Engrossments
Introduction		Posted on 02/02/2015
1st Engrossment		Posted on 04/20/2015

Section 1.

new text begin [2.92] DISTRICTING PRINCIPLES.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability; constitutional duty of legislature. new text end

new text begin (a) The principles
in this section apply to legislative and congressional districts.
new text end

new text begin (b) Notwithstanding any laws to the contrary, legislative and congressional districts
must be drawn by the legislature, consistent with the requirements of the Minnesota
Constitution, article IV, section 3. The legislature may not delegate its duty to draw
districts to any commission, council, panel, or other entity that is not comprised solely of
members of the legislature.
new text end

new text begin Subd. 2. new text end

new text begin Nesting. new text end

new text begin A representative district may not be divided in the formation
of a senate district.
new text end

new text begin Subd. 3. new text end

new text begin Equal population. new text end

new text begin (a) Legislative districts must be substantially equal
in population. The population of a legislative district must not deviate from the ideal
by more than 0.5 percent, plus or minus.
new text end

new text begin (b) Congressional districts must be as nearly equal in population as practicable.
new text end

new text begin Subd. 4. new text end

new text begin Contiguity; compactness. new text end

new text begin The districts must be composed of convenient
contiguous territory. To the extent consistent with the other principles in this section,
districts should be compact. Contiguity by water is sufficient if the water is not a serious
obstacle to travel within the district. Point contiguity is not sufficient.
new text end

new text begin Subd. 5. new text end

new text begin Numbering. new text end

new text begin (a) Legislative districts must be numbered in a regular series,
beginning with house district 1A in the northwest corner of the state and proceeding across
the state from west to east, north to south, but bypassing the 11-county metropolitan
area until the southeast corner has been reached; then to the 11-county metropolitan area
outside the cities of Minneapolis and St. Paul; then in Minneapolis and St. Paul.
new text end

new text begin (b) Congressional district numbers must begin with district one in the southeast
corner of the state and end with district eight in the northeast corner of the state.
new text end

new text begin Subd. 6. new text end

new text begin Minority representation. new text end

new text begin (a) The dilution of racial or ethnic minority
voting strength is contrary to the laws of the United States and the state of Minnesota.
These principles must not be construed to supersede any provision of the Voting Rights
Act of 1965, as amended.
new text end

new text begin (b) A redistricting plan must not have the intent or effect of dispersing or
concentrating minority population in a manner that prevents minority communities from
electing their candidates of choice.
new text end

new text begin Subd. 7. new text end

new text begin Minor civil divisions. new text end

new text begin (a) A county, city, or town must not be unduly
divided unless required to meet equal population requirements or to form districts
composed of convenient, contiguous territory.
new text end

new text begin (b) A county, city, or town is not unduly divided in the formation of a legislative or
congressional district if:
new text end

new text begin (1) the division occurs because a portion of a city or town is noncontiguous with
another portion of the same city or town; or
new text end

new text begin (2) despite the division, the known population of any affected county, city, or town
remains wholly located within a single district.
new text end

new text begin Subd. 8. new text end

new text begin Preserving communities of interest. new text end

new text begin (a) Districts should attempt to
preserve identifiable communities of interest where that can be done in compliance with
the principles under this section.
new text end

new text begin (b) For purposes of this subdivision, "communities of interest" means recognizable
areas with similarities of interests including, but not limited to, racial, ethnic, geographic,
social, or cultural interests.
new text end

new text begin Subd. 9. new text end

new text begin Data to be used. new text end

new text begin (a) The geographic areas and population counts used in
maps, tables, and legal descriptions of the districts must be those used by the Geographic
Information Systems Office of the Legislative Coordinating Commission. The population
counts will be the block population counts provided to the state under Public Law 94-171
after each decennial census, subject to correction of any errors acknowledged by the
United States Census Bureau.
new text end

new text begin (b) Nothing in this subdivision prohibits the use of additional data, as determined
by the legislature.
new text end

new text begin Subd. 10. new text end

new text begin Consideration of plans. new text end

new text begin A redistricting plan must not be considered for
adoption by the senate or house of representatives until a block equivalency file showing
the district to which each census block has been assigned, in a form prescribed by the
director of the Geographic Information Systems Office, has been filed with the director.
new text end

new text begin Subd. 11. new text end

new text begin Priority of principles. new text end

new text begin Where it is not possible to fully comply with the
principles contained in subdivisions 1 to 8, a redistricting plan must give priority to those
principles in the order in which they are listed in this section, except to the extent that
doing so would violate federal or state law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to any plan for districts enacted or established for use on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2014, section 3.971, is amended by adding a subdivision to
read:

new text begin Subd. 8a. new text end

new text begin Fiscal notes and revenue estimates. new text end

new text begin The legislative auditor shall
participate in the fiscal note and revenue estimate process in the manner described in
section 3.98. Authority of the legislative auditor and duties of employees and entities
under section 3.978, subdivision 2, apply to the legislative auditor's work on fiscal notes
and revenue estimates.
new text end

Sec. 3.

new text begin [3.9735] EVALUATION OF ECONOMIC DEVELOPMENT INCENTIVE
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the terms defined in this
section have the meanings given them.
new text end

new text begin (a) "General incentive" means a state program, statutory provision, or tax
expenditure, including tax credits, tax exemptions, tax deductions, grants, or loans, that
is intended to encourage businesses to locate, expand, invest, or remain in Minnesota or
to hire or retain employees in Minnesota. To be a general incentive, a state program,
statutory provision, or tax expenditure must be available to multiple entities, projects, or
associated projects or include eligibility criteria with the intent that it will be available to
multiple entities, projects, or associated projects.
new text end

new text begin (b) "Exclusive incentive" means a state program, statutory provision, tax
expenditure, or section of a general incentive, including tax credits, tax exemptions, tax
deductions, grants, or loans, that is intended to encourage a single specific entity, project,
or associated projects to locate, expand, invest, or remain in Minnesota or to hire or retain
employees in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Selection of general incentives for review; schedule for evaluation;
report. new text end

new text begin Annually, the legislative auditor shall submit to the Legislative Audit Commission
a list of three to five general incentives proposed for review. In selecting general
incentives to include on this list, the legislative auditor may consider what the incentive
will cost state and local governments in actual spending and foregone revenue currently or
projected into the future, the legislature's need for information about a general incentive
that has an upcoming expiration date, and the legislature's need for regular information on
the results of all major general incentives. Annually, the Legislative Audit Commission
will select at least one general incentive for the legislative auditor's evaluation. The
legislative auditor will evaluate the selected general incentive or incentives, prepared
according to the evaluation plan established under subdivision 4, and submit a written
report to the Legislative Audit Commission.
new text end

new text begin Subd. 3. new text end

new text begin Exclusive incentive schedule. new text end

new text begin The legislative auditor's schedule shall
ensure that at least once every four years the legislative auditor will complete an analysis
of best practices for exclusive incentives.
new text end

new text begin Subd. 4. new text end

new text begin Evaluation plans. new text end

new text begin By February 1, 2016, the Legislative Audit Commission
shall establish evaluation plans that identify elements that the legislative auditor must
include in evaluations of a general incentive and an exclusive incentive. The Legislative
Audit Commission may modify the evaluation plans as needed.
new text end

Sec. 4.

Minnesota Statutes 2014, section 3.979, subdivision 3, is amended to read:

Subd. 3.

Audit data.

(a) "Audit" as used in this subdivision means a financial audit,
review, program evaluation, best practices review, new text begin evaluation of an incentive program or
exclusive incentive program under section 3.9735, new text end or investigation. Data relating to an
audit are not public or with respect to data on individuals are confidential until the final
report of the audit has been released by the legislative auditor or the audit is no longer
being actively pursued. Upon release of a final audit report by the legislative auditor, data
relating to an audit are public except data otherwise classified as not public.

(b) Data related to an audit but not published in the audit report and that the
legislative auditor reasonably believes will be used in litigation are not public and with
respect to data on individuals are confidential until the litigation has been completed or is
no longer being actively pursued.

(c) Data on individuals that could reasonably be used to determine the identity of an
individual supplying data for an audit are private if the data supplied by the individual were
needed for an audit and the individual would not have provided the data to the legislative
auditor without an assurance that the individual's identity would remain private, or the
legislative auditor reasonably believes that the subject would not have provided the data.

(d) The definitions of terms provided in section 13.02 apply for purposes of this
subdivision.

Sec. 5.

Minnesota Statutes 2014, section 3.98, is amended to read:

3.98 FISCAL NOTESnew text begin AND REVENUE ESTIMATESnew text end .

Subdivision 1.

Preparation.

deleted text begin The head or chief administrative officer of each
department or agency of the state government, including the Supreme Court, shall prepare
a fiscal note at the request of the chair of the standing committee to which a bill has been
referred, or the chair of the house of representatives Ways and Means Committee, or the
chair of the senate Committee on Finance.
deleted text end

deleted text begin For purposes of this subdivision, "Supreme Court" includes all agencies, committees,
and commissions supervised or appointed by the state Supreme Court or the state court
administrator. deleted text end new text begin (a) The chair of the standing committee to which a bill has been referred,
the chair of the house of representatives Ways and Means Committee, and the chair of
the senate Committee on Finance may request a fiscal note. The chair of the house of
representatives or senate tax committee may request a revenue estimate. A request for a
fiscal note or revenue estimate must be filed with the legislative auditor.
new text end

new text begin (b) Upon receiving a request for a fiscal note or revenue estimate, the legislative
auditor shall request appropriate agencies, offices, boards, or commissions in the executive,
judicial, or legislative branch to provide the legislative auditor with an analysis of the
financial and personnel impacts of the bill. The analysis must include a clear statement
of the assumptions used in the analysis and the extent to which alternative assumptions
were considered. Agencies, offices, boards, or commissions shall, after receiving a request
from the legislative auditor, submit the analysis in the time and manner requested by the
auditor. The legislative auditor may require agencies, offices, boards, or commissions to
use the fiscal note tracking system developed and maintained by the commissioner of
management and budget for submitting fiscal note information and analysis.
new text end

new text begin (c) The legislative auditor shall review the analysis submitted by agencies, offices,
boards, or commissions and assess the reasonableness of the analysis, particularly the
reasonableness of the assumptions used in the analysis. The auditor may require agencies,
offices, boards, or commissions to resubmit their analysis under new assumptions or
calculation parameters as defined by the auditor.
new text end

new text begin (d) When the legislative auditor accepts the final analysis from all relevant agencies,
offices, boards, or commissions, the legislative auditor shall deliver the completed
fiscal note or revenue estimate. The note or estimate must contain the final analysis
and assumptions submitted to the legislative auditor by agencies, offices, boards, or
commissions, and a statement by the legislative auditor as to whether the legislative
auditor agrees with the final analysis and assumptions. The auditor must state the
reasons for any disagreements and may offer alternative analysis and assumptions for
consideration by the legislature. If the legislative auditor deems these disagreements
sufficiently large, the legislative auditor may submit an unofficial "unapproved" fiscal note
to the legislature for public consideration of both the analysis of the agencies, offices,
boards, or commissions, and of the legislative auditor.
new text end

Subd. 2.

Contents.

(a) deleted text begin Thedeleted text end new text begin Anew text end fiscal note, where possible, shall:

(1) cite the effect in dollar amounts;

(2) cite the statutory provisions affected;

(3) estimate the increase or decrease in revenues or expenditures;

(4) include the costs which may be absorbed without additional funds;

(5) include the assumptions used in determining the cost estimates; and

(6) specify any long-range implication.

(b) deleted text begin Thedeleted text end new text begin A revenue estimate must estimate the effect of a bill on state tax revenues.
new text end

new text begin (c) Anew text end fiscal notenew text begin or revenue estimatenew text end may comment on technical or mechanical
defects in the bill but shall express no opinions concerning the merits of the proposal.

Subd. 3.

Distribution.

A copy of deleted text begin thedeleted text end new text begin anew text end fiscal note shall be delivered to the chair
of the Ways and Means Committee of the house of representatives, the chair of the
Finance Committee of the senate, the chair of the standing committee to which the bill
has been referred, to the chief author of the bill and to the commissioner of management
and budget.new text begin A copy of a revenue estimate shall be delivered to the chairs of the house
of representatives and senate tax committees, to the chief author of the bill, and to the
commissioner of revenue.
new text end

Subd. 4.

Uniform procedure.

The deleted text begin commissioner of management and budget
deleted text end new text begin legislative auditornew text end shall prescribe a uniform procedure to govern the departments and
agencies of the state in complying with the requirements of this section.

new text begin Subd. 5. new text end

new text begin Tracking system. new text end

new text begin The commissioner of management and budget shall
provide the legislative auditor with manuals and other documentation requested by the
auditor for the fiscal note tracking system that is maintained by the commissioner.
new text end

Sec. 6.

Minnesota Statutes 2014, section 3.987, subdivision 1, is amended to read:

Subdivision 1.

Local impact notes.

The deleted text begin commissioner of management and budget
deleted text end new text begin legislative auditornew text end shall coordinate the development of a local impact note for any proposed
legislation deleted text begin introduced after June 30, 1997,deleted text end upon request of the chair or the ranking minority
member of either legislative Tax, Finance, or Ways and Means Committee. Upon receipt
of a request to prepare a local impact note, the deleted text begin commissionerdeleted text end new text begin auditornew text end must notify the
authors of the proposed legislation that the request has been made. The local impact note
must be made available to the public upon request. If the action is among the exceptions
listed in section 3.988, a local impact note need not be requested nor prepared. The
deleted text begin commissionerdeleted text end new text begin auditornew text end shall make a reasonable and timely estimate of the local fiscal impact
on each type of political subdivision that would result from the proposed legislation. The
deleted text begin commissioner of management and budgetdeleted text end new text begin auditornew text end may require any political subdivision or
the commissioner of an administrative agency of the state to supply in a timely manner
any information determined to be necessary to determine local fiscal impact. The political
subdivision, its representative association, or commissioner shall convey the requested
information to the deleted text begin commissioner of management and budgetdeleted text end new text begin auditornew text end with a signed
statement to the effect that the information is accurate and complete to the best of its ability.
The political subdivision, its representative association, or commissioner, when requested,
shall update its determination of local fiscal impact based on actual cost or revenue figures,
improved estimates, or both. Upon completion of the note, the deleted text begin commissionerdeleted text end new text begin auditornew text end must
provide a copy to the authors of the proposed legislation and to the chair and ranking
minority member of each committee to which the proposed legislation is referred.

Sec. 7.

new text begin [6.481] COUNTY AUDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Powers and duties. new text end

new text begin All the powers and duties conferred and imposed
upon the state auditor shall be exercised and performed by the state auditor in respect to
the offices, institutions, public property, and improvements of several counties of the
state. The state auditor may visit, without previous notice, each county and examine all
accounts and records relating to the receipt and disbursement of the public funds and the
custody of the public funds and other property. The state auditor shall prescribe and install
systems of accounts and financial reports that shall be uniform, so far as practicable, for
the same class of offices.
new text end

new text begin Subd. 2. new text end

new text begin Annual audit required. new text end

new text begin A county must have an annual financial audit.
A county may choose to have the audit performed by the state auditor, or may choose to
have the audit performed by a CPA firm meeting the requirements of section 326A.05.
The state auditor or a CPA firm may accept the records and audit of the Department of
Human Services instead of examining county human service funds, if the audit of the
Department of Human Services has been made within any period covered by the auditor's
audit of other county records.
new text end

new text begin Subd. 3. new text end

new text begin CPA firm audit. new text end

new text begin A county audit performed by a CPA firm must meet
the standards and be in the form required by the state auditor. The state auditor may
require additional information from the CPA firm if the state auditor determines that is
in the public interest, but the state auditor must accept the audit unless the state auditor
determines it does not meet recognized industry auditing standards or is not in the form
required by the state auditor. The state auditor may make additional examinations as the
auditor determines to be in the public interest.
new text end

new text begin Subd. 4. new text end

new text begin Audit availability; data. new text end

new text begin A copy of the annual audit by the state auditor or
by a CPA firm must be available for public inspection in the Office of the State Auditor and
in the Office of the County Auditor. If an audit is performed by a CPA firm, data relating
to the audit are subject to the same data classifications that apply under section 6.715. A
CPA firm conducting a county audit must provide access to data relating to the audit and is
liable for unlawful disclosure of the data as if it were a government entity under chapter 13.
new text end

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin If an audit conducted by the state auditor or a CPA firm
discloses malfeasance, misfeasance, or nonfeasance, the auditor must report this to the
county attorney, who shall institute civil and criminal proceedings as the law and the
protection of the public interests requires.
new text end

new text begin Subd. 6. new text end

new text begin Payments to state auditor. new text end

new text begin A county audited by the state auditor must
pay the state auditor for the costs and expenses of the audit. If the state auditor makes
additional examinations of a county whose audit is performed by a CPA firm, the county
must pay the auditor for the cost of these examinations. Payments must be deposited in
the state auditor enterprise fund.
new text end

new text begin Subd. 7. new text end

new text begin Procedures for change of auditor. new text end

new text begin A county that plans to change to or
from the state auditor and a CPA firm must notify the state auditor of this change by
August 1 of an even-numbered year. Upon this notice, the following calendar year will be
the first year's records that will be subject to an audit by the new entity. A county that
changes to or from the state auditor must have two annual audits done by the new entity.
new text end

Sec. 8.

Minnesota Statutes 2014, section 10A.01, subdivision 26, is amended to read:

Subd. 26.

Noncampaign disbursement.

"Noncampaign disbursement" means
a purchase or payment of money or anything of value made, or an advance of credit
incurred, or a donation in kind received, by a principal campaign committee for any of
the following purposes:

(1) payment for accounting and legal services;

(2) return of a contribution to the source;

(3) repayment of a loan made to the principal campaign committee by that committee;

(4) deleted text begin return of a public subsidy;
deleted text end

deleted text begin (5)deleted text end payment for food, beverages, and necessary utensils and supplies, entertainment,
and facility rental for a fund-raising event;

deleted text begin (6)deleted text end new text begin (5)new text end services for a constituent by a member of the legislature or a constitutional
officer in the executive branch, including the costs of preparing and distributing a
suggestion or idea solicitation to constituents, performed from the beginning of the term
of office to adjournment sine die of the legislature in the election year for the office
held, and half the cost of services for a constituent by a member of the legislature or a
constitutional officer in the executive branch performed from adjournment sine die to 60
days after adjournment sine die;

deleted text begin (7)deleted text end new text begin (6)new text end payment for food and beverages consumed by a candidate or volunteers while
they are engaged in campaign activities;

deleted text begin (8)deleted text end new text begin (7)new text end payment for food or a beverage consumed while attending a reception or
meeting directly related to legislative duties;

deleted text begin (9)deleted text end new text begin (8)new text end payment of expenses incurred by elected or appointed leaders of a legislative
caucus in carrying out their leadership responsibilities;

deleted text begin (10)deleted text end new text begin (9)new text end payment by a principal campaign committee of the candidate's expenses
for serving in public office, other than for personal uses;

deleted text begin (11)deleted text end new text begin (10)new text end costs of child care for the candidate's children when campaigning;

deleted text begin (12)deleted text end new text begin (11)new text end fees paid to attend a campaign school;

deleted text begin (13)deleted text end new text begin (12)new text end costs of a postelection party during the election year when a candidate's
name will no longer appear on a ballot or the general election is concluded, whichever
occurs first;

deleted text begin (14)deleted text end new text begin (13)new text end interest on loans paid by a principal campaign committee on outstanding
loans;

deleted text begin (15)deleted text end new text begin (14)new text end filing fees;

deleted text begin (16)deleted text end new text begin (15)new text end post-general election holiday or seasonal cards, thank-you notes, or
advertisements in the news media mailed or published prior to the end of the election cycle;

deleted text begin (17)deleted text end new text begin (16)new text end the cost of campaign material purchased to replace defective campaign
material, if the defective material is destroyed without being used;

deleted text begin (18)deleted text end new text begin (17)new text end contributions to a party unit;

deleted text begin (19)deleted text end new text begin (18)new text end payments for funeral gifts or memorials;

deleted text begin (20)deleted text end new text begin (19)new text end the cost of a magnet less than six inches in diameter containing legislator
contact information and distributed to constituents;

deleted text begin (21)deleted text end new text begin (20)new text end costs associated with a candidate attending a political party state or national
convention in this state;

deleted text begin (22)deleted text end new text begin (21)new text end other purchases or payments specified in board rules or advisory opinions
as being for any purpose other than to influence the nomination or election of a candidate
or to promote or defeat a ballot question; and

deleted text begin (23)deleted text end new text begin (22)new text end costs paid to a third party for processing contributions made by a credit
card, debit card, or electronic check.

The board must determine whether an activity involves a noncampaign disbursement
within the meaning of this subdivision.

A noncampaign disbursement is considered to be made in the year in which the
candidate made the purchase of goods or services or incurred an obligation to pay for
goods or services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015, and applies to elections
held on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2014, section 10A.105, subdivision 1, is amended to read:

Subdivision 1.

Single committee.

A candidate must not accept contributions
from a source, other than self, in aggregate in excess of $750 deleted text begin or accept a public subsidy
deleted text end unless the candidate designates and causes to be formed a single principal campaign
committee for each office sought. A candidate may not authorize, designate, or cause to be
formed any other political committee bearing the candidate's name or title or otherwise
operating under the direct or indirect control of the candidate. However, a candidate may
be involved in the direct or indirect control of a party unit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015, and applies to elections
held on or after that date.
new text end

Sec. 10.

Minnesota Statutes 2014, section 10A.15, subdivision 1, is amended to read:

Subdivision 1.

Anonymous contributions.

A political committee, political fund,
principal campaign committee, or party unit may not retain an anonymous contribution
in excess of $20, but must forward it to the board for deposit in the general deleted text begin account of
the state elections campaign accountdeleted text end new text begin fundnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 11.

Minnesota Statutes 2014, section 10A.245, subdivision 2, is amended to read:

Subd. 2.

Termination by board.

The board may terminate the registration of
a principal campaign committee, party unit, political committee, or political fund found
to be inactive under this section 60 days after sending written notice of inactivity by
certified mail to the affected association at the last address on record with the board for
that association. Within 60 days after the board sends notice under this section, the
affected association must dispose of its assets as provided in this subdivision. The assets
of the principal campaign committee, party unit, or political committee must be used for
the purposes authorized by this chapter or section 211B.12 or must be liquidated and
deposited in the general deleted text begin account of the state elections campaign accountdeleted text end new text begin fundnew text end . The assets
of an association's political fund that were derived from the association's general treasury
money revert to the association's general treasury. Assets of a political fund that resulted
from contributions to the political fund must be used for the purposes authorized by this
chapter or section 211B.12 or must be liquidated and deposited in the general deleted text begin account of
the state elections campaign accountdeleted text end new text begin fundnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 12.

Minnesota Statutes 2014, section 10A.257, subdivision 1, is amended to read:

Subdivision 1.

Unused funds.

new text begin For election cycles ending on or before December
31, 2016, new text end after all campaign expenditures and noncampaign disbursements for an election
cycle have been made, an amount up to 25 percent of thenew text begin 2014new text end election cycle expenditure
limit for the office may be carried forward. Any remaining amount up to the total amount of
the new text begin 2014 new text end public subsidy from the state elections campaign fund must be returned to the state
treasury for credit to the general fund under section 10A.324. Any remaining amount in
excess of the new text begin 2014 new text end total public subsidy must be contributed to the state elections campaign
account or a political party for multicandidate expenditures as defined in section 10A.275.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015, and applies to elections
held on or after that date.
new text end

Sec. 13.

Minnesota Statutes 2014, section 10A.38, is amended to read:

10A.38 CAPTIONING OF CAMPAIGN ADVERTISEMENTS.

(a) deleted text begin This section applies to a campaign advertisement by a candidate who is governed
by an agreement under section 10A.322.
deleted text end

deleted text begin (b)deleted text end "Campaign advertisement" means a professionally produced visual or audio
recording of two minutes or less produced by the candidate for the purpose of influencing
the nomination or election of a candidate.

deleted text begin (c)deleted text end new text begin (b)new text end A campaign advertisement that is disseminated as an advertisement by
broadcast or cable television must include closed captioning for deaf and hard-of-hearing
viewers, unless the candidate has filed with the board before the advertisement is
disseminated a statement setting forth the reasons for not doing so. A campaign
advertisement that is disseminated as an advertisement to the public on the candidate's
Web site must include closed captioning for deaf and hard-of-hearing viewers, unless the
candidate has posted on the Web site a transcript of the spoken content of the advertisement
or the candidate has filed with the board before the advertisement is disseminated a
statement setting forth the reasons for not doing so. A campaign advertisement must
not be disseminated as an advertisement by radio unless the candidate has posted on
the candidate's Web site a transcript of the spoken content of the advertisement or the
candidate has filed with the board before the advertisement is disseminated a statement
setting forth the reasons for not doing so.

Sec. 14.

Minnesota Statutes 2014, section 14.02, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Substantial economic impact. new text end

new text begin A rule has a "substantial economic impact"
if the rule would result in, or likely result in:
new text end

new text begin (1) an adverse effect or impact on the private-sector economy of the state of
Minnesota of $5,000,000 or more in a single year;
new text end

new text begin (2) a significant increase in costs or prices for consumers, individual private-sector
industries, state agencies, local governments, individuals, or private-sector enterprises
within certain geographic regions inside the state of Minnesota;
new text end

new text begin (3) significant adverse impacts on the competitiveness of private-sector
Minnesota-based enterprises or on private-sector employment, investment, productivity,
or innovation within the state of Minnesota; or
new text end

new text begin (4) compliance costs, in the first year after the rule takes effect, of more than $25,000
for any one business that has less than 50 full-time employees, or for any one statutory or
home rule charter city that has less than ten full-time employees.
new text end

Sec. 15.

Minnesota Statutes 2014, section 14.05, subdivision 1, is amended to read:

Subdivision 1.

Authority to adopt original rules restricted.

new text begin (a) new text end Each agency shall
adopt, amend, suspend, or repeal its rulesnew text begin : (1)new text end in accordance with the procedures specified
in sections 14.001 to 14.69deleted text begin , anddeleted text end new text begin ; (2)new text end only pursuant to authority delegated by new text begin state or
federal new text end lawnew text begin ;new text end andnew text begin (3)new text end in full compliance with its duties and obligations.

new text begin (b)new text end If a law authorizing rules is repealed, the rules adopted pursuant to that law are
automatically repealed on the effective date of the law's repeal unless there is another
law authorizing the rules.

new text begin (c)new text end Except as provided in section 14.06, sections 14.001 to 14.69 shall not be
authority for an agency to adopt, amend, suspend, or repeal rules.

Sec. 16.

Minnesota Statutes 2014, section 14.05, subdivision 2, is amended to read:

Subd. 2.

Authority to modify proposed rule.

(a) An agency may modify a
proposed rule in accordance with the procedures of the Administrative Procedure Act.
However, an agency may not modify a proposed rule so that it is substantially different
from the proposed rule in the notice of intent to adopt rules or notice of hearing.

(b) A modification does not make a proposed rule substantially different if:

(1) the differences are within the scope of the matter announced in the notice of
intent to adopt or notice of hearing and are in character with the issues raised in that notice;

(2) the differences are a logical outgrowth of the contents of the notice of intent to
adopt or notice of hearing and the comments submitted in response to the notice; and

(3) the notice of intent to adopt or notice of hearing provided fair warning that the
outcome of that rulemaking proceeding could be the rule in question.

(c) In determining whether the notice of intent to adopt or notice of hearing provided
fair warning that the outcome of that rulemaking proceeding could be the rule in question
the following factors must be considered:

(1) the extent to which persons who will be affected by the rule should have
understood that the rulemaking proceeding on which it is based could affect their interests;

(2) the extent to which the subject matter of the rule or issues determined by the
rule are different from the subject matter or issues contained in the notice of intent to
adopt or notice of hearing; and

(3) the extent to which the effects of the rule differ from the effects of the proposed
rule contained in the notice of intent to adopt or notice of hearing.

new text begin (d) A modification makes a proposed rule substantially different if the modification
causes a rule that did not previously have a substantial economic impact to have a
substantial economic impact.
new text end

Sec. 17.

Minnesota Statutes 2014, section 14.116, is amended to read:

14.116 NOTICE TO LEGISLATURE.

(a) By January 15 each year, each agency must submit its rulemaking docket
maintained under section 14.366, and the official rulemaking record required under section
14.365 for any rule adopted during the preceding calendar year, to the chairs and ranking
minority members of the legislative policy and budget committees with jurisdiction over
the subject matter of the proposed rulenew text begin and to the Legislative Coordinating Commission.
Each agency must post a link to its rulemaking docket on the agency Web site home pagenew text end .

(b) When an agency mails notice of intent to adopt rules under section 14.14 or
14.22, the agency must send a copy of the same notice and a copy of the statement of need
and reasonableness to the chairs and ranking minority party members of the legislative
policy and budget committees with jurisdiction over the subject matter of the proposed
rules and to the Legislative Coordinating Commission.

(c) In addition, if the mailing of the notice is within two years of the effective date
of the law granting the agency authority to adopt the proposed rules, the agency shall
make reasonable efforts to send a copy of the notice and the statement to all sitting
legislators who were chief house of representatives and senate authors of the bill granting
the rulemaking authority. If the bill was amended to include this rulemaking authority,
the agency shall make reasonable efforts to send the notice and the statement to the chief
house of representatives and senate authors of the amendment granting rulemaking
authority, rather than to the chief authors of the bill.

Sec. 18.

Minnesota Statutes 2014, section 14.127, is amended to read:

14.127 LEGISLATIVE APPROVAL REQUIRED.

Subdivision 1.

deleted text begin Cost thresholdsdeleted text end new text begin Substantial economic impactnew text end .

An agency must
determine if deleted text begin the cost of complying withdeleted text end a proposed rule deleted text begin in the first year after the rule
takes effect will exceed $25,000 for: (1) any one business that has less than 50 full-time
employees; or (2) any one statutory or home rule charter city that has less than ten
full-time employees. For purposes of this section, "business" means a business entity
organized for profit or as a nonprofit, and includes an individual, partnership, corporation,
joint venture, association, or cooperativedeleted text end new text begin has a substantial economic impact, as defined
in section 14.02, subdivision 5new text end .

Subd. 2.

Agency determination.

An agency must make the determination required
by subdivision 1 before the deleted text begin close of the hearing record, or before the agency submits the
record to the administrative law judge if there is no hearingdeleted text end new text begin agency gives notice under
section 14.14, 14.22, 14.225, or 14.389new text end . deleted text begin The administrative law judge must review and
deleted text end deleted text begin approve or disapprove the agency determination under this section.
deleted text end

Subd. 3.

Legislative approval required.

new text begin (a) If the agency determines that a
proposed rule has a substantial economic impact, the agency must request the legislative
auditor to convene a five-person peer review advisory panel to conduct an impact analysis
of the proposed rule. Within 30 days of receipt of the agency's request, the legislative
auditor shall convene a peer review advisory panel. The advisory panel must be made up
of individuals who have not directly or indirectly been involved in the work conducted or
contracted by the agency and who are not employed by the agency. The agency must pay
each panel member for the costs of the person's service on the panel, as determined by
the legislative auditor. The agency shall transfer an amount from the agency's operating
budget to the legislative auditor to pay for costs for convening the peer review advisory
panel process. The panel may receive written and oral comments from the public during
its review. The panel must submit its report within 60 days of being convened. The
agency must receive a final report from the panel before the agency conducts a public
hearing on a proposed rule or, if no hearing is held, before the rule is submitted to the
administrative law judge. The panel's report must include its conclusions on the extent to
which the proposed rule:
new text end

new text begin (1) is based on sound, reasonably available scientific, technical, economic, or other
information or rationale; and
new text end

new text begin (2) is more restrictive than a standard, limitation, or requirement imposed by federal
law or rule pertaining to the same subject matter.
new text end

new text begin (b) If the agency determines that a rule does not have a substantial economic impact,
the administrative law judge must review this determination. If the administrative law
judge determines that a rule may have a substantial economic impact, the agency must
have the legislative auditor arrange for the analysis required by paragraph (a), and the
agency must give new notice of intent to adopt the proposed rule after receiving this
analysis. The administrative law judge may make this determination as part of the
administrative law judge's report on the proposed rule, or at any earlier time after the
administrative law judge is assigned to the rule proceeding.
new text end

new text begin (c) new text end If the agency determines that the deleted text begin cost exceeds the threshold in subdivision 1
deleted text end new text begin proposed rule has a substantial economic impactnew text end , or if the administrative law judge
disapproves the agency's determination that the deleted text begin cost doesdeleted text end new text begin rule does new text end not deleted text begin exceed the threshold
in subdivision 1, any business that has less than 50 full-time employees or any statutory
or home rule charter city that has less than ten full-time employees may file a written
statement with the agency claiming a temporary exemption from the rules. Upon filing of
such a statement with the agency, the rules do not apply to that business or that city until the
rules aredeleted text end new text begin have a substantial economic impact, the agency or the administrative law judge
shall deliver the determination and peer review advisory panel report to the Legislative
Coordinating Commission and to the chairs and ranking minority members of the house
of representatives and senate committees and divisions with jurisdiction over the subject
matter of the rule, and the proposed rule does not take effect until the rule is new text end approved by a
law enacted after the agency determination or administrative law judge disapproval.

Subd. 4.

Exceptions.

(a) deleted text begin Subdivision 3 does not apply if the administrative law
judge approves an agency's determination that the legislature has appropriated money to
sufficiently fund the expected cost of the rule upon the business or city proposed to be
regulated by the rule.
deleted text end

deleted text begin (b)deleted text end Subdivision 3 does not apply if the administrative law judge approves an
agency's determination that the rule has been proposed pursuant to a specific federal
statutory or regulatory mandate.

deleted text begin (c)deleted text end new text begin (b) new text end This section does not apply if the rule is adopted under section 14.388 or
under another law specifying that the rulemaking procedures of this chapter do not apply.

deleted text begin (d)deleted text end new text begin (c) new text end This section does not apply to a rule adopted by the Public Utilities
Commission.

deleted text begin (e) Subdivision 3 does not apply if the governor waives application of subdivision 3.
The governor may issue a waiver at any time, either before or after the rule would take
effect, but for the requirement of legislative approval. As soon as possible after issuing a
waiver under this paragraph, the governor must send notice of the waiver to the speaker of
the house and the president of the senate and must publish notice of this determination in
the State Register.
deleted text end

Subd. 5.

Severability.

If an administrative law judge determines that part of a
proposed rule deleted text begin exceeds the threshold specified in subdivision 1deleted text end new text begin has a substantial economic
impactnew text end , but that a severable portion of a proposed rule does not deleted text begin exceed the threshold in
subdivision 1deleted text end new text begin have a substantial economic impactnew text end , the administrative law judge may
provide that the severable portion of the rule that does not deleted text begin exceed the thresholddeleted text end new text begin have a
substantial economic impact new text end may take effect without legislative approval.

Sec. 19.

Minnesota Statutes 2014, section 14.131, is amended to read:

14.131 STATEMENT OF NEED AND REASONABLENESS.

By the date of the section 14.14, subdivision 1a, new text begin 14.22, or 14.225, new text end notice, the agency
must prepare, review, and make available for public review a statement of the need for and
reasonableness of the rule. The statement of need and reasonableness must be prepared
under rules adopted by the chief administrative law judge and must include the following
to the extent the agency, through reasonable effort, can ascertain this information:

(1) a description of the classes of persons who probably will be affected by the
proposed rule, including classes that will bear the costs of the proposed rule and classes
that will benefit from the proposed rule;

(2) the probable costs to the agency and to any other agency of the implementation
and enforcement of the proposed rule and any anticipated effect on state revenues;

(3) a determination of whether there are less costly methods or less intrusive
methods for achieving the purpose of the proposed rule;

(4) a description of any alternative methods for achieving the purpose of the
proposed rule that were seriously considered by the agency and the reasons why they
were rejected in favor of the proposed rule;

(5) the probable costs of complying with the proposed rule, including the portion
of the total costs that will be borne by identifiable categories of affected parties, such as
separate classes of governmental units, businesses, or individuals;

(6) the probable costs or consequences of not adopting the proposed rule, including
those costs or consequences borne by identifiable categories of affected parties, such as
separate classes of government units, businesses, or individuals;

(7) an assessment of any differences between the proposed rule and existing federal
regulations and a specific analysis of the need for and reasonableness of each difference; deleted text begin and
deleted text end

(8) an assessment of the cumulative effect of the rule with other federal and state
regulations related to the specific purpose of the ruledeleted text begin .deleted text end new text begin ; and
new text end

new text begin (9) the agency's findings and conclusions that support its determination that the
proposed rule does or does not have a substantial economic impact.
new text end

The statement must describe how the agency, in developing the rules, considered
and implemented the legislative policy supporting performance-based regulatory systems
set forth in section 14.002new text begin in a cost-effective and timely mannernew text end .

For purposes of clause (8), "cumulative effect" means the impact that results from
incremental impact of the proposed rule in addition to other rules, regardless of what
state or federal agency has adopted the other rules. Cumulative effects can result from
individually minor but collectively significant rules adopted over a period of time.

new text begin The statement must describe, with reasonable particularity, the scientific, technical,
economic, or other information and rationale that supports the proposed rule.
new text end

The statement must also describe the agency's efforts to provide additional
notification under section 14.14, subdivision 1a, to persons or classes of persons who may
be affected by the proposed rule or must explain why these efforts were not made.

The agency must consult with the commissioner of management and budget to
help evaluate the fiscal impact and fiscal benefits of the proposed rule on units of local
government. The agency must send a copy of the statement of need and reasonableness
to the Legislative Reference Library when the notice of hearing is mailed under section
14.14, subdivision 1a.

Sec. 20.

Minnesota Statutes 2014, section 14.388, subdivision 2, is amended to read:

Subd. 2.

Notice.

An agency proposing to adopt, amend, or repeal a rule under this
section must givenew text begin notice to the chairs and ranking minority members of the legislative
policy and budget committees with jurisdiction over the subject matter of the proposed
rules and to the Legislative Coordinating Commission, must givenew text end electronic notice of its
intent in accordance with section 16E.07, subdivision 3, and new text begin must give new text end notice by United
States mail or electronic mail to persons who have registered their names with the agency
under section 14.14, subdivision 1a. The notice must be given no later than the date the
agency submits the proposed rule to the Office of Administrative Hearings for review
of its legality and must include:

(1) the proposed rule, amendment, or repeal;

(2) an explanation of why the rule meets the requirements of the good cause
exemption under subdivision 1; and

(3) a statement that interested parties have five business days after the date of the
notice to submit comments to the Office of Administrative Hearings.

Sec. 21.

Minnesota Statutes 2014, section 14.389, subdivision 2, is amended to read:

Subd. 2.

Notice and comment.

The agency must publish notice of the proposed
rule in the State Register deleted text begin anddeleted text end new text begin ,new text end must mail the notice by United States mail or electronic
mail to persons who have registered with the agency to receive mailed noticesnew text begin , and must
give notice to the chairs and ranking minority members of the legislative policy and
budget committees with jurisdiction over the subject matter of the proposed rules and to
the Legislative Coordinating Commissionnew text end . The mailed notice new text begin and the notice to legislators
new text end must include either a copy of the proposed rule or a description of the nature and effect
of the proposed rule and a statement that a free copy is available from the agency upon
request. The notice in the State Register must include the proposed rule or the amended
rule in the form required by the revisor under section 14.07, an easily readable and
understandable summary of the overall nature and effect of the proposed rule, and a
citation to the most specific statutory authority for the rule, including authority for the
rule to be adopted under the process in this section. The agency must allow 30 days after
publication in the State Register for comment on the rule.

Sec. 22.

Minnesota Statutes 2014, section 14.44, is amended to read:

14.44 DETERMINATION OF VALIDITY OF RULE.

new text begin (a) new text end The validity of any rulenew text begin , or the validity of any agency policy, guideline, bulletin,
criterion, manual standard, or similar pronouncement that the petitioner believes is a
rule as defined in section 14.02, subdivision 4,new text end may be determined upon the petition
for a declaratory judgment thereon, addressed to the Court of Appeals, when it appears
that the rulenew text begin or pronouncementnew text end , or its threatened application, interferes with or impairs,
or threatens to interfere with or impair the legal rights or privileges of the petitioner.
The agency shall be made a party to the proceeding. The declaratory judgment may be
rendered whether or not the petitioner has first requested the agency to pass upon the
validity of the rule in question, new text begin whether or not the petitioner has petitioned the Office
of Administrative Hearings under section 14.381, new text end and whether or not the agency has
commenced an action against the petitioner to enforce the rule.

new text begin (b) If the subject of the petition is an agency policy, guideline, bulletin, criterion,
manual standard, or similar pronouncement, the agency must cease enforcement of the
pronouncement upon filing of the petition until the Court of Appeals rules on the matter.
The agency is liable for all costs associated with review of the petition. If the Court of
Appeals rules in favor of the agency, the agency may recover all or a portion of the cost
from the petitioner unless the petitioner is entitled to proceed in forma pauperis under
section 563.01, or the court determines that the petition was brought in good faith or the
assessment of the costs would constitute an undue hardship for the petitioner.
new text end

Sec. 23.

Minnesota Statutes 2014, section 14.45, is amended to read:

14.45 RULE DECLARED INVALID.

In proceedings under section 14.44, the court shall declare the rule new text begin or agency
pronouncement new text end invalid if it finds that it violates constitutional provisions or exceeds the
statutory authority of the agency or new text begin if the rule new text end was adopted new text begin or the pronouncement was
improperly implemented new text end without compliance with statutory rulemaking procedures. Any
party to proceedings under section 14.44, including the agency, may appeal an adverse
decision of the Court of Appeals to the Supreme Court as in other civil cases.

Sec. 24.

new text begin [15.0145] ETHNIC COUNCILS.
new text end

new text begin Subdivision 1. new text end

new text begin Three ethnic councils; creation. new text end

new text begin (a) The Minnesota Council on
Latino Affairs includes public members with an ethnic heritage from Mexico, any of the
countries in Central or South America, Cuba, the Dominican Republic, or Puerto Rico.
new text end

new text begin (b) The Minnesota African Heritage Council includes public members of black
African ancestry.
new text end

new text begin (c) The Council on Asian-Pacific Minnesotans includes public members with an
ethnic heritage from any of the countries east of, and including, Afghanistan or the
Pacific Islands.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) Each council has 15 voting members. Eleven members
of each council are public members appointed by the governor. Four members of each
council are legislators.
new text end

new text begin (b) The governor shall appoint 11 members of each council as follows:
new text end

new text begin (1) the Minnesota Council on Latino Affairs must include one member representing
each of the state's congressional districts and three members appointed at-large. The
governor must attempt to ensure that the demographic composition of council members
accurately reflects the demographic composition of Minnesota's Latino community,
including recent immigrants, as determined by the state demographer;
new text end

new text begin (2) the Minnesota African Heritage Council must include members who are
broadly representative of the African heritage community of the state. The council must
include at least five females. At least three members must be first or second generation
African immigrants, who generally reflect the demographic composition of these African
immigrants, as determined by the state demographer; and
new text end

new text begin (3) the Council on Asian-Pacific Minnesotans must include one member from each
of the five ancestries with the state's highest percentages of Asian-Pacific populations,
as determined by the state demographer. The other six members must be broadly
representative of the rest of the Asian-Pacific population, with no more than one council
member from any one ancestry. For purposes of this clause, ancestry refers to heritage that
is commonly accepted in Minnesota as a unique population.
new text end

new text begin (c) Four legislators are voting members of each council. The speaker of the house
and the house minority leader shall each appoint one member to each council. The
Subcommittee on Committees of the senate Committee on Rules and Administration shall
appoint one member of the majority caucus and one member of the minority caucus to
each council.
new text end

new text begin (d) The governor may appoint a commissioner of a state agency or a designee of that
commissioner to serve as an ex-officio, nonvoting member of a council.
new text end

new text begin Subd. 3. new text end

new text begin Appointments; terms; removal. new text end

new text begin (a) In making appointments to a council,
the governor shall consider an appointee's proven dedication and commitment to the
council's community and any expertise possessed by the appointee that might be beneficial
to the council, such as experience in public policy, legal affairs, social work, business,
or management. The executive director of a council and legislative members may offer
advice to the governor on applicants seeking appointment.
new text end

new text begin (b) Terms, compensation, and filling of vacancies for members appointed by the
governor are as provided in section 15.059. Removal of members appointed by the
governor is governed by section 15.059, except that: (1) a member who missed more than
half of the council meetings convened during a 12-month period automatically is removed
from the council; and (2) a member appointed by the governor may be removed by a vote
of three of the four legislative members of the council. The chair of a council shall inform
the governor of the need for the governor to fill a vacancy on the council. Legislative
members serve at the pleasure of their appointing authority.
new text end

new text begin (c) A member appointed by the governor may serve no more than a total of eight
years on a council. A legislator may serve no more than eight consecutive years or 12
nonconsecutive years on any one council.
new text end

new text begin Subd. 4. new text end

new text begin Training; executive committee; meetings; support. new text end

new text begin (a) A member
appointed by the governor must attend orientation training within the first six months of
service for each term. The commissioner of administration must arrange for the training
to include but not be limited to the legislative process, government data practices, open
meeting law, Robert's Rules of Order, fiscal management, and human resources. The
governor must remove a member who does not complete the training.
new text end

new text begin (b) Each council shall annually elect from among the members appointed by the
governor a chair and other officers it deems necessary. These officers and one legislative
member selected by the council shall serve as the executive committee of the council.
new text end

new text begin (c) Forty percent of voting members of a council constitutes a quorum. A quorum is
required to conduct council business. A council member may not vote on any action if the
member has a conflict of interest under section 10A.07.
new text end

new text begin (d) Each council shall receive administrative support from the commissioner of
administration under section 16B.371.
new text end

new text begin Subd. 5. new text end

new text begin Executive director; staff. new text end

new text begin (a) The Legislative Coordinating Commission
must appoint an executive director for each council. The executive director must be
experienced in administrative activities and familiar with the challenges and needs of
the ethnic council's larger community. The executive director serves in the unclassified
service at the pleasure of the Legislative Coordinating Commission.
new text end

new text begin (b) The Legislative Coordinating Commission must establish a process for recruiting
and selecting applicants for the executive director positions. This process must include
consultation and collaboration with the applicable council.
new text end

new text begin (c) The executive director and applicable council members must work together in
fulfilling council duties. The executive director must consult with the commissioners of
administration and management and budget to ensure appropriate financial, purchasing,
human resources, and other services for operation of the council. The executive director
must appoint and supervise the work of other staff necessary to carry out the duties of the
council. The executive director and other council staff are executive branch employees.
new text end

new text begin Subd. 6. new text end

new text begin Duties of council. new text end

new text begin (a) A council must work for the implementation
of economic, social, legal, and political equality for its constituency. The council shall
work with the legislature and governor to carry out this work by performing the duties
in this section.
new text end

new text begin (b) A council shall advise the governor and the legislature on issues confronting the
constituency of the council. This may include, but is not limited to, presenting the results
of surveys, studies, and community forums to the appropriate executive departments
and legislative committees.
new text end

new text begin (c) A council shall advise the governor and the legislature of administrative
and legislative changes needed to improve the economic and social condition of the
constituency of the council. This may include but is not limited to working with legislators
to develop politically feasible legislation to address these issues and to work for passage
of the legislation. This may also include making recommendations regarding the state's
affirmative action program and the state's targeted group small business program, or
working with state agencies and organizations to develop business opportunities and
promote economic development for the constituency of the council.
new text end

new text begin (d) A council shall advise the governor and the legislature of the implications
and effect of proposed administrative and legislative changes on the constituency of
the council. This may include but is not limited to tracking legislation, testifying as
appropriate, and meeting with executive departments and legislators.
new text end

new text begin (e) A council shall serve as a liaison between state government and organizations that
serve the constituency of the council. This may include but is not limited to working with
these organizations to carry out the duties in paragraphs (a) to (d), and working with these
organizations to develop informational programs or publications to involve and empower
the constituency in seeking improvement in their economic and social conditions.
new text end

new text begin (f) A council shall perform or contract for the performance of studies designed
to suggest solutions to the problems of the constituency of the council in the areas of
education, employment, human rights, health, housing, social welfare, and other related
areas.
new text end

new text begin (g) In carrying out duties under this subdivision, councils may act to advise on issues
that affect the shared constituencies of more than one council.
new text end

new text begin Subd. 7. new text end

new text begin Duties of council members. new text end

new text begin A council member shall:
new text end

new text begin (1) attend and participate in scheduled meetings and be prepared by reviewing
meeting notes;
new text end

new text begin (2) maintain and build communication with the community represented;
new text end

new text begin (3) collaborate with the council and executive director in carrying out the council's
duties; and
new text end

new text begin (4) participate in activities the council or executive director deem appropriate and
necessary to facilitate the goals and duties of the council.
new text end

new text begin Subd. 8. new text end

new text begin Reports. new text end

new text begin A council must report on the measurable outcomes achieved in
the council's current strategic plan to meet its statutory duties, along with the specific
objectives and outcome measures proposed for the following year. The council must
submit the report by January 15 each year to the chairs of the committees in the house of
representatives and the senate with primary jurisdiction over state government operations.
Each report must cover the calendar year of the year before the report is submitted. The
specific objectives and outcome measures for the following current year must focus on
three or four achievable objectives, action steps, and measurable outcomes for which
the council will be held accountable. The strategic plan may include other items that
support the statutory purposes of the council but should not distract from the primary
statutory proposals presented. The funding request of each council, after approval by the
Legislative Coordinating Commission, must also be presented by February 1 in each
odd-numbered year.
new text end

Sec. 25.

new text begin [16A.0565] CENTRALIZED TRACKING LIST OF AGENCY
PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Centralized tracking. new text end

new text begin The commissioner must maintain a
centralized tracking list of new agency projects estimated to cost more than $100,000 that
are paid for from the general fund.
new text end

new text begin Subd. 2. new text end

new text begin New agency project. new text end

new text begin (a) For purposes of this section a "new agency
project" means:
new text end

new text begin (1) any new agency program or activity with more than $100,000 in funding from
the general fund; and
new text end

new text begin (2) any pre-existing agency program or activity with an increase of $100,000 or
more above the base level in general fund support.
new text end

new text begin (b) For purposes of this section, a new agency project does not include:
new text end

new text begin (i) general aid programs for units of local government, or entitlement programs
providing assistance to individuals; or
new text end

new text begin (ii) a new program or activity or increase in a program or activity that is mandated
by law.
new text end

new text begin Subd. 3. new text end

new text begin Transparency requirements. new text end

new text begin The centralized tracking list maintained by
the commissioner must report the following for each new agency project:
new text end

new text begin (1) name of the agency and title of the project;
new text end

new text begin (2) a brief description of the project and its purposes;
new text end

new text begin (3) the extent to which the project has been implemented; and
new text end

new text begin (4) the amount of money that has been spent on the project.
new text end

new text begin Subd. 4. new text end

new text begin Timing and reporting. new text end

new text begin The commissioner must display the information
required by subdivision 3 on the department's Web site. The list shall be maintained in a
widely available and common document format such as a spreadsheet, that does not
require any new costs to develop. The commissioner must report this information to the
chairs of the house of representatives Ways and Means Committee and senate Finance
Committee quarterly, and must update the information on the Web site at least quarterly.
new text end

Sec. 26.

Minnesota Statutes 2014, section 16A.065, is amended to read:

16A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES
DOCUMENTS.

Notwithstanding section 16A.41, subdivision 1, the commissioner may allow an
agency to make advance deposits or payments for software or software maintenance
services for state-owned or leased electronic data processing equipment,new text begin for information
technology hosting services,new text end for sole source maintenance agreements where it is not
cost-effective to pay in arrears, for exhibit booth space or boat slip rental when required
by the renter to guarantee the availability of space, for registration fees where advance
payment is required or advance payment discount is provided, and for newspaper,
magazine, and other subscription fees customarily paid for in advance. The commissioner
may also allow advance deposits by any department with the Library of Congress and
federal Supervisor of Documents for items to be purchased from those federal agencies.

Sec. 27.

Minnesota Statutes 2014, section 16A.103, is amended by adding a
subdivision to read:

new text begin Subd. 1h. new text end

new text begin Revenue uncertainty information. new text end

new text begin The commissioner shall report
to the legislature within 14 days of a forecast under subdivision 1 on uncertainty in
Minnesota's general fund revenue projections. The report shall present information on: (1)
the estimated range of forecast error for revenues and (2) the data and methods used to
construct those measurements.
new text end

Sec. 28.

Minnesota Statutes 2014, section 16A.11, is amended by adding a subdivision
to read:

new text begin Subd. 3d. new text end

new text begin Consideration of general incentives. new text end

new text begin In supplement to, and under the
same deadline as, the governor's budget submission under subdivision 3, the commissioner
shall submit a report identifying each general incentive for which an evaluation was
completed under section 3.9735 in accordance with this section since the governor's
previous budget submission. For each evaluated incentive, the commissioner's report shall
include a recommendation for whether the incentive should be continued or modified,
or whether the state would be better served by using other incentives or strategies to
achieve the incentive's goals. The commissioner's report must include the rationale for
each recommendation.
new text end

Sec. 29.

Minnesota Statutes 2014, section 16A.11, is amended by adding a subdivision
to read:

new text begin Subd. 3e. new text end

new text begin Consideration of best practices for exclusive incentives. new text end

new text begin If a new
analysis of best practices for exclusive incentives under section 3.9735 has been
completed since the governor's previous budget submission, the commissioner's report
under subdivision 3d shall include recommendations for when and how Minnesota should
offer and manage exclusive incentives in the future and how they should be structured.
The commissioner's report must include the rationale for each recommendation.
new text end

Sec. 30.

Minnesota Statutes 2014, section 16B.24, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin State band. new text end

new text begin The commissioner must provide free rehearsal and storage
space in the same building in the Capitol Area to an entity known as the Minnesota
State Band, which is a tax exempt organization under section 501(c)(3) of the Internal
Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 31.

Minnesota Statutes 2014, section 16B.335, subdivision 1, is amended to read:

Subdivision 1.

Construction and major remodeling.

(a) The commissioner, or
any other recipient to whom an appropriation is made to acquire or better public lands
or buildings or other public improvements of a capital nature, must not prepare final
plans and specifications for any construction, major remodeling, or land acquisition in
anticipation of which the appropriation was made until the agency that will use the
project has presented the program plan and cost estimates for all elements necessary to
complete the project to the chair of the senate Finance Committee and the chair of the
house of representatives Ways and Means Committee and the chairs have made their
recommendations, and the chair and ranking minority member of the senate Capital
Investment Committee and the chair and ranking minority member of the house of
representatives Capital Investment Committee are notified. "Construction or major
remodeling" means construction of a new building, a substantial addition to an existing
building, or a substantial change to the interior configuration of an existing building. The
presentation must note any significant changes in the work that will be done, or in its cost,
since the appropriation for the project was enacted or from the predesign submittal. The
program plans and estimates must be presented for review at least two weeks before a
recommendation is needed. The recommendations are advisory only. Failure or refusal to
make a recommendation is considered a negative recommendation.

new text begin (b) new text end The chairs and ranking minority members of the senate Finance and Capital
Investment Committees deleted text begin anddeleted text end new text begin ,new text end the house of representatives Capital Investment and Ways
and Means Committeesnew text begin , and the house of representatives and senate budget committees or
divisions with jurisdiction over the agency that will use the projectnew text end must also be notified
whenever there is a substantial change in a construction or major remodeling project, or in
its cost.new text begin This notice must include the nature and reason for the change, and the anticipated
cost of the change. The notice must be given no later than 10 days after signing a change
order or other document authorizing a change in the project, or if there is not a change
order or other document, no later than 10 days after the project owner becomes aware of a
substantial change in the project or its cost.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end Capital projects exempt from the requirements deleted text begin of this subdivisiondeleted text end new text begin in
paragraph (a) to seek recommendations before preparing final plans and specifications
new text end include demolition or decommissioning of state assets, hazardous material projects, utility
infrastructure projects, environmental testing, parking lots, parking structures, park and
ride facilities, bus rapid transit stations, light rail lines, passenger rail projects, exterior
lighting, fencing, highway rest areas, truck stations, storage facilities not consisting
primarily of offices or heated work areas, roads, bridges, trails, pathways, campgrounds,
athletic fields, dams, floodwater retention systems, water access sites, harbors, sewer
separation projects, water and wastewater facilities, port development projects for which
the commissioner of transportation has entered into an assistance agreement under section
457A.04, ice centers, a local government project with a construction cost of less than
$1,500,000, or any other capital project with a construction cost of less than $750,000.
new text begin The requirements in paragraph (b) to give notice of changes applies to these projects.
new text end

Sec. 32.

Minnesota Statutes 2014, section 16B.371, is amended to read:

16B.371 ASSISTANCE TO SMALL AGENCIES.

(a) The commissioner deleted text begin maydeleted text end new text begin mustnew text end provide administrative support services to new text begin a new text end small
deleted text begin agenciesdeleted text end new text begin agency requesting these servicesnew text end . To promote efficiency and cost-effective use
of state resources, and to improve financial controls, the commissioner may require
a small agency to receive administrative support services through the Department of
Administration or through another agency designated by the commissioner. Services
subject to this section include finance, accounting, payroll, purchasing, human resources,
and other services designated by the commissioner. The commissioner may determine
what constitutes a small agency for purposes of this section. The commissioner, in
consultation with the commissioner of management and budget and small agencies, shall
evaluate small agencies' needs for administrative support services. If the commissioner
provides administrative support services to a small agency, the commissioner must enter
into a service level agreement with the agency, specifying the services to be provided and
the costs and anticipated outcomes of the services.

(b) The Chicano Latino Affairs Council, the Council on Black Minnesotans, the
Council on Asian-Pacific Minnesotans, the Indian Affairs Council, and the Minnesota
State Council on Disability must use the services specified in paragraph (a).

(c) The commissioner of administration may assess agencies for services it provides
under this section. The amounts assessed are appropriated to the commissioner.

(d) For agencies covered in this section, the commissioner has the authority to require
the agency to comply with applicable state finance, accounting, payroll, purchasing, and
human resources policies. The agencies served retain the ownership and responsibility for
spending decisions and for ongoing implementation of appropriate business operations.

Sec. 33.

new text begin [16B.4805] ACCOMMODATION REIMBURSEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Reasonable accommodation" as used in this section
has the meaning given in section 363A.08.
new text end

new text begin (b) "State agency" as used in this section has the meaning given in section 16A.011,
subdivision 12.
new text end

new text begin (c) "Reasonable accommodations eligible for reimbursement" as used in this section
means:
new text end

new text begin (1) reasonable accommodations provided to applicants for employment;
new text end

new text begin (2) reasonable accommodations for employees for services that will need to be
provided on a periodic or ongoing basis; or
new text end

new text begin (3) reasonable accommodations that involve onetime expenses that total more than
$1,000 for an employee in a fiscal year.
new text end

new text begin Subd. 2. new text end

new text begin Reimbursement for making reasonable accommodation. new text end

new text begin The
commissioner of administration shall reimburse state agencies for expenses incurred in
making reasonable accommodations eligible for reimbursement for agency employees and
applicants for employment to the extent that funds are available in the accommodation
account established under subdivision 3 for this purpose.
new text end

new text begin Subd. 3. new text end

new text begin Accommodation account established. new text end

new text begin The accommodation account
is created as an account in the special revenue fund for reimbursing state agencies for
expenses incurred in providing reasonable accommodations eligible for reimbursement for
agency employees and applicants for agency employment.
new text end

new text begin Subd. 4. new text end

new text begin Administration costs. new text end

new text begin The commissioner may use up to 15 percent of the
biennial appropriation for administration of this section.
new text end

new text begin Subd. 5. new text end

new text begin Notification. new text end

new text begin By August 1, 2015, or within 30 days of final enactment,
whichever is later, and each year thereafter by June 30, the commissioner of administration
must notify state agencies that reimbursement for expenses incurred to make reasonable
accommodations eligible for reimbursement for agency employees and applicants for
agency employment is available under this section.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin By January 31 of each year, the commissioner of administration
must report to the chairs and ranking minority members of the house of representatives
and the senate committees with jurisdiction over state government finance on the use of
the central accommodation fund during the prior calendar year. The report must include:
new text end

new text begin (1) the number and type of accommodations requested;
new text end

new text begin (2) the cost of accommodations requested;
new text end

new text begin (3) the state agencies from which the requests were made;
new text end

new text begin (4) the number of requests made for employees and the number of requests for
applicants for employment;
new text end

new text begin (5) the number and type of accommodations that were not provided;
new text end

new text begin (6) any remaining balance left in the fund;
new text end

new text begin (7) if the fund was depleted, the date on which funds were exhausted and the
number, type, and cost of accommodations that were not reimbursed to state agencies; and
new text end

new text begin (8) a description of how the fund was promoted to state agencies.
new text end

new text begin Subd. 7. new text end

new text begin Funding. new text end

new text begin The commissioner of management and budget must determine
the amount of money to be deposited in the accommodation account each fiscal year.
The commissioner must require each executive agency to make payments into the
account from amounts appropriated for agency operations. The commissioner must
implement policies and procedures to divide this amount among executive agencies. If
the commissioner determines that it is not practical for an agency to make payments
into a central account due to legal restrictions on use of the agency's appropriations,
the commissioner shall require the agency to set aside money within its own operating
funds, to be used only for purposes of this section. The amounts paid into the account are
appropriated to the commissioner of administration for purposes of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015. Reimbursement is
available for accommodation expenses incurred after June 30, 2015.
new text end

Sec. 34.

Minnesota Statutes 2014, section 16B.97, subdivision 1, is amended to read:

Subdivision 1.

Grant agreement.

deleted text begin (a)deleted text end A grant agreement is a written instrument or
electronic document defining a legal relationship between a granting agency and a grantee
when the principal purpose of the relationship is to transfer cash or something of value
to the recipient to support a public purpose authorized by law instead of acquiring by
professional or technical contract, purchase, lease, or barter property or services for the
direct benefit or use of the granting agency.

deleted text begin (b) This section does not apply to capital project grants to political subdivisions as
defined by section 16A.86.
deleted text end

Sec. 35.

Minnesota Statutes 2014, section 16B.97, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Commerce grants. new text end

new text begin The office must monitor grants made by the
Department of Commerce.
new text end

Sec. 36.

new text begin [16B.991] TERMINATION OF GRANT.
new text end

new text begin Each grant agreement subject to sections 16B.97 and 16B.98 must provide that the
agreement will immediately be terminated if:
new text end

new text begin (1) the recipient is convicted of a criminal offense relating to a state grant agreement;
or
new text end

new text begin (2) the agency entering into the grant agreement or the commissioner of
administration determines that the grant recipient is under investigation by a federal
agency, a state agency, or a local law enforcement agency for matters relating to
administration of a state grant.
new text end

Sec. 37.

new text begin [16B.992] NO FEES FOR GENERAL FUND GRANT
ADMINISTRATION.
new text end

new text begin An agency may not charge a recipient of a grant from the general fund a fee and
may not deduct money from the grant to pay administrative expenses incurred by the
agency in administering the grant.
new text end

Sec. 38.

Minnesota Statutes 2014, section 16C.03, subdivision 16, is amended to read:

Subd. 16.

Delegation of duties.

new text begin (a) new text end The commissioner may delegate duties imposed
by this chapter to the head of an agency and to any subordinate of the agency head.new text begin At
least once every three years the commissioner must audit use of authority under this
chapter by each employee whom the commissioner has delegated duties.
new text end

new text begin (b) The commissioner must develop guidelines for agencies and employees to whom
authority is delegated under this chapter that protect state legal interests. These guidelines
may provide for review by the commissioner when a specific contract has potential to put
the state's legal interests at risk.
new text end

Sec. 39.

Minnesota Statutes 2014, section 16C.16, subdivision 6a, is amended to read:

Subd. 6a.

Veteran-owned small businesses.

(a) Except when mandated by the
federal government as a condition of receiving federal funds, the commissioner shall
award up to a six percent preference, but no less than the percentage awarded to any
other group under this section, in the amount bid on state procurement to certified small
businesses that are majority-owned and operated by veterans.

(b) The purpose of this designation is to facilitate the transition of veterans from
military to civilian life, and to help compensate veterans for their sacrifices, including but
not limited to their sacrifice of health and time, to the state and nation during their military
service, as well as to enhance economic development within Minnesota.

new text begin (c) Before the commissioner certifies that a small business is majority-owned and
operated by a veteran, the commissioner of veterans affairs must verify that the owner of
the small business is a veteran, as defined in section 197.447.
new text end

Sec. 40.

Minnesota Statutes 2014, section 16C.19, is amended to read:

16C.19 ELIGIBILITY; RULES.

(a) A small business wishing to participate in the programs under section 16C.16,
subdivisions 4 to 7, must be certified by the commissioner. The commissioner shall adopt
by rule standards and procedures for certifying that small targeted group businesses,
small businesses located in economically disadvantaged areas, and veteran-owned small
businesses are eligible to participate under the requirements of sections 16C.16 to 16C.21.
The commissioner shall adopt by rule standards and procedures for hearing appeals and
grievances and other rules necessary to carry out the duties set forth in sections 16C.16
to 16C.21.

(b) The commissioner may make rules which exclude or limit the participation of
nonmanufacturing business, including third-party lessors, brokers, franchises, jobbers,
manufacturers' representatives, and others from eligibility under sections 16C.16 to 16C.21.

(c) The commissioner may make rules that set time limits and other eligibility limits
on business participation in programs under sections 16C.16 to 16C.21.

(d) Notwithstanding paragraph deleted text begin (c)deleted text end new text begin (a)new text end , for purposes of sections 16C.16 to 16C.21, a
veteran-owned small business, the principal place of business of which is in Minnesota,
is certified ifnew text begin :
new text end

new text begin (1)new text end it has been verified by the United States Department of Veterans Affairs as
being either a veteran-owned small business or a service-disabled veteran-owned small
business, in accordance with Public Law 109-461 and Code of Federal Regulations, title
38, part 74deleted text begin .deleted text end new text begin ; or
new text end

new text begin (2) the veteran-owned small business supplies the commissioner with proof that the
small business is majority-owned and operated by:
new text end

new text begin (i) a veteran as defined in section 197.447; or
new text end

new text begin (ii) a veteran with a service-connected disability, as determined at any time by the
United States Department of Veterans Affairs.
new text end

(e) Until rules are adopted pursuant to paragraph (a) for the purpose of certifying
veteran-owned small businesses, the provisions of Minnesota Rules, part 1230.1700, may
be read to include veteran-owned small businesses. In addition to the documentation
required in Minnesota Rules, part 1230.1700, the veteran owner must have been
discharged under honorable conditions from active service, as indicated by the veteran
owner's most current United States Department of Defense form DD-214.

new text begin (f) Notwithstanding paragraph (a), for purposes of sections 16C.16 to 16C.21, a
minority- or woman-owned small business, the principal place of business of which is
in Minnesota, is certified if it has been certified by the Minnesota unified certification
program under the provisions of Code of Federal Regulations, title 49, part 26.
new text end

Sec. 41.

Minnesota Statutes 2014, section 16E.01, is amended to read:

16E.01 OFFICE OF MN.IT SERVICES.

Subdivision 1.

Creation; chief information officer.

The Office of MN.IT Services,
referred to in this chapter as the "office," is an agency in the executive branch headed by
a commissioner, who also is the state chief information officer. The appointment of the
commissioner is subject to the advice and consent of the senate under section 15.066.

Subd. 1a.

Responsibilities.

The office shall provide oversight, leadership, and
direction for information and telecommunications technology policy and the management,
delivery, accessibility, and security of information and telecommunications technology
systems and services in deleted text begin Minnesotadeleted text end new text begin the executive branch of state governmentnew text end . The office
shall manage strategic investments in information and telecommunications technology
systems and services to encourage the development of a technically literate society, to
ensure sufficient access to and efficient delivery of accessible new text begin state new text end government services,
and to maximize benefits for the state government as an enterprise.

Subd. 2.

Discretionary powers.

The office may:

(1) enter into contracts for goods or services with public or private organizations
and charge fees for services it provides;

(2) apply for, receive, and expend money from public agencies;

(3) apply for, accept, and disburse grants and other aids from the federal government
and other public or private sources;

(4) enter into contracts with agencies of the federal government, local governmental
units, the University of Minnesota and other educational institutions, and private persons
and other nongovernmental organizations as necessary to perform its statutory duties;

(5) sponsor and conduct conferences and studies, collect and disseminate information,
and issue reports relating to information and communications technology issues;new text begin and
new text end

deleted text begin (6) review the technology infrastructure of regions of the state and cooperate with
and make recommendations to the governor, legislature, state agencies, local governments,
local technology development agencies, the federal government, private businesses,
and individuals for the realization of information and communications technology
infrastructure development potential;
deleted text end

deleted text begin (7) sponsor, support, and facilitate innovative and collaborative economic and
community development and government services projects, including technology
initiatives related to culture and the arts, with public and private organizations; and
deleted text end

deleted text begin (8)deleted text end new text begin (6)new text end review and recommend alternative sourcing strategies for state information
and communications systems.

Subd. 3.

Duties.

(a) The office shall:

(1) manage the efficient and effective use of available federal, state, local, and
public-private resources to develop statewide information and telecommunications
technology systems and services and its infrastructure;

(2) approve state agency and intergovernmental information and telecommunications
technology systems and services development efforts involving state or intergovernmental
funding, including federal funding, provide information to the legislature regarding
projects reviewed, and recommend projects for inclusion in the governor's budget under
section 16A.11;

(3) ensure cooperation and collaboration among state and local governments in
developing intergovernmental information and telecommunications technology systems
and services, and define the structure and responsibilities of a representative governance
structure;

(4) cooperate and collaborate with the legislative and judicial branches in the
development of information and communications systems in those branches;

(5) continue the development of North Star, the state's official comprehensive online
service and information initiative;

(6) promote and collaborate with the state's agencies in the state's transition to an
effectively competitive telecommunications market;

deleted text begin (7) collaborate with entities carrying out education and lifelong learning initiatives
to assist Minnesotans in developing technical literacy and obtaining access to ongoing
learning resources;
deleted text end

deleted text begin (8)deleted text end new text begin (7)new text end promote and coordinate public information access and network initiatives,
consistent with chapter 13, to connect Minnesota's citizens and communities to each
other, to their governments, and to the world;

deleted text begin (9)deleted text end new text begin (8)new text end promote and coordinate electronic commerce initiatives to ensure that
Minnesota businesses and citizens can successfully compete in the global economy;

deleted text begin (10)deleted text end new text begin (9)new text end manage and promote the regular and periodic reinvestment in the information
and telecommunications technology systems and services infrastructure so that state and
local government agencies can effectively and efficiently serve their customers;

deleted text begin (11)deleted text end new text begin (10)new text end facilitate the cooperative development of and ensure compliance with
standards and policies for information and telecommunications technology systems
and services, electronic data practices and privacy, and electronic commerce among
international, national, state, and local public and private organizations;

deleted text begin (12)deleted text end new text begin (11)new text end eliminate unnecessary duplication of existing information and
telecommunications technology systems and services provided by state agencies;

deleted text begin (13)deleted text end new text begin (12)new text end identify, sponsor, develop, and execute shared information and
telecommunications technology projects and ongoing operations;

deleted text begin (14)deleted text end new text begin (13)new text end ensure overall security of the state's information and technology systems
and services; and

deleted text begin (15)deleted text end new text begin (14)new text end manage and direct compliance with accessibility standards for informational
technology, including hardware, software, Web sites, online forms, and online surveys.

(b) The chief information officer, in consultation with the commissioner of
management and budget, must determine when it is cost-effective for agencies to develop
and use shared information and telecommunications technology systems and services for
the delivery of electronic government services. The chief information officer may require
agencies to use shared information and telecommunications technology systems and
services. The chief information officer shall establish reimbursement rates in cooperation
with the commissioner of management and budget to be billed to agencies and other
governmental entities sufficient to cover the actual development, operating, maintenance,
and administrative costs of the shared systems. The methodology for billing may include
the use of interagency agreements, or other means as allowed by law.

(c) A state agency that has an information and telecommunications technology
project with a total expected project cost of more than deleted text begin $1,000,000deleted text end new text begin $100,000new text end , whether
funded as part of the biennial budget or by any other means, shall register with the office
by submitting basic project startup documentation, as specified by the chief information
officer in both format and content, before any project funding is requested or committed
and before the project commences. State agency project leaders must demonstrate that
the project will be properly managed, provide updates to the project documentation
as changes are proposed, and regularly report on the current status of the project on a
schedule agreed to with the chief information officer.

(d) deleted text begin The chief information officer shall monitor progress on any active information
and telecommunications technology project with a total expected project cost of more than
$5,000,000 and report on the performance of the project in comparison with the plans for
the project in terms of time, scope, and budget. The chief information officer may conduct
an independent project audit of the project. The audit analysis and evaluation of the
projects subject to paragraph (c) must be presented to agency executive sponsors, the
project governance bodies, and the chief information officer. All reports and responses
must become part of the project record.deleted text end new text begin The chief information officer must prepare a
monthly progress report for each active information and telecommunications technology
project over $1,000,000. The report must be provided to the technology advisory council
and must be available on the office's Web site.
new text end

(e) For any active information and telecommunications technology project with a
total expected project cost of more than $10,000,000, the state agency must perform an
annual independent audit that conforms to published project audit principles promulgated
by the office.

(f) The chief information officer shall report by January 15 of each year to the
chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over the office regarding projects the office has reviewed under paragraph (a),
clause (13). The report must include the reasons for the determinations made in the review
of each project and a description of its current status.

new text begin Subd. 4. new text end

new text begin Limits. new text end

new text begin The office may not enter into any new contracts or other
agreements to provide services to political subdivisions. This subdivision does not prevent
political subdivisions from purchasing goods or services from outside vendors through
state contracts, and does not prevent political subdivisions from accessing geospatial data
maintained by the office.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 42.

Minnesota Statutes 2014, section 16E.016, is amended to read:

16E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY
SERVICES AND EQUIPMENT.

(a) The chief information officer is responsible for providing or entering into
managed services contracts for the provision, improvement, and development of the
following information technology systems and services to state agencies:

(1) state data centers;

(2) mainframes including system software;

(3) servers including system software;

(4) desktops including system software;

(5) laptop computers including system software;

(6) a data network including system software;

(7) database, electronic mail, office systems, reporting, and other standard software
tools;

(8) business application software and related technical support services;

(9) help desk for the components listed in clauses (1) to (8);

(10) maintenance, problem resolution, and break-fix for the components listed in
clauses (1) to (8);

(11) regular upgrades and replacement for the components listed in clauses (1)
to (8); and

(12) network-connected output devices.

(b) All state agency employees whose work primarily involves functions specified in
paragraph (a) are employees of the Office of MN.IT Services. This includes employees
who directly perform the functions in paragraph (a), as well as employees whose work
primarily involves managing, supervising, or providing administrative services or support
services to employees who directly perform these functions. The chief information officer
may assign employees of the office to perform work exclusively for another state agency.

(c) deleted text begin Subject to sections 16C.08 and 16C.09, the chief information officer may allow a
state agency to obtain services specified in paragraph (a) through a contract with an outside
vendor when the chief information officer and the agency head agree that a contract would
provide best value, as defined in section 16C.02, under the service-level agreement.deleted text end new text begin A
state agency must enter into a service-level agreement with the chief information officer
for provision of services specified in paragraph (a), or must obtain some or all of these
services through an outside vendor. Before entering into a service-level agreement or
outside vendor contract, an agency must solicit proposals from the office and from at least
one outside vendor. If the cost of the proposal from the office is more than six percent
higher than the cost of a proposal from an outside vendor, the agency may enter into a
contract with an outside vendor, notwithstanding sections 16C.08, subdivision 2, clause
(1); 16C.09, paragraph (a), clause (1); and 43A.047. new text end The chief information officer must
require that agency contracts with outside vendors ensure that systems and services are
compatible with standards established by the Office of MN.IT Services.new text begin The term of a
service-level agreement or a contract under this paragraph is subject to the limits in section
16C.06, subdivision 3b. However, the chief information officer may provide that the term
of the first agreement or contract entered into after the effective date of this section may be
longer, as the chief information officer determines is necessary to establish a system under
which agency agreements and contracts will expire according to a staggered schedule.
A service-level agreement or contract may not be for a term of more than six years. A
contract longer than four years must be followed by a contract of less than four years.
new text end

(d) new text begin The chief information officer may authorize a state agency office located outside
of the seven-county metropolitan area to solicit proposals from MN.IT services and from
an outside vendor separately from the rest of the agency.
new text end

new text begin (e) An agency may not enter into a contract for information technology systems or
services of more than $100,000 with an outside vendor without approval of the chief
information officer.
new text end

new text begin (f) new text end The Minnesota State Retirement System, the Public Employees Retirement
Association, the Teachers Retirement Association, the State Board of Investment, the
Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide
Radio Board are not state agencies for purposes of this section.

Sec. 43.

new text begin [16E.034] ANNUAL REPORT ON IT SPENDING.
new text end

new text begin (a) The chief information officer, in consultation with the commissioner of
management and budget, must report by September 1 each year on:
new text end

new text begin (1) total state agency spending on information technology in the prior fiscal year, and
planned state agency spending on information technology in the current fiscal year; and
new text end

new text begin (2) individual state agency spending on information technology in the prior fiscal
year, and planned spending on information technology in the current fiscal year.
new text end

new text begin (b) The report in paragraph (a) on total state agency and individual agency spending
and proposed spending must show amounts spent and anticipated to be spent in each of
the following categories:
new text end

new text begin (1) new technology projects, or enhancement of existing projects, of more than
$100,000;
new text end

new text begin (2) business as usual and minor enhancements; and
new text end

new text begin (3) infrastructure and operations.
new text end

new text begin (c) The information reported on infrastructure and operations in paragraph (b),
clause (3), must be further divided, by agency, into the following categories:
new text end

new text begin (1) servers;
new text end

new text begin (2) messaging and collaboration;
new text end

new text begin (3) mainframe;
new text end

new text begin (4) storage;
new text end

new text begin (5) database, including administration;
new text end

new text begin (6) technical support;
new text end

new text begin (7) information security;
new text end

new text begin (8) directory administration;
new text end

new text begin (9) architecture;
new text end

new text begin (10) monitoring; and
new text end

new text begin (11) change management.
new text end

Sec. 44.

Minnesota Statutes 2014, section 16E.0465, is amended to read:

16E.0465 TECHNOLOGY APPROVAL.

Subdivision 1.

Application.

This section applies to an appropriation of more than
deleted text begin $1,000,000deleted text end new text begin $100,000new text end of state or federal funds to a state agency for any information and
telecommunications technology project or for any phase of such a project, device, or
system. For purposes of this section, an appropriation of state or federal funds to a state
agency includes an appropriation:

(1) to a constitutional officer;

(2) for a project that includes both a state agency and units of local government; and

(3) to a state agency for grants to be made to other entities.

Subd. 2.

Required review and approval.

(a) A state agency receiving an
appropriation new text begin of more than $500,000 new text end for an information and telecommunications
technology project subject to this section must divide the project into phases.

(b) The commissioner of management and budget may not authorize the
encumbrance or expenditure of an appropriation of state funds to a state agency for deleted text begin anydeleted text end new text begin :
new text end

new text begin (1) a project if the project is subject to this section, but not divided into phases; or
new text end

new text begin (2) anew text end phase of a project, device, or system subject to this sectionnew text begin ,new text end unless the Office of
MN.IT Services has reviewed new text begin the project or new text end each phase of the project, device, or system,
and based on this review, the chief information officer has determined for each new text begin project
or new text end phase that:

deleted text begin (1)deleted text end new text begin (i)new text end the project is compatible with the state information architecture and other
policies and standards established by the chief information officer;

deleted text begin (2)deleted text end new text begin (ii)new text end the agency is able to accomplish the goals of the phase of the project with the
funds appropriated; and

deleted text begin (3)deleted text end new text begin (iii)new text end the project supports the enterprise information technology strategy.

new text begin Subd. 4. new text end

new text begin Monitor progress. new text end

new text begin The chief information officer shall monitor progress on
any active information and telecommunications technology project with a total expected
project cost of more than $5,000,000 and report on the performance of the project in
comparison with the plans for the project in terms of time, scope, and budget. The chief
information officer may conduct an independent project audit of the project. The audit
analysis and evaluation of the projects must be presented to agency executive sponsors,
the project governance bodies, and the chief information officer. All reports and responses
must become part of the project record.
new text end

Sec. 45.

Minnesota Statutes 2014, section 16E.14, subdivision 3, is amended to read:

Subd. 3.

Reimbursements.

Except as specifically provided otherwise by law, each
agency shall reimburse the MN.IT services revolving fund for the cost of all services,
supplies, materials, labor,new text begin employee development and training,new text end and depreciation of
equipment, including reasonable overhead costs, which the chief information officer is
authorized and directed to furnish an agency. The chief information officer shall report the
rates to be charged for the revolving fund no later than July 1 each year to the chair of the
committee or division in the senate and house of representatives with primary jurisdiction
over the budget of the Office of MN.IT Services.

Sec. 46.

Minnesota Statutes 2014, section 16E.145, is amended to read:

16E.145 INFORMATION TECHNOLOGY APPROPRIATION.

An appropriation new text begin of more than $100,000 new text end for a state agency information and
telecommunications technology project must be made to the chief information officer. The
chief information officer must manage and disburse the appropriation on behalf of the
sponsoring state agency. Any appropriation for an information and telecommunications
technology project made to a state agency other than the Office of MN.IT Services is
transferred to the chief information officer.

Sec. 47.

Minnesota Statutes 2014, section 16E.19, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Data storage. new text end

new text begin The chief information officer must establish criteria for
storage of state agency data outside of data centers operated by the chief information
officer. These criteria must include thresholds for when requests of outside data storage
must be approved by the chief information officer.
new text end

Sec. 48.

new text begin [43A.035] LIMIT ON NUMBER OF FULL-TIME EQUIVALENT
EMPLOYEES.
new text end

new text begin The total number of full-time equivalent employees employed in all executive
branch agencies may not exceed 35,927. The commissioner of management and budget
may forbid an executive agency from hiring a new employee or from filling a vacancy as
the commissioner determines is necessary to ensure compliance with this section. Any
reductions in staff should prioritize protecting client-facing health care workers, corrections
officers, public safety workers, and mental health workers. As a means of achieving
compliance with this requirement, the commissioner may authorize an agency to provide
an early retirement incentive to an executive branch employee, under which the state will
continue to make the employer contribution for health insurance after the employee has
terminated state service. The commissioner must prescribe eligibility requirements and the
maximum duration of the payments. For purposes of this section, an "executive agency"
does not include the Minnesota State Colleges and Universities or statewide pension plans.
new text end

Sec. 49.

Minnesota Statutes 2014, section 62V.03, subdivision 2, is amended to read:

Subd. 2.

Application of other law.

(a) MNsure must be reviewed by the legislative
auditor under section 3.971. The legislative auditor shall audit the books, accounts, and
affairs of MNsure once each year or less frequently as the legislative auditor's funds and
personnel permit. Upon the audit of the financial accounts and affairs of MNsure, MNsure
is liable to the state for the total cost and expenses of the audit, including the salaries paid
to the examiners while actually engaged in making the examination. The legislative
auditor may bill MNsure either monthly or at the completion of the audit. All collections
received for the audits must be deposited in the general fund and are appropriated to
the legislative auditor. Pursuant to section 3.97, subdivision 3a, the Legislative Audit
Commission is requested to direct the legislative auditor to report by March 1, 2014, to
the legislature on any duplication of services that occurs within state government as a
result of the creation of MNsure. The legislative auditor may make recommendations on
consolidating or eliminating any services deemed duplicative. The board shall reimburse
the legislative auditor for any costs incurred in the creation of this report.

(b) Board members of MNsure are subject to sections 10A.07 and 10A.09. Board
members and the personnel of MNsure are subject to section 10A.071.

(c) All meetings of the board shall comply with the open meeting law in chapter
13D, except that:

(1) meetings, or portions of meetings, regarding compensation negotiations with the
director or managerial staff may be closed in the same manner and according to the same
procedures identified in section 13D.03;

(2) meetings regarding contract negotiation strategy may be closed in the same
manner and according to the same procedures identified in section 13D.05, subdivision 3,
paragraph (c); and

(3) meetings, or portions of meetings, regarding not public data described in section
62V.06, subdivision 3, and regarding trade secret information as defined in section 13.37,
subdivision 1, paragraph (b), are closed to the public, but must otherwise comply with
the procedures identified in chapter 13D.

(d) MNsure and provisions specified under this chapter are exempt fromdeleted text begin :
deleted text end

deleted text begin (1)deleted text end chapter 14, including section 14.386, except as specified in section 62V.05deleted text begin ; and
deleted text end

deleted text begin (2) chapters 16B and 16C, with the exception of sections 16C.08, subdivision 2,
paragraph (b), clauses (1) to (8); 16C.086; 16C.09, paragraph (a), clauses (1) and (3),
paragraph (b), and paragraph (c); and section 16C.16. However, MNsure, in consultation
with the commissioner of administration, shall implement policies and procedures to
establish an open and competitive procurement process for MNsure that, to the extent
practicable, conforms to the principles and procedures contained in chapters 16B and 16C.
In addition, MNsure may enter into an agreement with the commissioner of administration
for other servicesdeleted text end .

(e) The board and the Web site are exempt from chapter 60K. Any employee of
MNsure who sells, solicits, or negotiates insurance to individuals or small employers must
be licensed as an insurance producer under chapter 60K.

(f) Section 3.3005 applies to any federal funds received by MNsure.

(g) deleted text begin MNsure is exempt from the following sections in chapter 16E: 16E.01,
subdivision 3, paragraph (b); 16E.03, subdivisions 3 and 4; 16E.04, subdivision 1,
subdivision 2, paragraph (c), and subdivision 3, paragraph (b); 16E.0465; 16E.055;
16E.145; 16E.15; 16E.16; 16E.17; 16E.18; and 16E.22.
deleted text end

deleted text begin (h)deleted text end A MNsure decision that requires a vote of the board, other than a decision that
applies only to hiring of employees or other internal management of MNsure, is an
"administrative action" under section 10A.01, subdivision 2.

Sec. 50.

new text begin [138.912] HEALTHY EATING, HERE AT HOME.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The healthy eating, here at home program is
established to provide incentives for low-income Minnesotans to use federal Supplemental
Nutrition Assistance Program (SNAP) benefits for healthy purchases at Minnesota-based
farmers' markets.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Healthy eating, here at home" means a program administered by the Minnesota
Humanities Center to provide incentives for low-income Minnesotans to use SNAP
benefits for healthy purchases at Minnesota-based farmers' markets.
new text end

new text begin (c) "Healthy purchases" means SNAP-eligible foods.
new text end

new text begin (d) "Minnesota-based farmers' market" means a physical market as defined in section
28A.151, subdivision 1, paragraph (b), and also includes mobile markets.
new text end

new text begin (e) "Voucher" means a physical or electronic credit.
new text end

new text begin (f) "Eligible household" means an individual or family that is determined to be a
recipient of SNAP.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin The Minnesota Humanities Center shall allocate grant funds to
nonprofit organizations that work with Minnesota-based farmers' markets to provide up
to $10 vouchers to SNAP participants who use electronic benefits transfer (EBT) cards
for healthy purchases. Funds may also be provided for vouchers distributed through
nonprofit organizations engaged in healthy cooking and food education outreach to
eligible households for use at farmers' markets. Funds appropriated under this section may
not be used for healthy cooking classes or food education outreach. When awarding
grants, the Minnesota Humanities Center must consider how the nonprofit organizations
will achieve geographic balance, including specific efforts to reach eligible households
across the state, and the organizations' capacity to manage the programming and outreach.
new text end

new text begin Subd. 4. new text end

new text begin Household eligibility; participation. new text end

new text begin To be eligible for a healthy eating,
here at home voucher, an eligible household must meet the Minnesota SNAP eligibility
requirements under section 256D.051.
new text end

new text begin Subd. 5. new text end

new text begin Permissible uses; information provided. new text end

new text begin An eligible household may use
the voucher toward healthy purchases at Minnesota-based farmers' markets. Every eligible
household that receives a voucher must be informed of the allowable uses of the voucher.
new text end

new text begin Subd. 6. new text end

new text begin Program reporting. new text end

new text begin The nonprofit organizations that receive grant funds
must report annually to the Minnesota Humanities Center with information regarding the
operation of the program, including the number of vouchers issued and the number of
people served. To the extent practicable, the nonprofit organizations must report on the
usage of the vouchers and evaluate the program's effectiveness.
new text end

new text begin Subd. 7. new text end

new text begin Grocery inclusion. new text end

new text begin The commissioner of human services must submit a
waiver request to the federal United States Department of Agriculture seeking approval
for the inclusion of Minnesota grocery stores in this program so that SNAP participants
may use the vouchers for healthy produce at grocery stores. Grocery store participation is
voluntary and a grocery store's associated administrative costs will not be reimbursed.
new text end

Sec. 51.

Minnesota Statutes 2014, section 148.57, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Expedited and temporary licensing for former and current members
of the military. new text end

new text begin (a) Applicants seeking licensure according to this subdivision must be:
new text end

new text begin (1) an active duty military member;
new text end

new text begin (2) the spouse of an active duty military member; or
new text end

new text begin (3) a veteran who has left service in the two years preceding the date of license
application, and has confirmation of an honorable or general discharge status.
new text end

new text begin (b) A qualified applicant under this subdivision must provide evidence of:
new text end

new text begin (1) a current valid license, certificate, or permit in another state without history of
disciplinary action by a regulatory authority in the other state; and
new text end

new text begin (2) a current criminal background study without a criminal conviction that is
determined by the board to adversely affect the applicant's ability to become licensed.
new text end

new text begin (c) A temporary license issued under this subdivision is effective for six months
from the initial temporary licensure date.
new text end

new text begin (d) During the temporary license period, the individual shall complete the licensed
optometrist application for licensure.
new text end

new text begin (e) In order to remain licensed after the expiration of the temporary license, an
individual must meet the requirements in section 148.57, subdivisions 1 and 2.
new text end

Sec. 52.

Minnesota Statutes 2014, section 148.624, subdivision 5, is amended to read:

Subd. 5.

new text begin Expedited and new text end temporary new text begin licensing for former and current members
of the new text end military deleted text begin permitdeleted text end .

deleted text begin The board shall issue a temporary permit to members of the
military in accordance with section 197.4552. deleted text end new text begin (a) Applicants seeking licensure according
to this subdivision must be:
new text end

new text begin (1) an active duty military member;
new text end

new text begin (2) the spouse of an active duty military member; or
new text end

new text begin (3) a veteran who has left service in the two years preceding the date of license
application, and has confirmation of an honorable or general discharge status.
new text end

new text begin (b) A qualified applicant under this subdivision must provide evidence of:
new text end

new text begin (1) a current valid license in another state without history of disciplinary action by a
regulatory authority in the other state; and
new text end

new text begin (2) a current criminal background study without a criminal conviction that is
determined by the board to adversely affect the applicant's ability to become licensed.
new text end

new text begin (c) A temporary license issued under this subdivision is effective for six months
from the initial temporary licensure date.
new text end

new text begin (d) During the temporary license period, the individual shall complete the licensed
dietitian or nutritionist application for licensure.
new text end

new text begin (e) In order to remain licensed after the expiration of the temporary license, an
individual must meet the full licensure requirements.
new text end

new text begin (f)new text end The fee for the temporary deleted text begin permitdeleted text end new text begin licensenew text end is $250.

Sec. 53.

Minnesota Statutes 2014, section 148B.33, is amended by adding a
subdivision to read: