employee to report to work solely for the purpose of providing for the display of the
80.30Honor and Remember Flag or any other flag.
80.31    Subd. 6. Implementation. If a governmental building or facility within this state
80.32opts to display the Honor and Remember Flag, the chief administrator of that facility shall
80.33prescribe procedures necessary for the display.
80.34    Subd. 7. Flag donation. Notwithstanding sections 10A.071 and 471.895, any
80.35named public office or public official may accept a donation of one or more Honor and
80.36Remember Flags for the purpose of this section.
81.1EFFECTIVE DATE.This section is effective the day following final enactment.

81.2    Sec. 8. Minnesota Statutes 2014, section 198.01, is amended to read:
81.3198.01 VETERANS HOME; ELIGIBILITY OF VETERANS.
81.4The Minnesota veterans homes shall provide nursing care and related health
81.5and social services for veterans and their spouses who meet eligibility and admission
81.6requirements of the Minnesota veterans homes. The commissioner may not close a
81.7veterans home unless closure of the home is specifically authorized or required by a law
81.8enacted after July 1, 2015. The word "veteran" as used in this section has the meaning
81.9provided in section 197.447.

81.10    Sec. 9. REPEALER.
81.11Minnesota Statutes 2014, sections 197.131; and 197.132, are repealed.

81.12ARTICLE 4
81.13PARI-MUTUEL HORSE RACING

81.14    Section 1. Minnesota Statutes 2014, section 240.01, subdivision 22, is amended to read:
81.15    Subd. 22. Racing season. "Racing season" means that portion of the calendar
81.16year starting at the beginning of the day of the first live horse race conducted by the
81.17licensee and concluding at the end of the day of the last live horse race conducted by
81.18the licensee in any year.
81.19For purposes of this chapter, the racing season begins before the first Saturday in
81.20May and continues for not less than 25 consecutive weeks.
81.21EFFECTIVE DATE.This section is effective January 1, 2016.

81.22    Sec. 2. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision
81.23to read:
81.24    Subd. 28. Takeout. "Takeout" means the total amount of money, excluding
81.25breakage, withheld from each pari-mutuel pool, as authorized by statute or rule.

81.26    Sec. 3. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision
81.27to read:
81.28    Subd. 29. Handle "Handle" means the aggregate of all pari-mutuel pools, excluding
81.29refundable wagers or cancellations.

82.1    Sec. 4. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision
82.2to read:
82.3    Subd. 30. Mixed meet. "Mixed meet" means a racing day or series of racing days
82.4on which the racing of more than one breed of horse occurs.

82.5    Sec. 5. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision
82.6to read:
82.7    Subd. 31. Banked. "Banked" means any game of chance that is played with the
82.8house as a participant in the game, where the house takes on all players, collects from all
82.9losers, and pays all winners, and the house can win.

82.10    Sec. 6. Minnesota Statutes 2014, section 240.01, is amended by adding a subdivision
82.11to read:
82.12    Subd. 32. Steward. A "steward" means an official described in section 240.16. The
82.13term steward includes the terms "judge," "chief steward," and "presiding judge," and
82.14applies to stewards and judges of the commission or a class B licensee, but not to other
82.15racing officials, such as paddock or placement judges, who are employees or agents of
82.16a class B licensee.

82.17    Sec. 7. Minnesota Statutes 2014, section 240.011, is amended to read:
82.18240.011 APPOINTMENT OF DIRECTOR.
82.19The governor shall appoint the director of the Minnesota Racing Commission,
82.20who serves in the unclassified service at the governor's pleasure. The director must be
82.21a person qualified by experience in the administration and regulation of pari-mutuel
82.22racing and training to possess the skills necessary to discharge the duties of the director.
82.23The governor must select a director from a list of one or more names submitted by the
82.24Minnesota Racing Commission.

82.25    Sec. 8. Minnesota Statutes 2014, section 240.03, is amended to read:
82.26240.03 COMMISSION POWERS AND DUTIES.
82.27The commission has the following powers and duties:
82.28(1) to regulate horse racing in Minnesota to ensure that it is conducted in the public
82.29interest;
82.30(2) to issue licenses as provided in this chapter;
82.31(3) to enforce all laws and rules governing horse racing;
82.32(4) to collect and distribute all taxes provided for in this chapter;
83.1(5) to conduct necessary investigations and inquiries and to issue subpoenas to
83.2compel the attendance of witnesses and the submission of information, documents, and
83.3records, and other evidence it deems necessary to carry out its duties;
83.4(6) to supervise the conduct of pari-mutuel betting on horse racing;
83.5(7) to employ and supervise personnel under this chapter;
83.6(8) to determine the number of racing days to be held in the state and at each
83.7licensed racetrack;
83.8(9) to take all necessary steps to ensure the integrity of racing in Minnesota; and
83.9(10) to impose fees on the racing and card playing industries sufficient to recover the
83.10operating costs of the commission with the approval of the legislature according to section
83.1116A.1283 . Notwithstanding section 16A.1283, when the legislature is not in session, the
83.12commissioner of management and budget may grant interim approval for any new fees
83.13or adjustments to existing fees that are not statutorily specified, until such time as the
83.14legislature reconvenes and acts upon the new fees or adjustments. As part of its biennial
83.15budget request, the commission must propose changes to its fees that will be sufficient to
83.16recover the operating costs of the commission.

83.17    Sec. 9. Minnesota Statutes 2014, section 240.08, subdivision 2, is amended to read:
83.18    Subd. 2. Application. (a) An application for a class C license must be on a form
83.19the commission prescribes and must be accompanied by an affidavit of qualification
83.20that the applicant:
83.21(a) (1) is not in default in the payment of an obligation or debt to the state under
83.22Laws 1983, chapter 214;
83.23(b) (2) does not have a felony conviction of record in a state or federal court and
83.24does not have a state or federal felony charge pending;
83.25(c) (3) is not and never has been connected with or engaged in an illegal business;
83.26(d) (4) has never been found guilty of fraud or misrepresentation in connection
83.27with racing or breeding;
83.28(e) (5) has never been found guilty of a violation of law or rule relating to horse
83.29racing, pari-mutuel betting or any other form of gambling which is a serious violation
83.30as defined by the commission's rules; and
83.31(f) (6) has never been found to have knowingly violated a rule or an order of the
83.32commission or a law or rule of Minnesota or another jurisdiction relating to horse racing,
83.33pari-mutuel betting, or any other form of gambling.
83.34(b) The application must also contain an irrevocable consent statement, to be signed
83.35by the applicant, which states that suits and actions relating to the subject matter of the
84.1application or acts or omissions arising from it may be commenced against the applicant in
84.2any court of competent jurisdiction in this state by the service on the secretary of state of
84.3any summons, process, or pleading authorized by the laws of this state. If any summons,
84.4process, or pleading is served upon the secretary of state, it must be by duplicate copies.
84.5One copy must be retained in the Office of the Secretary of State and the other copy must
84.6be forwarded immediately by certified mail to the address of the applicant, as shown by
84.7the records of the commission.

84.8    Sec. 10. Minnesota Statutes 2014, section 240.08, subdivision 4, is amended to read:
84.9    Subd. 4. License issuance and renewal. If the commission determines that
84.10the applicant is qualified for the occupation for which licensing is sought and will
84.11not adversely affect the public health, welfare, and safety or the integrity of racing in
84.12Minnesota, it may issue a class C license to the applicant. If it makes a similar finding for
84.13a renewal of a class C license it may renew the license. Class C licenses are effective for
84.14one year. until December 31 of the calendar year for which they are issued. Certain types
84.15of class C licenses, to be determined by the commission, are effective until December 31
84.16of the third calendar year for which they have been issued.
84.17EFFECTIVE DATE.This section is effective July 1, 2015.

84.18    Sec. 11. Minnesota Statutes 2014, section 240.08, subdivision 5, is amended to read:
84.19    Subd. 5. Revocation and suspension. (a) The commission may revoke a class C
84.20license for a violation of law or rule which in the commission's opinion adversely affects
84.21the integrity of horse racing in Minnesota, the public health, welfare, or safety, or for an
84.22intentional false statement made in a license application.
84.23The commission may suspend a class C license for up to one year for a violation of
84.24law, order or rule.
84.25The commission may delegate to its designated agents the authority to impose
84.26suspensions of class C licenses, and the revocation or suspension of a class C license may
84.27be appealed to the commission according to its rules.
84.28(b) A license revocation or suspension for more than 90 days is a contested case
84.29under sections 14.57 to 14.69 of the Administrative Procedure Act and is in addition to
84.30criminal penalties imposed for a violation of law or rule. The commission may summarily
84.31suspend a license for more than 90 days prior to a contested case hearing where it is
84.32necessary to ensure the integrity of racing or to protect the public health, welfare, or safety.
84.33A contested case hearing must be held within 20 30 days of the summary suspension and
84.34the administrative law judge's report must be issued within 20 30 days from the close of
85.1the hearing record. In all cases involving summary suspension the commission must issue
85.2its final decision within 30 days from receipt of the report of the administrative law judge
85.3and subsequent exceptions and argument under section 14.61.

85.4    Sec. 12. Minnesota Statutes 2014, section 240.10, is amended to read:
85.5240.10 LICENSE FEES.
85.6The fee for a class A license is $253,000 per year and must be remitted on July 1.
85.7The fee for a class B license is $500 for each assigned racing day and $100 for each day
85.8on which simulcasting is authorized and must be remitted on July 1. Included herein are
85.9all days assigned to be conducted after January 1, 2003. The fee for a class D license is
85.10$50 for each assigned racing day on which racing is actually conducted. Fees imposed on
85.11class D licenses must be paid to the commission at a time and in a manner as provided by
85.12rule of the commission.
85.13The commission shall by rule establish an annual license fee for each occupation it
85.14licenses under section 240.08 but no annual fee for a class C license may exceed $100.
85.15EFFECTIVE DATE.This section is effective July 1, 2015.

85.16    Sec. 13. Minnesota Statutes 2014, section 240.13, subdivision 5, is amended to read:
85.17    Subd. 5. Purses. (a) From the amounts deducted from all pari-mutuel pools by a
85.18licensee, an amount equal to not less than the following percentages of all money in all
85.19pools must be set aside by the licensee and used for purses for races conducted by the
85.20licensee, provided that a licensee may agree by contract with an organization representing
85.21a majority of the horsepersons racing the breed involved to set aside amounts in addition
85.22to the following percentages, if the contract is in writing and filed with the commission:
85.23(1) for live races conducted at a class A facility, and for races that are part of full
85.24racing card simulcasting that takes place within the time period of the live races, 8.4
85.25percent of handle;
85.26(2) for simulcasts conducted during the racing season other than as provided for in
85.27clause (1), 50 percent of the takeout remaining after deduction for taxes on pari-mutuel
85.28pools, payment to the breeders fund, and payment to the sending out-of-state racetrack for
85.29receipt of the signal; and
85.30(3) (2) for simulcasts conducted outside of the racing season, 25 any day a class A
85.31facility is licensed, not less than 37 percent of the takeout remaining after deduction for the
85.32state pari-mutuel tax, payment to the breeders fund, and payment to the sending out-of-state
85.33racetrack for receipt of the signal and, before January 1, 2005, a further deduction of
86.1eight percent of all money in all pools. In the event that wagering on simulcasts outside
86.2of the racing season exceeds $125 million in any calendar year, the amount set aside for
86.3purses by this formula is increased to 30 percent on amounts between $125,000,000 and
86.4$150,000,000 wagered; 40 percent on amounts between $150,000,000 and $175,000,000
86.5wagered; and 50 percent on amounts in excess of $175,000,000 wagered. In lieu of
86.6the eight percent deduction, A deduction as agreed to between the licensee and the
86.7horsepersons' organization representing the majority of horsepersons racing at the licensee's
86.8class A facility during the preceding 12 months, is allowed after December 31, 2004.
86.9The commission may by rule provide for the administration and enforcement of
86.10this subdivision. The deductions for payment to the sending out-of-state racetrack must
86.11be actual, except that when there exists any overlap of ownership, control, or interest
86.12between the sending out-of-state racetrack and the receiving licensee, the deduction
86.13must not be greater than three percent unless agreed to between the licensee and the
86.14horsepersons' organization representing the majority of horsepersons racing the breed
86.15racing the majority of races during the existing racing meeting or, if outside of the racing
86.16season, during the most recent racing meeting.
86.17In lieu of the amount the licensee must pay to the commission for deposit in the
86.18Minnesota breeders fund under section 240.15, subdivision 1, The licensee shall pay to the
86.19commission for deposit in the Minnesota breeders fund 5-1/2 percent of the takeout from
86.20all pari-mutuel pools generated by wagering at the licensee's facility on full racing card
86.21simulcasts of races not conducted in this state.
86.22(b) From the money set aside for purses, the licensee shall pay to the horseperson's
86.23organization representing the majority of the horsepersons racing the breed involved
86.24and contracting with the licensee with respect to purses and the conduct of the racing
86.25meetings and providing representation to its members, an amount as may be determined
86.26by agreement by the licensee and the horsepersons' organization sufficient to provide
86.27benevolent programs, benefits, and services for horsepersons and their on-track employees,
86.28an amount, sufficient to perform these services, as may be determined by agreement by
86.29the licensee and the horseperson's organization. The amount paid may be deducted only
86.30from the money set aside for purses to be paid in races for the breed represented by the
86.31horseperson's organization. With respect to racing meetings where more than one breed
86.32is racing, the licensee may contract independently with the horseperson's organization
86.33representing each breed racing.
86.34(c) Notwithstanding sections 325D.49 to 325D.66, a horseperson's organization
86.35representing the majority of the horsepersons racing a breed at a meeting, and the members
86.36thereof, may agree to withhold horses during a meeting.
87.1(d) Money set aside for purses from wagering, during the racing season, on
87.2simulcasts must be used for purses for live races conducted at the licensee's class A facility
87.3during the same racing season, over and above the 8.4 percent purse requirement or any
87.4higher requirement to which the parties agree, for races conducted in this state. Money
87.5set aside for purses from wagering, outside of the racing season, on simulcasts must be
87.6for purses for live races conducted at the licensee's class A facility during the next racing
87.7season, over and above the 8.4 percent purse requirement or any higher requirement to
87.8which the parties agree, for races conducted in this state.
87.9(e) (d) Money set aside for purses from wagering on simulcasts must be used for
87.10purses for live races involving the same breed involved in the simulcast except that money
87.11set aside for purses and payments to the breeders fund from wagering on full racing card
87.12simulcasts of races not conducted in this state, occurring during a live mixed meet, must
87.13be allotted to the purses and breeders fund for each breed participating in the mixed meet
87.14as agreed upon by the breed organizations participating in the live mixed meet. The
87.15agreement shall be in writing and filed with the commission prior to the first day of the live
87.16mixed meet. In the absence of a written agreement filed with the commission, the money
87.17set aside for purses and payments to the breeders fund from wagering on simulcasts,
87.18occurring during a live mixed meet, shall be allotted to each breed participating in the live
87.19mixed meet in the same proportion that the number of live races run by each breed bears
87.20to the total number of live races conducted during the period of the mixed meet.
87.21(f) (e) The allocation of money set aside for purses to particular racing meets may be
87.22adjusted, relative to overpayments and underpayments, by contract between the licensee
87.23and the horsepersons' organization representing the majority of horsepersons racing the
87.24breed involved at the licensee's facility.
87.25(g) (f) Subject to the provisions of this chapter, money set aside from pari-mutuel
87.26pools for purses must be for the breed involved in the race that generated the pool, except
87.27that if the breed involved in the race generating the pari-mutuel pool is not racing in the
87.28current racing meeting, or has not raced within the preceding 12 months at the licensee's
87.29class A facility, money set aside for purses may be distributed proportionately to those
87.30breeds that have run during the preceding 12 months or paid to the commission and
87.31used for purses or to promote racing for the breed involved in the race generating the
87.32pari-mutuel pool, or both, in a manner prescribed by the commission.
87.33(h) (g) This subdivision does not apply to a class D licensee.
87.34EFFECTIVE DATE.This section is effective January 1, 2016.

87.35    Sec. 14. Minnesota Statutes 2014, section 240.13, subdivision 6, is amended to read:
88.1    Subd. 6. Simulcasting. (a) The commission may permit an authorized licensee to
88.2conduct simulcasting at the licensee's facility on any day authorized by the commission.
88.3All simulcasts must comply with the Interstate Horse Racing Act of 1978, United States
88.4Code, title 15, sections 3001 to 3007.
88.5(b) The commission may not authorize any day for simulcasting at a class A facility
88.6during the racing season, and a licensee may not be allowed to transmit out-of-state
88.7telecasts of races the licensee conducts, unless the licensee has obtained the approval of
88.8the horsepersons' organization representing the majority of the horsepersons racing the
88.9breed involved at the licensed racetrack during the preceding 12 months. In the case of
88.10a class A facility licensed under section 240.06, subdivision 5a, the approval applicable
88.11to the first year of the racetrack's operation may be obtained from the horsepersons'
88.12organization that represents the majority of horsepersons who will race the breed involved
88.13at the licensed racetrack during the first year of the racetrack's operation.
88.14(c) The licensee may pay fees and costs to an entity transmitting a telecast of a
88.15race to the licensee for purposes of conducting pari-mutuel wagering on the race. The
88.16licensee may deduct fees and costs related to the receipt of televised transmissions from a
88.17pari-mutuel pool on the televised race, provided that one-half of any amount recouped in
88.18this manner must be added to the amounts required to be set aside for purses.
88.19(d) With the approval of the commission and subject to the provisions of this
88.20subdivision, a licensee may transmit telecasts of races it conducts, for wagering purposes,
88.21to locations outside the state, and the commission may allow this to be done on a
88.22commingled pool basis.
88.23(e) Except as otherwise provided in this section, simulcasting may be conducted on a
88.24separate commingled pool basis or, with the approval of the commission, on a commingled
88.25separate pool basis. All provisions of law governing pari-mutuel betting apply to
88.26simulcasting except as otherwise provided in this subdivision or in the commission's
88.27rules. If pools are commingled, wagering at the licensed facility must be on equipment
88.28electronically linked with the equipment at the licensee's class A facility or with the
88.29sending racetrack via the totalizator computer at the licensee's class A facility. Subject to
88.30the approval of the commission, the types of betting, takeout, and distribution of winnings
88.31on commingled pari-mutuel pools are those in effect at the sending racetrack. Breakage
88.32for pari-mutuel pools on a televised race must be calculated in accordance with the law or
88.33rules governing the sending racetrack for these pools, and must be distributed in a manner
88.34agreed to between the licensee and the sending racetrack. Notwithstanding subdivision 7
88.35and section 240.15, subdivision 5, the commission may approve procedures governing the
88.36definition and disposition of unclaimed tickets that are consistent with the law and rules
89.1governing unclaimed tickets at the sending racetrack. For the purposes of this section,
89.2"sending racetrack" is either the racetrack outside of this state where the horse race is
89.3conducted or, with the consent of the racetrack, an alternative facility that serves as the
89.4racetrack for the purpose of commingling pools.
89.5(f) Except as otherwise provided in section 240.06, subdivision 5b, paragraph (2),
89.6if there is more than one class B licensee conducting racing within the seven-county
89.7metropolitan area, simulcasting may be conducted only on races run by a breed that ran at
89.8the licensee's class A facility within the 12 months preceding the event.

89.9    Sec. 15. Minnesota Statutes 2014, section 240.135, is amended to read:
89.10240.135 CARD CLUB REVENUE.
89.11(a) From the amounts received from charges authorized under section 240.30,
89.12subdivision 4
, the licensee shall set aside the amounts specified in this section to be
89.13used for purse payments. These amounts are in addition to the breeders fund and purse
89.14requirements set forth elsewhere in this chapter.
89.15(1) For amounts between zero and $6,000,000, the licensee shall set aside not less
89.16than ten percent to be used as purses.
89.17(2) For amounts in excess of $6,000,000, the licensee shall set aside not less than
89.1814 percent to be used as purses.
89.19(b) From all amounts set aside under paragraph (a), the licensee shall set aside
89.20ten percent to be deposited in the breeders fund. The licensee and the horseperson's
89.21organization representing the majority of horsepersons who have raced at the racetrack
89.22during the preceding 12 months may negotiate percentages different from those stated in
89.23this section if the agreement is in writing and filed with the Racing Commission.
89.24(c) It is the intent of the legislature that the proceeds of the card playing activities
89.25authorized by this chapter be used to improve the horse racing industry by improving purses.
89.26The licensee and the horseperson's organization representing the majority of horsepersons
89.27who have raced at the racetrack during the preceding 12 months may negotiate percentages
89.28that exceed those stated in this section if the agreement is in writing and filed with the
89.29commission. The commission shall annually review the financial details of card playing
89.30activities and determine if the present use of card playing proceeds is consistent with the
89.31policy established by this paragraph. If the commission determines that the use of the
89.32proceeds does not comply with the policy set forth herein, then the commission shall direct
89.33the parties to make the changes necessary to ensure compliance. If these changes require
89.34legislation, the commission shall make the appropriate recommendations to the legislature.

90.1    Sec. 16. Minnesota Statutes 2014, section 240.15, subdivision 1, is amended to read:
90.2    Subdivision 1. Taxes imposed. (a) There is imposed a tax at the rate of six percent
90.3of the amount in excess of $12,000,000 annually withheld from all pari-mutuel pools by
90.4the licensee, including breakage and amounts withheld under section 240.13, subdivision
90.54
. For the purpose of this subdivision, "annually" is the period from July 1 to June 30 of
90.6the next year.
90.7In addition to the above tax, the licensee must designate and pay to the commission
90.8a tax of one percent of the total amount bet on each racing day handle for live races
90.9conducted at a class A facility, for deposit in the Minnesota breeders fund.
90.10The taxes imposed by this clause must be paid from the amounts permitted to be
90.11withheld by a licensee under section 240.13, subdivision 4.
90.12(b) The commission may impose an admissions tax of not more than ten cents on
90.13each paid admission at a licensed racetrack on a racing day if:
90.14(1) the tax is requested by a local unit of government within whose borders the
90.15track is located;
90.16(2) a public hearing is held on the request; and
90.17(3) the commission finds that the local unit of government requesting the tax is in
90.18need of its revenue to meet extraordinary expenses caused by the racetrack.

90.19    Sec. 17. Minnesota Statutes 2014, section 240.15, subdivision 6, is amended to read:
90.20    Subd. 6. Disposition of proceeds; account. The commission shall distribute all
90.21money received under this section, and all money received from license fees and fines it
90.22collects, according to this subdivision. All money designated for deposit in the Minnesota
90.23breeders fund must be paid into that fund for distribution under section 240.18 except that
90.24all money generated by full racing card simulcasts must be distributed as provided in
90.25section 240.18, subdivisions 2, paragraph (d), clauses (1), (2), and (3); and 3. Revenue
90.26from an admissions tax imposed under subdivision 1 must be paid to the local unit of
90.27government at whose request it was imposed, at times and in a manner the commission
90.28determines. Taxes received under this section and fines collected under section 240.22
90.29must be paid to the commissioner of management and budget for deposit in the general
90.30fund. All revenues from licenses and other fees imposed by the commission must be
90.31deposited in the state treasury and credited to a racing and card playing regulation account
90.32in the special revenue fund. Receipts in this account are available for the operations of the
90.33commission up to the amount authorized in biennial appropriations from the legislature.

90.34    Sec. 18. Minnesota Statutes 2014, section 240.16, subdivision 1, is amended to read:
91.1    Subdivision 1. Powers and duties. All horse races run at a licensed racetrack must
91.2be presided over by a board of three stewards, who must be appointees of the commission or
91.3persons approved by it. The commission shall designate one steward as chair. At least two
91.4stewards for all races either shall be employees of the commission who shall serve in the
91.5unclassified service, or shall be under contract with the commission to serve as stewards.
91.6The commission may delegate the following duties and powers to a board of stewards:
91.7(a) to ensure that races are run in accordance with the commission's rules;
91.8(b) to supervise the conduct of racing to ensure the integrity of the sport;
91.9(c) to settle disputes arising from the running of horse races, and to certify official
91.10results;
91.11(d) to impose on licensees, for violation of law or commission rules, fines not
91.12exceeding $2,000 $5,000 and license suspensions not exceeding 90 days;
91.13(e) to recommend to the commission where warranted penalties in excess of those
91.14in clause (d);
91.15(f) to otherwise enforce the laws and rules of racing; and
91.16(g) to perform other duties and have other powers assigned by the commission.

91.17    Sec. 19. Minnesota Statutes 2014, section 240.22, is amended to read:
91.18240.22 FINES.
91.19(a) The commission shall by rule establish a graduated schedule of civil fines for
91.20violations of laws related to horse racing or of the commission's rules. The schedule
91.21must include minimum and maximum fines for each violation and be based on and
91.22reflect the culpability, frequency and severity of the violator's actions. The commission
91.23may impose a fine from this schedule on a licensee for a violation of those rules or laws
91.24relating to horse racing. The fine is in addition to any criminal penalty imposed for the
91.25same violation. Fines imposed by the commission must be paid to the commission and
91.26except as provided in paragraph (b), forwarded to the commissioner of management and
91.27budget for deposit in the general fund. A fine in excess of $2,000 $5,000 is a contested
91.28case under the Administrative Procedure Act.
91.29(b) If the commission is the prevailing party in a contested case proceeding, the
91.30commission may recover, from amounts to be forwarded under paragraph (a), reasonable
91.31attorney fees and costs associated with the contested case.
91.32EFFECTIVE DATE.This section is effective July 1, 2016.

91.33    Sec. 20. Minnesota Statutes 2014, section 240.23, is amended to read:
92.1240.23 RULEMAKING AUTHORITY.
92.2The commission has the authority, in addition to all other rulemaking authority
92.3granted elsewhere in this chapter to promulgate rules governing:
92.4(a) the conduct of horse races held at licensed racetracks in Minnesota, including but
92.5not limited to the rules of racing, standards of entry, operation of claiming races, filing and
92.6handling of objections, carrying of weights, and declaration of official results;
92.7(b) wire wired and wireless communications between the premises of a licensed
92.8racetrack and any place outside the premises;
92.9(c) information on horse races which is sold on the premises of a licensed racetrack;
92.10(d) liability insurance which it may require of all class A, class B, and class D
92.11licensees;
92.12(e) the auditing of the books and records of a licensee by an auditor employed
92.13or appointed by the commission;
92.14(f) emergency action plans maintained by licensed racetracks and their periodic
92.15review;
92.16(g) safety, security, and sanitation of stabling facilities at licensed racetracks;
92.17(h) entry fees and other funds received by a licensee in the course of conducting
92.18racing which the commission determines must be placed in escrow accounts;
92.19(i) affirmative action in employment and contracting by class A, class B, and class D
92.20licensees; and
92.21(j) procedures for the sampling and testing of any horse that is eligible to race in
92.22Minnesota for substances or practices that are prohibited by law or rule; and
92.23(j) (k) any other aspect of horse racing or pari-mutuel betting which in its opinion
92.24affects the integrity of racing or the public health, welfare, or safety.
92.25Rules of the commission are subject to chapter 14, the Administrative Procedure Act.
92.26EFFECTIVE DATE.This section is effective the day following final enactment.

92.27    Sec. 21. Minnesota Statutes 2014, section 364.09, is amended to read:
92.28364.09 EXCEPTIONS.
92.29(a) This chapter does not apply to the licensing process for peace officers; to law
92.30enforcement agencies as defined in section 626.84, subdivision 1, paragraph (f); to fire
92.31protection agencies; to eligibility for a private detective or protective agent license; to the
92.32licensing and background study process under chapters 245A and 245C; to the licensing
92.33and background investigation process under chapter 240; to eligibility for school bus
92.34driver endorsements; to eligibility for special transportation service endorsements; to
93.1eligibility for a commercial driver training instructor license, which is governed by section
93.2171.35 and rules adopted under that section; to emergency medical services personnel, or
93.3to the licensing by political subdivisions of taxicab drivers, if the applicant for the license
93.4has been discharged from sentence for a conviction within the ten years immediately
93.5preceding application of a violation of any of the following:
93.6(1) sections 609.185 to 609.2114, 609.221 to 609.223, 609.342 to 609.3451, or
93.7617.23 , subdivision 2 or 3; or Minnesota Statutes 2012, section 609.21;
93.8(2) any provision of chapter 152 that is punishable by a maximum sentence of
93.915 years or more; or
93.10(3) a violation of chapter 169 or 169A involving driving under the influence, leaving
93.11the scene of an accident, or reckless or careless driving.
93.12This chapter also shall not apply to eligibility for juvenile corrections employment, where
93.13the offense involved child physical or sexual abuse or criminal sexual conduct.
93.14(b) This chapter does not apply to a school district or to eligibility for a license
93.15issued or renewed by the Board of Teaching or the commissioner of education.
93.16(c) Nothing in this section precludes the Minnesota Police and Peace Officers
93.17Training Board or the state fire marshal from recommending policies set forth in this
93.18chapter to the attorney general for adoption in the attorney general's discretion to apply to
93.19law enforcement or fire protection agencies.
93.20(d) This chapter does not apply to a license to practice medicine that has been denied
93.21or revoked by the Board of Medical Practice pursuant to section 147.091, subdivision 1a.
93.22(e) This chapter does not apply to any person who has been denied a license to
93.23practice chiropractic or whose license to practice chiropractic has been revoked by the
93.24board in accordance with section 148.10, subdivision 7.
93.25(f) This chapter does not apply to any license, registration, or permit that has
93.26been denied or revoked by the Board of Nursing in accordance with section 148.261,
93.27subdivision 1a.
93.28(g) This chapter does not supersede a requirement under law to conduct a criminal
93.29history background investigation or consider criminal history records in hiring for
93.30particular types of employment.

93.31    Sec. 22. REVISOR'S INSTRUCTION.
93.32(a) The revisor of statutes shall renumber the subdivisions in Minnesota Statutes,
93.33section 240.01, to put the definitions contained in that section in alphabetical order.
93.34(b) The revisor of statutes shall correct any cross-references in Minnesota Statutes
93.35and Minnesota Rules as a result of the renumbering in paragraph (a).

94.1    Sec. 23. REPEALER.
94.2Minnesota Statutes 2014, section 240.01, subdivisions 12 and 23, are repealed."
94.3Delete the title and insert:
94.4"A bill for an act
94.5relating to the operation of state government; appropriating money for the
94.6legislature, governor's office, state auditor, attorney general, secretary of state,
94.7certain agencies, boards, councils, retirement funds, military affairs, and veterans
94.8affairs; cancellation of certain appropriations; requiring general incentive
94.9proposals for review by the legislative auditor; allowing counties to elect to have
94.10an audit conducted by a CPA firm; changing the signature requirement for phone
94.11records of certain public officials; creating three ethnic councils; allowing prepay
94.12for certain software and information technology hosting services; changing
94.13provisions on report on budget reserve percentage; providing reimbursement for
94.14reasonable accommodation; modifying grant agreement provisions; making
94.15changes to guaranteed energy-savings program, small business requirements,
94.16and veteran-owned small businesses; establishing healthy eating, here at home
94.17program; establishing expedited and temporary licensing for former and current
94.18members of the military for certain occupations; changing certain provisions
94.19governing cosmetology; assessing certain costs for Office of Administrative
94.20Hearings; requirements for reinstatement of a foreign corporation; making
94.21changes to provisions governing public benefit corporations; modifying
94.22provisions for accountants; changing certain requirements for corporations;
94.23modifying gambling provisions; limiting railroad condemnation powers in
94.24certain interests; modifying debt service provision for legislative parking garage;
94.25requiring some room numbers on signage in the Capitol to identify legacy
94.26rooms; providing in-lieu of rent evaluation; allowing board of cosmetology to
94.27adopt rules; specifying political contribution credit; specifying state agency
94.28technology projects; requiring the legislative auditor to evaluate the efficacy
94.29of the state auditor's examinations; requiring a report on reduction of chief
94.30information officers in state agencies; making changes to provisions governing
94.31military and veterans affairs; changing provisions governing pari-mutuel horse
94.32racing; setting certain fees; requiring reports;amending Minnesota Statutes 2014,
94.33sections 3.8843, subdivision 5; 10.43; 16A.065; 16A.152, subdivision 8; 16B.97,
94.34subdivision 1; 16B.98, subdivisions 1, 11; 16C.144; 16C.16, subdivisions
94.352, 6a, by adding a subdivision; 16C.19; 148.57, by adding a subdivision;
94.36148.624, subdivision 5; 148B.33, by adding a subdivision; 148B.53, by adding
94.37a subdivision; 148B.5301, by adding a subdivision; 148F.025, by adding a
94.38subdivision; 153.16, subdivisions 1, 4; 154.003; 154.11, subdivision 3; 155A.21;
94.39155A.23, subdivision 8, by adding subdivisions; 155A.24, subdivision 2;
94.40155A.25, subdivisions 1a, 5, by adding subdivisions; 155A.27, subdivisions 1, 2,
94.415a; 155A.271; 155A.29, subdivisions 1, 2, by adding a subdivision; 155A.30,
94.42subdivisions 5, 10; 161.1419, subdivision 8; 190.19, subdivisions 2a, 3; 192.38,
94.43subdivision 1; 192.501, by adding a subdivision; 197.133; 197.46; 198.01;
94.44211B.37; 240.01, subdivision 22, by adding subdivisions; 240.011; 240.03;
94.45240.08, subdivisions 2, 4, 5; 240.10; 240.13, subdivisions 5, 6; 240.135; 240.15,
94.46subdivisions 1, 6; 240.16, subdivision 1; 240.22; 240.23; 272.484; 303.19;
94.47304A.301, subdivisions 1, 5, 6, by adding a subdivision; 326A.01, subdivisions
94.482, 12, 13a, 15, 16; 326A.02, subdivisions 3, 5; 326A.05, subdivisions 1, 3;
94.49326A.08, subdivision 7; 326A.10; 336A.09, subdivision 1; 349.16, subdivision
94.506a; 349.161, subdivision 4; 349.163, subdivisions 2, 6; 349.166, subdivision 2;
94.51364.09; Laws 2013, chapter 142, article 1, section 10; Laws 2014, chapter 287,
94.52section 25; proposing coding for new law in Minnesota Statutes, chapters 3; 6;
94.5315; 16B; 138; 197; 383B; repealing Minnesota Statutes 2014, sections 3.9223;
94.543.9225; 3.9226, subdivisions 1, 2, 3, 4, 5, 6, 7; 6.48; 155A.23, subdivision 6;
94.55197.131; 197.132; 240.01, subdivisions 12, 23; 375.23."
95.1
We request the adoption of this report and repassage of the bill.
95.2
Senate Conferees:
95.3
.....
.....
95.4
Tom Saxhaug
Sandra L. Pappas
95.5
.....
.....
95.6
Jim Carlson
Melissa H. Wiklund
95.7
.....
95.8
James P. Metzen
95.9
House Conferees:
95.10
.....
.....
95.11
Sarah Anderson
Tony Albright
95.12
.....
.....
95.13
Tim O'Driscoll
Bob Loonan
95.14
.....
95.15
Carolyn Laine