HF 3931

2nd Unofficial Engrossment - 89th Legislature (2015 - 2016) Posted on 05/12/2016 09:14am

1.1A bill for an act

1.2relating to financing of state and local government; making changes to individual
1.3income and corporate franchise, property, sales and use, special, local, and
1.4other taxes and tax-related provisions; providing for and expanding credits;
1.5authorizing riparian protection aid; providing property tax exemptions and
1.6refunds; authorizing sales and use tax exemptions; modifying sales and use tax
1.7remittances; providing for and modifying certain local development projects;
1.8modifying special taxing districts; authorizing issuance of bonds; providing for
1.9paid family and medical leave benefits; transferring approval authority from Iron
1.10Range Resources and Rehabilitation Board to the commissioner of Iron Range
1.11resources and rehabilitation; authorizing early separation incentive program;
1.12appropriating money;amending Minnesota Statutes 2014, sections 13.719, by
1.13adding a subdivision; 15.38, subdivision 7; 116J.424; 116J.8737, subdivision
1.142; 181.940, subdivisions 2, 4; 181.941, subdivision 4; 181.942, subdivision 1;
1.15181.943; 216B.161, subdivision 1; 256J.561, by adding a subdivision; 256J.95,
1.16subdivisions 3, 11; 268.19, subdivision 1; 270B.14, subdivision 2; 272.162;
1.17276A.01, subdivisions 8, 17; 282.38, subdivision 1; 290.01, subdivisions 19a,
1.1819b, 19c; 290.06, by adding a subdivision; 290.091, subdivision 2; 297A.66,
1.19subdivisions 1, 3, 4, by adding subdivisions; 297A.71, by adding subdivisions;
1.20297A.75, subdivisions 1, 2, 3; 298.001, subdivision 8; 298.22, subdivisions 1a,
1.215a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5,
1.226; 298.223, subdivisions 1, 2; 298.227; 298.28, subdivisions 7a, 9d; 298.292,
1.23subdivision 2; 298.294; 298.296, subdivisions 1, 2, 4; 298.2961, subdivisions 2,
1.244; 298.298; 298.46, subdivision 2; 473.39, by adding a subdivision; Minnesota
1.25Statutes 2015 Supplement, sections 256P.01, subdivision 3; 289A.02, subdivision
1.267; 290.01, subdivisions 19, 31; 290.0671, subdivision 1; 290A.03, subdivision
1.2715; 291.005, subdivision 1; Laws 1988, chapter 645, section 3, as amended;
1.28Laws 2008, chapter 154, article 9, section 21, subdivision 2; Laws 2009, chapter
1.2988, article 2, section 46, subdivisions 1, as amended, 2, 3, as amended, 4, 5;
1.30Laws 2014, chapter 308, article 6, section 9; proposing coding for new law in
1.31Minnesota Statutes, chapters 181; 216B; 270C; 290; 469; 477A; proposing
1.32coding for new law as Minnesota Statutes, chapter 268B.
1.33BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1ARTICLE 1

2.2INCOME AND CORPORATE FRANCHISE TAXES

2.3    Section 1. Minnesota Statutes 2014, section 116J.8737, subdivision 2, is amended to
2.4read:
2.5    Subd. 2. Certification of qualified small businesses. (a) Businesses may apply
2.6to the commissioner for certification as a qualified small business or qualified greater
2.7Minnesota small business for a calendar year. The application must be in the form
2.8and be made under the procedures specified by the commissioner, accompanied by an
2.9application fee of $150. Application fees are deposited in the small business investment
2.10tax credit administration account in the special revenue fund. The application for
2.11certification for 2010 must be made available on the department's Web site by August 1,
2.122010. Applications for subsequent years' certification must be made available on the
2.13department's Web site by November 1 of the preceding year.
2.14(b) Within 30 days of receiving an application for certification under this subdivision,
2.15the commissioner must either certify the business as satisfying the conditions required
2.16of a qualified small business or qualified greater Minnesota small business, request
2.17additional information from the business, or reject the application for certification. If
2.18the commissioner requests additional information from the business, the commissioner
2.19must either certify the business or reject the application within 30 days of receiving the
2.20additional information. If the commissioner neither certifies the business nor rejects
2.21the application within 30 days of receiving the original application or within 30 days of
2.22receiving the additional information requested, whichever is later, then the application is
2.23deemed rejected, and the commissioner must refund the $150 application fee. A business
2.24that applies for certification and is rejected may reapply.
2.25(c) To receive certification as a qualified small business, a business must satisfy
2.26all of the following conditions:
2.27(1) the business has its headquarters in Minnesota;
2.28(2) at least: (i) 51 percent of the business's employees are employed in Minnesota,
2.29and; (ii) 51 percent of the business's total payroll is paid or incurred in the state; and (iii)
2.3051 percent of the total value of all contractual agreements to which the business is a party
2.31in connection with its primary business activity is for services performed under contract in
2.32Minnesota, unless the business obtains a waiver under paragraph (i);
2.33(3) the business is engaged in, or is committed to engage in, innovation in Minnesota
2.34in one of the following as its primary business activity:
3.1(i) using proprietary technology to add value to a product, process, or service in a
3.2qualified high-technology field;
3.3(ii) researching or developing a proprietary product, process, or service in a qualified
3.4high-technology field;
3.5(iii) researching or developing a proprietary product, process, or service in the fields
3.6of agriculture, tourism, forestry, mining, manufacturing, or transportation; or
3.7(iv) researching, developing, or producing a new proprietary technology for use in
3.8the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
3.9(4) other than the activities specifically listed in clause (3), the business is not
3.10engaged in real estate development, insurance, banking, lending, lobbying, political
3.11consulting, information technology consulting, wholesale or retail trade, leisure,
3.12hospitality, transportation, construction, ethanol production from corn, or professional
3.13services provided by attorneys, accountants, business consultants, physicians, or health
3.14care consultants;
3.15(5) the business has fewer than 25 employees;
3.16(6) the business must pay its employees annual wages of at least 175 percent of the
3.17federal poverty guideline for the year for a family of four and must pay its interns annual
3.18wages of at least 175 percent of the federal minimum wage used for federally covered
3.19employers, except that this requirement must be reduced proportionately for employees
3.20and interns who work less than full-time, and does not apply to an executive, officer, or
3.21member of the board of the business, or to any employee who owns, controls, or holds
3.22power to vote more than 20 percent of the outstanding securities of the business;
3.23(7) the business has (i) not been in operation for more than ten years, or (ii) not
3.24been in operation for more than 20 years if the business is engaged in the research,
3.25development, or production of medical devices or pharmaceuticals for which United
3.26States Food and Drug Administration approval is required for use in the treatment or
3.27diagnosis of a disease or condition;
3.28(8) the business has not previously received private equity investments of more
3.29than $4,000,000;
3.30    (9) the business is not an entity disqualified under section 80A.50, paragraph (b),
3.31clause (3); and
3.32(10) the business has not issued securities that are traded on a public exchange.
3.33(d) In applying the limit under paragraph (c), clause (5), the employees in all members
3.34of the unitary business, as defined in section 290.17, subdivision 4, must be included.
3.35(e) In order for a qualified investment in a business to be eligible for tax credits:
4.1(1) the business must have applied for and received certification for the calendar
4.2year in which the investment was made prior to the date on which the qualified investment
4.3was made;
4.4(2) the business must not have issued securities that are traded on a public exchange;
4.5(3) the business must not issue securities that are traded on a public exchange within
4.6180 days after the date on which the qualified investment was made; and
4.7(4) the business must not have a liquidation event within 180 days after the date on
4.8which the qualified investment was made.
4.9(f) The commissioner must maintain a list of qualified small businesses and qualified
4.10greater Minnesota businesses certified under this subdivision for the calendar year and
4.11make the list accessible to the public on the department's Web site.
4.12(g) For purposes of this subdivision, the following terms have the meanings given:
4.13(1) "qualified high-technology field" includes aerospace, agricultural processing,
4.14renewable energy, energy efficiency and conservation, environmental engineering, food
4.15technology, cellulosic ethanol, information technology, materials science technology,
4.16nanotechnology, telecommunications, biotechnology, medical device products,
4.17pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields;
4.18(2) "proprietary technology" means the technical innovations that are unique and
4.19legally owned or licensed by a business and includes, without limitation, those innovations
4.20that are patented, patent pending, a subject of trade secrets, or copyrighted; and
4.21(3) "greater Minnesota" means the area of Minnesota located outside of the
4.22metropolitan area as defined in section 473.121, subdivision 2.
4.23(h) To receive certification as a qualified greater Minnesota business, a business must
4.24satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:
4.25(1) the business has its headquarters in greater Minnesota; and
4.26(2) at least: (i) 51 percent of the business's employees are employed in greater
4.27Minnesota, and; (ii) 51 percent of the business's total payroll is paid or incurred in greater
4.28Minnesota; and (iii) 51 percent of the total value of all contractual agreements to which
4.29the business is a party in connection with its primary business activity is for services
4.30performed under contract in greater Minnesota, unless the business obtains a waiver
4.31under paragraph (i).
4.32(i) The commissioner must exempt a business from the requirement under paragraph
4.33(c), clause (2), item (iii), if the business certifies to the commissioner that the services
4.34required under a contract in connection with the primary business activity cannot be
4.35performed in Minnesota if the business otherwise qualifies as a qualified small business,
4.36or in greater Minnesota if the business otherwise qualifies as a qualified greater Minnesota
5.1business. The business must submit the certification required under this paragraph every
5.2six months from the month the exemption was granted. The exemption allowed under this
5.3paragraph must be submitted in a form and manner prescribed by the commissioner.
5.4EFFECTIVE DATE.This section is effective for taxable years beginning after
5.5December 31, 2015.

5.6    Sec. 2. [270C.22] TAX TIME SAVINGS GRANT PROGRAM.
5.7    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
5.8have the meanings given.
5.9(b) "Financial capability services" means any of the following:
5.10(1) assistance with opening a savings or transactional account that meets the Federal
5.11Deposit Insurance Corporation's model safe accounts template standards;
5.12(2) assistance with depositing all or part of a tax refund into a savings or transactional
5.13account;
5.14(3) assistance with obtaining and reviewing a consumer report or credit score, as
5.15those terms are defined in United States Code, title 15, section 1681a;
5.16(4) assistance with obtaining and reviewing a banking history report;
5.17(5) financial coaching, or referral to financial coaching services, as provided in
5.18section 256E.35, subdivision 4a;
5.19(6) National Foundation for Credit Counseling certified consumer credit and debt
5.20counseling or referral to these services;
5.21(7) enrollment in a matched or incentivized savings program, including the provision
5.22of matching or incentive funds;
5.23(8) assistance with purchasing federal retirement savings bonds, as described in
5.24Code of Federal Regulations, title 31, part 347, or referral to a certified financial planner,
5.25registered investment adviser, licensed insurance producer or agent, or a registered
5.26securities broker-dealer representative for private sector retirement options; or
5.27(9) assistance with purchasing a Series I United States Savings Bond with all or
5.28part of a tax refund.
5.29(c) "Transactional account" means a traditional demand deposit account or a general
5.30purpose reloadable prepaid card offered by a bank or credit union.
5.31(d) "TCE" means the Tax Counseling for the Elderly program established by the
5.32Internal Revenue Service.
5.33(e) "VITA" means the Volunteer Income Tax Assistance program established by the
5.34Internal Revenue Service.
6.1    Subd. 2. Creation. The commissioner of revenue shall establish a tax time
6.2savings grant program to make grants to one or more nonprofit organizations to fund the
6.3integration of financial capability services into the delivery of taxpayer assistance services
6.4funded by grants under section 270C.21.
6.5    Subd. 3. Qualified applicant. To be eligible to receive a grant under the tax time
6.6savings grant program, an applicant must:
6.7(1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered
6.8with the Internal Revenue Service as part of either the VITA or TCE programs; and
6.9(2) commit to dedicate at least one staff or volunteer position to coordinate financial
6.10capability services at a VITA or TCE program site and to offer VITA or TCE program
6.11participants free assistance with the initiation through completion of:
6.12(i) opening a savings and a transactional account that meet the Federal Deposit
6.13Insurance Corporation's model safe accounts template standards;
6.14(ii) depositing all or part of a tax refund into a savings or transactional account; and
6.15(iii) purchasing a Series I United States Savings Bond with all or part of a tax refund.
6.16    Subd. 4. Conflict of interest. (a) No applicant may receive direct compensation
6.17from a bank, credit union, other financial services provider, or vendor in exchange for the
6.18applicant offering to program participants the products or services of that bank, credit
6.19union, other financial services provider, or vendor.
6.20(b) No applicant may receive funding from a bank, credit union, other financial
6.21services provider, or vendor that is contingent on the applicant offering products or
6.22services of that bank, credit union, other financial services provider, or vendor to program
6.23participants.
6.24(c) An applicant may receive funding from a bank, credit union, other financial
6.25services provider, or vendor that is not in exchange for or contingent upon the applicant
6.26offering products or services of that bank, credit union, other financial services provider,
6.27or vendor to program participants.
6.28    Subd. 5. Permitted use of grant funds. (a) A grant recipient may use grant funds
6.29to dedicate a staff or volunteer position to coordinate financial capability services at a
6.30VITA or TCE site and to offer VITA or TCE program participants free assistance with the
6.31initiation through completion of:
6.32(1) opening a savings and a transactional account that meet the Federal Deposit
6.33Insurance Corporation's model safe accounts template standards;
6.34(2) depositing all or part of a tax refund into a savings or transactional account; and
6.35(3) purchasing a Series I United States Savings Bond with all or part of a tax refund.
7.1(b) A grant recipient who offers all of the financial capability services enumerated
7.2in paragraph (a) may also use grant funds to provide one or more additional financial
7.3capability services to VITA or TCE program participants at no cost to the participant.

7.4    Sec. 3. Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is
7.5amended to read:
7.6    Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal
7.7Revenue Code" means the Internal Revenue Code of 1986, as amended through December
7.831, 2014 2015.
7.9EFFECTIVE DATE.This section is effective the day following final enactment.

7.10    Sec. 4. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is
7.11amended to read:
7.12    Subd. 19. Net income. The term "net income" means the federal taxable income,
7.13as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
7.14date named in this subdivision, incorporating the federal effective dates of changes to the
7.15Internal Revenue Code and any elections made by the taxpayer in accordance with the
7.16Internal Revenue Code in determining federal taxable income for federal income tax
7.17purposes, and with the modifications provided in subdivisions 19a to 19f.
7.18    In the case of a regulated investment company or a fund thereof, as defined in section
7.19851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
7.20company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
7.21except that:
7.22    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
7.23Revenue Code does not apply;
7.24    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
7.25Revenue Code must be applied by allowing a deduction for capital gain dividends and
7.26exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
7.27Revenue Code; and
7.28    (3) the deduction for dividends paid must also be applied in the amount of any
7.29undistributed capital gains which the regulated investment company elects to have treated
7.30as provided in section 852(b)(3)(D) of the Internal Revenue Code.
7.31    The net income of a real estate investment trust as defined and limited by section
7.32856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
7.33taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
8.1    The net income of a designated settlement fund as defined in section 468B(d) of
8.2the Internal Revenue Code means the gross income as defined in section 468B(b) of the
8.3Internal Revenue Code.
8.4    The Internal Revenue Code of 1986, as amended through December 31, 2014 2015,
8.5shall be in effect for taxable years beginning after December 31, 1996.
8.6    Except as otherwise provided, references to the Internal Revenue Code in
8.7subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
8.8the applicable year.
8.9EFFECTIVE DATE.This section is effective the day following final enactment,
8.10except the changes incorporated by federal changes are effective retroactively at the same
8.11time as the changes were effective for federal purposes.

8.12    Sec. 5. Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read:
8.13    Subd. 19a. Additions to federal taxable income. For individuals, estates, and
8.14trusts, there shall be added to federal taxable income:
8.15    (1)(i) interest income on obligations of any state other than Minnesota or a political
8.16or governmental subdivision, municipality, or governmental agency or instrumentality
8.17of any state other than Minnesota exempt from federal income taxes under the Internal
8.18Revenue Code or any other federal statute; and
8.19    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
8.20Code, except:
8.21(A) the portion of the exempt-interest dividends exempt from state taxation under
8.22the laws of the United States; and
8.23(B) the portion of the exempt-interest dividends derived from interest income
8.24on obligations of the state of Minnesota or its political or governmental subdivisions,
8.25municipalities, governmental agencies or instrumentalities, but only if the portion of the
8.26exempt-interest dividends from such Minnesota sources paid to all shareholders represents
8.2795 percent or more of the exempt-interest dividends, including any dividends exempt
8.28under subitem (A), that are paid by the regulated investment company as defined in section
8.29851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
8.30defined in section 851(g) of the Internal Revenue Code, making the payment; and
8.31    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
8.32government described in section 7871(c) of the Internal Revenue Code shall be treated as
8.33interest income on obligations of the state in which the tribe is located;
8.34    (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or
8.35accrued within the taxable year under this chapter and the amount of taxes based on net
9.1income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or
9.2to any province or territory of Canada, to the extent allowed as a deduction under section
9.363(d) of the Internal Revenue Code, but the addition may not be more than the amount
9.4by which the state itemized deduction exceeds the amount of the standard deduction as
9.5defined in section 63(c) of the Internal Revenue Code, minus any addition that would have
9.6been required under clause (17) if the taxpayer had claimed the standard deduction. For
9.7the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are
9.8the last itemized deductions disallowed under clause (15);
9.9    (3) the capital gain amount of a lump-sum distribution to which the special tax under
9.10section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
9.11    (4) the amount of income taxes paid or accrued within the taxable year under this
9.12chapter and taxes based on net income paid to any other state or any province or territory
9.13of Canada, to the extent allowed as a deduction in determining federal adjusted gross
9.14income. For the purpose of this paragraph, income taxes do not include the taxes imposed
9.15by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;
9.16    (5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
9.17other than expenses or interest used in computing net interest income for the subtraction
9.18allowed under subdivision 19b, clause (1);
9.19    (6) the amount of a partner's pro rata share of net income which does not flow
9.20through to the partner because the partnership elected to pay the tax on the income under
9.21section 6242(a)(2) of the Internal Revenue Code;
9.22    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the
9.23Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
9.24in the taxable year generates a deduction for depreciation under section 168(k) and the
9.25activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
9.26the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
9.27limited to excess of the depreciation claimed by the activity under section 168(k) over the
9.28amount of the loss from the activity that is not allowed in the taxable year. In succeeding
9.29taxable years when the losses not allowed in the taxable year are allowed, the depreciation
9.30under section 168(k) is allowed;
9.31    (8) 80 percent of the amount by which the deduction allowed by section 179 of the
9.32Internal Revenue Code exceeds the deduction allowable by under the dollar limits of
9.33section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;
9.34    (9) to the extent deducted in computing federal taxable income, the amount of the
9.35deduction allowable under section 199 of the Internal Revenue Code;
9.36    (10) the amount of expenses disallowed under section 290.10, subdivision 2;
10.1    (11) for taxable years beginning before January 1, 2010, the amount deducted for
10.2qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
10.3the extent deducted from gross income;
10.4    (12) for taxable years beginning before January 1, 2010, the amount deducted for
10.5certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
10.6of the Internal Revenue Code, to the extent deducted from gross income;
10.7(13) discharge of indebtedness income resulting from reacquisition of business
10.8indebtedness and deferred under section 108(i) of the Internal Revenue Code;
10.9(14) changes to federal taxable income attributable to a net operating loss that the
10.10taxpayer elected to carry back for more than two years for federal purposes but for which
10.11the losses can be carried back for only two years under section 290.095, subdivision
10.1211 , paragraph (c);
10.13(15) the amount of disallowed itemized deductions, but the amount of disallowed
10.14itemized deductions plus the addition required under clause (2) may not be more than the
10.15amount by which the itemized deductions as allowed under section 63(d) of the Internal
10.16Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of
10.17the Internal Revenue Code, and reduced by any addition that would have been required
10.18under clause (17) if the taxpayer had claimed the standard deduction:
10.19(i) the amount of disallowed itemized deductions is equal to the lesser of:
10.20(A) three percent of the excess of the taxpayer's federal adjusted gross income
10.21over the applicable amount; or
10.22(B) 80 percent of the amount of the itemized deductions otherwise allowable to the
10.23taxpayer under the Internal Revenue Code for the taxable year;
10.24(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a
10.25married individual filing a separate return. Each dollar amount shall be increased by
10.26an amount equal to:
10.27(A) such dollar amount, multiplied by
10.28(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
10.29Revenue Code for the calendar year in which the taxable year begins, by substituting
10.30"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;
10.31(iii) the term "itemized deductions" does not include:
10.32(A) the deduction for medical expenses under section 213 of the Internal Revenue
10.33Code;
10.34(B) any deduction for investment interest as defined in section 163(d) of the Internal
10.35Revenue Code; and
11.1(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or
11.2theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue
11.3Code or for losses described in section 165(d) of the Internal Revenue Code;
11.4(16) the amount of disallowed personal exemptions for taxpayers with federal
11.5adjusted gross income over the threshold amount:
11.6(i) the disallowed personal exemption amount is equal to the number of personal
11.7exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied
11.8by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the
11.9Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal
11.10Revenue Code, and by the applicable percentage;
11.11(ii) "applicable percentage" means two percentage points for each $2,500 (or
11.12fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
11.13year exceeds the threshold amount. In the case of a married individual filing a separate
11.14return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
11.15no event shall the applicable percentage exceed 100 percent;
11.16(iii) the term "threshold amount" means:
11.17(A) $150,000 in the case of a joint return or a surviving spouse;
11.18(B) $125,000 in the case of a head of a household;
11.19(C) $100,000 in the case of an individual who is not married and who is not a
11.20surviving spouse or head of a household; and
11.21(D) $75,000 in the case of a married individual filing a separate return; and
11.22(iv) the thresholds shall be increased by an amount equal to:
11.23(A) such dollar amount, multiplied by
11.24(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
11.25Revenue Code for the calendar year in which the taxable year begins, by substituting
11.26"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and
11.27(17) to the extent deducted in the computation of federal taxable income, for taxable
11.28years beginning after December 31, 2010, and before January 1, 2014, the difference
11.29between the standard deduction allowed under section 63(c) of the Internal Revenue Code
11.30and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue
11.31Code as amended through December 1, 2010; and
11.32(18) to the extent deducted in the computation of federal taxable income, the amount
11.33of charitable contributions under section 170 of the Internal Revenue Code used to claim
11.34the credit under section 290.06, subdivision 37.
11.35EFFECTIVE DATE.The change to clause (8) is effective the day following final
11.36enactment, except the changes incorporated by federal changes are effective retroactively
12.1at the same time as the changes were effective for federal purposes. Clause (18) is
12.2effective for taxable years beginning after December 31, 2015.

12.3    Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:
12.4    Subd. 19b. Subtractions from federal taxable income. For individuals, estates,
12.5and trusts, there shall be subtracted from federal taxable income:
12.6    (1) net interest income on obligations of any authority, commission, or
12.7instrumentality of the United States to the extent includable in taxable income for federal
12.8income tax purposes but exempt from state income tax under the laws of the United States;
12.9    (2) if included in federal taxable income, the amount of any overpayment of income
12.10tax to Minnesota or to any other state, for any previous taxable year, whether the amount
12.11is received as a refund or as a credit to another taxable year's income tax liability;
12.12    (3) the amount paid to others, less the amount used to claim the credit allowed under
12.13section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
12.14to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
12.15transportation of each qualifying child in attending an elementary or secondary school
12.16situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
12.17resident of this state may legally fulfill the state's compulsory attendance laws, which
12.18is not operated for profit, and which adheres to the provisions of the Civil Rights Act
12.19of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
12.20tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
12.21"textbooks" includes books and other instructional materials and equipment purchased
12.22or leased for use in elementary and secondary schools in teaching only those subjects
12.23legally and commonly taught in public elementary and secondary schools in this state.
12.24Equipment expenses qualifying for deduction includes expenses as defined and limited in
12.25section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
12.26books and materials used in the teaching of religious tenets, doctrines, or worship, the
12.27purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
12.28or materials for, or transportation to, extracurricular activities including sporting events,
12.29musical or dramatic events, speech activities, driver's education, or similar programs. No
12.30deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
12.31the qualifying child's vehicle to provide such transportation for a qualifying child. For
12.32purposes of the subtraction provided by this clause, "qualifying child" has the meaning
12.33given in section 32(c)(3) of the Internal Revenue Code;
12.34    (4) income as provided under section 290.0802;
13.1    (5) to the extent included in federal adjusted gross income, income realized on
13.2disposition of property exempt from tax under section 290.491;
13.3    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
13.4of the Internal Revenue Code in determining federal taxable income by an individual
13.5who does not itemize deductions for federal income tax purposes for the taxable year, an
13.6amount equal to 50 percent of the excess of charitable contributions over $500 allowable
13.7as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
13.8under the provisions of Public Law 109-1 and Public Law 111-126;
13.9    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
13.10qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
13.11of subnational foreign taxes for the taxable year, but not to exceed the total subnational
13.12foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
13.13"federal foreign tax credit" means the credit allowed under section 27 of the Internal
13.14Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
13.15under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
13.16the extent they exceed the federal foreign tax credit;
13.17    (8) in each of the five tax years immediately following the tax year in which an
13.18addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
13.19shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
13.20delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
13.21of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
13.22clause (12), in the case of a shareholder of an S corporation, minus the positive value of
13.23any net operating loss under section 172 of the Internal Revenue Code generated for the
13.24tax year of the addition. The resulting delayed depreciation cannot be less than zero;
13.25    (9) job opportunity building zone income as provided under section 469.316;
13.26    (10) to the extent included in federal taxable income, the amount of compensation
13.27paid to members of the Minnesota National Guard or other reserve components of the
13.28United States military for active service, including compensation for services performed
13.29under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
13.30service" means (i) state active service as defined in section 190.05, subdivision 5a, clause
13.31(1); or (ii) federally funded state active service as defined in section 190.05, subdivision
13.325b , and "active service" includes service performed in accordance with section 190.08,
13.33subdivision 3 ;
13.34    (11) to the extent included in federal taxable income, the amount of compensation
13.35paid to Minnesota residents who are members of the armed forces of the United States
14.1or United Nations for active duty performed under United States Code, title 10; or the
14.2authority of the United Nations;
14.3    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
14.4qualified donor's donation, while living, of one or more of the qualified donor's organs
14.5to another person for human organ transplantation. For purposes of this clause, "organ"
14.6means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
14.7"human organ transplantation" means the medical procedure by which transfer of a human
14.8organ is made from the body of one person to the body of another person; "qualified
14.9expenses" means unreimbursed expenses for both the individual and the qualified donor
14.10for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
14.11may be subtracted under this clause only once; and "qualified donor" means the individual
14.12or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
14.13individual may claim the subtraction in this clause for each instance of organ donation for
14.14transplantation during the taxable year in which the qualified expenses occur;
14.15    (13) in each of the five tax years immediately following the tax year in which an
14.16addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a
14.17shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
14.18addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the
14.19case of a shareholder of a corporation that is an S corporation, minus the positive value of
14.20any net operating loss under section 172 of the Internal Revenue Code generated for the
14.21tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
14.22subtraction is not allowed under this clause;
14.23    (14) to the extent included in the federal taxable income of a nonresident of
14.24Minnesota, compensation paid to a service member as defined in United States Code, title
14.2510, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
14.26Act, Public Law 108-189, section 101(2);
14.27    (15) to the extent included in federal taxable income, the amount of national service
14.28educational awards received from the National Service Trust under United States Code,
14.29title 42, sections 12601 to 12604, for service in an approved Americorps National Service
14.30program;
14.31(16) to the extent included in federal taxable income, discharge of indebtedness
14.32income resulting from reacquisition of business indebtedness included in federal taxable
14.33income under section 108(i) of the Internal Revenue Code. This subtraction applies only
14.34to the extent that the income was included in net income in a prior year as a result of the
14.35addition under subdivision 19a, clause (13);
15.1(17) the amount of the net operating loss allowed under section 290.095, subdivision
15.211 , paragraph (c);
15.3(18) the amount of expenses not allowed for federal income tax purposes due
15.4to claiming the railroad track maintenance credit under section 45G(a) of the Internal
15.5Revenue Code;
15.6(19) the amount of the limitation on itemized deductions under section 68(b) of
15.7the Internal Revenue Code; and
15.8(20) the amount of the phaseout of personal exemptions under section 151(d) of
15.9the Internal Revenue Code; and.
15.10(21) to the extent included in federal taxable income, the amount of qualified
15.11transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
15.12Revenue Code. The subtraction is limited to the lesser of the amount of qualified
15.13transportation fringe benefits received in excess of the limitations under section
15.14132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
15.15maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
15.16Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
15.17of the Internal Revenue Code.
15.18EFFECTIVE DATE.This section is effective the day following final enactment,
15.19except the changes incorporated by federal changes are effective retroactively at the same
15.20time as the changes were effective for federal purposes.

15.21    Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:
15.22    Subd. 19c. Corporations; additions to federal taxable income. For corporations,
15.23there shall be added to federal taxable income:
15.24    (1) the amount of any deduction taken for federal income tax purposes for income,
15.25excise, or franchise taxes based on net income or related minimum taxes, including but not
15.26limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
15.27another state, a political subdivision of another state, the District of Columbia, or any
15.28foreign country or possession of the United States;
15.29    (2) interest not subject to federal tax upon obligations of: the United States, its
15.30possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
15.31state, any of its political or governmental subdivisions, any of its municipalities, or any
15.32of its governmental agencies or instrumentalities; the District of Columbia; or Indian
15.33tribal governments;
15.34    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
15.35Revenue Code;
16.1    (4) the amount of any net operating loss deduction taken for federal income tax
16.2purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
16.3deduction under section 810 of the Internal Revenue Code;
16.4    (5) the amount of any special deductions taken for federal income tax purposes
16.5under sections 241 to 247 and 965 of the Internal Revenue Code;
16.6    (6) losses from the business of mining, as defined in section 290.05, subdivision 1,
16.7clause (a), that are not subject to Minnesota income tax;
16.8    (7) the amount of any capital losses deducted for federal income tax purposes under
16.9sections 1211 and 1212 of the Internal Revenue Code;
16.10    (8) the amount of percentage depletion deducted under sections 611 through 614 and
16.11291 of the Internal Revenue Code;
16.12    (9) for certified pollution control facilities placed in service in a taxable year
16.13beginning before December 31, 1986, and for which amortization deductions were elected
16.14under section 169 of the Internal Revenue Code of 1954, as amended through December
16.1531, 1985, the amount of the amortization deduction allowed in computing federal taxable
16.16income for those facilities;
16.17    (10) the amount of a partner's pro rata share of net income which does not flow
16.18through to the partner because the partnership elected to pay the tax on the income under
16.19section 6242(a)(2) of the Internal Revenue Code;
16.20    (11) any increase in subpart F income, as defined in section 952(a) of the Internal
16.21Revenue Code, for the taxable year when subpart F income is calculated without regard to
16.22the provisions of Division C, title III, section 303(b) of Public Law 110-343;
16.23    (12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
16.24and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
16.25has an activity that in the taxable year generates a deduction for depreciation under
16.26section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
16.27that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
16.28under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
16.29depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
16.30amount of the loss from the activity that is not allowed in the taxable year. In succeeding
16.31taxable years when the losses not allowed in the taxable year are allowed, the depreciation
16.32under section 168(k)(1)(A) and (k)(4)(A) is allowed;
16.33    (13) 80 percent of the amount by which the deduction allowed by section 179 of
16.34the Internal Revenue Code exceeds the deduction allowable by under the dollar limits of
16.35section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;
17.1    (14) to the extent deducted in computing federal taxable income, the amount of the
17.2deduction allowable under section 199 of the Internal Revenue Code;
17.3    (15) the amount of expenses disallowed under section 290.10, subdivision 2; and
17.4(16) discharge of indebtedness income resulting from reacquisition of business
17.5indebtedness and deferred under section 108(i) of the Internal Revenue Code; and
17.6(17) to the extent deducted in the computation of federal taxable income, the amount
17.7of charitable contributions under section 170 of the Internal Revenue Code used to claim
17.8the credit under section 290.06, subdivision 37.
17.9EFFECTIVE DATE.The change to clause (13) is effective the day following final
17.10enactment, except the changes incorporated by federal changes are effective retroactively
17.11at the same time as the changes were effective for federal purposes. Clause (17) is
17.12effective for taxable years beginning after December 31, 2015.

17.13    Sec. 8. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is
17.14amended to read:
17.15    Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal
17.16Revenue Code" means the Internal Revenue Code of 1986, as amended through December
17.1731, 2014 2015. Internal Revenue Code also includes any uncodified provision in federal
17.18law that relates to provisions of the Internal Revenue Code that are incorporated into
17.19Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
17.20subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
17.21amended through March 18, 2010.
17.22EFFECTIVE DATE.This section is effective the day following final enactment,
17.23except the changes incorporated by federal changes are effective retroactively at the same
17.24time as the changes were effective for federal purposes.

17.25    Sec. 9. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision
17.26to read:
17.27    Subd. 37. Prepared food donation credit. (a) A qualifying taxpayer is allowed a
17.28credit against the tax imposed by this chapter equal to 20 percent of the taxpayer's eligible
17.29charitable food donation. The credit may not exceed the taxpayer's liability for tax and
17.30may not be carried forward to any other taxable year.
17.31(b) For purposes of this subdivision, the following terms have the meanings given:
17.32(1) "eligible charitable food donation" means a contribution of prepared food
17.33allowable as a charitable deduction for the taxable year under section 170(a) of the Internal
18.1Revenue Code, subject to the limitations of section 170(b) of the Internal Revenue Code,
18.2and determined without regard to whether or not the taxpayer itemizes deductions;
18.3(2) "prepared food" means food that meets all quality and labeling standards
18.4imposed by federal, state, and local laws and regulations even though the food may not
18.5be readily marketable due to appearance, age, freshness, grade, size, surplus, or other
18.6conditions, and includes:
18.7(i) food which is cooked or heated by the qualifying taxpayer;
18.8(ii) two or more ingredients mixed together to be eaten as a single item; and
18.9(iii) any ingredients supplied for ingestion or chewing by humans that are consumed
18.10for their taste or nutritional value;
18.11(3) "qualifying taxpayer" means any restaurant making a charitable food donation
18.12in Minnesota; and
18.13(4) "restaurant" means any facility:
18.14(i) which is operated for profit;
18.15(ii) where the usual and customary business is the serving of meals to consumers;
18.16(iii) which has a kitchen within the facility; and
18.17(iv) which receives at least 70 percent of its gross receipts from the sale of prepared
18.18food.
18.19(c) For a nonresident or part-year resident, the credit must be allocated based on the
18.20percentage calculated under subdivision 2c, paragraph (e).
18.21(d) Credits allowed to a partnership, a limited liability company taxed as a
18.22partnership, an S corporation, or multiple owners of property are passed through to the
18.23partners, members, shareholders, or owners, respectively, pro rata to each partner, member,
18.24shareholder, or owner based on their share of the entity's income for the taxable year.
18.25EFFECTIVE DATE.This section is effective for taxable years beginning after
18.26December 31, 2015.

18.27    Sec. 10. Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1,
18.28is amended to read:
18.29    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is
18.30allowed a credit against the tax imposed by this chapter equal to a percentage of earned
18.31income. To receive a credit, a taxpayer must be eligible for a credit under section 32
18.32of the Internal Revenue Code without regard to the earned income or adjusted gross
18.33income limitations.
18.34(b) For individuals with no qualifying children, the credit equals 2.10 3.0 percent
18.35of the first $6,180 $6,500 of earned income. The credit is reduced by 2.01 3.0 percent
19.1of earned income or adjusted gross income, whichever is greater, in excess of $8,130
19.2$12,000, but in no case is the credit less than zero. For individuals qualifying under
19.3this paragraph, the taxpayer must have been at least 21 years of age, but under 65 years
19.4of age, at the end of the tax year.
19.5(c) For individuals with one qualifying child, the credit equals 9.35 12.71 percent
19.6of the first $11,120 $8,350 of earned income. The credit is reduced by 6.02 5.2 percent
19.7of earned income or adjusted gross income, whichever is greater, in excess of $21,190
19.8$21,620, but in no case is the credit less than zero.
19.9(d) For individuals with two or more qualifying children, the credit equals 11 14.94
19.10percent of the first $18,240 $13,700 of earned income. The credit is reduced by 10.82
19.119.2 percent of earned income or adjusted gross income, whichever is greater, in excess of
19.12$25,130 $25,640, but in no case is the credit less than zero.
19.13(e) For a part-year resident, the credit must be allocated based on the percentage
19.14calculated under section 290.06, subdivision 2c, paragraph (e).
19.15(f) For a person who was a resident for the entire tax year and has earned income
19.16not subject to tax under this chapter, including income excluded under section 290.01,
19.17subdivision 19b , clause (9), the credit must be allocated based on the ratio of federal
19.18adjusted gross income reduced by the earned income not subject to tax under this chapter
19.19over federal adjusted gross income. For purposes of this paragraph, the subtractions
19.20for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not
19.21considered "earned income not subject to tax under this chapter."
19.22For the purposes of this paragraph, the exclusion of combat pay under section 112
19.23of the Internal Revenue Code is not considered "earned income not subject to tax under
19.24this chapter."
19.25(g) For tax years beginning after December 31, 2007, and before December 31,
19.262010, and for tax years beginning after December 31, 2017, the $8,130 in paragraph (b),
19.27the $21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for
19.28inflation under subdivision 7, are each increased by $3,000 for married taxpayers filing joint
19.29returns. For tax years beginning after December 31, 2008, the commissioner shall annually
19.30adjust the $3,000 by the percentage determined pursuant to the provisions of section 1(f)
19.31of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall be
19.32substituted for the word "1992." For 2009, the commissioner shall then determine the
19.33percent change from the 12 months ending on August 31, 2007, to the 12 months ending on
19.34August 31, 2008, and in each subsequent year, from the 12 months ending on August 31,
19.352007, to the 12 months ending on August 31 of the year preceding the taxable year. The
19.36earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
20.1amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
20.2commissioner under this subdivision is not a rule under the Administrative Procedure Act.
20.3(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014,
20.4the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
20.5(d), after being adjusted for inflation under subdivision 7, are increased by $5,340 for
20.6married taxpayers filing joint returns; and (2) For tax years beginning after December 31,
20.72013 2015, and before January 1, 2018, the $8,130 $12,000 in paragraph (b), the $21,190
20.8$21,620 in paragraph (c), and the $25,130 $25,640 in paragraph (d), after being adjusted for
20.9inflation under subdivision 7, are each increased by $5,000 $5,550 for married taxpayers
20.10filing joint returns. For tax years beginning after December 31, 2010, and before January
20.111, 2012, and for tax years beginning after December 31, 2013 2016, and before January
20.121, 2018, the commissioner shall annually adjust the $5,000 $5,550 by the percentage
20.13determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
20.14that in section 1(f)(3)(B), the word "2008" "2015" shall be substituted for the word "1992."
20.15For 2011 2017, the commissioner shall then determine the percent change from the 12
20.16months ending on August 31, 2008 2015, to the 12 months ending on August 31, 2010
20.172016, and in each subsequent year, from the 12 months ending on August 31, 2008 2015,
20.18to the 12 months ending on August 31 of the year preceding the taxable year. The earned
20.19income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
20.20amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
20.21commissioner under this subdivision is not a rule under the Administrative Procedure Act.
20.22(i) The commissioner shall construct tables showing the amount of the credit at
20.23various income levels and make them available to taxpayers. The tables shall follow
20.24the schedule contained in this subdivision, except that the commissioner may graduate
20.25the transition between income brackets.
20.26EFFECTIVE DATE.This section is effective for tax years beginning after
20.27December 31, 2015.

20.28    Sec. 11. [290.0693] CITIZENSHIP CREDIT.
20.29    Subdivision 1. Credit allowed. An individual is allowed a credit against the tax
20.30imposed by this chapter equal to qualified citizenship expenses paid for a qualified citizen
20.31applicant. The maximum credit per qualified citizen applicant is $700.
20.32    Subd. 2. Limitations on credit. (a) The credit is not allowed if the sum of an
20.33individual's income and the individual's spouse's income exceeds 200 percent of the
20.34federal poverty guideline.
21.1(b) For an individual who is not a Minnesota resident for the entire year, the credit
21.2must be apportioned using the percentage calculated in section 290.06, subdivision 2c,
21.3paragraph (e).
21.4(c) The credit is not allowed to an individual who is eligible to be claimed as a
21.5dependent.
21.6(d) The credit is not allowed for a qualified citizenship applicant who qualifies for a
21.7federal waiver of qualified citizenship expenses.
21.8    Subd. 3. Definitions. (a) For purposes of this section, the following terms have
21.9the meanings given.
21.10(b) "Dependent" has the meaning given in sections 151 and 152 of the Internal
21.11Revenue Code.
21.12(c) "Federal poverty guideline" means the guideline most recently published in the
21.13Federal Register, adjusted for family size.
21.14(d) "Income" has the meaning given in section 290.067, subdivision 2a.
21.15(e) "Qualified citizenship expenses" means filing fees, including both application and
21.16biometric fingerprint fees, paid to the United States Citizenship and Immigration Services
21.17in connection with an N-400 naturalization application for a qualified citizenship applicant.
21.18(f) "Qualified citizenship applicant" means the individual, the individual's spouse,
21.19or a dependent of the individual.
21.20    Subd. 4. Credit refundable. If the amount of credit that the claimant is eligible to
21.21receive under this section exceeds the claimant's liability for tax under this chapter, the
21.22commissioner of revenue shall refund the excess to the claimant.
21.23    Subd. 5. Appropriation. An amount sufficient to pay the refunds required by this
21.24section is appropriated from the general fund to the commissioner of revenue.
21.25EFFECTIVE DATE.This section is effective for taxable years beginning after
21.26December 31, 2015.

21.27    Sec. 12. [290.0694] CREDIT FOR NAMELESS JOB APPLICATION REVIEW
21.28PROCESS IMPLEMENTATION.
21.29    Subdivision 1. Definitions. (a) For purposes of this section, the following definitions
21.30apply.
21.31(b) "Nameless job application review process" means a system or process that:
21.32(1) removes the name of job applicants prior to review of the applicant's application
21.33or request for interview, whether submitted in writing or online; and
22.1(2) prevents any person reviewing job applications or requests for interview from
22.2knowing the name of the applicant prior to or during review of the applicant's job
22.3application or request for interview.
22.4(c) "Qualified employer" means an employer that maintains a nameless job
22.5application review process registered with the commissioner of human rights under
22.6subdivision 3.
22.7    Subd. 2. Credit allowed. (a) A qualified employer who is required to file a return
22.8under section 289A.08, subdivision 1, 2, or 3, is allowed a credit against the tax due
22.9under this chapter equal to $100 per employee employed in Minnesota, up to $40,000 per
22.10taxable year. The number of employees equals the average number of full-time equivalent
22.11employees employed by the qualified employer in the 12 months immediately preceding
22.12registration with the commissioner of human rights.
22.13(b) For a nonresident or part-year resident, the credit must be allocated based on the
22.14percentage calculated under section 290.06, subdivision 2c, paragraph (e).
22.15    Subd. 3. Credit refundable. (a) If the amount of credit that an individual is
22.16allowed under this section exceeds the individual's tax liability under this chapter, the
22.17commissioner shall refund the excess to the individual.
22.18(b) The total amount of credits allocated in a calendar year must not exceed
22.19$1,000,000. Credits must be processed and issued in the order that complete and accurate
22.20returns are filed by the claimant.
22.21    Subd. 4. Registration requirement. (a) An employer must register with the
22.22commissioner of human rights to become a qualified employer. The registration must be
22.23in a form and manner prescribed by the commissioner of human rights in consultation
22.24with the commissioner of revenue.
22.25(b) The commissioner of human rights must implement procedures to verify the
22.26information in an employer's registration to become a qualified employer and to monitor a
22.27qualified employer's compliance in maintaining a nameless job application review process.
22.28(c) A qualified employer must annually renew its registration with the commissioner
22.29of human rights. An employer that ceases to be a qualified employer at any time during a
22.30taxable year is not allowed the credit under this section.
22.31    Subd. 5. Appropriation. An amount sufficient to pay the refunds required by this
22.32section is appropriated to the commissioner from the general fund.
22.33EFFECTIVE DATE.This section is effective for taxable years beginning after
22.34December 31, 2015.

22.35    Sec. 13. [290.0695] STUDENT LOAN CREDIT.
23.1    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
23.2have the meanings given.
23.3(b) "Education profession" means:
23.4(1) a full-time job in public education; early childhood education, including licensed
23.5or regulated child care, Head Start, and state-funded prekindergarten; school-based library
23.6sciences; and other school-based services; or
23.7(2) a full-time job as a faculty member at a tribal college or university as defined in
23.8section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs
23.9subject areas or areas of shortage, including nurse faculty, foreign language faculty, and
23.10part-time faculty at community colleges, as determined by the United States Secretary
23.11of Education.
23.12(c) "Eligible individual" means an individual who has one or more qualified
23.13education loans related to an undergraduate or graduate degree program at a postsecondary
23.14educational institution.
23.15(d) "Eligible loan payments" means the amount the eligible individual paid during
23.16the taxable year to pay principal and interest on qualified education loans.
23.17(e) "Adjusted gross income" means federal adjusted gross income as defined in
23.18section 62 of the Internal Revenue Code.
23.19(f) "Postsecondary educational institution" means a postsecondary institution eligible
23.20for state student aid under section 136A.103 or, if the institution is not located in this state,
23.21a postsecondary institution participating in the federal Pell Grant program under Title IV
23.22of the Higher Education Act of 1965, Public Law 89-329, as amended.
23.23(g) "Public service job" means a full-time job in emergency management;
23.24government, excluding time served as a member of Congress; military service; public
23.25safety; law enforcement; public health, including nurses, nurse practitioners, nurses
23.26in a clinical setting, and full-time professionals engaged in health care practitioner
23.27occupations and health care support occupations, as such terms are defined by the Bureau
23.28of Labor Statistics; social work in a public child or family service agency; public interest
23.29law services including prosecution or public defense or legal advocacy on behalf of
23.30low-income communities at a nonprofit organization; public service for individuals with
23.31disabilities or public service for the elderly; public library sciences; or at an organization
23.32that is described in section 501(c)(3) of the Internal Revenue Code and exempt from
23.33taxation under section 501(a) of the Internal Revenue Code.
23.34(h) "Qualified education loan" has the meaning given in section 221 of the Internal
23.35Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual
23.36or the eligible individual's spouse.
24.1    Subd. 2. Credit allowed. (a) An eligible individual or the parent of an eligible
24.2individual is allowed a credit against the tax due under this chapter. The credit equals a
24.3percentage of eligible loan payments in excess of ten percent of adjusted gross income,
24.4up to $1,000, as follows:
24.5(1) for eligible individuals, 50 percent;
24.6(2) for eligible individuals in a public service job, 65 percent; and
24.7(3) for eligible individuals in an education profession, 75 percent.
24.8(b) The credit for the parent of an eligible individual, eligible individual in a public
24.9service job, or eligible individual in an education profession equals the amount of eligible
24.10loan payments made by the parent of the eligible individual, eligible individual in a public
24.11service job, or eligible individual in an education profession during the taxable year, up to
24.12$1,000, less the amount of credit allowed to the eligible individual, eligible individual in a
24.13public service job, or eligible individual in an education profession under paragraph (a).
24.14(c) For a nonresident or part-year resident, the credit must be allocated based on the
24.15percentage calculated under section 290.06, subdivision 2c, paragraph (e).
24.16(d) An eligible individual or the parent of an eligible individual may receive the
24.17credit under this section without regard to the individual's eligibility for the public service
24.18loan forgiveness program under United States Code, title 20, section 1087e(m).
24.19    Subd. 3. Credit refundable. If the amount of credit that an individual who is a
24.20resident or part-year resident of Minnesota is eligible to receive under this section exceeds
24.21the individual's tax liability under this chapter, the commissioner shall refund the excess
24.22to the individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's
24.23liability for tax under this chapter.
24.24    Subd. 4. Appropriation. An amount sufficient to pay the refunds required by this
24.25section is appropriated to the commissioner from the general fund.
24.26EFFECTIVE DATE.This section is effective for taxable years beginning after
24.27December 31, 2015.

24.28    Sec. 14. [290.0696] READING CREDIT.
24.29    Subdivision 1. Reading credit. (a) A taxpayer is allowed a credit, up to $3,000,
24.30against the tax imposed by this chapter. The credit amount equals 75 percent of the amount
24.31of eligible expenses paid by a taxpayer who is a parent or guardian of a qualifying child:
24.32(1) who has been evaluated for determination of a specific learning disability under
24.33Minnesota Rules, part 3525.1341, or by a licensed psychologist; and
25.1(2) for whom the evaluation indicated a determination of dyslexia, a specific
25.2learning disability, or a deficit in basic reading skills, reading comprehension, reading
25.3fluency, or spelling.
25.4(b) For purposes of this subdivision, the following definitions apply:
25.5(1) "eligible expenses" means actual expenses, less the amount of expenses used to
25.6claim the credit under section 290.0674, subdivision 1, paid by the taxpayer for tutoring,
25.7instruction, treatment by an instructor, or an evaluation under paragraph (a), clause (1),
25.8and not compensated by insurance, pretax account, or otherwise, for purposes of meeting
25.9the academic standards required under section 120B.021;
25.10(2) "instructor" means a person qualifying under section 120A.22, subdivision 10,
25.11clauses (1) to (5), who is not a lineal ancestor or sibling of the qualifying child;
25.12(3) "treatment" means instruction that:
25.13(i) teaches language decoding skills in a systematic manner;
25.14(ii) uses recognized diagnostic assessments to determine what intervention would be
25.15most appropriate for individual students; and
25.16(iii) employs a research-based method; and
25.17(4) "qualifying child" has the meaning given in section 32(c)(3) of the Internal
25.18Revenue Code.
25.19(c) A taxpayer claiming the credit under this subdivision must provide documentation
25.20of eligibility for the credit in a form and manner prescribed by the commissioner in
25.21consultation with the commissioner of education. The documentation under this paragraph
25.22must not disclose any information other than that necessary to prove eligibility for the
25.23credit allowed under this subdivision.
25.24(d) For a nonresident or part-year resident, the credit determined under this section
25.25must be allocated based on the percentage calculated under section 290.06, subdivision
25.262c, paragraph (e).
25.27(e) The amount used to claim the credit under this section must be excluded from
25.28any amount subtracted from federal taxable income under section 290.01, subdivision
25.2919b, clause (3).
25.30    Subd. 2. Assignment of refunds. The provisions of section 290.0679, except
25.31for subdivision 1, paragraphs (a) and (b), apply to the assignment of refunds authorized
25.32under this section. For purposes of assignment of refund under this section, "qualifying
25.33taxpayer" means a taxpayer qualified to receive a credit under this section. In no case shall
25.34any condition for assignment require disclosure of the specific findings of an evaluation
25.35for a specific learning disability.
26.1    Subd. 3. Credit refundable. If the amount of total credits that the claimant is
26.2eligible to receive under this section exceeds the claimant's tax liability under this chapter,
26.3the commissioner shall refund the excess to the claimant.
26.4    Subd. 4. Appropriation. An amount sufficient to pay the refunds authorized under
26.5this section is appropriated to the commissioner from the general fund.
26.6EFFECTIVE DATE.This section is effective for taxable years beginning after
26.7December 31, 2015.

26.8    Sec. 15. [290.0697] CREDIT FOR PARENTS OF STILLBORN CHILDREN.
26.9    Subdivision 1. Credit allowed. (a) An individual is allowed a credit against the
26.10tax imposed by this chapter equal to $2,000 for each birth for which a certificate of
26.11birth resulting in stillbirth has been issued under section 144.2151. The credit under
26.12this section is allowed only in the taxable year in which the stillbirth occurred and if
26.13the child would have been a dependent of the taxpayer as defined in section 152 of the
26.14Internal Revenue Code.
26.15(b) For a part-year resident, the credit must be allocated based on the percentage
26.16calculated under section 290.06, subdivision 2c, paragraph (e).
26.17    Subd. 2. Credit refundable. If the amount of credit that an individual is
26.18allowed under this section exceeds the individual's tax liability under this chapter, the
26.19commissioner shall refund the excess to the individual.
26.20    Subd. 3. Appropriation. An amount sufficient to pay the refunds required by this
26.21section is appropriated to the commissioner from the general fund.
26.22EFFECTIVE DATE.This section is effective for taxable years beginning after
26.23December 31, 2015.

26.24    Sec. 16. Minnesota Statutes 2014, section 290.091, subdivision 2, is amended to read:
26.25    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following
26.26terms have the meanings given:
26.27    (a) "Alternative minimum taxable income" means the sum of the following for
26.28the taxable year:
26.29    (1) the taxpayer's federal alternative minimum taxable income as defined in section
26.3055(b)(2) of the Internal Revenue Code;
26.31    (2) the taxpayer's itemized deductions allowed in computing federal alternative
26.32minimum taxable income, but excluding:
27.1    (i) the charitable contribution deduction under section 170 of the Internal Revenue
27.2Code;
27.3    (ii) the medical expense deduction;
27.4    (iii) the casualty, theft, and disaster loss deduction; and
27.5    (iv) the impairment-related work expenses of a disabled person;
27.6    (3) for depletion allowances computed under section 613A(c) of the Internal
27.7Revenue Code, with respect to each property (as defined in section 614 of the Internal
27.8Revenue Code), to the extent not included in federal alternative minimum taxable income,
27.9the excess of the deduction for depletion allowable under section 611 of the Internal
27.10Revenue Code for the taxable year over the adjusted basis of the property at the end of the
27.11taxable year (determined without regard to the depletion deduction for the taxable year);
27.12    (4) to the extent not included in federal alternative minimum taxable income, the
27.13amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
27.14Internal Revenue Code determined without regard to subparagraph (E);
27.15    (5) to the extent not included in federal alternative minimum taxable income, the
27.16amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
27.17    (6) the amount of addition required by section 290.01, subdivision 19a, clauses
27.18(7) to (9), and (11) to (14); and
27.19    (7) the amount of the addition required by section 290.01, subdivision 19a, clause
27.20(18);
27.21    less the sum of the amounts determined under the following:
27.22    (1) interest income as defined in section 290.01, subdivision 19b, clause (1);
27.23    (2) an overpayment of state income tax as provided by section 290.01, subdivision
27.2419b , clause (2), to the extent included in federal alternative minimum taxable income;
27.25    (3) the amount of investment interest paid or accrued within the taxable year on
27.26indebtedness to the extent that the amount does not exceed net investment income, as
27.27defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
27.28amounts deducted in computing federal adjusted gross income;
27.29    (4) amounts subtracted from federal taxable income as provided by section 290.01,
27.30subdivision 19b , clauses (6), (8) to (14), and (16), and (21); and
27.31(5) the amount of the net operating loss allowed under section 290.095, subdivision
27.3211 , paragraph (c).
27.33    In the case of an estate or trust, alternative minimum taxable income must be
27.34computed as provided in section 59(c) of the Internal Revenue Code.
27.35    (b) "Investment interest" means investment interest as defined in section 163(d)(3)
27.36of the Internal Revenue Code.
28.1    (c) "Net minimum tax" means the minimum tax imposed by this section.
28.2    (d) "Regular tax" means the tax that would be imposed under this chapter (without
28.3regard to this section and section 290.032), reduced by the sum of the nonrefundable
28.4credits allowed under this chapter.
28.5    (e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable
28.6income after subtracting the exemption amount determined under subdivision 3.
28.7EFFECTIVE DATE.Paragraph (a), clause (7), is effective for taxable years
28.8beginning after December 31, 2015. The change to paragraph (a), the second clause
28.9(4), is effective the day following final enactment, except the changes incorporated by
28.10federal changes are effective retroactively at the same time as the changes were effective
28.11for federal purposes.

28.12    Sec. 17. Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15,
28.13is amended to read:
28.14    Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal
28.15Revenue Code of 1986, as amended through December 31, 2014 2015.
28.16EFFECTIVE DATE.This section is effective retroactively for property tax refunds
28.17based on property taxes payable after December 31, 2015, and rent paid after December
28.1831, 2014.

28.19    Sec. 18. Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is
28.20amended to read:
28.21    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
28.22terms used in this chapter shall have the following meanings:
28.23    (1) "Commissioner" means the commissioner of revenue or any person to whom the
28.24commissioner has delegated functions under this chapter.
28.25    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued
28.26and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
28.27increased by the value of any property in which the decedent had a qualifying income
28.28interest for life and for which an election was made under section 291.03, subdivision 1d,
28.29for Minnesota estate tax purposes, but was not made for federal estate tax purposes.
28.30    (3) "Internal Revenue Code" means the United States Internal Revenue Code of
28.311986, as amended through December 31, 2014 2015.
28.32    (4) "Minnesota gross estate" means the federal gross estate of a decedent after
28.33(a) excluding therefrom any property included in the estate which has its situs outside
29.1Minnesota, and (b) including any property omitted from the federal gross estate which
29.2is includable in the estate, has its situs in Minnesota, and was not disclosed to federal
29.3taxing authorities.
29.4    (5) "Nonresident decedent" means an individual whose domicile at the time of
29.5death was not in Minnesota.
29.6    (6) "Personal representative" means the executor, administrator or other person
29.7appointed by the court to administer and dispose of the property of the decedent. If there
29.8is no executor, administrator or other person appointed, qualified, and acting within this
29.9state, then any person in actual or constructive possession of any property having a situs in
29.10this state which is included in the federal gross estate of the decedent shall be deemed
29.11to be a personal representative to the extent of the property and the Minnesota estate tax
29.12due with respect to the property.
29.13    (7) "Resident decedent" means an individual whose domicile at the time of death
29.14was in Minnesota.
29.15    (8) "Situs of property" means, with respect to:
29.16    (i) real property, the state or country in which it is located;
29.17    (ii) tangible personal property, the state or country in which it was normally kept
29.18or located at the time of the decedent's death or for a gift of tangible personal property
29.19within three years of death, the state or country in which it was normally kept or located
29.20when the gift was executed;
29.21    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
29.22Code, owned by a nonresident decedent and that is normally kept or located in this state
29.23because it is on loan to an organization, qualifying as exempt from taxation under section
29.24501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
29.25deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
29.26    (iv) intangible personal property, the state or country in which the decedent was
29.27domiciled at death or for a gift of intangible personal property within three years of death,
29.28the state or country in which the decedent was domiciled when the gift was executed.
29.29    For a nonresident decedent with an ownership interest in a pass-through entity with
29.30assets that include real or tangible personal property, situs of the real or tangible personal
29.31property, including qualified works of art, is determined as if the pass-through entity does
29.32not exist and the real or tangible personal property is personally owned by the decedent.
29.33If the pass-through entity is owned by a person or persons in addition to the decedent,
29.34ownership of the property is attributed to the decedent in proportion to the decedent's
29.35capital ownership share of the pass-through entity.
29.36(9) "Pass-through entity" includes the following:
30.1(i) an entity electing S corporation status under section 1362 of the Internal Revenue
30.2Code;
30.3(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
30.4(iii) a single-member limited liability company or similar entity, regardless of
30.5whether it is taxed as an association or is disregarded for federal income tax purposes
30.6under Code of Federal Regulations, title 26, section 301.7701-3; or
30.7(iv) a trust to the extent the property is includible in the decedent's federal gross
30.8estate; but excludes
30.9    (v) an entity whose ownership interest securities are traded on an exchange regulated
30.10by the Securities and Exchange Commission as a national securities exchange under
30.11section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.
30.12EFFECTIVE DATE.This section is effective the day following final enactment.

30.13    Sec. 19. AMENDED RETURNS.
30.14    Subdivision 1. Certain IRA rollovers. An individual who excludes an amount
30.15from net income in a prior taxable year through rollover of an airline payment amount to
30.16a traditional IRA, as authorized under Public Law 114-113, division Q, title III, section
30.17307, may file an amended individual income tax return and claim for refund of state taxes
30.18as provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by
30.19September 1, 2016.
30.20    Subd. 2. Exclusion for certain incarcerated individuals. An individual who
30.21excludes from net income in a prior taxable year civil damages, restitution, or other
30.22monetary award received as compensation for a wrongful incarceration, as authorized
30.23under Public Law 114-113, division Q, title III, section 304, may file an amended
30.24individual income tax return and claim for refund of state taxes as provided under
30.25Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September 1, 2016.
30.26EFFECTIVE DATE.This section is effective the day following final enactment.

30.27    Sec. 20. TAX TIME SAVINGS GRANT PROGRAM APPROPRIATION.
30.28(a) $400,000 is appropriated in fiscal year 2017 from the general fund to the
30.29commissioner of revenue to make grants under the tax time savings grant program under
30.30Minnesota Statutes, section 270C.22. Of this amount, up to five percent may be used for
30.31the administration of the tax time savings grant program.
30.32(b) The base funding for the grant program authorized under paragraph (a) is
30.33$400,000 each year.

31.1    Sec. 21. TAXPAYER ASSISTANCE GRANTS APPROPRIATION.
31.2(a) $400,000 is appropriated in fiscal year 2017 from the general fund to the
31.3commissioner of revenue for the provision of taxpayer assistance grants under Minnesota
31.4Statutes, section 270C.21, in addition to the current base funding for the program. Of the
31.5amount appropriated under this paragraph and the current base funding for the provision
31.6of taxpayer assistance grants, up to five percent may be used for the administration of the
31.7taxpayer assistance grants program.
31.8(b) After fiscal year 2017, the base funding for the program under paragraph (a) is
31.9$800,000 each year.

31.10ARTICLE 2

31.11SALES AND USE

31.12    Section 1. Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read:
31.13    Subdivision 1. Definitions. (a) To the extent allowed by the United States
31.14Constitution and the laws of the United States, "retailer maintaining a place of business in
31.15this state," or a similar term, means a retailer:
31.16(1) having or maintaining within this state, directly or by a subsidiary or an affiliate,
31.17an office, place of distribution, sales, storage, or sample room or place, warehouse, or
31.18other place of business, including the employment of a resident of this state who works
31.19from a home office in this state; or
31.20(2) having a representative, including, but not limited to, an affiliate, agent,
31.21salesperson, canvasser, or marketplace provider, solicitor, or other third party operating in
31.22this state under the authority of the retailer or its subsidiary, for any purpose, including the
31.23repairing, selling, delivering, installing, facilitating sales, processing sales, or soliciting
31.24of orders for the retailer's goods or services, or the leasing of tangible personal property
31.25located in this state, whether the place of business or agent, representative, affiliate,
31.26salesperson, canvasser, or solicitor is located in the state permanently or temporarily, or
31.27whether or not the retailer, subsidiary, or affiliate is authorized to do business in this state.
31.28(b) "Destination of a sale" means the location to which the retailer makes delivery of
31.29the property sold, or causes the property to be delivered, to the purchaser of the property,
31.30or to the agent or designee of the purchaser. The delivery may be made by any means,
31.31including the United States Postal Service or a for-hire carrier.

31.32    Sec. 2. Minnesota Statutes 2014, section 297A.66, subdivision 3, is amended to read:
31.33    Subd. 3. Retailer not maintaining place of business in this state. (a) To the
31.34extent allowed by the United States Constitution and in accordance with the terms and
32.1conditions of federal remote seller law, a retailer making retail sales from outside this state
32.2to a destination within this state and not maintaining a place of business in this state shall
32.3collect sales and use taxes and remit them to the commissioner under section 297A.77.
32.4(b) To the extent allowed by the United States Constitution and the laws of the
32.5United States, a retailer making retail sales from outside this state to a destination within
32.6this state and not maintaining a place of business in this state shall collect sales and use
32.7taxes and remit them to the commissioner under section 297A.77, if the retailer engages in
32.8the regular or systematic soliciting of sales from potential customers in this state by:
32.9(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or
32.10other written solicitations of business to customers in this state;
32.11(2) display of advertisements on billboards or other outdoor advertising in this state;
32.12(3) advertisements in newspapers published in this state;
32.13(4) advertisements in trade journals or other periodicals the circulation of which is
32.14primarily within this state;
32.15(5) advertisements in a Minnesota edition of a national or regional publication or
32.16a limited regional edition in which this state is included as part of a broader regional or
32.17national publication which are not placed in other geographically defined editions of the
32.18same issue of the same publication;
32.19(6) advertisements in regional or national publications in an edition which is not
32.20by its contents geographically targeted to Minnesota but which is sold over the counter
32.21in Minnesota or by subscription to Minnesota residents;
32.22(7) advertisements broadcast on a radio or television station located in Minnesota; or
32.23(8) any other solicitation by telegraphy, telephone, computer database, cable, optic,
32.24microwave, or other communication system.;
32.25(9) engaging in direct response marketing in this state, either directly or indirectly
32.26through a marketplace provider or other third party. For purposes of this section, "direct
32.27response marketing" includes but is not limited to the following:
32.28(i) sending, transmitting, or broadcasting of flyers, newsletters, telephone calls,
32.29targeted e-mail, text messages, social media messages, or targeted mailings;
32.30(ii) collecting, analyzing, and utilizing individual data on purchasers or potential
32.31purchasers in this state;
32.32(iii) using information or software, including cached files, cached software, cookies,
32.33or other data-tracking tools, that are stored in or distributed within this state; or
32.34(iv) conducting any other actions that use persons, tangible property, intangibles,
32.35digital files or information, or software in this state in an effort to enhance the probability
32.36that a person's contact with a customer in this state will result in a sale to that customer;
33.1(10) conducting any part of the sale process in the state, regardless of whether that
33.2part of the process has been subcontracted to an affiliate or third party, including listing
33.3products or services for sale, soliciting, branding products, selling products, processing
33.4orders, fulfilling orders, providing customer service, or accepting or assisting with returns
33.5or exchanges. The sale process does not include shipping via a common carrier; or
33.6(11) offering its products for sale through one or more marketplaces operated by
33.7any marketplace provider required to collect and remit sales and use taxes in this state
33.8under this section.
33.9This paragraph must be construed without regard to the state from which distribution
33.10of the materials originated or in which they were prepared.
33.11(c) The location within or without this state of independent vendors that provide
33.12products or services to the retailer in connection with its solicitation of customers within this
33.13state, including such products and services as creation of copy, printing, distribution, and
33.14recording, is not considered in determining whether the retailer is required to collect tax.
33.15(d) A retailer not maintaining a place of business in this state is presumed, subject to
33.16rebuttal, to be engaged in regular solicitation within this state if it engages in any of the
33.17activities in paragraph (b) and:
33.18(1) makes 100 or more retail sales from outside this state to destinations in this state
33.19during a period of 12 consecutive months; or
33.20(2) makes ten or more retail sales totaling more than $100,000 from outside this state
33.21to destinations in this state during a period of 12 consecutive months.

33.22    Sec. 3. Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read:
33.23    Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes
33.24of subdivision 1, paragraph (a), if the entity is a related party to the retailer and meets
33.25any of the following conditions:
33.26(1) the entity uses its facilities or employees in this state to advertise, promote, or
33.27facilitate the establishment or maintenance of a market for sales of items by the retailer
33.28to purchasers in this state or for the provision of services to the retailer's purchasers in
33.29this state, such as accepting returns of purchases for the retailer, providing assistance in
33.30resolving customer complaints of the retailer, or providing other services; and
33.31(2) the retailer and the entity are related parties. sells under the same or a similar
33.32business name tangible personal property or taxable services similar to that sold by the
33.33person against whom the presumption is asserted;
33.34(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or
33.35other similar place of business in this state to facilitate the delivery of tangible personal
34.1property or taxable services sold by the person against whom the presumption is asserted
34.2to that person's in-state customers;
34.3(4) uses, with consent or knowledge of the person against whom the presumption
34.4is asserted, trademarks, service marks, or trade names in this state that are the same or
34.5substantially similar to those used by the person against whom the presumption is asserted;
34.6(5) delivers, installs, or assembles tangible personal property in this state, or
34.7performs maintenance or repair services on tangible personal property in this state, if the
34.8tangible personal property is sold to in-state customers by the person against whom the
34.9presumption is asserted;
34.10(6) facilitates the delivery of tangible personal property to in-state customers of the
34.11person against whom the presumption is asserted by allowing the customers to pick up
34.12tangible personal property sold by the person at an office, distribution facility, salesroom,
34.13warehouse, storage place, or other similar place of business maintained in this state; or
34.14(7) shares management, business systems, business practices, or employees with the
34.15person against whom the presumption is asserted, or engages in intercompany transactions
34.16with the person against whom the presumption is asserted related to the activities that
34.17establish or maintain the market in this state of the person against whom the presumption
34.18is asserted.
34.19(b) Two entities are related parties under this section if one of the entities meets at
34.20least one of the following tests with respect to the other entity:
34.21(1) one or both entities is a corporation, and one entity and any party related to that
34.22entity in a manner that would require an attribution of stock from the corporation to the
34.23party or from the party to the corporation under the attribution rules of section 318 of the
34.24Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50
34.25percent of the value of the corporation's outstanding stock;
34.26(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary,
34.27and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly,
34.28beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital,
34.29stock, or value of the other entity or both entities; or
34.30(3) an individual stockholder and the members of the stockholder's family (as
34.31defined in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially,
34.32or constructively, in the aggregate, at least 50 percent of the value of both entities'
34.33outstanding stock.;
34.34(4) the entities are related within the meaning of subsections (b) and (c) of section
34.35267 or 707(b)(1) of the Internal Revenue Code; or
35.1(5) the entities have one or more ownership relationships and the relationships were
35.2designed with a principal purpose of avoiding the application of this section.
35.3(c) An entity is an affiliate under the provisions of this subdivision if the requirements
35.4of paragraphs (a) and (b) are met during any part of the 12-month period ending on the
35.5first day of the month before the month in which the sale was made.

35.6    Sec. 4. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision
35.7to read:
35.8    Subd. 4b. Marketplace provider and marketplace seller. (a) For purposes of
35.9subdivisions 1, paragraph (a), and 4c, "marketplace provider" means any person who
35.10facilitates a retail sale by a seller. A marketplace provider facilitates a retail sale when
35.11the marketplace provider:
35.12(1) lists or advertises in any forum tangible personal property for sale or taxable
35.13services for sale; and
35.14(2) either directly or indirectly through agreements or arrangements with third parties
35.15collects payment from the customer and transmits that payment to a seller, regardless
35.16of whether the marketplace provider receives compensation or other consideration in
35.17exchange for its services.
35.18(b) "Marketplace seller" means a seller that has any sales facilitated by a marketplace
35.19provider.
35.20(c) A seller is presumed to have a marketplace provider in this state if the seller
35.21enters into an agreement with a marketplace provider that maintains a place of business in
35.22the state for the facilitation of retail sales.
35.23(d) This subdivision applies only if the seller's total gross receipts are at least
35.24$10,000 in the 12-month period ending on the last day of the most recent calendar quarter
35.25before the calendar quarter in which the sale is made. For purposes of this paragraph,
35.26"gross receipts" means receipts from sales to customers located in the state that were
35.27facilitated by the marketplace provider.
35.28(e) Nothing in this subdivision shall be construed to narrow the scope of the terms
35.29affiliate, agent, salesperson, canvasser, solicitor, or other representative for purposes
35.30of subdivision 1, paragraph (a).
35.31(f) This subdivision does not apply to chapter 290 and does not expand or contract
35.32the jurisdiction to tax a trade or business under chapter 290.

35.33    Sec. 5. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision
35.34to read:
36.1    Subd. 4c. Collection and remittance requirements for marketplace providers
36.2and marketplace sellers. (a) A marketplace provider that facilitates sales to customers
36.3in this state shall collect sales and use taxes and remit them to the commissioner under
36.4section 297A.77.
36.5(b) The requirement under paragraph (a) does not apply to a marketplace provider if
36.6the marketplace seller for whom the marketplace provider facilitates a sale either:
36.7(1) provides a copy of the seller's registration to collect sales and use tax in this state
36.8to the marketplace provider before the marketplace provider facilitates a sale; or
36.9(2) the marketplace seller appears on a list published by the commissioner of revenue
36.10of the entities registered to collect sales and use taxes in this state.
36.11(c) The commissioner of revenue shall promulgate regulations regarding the content
36.12and publication of the list under paragraph (b), clause (2). Nothing in this subdivision
36.13shall be construed to interfere with the ability of a marketplace provider and a marketplace
36.14seller to enter into an agreement regarding fulfillment of the requirements of this chapter.
36.15(d) A marketplace provider is relieved of liability under this subdivision for failure
36.16to collect and remit sales and use taxes to the extent that the marketplace provider
36.17demonstrates that the error was due to incorrect or insufficient information given to the
36.18marketplace provider by the marketplace seller. This paragraph does not apply if the
36.19marketplace provider and the marketplace seller are related as defined in subdivision 4,
36.20paragraph (b).

36.21    Sec. 6. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision
36.22to read:
36.23    Subd. 49. Siding production facility materials. Building materials and supplies
36.24for constructing a siding production facility that can produce at least 400,000,000 square
36.25feet of siding per year are exempt. The tax must be imposed and collected as if the rate
36.26under section 297A.62, subdivision 1, applied, and then refunded in the manner provided
36.27in section 297A.75.
36.28EFFECTIVE DATE.This section is effective for sales and purchases made after
36.29June 30, 2016.

36.30    Sec. 7. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision
36.31to read:
36.32    Subd. 50. Properties destroyed by fire. Building materials, equipment, and
36.33supplies for constructing or replacing real property that is located in Madelia affected by
36.34the fire on February 3, 2016, are exempt. The tax must be imposed and collected as if
37.1the rate under section 297A.62, subdivision 1, applied and then refunded in the manner
37.2provided in section 297A.75.
37.3EFFECTIVE DATE.This section is effective for sales and purchases made after
37.4June 30, 2016, and before July 1, 2018.

37.5    Sec. 8. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision
37.6to read:
37.7    Subd. 51. Former Duluth Central High School. Materials and supplies used
37.8in and equipment incorporated into a private redevelopment project on the site of the
37.9former Duluth Central High School are exempt, provided the resulting development is
37.10subject to property taxes. The tax must be imposed and collected as if the rate under
37.11section 297A.62, subdivision 1, applied and then refunded in the manner provided in
37.12section 297A.75. The commissioner must not pay more than $5,000,000 in refunds for
37.13purchases exempt under this section. Refunds must be processed and issued in the order
37.14that complete and accurate applications are received by the commissioner.
37.15EFFECTIVE DATE.This section is effective for sales and purchases made after
37.16June 30, 2016, and before January 1, 2018.

37.17    Sec. 9. Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read:
37.18    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the
37.19following exempt items must be imposed and collected as if the sale were taxable and the
37.20rate under section 297A.62, subdivision 1, applied. The exempt items include:
37.21    (1) building materials for an agricultural processing facility exempt under section
37.22297A.71, subdivision 13 ;
37.23    (2) building materials for mineral production facilities exempt under section
37.24297A.71, subdivision 14 ;
37.25    (3) building materials for correctional facilities under section 297A.71, subdivision 3;
37.26    (4) building materials used in a residence for disabled veterans exempt under section
37.27297A.71, subdivision 11 ;
37.28    (5) elevators and building materials exempt under section 297A.71, subdivision 12;
37.29    (6) materials and supplies for qualified low-income housing under section 297A.71,
37.30subdivision 23 ;
37.31    (7) materials, supplies, and equipment for municipal electric utility facilities under
37.32section 297A.71, subdivision 35;
38.1    (8) equipment and materials used for the generation, transmission, and distribution
38.2of electrical energy and an aerial camera package exempt under section 297A.68,
38.3subdivision 37;
38.4    (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3,
38.5paragraph (a), clause (10);
38.6    (10) materials, supplies, and equipment for construction or improvement of projects
38.7and facilities under section 297A.71, subdivision 40;
38.8(11) materials, supplies, and equipment for construction, improvement, or expansion
38.9of:
38.10(i) an aerospace defense manufacturing facility exempt under section 297A.71,
38.11subdivision 42 ;
38.12(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71,
38.13subdivision 45 ;
38.14(iii) a research and development facility exempt under section 297A.71, subdivision
38.1546 ; and
38.16(iv) an industrial measurement manufacturing and controls facility exempt under
38.17section 297A.71, subdivision 47;
38.18(12) enterprise information technology equipment and computer software for use in
38.19a qualified data center exempt under section 297A.68, subdivision 42;
38.20(13) materials, supplies, and equipment for qualifying capital projects under section
38.21297A.71, subdivision 44 ;
38.22(14) items purchased for use in providing critical access dental services exempt
38.23under section 297A.70, subdivision 7, paragraph (c); and
38.24(15) items and services purchased under a business subsidy agreement for use or
38.25consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44;
38.26(16) building materials and supplies for constructing a siding facility exempt under
38.27section 297A.71, subdivision 49;
38.28(17) building materials, equipment, and supplies for constructing or replacing real
38.29property exempt under section 297A.71, subdivision 50; and
38.30(18) materials and supplies used in and equipment incorporated into a private
38.31redevelopment project exempt under section 297A.71, subdivision 51.
38.32EFFECTIVE DATE.Clause (16) is effective for sales and purchases made after
38.33June 30, 2016. Clause (17) is effective for sales and purchases made after June 30, 2016,
38.34and before July 1, 2018. Clause (18) is effective for sales and purchases made after June
38.3530, 2016, and before January 1, 2018.

39.1    Sec. 10. Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read:
39.2    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
39.3commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
39.4must be paid to the applicant. Only the following persons may apply for the refund:
39.5    (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
39.6    (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
39.7    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
39.8provided in United States Code, title 38, chapter 21;
39.9    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
39.10property;
39.11    (5) for subdivision 1, clause (6), the owner of the qualified low-income housing
39.12project;
39.13    (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or
39.14a joint venture of municipal electric utilities;
39.15    (7) for subdivision 1, clauses (8), (11), (12), and (15), and (16), the owner of the
39.16qualifying business; and
39.17    (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the
39.18governmental entity that owns or contracts for the project or facility; and
39.19    (9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or
39.20developer of the building or project.
39.21EFFECTIVE DATE.The change to clause (7) is effective for sales and purchases
39.22made after June 30, 2016. Clause (9) is effective for sales and purchases made after June
39.2330, 2016, and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71,
39.24subdivision 1, clause (17), and for sales and purchases made after June 30, 2016, and
39.25before January 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision
39.261, clause (18).

39.27    Sec. 11. Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read:
39.28    Subd. 3. Application. (a) The application must include sufficient information
39.29to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
39.30subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15), to (18), the
39.31contractor, subcontractor, or builder must furnish to the refund applicant a statement
39.32including the cost of the exempt items and the taxes paid on the items unless otherwise
39.33specifically provided by this subdivision. The provisions of sections 289A.40 and
39.34289A.50 apply to refunds under this section.
40.1    (b) An applicant may not file more than two applications per calendar year for
40.2refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
40.3EFFECTIVE DATE.This section is effective for sales and purchases made after
40.4June 30, 2016.

40.5    Sec. 12. SEVERABILITY.
40.6If any provision of sections 1 to 5 or 13 or the application thereof is held invalid,
40.7such invalidity shall not affect the provisions or applications of the sections which can be
40.8given effect without the invalid provisions or applications.
40.9EFFECTIVE DATE.This section is effective the day following final enactment.

40.10    Sec. 13. EFFECTIVE DATE.
40.11(a) The provisions of sections 1 to 5 of this article are effective upon a decision by
40.12the United States Supreme Court overturning or expanding its decision in Quill Corp. v.
40.13North Dakota, 504 U.S. 298 (1992), allowing a state to require retailers without a physical
40.14presence in the state to collect and remit sales tax.
40.15(b) Notwithstanding paragraph (a) or the provisions of sections 1 to 5, if a federal
40.16law is enacted authorizing a state to impose a requirement to collect and remit sales tax
40.17on retailers without a physical presence in the state, the commissioner must enforce the
40.18provisions of this section and sections 1 to 5 to the extent allowed under federal law.
40.19(c) The commissioner of revenue shall notify the revisor of statutes when either of
40.20the provisions in paragraphs (a) or (b) apply.

40.21ARTICLE 3

40.22PROPERTY TAX

40.23    Section 1. [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE
40.24ASSOCIATION.
40.25A cooperative electric association that has elected to be subject to rate regulation
40.26under section 216B.026 is eligible to file with the commission for approval of an
40.27adjustment for real and personal property taxes, fees, and permits.
40.28EFFECTIVE DATE.This section is effective the day following final enactment.

40.29    Sec. 2. Minnesota Statutes 2014, section 272.162, is amended to read:
40.30272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.
41.1    Subdivision 1. Conditions restricting transfer. When a deed or other instrument
41.2conveying a parcel of land is presented to the county auditor for transfer or division under
41.3sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its
41.4net tax capacity in the official records and shall not certify the instrument as provided in
41.5section 272.12, if:
41.6(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;
41.7(b) The part conveyed appears within the area of application of municipal or
41.8county subdivision regulations adopted and filed under section 394.35 or section 462.36,
41.9subdivision 1 ; and
41.10(c) The part conveyed is part of or constitutes a subdivision as defined in section
41.11462.352, subdivision 12 .
41.12    Subd. 2. Conditions allowing transfer. (a) Notwithstanding the provisions of
41.13subdivision 1, the county auditor may transfer or divide the land and its net tax capacity
41.14and may certify the instrument if the instrument contains a certification by the clerk of
41.15the municipality or designated county planning official:
41.16(a) (1) that the municipality's or county's subdivision regulations do not apply;
41.17(b) (2) that the subdivision has been approved by the governing body of the
41.18municipality or county; or
41.19(c) (3) that the restrictions on the division of taxes and filing and recording have
41.20been waived by resolution of the governing body of the municipality or county in the
41.21particular case because compliance would create an unnecessary hardship and failure to
41.22comply would not interfere with the purpose of the regulations.
41.23(b) If any of the conditions for certification by the municipality or county as provided
41.24in this subdivision exist and the municipality or county does not certify that they exist
41.25within 24 hours after the instrument of conveyance has been presented to the clerk of
41.26the municipality or designated county planning official, the provisions of subdivision 1
41.27do not apply.
41.28(c) If an unexecuted instrument is presented to the municipality or county and
41.29any of the conditions for certification by the municipality or county as provided in
41.30this subdivision exist, the unexecuted instrument must be certified by the clerk of the
41.31municipality or the designated county planning official.
41.32    Subd. 3. Applicability of restrictions. (a) This section does not apply to the
41.33exceptions set forth in section 272.12.
41.34(b) This section applies only to land within municipalities or counties which choose
41.35to be governed by its provisions. A municipality or county may choose to have this
41.36section apply to the property within its boundaries by filing a certified copy of a resolution
42.1of its governing body making that choice with the auditor and recorder of the county in
42.2which it is located.
42.3EFFECTIVE DATE.This section is effective the day following final enactment.

42.4    Sec. 3. [469.501] STATE GENERAL TAX REFUND.
42.5    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
42.6have the meanings given them.
42.7(b) "Commissioner" means the commissioner of employment and economic
42.8development.
42.9(c) "Job creation zone" means an area including one or more contiguous census
42.10tracts, as determined and measured by the United States Census Bureau, where the
42.11unemployment rate average is at least 75 percent higher than the statewide average
42.12unemployment rate as estimated by the United States Census Bureau using data collected
42.13in the most recent American Community Survey.
42.14(d) "Employee" and "wages" have the meanings given in section 290.92, subdivision
42.151.
42.16    Subd. 2. Eligible business. (a) An eligible business located within the seven-county
42.17metropolitan area, or located outside the seven-county metropolitan area but in a city with
42.18a population greater than 40,000, is an employer that: (1) is located in a job creation zone
42.19as defined in subdivision 1; (2) pays at least 50 percent of the business's total wages to
42.20employees who reside either within the job creation zone where the business is located or
42.21any contiguous census tract; and (3) is a for-profit business.
42.22(b) An eligible business located outside the seven-county metropolitan area and in a
42.23city or township with a population less than 40,000 is an employer that: (1) pays at least
42.2450 percent of the business's total wages to employees who reside in any job creation
42.25zone not located in either the seven-county metropolitan area or in a city located outside
42.26the seven-county metropolitan area with a population greater than 40,000; and (2) is a
42.27for-profit business.
42.28(c) If a business received a refund under this section in the immediately preceding
42.29year, but does not qualify for a refund in the current year because the business is located
42.30in an area that no longer meets the requirements of a job creation zone, as defined in
42.31subdivision 1, the business may apply for a onetime refund in the current year equal to
42.32one-half the amount of the refund issued to the business in the immediately preceding
42.33year. A business that relocates outside of a job creation zone shall not be eligible for a
42.34refund under this paragraph.
43.1    Subd. 3. Refund; authorized. The commissioner may approve an application for a
43.2refund of the state general tax paid under section 275.025 applicable to that portion of
43.3the property occupied by an eligible business. The owner of an eligible business must
43.4apply annually to the commissioner by July 1 of each year on a form prescribed by the
43.5commissioner in order to receive a refund for that year. Upon approval, the commissioner
43.6shall notify the commissioner of revenue by September 1. The refund is equal to the state
43.7general tax payable on the property where the eligible business is located multiplied by a
43.8ratio, the numerator of which is the area of the property occupied by the eligible business
43.9and the denominator of which is the total area of the property where the business is
43.10located. The commissioner of revenue shall pay the amount determined under this section
43.11to the eligible business owner by December 1.
43.12    Subd. 4. Appropriation. The amount necessary to make the refunds under this
43.13section is appropriated annually from the general fund to the commissioner of revenue.
43.14    Subd. 5. Report. By January 15, 2023, the commissioner of employment and
43.15economic development must provide a written report to the chairs and ranking minority
43.16members of the legislative committees with jurisdiction over taxes and employment
43.17including information regarding the refunds issued under this section. The report must
43.18include, at a minimum, the number of refunds issued, the amount of each refund, the
43.19identification and location of each business that received a refund, and employment data
43.20used to determine eligibility under this section. The report must comply with sections
43.213.195 and 3.197.
43.22    Subd. 6. Sunset. This section applies to refunds for state general tax payments made
43.23for taxes payable in 2016 through taxes payable in 2026.
43.24EFFECTIVE DATE.This section is effective for applications filed in calendar year
43.252016 for refunds of the state general tax payable in 2016 through 2026.

43.26    Sec. 4. Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision
43.27to read:
43.28    Subd. 1u. Obligations. (a) In addition to other authority in this section, the council
43.29may issue certificates of indebtedness, bonds, or other obligations under this section in an
43.30amount not exceeding $82,100,000 for capital expenditures as prescribed in the council's
43.31transit capital improvement program and for related costs, including the costs of issuance
43.32and sale of the obligations. Of this authorization, after July 1, 2016, the council may
43.33issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding
43.34$40,100,000, and after July 1, 2017, the council may issue certificates of indebtedness,
43.35bonds, or other obligations in an additional amount not exceeding $42,000,000.
44.1(b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin,
44.2Ramsey, Scott, and Washington.
44.3EFFECTIVE DATE.This section is effective the day following final enactment.

44.4    Sec. 5. [477A.21] RIPARIAN PROTECTION AID.
44.5    Subdivision 1. Definitions. (a) When used in this section, the following terms have
44.6the meanings given them in this subdivision.
44.7(b) "Public water basins" has the meaning provided in section 103G.005, subdivision
44.815, clauses (1) to (8) and (11).
44.9(c) "Public watercourses" has the meaning provided in section 103G.005,
44.10subdivision 15, clauses (9) and (10).
44.11    Subd. 2. Distribution. (a) Each county is eligible to receive aid under this section to
44.12enforce and implement the riparian protection and water quality practices under section
44.13103F.48. Aid to each county shall equal: (1) each county's share of the total number of
44.14acres in the state classified as class 2a under section 273.13, subdivision 23, divided by
44.15two; plus (2) each county's share of the number of miles of shoreline of public water
44.16basins, each county's share of the number of centerline miles of public watercourses, and
44.17each county's share of the number of miles of public drainage system ditches established
44.18under chapter 103E, divided by two; multiplied by (3) $10,000,000.
44.19(b) Aid to a county shall not be greater than $200,000 or less than $25,000. If the
44.20sum of aids payable to counties under paragraph (a) is greater or less than the limit under
44.21subdivision 4, the commissioner of revenue shall calculate the percentage adjustment
44.22necessary so that the total of the aid under paragraph (a) equals the total amount available
44.23for aid under subdivision 4.
44.24    Subd. 3. Payments. The commissioner of revenue must compute the amount of
44.25riparian protection aid payable to each county under this section. On or before July 1 of
44.26each year, the commissioner of natural resources shall certify to the commissioner of
44.27revenue the statewide and countywide total of miles of shoreline of public waters basins,
44.28the number of centerline miles of public watercourses, and the miles of public drainage
44.29system ditches. On or before August 1 of each year, the commissioner shall certify
44.30the amount to be paid to each county in the following year. The commissioner shall
44.31pay riparian protection aid to counties in the same manner and at the same time as aid
44.32payments under section 477A.015.
44.33    Subd. 4. Appropriation. $10,000,000 for aids payable in 2017 and each year
44.34thereafter is appropriated from the general fund to the commissioner of revenue to make
44.35the payments required under this section.
45.1EFFECTIVE DATE.This section is effective beginning with aids payable in 2017
45.2and thereafter.

45.3    Sec. 6. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243,
45.4article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154,
45.5article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read:
45.6    Sec. 3. TAX; PAYMENT OF EXPENSES.
45.7    (a) The tax levied by the hospital district under Minnesota Statutes, section 447.34,
45.8must not be levied at a rate that exceeds the amount authorized to be levied under that
45.9section. The proceeds of the tax may be used for all purposes of the hospital district,
45.10except as provided in paragraph (b).
45.11    (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by
45.12the Cook ambulance service and the Orr ambulance service for the purpose of:
45.13    (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance
45.14service;
45.15    (2) attached and portable equipment for use in and for the ambulances; and
45.16    (3) parts and replacement parts for maintenance and repair of the ambulances, and
45.17administrative, operation, or salary expenses for the Cook ambulance service and the
45.18Orr ambulance service.
45.19The money may not be used for administrative, operation, or salary expenses.
45.20    (c) The part of the levy referred to in paragraph (b) must be administered by the
45.21Cook Hospital and passed on in equal amounts directly to the Cook area ambulance
45.22service board and the city of Orr to be used for the purposes in paragraph (b).
45.23EFFECTIVE DATE.This section is effective the day following final enactment.

45.24    Sec. 7. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by
45.25Laws 2013, chapter 143, article 4, section 36, is amended to read:
45.26    Subdivision 1. Agreement. The city of Cloquet and Perch Lake Township, by
45.27resolution of each of their governing bodies, may establish the Cloquet Area Fire and
45.28Ambulance Special Taxing District for the purpose of providing fire or ambulance
45.29services, or both, throughout the district. In this section, "municipality" means home rule
45.30charter and statutory cities, towns, and Indian tribes. The district may exercise all the
45.31powers relating to fire and ambulance services of the municipalities that receive fire or
45.32ambulance services, or both, from the district. Upon application, any other municipality
46.1may join the district with the agreement of the municipalities that comprise the district at
46.2the time of its application to join.
46.3EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
46.4the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
46.5governing body of each.

46.6    Sec. 8. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
46.7    Subd. 2. Board. The Cloquet Area Fire and Ambulance Special Taxing District
46.8Board is governed by a board made up initially of one or more elected officials of the
46.9governing body of each participating municipality in the proportions set out in the
46.10establishing resolution, subject to change as provided in the district's charter, if any, or
46.11in the district's bylaws. Each municipality's representatives serve at the pleasure of that
46.12municipality's governing body.
46.13EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
46.14the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
46.15governing body of each.

46.16    Sec. 9. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by
46.17Laws 2013, chapter 143, article 4, section 37, is amended to read:
46.18    Subd. 3. Tax. (a) The district board may impose a property tax on taxable property
46.19as provided in this subdivision to pay the costs of providing fire or ambulance services,
46.20or both, throughout the district. The board shall annually determine the total amount of
46.21the levy that is attributable to the cost of providing fire services and the cost of providing
46.22ambulance services within the primary service area. For those municipalities that only
46.23receive ambulance services, the costs for the provision of ambulance services shall
46.24be levied against taxable property within those municipalities at a rate necessary not to
46.25exceed 0.019 percent of the estimated market value. For those municipalities that receive
46.26both fire and ambulance services, the tax shall be imposed at a rate that does not exceed
46.270.2835 percent of estimated market value.
46.28(b) When a member municipality opts to receive fire service from the district or
46.29an additional municipality becomes a member of the district, the cost of providing fire
46.30services to that community shall be determined by the board and added to the maximum
46.31levy amount.
46.32(c) Each county auditor of a county that contains a municipality subject to the tax
46.33under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing
47.1District. The district may also impose other fees or charges as allowed by law for the
47.2provision of fire and ambulance services.
47.3EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
47.4the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
47.5governing body of each.

47.6    Sec. 10. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
47.7    Subd. 4. Public indebtedness. (a) The district may incur debt in the manner
47.8provided for a municipality by Minnesota Statutes, chapter 475, and may issue certificates
47.9of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes,
47.10section 412.301, when necessary to accomplish its duties, except that the district may
47.11not incur debt or issue obligations until first obtaining the approval of a majority of the
47.12electors voting on the question of issuing the obligation. The debt service for debt used to
47.13finance capital costs for ambulance service shall be levied against taxable property within
47.14the municipalities in the primary service area. The debt service for debt used to finance
47.15capital costs for fire service shall be levied against taxable property within municipalities
47.16receiving fire services. The district board shall pledge its full faith and credit and taxing
47.17power without limitation as to rate or amount for the payment of the district's debt.
47.18(b) For purposes of this subdivision, "municipality" has the definition given in
47.19Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph
47.20(c).
47.21EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
47.22the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
47.23governing body of each.

47.24    Sec. 11. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
47.25    Subd. 5. Withdrawal. Notice of intent to withdraw from participation in the district
47.26may be given only in the month of January, with a minimum of twelve months notice of
47.27intent to withdraw. Withdrawal becomes effective for taxes levied pursuant to subdivision
47.283 in the year when the notice is given. A property tax on taxable property located in a
47.29withdrawing municipality that has been levied by the district pursuant to subdivision 4
47.30remains in effect until the obligations outstanding on the date of withdrawal are satisfied,
47.31including any property tax levied in connection with refunding such obligations. The
47.32district and its members may also develop and agree upon other continuing obligations
47.33after withdrawal of a municipality.
48.1EFFECTIVE DATE.This section is effective in Cloquet and Perch Lake Township
48.2the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
48.3governing body of each.

48.4    Sec. 12. 2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE
48.5WAIVER.
48.6If a city or town that conducts local board of appeal and equalization meetings
48.7certified by February 1, 2016, that it was in compliance with the requirements of
48.8Minnesota Statutes, section 274.014, subdivision 2, but no member of the local board
48.9who has attended an appeal and equalization course training within the preceding four
48.10years attended the local board's meeting for 2016, that local board shall have its powers
48.11reinstated for the 2017 assessment by resolution of the governing body of the city or
48.12town, and by certifying it is in compliance with the requirements of Minnesota Statutes,
48.13section 274.014, subdivision 2. The resolution and certification must be provided to
48.14the county assessor by February 1, 2017.
48.15EFFECTIVE DATE.This section is effective the day following final enactment.

48.16    Sec. 13. LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT
48.17RECOMMENDATION.
48.18The commissioner of revenue must prepare a written recommendation to the house
48.19of representatives and senate taxes committees regarding the potential use of property tax
48.20abatements in providing economic relief for businesses in the vicinity of Lake Mille Lacs
48.21that were negatively affected by early closing of the walleye fishing season in 2015. The
48.22recommendations must include:
48.23(1) a proposed definition of an economic relief area in the vicinity of the lake;
48.24(2) an overview of the impact of the early closing on businesses in the relief area;
48.25(3) a discussion of the economic benefits a property tax abatement program would
48.26provide to businesses in the relief area; and
48.27(4) parameters for an abatement program.
48.28The recommendation required under this section is due by January 2, 2017.
48.29EFFECTIVE DATE.This section is effective the day following final enactment.

48.30    Sec. 14. SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL
48.31ASSESSMENT.
49.1Any real or personal property acquired, owned, leased, controlled, used, or occupied
49.2by the city of St. Paul for the primary purpose of providing a stadium for a Major League
49.3Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for
49.4public, governmental, and municipal purposes, and is exempt from ad valorem taxation by
49.5the state or any political subdivision of the state, provided that the properties are subject to
49.6special assessments levied by a political subdivision for a local improvement in amounts
49.7proportionate to and not exceeding the special benefit received by the properties from the
49.8improvement. In determining the special benefit received by the properties, no possible
49.9use of any of the properties in any manner different from their intended use for providing a
49.10Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota
49.11Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a
49.12lease or use agreement between the city and another person for uses related to the purposes
49.13of the operation of the stadium and related parking facilities is exempt from taxation
49.14regardless of the length of the lease or use agreement. This section, insofar as it provides
49.15an exemption or special treatment, does not apply to any real property that is leased for
49.16residential, business, or commercial development or other purposes different from those
49.17necessary to the provision and operation of the stadium.
49.18EFFECTIVE DATE.This section is effective upon approval by the St. Paul City
49.19Council and compliance with Minnesota Statutes, section 645.021.

49.20    Sec. 15. APPROPRIATION.
49.21$1,200,000 in fiscal year 2016 is appropriated from the general fund to the
49.22commissioner of revenue for a grant to the city of Madelia that shall be paid by June
49.2330, 2016. This appropriation is onetime.
49.24EFFECTIVE DATE.This section is effective the day following final enactment.

49.25ARTICLE 4

49.26LOCAL DEVELOPMENT

49.27    Section 1. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to
49.28read:
49.29    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
49.30financing plan for a district, the rules under this section apply to a redevelopment district,
49.31renewal and renovation district, economic development district, soil condition district,
49.32or a soil deficiency district established by the city or a development authority of the city
49.33in the project area.
50.1    (b) Prior to or upon the adoption of the first tax increment plan subject to the special
50.2rules under this subdivision, the city must find by resolution that parcels consisting of at
50.3least 80 percent of the acreage of the project area (excluding street and railroad right of
50.4way) are characterized by one or more of the following conditions:
50.5    (1) peat or other soils with geotechnical deficiencies that impair development of
50.6residential or commercial buildings or infrastructure;
50.7    (2) soils or terrain that requires substantial filling in order to permit the development
50.8of commercial or residential buildings or infrastructure;
50.9    (3) landfills, dumps, or similar deposits of municipal or private waste;
50.10    (4) quarries or similar resource extraction sites;
50.11    (5) floodway; and
50.12    (6) substandard buildings within the meaning of Minnesota Statutes, section
50.13469.174, subdivision 10 .
50.14    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to
50.15be characterized by the relevant condition if at least 70 percent of the area of the parcel
50.16contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is
50.17deemed to be characterized by substandard buildings if the buildings occupy at least 30
50.18percent of the area of the parcel.
50.19    (d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6,
50.20is extended to nine years for any district. The five-year rule under Minnesota Statutes,
50.21section 469.1763, subdivision 3, is extended to ten years for any district, and section
50.22469.1763, subdivision 4 , does not apply to any district.
50.23    (e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2,
50.24paragraph (a), not more than 80 percent of the total revenue derived from tax increments
50.25paid by properties in any district (measured over the life of the district) may be expended
50.26on activities outside the district but within the project area.
50.27    (f) For a soil deficiency district:
50.28    (1) increments may be collected through 20 years after the receipt by the authority of
50.29the first increment from the district; and
50.30    (2) except as otherwise provided in this subdivision, increments may be used only to:
50.31    (i) acquire parcels on which the improvements described in item (ii) will occur;
50.32    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
50.33additional cost of installing public improvements directly caused by the deficiencies; and
50.34    (iii) pay for the administrative expenses of the authority allocable to the district.
51.1    (g) Increments spent for any infrastructure costs, whether inside a district or outside
51.2a district but within the project area, are deemed to satisfy the requirements of paragraph
51.3(f) and Minnesota Statutes, section 469.176, subdivisions 4b, 4c, and 4j.
51.4    (h) Increments from any district may not be used to pay the costs of landfill closure or
51.5public infrastructure located on the following parcels within the plat known as Burnsville
51.6Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
51.7    (i) The authority to approve tax increment financing plans to establish tax increment
51.8financing districts under this section expires on December 31, 2018 2020.
51.9EFFECTIVE DATE.This section is effective upon approval by the governing body
51.10of the city of Burnsville and compliance with the requirements of Minnesota Statutes,
51.11section 645.021.

51.12    Sec. 2. Laws 2014, chapter 308, article 6, section 9, is amended to read:
51.13    Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING
51.14DISTRICT.
51.15    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
51.16have the meanings given them.
51.17(b) "City" means the city of Maple Grove.
51.18(c) "Project area" means all or a portion of the area in the city commencing at a point
51.19130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of
51.20Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly
51.21right-of-way line of Hemlock Lane; thence northerly along said easterly right-of-way line
51.22of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of
51.23section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the
51.24east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South
51.2574 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees
51.26West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line
51.27of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of
51.28the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795
51.29feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of
51.30Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the
51.31Northwest Quarter of Section 24; thence West along said south line to the east right-of-way
51.32line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to
51.33the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence
51.34East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan
51.35Industrial Park 5th Addition; thence South along the east line of said Outlot A and its
52.1southerly extension to the south right-of-way line of County State-Aid Highway (CSAH)
52.2109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the
52.3Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east
52.4line to the north line of the South Half of the Northeast Quarter of Section 24; thence East
52.5along said north line to the westerly right-of-way line of Jefferson Highway North; thence
52.6southerly along the westerly right-of-way line of Jefferson Highway to the centerline of
52.7CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane
52.8North to the westerly extension of the north line of Outlot A, Park North Fourth Addition;
52.9thence easterly along the north line of Outlot A, Park North Fourth Addition to the
52.10northeast corner of said Outlot A; thence southerly along the east line of said Outlot A
52.11to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1,
52.12Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway
52.13169; thence southerly, southwesterly, westerly, and northwesterly along the westerly
52.14right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate
52.15694 to its intersection with the southerly extension of the easterly right-of-way line of
52.16Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
52.17Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
52.18westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
52.19and there terminating, provided that the project area includes the rights-of-way for all
52.20present and future highway interchanges abutting the area described in this paragraph, and
52.21may include any additional property necessary to cause the property included in the tax
52.22increment financing district to consist of complete parcels.
52.23(d) "Soil deficiency district" means a type of tax increment financing district
52.24consisting of a portion of the project area in which the city finds by resolution that the
52.25following conditions exist:
52.26(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
52.27the district require substantial filling, grading, or other physical preparation for use; and
52.28(2) the estimated cost of the physical preparation under clause (1), but excluding
52.29costs directly related to roads as defined in Minnesota Statutes, section 160.01, and
52.30local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1,
52.31clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land
52.32before completion of the preparation.
52.33    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment
52.34financing plan for a district, the rules under this section apply to a redevelopment
52.35district, renewal and renovation district, soil condition district, or soil deficiency district
52.36established by the city or a development authority of the city in the project area.
53.1(b) Prior to or upon the adoption of the first tax increment plan subject to the special
53.2rules under this subdivision, the city must find by resolution that parcels consisting
53.3of at least 80 percent of the acreage of the project area, excluding street and railroad
53.4rights-of-way, are characterized by one or more of the following conditions:
53.5(1) peat or other soils with geotechnical deficiencies that impair development of
53.6commercial buildings or infrastructure;
53.7(2) soils or terrain that require substantial filling in order to permit the development
53.8of commercial buildings or infrastructure;
53.9(3) landfills, dumps, or similar deposits of municipal or private waste;
53.10(4) quarries or similar resource extraction sites;
53.11(5) floodway; and
53.12(6) substandard buildings, within the meaning of Minnesota Statutes, section
53.13469.174, subdivision 10 .
53.14(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by
53.15the relevant condition if at least 70 percent of the area of the parcel contains the relevant
53.16condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
53.17substandard buildings if substandard buildings occupy at least 30 percent of the area
53.18of the parcel.
53.19(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3,
53.20is extended to eight years for any district, and Minnesota Statutes, section 469.1763,
53.21subdivision 4 , does not apply to any district.
53.22(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section
53.23469.1763, subdivision 2 , paragraph (a), not more than 40 percent of the total revenue
53.24derived from tax increments paid by properties in any district, measured over the life of
53.25the district, may be expended on activities outside the district but within the project area.
53.26(f) For a soil deficiency district:
53.27(1) increments may be collected through 20 years after the receipt by the authority of
53.28the first increment from the district;
53.29(2) increments may be used only to:
53.30(i) acquire parcels on which the improvements described in item (ii) will occur;
53.31(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
53.32additional cost of installing public improvements directly caused by the deficiencies; and
53.33(iii) pay for the administrative expenses of the authority allocable to the district; and
53.34(3) any parcel acquired with increments from the district must be sold at no less
53.35than their fair market value.
54.1(g) Increments spent for any infrastructure costs, whether inside a district or outside
54.2a district but within the project area, are deemed to satisfy the requirements of Minnesota
54.3Statutes, section 469.176, subdivision 4j.
54.4(h) The authority to approve tax increment financing plans to establish tax increment
54.5financing districts under this section expires June 30, 2020.
54.6EFFECTIVE DATE.This section is effective upon approval by the governing
54.7body of the city of Maple Grove and compliance with the requirements of Minnesota
54.8Statutes, section 645.021.

54.9    Sec. 3. CITY OF ANOKA; TIF DISTRICT.
54.10For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
54.11the city of Anoka's Greens of Anoka redevelopment tax increment financing district is
54.12deemed to be certified on June 29, 2012, rather than its actual certification date of July 2,
54.132012, and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4,
54.14apply as if the district were certified on that date.
54.15EFFECTIVE DATE.This section is effective upon approval by the governing body
54.16of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
54.17645.021, subdivisions 2 and 3.

54.18    Sec. 4. CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
54.19Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision
54.203, the chief clerical officer of the city of Edina may file the city's certificate of its approval
54.21of Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate
54.22is so filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3,
54.23are otherwise complied with, the special law is deemed approved, and all actions taken
54.24by the city prior to the effective date of this section in reliance on Laws 2014, chapter
54.25308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article
54.266, section 8, and this act.
54.27EFFECTIVE DATE.This section is effective the day following final enactment
54.28without local approval as an amendment to the provisions of Laws 2014, chapter 308,
54.29article 6, section 8.

54.30    Sec. 5. CITY OF NORTHFIELD; TAX INCREMENT FINANCING.
54.31The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
54.32activities must be undertaken within a five-year period from the date of certification of a
55.1tax increment financing district, are considered to be met for the Riverfront Tax Increment
55.2Financing District in the city of Northfield, if the activities are undertaken prior to July
55.312, 2017.
55.4EFFECTIVE DATE.This section is effective the day after the governing body of
55.5the city of Northfield and its chief clerical officer comply with Minnesota Statutes, section
55.6645.021, subdivisions 2 and 3.

55.7ARTICLE 5

55.8IRON RANGE RESOURCES AND REHABILITATION BOARD

55.9    Section 1. Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read:
55.10    Subd. 7. Iron Range resources and rehabilitation Board. After seeking
55.11a recommendation from the Iron Range Resources and Rehabilitation Board, the
55.12commissioner of Iron Range resources and rehabilitation Board may purchase insurance it
55.13considers the commissioner deems necessary and appropriate to insure facilities operated
55.14by the board.

55.15    Sec. 2. Minnesota Statutes 2014, section 116J.424, is amended to read:
55.16116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
55.17CONTRIBUTION.
55.18The commissioner of the Iron Range resources and rehabilitation Board with
55.19approval by the board, shall provide an equal match for any loan or equity investment
55.20made for a facility located in the tax relief area defined in section 273.134, paragraph (b),
55.21by the Minnesota minerals 21st century fund created by section 116J.423. The match may
55.22be in the form of a loan or equity investment, notwithstanding whether the fund makes
55.23a loan or equity investment. The state shall not acquire an equity interest because of an
55.24equity investment or loan by the board under this section and the board at its sole discretion
55.25commissioner, after consultation with the Iron Range Resources and Rehabilitation Board,
55.26shall have the sole discretion to decide what interest it the board acquires in a project. The
55.27commissioner of employment and economic development may require a commitment
55.28from the board commissioner to make the match prior to disbursing money from the fund.

55.29    Sec. 3. Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read:
55.30    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
55.31have the meanings given them in this subdivision.
56.1(b) "Area development rate" means a rate schedule established by a utility that
56.2provides customers within an area development zone service under a base utility rate
56.3schedule, except that charges may be reduced from the base rate as agreed upon by the
56.4utility and the customer consistent with this section.
56.5(c) "Area development zone" means a contiguous or noncontiguous area designated
56.6by an authority or municipality for development or redevelopment and within which one
56.7of the following conditions exists:
56.8(1) obsolete buildings not suitable for improvement or conversion or other identified
56.9hazards to the health, safety, and general well-being of the community;
56.10(2) buildings in need of substantial rehabilitation or in substandard condition; or
56.11(3) low values and damaged investments.
56.12(d) "Authority" means a rural development financing authority established under
56.13sections 469.142 to 469.151; a housing and redevelopment authority established under
56.14sections 469.001 to 469.047; a port authority established under sections 469.048 to
56.15469.068 ; an economic development authority established under sections 469.090
56.16to 469.108; a redevelopment agency as defined in sections 469.152 to 469.165; the
56.17commissioner of Iron Range resources and rehabilitation, acting after consultation
56.18with the board established under section 298.22; a municipality that is administering a
56.19development district created under sections 469.124 to 469.133 or any special law; a
56.20municipality that undertakes a project under sections 469.152 to 469.165, except a town
56.21located outside the metropolitan area as defined in section 473.121, subdivision 2, or with
56.22a population of 5,000 persons or less; or a municipality that exercises the powers of a port
56.23authority under any general or special law.
56.24(e) "Municipality" means a city, however organized, and, with respect to a project
56.25undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
56.26sections 469.152 to 469.165, and, with respect to a project undertaken under sections
56.27469.142 to 469.151 or a county or multicounty project undertaken under sections 469.004
56.28to 469.008, also includes any county.

56.29    Sec. 4. Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read:
56.30    Subd. 8. Municipality. "Municipality" means a city, town, or township located
56.31in whole or part within the area. If a municipality is located partly within and partly
56.32without the area, the references in sections 276A.01 to 276A.09 to property or any portion
56.33thereof subject to taxation or taxing jurisdiction within the municipality are to the property
56.34or portion thereof that is located in that portion of the municipality within the area,
56.35except that the fiscal capacity of the municipality must be computed upon the basis of the
57.1valuation and population of the entire municipality. A municipality shall be excluded from
57.2the area if its municipal comprehensive zoning and planning policies conscientiously
57.3exclude most commercial-industrial development, for reasons other than preserving an
57.4agricultural use. The commissioner of Iron Range resources and rehabilitation Board and
57.5the commissioner of revenue shall jointly make this determination annually and shall
57.6notify those municipalities that are ineligible to participate in the tax base sharing program
57.7provided in this chapter for the following year. Before making the joint determination, the
57.8commissioner of Iron Range resources and rehabilitation shall seek a recommendation
57.9from the Iron Range Resources and Rehabilitation Board.

57.10    Sec. 5. Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read:
57.11    Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up
57.12to 25 percent of the areawide levy certified by the commissioner of Iron Range resources
57.13and rehabilitation, after seeking a recommendation from the Iron Range Resources and
57.14Rehabilitation Board, to be used for the purposes of the Iron Range school consolidation
57.15and cooperatively operated school account under section 298.28, subdivision 7a.
57.16(b) The allocation under paragraph (a) shall only be made after the commissioner of
57.17Iron Range resources and rehabilitation, after seeking a recommendation from the Iron
57.18Range Resources and Rehabilitation Board, has certified by June 30 that the Iron Range
57.19school consolidation and cooperatively operated account has insufficient funds to make
57.20payments as authorized under section 298.28, subdivision 7a.

57.21    Sec. 6. Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read:
57.22    Subdivision 1. Development. In any county where the county board by proper
57.23resolution sets aside funds for forest development pursuant to section 282.08, clause (5),
57.24item (i), or section 459.06, subdivision 2, the commissioner of Iron Range resources
57.25and rehabilitation with the approval of the, after seeking a recommendation from the
57.26Iron Range Resources and Rehabilitation Board, may upon request of the county board
57.27assist said county in carrying out any project for the long range development of its forest
57.28resources through matching of funds or otherwise.

57.29    Sec. 7. Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read:
57.30    Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue
57.31of the state of Minnesota, except that when used in sections 298.22 to 298.227, and
57.32298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources
57.33and rehabilitation.

58.1    Sec. 8. Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read:
58.2    Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range
58.3Resources and Rehabilitation Board consists of the state senators and representatives
58.4elected from state senatorial or legislative districts in which one-third or more of the
58.5residents reside in a taconite assistance area as defined in section 273.1341. One additional
58.6state senator shall also be appointed by the senate Subcommittee on Committees of the
58.7Committee on Rules and Administration. All expenditures and projects made by the
58.8commissioner shall first be submitted to the board for approval. The board shall recommend
58.9approval or disapproval or modification of the expenditures and projects. The expenses
58.10of the board shall be paid by the state from the funds raised pursuant to this section.
58.11Members of the board may be reimbursed for expenses in the manner provided in sections
58.123.099 , subdivision 1, and 3.101, and may receive per diem payments during the interims
58.13between legislative sessions in the manner provided in section 3.099, subdivision 1.
58.14The members shall be appointed in January of every odd-numbered year, and shall
58.15serve until January of the next odd-numbered year. Vacancies on the board shall be filled
58.16in the same manner as original members were chosen.

58.17    Sec. 9. Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read:
58.18    Subd. 5a. Forest trust. The commissioner, upon approval by after requesting a
58.19recommendation from the board, may purchase forest lands in the taconite assistance area
58.20defined in under section 273.1341 with funds specifically authorized for the purchase. The
58.21acquired forest lands must be held in trust for the benefit of the citizens of the taconite
58.22assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall
58.23be managed and developed for recreation and economic development purposes. The
58.24commissioner, upon approval by after requesting a recommendation from the board,
58.25may sell forest lands purchased under this subdivision if the board finds commissioner
58.26determines that the sale advances the purposes of the trust. Proceeds derived from the
58.27management or sale of the lands and from the sale of timber or removal of gravel or
58.28other minerals from these forest lands shall be deposited into an Iron Range Miners'
58.29Memorial Forest account that is established within the state financial accounts. Funds may
58.30be expended from the account upon approval by after the commissioner has sought a
58.31recommendation from the board, to purchase, manage, administer, convey interests in,
58.32and improve the forest lands. With approval by After the commissioner has sought a
58.33recommendation from the board, money in the Iron Range Miners' Memorial Forest
58.34account may be transferred into the corpus of the Douglas J. Johnson economic protection
58.35trust fund established under sections 298.291 to 298.294. The property acquired under
59.1the authority granted by this subdivision and income derived from the property or the
59.2operation or management of the property are exempt from taxation by the state or its
59.3political subdivisions while held by the forest trust.

59.4    Sec. 10. Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read:
59.5    Subd. 6. Private entity participation. After seeking a recommendation from the
59.6board, the commissioner may acquire an equity interest in any project for which it the
59.7commissioner provides funding. The commissioner may establish, participate in the
59.8management of, and dispose of the assets of charitable foundations, nonprofit limited
59.9liability companies, and nonprofit corporations associated with any project for which it
59.10provides funding, including specifically, but without limitation, a corporation within the
59.11meaning of section 317A.011, subdivision 6.

59.12    Sec. 11. Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read:
59.13    Subd. 8. Spending priority. In making or approving recommending any
59.14expenditures on programs or projects, the commissioner and the board shall give the
59.15highest priority to programs and projects that target relief to those areas of the taconite
59.16assistance area as defined in section 273.1341, that have the largest percentages of job
59.17losses and population losses directly attributable to the economic downturn in the taconite
59.18industry since the 1980s. The commissioner and the board shall compare the 1980
59.19population and employment figures with the 2000 population and employment figures,
59.20and shall specifically consider the job losses in 2000 and 2001 resulting from the closure
59.21of LTV Steel Mining Company, in making or approving recommending expenditures
59.22consistent with this subdivision, as well as the areas of residence of persons who suffered
59.23job loss for which relief is to be targeted under this subdivision. The commissioner
59.24may lease, for a term not exceeding 50 years and upon the terms determined by the
59.25commissioner and approved after seeking review by the board, surface and mineral
59.26interests owned or acquired by the state of Minnesota acting by and through the office of
59.27the commissioner of Iron Range resources and rehabilitation within those portions of the
59.28taconite assistance area affected by the closure of the LTV Steel Mining Company facility
59.29near Hoyt Lakes. The payments and royalties from these leases must be deposited into the
59.30fund established in section 298.292. This subdivision supersedes any other conflicting
59.31provisions of law and does not preclude the commissioner and the board from making
59.32expenditures for programs and projects in other areas after seeking review by the board.

59.33    Sec. 12. Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read:
60.1    Subd. 10. Sale or privatization of functions. The commissioner of Iron
60.2Range resources and rehabilitation may not sell or privatize the Ironworld Discovery
60.3Center or Giants Ridge Golf and Ski Resort without prior approval by first seeking a
60.4recommendation from the board.

60.5    Sec. 13. Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read:
60.6    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation
60.7shall annually prepare a budget for operational expenditures, programs, and projects, and
60.8submit it to the Iron Range Resources and Rehabilitation Board for a recommendation.
60.9After the budget is approved by the board and the governor, the commissioner may spend
60.10money in accordance with the approved budget.

60.11    Sec. 14. Minnesota Statutes 2014, section 298.221, is amended to read:
60.12298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
60.13(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
60.14pursuant to the terms of any contract entered into by the state under authority of section
60.15298.22 and any fees which may, in the discretion of the commissioner of Iron Range
60.16resources and rehabilitation, be charged in connection with any project pursuant to that
60.17section as amended, shall be deposited in the state treasury to the credit of the Iron Range
60.18Resources and Rehabilitation Board account in the special revenue fund and are hereby
60.19appropriated for the purposes of section 298.22.
60.20(b) Notwithstanding section 16A.013, merchandise may be accepted by the
60.21commissioner of the Iron Range Resources and Rehabilitation Board for payment of
60.22advertising contracts if the commissioner determines that the merchandise can be used
60.23for special event prizes or mementos at facilities operated by the board. Nothing in this
60.24paragraph authorizes the commissioner or a member of the board to receive merchandise
60.25for personal use.
60.26(c) All fees charged by the commissioner in connection with public use of the
60.27state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
60.28revenues derived by the commissioner from the operation or lease of those facilities
60.29and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
60.30Recreation Area must be deposited into an Iron Range Resources and Rehabilitation
60.31Board account that is created within the state enterprise fund. All funds deposited in the
60.32enterprise fund account are appropriated to the commissioner to be expended, subject to
60.33approval by after seeking a recommendation from the board, as follows:
61.1(1) to pay costs associated with the construction, equipping, operation, repair, or
61.2improvement of the Giants Ridge Recreation Area facilities or lands;
61.3(2) to pay principal, interest and associated bond issuance, reserve, and servicing
61.4costs associated with the financing of the facilities; and
61.5(3) to pay the costs of any other project authorized under section 298.22.

61.6    Sec. 15. Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:
61.7    Subd. 3. Project approval. All projects authorized by this section shall be submitted
61.8by the commissioner to the Iron Range Resources and Rehabilitation Board for approval
61.9by a recommendation from the board. Prior to the commencement of a project involving
61.10the exercise by the commissioner of any authority of sections 469.174 to 469.179, the
61.11governing body of each municipality in which any part of the project is located and the
61.12county board of any county containing portions of the project not located in an incorporated
61.13area shall by majority vote approve or disapprove the project. Any project approved by
61.14the board commissioner and the applicable governing bodies, if any, together with detailed
61.15information concerning the project, its costs, the sources of its funding, and the amount of
61.16any bonded indebtedness to be incurred in connection with the project, shall be transmitted
61.17to the governor, who shall approve, disapprove, or return the proposal for additional
61.18consideration within 30 days of receipt. No project authorized under this section shall be
61.19undertaken, and no obligations shall be issued and no tax increments shall be expended for
61.20a project authorized under this section until the project has been approved by the governor.

61.21    Sec. 16. Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read:
61.22    Subd. 4. Project approval. After seeking a recommendation from the board and,
61.23the commissioner shall by August 1 each year prepare a list of projects to be funded from
61.24the money appropriated in this section with necessary supporting information including
61.25descriptions of the projects, plans, and cost estimates. A project must not be approved by
61.26the board commissioner unless it the commissioner finds that:
61.27(1) the project will materially assist, directly or indirectly, the creation of additional
61.28long-term employment opportunities;
61.29(2) the prospective benefits of the expenditure exceed the anticipated costs; and
61.30(3) in the case of assistance to private enterprise, the project will serve a sound
61.31business purpose.
61.32Each project must be approved by the board and the commissioner of Iron Range
61.33resources and rehabilitation. The list of projects must be submitted to the governor,
61.34who shall, by November 15 of each year, approve, disapprove, or return for further
62.1consideration, each project. The money for a project may be spent only upon approval of
62.2the project by the governor. The board commissioner may submit supplemental projects
62.3for approval at any time, after seeking a recommendation from the board.

62.4    Sec. 17. Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read:
62.5    Subd. 5. Advisory committees. Before submission to the board of a proposal for
62.6a project for expenditure of money appropriated under this section, The commissioner
62.7of Iron Range resources and rehabilitation shall appoint a technical advisory committee
62.8consisting of at least seven persons who are knowledgeable in areas related to the
62.9objectives of the proposal. If the project involves investment in a scientific research
62.10proposal, at least four of the committee members must be knowledgeable in the specific
62.11scientific research area relating to the project. Members of the committees must be
62.12compensated as provided in section 15.059, subdivision 3. The board commissioner shall
62.13not act on a proposal for a request for expenditure of money appropriated under this
62.14section until it has received the commissioner has sought review from the board of the
62.15evaluation and recommendations of the technical advisory committee.

62.16    Sec. 18. Minnesota Statutes 2014, section 298.2213, subdivision 6, is amended to read:
62.17    Subd. 6. Use of repayments and earnings. Principal and interest received in
62.18repayment of loans made under this section must be deposited in the state treasury
62.19and are appropriated to the board for the purposes of this section northeast Minnesota
62.20economic development fund account in the special revenue fund in the state treasury. The
62.21commissioner of Iron Range resources and rehabilitation must seek a recommendation
62.22from the Iron Range Resources and Rehabilitation Board for any use of funds appropriated
62.23under this section.

62.24    Sec. 19. Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read:
62.25    Subdivision 1. Creation; purposes. A fund called the taconite environmental
62.26protection fund is created for the purpose of reclaiming, restoring and enhancing those
62.27areas of northeast Minnesota located within the taconite assistance area defined in section
62.28273.1341 , that are adversely affected by the environmentally damaging operations
62.29involved in mining taconite and iron ore and producing iron ore concentrate and for the
62.30purpose of promoting the economic development of northeast Minnesota. The taconite
62.31environmental protection fund shall be used for the following purposes:
63.1(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
63.2Board determines are in need of study and which will determine the environmental
63.3problems requiring remedial action;
63.4(2) reclamation, restoration, or reforestation of mine lands not otherwise provided
63.5for by state law;
63.6(3) local economic development projects but only if those projects are approved by
63.7the board commissioner after seeking a recommendation of the projects from the board,
63.8and public works, including construction of sewer and water systems located within the
63.9taconite assistance area defined in section 273.1341;
63.10(4) monitoring of mineral industry related health problems among mining employees;
63.11(5) local public works projects under section 298.227, paragraph (c); and
63.12(6) local public works projects as provided under this clause. The following amounts
63.13shall be distributed in 2009 based upon the taxable tonnage of production in 2008:
63.14(i) .4651 cent per ton to the city of Aurora for street repair and renovation;
63.15(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
63.16improvements to the south side industrial site;
63.17(iii) .6460 cent per ton to the city of Buhl for street repair;
63.18(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;
63.19(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
63.20upgrades;
63.21(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
63.22upgrades;
63.23(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;
63.24(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
63.25modifications for the miners' memorial;
63.26(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;
63.27(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;
63.28(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;
63.29(xii) .6460 cent per ton to the town of Balkan for community center repairs;
63.30(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;
63.31(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;
63.32(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;
63.33(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;
63.34(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;
63.35(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;
63.36(xix) .3230 cent per ton to Lake County for trail construction;
64.1(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand
64.2Marais;
64.3(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure
64.4improvements;
64.5(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;
64.6(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer
64.7improvements along Gayley Avenue;
64.8(xxiv) .3876 cent per ton to the city of Marble for construction of a city
64.9administration facility;
64.10(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the
64.11community center;
64.12(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure
64.13upgrades;
64.14(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades
64.15along Depot Street;
64.16(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
64.17improvements;
64.18(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
64.19infrastructure upgrades at Pokegema Golf Course and Park Place;
64.20(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades
64.21for 1st Avenue from River Road to 3rd Street SE; and
64.22(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing
64.23at Highway 2 and County Road 62.

64.24    Sec. 20. Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read:
64.25    Subd. 2. Administration. (a) The taconite area environmental protection fund shall
64.26be administered by the commissioner of the Iron Range Resources and Rehabilitation
64.27Board. The commissioner shall by September 1 of each year submit to the board a list
64.28of projects to be funded from the taconite area environmental protection fund, with such
64.29supporting information including description of the projects, plans, and cost estimates as
64.30may be necessary.
64.31    (b) Each year no less than one-half of the amounts deposited into the taconite
64.32environmental protection fund must be used for public works projects, including
64.33construction of sewer and water systems, as specified under subdivision 1, clause (3).
64.34After seeking a recommendation from the Iron Range Resources and Rehabilitation Board,
64.35the commissioner may waive the requirements of this paragraph.
65.1    (c) Upon approval by the board, The list of projects approved by the commissioner
65.2under this subdivision, after the commissioner has sought review of the projects by the
65.3board, shall be submitted to the governor by November 1 of each year. By December 1 of
65.4each year, the governor shall approve or disapprove, or return for further consideration,
65.5each project. Funds for a project may be expended only upon approval of the project by
65.6the board commissioner and the governor. The commissioner may submit supplemental
65.7projects to the board and for approval from the governor for approval after seeking review
65.8of the supplemental projects from the board at any time.

65.9    Sec. 21. Minnesota Statutes 2014, section 298.227, is amended to read:
65.10298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
65.11    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
65.12production and qualifying sales under section 298.28, subdivision 9a, shall be held by
65.13the Iron Range Resources and Rehabilitation Board in a separate taconite economic
65.14development fund for each taconite and direct reduced ore producer. Money from the
65.15fund for each producer shall be released by the commissioner after review by a joint
65.16committee consisting of an equal number of representatives of the salaried employees and
65.17the nonsalaried production and maintenance employees of that producer. The District 11
65.18director of the United States Steelworkers of America, on advice of each local employee
65.19president, shall select the employee members. In nonorganized operations, the employee
65.20committee shall be elected by the nonsalaried production and maintenance employees. The
65.21review must be completed no later than six months after the producer presents a proposal
65.22for expenditure of the funds to the committee. The funds held pursuant to this section may
65.23be released only for workforce development and associated public facility improvement,
65.24or for acquisition of plant and stationary mining equipment and facilities for the producer
65.25or for research and development in Minnesota on new mining, or taconite, iron, or steel
65.26production technology, but only if the producer provides a matching expenditure equal to
65.27the amount of the distribution to be used for the same purpose beginning with distributions
65.28in 2014. Effective for proposals for expenditures of money from the fund beginning May
65.2926, 2007, the commissioner may not release the funds before the next scheduled meeting
65.30of the board. If a proposed expenditure is not approved by the commissioner, after
65.31seeking a recommendation from the board, the funds must be deposited in the Taconite
65.32Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses
65.33money which has been released from the fund prior to May 26, 2007 to procure haulage
65.34trucks, mobile equipment, or mining shovels, and the producer removes the piece of
65.35equipment from the taconite tax relief area defined in section 273.134 within ten years
66.1from the date of receipt of the money from the fund, a portion of the money granted
66.2from the fund must be repaid to the taconite economic development fund. The portion
66.3of the money to be repaid is 100 percent of the grant if the equipment is removed from
66.4the taconite tax relief area within 12 months after receipt of the money from the fund,
66.5declining by ten percent for each of the subsequent nine years during which the equipment
66.6remains within the taconite tax relief area. If a taconite production facility is sold after
66.7operations at the facility had ceased, any money remaining in the fund for the former
66.8producer may be released to the purchaser of the facility on the terms otherwise applicable
66.9to the former producer under this section. If a producer fails to provide matching funds
66.10for a proposed expenditure within six months after the commissioner approves release
66.11of the funds, the funds are available for release to another producer in proportion to the
66.12distribution provided and under the conditions of this section. Any portion of the fund
66.13which is not released by the commissioner within one year of its deposit in the fund shall
66.14be divided between the taconite environmental protection fund created in section 298.223
66.15and the Douglas J. Johnson economic protection trust fund created in section 298.292 for
66.16placement in their respective special accounts. Two-thirds of the unreleased funds shall be
66.17distributed to the taconite environmental protection fund and one-third to the Douglas J.
66.18Johnson economic protection trust fund.
66.19    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
66.20distributions and the review process, an amount equal to ten cents per taxable ton of
66.21production in 2007, for distribution in 2008 only, that would otherwise be distributed
66.22under paragraph (a), may be used for a loan or grant for the cost of providing for a
66.23value-added wood product facility located in the taconite tax relief area and in a county
66.24that contains a city of the first class. This amount must be deducted from the distribution
66.25under paragraph (a) for which a matching expenditure by the producer is not required. The
66.26granting of the loan or grant is subject to approval by the board. If the money is provided
66.27as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213,
66.28subdivision 3 . (ii) Repayments of the loan and interest, if any, must be deposited in the
66.29taconite environment protection fund under sections 298.222 to 298.225. If a loan or
66.30grant is not made under this paragraph by July 1, 2012, the amount that had been made
66.31available for the loan under this paragraph must be transferred to the taconite environment
66.32protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the
66.33fund established under this section that exceeds ten cents per ton is available to qualifying
66.34producers under paragraph (a) on a pro rata basis.
66.35(c) Repayment or transfer of money to the taconite environmental protection fund
66.36under paragraph (b), item (ii), must be allocated by the commissioner of Iron Range
67.1resources and rehabilitation, after seeking a recommendation from the Iron Range
67.2Resources and Rehabilitation Board for public works projects in house legislative districts
67.3in the same proportion as taxable tonnage of production in 2007 in each house legislative
67.4district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for
67.5distribution in 2008. Notwithstanding any other law to the contrary, expenditures under
67.6this paragraph do not require approval by the governor. For purposes of this paragraph,
67.7"house legislative districts" means the legislative districts in existence on May 15, 2009.

67.8    Sec. 22. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:
67.9    Subd. 7a. Iron Range school consolidation and cooperatively operated school
67.10account. The following amounts must be allocated to the Iron Range Resources and
67.11Rehabilitation Board to be deposited in the Iron Range school consolidation and
67.12cooperatively operated school account that is hereby created:
67.13(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
67.14imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per
67.15taxable ton of the tax imposed under section 298.24;
67.16(2) the amount as determined under section 298.17, paragraph (b), clause (3);
67.17(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
67.18proceeds attributable to the increase in the implicit price deflator as provided in section
67.19298.24, subdivision 1 , with the remaining one-third to be distributed to the Douglas J.
67.20Johnson economic protection trust fund;
67.21(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the
67.22increased tax proceeds attributable to the increase in the implicit price deflator as provided
67.23in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining
67.24one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
67.25(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the
67.26increased tax proceeds attributable to the increase in the implicit price deflator as provided
67.27in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the
67.28remaining one-third to be distributed to the Douglas J. Johnson economic protection
67.29trust fund; and
67.30(4) any other amount as provided by law.
67.31Expenditures from this account may be approved as ongoing annual expenditures and
67.32shall be made only to provide disbursements to assist school districts with the payment of
67.33bonds that were issued for qualified school projects, or for any other school disbursement
67.34as approved by the commissioner after the commissioner has sought review of the
67.35expenditures by the Iron Range Resources and Rehabilitation Board. For purposes of this
68.1section, "qualified school projects" means school projects within the taconite assistance
68.2area as defined in section 273.1341, that were (1) approved, by referendum, after April 3,
68.32006; and (2) approved by the commissioner of education pursuant to section 123B.71.
68.4Beginning in fiscal year 2019, the disbursement to school districts for payments for
68.5bonds issued under section 123A.482, subdivision 9, must be increased each year to
68.6offset any reduction in debt service equalization aid that the school district qualifies for in
68.7that year, under section 123B.53, subdivision 6, compared with the amount the school
68.8district qualified for in fiscal year 2018.
68.9No expenditure under this section shall be made unless approved by seven members
68.10of the commissioner after seeking review of the expenditure from the Iron Range
68.11Resources and Rehabilitation Board.

68.12    Sec. 23. Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:
68.13    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must
68.14be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
68.15an Iron Range higher education account that is hereby created, to be used for higher
68.16education programs conducted at educational institutions in the taconite assistance area
68.17defined in section 273.1341. The Iron Range Higher Education committee under section
68.18298.2214, and the Iron Range Resources and Rehabilitation Board commissioner must
68.19approve all expenditures from the account, after seeking review and recommendation of
68.20the expenditures from the Iron Range Resources and Rehabilitation Board.

68.21    Sec. 24. Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read:
68.22    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
68.23fund may be used for the following purposes:
68.24    (1) to provide loans, loan guarantees, interest buy-downs and other forms of
68.25participation with private sources of financing, but a loan to a private enterprise shall be
68.26for a principal amount not to exceed one-half of the cost of the project for which financing
68.27is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
68.28lesser of eight percent or an interest rate three percentage points less than a full faith
68.29and credit obligation of the United States government of comparable maturity, at the
68.30time that the loan is approved;
68.31    (2) to fund reserve accounts established to secure the payment when due of the
68.32principal of and interest on bonds issued pursuant to section 298.2211;
68.33    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
68.34on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
69.1or retrofitting heating facilities in connection with district heating systems or systems
69.2utilizing alternative energy sources;
69.3    (4) to invest in a venture capital fund or enterprise that will provide capital to other
69.4entities that are engaging in, or that will engage in, projects or programs that have the
69.5purposes set forth in subdivision 1. No investments may be made in a venture capital fund
69.6or enterprise unless at least two other unrelated investors make investments of at least
69.7$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
69.8J. Johnson economic protection trust fund may not exceed the amount of the largest
69.9investment by an unrelated investor in the venture capital fund or enterprise. For purposes
69.10of this subdivision, an "unrelated investor" is a person or entity that is not related to
69.11the entity in which the investment is made or to any individual who owns more than 40
69.12percent of the value of the entity, in any of the following relationships: spouse, parent,
69.13child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
69.14the value of all interests in it. For purposes of determining the limitations under this
69.15clause, the amount of investments made by an investor other than the Douglas J. Johnson
69.16economic protection trust fund is the sum of all investments made in the venture capital
69.17fund or enterprise during the period beginning one year before the date of the investment
69.18by the Douglas J. Johnson economic protection trust fund; and
69.19    (5) to purchase forest land in the taconite assistance area defined in section 273.1341
69.20to be held and managed as a public trust for the benefit of the area for the purposes
69.21authorized in section 298.22, subdivision 5a. Property purchased under this section may
69.22be sold by the commissioner upon approval by after seeking a recommendation from
69.23the board. The net proceeds must be deposited in the trust fund for the purposes and
69.24uses of this section.
69.25    Money from the trust fund shall be expended only in or for the benefit of the taconite
69.26assistance area defined in section 273.1341.

69.27    Sec. 25. Minnesota Statutes 2014, section 298.294, is amended to read:
69.28298.294 INVESTMENT OF FUND.
69.29(a) The trust fund established by section 298.292 shall be invested pursuant to law
69.30by the State Board of Investment and the net interest, dividends, and other earnings arising
69.31from the investments shall be transferred, except as provided in paragraph (b), on the first
69.32day of each month to the trust and shall be included and become part of the trust fund.
69.33The amounts transferred, including the interest, dividends, and other earnings earned
69.34prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
69.351983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
70.1commissioner of Iron Range resources and rehabilitation for deposit in a separate account
70.2for expenditure for the purposes set forth in section 298.292. Amounts appropriated
70.3pursuant to this section shall not cancel but shall remain available unless expended.
70.4(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends,
70.5and other earnings under paragraph (a) shall be transferred to a special account. Funds
70.6in the special account are available for loans or grants to businesses, with priority given
70.7to businesses with 25 or fewer employees. Funds may be used for wage subsidies for
70.8up to 52 weeks of up to $5 per hour or other activities, including, but not limited to,
70.9short-term operating expenses and purchase of equipment and materials by businesses
70.10under financial duress, that will create additional jobs in the taconite assistance area
70.11under section 273.1341. Expenditures from the special account must be approved by the
70.12commissioner after seeking a recommendation from the board.
70.13(c) To qualify for a grant or loan, a business must be currently operating and have
70.14been operating for one year immediately prior to its application for a loan or grant, and its
70.15corporate headquarters must be located in the taconite assistance area.

70.16    Sec. 26. Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read:
70.17    Subdivision 1. Project approval. (a) The commissioner of Iron Range resources and
70.18rehabilitation, after seeking a recommendation from the board and commissioner, shall by
70.19August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson
70.20economic protection trust with necessary supporting information including description of
70.21the projects, plans, and cost estimates. These projects shall be consistent with the priorities
70.22established in section 298.292 and shall not be approved by the board commissioner
70.23unless it the commissioner, after seeking a recommendation from the board, finds that:
70.24(a) (1) the project will materially assist, directly or indirectly, the creation of
70.25additional long-term employment opportunities;
70.26(b) (2) the prospective benefits of the expenditure exceed the anticipated costs; and
70.27(c) (3) in the case of assistance to private enterprise, the project will serve a sound
70.28business purpose.
70.29(b) Each project must be approved by over one-half of all of the members of the
70.30board and the commissioner of Iron Range resources and rehabilitation after seeking a
70.31recommendation from the board for the project. The list of projects shall be submitted to
70.32the governor, who shall, by November 15 of each year, approve or disapprove, or return
70.33for further consideration, each project. The money for a project may be expended only
70.34upon approval of the project by the governor. The board commissioner may submit a
71.1supplemental projects project for approval at any time after seeking a recommendation for
71.2the project from the board.

71.3    Sec. 27. Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read:
71.4    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended
71.5on projects and for administration of the trust fund only from the net interest, earnings,
71.6and dividends arising from the investment of the trust at any time, including net interest,
71.7earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
71.8available for use in fiscal year 1983, except that any amount required to be paid out of the
71.9trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
71.10X, section 4, and to make school bond payments and payments to recipients of taconite
71.11production tax proceeds pursuant to section 298.225, may be taken from the corpus of
71.12the trust.
71.13    (b) Additionally, upon recommendation by the commissioner after seeking a
71.14recommendation from the board, up to $13,000,000 from the corpus of the trust may be
71.15made available for use as provided in subdivision 4, and up to $10,000,000 from the
71.16corpus of the trust may be made available for use as provided in section 298.2961.
71.17    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
71.18on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
71.19made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article
71.208, section 17, may be expended on projects. Funds may be expended for projects under
71.21this paragraph only if the project:
71.22    (1) is for the purposes established under section 298.292, subdivision 1, clause
71.23(1) or (2); and
71.24    (2) is approved by two-thirds of all of the members of the commissioner after
71.25seeking a recommendation from the board.
71.26No money made available under this paragraph or paragraph (d) can be used for
71.27administrative or operating expenses of the Iron Range Resources and Rehabilitation Board
71.28or expenses relating to any facilities owned or operated by the board on May 18, 2002.
71.29    (d) Upon recommendation by a unanimous vote of all members the commissioner
71.30after seeking a unanimous recommendation of the board, amounts in addition to those
71.31authorized under paragraphs (a), (b), and (c) may be expended on projects described in
71.32section 298.292, subdivision 1.
71.33    (e) Annual administrative costs, not including detailed engineering expenses for the
71.34projects, shall not exceed five percent of the net interest, dividends, and earnings arising
71.35from the trust in the preceding fiscal year.
72.1    (f) Principal and interest received in repayment of loans made pursuant to this
72.2section, and earnings on other investments made under section 298.292, subdivision 2,
72.3clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
72.4are appropriated to the board for the purposes of sections 298.291 to 298.298.
72.5    (g) Additionally, notwithstanding section 298.293, upon the approval of the
72.6commissioner of Iron Range resources and rehabilitation, after seeking a recommendation
72.7from the board, money from the corpus of the trust may be expanded to purchase forest
72.8lands within the taconite assistance area as provided in sections 298.22, subdivision 5a,
72.9and 298.292, subdivision 2, clause (5).

72.10    Sec. 28. Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read:
72.11    Subd. 4. Temporary loan authority. (a) After seeking a recommendation from the
72.12board, the commissioner of Iron Range resources and rehabilitation may recommend that
72.13use up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees,
72.14grants, or equity investments as provided in this subdivision. The money would be
72.15available for loans for construction and equipping of facilities constituting (1) a value
72.16added iron products plant, which may be either a new plant or a facility incorporated into
72.17an existing plant that produces iron upgraded to a minimum of 75 percent iron content or
72.18any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine
72.19or minerals processing plant for any mineral subject to the net proceeds tax imposed
72.20under section 298.015. A loan or loan guarantee under this paragraph may not exceed
72.21$5,000,000 for any facility.
72.22(b) Additionally, the board commissioner of Iron Range resources and rehabilitation
72.23must reserve the first $2,000,000 of the net interest, dividends, and earnings arising
72.24from the investment of the trust after June 30, 1996, to be used for grants, loans, loan
72.25guarantees, or equity investments for the purposes set forth in paragraph (a). This amount
72.26must be reserved until it is used as described in this subdivision.
72.27(c) Additionally, the board commissioner may recommend that up to $5,500,000
72.28from the corpus of the trust may be used for additional grants, loans, loan guarantees, or
72.29equity investments for the purposes set forth in paragraph (a).
72.30(d) The commissioner of Iron Range resources and rehabilitation, after seeking a
72.31recommendation from the board, may require that it the board receive an equity percentage
72.32in any project to which it contributes under this section.

72.33    Sec. 29. Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read:
72.34    Subd. 2. Projects; approval. (a) Projects funded must be for:
73.1    (1) environmentally unique reclamation projects; or
73.2    (2) pit or plant repairs, expansions, or modernizations other than for a value added
73.3iron products plant.
73.4    (b) To be proposed by the board, a project must be approved by Before the
73.5commissioner may propose a project, the commissioner must seek a recommendation
73.6from the board. The money for a project may be spent only upon approval of the project
73.7by the governor. The board commissioner may submit a supplemental projects project for
73.8approval at any time after seeking a recommendation for the project from the board.
73.9    (c) The board commissioner may require that it the board receive an equity
73.10percentage in any project to which it contributes under this section.

73.11    Sec. 30. Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read:
73.12    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions
73.13under section 298.28, subdivision 9b, and to make grants or loans as provided in this
73.14subdivision. Any grant or loan made under this subdivision must first be approved by
73.15the commissioner after seeking a recommendation from the board, established under
73.16section 298.22.
73.17    (b) Distributions received in calendar year 2005 are allocated to the city of Virginia
73.18for improvements and repairs to the city's steam heating system.
73.19    (c) Distributions received in calendar year 2006 are allocated to a project of the
73.20public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
73.21generating plants to the use of biomass products, such as wood.
73.22    (d) Distributions received in calendar year 2007 must be paid to the city of Tower to
73.23be used for the East Two Rivers project in or near the city of Tower.
73.24    (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
73.25must be paid to St. Louis County for deposit in its county road and bridge fund to be
73.26used for relocation of St. Louis County Road 715, commonly referred to as Pike River
73.27Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
73.28grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
73.29maintenance garage on Highway 135, further extending the lines to interconnect with the
73.30city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
73.31years are allocated for projects under section 298.223, subdivision 1.

73.32    Sec. 31. Minnesota Statutes 2014, section 298.298, is amended to read:
73.33298.298 LONG-RANGE PLAN.
74.1Consistent with the policy established in sections 298.291 to 298.298, the Iron
74.2Range Resources and Rehabilitation Board shall prepare and present to the governor and
74.3the legislature by December 31, 2006, a long-range plan for the use of the Douglas J.
74.4Johnson economic protection trust fund for the economic development and diversification
74.5of the taconite assistance area defined in section 273.1341. No project shall be approved
74.6recommended by the Iron Range Resources and Rehabilitation Board which if the board
74.7finds that the project is not consistent with the goals and objectives established in the
74.8long-range plan.

74.9    Sec. 32. Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read:
74.10    Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly
74.11constituted authorities of a taxing district there are in existence reserves of unmined iron
74.12ore located in such district, these authorities may petition the commissioner of Iron Range
74.13resources and rehabilitation Board for authority to petition the county assessor to verify
74.14the existence of such reserves and to ascertain the value thereof by drilling in a manner
74.15consistent with established engineering and geological exploration methods, in order that
74.16such taxing district may be able to forecast in a proper manner its future economic and
74.17fiscal potentials. The commissioner may grant the authority to petition after seeking a
74.18recommendation from the Iron Range Resources and Rehabilitation Board.

74.19    Sec. 33. IRON RANGE RESOURCES AND REHABILITATION BOARD;
74.20EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
74.21(a) "Commissioner" as used in this section means the commissioner of the Iron
74.22Range Resources and Rehabilitation Board unless otherwise specified.
74.23(b) Notwithstanding any law to the contrary, the commissioner, in consultation
74.24with the commissioner of management and budget, shall offer a targeted early separation
74.25incentive program for employees of the commissioner who have attained the age of 60
74.26years or who have received credit for at least 30 years of allowable service under the
74.27provisions of Minnesota Statutes, chapter 352. The commissioner shall also offer a
74.28targeted separation incentive program for employees of the commissioner whose positions
74.29are in support of operations at Giants Ridge and will be eliminated if the agency no longer
74.30directly manages Giants Ridge operations.
74.31(c) The early separation incentive program may include one or more of the following:
74.32(1) employer-paid postseparation health, medical, and dental insurance until age
74.3365; and
75.1(2) cash incentives that may, but are not required to be, used to purchase additional
75.2years of service credit through the Minnesota State Retirement System, to the extent that
75.3the purchases are otherwise authorized by law.
75.4(d) The commissioner shall establish eligibility requirements for employees to
75.5receive an incentive.
75.6(e) The commissioner, consistent with the established program provisions under
75.7paragraph (b), and with the eligibility requirements under paragraph (f), may designate
75.8specific programs or employees as eligible to be offered the incentive program.
75.9(f) Acceptance of the offered incentive must be voluntary on the part of the
75.10employee and must be in writing. The incentive may only be offered at the sole discretion
75.11of the commissioner.
75.12(g) The cost of the incentive is payable solely by funds made available to the
75.13commissioner by law, but only on prior approval of the expenditures by the commissioner,
75.14after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.
75.15(h) Unilateral implementation of this section by the commissioner is not an unfair
75.16labor practice under Minnesota Statutes, chapter 179A.
75.17EFFECTIVE DATE.This section is effective the day following final enactment.
75.18This section is repealed June 30, 2017.

75.19    Sec. 34. REVISOR'S INSTRUCTION.
75.20The revisor of statutes shall identify and propose necessary changes to Minnesota
75.21Statutes and Minnesota Rules that are consistent with the goals of this act to (i) transfer
75.22discretionary approval authority for all expenditures and projects from the Iron Range
75.23Resources and Rehabilitation Board to the commissioner of Iron Range resources and
75.24rehabilitation, and (ii) provide that the commissioner must, in good faith, seek the review
75.25and recommendation of the board, as required, before exercising approval authority. The
75.26revisor shall submit the proposal, in a form ready for introduction, during the 2017 regular
75.27legislative session to the chairs and ranking minority members of the senate and house of
75.28representatives committees with jurisdiction over taxes.

75.29ARTICLE 6

75.30FAMILY AND MEDICAL BENEFITS

75.31    Section 1. Minnesota Statutes 2014, section 13.719, is amended by adding a
75.32subdivision to read:
76.1    Subd. 7. Family and medical insurance data. (a) For the purposes of this
76.2subdivision, the terms used have the meanings given them in section 268B.01.
76.3(b) Data on applicants, family members, or employers under chapter 268B are
76.4private or nonpublic data, provided that the department may share data collected from
76.5applicants with employers or health care providers to the extent necessary to meet the
76.6requirements of chapter 268B or other applicable law.

76.7    Sec. 2. Minnesota Statutes 2014, section 181.940, subdivision 2, is amended to read:
76.8    Subd. 2. Employee. "Employee" means a person who performs services for hire for
76.9an employer from whom a leave is requested under sections 181.940 to 181.944 for:
76.10(1) at least 12 six months preceding the request; and
76.11(2) for an average number of hours per week equal to one-half the full-time
76.12equivalent position in the employee's job classification as defined by the employer's
76.13personnel policies or practices or pursuant to the provisions of a collective bargaining
76.14agreement, during the 12-month six-month period immediately preceding the leave.
76.15For leaves under sections 181.9412 and 181.9413, the periods of time required by
76.16clauses (1) and (2) are 12 months rather than six months.
76.17Employee includes all individuals employed at any site owned or operated by the
76.18employer but does not include an independent contractor.

76.19    Sec. 3. Minnesota Statutes 2014, section 181.940, subdivision 4, is amended to read:
76.20    Subd. 4. Child. "Child" means, except for the purposes of section 181.9411, an
76.21individual under 18 years of age or an individual under age 20 who is still attending
76.22secondary school.

76.23    Sec. 4. Minnesota Statutes 2014, section 181.941, subdivision 4, is amended to read:
76.24    Subd. 4. Continued insurance. The employer must continue to make coverage
76.25available to the employee while on leave of absence under any group insurance policy,
76.26group subscriber contract, or health care plan for the employee and any dependents.
76.27Nothing in this section requires the employer to pay the costs of the insurance or health
76.28care while the employee is on leave of absence. During any period that an employee
76.29takes leave under this section, the employer shall maintain coverage under any group
76.30health plan for the duration of such leave at the level and under the conditions coverage
76.31would have been provided if the employee had continued in employment continuously
76.32for the duration of leave.

77.1    Sec. 5. [181.9411] FAMILY CARE LEAVE.
77.2    Subdivision 1. Definition; family member. For the purpose of this section, "family
77.3member" means an employee's child, adult child, spouse, sibling, parent, foster parent,
77.4mother-in-law, father-in-law, grandchild, grandparent, or stepparent. "Child" means a
77.5child under the age of 18 and includes a biological child, adopted child, or foster child.
77.6    Subd. 2. Definition; health care provider. For the purpose of this section, "health
77.7care provider" means an individual who is licensed, certified, or otherwise authorized
77.8under law to practice in the individual's state of practice as a physician, osteopath,
77.9physician assistant, chiropractor, advanced practice registered nurse, optometrist,
77.10licensed psychologist, licensed independent clinical social worker, dentist, or podiatrist.
77.11"Chiropractor" means only a chiropractor who provides manual manipulation of the spine
77.12to correct a subluxation demonstrated to exist by an x-ray.
77.13    Subd. 3. Definition; serious health condition. For the purpose of this section,
77.14"serious health condition" means an illness, injury, impairment, or physical or mental
77.15condition that involves:
77.16(1) inpatient care in a hospital, hospice, or residential medical care facility; or
77.17(2) continuing treatment by a health care provider.
77.18    Subd. 4. Twelve-week leave. An employer must grant an unpaid leave of absence
77.19to an employee in order to care for a family member with a serious health condition. The
77.20length of the leave shall be determined by the employee, but must not exceed 12 weeks
77.21during any 12-month period, unless agreed to by the employer. The leave provided under
77.22this section may be reduced by any period of leave taken under section 181.941 for the same
77.23period. Leave under this section may be taken intermittently when medically necessary.
77.24    Subd. 5. Terms of leave. The leave shall begin at a time requested by the employee.
77.25The employer may adopt reasonable policies governing the timing of requests for unpaid
77.26leave and may require an employee to provide notice of the need for leave as soon
77.27as practicable. An employer may require that a request for leave be supported by a
77.28certification issued by the health care provider of the family member.
77.29    Subd. 6. No employer retribution. An employer shall not retaliate against an
77.30employee for requesting or obtaining a leave of absence under this section.
77.31    Subd. 7. Continued insurance. During any period that an employee takes leave
77.32under this section, the employer shall maintain coverage under any group health plan for
77.33the duration of such leave at the level and under the conditions coverage would have been
77.34provided if the employee had continued in employment continuously for the duration
77.35of leave.

78.1    Sec. 6. Minnesota Statutes 2014, section 181.942, subdivision 1, is amended to read:
78.2    Subdivision 1. Comparable position. (a) An employee returning from a leave
78.3of absence under section 181.941 or 181.9411 is entitled to return to employment in
78.4the employee's former position or in a position of comparable duties, number of hours,
78.5and pay. An employee returning from a leave of absence longer than one month must
78.6notify a supervisor at least two weeks prior to return from leave. An employee returning
78.7from a leave under section 181.9412 or 181.9413 is entitled to return to employment in
78.8the employee's former position.
78.9(b) If, during a leave under sections 181.940 to 181.944, the employer experiences
78.10a layoff and the employee would have lost a position had the employee not been on
78.11leave, pursuant to the good faith operation of a bona fide layoff and recall system,
78.12including a system under a collective bargaining agreement, the employee is not entitled to
78.13reinstatement in the former or comparable position. In such circumstances, the employee
78.14retains all rights under the layoff and recall system, including a system under a collective
78.15bargaining agreement, as if the employee had not taken the leave.

78.16    Sec. 7. Minnesota Statutes 2014, section 181.943, is amended to read:
78.17181.943 RELATIONSHIP TO OTHER LEAVE.
78.18(a) The length of leave provided under section 181.941 or 181.9411 may be reduced
78.19by any period of:
78.20(1) paid parental, disability, personal, medical, or sick leave, or accrued vacation
78.21provided by the employer so that the total leave does not exceed 12 weeks, unless agreed
78.22to by the employer; or
78.23(2) leave taken for the same purpose by the employee under United States Code,
78.24title 29, chapter 28.
78.25(b) Nothing in sections 181.940 to 181.943 prevents any employer from providing
78.26leave benefits in addition to those provided in sections 181.940 to 181.944 or otherwise
78.27affects an employee's rights with respect to any other employment benefit.
78.28(c) For the purpose of this section, benefits paid under chapter 268B are not provided
78.29by an employer.
78.30(d) An employer may not require an employee to take more than two weeks of paid
78.31parental, disability, personal, medical, or sick leave, or accrued vacation provided by an
78.32employer for the purpose of a leave under section 181.941 or 181.9411, unless agreed to
78.33by an employee. This paragraph applies only to an employee who is eligible for benefits
78.34under chapter 268B based on the same event for which leave is provided under section
78.35181.941 or 181.9411.

79.1    Sec. 8. Minnesota Statutes 2014, section 256J.561, is amended by adding a subdivision
79.2to read:
79.3    Subd. 4. Parents receiving family and medical leave benefits. A parent who
79.4meets the criteria under subdivision 2 and who receives family and medical leave benefits
79.5under chapter 268B is not required to participate in employment services.

79.6    Sec. 9. Minnesota Statutes 2014, section 256J.95, subdivision 3, is amended to read:
79.7    Subd. 3. Eligibility for diversionary work program. (a) Except for the categories
79.8of family units listed in clauses (1) to (8), all family units who apply for cash benefits and
79.9who meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and
79.10must participate in the diversionary work program. Family units or individuals that are
79.11not eligible for the diversionary work program include:
79.12    (1) child only cases;
79.13    (2) single-parent family units that include a child under 12 months of age. A parent
79.14is eligible for this exception once in a parent's lifetime;
79.15    (3) family units with a minor parent without a high school diploma or its equivalent;
79.16    (4) family units with an 18- or 19-year-old caregiver without a high school diploma
79.17or its equivalent who chooses to have an employment plan with an education option;
79.18    (5) family units with a caregiver who received DWP benefits within the 12 months
79.19prior to the month the family applied for DWP, except as provided in paragraph (c);
79.20    (6) family units with a caregiver who received MFIP within the 12 months prior to
79.21the month the family applied for DWP;
79.22    (7) family units with a caregiver who received 60 or more months of TANF
79.23assistance; and
79.24    (8) family units with a caregiver who is disqualified from the work participation
79.25cash benefit program, DWP, or MFIP due to fraud; and
79.26    (9) single-parent family units where a parent is receiving family and medical leave
79.27benefits under chapter 268B.
79.28    (b) A two-parent family must participate in DWP unless both caregivers meet the
79.29criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit
79.30includes a parent who meets the criteria in paragraph (a), clause (6), (7), or (8).
79.31    (c) Once DWP eligibility is determined, the four months run consecutively. If a
79.32participant leaves the program for any reason and reapplies during the four-month period,
79.33the county must redetermine eligibility for DWP.

79.34    Sec. 10. Minnesota Statutes 2014, section 256J.95, subdivision 11, is amended to read:
80.1    Subd. 11. Universal participation required. (a) All DWP caregivers, except
80.2caregivers who meet the criteria in paragraph (d), are required to participate in DWP
80.3employment services. Except as specified in paragraphs (b) and (c), employment plans
80.4under DWP must, at a minimum, meet the requirements in section 256J.55, subdivision 1.
80.5(b) A caregiver who is a member of a two-parent family that is required to participate
80.6in DWP who would otherwise be ineligible for DWP under subdivision 3 may be allowed
80.7to develop an employment plan under section 256J.521, subdivision 2, that may contain
80.8alternate activities and reduced hours.
80.9(c) A participant who is a victim of family violence shall be allowed to develop an
80.10employment plan under section 256J.521, subdivision 3. A claim of family violence must
80.11be documented by the applicant or participant by providing a sworn statement which is
80.12supported by collateral documentation in section 256J.545, paragraph (b).
80.13(d) One parent in a two-parent family unit that has a natural born child under
80.1412 months of age is not required to have an employment plan until the child reaches
80.1512 months of age unless the family unit has already used the exclusion under section
80.16256J.561, subdivision 3, or the previously allowed child under age one exemption under
80.17section 256J.56, paragraph (a), clause (5) if that parent:
80.18(1) receives family and medical leave benefits under chapter 268B; or
80.19(2) has a natural born child under 12 months of age until the child reaches 12 months
80.20of age unless the family unit has already used the exclusion under section 256J.561,
80.21subdivision 3, or the previously allowed child under age one exemption under section
80.22256J.56, paragraph (a), clause (5).
80.23(e) The provision in paragraph (d) ends the first full month after the child reaches
80.2412 months of age. This provision is allowable only once in a caregiver's lifetime. In a
80.25two-parent household, only one parent shall be allowed to use this category.
80.26(f) The participant and job counselor must meet in the month after the month
80.27the child reaches 12 months of age to revise the participant's employment plan. The
80.28employment plan for a family unit that has a child under 12 months of age that has already
80.29used the exclusion in section 256J.561 must be tailored to recognize the caregiving needs
80.30of the parent.

80.31    Sec. 11. Minnesota Statutes 2015 Supplement, section 256P.01, subdivision 3, is
80.32amended to read:
80.33    Subd. 3. Earned income. "Earned income" means cash or in-kind income earned
80.34through the receipt of wages, salary, commissions, bonuses, tips, gratuities, profit from
80.35employment activities, net profit from self-employment activities, payments made by an
81.1employer for regularly accrued vacation or sick leave, severance pay based on accrued
81.2leave time, family and medical leave benefits under chapter 268B, payments from training
81.3programs at a rate at or greater than the state's minimum wage, royalties, honoraria, or
81.4other profit from activity that results from the client's work, service, effort, or labor. The
81.5income must be in return for, or as a result of, legal activity.

81.6    Sec. 12. Minnesota Statutes 2014, section 268.19, subdivision 1, is amended to read:
81.7    Subdivision 1. Use of data. (a) Except as provided by this section, data gathered
81.8from any person under the administration of the Minnesota Unemployment Insurance Law
81.9are private data on individuals or nonpublic data not on individuals as defined in section
81.1013.02 , subdivisions 9 and 12, and may not be disclosed except according to a district court
81.11order or section 13.05. A subpoena is not considered a district court order. These data
81.12may be disseminated to and used by the following agencies without the consent of the
81.13subject of the data:
81.14    (1) state and federal agencies specifically authorized access to the data by state
81.15or federal law;
81.16    (2) any agency of any other state or any federal agency charged with the
81.17administration of an unemployment insurance program;
81.18    (3) any agency responsible for the maintenance of a system of public employment
81.19offices for the purpose of assisting individuals in obtaining employment;
81.20    (4) the public authority responsible for child support in Minnesota or any other
81.21state in accordance with section 256.978;
81.22    (5) human rights agencies within Minnesota that have enforcement powers;
81.23    (6) the Department of Revenue to the extent necessary for its duties under Minnesota
81.24laws;
81.25    (7) public and private agencies responsible for administering publicly financed
81.26assistance programs for the purpose of monitoring the eligibility of the program's recipients;
81.27    (8) the Department of Labor and Industry and the Commerce Fraud Bureau in the
81.28Department of Commerce for uses consistent with the administration of their duties under
81.29Minnesota law;
81.30    (9) the Department of Human Services and the Office of Inspector General and its
81.31agents within the Department of Human Services, including county fraud investigators,
81.32for investigations related to recipient or provider fraud and employees of providers when
81.33the provider is suspected of committing public assistance fraud;
81.34    (10) local and state welfare agencies for monitoring the eligibility of the data subject
81.35for assistance programs, or for any employment or training program administered by those
82.1agencies, whether alone, in combination with another welfare agency, or in conjunction
82.2with the department or to monitor and evaluate the statewide Minnesota family investment
82.3program by providing data on recipients and former recipients of food stamps or food
82.4support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
82.5under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;
82.6    (11) local and state welfare agencies for the purpose of identifying employment,
82.7wages, and other information to assist in the collection of an overpayment debt in an
82.8assistance program;
82.9    (12) local, state, and federal law enforcement agencies for the purpose of
82.10ascertaining the last known address and employment location of an individual who is the
82.11subject of a criminal investigation;
82.12    (13) the United States Immigration and Customs Enforcement has access to data on
82.13specific individuals and specific employers provided the specific individual or specific
82.14employer is the subject of an investigation by that agency;
82.15    (14) the Department of Health for the purposes of epidemiologic investigations;
82.16    (15) the Department of Corrections for the purpose of case planning for preprobation
82.17and postprobation employment tracking of offenders sentenced to probation and
82.18preconfinement and postconfinement employment tracking of committed offenders;
82.19    (16) the state auditor to the extent necessary to conduct audits of job opportunity
82.20building zones as required under section 469.3201; and
82.21    (17) the Office of Higher Education for purposes of supporting program
82.22improvement, system evaluation, and research initiatives including the Statewide
82.23Longitudinal Education Data System; and
82.24    (18) the Family and Medical Benefits Division of the Department of Employment
82.25and Economic Development to be used as necessary to administer chapter 268B.
82.26    (b) Data on individuals and employers that are collected, maintained, or used by
82.27the department in an investigation under section 268.182 are confidential as to data
82.28on individuals and protected nonpublic data not on individuals as defined in section
82.2913.02 , subdivisions 3 and 13, and must not be disclosed except under statute or district
82.30court order or to a party named in a criminal proceeding, administrative or judicial, for
82.31preparation of a defense.
82.32    (c) Data gathered by the department in the administration of the Minnesota
82.33unemployment insurance program must not be made the subject or the basis for any
82.34suit in any civil proceedings, administrative or judicial, unless the action is initiated by
82.35the department.

83.1    Sec. 13. [268B.01] DEFINITIONS.
83.2    Subdivision 1. Scope. For the purposes of this chapter, the terms defined in this
83.3section have the meanings given them.
83.4    Subd. 2. Account. "Account" means the family and medical benefit insurance
83.5account in the special revenue fund in the state treasury under section 268B.02.
83.6    Subd. 3. Applicant. "Applicant" means an individual applying for benefits under
83.7this chapter.
83.8    Subd. 4. Benefit. "Benefit" means monetary payments under this chapter associated
83.9with qualifying bonding, family, or pregnancy events.
83.10    Subd. 5. Commissioner. "Commissioner" means the commissioner of employment
83.11and economic development.
83.12    Subd. 6. Department. "Department" means the Department of Employment and
83.13Economic Development.
83.14    Subd. 7. Employee. "Employee" means an individual for whom taxes are paid on
83.15wages under this chapter.
83.16    Subd. 8. Employer. "Employer" means a person or entity that employed 21 or
83.17more employees within the state at any one time within the last four completed calendar
83.18quarters, other than an employee, required to pay taxes under this chapter.
83.19    Subd. 9. Health care provider. "Health care provider" means an individual who is
83.20licensed, certified, or otherwise authorized under law to practice in the individual's state
83.21of practice as a physician, osteopath, physician assistant, chiropractor, advanced practice
83.22registered nurse, optometrist, licensed psychologist, licensed independent clinical social
83.23worker, dentist, or podiatrist. "Chiropractor" means only a chiropractor who provides
83.24manual manipulation of the spine to correct a subluxation demonstrated to exist by an x-ray.
83.25    Subd. 10. Pregnancy. "Pregnancy" means prenatal care or incapacity of a woman
83.26due to pregnancy, childbirth, or related health conditions.
83.27    Subd. 11. Family care. "Family care" means an applicant caring for a family
83.28member with a serious health condition.
83.29    Subd. 12. Bonding. "Bonding" means a biological or adoptive parent in conjunction
83.30with the birth or adoption of a child, or a foster parent in conjunction with the placement
83.31of a child in foster care.
83.32    Subd. 13. Covered employment. "Covered employment" has the meaning given in
83.33section 268.035, subdivision 12.
83.34    Subd. 14. Noncovered employment. "Noncovered employment" has the meaning
83.35given in section 268.035, subdivision 20.
84.1    Subd. 15. Qualified health care provider. "Qualified health care provider" means
84.2a health care provider who, in the judgment of the commissioner, has the qualifications
84.3necessary to diagnose or treat a particular health condition or conditions associated with
84.4benefits sought under this chapter.
84.5    Subd. 16. Serious health condition. "Serious health condition" means an illness,
84.6injury, impairment, or physical or mental condition that involves:
84.7(1) inpatient care in a hospital, hospice, or residential medical care facility; or
84.8(2) continuing treatment by a health care provider.
84.9    Subd. 17. Wage credits. "Wage credits" has the meaning given in section 268.035,
84.10subdivision 27.
84.11    Subd. 18. High quarter. "High quarter" has the meaning given in section 268.035,
84.12subdivision 19.
84.13    Subd. 19. Maximum weekly benefit amount. "Maximum weekly benefit amount"
84.14means the state's average weekly wage as calculated under section 268.035, subdivision 23.
84.15    Subd. 20. ICD code. "ICD code" means the code under the International
84.16Classification of Diseases, Clinical Modification/Coding System, for the most recent
84.17edition commonly used.
84.18    Subd. 21. Medical benefit program. "Medical benefit program" means the program
84.19administered under this chapter for the collection of taxes and payment of benefits related
84.20to pregnancy benefits.
84.21    Subd. 22. Family benefit program. "Family benefit program" means the program
84.22administered under this chapter for the collection of taxes and payment of benefits related
84.23to family care and bonding.
84.24    Subd. 23. State's average weekly wage. "State's average weekly wage" means the
84.25weekly wage calculated under section 268.035, subdivision 23.
84.26    Subd. 24. Family member. "Family member" means an employee's child, adult
84.27child, spouse, sibling, parent, foster parent, mother-in-law, father-in-law, grandchild,
84.28grandparent, or stepparent.

84.29    Sec. 14. [268B.02] FAMILY AND MEDICAL BENEFIT INSURANCE
84.30PROGRAM CREATION.
84.31    Subdivision 1. Creation. A family and medical benefit insurance program is created
84.32to be administered by the commissioner according to the terms of this chapter.
84.33    Subd. 2. Creation of division. A Family and Medical Benefit Insurance Division is
84.34created within the department under the authority of the commissioner. The commissioner
85.1shall appoint a director of the division. The division shall administer and operate the
85.2benefit program under this chapter.
85.3    Subd. 3. Rulemaking. The commissioner may adopt rules to implement the
85.4provisions of this chapter.
85.5    Subd. 4. Account creation; appropriation. The family and medical benefit
85.6insurance account is created in the special revenue fund in the state treasury. Money in
85.7this account is appropriated to the commissioner to pay benefits under and to administer
85.8this chapter.

85.9    Sec. 15. [268B.03] ELIGIBILITY.
85.10    Subdivision 1. Applicant. An applicant who is providing family care, is bonding,
85.11or is pregnant, who satisfies the conditions of this section is eligible to receive benefits
85.12subject to the provisions of this chapter.
85.13    Subd. 2. Wage credits. An applicant must have sufficient wage credits from an
85.14employer as defined in section 268B.01, subdivision 8, to establish a benefit account under
85.15section 268.07, subdivision 2. Wage credits from an employer during a period in which
85.16the employer has successfully opted out of the benefit program being applied for may not
85.17be used for the purposes of this subdivision.
85.18    Subd. 3. Seven-day qualifying event. The period for which an applicant is seeking
85.19benefits must be or have been based on a single period of at least seven days related to
85.20pregnancy, family care, or bonding. The days need not be consecutive.
85.21    Subd. 4. Ineligible. An applicant is not eligible for benefits for any day in which the
85.22applicant worked for pay.
85.23    Subd. 5. Certification by health care provider. Except for bonding benefits, the
85.24application for benefits must be certified in writing by a qualified health care professional.
85.25    Subd. 6. Records release. An individual whose medical records are necessary to
85.26determine eligibility for benefits under this chapter must sign and date a legally effective
85.27waiver authorizing release to the department of medical and other records to the limited
85.28extent necessary to administer this chapter.
85.29    Subd. 7. Self-employed applicant. (a) To be eligible for benefits, a self-employed
85.30individual who has elected coverage under section 268B.11 must fulfill only the
85.31requirements, to the extent possible, of subdivisions 3, 4, 5, and 6 in addition to the
85.32requirements under paragraph (b).
85.33(b) A self-employed individual must provide documents sufficient to prove the
85.34existence of the individual's business as well as how long that business has been in
86.1operation. The commissioner must determine that the business was not created for the
86.2purpose of obtaining benefits under this chapter.

86.3    Sec. 16. [268B.04] APPLICATIONS.
86.4    Subdivision 1. Application forms. The commissioner must create application
86.5forms, to be available both online and on paper, for each of the following:
86.6(1) an application for family care benefits;
86.7(2) an application for bonding benefits; and
86.8(3) an application for pregnancy benefits.
86.9    Subd. 2. Content of applications. (a) All three application forms under subdivision
86.101 must require, at a minimum, the following:
86.11(1) the name, birth date, home address, and mailing address of the applicant;
86.12(2) the Social Security number, or other unique identification number, of the applicant;
86.13(3) a description of the qualifying event underlying the requested benefit;
86.14(4) the date for which benefits are sought began or will begin, if known;
86.15(5) the date for which benefits are sought ended or will end, if known;
86.16(6) whether the benefits are sought on an intermittent basis;
86.17(7) whether the applicant has applied for or received any other paid benefits, whether
86.18public or private, based on the same event underlying the benefits sought or during the
86.19same time period for which the applicant is seeking benefits;
86.20(8) a description of any benefits listed under clause (7);
86.21(9) a signed and dated certification that all the information contained in the
86.22application is true and correct, to the best of the applicant's knowledge; and
86.23(10) a list of all the applicant's employers for the past 79 weeks.
86.24(b) In addition to the requirements of paragraph (a), an application for family care
86.25benefits must contain, at a minimum, the following:
86.26(1) the name, birth date, home address, and mailing address of the family member
86.27for whom the applicant has provided or will be providing care;
86.28(2) the family member's relationship to the applicant;
86.29(3) the Social Security number, or other unique identification number, of the family
86.30member for whom the applicant has provided or will be providing care;
86.31(4) a certification from the care recipient, or the care recipient's authorized
86.32representative, that all the information contained in the application is true and correct,
86.33to the best of that individual's knowledge;
87.1(5) a legally effective authorization, signed and dated by the care recipient or the
87.2care recipient's authorized representative, for disclosure of medical information needed by
87.3the department to fulfill its duties under this chapter; and
87.4(6) a signed and dated certification by a qualified health care provider treating the
87.5care recipient:
87.6(i) describing the nature of the serious medical condition or conditions of the care
87.7recipient;
87.8(ii) stating whether care by another individual is necessary in the treatment, or will
87.9aid in the recovery, of the care recipient;
87.10(iii) describing the nature of the care under item (ii);
87.11(iv) stating or estimating the dates benefits are needed; and
87.12(v) listing the ICD code or codes, if any, of the serious medical condition or
87.13conditions underlying the application for benefits.
87.14(c) In addition to the requirements of paragraph (a), an application for benefits for
87.15bonding must contain, at a minimum, the following:
87.16(1) proof of the birth, adoption, or placement in foster care, as appropriate, of the
87.17child for whom bonding benefits are sought; and
87.18(2) a legally effective authorization, signed and dated by the applicant or other
87.19authorized representative of the child for whom bonding benefits are sought, for disclosure
87.20of medical information needed by the department to fulfill its duties under this chapter.
87.21(d) In addition to the requirements of paragraph (a), an application for pregnancy
87.22benefits must contain, at a minimum, the following:
87.23(1) a legally effective authorization, signed and dated by the applicant or the
87.24applicant's authorized representative, for disclosure of medical information needed by the
87.25department to fulfill its duties under this chapter; and
87.26(2) a signed and dated certification by a qualified health care provider treating the
87.27applicant:
87.28(i) describing the reason or reasons that pregnancy care is needed;
87.29(ii) stating or estimating the dates care is needed; and
87.30(iii) listing the ICD code or codes, if any, of the condition or conditions underlying
87.31the application for benefits.
87.32    Subd. 3. Online access. The commissioner must, to the extent possible, create a
87.33system allowing for all aspects of the applications under this section to be completed
87.34online. This includes the use of electronic signatures.
88.1    Subd. 4. Administrative efficiencies. To the maximum extent feasible, the
88.2commissioner must use the same or similar procedures for applications under this section
88.3as for applications for benefits under chapter 268.

88.4    Sec. 17. [268B.05] DETERMINATION OF APPLICATION.
88.5Upon the filing of a complete application for benefits, the commissioner shall examine
88.6the application and on the basis of facts found by the commissioner and records maintained
88.7by the department, the application shall be determined to be valid or invalid within two
88.8weeks. If the application is determined to be valid, the commissioner shall promptly notify
88.9the applicant and any other interested party as to the week when benefits commence,
88.10the weekly benefit amount payable, and the maximum duration of those benefits. If the
88.11application is determined to be invalid, the commissioner shall notify the applicant and
88.12any other interested party of that determination and the reasons for it. If the processing
88.13of the application is delayed for any reason, the commissioner shall notify the applicant,
88.14in writing, within two weeks of the date the application for benefits is filed of the reason
88.15for the delay. Unless the applicant or any other interested party, within 30 days, requests
88.16a hearing before a benefit judge, the determination is final. For good cause shown, the
88.1730-day period may be extended. At any time within one year from the date of a monetary
88.18determination, the commissioner, upon request of the applicant or on the commissioner's
88.19own initiative, may reconsider the determination if it is found that an error in computation
88.20or identity has occurred in connection with the determination or that additional wages
88.21pertinent to the applicant's status have become available, or if that determination has been
88.22made as a result of a nondisclosure or misrepresentation of a material fact.

88.23    Sec. 18. [268B.06] EMPLOYER NOTIFICATION.
88.24(a) Upon a determination under section 268B.05 that an applicant is entitled to
88.25benefits, the commissioner must promptly send a notification to each current employer
88.26of the applicant, if any, in accordance with paragraph (b).
88.27(b) The notification under paragraph (a) must include, at a minimum:
88.28(1) the name of the applicant;
88.29(2) that the applicant has applied for and received benefits;
88.30(3) that the applicant has been identified as an employee of the employer;
88.31(4) the week the benefits commence;
88.32(5) the weekly benefit amount payable;
88.33(6) the maximum duration of benefits;
88.34(7) an explanation of why the notification has been sent; and
89.1(8) descriptions of the employer's right to participate in a hearing under section
89.2268B.05, and appeal process under section 268B.07.

89.3    Sec. 19. [268B.07] APPEAL PROCESS.
89.4    Subdivision 1. Hearing. (a) The commissioner shall designate a chief benefit judge.
89.5    (b) Upon a timely appeal to a determination having been filed or upon a referral
89.6for direct hearing, the chief benefit judge must set a time and date for a de novo due
89.7process hearing and send notice to an applicant and an employer, by mail or electronic
89.8transmission, not less than ten calendar days before the date of the hearing.
89.9    (c) The commissioner may adopt rules on procedures for hearings. The rules need
89.10not conform to common law or statutory rules of evidence and other technical rules of
89.11procedure.
89.12    (d) The chief benefit judge has discretion regarding the method by which the hearing
89.13is conducted.
89.14    Subd. 2. Decision. (a) After the conclusion of the hearing, upon the evidence
89.15obtained, the benefit judge must send by mail or electronic transmission to all parties, the
89.16decision, reasons for the decision, and written findings of fact.
89.17    (b) Decisions of a benefit judge are not precedential.
89.18    Subd. 3. Request for reconsideration. Any party, or the commissioner, may,
89.19within 30 calendar days of the receipt of the benefit judge's decision, file a request for
89.20reconsideration asking the judge to reconsider that decision.
89.21    Subd. 4. Appeal to Court of Appeals. Any final determination on a request for
89.22reconsideration may be appealed by any party directly to the Minnesota Court of Appeals.
89.23    Subd. 5. Benefit judges. (a) Only employees of the department who are attorneys
89.24licensed to practice law in Minnesota may serve as a chief benefit judge, senior benefit
89.25judges who are supervisors, or benefit judges.
89.26    (b) The chief benefit judge must assign a benefit judge to conduct a hearing and may
89.27transfer to another benefit judge any proceedings pending before another benefit judge.

89.28    Sec. 20. [268B.08] BENEFITS.
89.29    Subdivision 1. Weekly benefit amount. (a) Subject to the maximum weekly benefit
89.30amount, an applicant's weekly benefit is calculated by adding the amounts obtained by
89.31applying the following percentage to an applicant's average weekly wage earned with an
89.32employer as defined in section 268B.01, subdivision 8:
89.33(1) 80 percent of wages that do not exceed 50 percent of the state's average weekly
89.34wage; plus
90.1(2) 66 percent of wages that exceed 50 percent of the state's average weekly wage
90.2but not 100 percent; plus
90.3(3) 55 percent of wages that exceed 100 percent of the state's average weekly wage.
90.4(b) The average weekly wage of the applicant under paragraph (a) must be calculated
90.5by dividing the high quarter wage credits of the applicant by 13.
90.6(c) The state's average weekly wage is the average wage as calculated under section
90.7268.035, subdivision 23, at the time a benefit amount is first determined.
90.8(d) Notwithstanding any other provision in this section, weekly benefits must not
90.9exceed the maximum weekly benefit amount applicable at the time benefit payments
90.10commence.
90.11    Subd. 2. Timing of payment. Except as otherwise provided for in this chapter,
90.12benefits must be paid weekly.
90.13    Subd. 3. Method of payment. The commissioner may pay benefits using any
90.14method or methods authorized for the payment of unemployment insurance benefits
90.15under chapter 268.
90.16    Subd. 4. Maximum length of benefits. In a 52-week period, an applicant may
90.17receive a total of 12 weeks of benefits under this chapter.
90.18    Subd. 5. Minimum period for which benefits payable. Any claim for benefits
90.19must be based on a single-qualifying benefit period of at least seven days; thereafter,
90.20benefits may be paid for a minimum increment of one day.
90.21    Subd. 6. Total paid benefits not to exceed average weekly wage. An applicant's
90.22combined weekly employer-paid wage replacement benefits and benefits under this
90.23chapter must not exceed an applicant's average weekly wage. Benefits under this chapter
90.24must be reduced so those combined benefits do not exceed that amount.
90.25    Subd. 7. Withholding of federal tax. If the Internal Revenue Service determines
90.26that benefits are subject to federal income tax, and an applicant elects to have federal
90.27income tax deducted and withheld from the applicant's benefits, the commissioner must
90.28deduct and withhold the amount specified in the Internal Revenue Code in a manner
90.29consistent with state law.
90.30EFFECTIVE DATE.This section is effective January 1, 2020.

90.31    Sec. 21. [268B.09] EMPLOYMENT PROTECTIONS.
90.32    Subdivision 1. Retaliation prohibited. An employer must not retaliate against an
90.33employee for requesting or obtaining benefits, or for exercising any other right under
90.34this chapter.
91.1    Subd. 2. Waiver of rights void. An agreement by an individual to waive, release,
91.2or commute rights to benefits under this chapter is void. An employer may not obstruct or
91.3impede an application for benefits.
91.4    Subd. 3. No assignment of benefits. Any assignment, pledge, or encumbrance
91.5of benefits is void. Benefits are exempt from levy, execution, attachment, or any other
91.6remedy provided for the collection of debt. Any waiver of this subdivision is void.
91.7    Subd. 4. Remedies. In addition to any other remedies available by law, an individual
91.8injured by a violation of this section may bring a civil action seeking any damages
91.9recoverable by law, together with costs and disbursements, including reasonable attorney
91.10fees, and may receive injunctive and other equitable relief as determined by a court.
91.11    Subd. 5. Leave and employment rights not created. This chapter does not create
91.12a right to employment leave to an individual receiving benefits under this chapter. This
91.13chapter does not create a right to return to an employment position before, during, or after
91.14the receipt of benefits under this chapter.

91.15    Sec. 22. [268B.10] SUBSTITUTION OF OTHER PLAN; EMPLOYER
91.16EXCLUSION.
91.17    Subdivision 1. Application for exclusion. An employer may apply to the
91.18commissioner to be excluded from either or both the family and medical benefit programs
91.19under this chapter.
91.20    Subd. 2. Requirements for approving exclusion. The commissioner must approve
91.21an application for exclusion from a program under this chapter if the commissioner finds
91.22that the employer provides a benefit plan that:
91.23(1) covers all of the employees that would be covered by a program under this chapter;
91.24(2) provides an amount of employer-provided wage benefits that when combined
91.25with other employer-paid and employee-paid wage benefits is approximately equal to or
91.26greater than that provided under the program; and
91.27(3) does not require employee payments that exceed employee payments required
91.28under this chapter.
91.29    Subd. 3. Audit and investigation. The commissioner may investigate and audit
91.30plans for which an exclusion was approved under this section both before and after an
91.31exclusion is approved.
91.32EFFECTIVE DATE.This section is effective July 1, 2019, for exclusions
91.33commencing January 1, 2020, and thereafter.

91.34    Sec. 23. [268B.11] SELF-EMPLOYED ELECTION OF COVERAGE.
92.1(a) A self-employed individual may file with the commissioner, by electronic
92.2transmission in a format prescribed by the commissioner, an election that the individual is
92.3covered as an employee for not less than two calendar years. Upon the approval of the
92.4commissioner, sent by United States mail or electronic transmission, the individual is
92.5covered as an employee under this chapter beginning the calendar quarter after the date
92.6of approval or beginning in a later calendar quarter if requested by the employer. The
92.7individual ceases to be covered as of the first day of January of any calendar year only if,
92.8at least 30 calendar days before the first day of January, the individual has filed with the
92.9commissioner, by electronic transmission in a format prescribed by the commissioner, a
92.10notice to that effect.
92.11(b) The commissioner must terminate any election agreement under this section
92.12upon 30 calendar days' notice sent by mail or electronic transmission if the individual is
92.13delinquent on any taxes due under this chapter.
92.14(c) The individual electing under this section must pay both the employer and
92.15employee taxes under section 268B.12.
92.16(d) The individual must comply with the requirements imposed on employers and
92.17employees under this chapter except to the extent the commissioner determines requiring
92.18compliance is unreasonable.

92.19    Sec. 24. [268B.111] SMALL EMPLOYER ELECTION OF COVERAGE.
92.20An employer of less than 21 employees may elect to be an employer subject to
92.21chapter 268B. An election must be filed with the commissioner by electronic transmission
92.22in a format prescribed by the commissioner. An election must be for not less than two
92.23calendar years following the year of election. The commissioner shall notify an employer
92.24of the effective date of an election which must be the beginning of the first quarter the
92.25commissioner determines is administratively practical.

92.26    Sec. 25. [268B.12] TAXATION.
92.27    Subdivision 1. Employer. (a) Each taxpaying employer under the state's
92.28unemployment insurance program must pay a tax on the wages paid to employees in
92.29covered employment for each calendar year. The tax must be paid on all wages up to the
92.30maximum specified by this section.
92.31(b) Each reimbursing employer under the state's unemployment insurance law must
92.32pay a tax on the wages paid to employees in covered employment in the same amount
92.33and manner as provided by paragraph (a).
93.1    Subd. 2. Employee. Each employee on whose wages a tax is paid under this
93.2section must pay a tax equal to that of the employer under this section. The employer
93.3shall withhold employee taxes from the wages of an employee and make payment to the
93.4commissioner on behalf of an employee.
93.5    Subd. 3. Wages subject to tax. The maximum wages subject to tax in a calendar
93.6year is equal to the maximum earnings in that year subject to the FICA Old-Age,
93.7Survivors, and Disability Insurance tax.
93.8    Subd. 4. Annual tax rates. The employer tax rates for the calendar year beginning
93.9January 1, 2020, shall be as follows:
93.10(1) for employers participating in both family and medical benefit programs, 0.09
93.11percent;
93.12(2) for an employer participating in only the medical benefit program and opting out
93.13of the family benefit program, 0.08 percent; and
93.14(3) for an employer participating in only the family benefit program and opting out
93.15of the medical benefit program, 0.01 percent.
93.16    Subd. 5. Tax rate adjustments. (a) Each calendar year following the calendar year
93.17beginning January 1, 2020, except calendar year 2021, the commissioner must adjust the
93.18annual tax rates using the formula in paragraph (b).
93.19(b) To calculate the employer tax rates for a calendar year, the commissioner must:
93.20(1) multiply 1.45 times the amount disbursed from the account for the 52-week
93.21period ending September 30 of the prior year;
93.22(2) subtract the amount in the account on that September 30 from the resulting figure;
93.23(3) divide the resulting figure by twice the total wages in covered employment of
93.24employees of employers that have not opted out of both the family and medical benefit
93.25programs. For employees of employers that have opted out of one of the two programs,
93.26count only the proportion of wages in covered employment associated with the program of
93.27which the employer did not opt out; and
93.28(4) round the resulting figure down to the nearest one-tenth of one percent.
93.29(c) For calendar year 2021, the calculation shall be as provided in paragraph
93.30(b), except that the disbursements in clause (1) shall be those for the 39 weeks ending
93.31September 30, and projected disbursements for the next 13 weeks.
93.32(d) The commissioner must not increase or decrease the employer tax rate by more
93.33than 0.1 percent each year.
93.34(e) The commissioner must apportion the tax rate between the family and medical
93.35benefit programs based on the relative proportion of expenditures for each program during
93.36the preceding year.
94.1    Subd. 6. Tax rate limits. The aggregate tax rate of employers and employees under
94.2this chapter must not be less than 0.01 percent or more than 1.5 percent annually.
94.3    Subd. 7. Collection of taxes; efficiencies. For collection of taxes under this section,
94.4the commissioner must, to the maximum extent possible, use the same collection process
94.5as that used for collection of unemployment insurance taxes.
94.6    Subd. 8. Deposit of taxes. All taxes collected under this section must be deposited
94.7into the account.

94.8    Sec. 26. [268B.13] COLLECTION OF TAXES.
94.9    Subdivision 1. Amount computed presumed correct. Any amount due from an
94.10employer, as computed by the commissioner, is presumed to be correctly determined and
94.11assessed, and the burden is upon the employer to show its incorrectness. A statement
94.12by the commissioner of the amount due is admissible in evidence in any court or
94.13administrative proceeding and is prima facie evidence of the facts in the statement.
94.14    Subd. 2. Priority of payments. (a) Any payment received from an employer must
94.15be applied in the following order:
94.16(1) taxes due under this chapter; then
94.17(2) interest on past due taxes; then
94.18(3) penalties, late fees, administrative service fees, and costs.
94.19    (b) Paragraph (a) is the priority used for all payments received from an employer,
94.20regardless of how the employer may designate the payment to be applied, except when:
94.21    (1) there is an outstanding lien and the employer designates that the payment made
94.22should be applied to satisfy the lien;
94.23    (2) a court or administrative order directs that the payment be applied to a specific
94.24obligation;
94.25    (3) a preexisting payment plan provides for the application of payment; or
94.26    (4) the commissioner agrees to apply the payment to a different priority.
94.27    Subd. 3. Costs. (a) Any employer that fails to pay any amount when due under this
94.28chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral
94.29to any public or private collection agency, or litigation costs, including attorney fees,
94.30incurred in the collection of the amounts due.
94.31    (b) If any tendered payment of any amount due is not honored when presented to a
94.32financial institution for payment, any costs assessed to the department by the financial
94.33institution and a fee of $25 must be assessed to the person.
94.34    (c) Costs and fees collected under this subdivision are credited to the account.
95.1    Subd. 4. Interest on amounts past due. If any amounts due from an employer
95.2under this chapter, except late fees, are not received on the date due, the unpaid balance
95.3bears interest at the rate of one percent per month or any part of a month. Interest collected
95.4under this subdivision is payable to the account.
95.5    Subd. 5. Interest on judgments. Regardless of section 549.09, if judgment is
95.6entered upon any past due amounts from an employer under this chapter, the unpaid
95.7judgment bears interest at the rate specified in subdivision 4 until the date of payment.
95.8    Subd. 6. Credit adjustments; refunds. (a) If an employer makes an application for
95.9a credit adjustment of any amount paid under this chapter within four years of the date
95.10that the payment was due, in a manner and format prescribed by the commissioner, and
95.11the commissioner determines that the payment or any portion thereof was erroneous,
95.12the commissioner must make an adjustment and issue a credit without interest. If a
95.13credit cannot be used, the commissioner must refund, without interest, the amount
95.14erroneously paid. The commissioner, on the commissioner's own motion, may make a
95.15credit adjustment or refund under this subdivision.
95.16    (b) Any refund returned to the commissioner is considered unclaimed property
95.17under chapter 345.
95.18    (c) If a credit adjustment or refund is denied in whole or in part, a determination of
95.19denial must be sent to the employer by United States mail or electronic transmission. The
95.20determination of denial is final unless an employer files an appeal within 20 calendar days
95.21after receipt of the determination.
95.22    Subd. 7. Priorities under legal dissolutions or distributions. In the event of
95.23any distribution of an employer's assets according to an order of any court, including
95.24any receivership, assignment for benefit of creditors, adjudicated insolvency, or similar
95.25proceeding, taxes then or thereafter due must be paid in full before all other claims,
95.26except claims for wages of not more than $1,000 per former employee that are earned
95.27within six months of the commencement of the proceedings. In the event of an employer's
95.28adjudication in bankruptcy under federal law, taxes then or thereafter due are entitled to
95.29the priority provided in that law for taxes due.

95.30    Sec. 27. [268B.14] ADMINISTRATIVE COSTS.
95.31For the calendar year beginning January 1, 2020, and each calendar year thereafter,
95.32the commissioner may spend up to seven percent of projected benefit payments for that
95.33calendar year for the administration of this chapter.

95.34    Sec. 28. [268B.15] PUBLIC OUTREACH.
96.1The commissioner may use administrative funds for the purpose of outreach and
96.2education for employees regarding this chapter. This may include providing grants to
96.3public and private persons and entities.

96.4    Sec. 29. [268B.16] APPLICANT'S FALSE REPRESENTATIONS;
96.5CONCEALMENT OF FACTS; PENALTY.
96.6(a) Any applicant who knowingly makes a false statement or representation,
96.7knowingly fails to disclose a material fact, or makes a false statement or representation
96.8without a good-faith belief as to the correctness of the statement or representation, in order
96.9to obtain or in an attempt to obtain benefits may be assessed, in addition to any other
96.10penalties, an administrative penalty of ineligibility of benefits for 13 to 104 weeks.
96.11(b) A determination of ineligibility setting out the weeks the applicant is ineligible
96.12must be sent to the applicant by United States mail or electronic transmission. The
96.13determination is final unless an appeal is filed within 30 calendar days after receipt of
96.14the determination.

96.15    Sec. 30. [268B.17] EMPLOYER MISCONDUCT; PENALTY.
96.16(a) The commissioner must penalize an employer if that employer or any employee,
96.17officer, or agent of that employer is in collusion with any applicant for the purpose of
96.18assisting the applicant in receiving benefits fraudulently. The penalty is $500 or the
96.19amount of benefits determined to be overpaid, whichever is greater.
96.20    (b) The commissioner must penalize an employer if that employer or any employee,
96.21officer, or agent of that employer:
96.22    (1) made a false statement or representation knowing it to be false;
96.23    (2) made a false statement or representation without a good-faith belief as to the
96.24correctness of the statement or representation; or
96.25    (3) knowingly failed to disclose a material fact.
96.26    (c) The penalty is the greater of $500 or 50 percent of the following resulting from
96.27the employer's action:
96.28(1) the amount of any overpaid benefits to an applicant;
96.29(2) the amount of benefits not paid to an applicant that would otherwise have
96.30been paid; or
96.31(3) the amount of any payment required from the employer under this chapter that
96.32was not paid.
96.33    (d) Penalties must be paid within 30 calendar days of issuance of the determination
96.34of penalty and credited to the account.
97.1    (e) The determination of penalty is final unless the employer files an appeal within
97.230 calendar days after the sending of the determination of penalty to the employer by
97.3United States mail or electronic transmission.

97.4    Sec. 31. [268B.18] RECORDS; AUDITS.
97.5(a) Each employer must keep true and accurate records on individuals performing
97.6services for the employer, containing the information the commissioner may require
97.7under this chapter. The records must be kept for a period of not less than four years
97.8in addition to the current calendar year.
97.9    (b) For the purpose of administering this chapter, the commissioner has the power to
97.10investigate, audit, examine, or cause to be supplied or copied, any books, correspondence,
97.11papers, records, or memoranda that are the property of, or in the possession of, an
97.12employer or any other person at any reasonable time and as often as may be necessary.
97.13    (c) An employer or other person that refuses to allow an audit of its records by the
97.14department or that fails to make all necessary records available for audit in the state upon
97.15request of the commissioner may be assessed an administrative penalty of $500. The
97.16penalty collected is credited to the account.

97.17    Sec. 32. [268B.19] SUBPOENAS; OATHS.
97.18    (a) The commissioner or benefit judge has authority to administer oaths and
97.19affirmations, take depositions, certify to official acts, and issue subpoenas to compel the
97.20attendance of individuals and the production of documents and other personal property
97.21necessary in connection with the administration of this chapter.
97.22    (b) Individuals subpoenaed, other than applicants or officers and employees of an
97.23employer that is the subject of the inquiry, must be paid witness fees the same as witness
97.24fees in civil actions in district court. The fees need not be paid in advance.
97.25    (c) The subpoena is enforceable through the district court in Ramsey County.

97.26    Sec. 33. [268B.20] MEDIATION AND CONCILIATION.
97.27The department must offer mediation and conciliation services to employers and
97.28applicants to resolve disputes concerning benefits under this chapter. The commissioner
97.29shall notify parties of the availability of those services and may by rule extend appeal
97.30deadlines to accommodate conciliation and mediation.

97.31    Sec. 34. Minnesota Statutes 2014, section 270B.14, subdivision 2, is amended to read:
98.1    Subd. 2. Disclosure to Department of Employment and Economic Development.
98.2(a) Data relating to individuals are treated as follows:
98.3(1) Return information may be disclosed to the Department of Employment and
98.4Economic Development to the extent provided in clause (2) and for the purposes provided
98.5in clause (3).
98.6(2) The data that may be disclosed is limited to the amount of gross income earned by
98.7an individual, the total amounts of earnings from each employer, and the employer's name.
98.8(3) Data may be requested pertaining only to individuals who have claimed benefits
98.9under sections 268.03 to 268.23 and 268B.01 to 268B.20 and only if the individuals are
98.10the subject of investigations based on other information available to the Department of
98.11Employment and Economic Development. Data received may be used only as set forth in
98.12section 268.19, subdivision 1, paragraph (b).
98.13(b) Data pertaining to corporations or other employing units may be disclosed to
98.14the Department of Employment and Economic Development to the extent necessary for
98.15the proper enforcement of chapter chapters 268 and 268B.
98.16EFFECTIVE DATE.This section is effective the day following final enactment.

98.17    Sec. 35. INITIAL TAX RATES FOR FAMILY AND MEDICAL BENEFIT
98.18PROGRAM.
98.19Notwithstanding any other law to the contrary, the tax rate for employers subject
98.20to tax under Minnesota Statutes, section 268B.12, and employees in an equal amount, is
98.210.045 percent in calendar year 2019.
98.22EFFECTIVE DATE.This section is effective August 1, 2016.

98.23    Sec. 36. FAMILY AND MEDICAL LEAVE BENEFIT PROGRAM;
98.24APPROPRIATION.
98.25$6,983,000 in fiscal year 2017 is appropriated from the general fund to the
98.26commissioner of employment and economic development for the purposes of Minnesota
98.27Statutes, chapter 268B. The base for fiscal year 2018 is $9,201,000, the base for fiscal year
98.282019 is $9,667,000, and the base for fiscal years 2020 and later is zero.
98.29EFFECTIVE DATE.This section is effective July 1, 2016.

98.30    Sec. 37. EFFECTIVE DATE INTENTION.
98.31The intention of the legislature is that benefits under Minnesota Statutes, chapter
98.32268B, shall not be applied for nor paid until January 1, 2020, and thereafter. The sections
99.1of this article are effective August 1, 2016, unless specifically provided otherwise in
99.2this article.