HF 3931

1st Unofficial Engrossment - 89th Legislature (2015 - 2016) Posted on 05/12/2016 08:28am

A bill for an act
relating to financing of state and local government; making changes to individual
income and corporate franchise, property, sales and use, special, local, and
other taxes and tax-related provisions; providing for and expanding credits;
authorizing riparian protection aid; providing property tax exemptions and
refunds; authorizing sales and use tax exemptions; modifying sales and use tax
remittances; providing for and modifying certain local development projects;
modifying special taxing districts; authorizing issuance of bonds; providing for
paid family and medical leave benefits; transferring approval authority from Iron
Range Resources and Rehabilitation Board to the commissioner of Iron Range
resources and rehabilitation; authorizing early separation incentive program;
appropriating money; amending Minnesota Statutes 2014, sections 13.719, by
adding a subdivision; 15.38, subdivision 7; 116J.424; 116J.8737, subdivision
2; 181.940, subdivisions 2, 4; 181.941, subdivision 4; 181.942, subdivision 1;
181.943; 216B.161, subdivision 1; 256J.561, by adding a subdivision; 256J.95,
subdivisions 3, 11; 268.19, subdivision 1; 270B.14, subdivision 2; 272.162;
276A.01, subdivisions 8, 17; 282.38, subdivision 1; 290.01, subdivisions 19a,
19b, 19c; 290.06, by adding a subdivision; 290.091, subdivision 2; 297A.66,
subdivisions 1, 3, 4, by adding subdivisions; 297A.71, by adding subdivisions;
297A.75, subdivisions 1, 2, 3; 298.001, subdivision 8; 298.22, subdivisions 1a,
5a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5,
6; 298.223, subdivisions 1, 2; 298.227; 298.28, subdivisions 7a, 9d; 298.292,
subdivision 2; 298.294; 298.296, subdivisions 1, 2, 4; 298.2961, subdivisions 2,
4; 298.298; 298.46, subdivision 2; 473.39, by adding a subdivision; Minnesota
Statutes 2015 Supplement, sections 256P.01, subdivision 3; 289A.02, subdivision
7; 290.01, subdivisions 19, 31; 290.0671, subdivision 1; 290A.03, subdivision
15; 291.005, subdivision 1; Laws 1988, chapter 645, section 3, as amended;
Laws 2008, chapter 154, article 9, section 21, subdivision 2; Laws 2009, chapter
88, article 2, section 46, subdivisions 1, as amended, 2, 3, as amended, 4, 5;
Laws 2014, chapter 308, article 6, section 9; proposing coding for new law in
Minnesota Statutes, chapters 181; 216B; 270C; 290; 469; 477A; proposing
coding for new law as Minnesota Statutes, chapter 268B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

INCOME AND CORPORATE FRANCHISE TAXES

Section 1.

Minnesota Statutes 2014, section 116J.8737, subdivision 2, is amended to
read:

Subd. 2.

Certification of qualified small businesses.

(a) Businesses may apply
to the commissioner for certification as a qualified small business or qualified greater
Minnesota small business for a calendar year. The application must be in the form
and be made under the procedures specified by the commissioner, accompanied by an
application fee of $150. Application fees are deposited in the small business investment
tax credit administration account in the special revenue fund. The application for
certification for 2010 must be made available on the department's Web site by August 1,
2010. Applications for subsequent years' certification must be made available on the
department's Web site by November 1 of the preceding year.

(b) Within 30 days of receiving an application for certification under this subdivision,
the commissioner must either certify the business as satisfying the conditions required
of a qualified small business or qualified greater Minnesota small business, request
additional information from the business, or reject the application for certification. If
the commissioner requests additional information from the business, the commissioner
must either certify the business or reject the application within 30 days of receiving the
additional information. If the commissioner neither certifies the business nor rejects
the application within 30 days of receiving the original application or within 30 days of
receiving the additional information requested, whichever is later, then the application is
deemed rejected, and the commissioner must refund the $150 application fee. A business
that applies for certification and is rejected may reapply.

(c) To receive certification as a qualified small business, a business must satisfy
all of the following conditions:

(1) the business has its headquarters in Minnesota;

(2) at least new text begin : (i) new text end 51 percent of the business's employees are employed in Minnesota deleted text begin ,
and deleted text end new text begin ; (ii) new text end 51 percent of the business's total payroll is paid or incurred in the state new text begin ; and (iii)
51 percent of the total value of all contractual agreements to which the business is a party
in connection with its primary business activity is for services performed under contract in
Minnesota, unless the business obtains a waiver under paragraph (i) new text end ;

(3) the business is engaged in, or is committed to engage in, innovation in Minnesota
in one of the following as its primary business activity:

(i) using proprietary technology to add value to a product, process, or service in a
qualified high-technology field;

(ii) researching or developing a proprietary product, process, or service in a qualified
high-technology field;

(iii) researching or developing a proprietary product, process, or service in the fields
of agriculture, tourism, forestry, mining, manufacturing, or transportation; or

(iv) researching, developing, or producing a new proprietary technology for use in
the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;

(4) other than the activities specifically listed in clause (3), the business is not
engaged in real estate development, insurance, banking, lending, lobbying, political
consulting, information technology consulting, wholesale or retail trade, leisure,
hospitality, transportation, construction, ethanol production from corn, or professional
services provided by attorneys, accountants, business consultants, physicians, or health
care consultants;

(5) the business has fewer than 25 employees;

(6) the business must pay its employees annual wages of at least 175 percent of the
federal poverty guideline for the year for a family of four and must pay its interns annual
wages of at least 175 percent of the federal minimum wage used for federally covered
employers, except that this requirement must be reduced proportionately for employees
and interns who work less than full-time, and does not apply to an executive, officer, or
member of the board of the business, or to any employee who owns, controls, or holds
power to vote more than 20 percent of the outstanding securities of the business;

(7) the business has (i) not been in operation for more than ten years, or (ii) not
been in operation for more than 20 years if the business is engaged in the research,
development, or production of medical devices or pharmaceuticals for which United
States Food and Drug Administration approval is required for use in the treatment or
diagnosis of a disease or condition;

(8) the business has not previously received private equity investments of more
than $4,000,000;

(9) the business is not an entity disqualified under section 80A.50, paragraph (b),
clause (3); and

(10) the business has not issued securities that are traded on a public exchange.

(d) In applying the limit under paragraph (c), clause (5), the employees in all members
of the unitary business, as defined in section 290.17, subdivision 4, must be included.

(e) In order for a qualified investment in a business to be eligible for tax credits:

(1) the business must have applied for and received certification for the calendar
year in which the investment was made prior to the date on which the qualified investment
was made;

(2) the business must not have issued securities that are traded on a public exchange;

(3) the business must not issue securities that are traded on a public exchange within
180 days after the date on which the qualified investment was made; and

(4) the business must not have a liquidation event within 180 days after the date on
which the qualified investment was made.

(f) The commissioner must maintain a list of qualified small businesses and qualified
greater Minnesota businesses certified under this subdivision for the calendar year and
make the list accessible to the public on the department's Web site.

(g) For purposes of this subdivision, the following terms have the meanings given:

(1) "qualified high-technology field" includes aerospace, agricultural processing,
renewable energy, energy efficiency and conservation, environmental engineering, food
technology, cellulosic ethanol, information technology, materials science technology,
nanotechnology, telecommunications, biotechnology, medical device products,
pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields;

(2) "proprietary technology" means the technical innovations that are unique and
legally owned or licensed by a business and includes, without limitation, those innovations
that are patented, patent pending, a subject of trade secrets, or copyrighted; and

(3) "greater Minnesota" means the area of Minnesota located outside of the
metropolitan area as defined in section 473.121, subdivision 2.

(h) To receive certification as a qualified greater Minnesota business, a business must
satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:

(1) the business has its headquarters in greater Minnesota; and

(2) at least new text begin : (i) new text end 51 percent of the business's employees are employed in greater
Minnesota deleted text begin , and deleted text end new text begin ; (ii) new text end 51 percent of the business's total payroll is paid or incurred in greater
Minnesota new text begin ; and (iii) 51 percent of the total value of all contractual agreements to which
the business is a party in connection with its primary business activity is for services
performed under contract in greater Minnesota, unless the business obtains a waiver
under paragraph (i) new text end .

new text begin (i) The commissioner must exempt a business from the requirement under paragraph
(c), clause (2), item (iii), if the business certifies to the commissioner that the services
required under a contract in connection with the primary business activity cannot be
performed in Minnesota if the business otherwise qualifies as a qualified small business,
or in greater Minnesota if the business otherwise qualifies as a qualified greater Minnesota
business. The business must submit the certification required under this paragraph every
six months from the month the exemption was granted. The exemption allowed under this
paragraph must be submitted in a form and manner prescribed by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 2.

new text begin [270C.22] TAX TIME SAVINGS GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Financial capability services" means any of the following:
new text end

new text begin (1) assistance with opening a savings or transactional account that meets the Federal
Deposit Insurance Corporation's model safe accounts template standards;
new text end

new text begin (2) assistance with depositing all or part of a tax refund into a savings or transactional
account;
new text end

new text begin (3) assistance with obtaining and reviewing a consumer report or credit score, as
those terms are defined in United States Code, title 15, section 1681a;
new text end

new text begin (4) assistance with obtaining and reviewing a banking history report;
new text end

new text begin (5) financial coaching, or referral to financial coaching services, as provided in
section 256E.35, subdivision 4a;
new text end

new text begin (6) National Foundation for Credit Counseling certified consumer credit and debt
counseling or referral to these services;
new text end

new text begin (7) enrollment in a matched or incentivized savings program, including the provision
of matching or incentive funds;
new text end

new text begin (8) assistance with purchasing federal retirement savings bonds, as described in
Code of Federal Regulations, title 31, part 347; or
new text end

new text begin (9) assistance with purchasing a Series I United States Savings Bond with all or
part of a tax refund.
new text end

new text begin (c) "Transactional account" means a traditional demand deposit account or a general
purpose reloadable prepaid card offered by a bank or credit union.
new text end

new text begin (d) "TCE" means the Tax Counseling for the Elderly program established by the
Internal Revenue Service.
new text end

new text begin (e) "VITA" means the Volunteer Income Tax Assistance program established by the
Internal Revenue Service.
new text end

new text begin Subd. 2. new text end

new text begin Creation. new text end

new text begin The commissioner of revenue shall establish a tax time
savings grant program to make grants to one or more nonprofit organizations to fund the
integration of financial capability services into the delivery of taxpayer assistance services
funded by grants under section 270C.21.
new text end

new text begin Subd. 3. new text end

new text begin Qualified applicant. new text end

new text begin To be eligible to receive a grant under the tax time
savings grant program, an applicant must:
new text end

new text begin (1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered
with the Internal Revenue Service as part of either the VITA or TCE programs; and
new text end

new text begin (2) commit to dedicate at least one staff or volunteer position to coordinate financial
capability services at a VITA or TCE program site and to offer VITA or TCE program
participants free assistance with the initiation through completion of:
new text end

new text begin (i) opening a savings and a transactional account that meet the Federal Deposit
Insurance Corporation's model safe accounts template standards;
new text end

new text begin (ii) depositing all or part of a tax refund into a savings or transactional account; and
new text end

new text begin (iii) purchasing a Series I United States Savings Bond with all or part of a tax refund.
new text end

new text begin Subd. 4. new text end

new text begin Conflict of interest. new text end

new text begin (a) No applicant may receive direct compensation
from a bank, credit union, other financial services provider, or vendor in exchange for the
applicant offering to program participants the products or services of that bank, credit
union, other financial services provider, or vendor.
new text end

new text begin (b) No applicant may receive funding from a bank, credit union, other financial
services provider, or vendor that is contingent on the applicant offering products or
services of that bank, credit union, other financial services provider, or vendor to program
participants.
new text end

new text begin (c) An applicant may receive funding from a bank, credit union, other financial
services provider, or vendor that is not in exchange for or contingent upon the applicant
offering products or services of that bank, credit union, other financial services provider,
or vendor to program participants.
new text end

new text begin Subd. 5. new text end

new text begin Permitted use of grant funds. new text end

new text begin (a) A grant recipient may use grant funds
to dedicate a staff or volunteer position to coordinate financial capability services at a
VITA or TCE site and to offer VITA or TCE program participants free assistance with the
initiation through completion of:
new text end

new text begin (1) opening a savings and a transactional account that meet the Federal Deposit
Insurance Corporation's model safe accounts template standards;
new text end

new text begin (2) depositing all or part of a tax refund into a savings or transactional account; and
new text end

new text begin (3) purchasing a Series I United States Savings Bond with all or part of a tax refund.
new text end

new text begin (b) A grant recipient who offers all of the financial capability services enumerated
in paragraph (a) may also use grant funds to provide one or more additional financial
capability services to VITA or TCE program participants at no cost to the participant.
new text end

Sec. 3.

Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is
amended to read:

Subd. 7.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through December
31, deleted text begin 2014 deleted text end new text begin 2015 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is
amended to read:

Subd. 19.

Net income.

The term "net income" means the federal taxable income,
as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
date named in this subdivision, incorporating the federal effective dates of changes to the
Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in subdivisions 19a to 19f.

In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:

(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;

(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
Revenue Code must be applied by allowing a deduction for capital gain dividends and
exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
Revenue Code; and

(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.

The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.

The net income of a designated settlement fund as defined in section 468B(d) of
the Internal Revenue Code means the gross income as defined in section 468B(b) of the
Internal Revenue Code.

The Internal Revenue Code of 1986, as amended through December 31, deleted text begin 2014 deleted text end new text begin 2015 new text end ,
shall be in effect for taxable years beginning after December 31, 1996.

Except as otherwise provided, references to the Internal Revenue Code in
subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
the applicable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective retroactively at the same
time as the changes were effective for federal purposes.
new text end

Sec. 5.

Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read:

Subd. 19a.

Additions to federal taxable income.

For individuals, estates, and
trusts, there shall be added to federal taxable income:

(1)(i) interest income on obligations of any state other than Minnesota or a political
or governmental subdivision, municipality, or governmental agency or instrumentality
of any state other than Minnesota exempt from federal income taxes under the Internal
Revenue Code or any other federal statute; and

(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue
Code, except:

(A) the portion of the exempt-interest dividends exempt from state taxation under
the laws of the United States; and

(B) the portion of the exempt-interest dividends derived from interest income
on obligations of the state of Minnesota or its political or governmental subdivisions,
municipalities, governmental agencies or instrumentalities, but only if the portion of the
exempt-interest dividends from such Minnesota sources paid to all shareholders represents
95 percent or more of the exempt-interest dividends, including any dividends exempt
under subitem (A), that are paid by the regulated investment company as defined in section
851(a) of the Internal Revenue Code, or the fund of the regulated investment company as
defined in section 851(g) of the Internal Revenue Code, making the payment; and

(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal
government described in section 7871(c) of the Internal Revenue Code shall be treated as
interest income on obligations of the state in which the tribe is located;

(2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or
accrued within the taxable year under this chapter and the amount of taxes based on net
income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or
to any province or territory of Canada, to the extent allowed as a deduction under section
63(d) of the Internal Revenue Code, but the addition may not be more than the amount
by which the state itemized deduction exceeds the amount of the standard deduction as
defined in section 63(c) of the Internal Revenue Code, minus any addition that would have
been required under clause (17) if the taxpayer had claimed the standard deduction. For
the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are
the last itemized deductions disallowed under clause (15);

(3) the capital gain amount of a lump-sum distribution to which the special tax under
section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;

(4) the amount of income taxes paid or accrued within the taxable year under this
chapter and taxes based on net income paid to any other state or any province or territory
of Canada, to the extent allowed as a deduction in determining federal adjusted gross
income. For the purpose of this paragraph, income taxes do not include the taxes imposed
by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729;

(5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10
other than expenses or interest used in computing net interest income for the subtraction
allowed under subdivision 19b, clause (1);

(6) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(7) 80 percent of the depreciation deduction allowed under section 168(k) of the
Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that
in the taxable year generates a deduction for depreciation under section 168(k) and the
activity generates a loss for the taxable year that the taxpayer is not allowed to claim for
the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is
limited to excess of the depreciation claimed by the activity under section 168(k) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k) is allowed;

(8) 80 percent of the amount by which the deduction allowed by section 179 of the
Internal Revenue Code exceeds the deduction allowable deleted text begin by deleted text end new text begin under the dollar limits of new text end
section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;

(9) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(10) the amount of expenses disallowed under section 290.10, subdivision 2;

(11) for taxable years beginning before January 1, 2010, the amount deducted for
qualified tuition and related expenses under section 222 of the Internal Revenue Code, to
the extent deducted from gross income;

(12) for taxable years beginning before January 1, 2010, the amount deducted for
certain expenses of elementary and secondary school teachers under section 62(a)(2)(D)
of the Internal Revenue Code, to the extent deducted from gross income;

(13) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code;

(14) changes to federal taxable income attributable to a net operating loss that the
taxpayer elected to carry back for more than two years for federal purposes but for which
the losses can be carried back for only two years under section 290.095, subdivision
11, paragraph (c);

(15) the amount of disallowed itemized deductions, but the amount of disallowed
itemized deductions plus the addition required under clause (2) may not be more than the
amount by which the itemized deductions as allowed under section 63(d) of the Internal
Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of
the Internal Revenue Code, and reduced by any addition that would have been required
under clause (17) if the taxpayer had claimed the standard deduction:

(i) the amount of disallowed itemized deductions is equal to the lesser of:

(A) three percent of the excess of the taxpayer's federal adjusted gross income
over the applicable amount; or

(B) 80 percent of the amount of the itemized deductions otherwise allowable to the
taxpayer under the Internal Revenue Code for the taxable year;

(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a
married individual filing a separate return. Each dollar amount shall be increased by
an amount equal to:

(A) such dollar amount, multiplied by

(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
Revenue Code for the calendar year in which the taxable year begins, by substituting
"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;

(iii) the term "itemized deductions" does not include:

(A) the deduction for medical expenses under section 213 of the Internal Revenue
Code;

(B) any deduction for investment interest as defined in section 163(d) of the Internal
Revenue Code; and

(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or
theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue
Code or for losses described in section 165(d) of the Internal Revenue Code;

(16) the amount of disallowed personal exemptions for taxpayers with federal
adjusted gross income over the threshold amount:

(i) the disallowed personal exemption amount is equal to the number of personal
exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied
by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the
Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal
Revenue Code, and by the applicable percentage;

(ii) "applicable percentage" means two percentage points for each $2,500 (or
fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable
year exceeds the threshold amount. In the case of a married individual filing a separate
return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In
no event shall the applicable percentage exceed 100 percent;

(iii) the term "threshold amount" means:

(A) $150,000 in the case of a joint return or a surviving spouse;

(B) $125,000 in the case of a head of a household;

(C) $100,000 in the case of an individual who is not married and who is not a
surviving spouse or head of a household; and

(D) $75,000 in the case of a married individual filing a separate return; and

(iv) the thresholds shall be increased by an amount equal to:

(A) such dollar amount, multiplied by

(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal
Revenue Code for the calendar year in which the taxable year begins, by substituting
"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; deleted text begin and
deleted text end

(17) to the extent deducted in the computation of federal taxable income, for taxable
years beginning after December 31, 2010, and before January 1, 2014, the difference
between the standard deduction allowed under section 63(c) of the Internal Revenue Code
and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue
Code as amended through December 1, 2010 new text begin ; and
new text end

new text begin (18) to the extent deducted in the computation of federal taxable income, the amount
of charitable contributions under section 170 of the Internal Revenue Code used to claim
the credit under section 290.06, subdivision 37 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin The change to clause (8) is effective the day following final
enactment, except the changes incorporated by federal changes are effective retroactively
at the same time as the changes were effective for federal purposes. Clause (18) is
effective for taxable years beginning after December 31, 2015.
new text end

Sec. 6.

Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:

Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. No
deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
the qualifying child's vehicle to provide such transportation for a qualifying child. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
under the provisions of Public Law 109-1 and Public Law 111-126;

(7) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;

(8) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
clause (12), in the case of a shareholder of an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. The resulting delayed depreciation cannot be less than zero;

(9) job opportunity building zone income as provided under section 469.316;

(10) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service, including compensation for services performed
under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
service" means (i) state active service as defined in section 190.05, subdivision 5a, clause
(1); or (ii) federally funded state active service as defined in section 190.05, subdivision
5b, and "active service" includes service performed in accordance with section 190.08,
subdivision 3;

(11) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States
or United Nations for active duty performed under United States Code, title 10; or the
authority of the United Nations;

(12) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(13) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;

(14) to the extent included in the federal taxable income of a nonresident of
Minnesota, compensation paid to a service member as defined in United States Code, title
10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
Act, Public Law 108-189, section 101(2);

(15) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
program;

(16) to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under subdivision 19a, clause (13);

(17) the amount of the net operating loss allowed under section 290.095, subdivision
11, paragraph (c);

(18) the amount of expenses not allowed for federal income tax purposes due
to claiming the railroad track maintenance credit under section 45G(a) of the Internal
Revenue Code;

(19) the amount of the limitation on itemized deductions under section 68(b) of
the Internal Revenue Code; new text begin and
new text end

(20) the amount of the phaseout of personal exemptions under section 151(d) of
the Internal Revenue Code deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (21) to the extent included in federal taxable income, the amount of qualified
transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
Revenue Code. The subtraction is limited to the lesser of the amount of qualified
transportation fringe benefits received in excess of the limitations under section
132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
of the Internal Revenue Code.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective retroactively at the same
time as the changes were effective for federal purposes.
new text end

Sec. 7.

Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:

Subd. 19c.

Corporations; additions to federal taxable income.

For corporations,
there shall be added to federal taxable income:

(1) the amount of any deduction taken for federal income tax purposes for income,
excise, or franchise taxes based on net income or related minimum taxes, including but not
limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of Columbia, or any
foreign country or possession of the United States;

(2) interest not subject to federal tax upon obligations of: the United States, its
possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
state, any of its political or governmental subdivisions, any of its municipalities, or any
of its governmental agencies or instrumentalities; the District of Columbia; or Indian
tribal governments;

(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
Revenue Code;

(4) the amount of any net operating loss deduction taken for federal income tax
purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
deduction under section 810 of the Internal Revenue Code;

(5) the amount of any special deductions taken for federal income tax purposes
under sections 241 to 247 and 965 of the Internal Revenue Code;

(6) losses from the business of mining, as defined in section 290.05, subdivision 1,
clause (a), that are not subject to Minnesota income tax;

(7) the amount of any capital losses deducted for federal income tax purposes under
sections 1211 and 1212 of the Internal Revenue Code;

(8) the amount of percentage depletion deducted under sections 611 through 614 and
291 of the Internal Revenue Code;

(9) for certified pollution control facilities placed in service in a taxable year
beginning before December 31, 1986, and for which amortization deductions were elected
under section 169 of the Internal Revenue Code of 1954, as amended through December
31, 1985, the amount of the amortization deduction allowed in computing federal taxable
income for those facilities;

(10) the amount of a partner's pro rata share of net income which does not flow
through to the partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;

(11) any increase in subpart F income, as defined in section 952(a) of the Internal
Revenue Code, for the taxable year when subpart F income is calculated without regard to
the provisions of Division C, title III, section 303(b) of Public Law 110-343;

(12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A)
and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer
has an activity that in the taxable year generates a deduction for depreciation under
section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year
that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed
under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the
depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the
amount of the loss from the activity that is not allowed in the taxable year. In succeeding
taxable years when the losses not allowed in the taxable year are allowed, the depreciation
under section 168(k)(1)(A) and (k)(4)(A) is allowed;

(13) 80 percent of the amount by which the deduction allowed by section 179 of
the Internal Revenue Code exceeds the deduction allowable deleted text begin by deleted text end new text begin under the dollar limits of new text end
section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;

(14) to the extent deducted in computing federal taxable income, the amount of the
deduction allowable under section 199 of the Internal Revenue Code;

(15) the amount of expenses disallowed under section 290.10, subdivision 2; deleted text begin and
deleted text end

(16) discharge of indebtedness income resulting from reacquisition of business
indebtedness and deferred under section 108(i) of the Internal Revenue Code new text begin ; and
new text end

new text begin (17) to the extent deducted in the computation of federal taxable income, the amount
of charitable contributions under section 170 of the Internal Revenue Code used to claim
the credit under section 290.06, subdivision 37 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin The change to clause (13) is effective the day following final
enactment, except the changes incorporated by federal changes are effective retroactively
at the same time as the changes were effective for federal purposes. Clause (17) is
effective for taxable years beginning after December 31, 2015.
new text end

Sec. 8.

Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is
amended to read:

Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through December
31, deleted text begin 2014 deleted text end new text begin 2015 new text end . Internal Revenue Code also includes any uncodified provision in federal
law that relates to provisions of the Internal Revenue Code that are incorporated into
Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
amended through March 18, 2010.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except the changes incorporated by federal changes are effective retroactively at the same
time as the changes were effective for federal purposes.
new text end

Sec. 9.

Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision
to read:

new text begin Subd. 37. new text end

new text begin Prepared food donation credit. new text end

new text begin (a) A qualifying taxpayer is allowed a
credit against the tax imposed by this chapter equal to 20 percent of the taxpayer's eligible
charitable food donation. The credit may not exceed the taxpayer's liability for tax and
may not be carried forward to any other taxable year.
new text end

new text begin (b) For purposes of this subdivision, the following terms have the meanings given:
new text end

new text begin (1) "eligible charitable food donation" means a contribution of prepared food
allowable as a charitable deduction for the taxable year under section 170(a) of the Internal
Revenue Code, subject to the limitations of section 170(b) of the Internal Revenue Code,
and determined without regard to whether or not the taxpayer itemizes deductions;
new text end

new text begin (2) "prepared food" means food that meets all quality and labeling standards
imposed by federal, state, and local laws and regulations even though the food may not
be readily marketable due to appearance, age, freshness, grade, size, surplus, or other
conditions, and includes:
new text end

new text begin (i) food which is cooked or heated by the qualifying taxpayer;
new text end

new text begin (ii) two or more ingredients mixed together to be eaten as a single item; and
new text end

new text begin (iii) any ingredients supplied for ingestion or chewing by humans that are consumed
for their taste or nutritional value;
new text end

new text begin (3) "qualifying taxpayer" means any restaurant making a charitable food donation
in Minnesota; and
new text end

new text begin (4) "restaurant" means any facility:
new text end

new text begin (i) which is operated for profit;
new text end

new text begin (ii) where the usual and customary business is the serving of meals to consumers;
new text end

new text begin (iii) which has a kitchen within the facility; and
new text end

new text begin (iv) which receives at least 70 percent of its gross receipts from the sale of prepared
food.
new text end

new text begin (c) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under subdivision 2c, paragraph (e).
new text end

new text begin (d) Credits allowed to a partnership, a limited liability company taxed as a
partnership, an S corporation, or multiple owners of property are passed through to the
partners, members, shareholders, or owners, respectively, pro rata to each partner, member,
shareholder, or owner based on their share of the entity's income for the taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 10.

Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1,
is amended to read:

Subdivision 1.

Credit allowed.

(a) An individual who is a resident of Minnesota is
allowed a credit against the tax imposed by this chapter equal to a percentage of earned
income. To receive a credit, a taxpayer must be eligible for a credit under section 32
of the Internal Revenue Code new text begin without regard to the earned income or adjusted gross
income limitations new text end .

(b) For individuals with no qualifying children, the credit equals deleted text begin 2.10 deleted text end new text begin 3.0 new text end percent
of the first deleted text begin $6,180 deleted text end new text begin $6,500 new text end of earned income. The credit is reduced by deleted text begin 2.01 deleted text end new text begin 3.0 new text end percent
of earned income or adjusted gross income, whichever is greater, in excess of deleted text begin $8,130
deleted text end new text begin $12,000 new text end , but in no case is the credit less than zero. new text begin For individuals qualifying under
this paragraph, the taxpayer must have been at least 21 years of age, but under 65 years
of age, at the end of the tax year.
new text end

(c) For individuals with one qualifying child, the credit equals deleted text begin 9.35 deleted text end new text begin 12.71 new text end percent
of the first deleted text begin $11,120 deleted text end new text begin $8,350 new text end of earned income. The credit is reduced by deleted text begin 6.02 deleted text end new text begin 5.2 new text end percent
of earned income or adjusted gross income, whichever is greater, in excess of deleted text begin $21,190
deleted text end new text begin $21,620 new text end , but in no case is the credit less than zero.

(d) For individuals with two or more qualifying children, the credit equals deleted text begin 11 deleted text end new text begin 14.94
new text end percent of the first deleted text begin $18,240 deleted text end new text begin $13,700 new text end of earned income. The credit is reduced by deleted text begin 10.82
deleted text end new text begin 9.2 new text end percent of earned income or adjusted gross income, whichever is greater, in excess of
deleted text begin $25,130 deleted text end new text begin $25,640 new text end , but in no case is the credit less than zero.

(e) For a part-year resident, the credit must be allocated based on the percentage
calculated under section 290.06, subdivision 2c, paragraph (e).

(f) For a person who was a resident for the entire tax year and has earned income
not subject to tax under this chapter, including income excluded under section 290.01,
subdivision 19b, clause (9), the credit must be allocated based on the ratio of federal
adjusted gross income reduced by the earned income not subject to tax under this chapter
over federal adjusted gross income. For purposes of this paragraph, the subtractions
for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not
considered "earned income not subject to tax under this chapter."

For the purposes of this paragraph, the exclusion of combat pay under section 112
of the Internal Revenue Code is not considered "earned income not subject to tax under
this chapter."

(g) deleted text begin For tax years beginning after December 31, 2007, and before December 31,
2010, and for tax years beginning after December 31, 2017, the $8,130 in paragraph (b),
the $21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for
inflation under subdivision 7, are each increased by $3,000 for married taxpayers filing joint
returns. For tax years beginning after December 31, 2008, the commissioner shall annually
adjust the $3,000 by the percentage determined pursuant to the provisions of section 1(f)
of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall be
substituted for the word "1992." For 2009, the commissioner shall then determine the
percent change from the 12 months ending on August 31, 2007, to the 12 months ending on
August 31, 2008, and in each subsequent year, from the 12 months ending on August 31,
2007, to the 12 months ending on August 31 of the year preceding the taxable year. The
earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.
deleted text end

deleted text begin (h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014,
the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph
(d), after being adjusted for inflation under subdivision 7, are increased by $5,340 for
married taxpayers filing joint returns; and (2) deleted text end For tax years beginning after December 31,
deleted text begin 2013 deleted text end new text begin 2015 new text end , deleted text begin and before January 1, 2018, deleted text end the deleted text begin $8,130 deleted text end new text begin $12,000 new text end in paragraph (b), the deleted text begin $21,190
deleted text end new text begin $21,620 new text end in paragraph (c), and the deleted text begin $25,130 deleted text end new text begin $25,640 new text end in paragraph (d), after being adjusted for
inflation under subdivision 7, are each increased by deleted text begin $5,000 deleted text end new text begin $5,550 new text end for married taxpayers
filing joint returns. For deleted text begin tax years beginning after December 31, 2010, and before January
1, 2012, and for deleted text end tax years beginning after December 31, deleted text begin 2013 deleted text end new text begin 2016 new text end , deleted text begin and before January
1, 2018, deleted text end the commissioner shall annually adjust the deleted text begin $5,000 deleted text end new text begin $5,550 new text end by the percentage
determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B), the word deleted text begin "2008" deleted text end new text begin "2015" new text end shall be substituted for the word "1992."
For deleted text begin 2011 deleted text end new text begin 2017 new text end , the commissioner shall then determine the percent change from the 12
months ending on August 31, deleted text begin 2008 deleted text end new text begin 2015 new text end , to the 12 months ending on August 31, deleted text begin 2010
deleted text end new text begin 2016 new text end , and in each subsequent year, from the 12 months ending on August 31, deleted text begin 2008 deleted text end new text begin 2015 new text end ,
to the 12 months ending on August 31 of the year preceding the taxable year. The earned
income thresholds as adjusted for inflation must be rounded to the nearest $10. If the
amount ends in $5, the amount is rounded up to the nearest $10. The determination of the
commissioner under this subdivision is not a rule under the Administrative Procedure Act.

(i) The commissioner shall construct tables showing the amount of the credit at
various income levels and make them available to taxpayers. The tables shall follow
the schedule contained in this subdivision, except that the commissioner may graduate
the transition between income brackets.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for tax years beginning after
December 31, 2015.
new text end

Sec. 11.

new text begin [290.0693] CITIZENSHIP CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin An individual is allowed a credit against the tax
imposed by this chapter equal to qualified citizenship expenses paid for a qualified citizen
applicant. The maximum credit per qualified citizen applicant is $700.
new text end

new text begin Subd. 2. new text end

new text begin Limitations on credit. new text end

new text begin (a) The credit is not allowed if the sum of an
individual's income and the individual's spouse's income exceeds 200 percent of the
federal poverty guideline.
new text end

new text begin (b) For an individual who is not a Minnesota resident for the entire year, the credit
must be apportioned using the percentage calculated in section 290.06, subdivision 2c,
paragraph (e).
new text end

new text begin (c) The credit is not allowed to an individual who is eligible to be claimed as a
dependent.
new text end

new text begin (d) The credit is not allowed for a qualified citizenship applicant who qualifies for a
federal waiver of qualified citizenship expenses.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Dependent" has the meaning given in sections 151 and 152 of the Internal
Revenue Code.
new text end

new text begin (c) "Federal poverty guideline" means the guideline most recently published in the
Federal Register, adjusted for family size.
new text end

new text begin (d) "Income" has the meaning given in section 290.067, subdivision 2a.
new text end

new text begin (e) "Qualified citizenship expenses" means filing fees, including both application and
biometric fingerprint fees, paid to the United States Citizenship and Immigration Services
in connection with an N-400 naturalization application for a qualified citizenship applicant.
new text end

new text begin (f) "Qualified citizenship applicant" means the individual, the individual's spouse,
or a dependent of the individual.
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that the claimant is eligible to
receive under this section exceeds the claimant's liability for tax under this chapter, the
commissioner of revenue shall refund the excess to the claimant.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 12.

new text begin [290.0694] CREDIT FOR NAMELESS JOB APPLICATION REVIEW
PROCESS IMPLEMENTATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following definitions
apply.
new text end

new text begin (b) "Nameless job application review process" means a system or process that:
new text end

new text begin (1) removes the name of job applicants prior to review of the applicant's application
or request for interview, whether submitted in writing or online; and
new text end

new text begin (2) prevents any person reviewing job applications or requests for interview from
knowing the name of the applicant prior to or during review of the applicant's job
application or request for interview.
new text end

new text begin (c) "Qualified employer" means an employer that maintains a nameless job
application review process registered with the commissioner of human rights under
subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A qualified employer who is required to file a return
under section 289A.08, subdivision 1, 2, or 3, is allowed a credit against the tax due
under this chapter equal to $100 per employee employed in Minnesota, up to $40,000 per
taxable year. The number of employees equals the average number of full-time equivalent
employees employed by the qualified employer in the 12 months immediately preceding
registration with the commissioner of human rights.
new text end

new text begin (b) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin (a) If the amount of credit that an individual is
allowed under this section exceeds the individual's tax liability under this chapter, the
commissioner shall refund the excess to the individual.
new text end

new text begin (b) The total amount of credits allocated in a calendar year must not exceed
$1,000,000. Credits must be processed and issued in the order that complete and accurate
returns are filed by the claimant.
new text end

new text begin Subd. 4. new text end

new text begin Registration requirement. new text end

new text begin (a) An employer must register with the
commissioner of human rights to become a qualified employer. The registration must be
in a form and manner prescribed by the commissioner of human rights in consultation
with the commissioner of revenue.
new text end

new text begin (b) The commissioner of human rights must implement procedures to verify the
information in an employer's registration to become a qualified employer and to monitor a
qualified employer's compliance in maintaining a nameless job application review process.
new text end

new text begin (c) A qualified employer must annually renew its registration with the commissioner
of human rights. An employer that ceases to be a qualified employer at any time during a
taxable year is not allowed the credit under this section.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 13.

new text begin [290.0695] STUDENT LOAN CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Education profession" means:
new text end

new text begin (1) a full-time job in public education; early childhood education, including licensed
or regulated child care, Head Start, and state-funded prekindergarten; school-based library
sciences; and other school-based services; or
new text end

new text begin (2) a full-time job as a faculty member at a tribal college or university as defined in
section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs
subject areas or areas of shortage, including nurse faculty, foreign language faculty, and
part-time faculty at community colleges, as determined by the United States Secretary
of Education.
new text end

new text begin (c) "Eligible individual" means an individual who has one or more qualified
education loans related to an undergraduate or graduate degree program at a postsecondary
educational institution.
new text end

new text begin (d) "Eligible loan payments" means the amount the eligible individual paid during
the taxable year to pay principal and interest on qualified education loans.
new text end

new text begin (e) "Modified adjusted gross income" has the meaning given in section 221(b)(2)(C)
of the Internal Revenue Code.
new text end

new text begin (f) "Postsecondary educational institution" means a postsecondary institution eligible
for state student aid under section 136A.103 or, if the institution is not located in this state,
a postsecondary institution participating in the federal Pell Grant program under Title IV
of the Higher Education Act of 1965, Public Law 89-329, as amended.
new text end

new text begin (g) "Public service job" means a full-time job in emergency management;
government, excluding time served as a member of Congress; military service; public
safety; law enforcement; public health, including nurses, nurse practitioners, nurses
in a clinical setting, and full-time professionals engaged in health care practitioner
occupations and health care support occupations, as such terms are defined by the Bureau
of Labor Statistics; social work in a public child or family service agency; public interest
law services including prosecution or public defense or legal advocacy on behalf of
low-income communities at a nonprofit organization; public service for individuals with
disabilities or public service for the elderly; public library sciences; or at an organization
that is described in section 501(c)(3) of the Internal Revenue Code and exempt from
taxation under section 501(a) of the Internal Revenue Code.
new text end

new text begin (h) "Qualified education loan" has the meaning given in section 221 of the Internal
Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual
or the eligible individual's spouse.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An eligible individual or the parent of an eligible
individual is allowed a credit against the tax due under this chapter. The credit equals a
percentage of eligible loan payments in excess of ten percent of adjusted gross income,
up to $1,000, as follows:
new text end

new text begin (1) for eligible individuals, 50 percent;
new text end

new text begin (2) for eligible individuals in a public service job, 65 percent; and
new text end

new text begin (3) for eligible individuals in an education profession, 75 percent.
new text end

new text begin (b) The credit for the parent of an eligible individual, eligible individual in a public
service job, or eligible individual in an education profession equals the amount of eligible
loan payments made by the parent of the eligible individual, eligible individual in a public
service job, or eligible individual in an education profession during the taxable year, up to
$1,000, less the amount of credit allowed to the eligible individual, eligible individual in a
public service job, or eligible individual in an education profession under paragraph (a).
new text end

new text begin (c) For a nonresident or part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin (d) An eligible individual or the parent of an eligible individual may receive the
credit under this section without regard to the individual's eligibility for the public service
loan forgiveness program under United States Code, title 20, section 1087e(m).
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an individual who is a
resident or part-year resident of Minnesota is eligible to receive under this section exceeds
the individual's tax liability under this chapter, the commissioner shall refund the excess
to the individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's
liability for tax under this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 14.

new text begin [290.0696] READING CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Reading credit. new text end

new text begin (a) A taxpayer is allowed a credit, up to $3,000,
against the tax imposed by this chapter. The credit amount equals 75 percent of the amount
of eligible expenses paid by a taxpayer who is a parent or guardian of a qualifying child:
new text end

new text begin (1) who has been evaluated for determination of a specific learning disability under
Minnesota Rules, part 3525.1341, or by a licensed psychologist; and
new text end

new text begin (2) for whom the evaluation indicated a determination of dyslexia, a specific
learning disability, or a deficit in basic reading skills, reading comprehension, reading
fluency, or spelling.
new text end

new text begin (b) For purposes of this subdivision, the following definitions apply:
new text end

new text begin (1) "eligible expenses" means actual expenses, less the amount of expenses used to
claim the credit under section 290.0674, subdivision 1, paid by the taxpayer for tutoring,
instruction, treatment by an instructor, or an evaluation under paragraph (a), clause (1),
and not compensated by insurance, pretax account, or otherwise, for purposes of meeting
the academic standards required under section 120B.021;
new text end

new text begin (2) "instructor" means a person qualifying under section 120A.22, subdivision 10,
clauses (1) to (5), who is not a lineal ancestor or sibling of the qualifying child;
new text end

new text begin (3) "treatment" means instruction that:
new text end

new text begin (i) teaches language decoding skills in a systematic manner;
new text end

new text begin (ii) uses recognized diagnostic assessments to determine what intervention would be
most appropriate for individual students; and
new text end

new text begin (iii) employs a research-based method; and
new text end

new text begin (4) "qualifying child" has the meaning given in section 32(c)(3) of the Internal
Revenue Code.
new text end

new text begin (c) A taxpayer claiming the credit under this subdivision must provide documentation
of eligibility for the credit in a form and manner prescribed by the commissioner in
consultation with the commissioner of education. The documentation under this paragraph
must not disclose any information other than that necessary to prove eligibility for the
credit allowed under this subdivision.
new text end

new text begin (d) For a nonresident or part-year resident, the credit determined under this section
must be allocated based on the percentage calculated under section 290.06, subdivision
2c, paragraph (e).
new text end

new text begin (e) The amount used to claim the credit under this section must be excluded from
any amount subtracted from federal taxable income under section 290.01, subdivision
19b, clause (3).
new text end

new text begin Subd. 2. new text end

new text begin Assignment of refunds. new text end

new text begin The provisions of section 290.0679, except
for subdivision 1, paragraphs (a) and (b), apply to the assignment of refunds authorized
under this section. For purposes of assignment of refund under this section, "qualifying
taxpayer" means a taxpayer qualified to receive a credit under this section. In no case shall
any condition for assignment require disclosure of the specific findings of an evaluation
for a specific learning disability.
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable. new text end

new text begin If the amount of total credits that the claimant is
eligible to receive under this section exceeds the claimant's tax liability under this chapter,
the commissioner shall refund the excess to the claimant.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds authorized under
this section is appropriated to the commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 15.

new text begin [290.0697] CREDIT FOR PARENTS OF STILLBORN CHILDREN.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin (a) An individual is allowed a credit against the
tax imposed by this chapter equal to $2,000 for each birth for which a certificate of
birth resulting in stillbirth has been issued under section 144.2151. The credit under
this section is allowed only in the taxable year in which the stillbirth occurred and if
the child would have been a dependent of the taxpayer as defined in section 152 of the
Internal Revenue Code.
new text end

new text begin (b) For a part-year resident, the credit must be allocated based on the percentage
calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 2. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that an individual is
allowed under this section exceeds the individual's tax liability under this chapter, the
commissioner shall refund the excess to the individual.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is appropriated to the commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2015.
new text end

Sec. 16.

Minnesota Statutes 2014, section 290.091, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given:

(a) "Alternative minimum taxable income" means the sum of the following for
the taxable year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative
minimum taxable income, but excluding:

(i) the charitable contribution deduction under section 170 of the Internal Revenue
Code;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a disabled person;

(3) for depletion allowances computed under section 613A(c) of the Internal
Revenue Code, with respect to each property (as defined in section 614 of the Internal
Revenue Code), to the extent not included in federal alternative minimum taxable income,
the excess of the deduction for depletion allowable under section 611 of the Internal
Revenue Code for the taxable year over the adjusted basis of the property at the end of the
taxable year (determined without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the
amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
Internal Revenue Code determined without regard to subparagraph (E);

(5) to the extent not included in federal alternative minimum taxable income, the
amount of interest income as provided by section 290.01, subdivision 19a, clause (1); deleted text begin and
deleted text end

(6) the amount of addition required by section 290.01, subdivision 19a, clauses
(7) to (9), and (11) to (14); new text begin and
new text end

new text begin (7) the amount of the addition required by section 290.01, subdivision 19a, clause
(18);
new text end

less the sum of the amounts determined under the following:

(1) interest income as defined in section 290.01, subdivision 19b, clause (1);

(2) an overpayment of state income tax as provided by section 290.01, subdivision
19b, clause (2), to the extent included in federal alternative minimum taxable income;

(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as
defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
amounts deducted in computing federal adjusted gross income;

(4) amounts subtracted from federal taxable income as provided by section 290.01,
subdivision 19b, clauses (6), (8) to (14), new text begin and new text end (16) deleted text begin , and (21) deleted text end ; and

(5) the amount of the net operating loss allowed under section 290.095, subdivision
11, paragraph (c).

In the case of an estate or trust, alternative minimum taxable income must be
computed as provided in section 59(c) of the Internal Revenue Code.

(b) "Investment interest" means investment interest as defined in section 163(d)(3)
of the Internal Revenue Code.

(c) "Net minimum tax" means the minimum tax imposed by this section.

(d) "Regular tax" means the tax that would be imposed under this chapter (without
regard to this section and section 290.032), reduced by the sum of the nonrefundable
credits allowed under this chapter.

(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable
income after subtracting the exemption amount determined under subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a), clause (7), is effective for taxable years
beginning after December 31, 2015. The change to paragraph (a), the second clause
(4), is effective the day following final enactment, except the changes incorporated by
federal changes are effective retroactively at the same time as the changes were effective
for federal purposes.
new text end

Sec. 17.

Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15,
is amended to read:

Subd. 15.

Internal Revenue Code.

"Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended through December 31, deleted text begin 2014 deleted text end new text begin 2015 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for property tax refunds
based on property taxes payable after December 31, 2015, and rent paid after December
31, 2014.
new text end

Sec. 18.

Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is
amended to read:

Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following
terms used in this chapter shall have the following meanings:

(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(2) "Federal gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
increased by the value of any property in which the decedent had a qualifying income
interest for life and for which an election was made under section 291.03, subdivision 1d,
for Minnesota estate tax purposes, but was not made for federal estate tax purposes.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of
1986, as amended through December 31, deleted text begin 2014 deleted text end new text begin 2015 new text end .

(4) "Minnesota gross estate" means the federal gross estate of a decedent after
(a) excluding therefrom any property included in the estate which has its situs outside
Minnesota, and (b) including any property omitted from the federal gross estate which
is includable in the estate, has its situs in Minnesota, and was not disclosed to federal
taxing authorities.

(5) "Nonresident decedent" means an individual whose domicile at the time of
death was not in Minnesota.

(6) "Personal representative" means the executor, administrator or other person
appointed by the court to administer and dispose of the property of the decedent. If there
is no executor, administrator or other person appointed, qualified, and acting within this
state, then any person in actual or constructive possession of any property having a situs in
this state which is included in the federal gross estate of the decedent shall be deemed
to be a personal representative to the extent of the property and the Minnesota estate tax
due with respect to the property.

(7) "Resident decedent" means an individual whose domicile at the time of death
was in Minnesota.

(8) "Situs of property" means, with respect to:

(i) real property, the state or country in which it is located;

(ii) tangible personal property, the state or country in which it was normally kept
or located at the time of the decedent's death or for a gift of tangible personal property
within three years of death, the state or country in which it was normally kept or located
when the gift was executed;

(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
Code, owned by a nonresident decedent and that is normally kept or located in this state
because it is on loan to an organization, qualifying as exempt from taxation under section
501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and

(iv) intangible personal property, the state or country in which the decedent was
domiciled at death or for a gift of intangible personal property within three years of death,
the state or country in which the decedent was domiciled when the gift was executed.

For a nonresident decedent with an ownership interest in a pass-through entity with
assets that include real or tangible personal property, situs of the real or tangible personal
property, including qualified works of art, is determined as if the pass-through entity does
not exist and the real or tangible personal property is personally owned by the decedent.
If the pass-through entity is owned by a person or persons in addition to the decedent,
ownership of the property is attributed to the decedent in proportion to the decedent's
capital ownership share of the pass-through entity.

(9) "Pass-through entity" includes the following:

(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;

(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;

(iii) a single-member limited liability company or similar entity, regardless of
whether it is taxed as an association or is disregarded for federal income tax purposes
under Code of Federal Regulations, title 26, section 301.7701-3; or

(iv) a trust to the extent the property is includible in the decedent's federal gross
estate; but excludes

(v) an entity whose ownership interest securities are traded on an exchange regulated
by the Securities and Exchange Commission as a national securities exchange under
section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.

new text begin EFFECTIVE DATE. new text end

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

Sec. 19. new text begin AMENDED RETURNS.
new text end

new text begin Subdivision 1. new text end

new text begin Certain IRA rollovers. new text end

new text begin An individual who excludes an amount
from net income in a prior taxable year through rollover of an airline payment amount to
a traditional IRA, as authorized under Public Law 114-113, division Q, title III, section
307, may file an amended individual income tax return and claim for refund of state taxes
as provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by
September 1, 2016.
new text end

new text begin Subd. 2. new text end

new text begin Exclusion for certain incarcerated individuals. new text end

new text begin An individual who
excludes from net income in a prior taxable year civil damages, restitution, or other
monetary award received as compensation for a wrongful incarceration, as authorized
under Public Law 114-113, division Q, title III, section 304, may file an amended
individual income tax return and claim for refund of state taxes as provided under
Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September 1, 2016.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 20. new text begin TAX TIME SAVINGS GRANT PROGRAM APPROPRIATION.
new text end

new text begin (a) $400,000 is appropriated in fiscal year 2017 from the general fund to the
commissioner of revenue to make grants under the tax time savings grant program under
Minnesota Statutes, section 270C.22. Of this amount, up to five percent may be used for
the administration of the tax time savings grant program.
new text end

new text begin (b) The base funding for the grant program authorized under paragraph (a) is
$400,000 each year.
new text end

Sec. 21. new text begin TAXPAYER ASSISTANCE GRANTS APPROPRIATION.
new text end

new text begin (a) $400,000 is appropriated in fiscal year 2017 from the general fund to the
commissioner of revenue for the provision of taxpayer assistance grants under Minnesota
Statutes, section 270C.21, in addition to the current base funding for the program. Of the
amount appropriated under this paragraph and the current base funding for the provision
of taxpayer assistance grants, up to five percent may be used for the administration of the
taxpayer assistance grants program.
new text end

new text begin (b) After fiscal year 2017, the base funding for the program under paragraph (a) is
$800,000 each year.
new text end

ARTICLE 2

SALES AND USE

Section 1.

Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) To the extent allowed by the United States
Constitution and the laws of the United States, "retailer maintaining a place of business in
this state," or a similar term, means a retailer:

(1) having or maintaining within this state, directly or by a subsidiary or an affiliate,
an office, place of distribution, sales new text begin , storage, new text end or sample room or place, warehouse, or
other place of business new text begin , including the employment of a resident of this state who works
from a home office in this state new text end ; or

(2) having a representative, including, but not limited to, an affiliate, agent,
salesperson, canvasser, deleted text begin or deleted text end new text begin marketplace provider, new text end solicitor new text begin , or other third party new text end operating in
this state under the authority of the retailer or its subsidiary, for any purpose, including the
repairing, selling, delivering, installing, new text begin facilitating sales, processing sales, new text end or soliciting
of orders for the retailer's goods or services, or the leasing of tangible personal property
located in this state, whether the place of business or agent, representative, affiliate,
salesperson, canvasser, or solicitor is located in the state permanently or temporarily, or
whether or not the retailer, subsidiary, or affiliate is authorized to do business in this state.

(b) "Destination of a sale" means the location to which the retailer makes delivery of
the property sold, or causes the property to be delivered, to the purchaser of the property,
or to the agent or designee of the purchaser. The delivery may be made by any means,
including the United States Postal Service or a for-hire carrier.

Sec. 2.

Minnesota Statutes 2014, section 297A.66, subdivision 3, is amended to read:

Subd. 3.

Retailer not maintaining place of business in this state.

(a) To the
extent allowed by the United States Constitution and in accordance with the terms and
conditions of federal remote seller law, a retailer making retail sales from outside this state
to a destination within this state and not maintaining a place of business in this state shall
collect sales and use taxes and remit them to the commissioner under section 297A.77.

(b) To the extent allowed by the United States Constitution and the laws of the
United States, a retailer making retail sales from outside this state to a destination within
this state and not maintaining a place of business in this state shall collect sales and use
taxes and remit them to the commissioner under section 297A.77, if the retailer engages in
the regular or systematic soliciting of sales from potential customers in this state by:

(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or
other written solicitations of business to customers in this state;

(2) display of advertisements on billboards or other outdoor advertising in this state;

(3) advertisements in newspapers published in this state;

(4) advertisements in trade journals or other periodicals the circulation of which is
primarily within this state;

(5) advertisements in a Minnesota edition of a national or regional publication or
a limited regional edition in which this state is included as part of a broader regional or
national publication which are not placed in other geographically defined editions of the
same issue of the same publication;

(6) advertisements in regional or national publications in an edition which is not
by its contents geographically targeted to Minnesota but which is sold over the counter
in Minnesota or by subscription to Minnesota residents;

(7) advertisements broadcast on a radio or television station located in Minnesota; deleted text begin or
deleted text end

(8) any other solicitation by telegraphy, telephone, computer database, cable, optic,
microwave, or other communication system deleted text begin . deleted text end new text begin ;
new text end

new text begin (9) engaging in direct response marketing in this state, either directly or indirectly
through a marketplace provider or other third party. For purposes of this section, "direct
response marketing" includes but is not limited to the following:
new text end

new text begin (i) sending, transmitting, or broadcasting of flyers, newsletters, telephone calls,
targeted e-mail, text messages, social media messages, or targeted mailings;
new text end

new text begin (ii) collecting, analyzing, and utilizing individual data on purchasers or potential
purchasers in this state;
new text end

new text begin (iii) using information or software, including cached files, cached software, cookies,
or other data-tracking tools, that are stored in or distributed within this state; or
new text end

new text begin (iv) conducting any other actions that use persons, tangible property, intangibles,
digital files or information, or software in this state in an effort to enhance the probability
that a person's contact with a customer in this state will result in a sale to that customer;
new text end

new text begin (10) conducting any part of the sale process in the state, regardless of whether that
part of the process has been subcontracted to an affiliate or third party, including listing
products or services for sale, soliciting, branding products, selling products, processing
orders, fulfilling orders, providing customer service, or accepting or assisting with returns
or exchanges. The sale process does not include shipping via a common carrier; or
new text end

new text begin (11) offering its products for sale through one or more marketplaces operated by
any marketplace provider required to collect and remit sales and use taxes in this state
under this section.
new text end

This paragraph must be construed without regard to the state from which distribution
of the materials originated or in which they were prepared.

(c) The location within or without this state of independent vendors that provide
products or services to the retailer in connection with its solicitation of customers within this
state, including such products and services as creation of copy, printing, distribution, and
recording, is not considered in determining whether the retailer is required to collect tax.

(d) A retailer not maintaining a place of business in this state is presumed, subject to
rebuttal, to be engaged in regular solicitation within this state if it engages in any of the
activities in paragraph (b) and:

(1) makes 100 or more retail sales from outside this state to destinations in this state
during a period of 12 consecutive months; or

(2) makes ten or more retail sales totaling more than $100,000 from outside this state
to destinations in this state during a period of 12 consecutive months.

Sec. 3.

Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read:

Subd. 4.

Affiliated entities.

(a) An entity is an "affiliate" of the retailer for purposes
of subdivision 1, paragraph (a), if new text begin the entity is a related party to the retailer and meets
any of the following conditions new text end :

(1) deleted text begin the entity deleted text end uses its facilities or employees in this state to advertise, promote, or
facilitate the establishment or maintenance of a market for sales of items by the retailer
to purchasers in this state or for the provision of services to the retailer's purchasers in
this state, such as accepting returns of purchases for the retailer, providing assistance in
resolving customer complaints of the retailer, or providing other services; deleted text begin and
deleted text end

(2) deleted text begin the retailer and the entity are related parties. deleted text end new text begin sells under the same or a similar
business name tangible personal property or taxable services similar to that sold by the
person against whom the presumption is asserted;
new text end

new text begin (3) maintains an office, distribution facility, salesroom, warehouse, storage place, or
other similar place of business in this state to facilitate the delivery of tangible personal
property or taxable services sold by the person against whom the presumption is asserted
to that person's in-state customers;
new text end

new text begin (4) uses, with consent or knowledge of the person against whom the presumption
is asserted, trademarks, service marks, or trade names in this state that are the same or
substantially similar to those used by the person against whom the presumption is asserted;
new text end

new text begin (5) delivers, installs, or assembles tangible personal property in this state, or
performs maintenance or repair services on tangible personal property in this state, if the
tangible personal property is sold to in-state customers by the person against whom the
presumption is asserted;
new text end

new text begin (6) facilitates the delivery of tangible personal property to in-state customers of the
person against whom the presumption is asserted by allowing the customers to pick up
tangible personal property sold by the person at an office, distribution facility, salesroom,
warehouse, storage place, or other similar place of business maintained in this state; or
new text end

new text begin (7) shares management, business systems, business practices, or employees with the
person against whom the presumption is asserted, or engages in intercompany transactions
with the person against whom the presumption is asserted related to the activities that
establish or maintain the market in this state of the person against whom the presumption
is asserted.
new text end

(b) Two entities are related parties under this section if one of the entities meets at
least one of the following tests with respect to the other entity:

(1) one or both entities is a corporation, and one entity and any party related to that
entity in a manner that would require an attribution of stock from the corporation to the
party or from the party to the corporation under the attribution rules of section 318 of the
Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50
percent of the value of the corporation's outstanding stock;

(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary,
and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital,
stock, or value of the other entity or both entities; deleted text begin or
deleted text end

(3) an individual stockholder and the members of the stockholder's family (as
defined in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially,
or constructively, in the aggregate, at least 50 percent of the value of both entities'
outstanding stock deleted text begin . deleted text end new text begin ;
new text end

new text begin (4) the entities are related within the meaning of subsections (b) and (c) of section
267 or 707(b)(1) of the Internal Revenue Code; or
new text end

new text begin (5) the entities have one or more ownership relationships and the relationships were
designed with a principal purpose of avoiding the application of this section.
new text end

(c) An entity is an affiliate under the provisions of this subdivision if the requirements
of paragraphs (a) and (b) are met during any part of the 12-month period ending on the
first day of the month before the month in which the sale was made.

Sec. 4.

Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision
to read:

new text begin Subd. 4b. new text end

new text begin Marketplace provider and marketplace seller. new text end

new text begin (a) For purposes of
subdivisions 1, paragraph (a), and 4c, "marketplace provider" means any person who
facilitates a retail sale by a seller. A marketplace provider facilitates a retail sale when
the marketplace provider:
new text end

new text begin (1) lists or advertises in any forum tangible personal property for sale or taxable
services for sale; and
new text end

new text begin (2) either directly or indirectly through agreements or arrangements with third parties
collects payment from the customer and transmits that payment to a seller, regardless
of whether the marketplace provider receives compensation or other consideration in
exchange for its services.
new text end

new text begin (b) "Marketplace seller" means a seller that has any sales facilitated by a marketplace
provider.
new text end

new text begin (c) A seller is presumed to have a marketplace provider in this state if the seller
enters into an agreement with a marketplace provider that maintains a place of business in
the state for the facilitation of retail sales.
new text end

new text begin (d) This subdivision applies only if the seller's total gross receipts are at least
$10,000 in the 12-month period ending on the last day of the most recent calendar quarter
before the calendar quarter in which the sale is made. For purposes of this paragraph,
"gross receipts" means receipts from sales to customers located in the state that were
facilitated by the marketplace provider.
new text end

new text begin (e) Nothing in this subdivision shall be construed to narrow the scope of the terms
affiliate, agent, salesperson, canvasser, solicitor, or other representative for purposes
of subdivision 1, paragraph (a).
new text end

new text begin (f) This subdivision does not apply to chapter 290 and does not expand or contract
the jurisdiction to tax a trade or business under chapter 290.
new text end

Sec. 5.

Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision
to read:

new text begin Subd. 4c. new text end

new text begin Collection and remittance requirements for marketplace providers
and marketplace sellers. new text end

new text begin (a) A marketplace provider that facilitates sales to customers
in this state shall collect sales and use taxes and remit them to the commissioner under
section 297A.77.
new text end

new text begin (b) The requirement under paragraph (a) does not apply to a marketplace provider if
the marketplace seller for whom the marketplace provider facilitates a sale either:
new text end

new text begin (1) provides a copy of the seller's registration to collect sales and use tax in this state
to the marketplace provider before the marketplace provider facilitates a sale; or
new text end

new text begin (2) the marketplace seller appears on a list published by the commissioner of revenue
of the entities registered to collect sales and use taxes in this state.
new text end

new text begin (c) The commissioner of revenue shall promulgate regulations regarding the content
and publication of the list under paragraph (b), clause (2). Nothing in this subdivision
shall be construed to interfere with the ability of a marketplace provider and a marketplace
seller to enter into an agreement regarding fulfillment of the requirements of this chapter.
new text end

new text begin (d) A marketplace provider is relieved of liability under this subdivision for failure
to collect and remit sales and use taxes to the extent that the marketplace provider
demonstrates that the error was due to incorrect or insufficient information given to the
marketplace provider by the marketplace seller. This paragraph does not apply if the
marketplace provider and the marketplace seller are related as defined in subdivision 4,
paragraph (b).
new text end

Sec. 6.

Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 49. new text end

new text begin Siding production facility materials. new text end

new text begin Building materials and supplies
for constructing a siding production facility that can produce at least 400,000,000 square
feet of siding per year are exempt. The tax must be imposed and collected as if the rate
under section 297A.62, subdivision 1, applied, and then refunded in the manner provided
in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
new text end

Sec. 7.

Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 50. new text end

new text begin Properties destroyed by fire. new text end

new text begin Building materials, equipment, and
supplies for constructing or replacing real property that is located in Madelia affected by
the fire on February 3, 2016, are exempt. The tax must be imposed and collected as if
the rate under section 297A.62, subdivision 1, applied and then refunded in the manner
provided in section 297A.75.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016, and before July 1, 2018.
new text end

Sec. 8.

Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision
to read:

new text begin Subd. 51. new text end

new text begin Former Duluth Central High School. new text end

new text begin Materials and supplies used
in and equipment incorporated into a private redevelopment project on the site of the
former Duluth Central High School are exempt, provided the resulting development is
subject to property taxes. The tax must be imposed and collected as if the rate under
section 297A.62, subdivision 1, applied and then refunded in the manner provided in
section 297A.75. The commissioner must not pay more than $5,000,000 in refunds for
purchases exempt under this section. Refunds must be processed and issued in the order
that complete and accurate applications are received by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016, and before January 1, 2018.
new text end

Sec. 9.

Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read:

Subdivision 1.

Tax collected.

The tax on the gross receipts from the sale of the
following exempt items must be imposed and collected as if the sale were taxable and the
rate under section 297A.62, subdivision 1, applied. The exempt items include:

(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;

(2) building materials for mineral production facilities exempt under section
297A.71, subdivision 14;

(3) building materials for correctional facilities under section 297A.71, subdivision 3;

(4) building materials used in a residence for disabled veterans exempt under section
297A.71, subdivision 11;

(5) elevators and building materials exempt under section 297A.71, subdivision 12;

(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;

(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;

(8) equipment and materials used for the generation, transmission, and distribution
of electrical energy and an aerial camera package exempt under section 297A.68,
subdivision 37;

(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3,
paragraph (a), clause (10);

(10) materials, supplies, and equipment for construction or improvement of projects
and facilities under section 297A.71, subdivision 40;

(11) materials, supplies, and equipment for construction, improvement, or expansion
of:

(i) an aerospace defense manufacturing facility exempt under section 297A.71,
subdivision 42;

(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71,
subdivision 45;

(iii) a research and development facility exempt under section 297A.71, subdivision
46; and

(iv) an industrial measurement manufacturing and controls facility exempt under
section 297A.71, subdivision 47;

(12) enterprise information technology equipment and computer software for use in
a qualified data center exempt under section 297A.68, subdivision 42;

(13) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44;

(14) items purchased for use in providing critical access dental services exempt
under section 297A.70, subdivision 7, paragraph (c); deleted text begin and
deleted text end

(15) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44 new text begin ;
new text end

new text begin (16) building materials and supplies for constructing a siding facility exempt under
section 297A.71, subdivision 49;
new text end

new text begin (17) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivision 50; and
new text end

new text begin (18) materials and supplies used in and equipment incorporated into a private
redevelopment project exempt under section 297A.71, subdivision 51 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin Clause (16) is effective for sales and purchases made after
June 30, 2016. Clause (17) is effective for sales and purchases made after June 30, 2016,
and before July 1, 2018. Clause (18) is effective for sales and purchases made after June
30, 2016, and before January 1, 2018.
new text end

Sec. 10.

Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read:

Subd. 2.

Refund; eligible persons.

Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
must be paid to the applicant. Only the following persons may apply for the refund:

(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;

(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;

(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;

(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;

(5) for subdivision 1, clause (6), the owner of the qualified low-income housing
project;

(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or
a joint venture of municipal electric utilities;

(7) for subdivision 1, clauses (8), (11), (12), deleted text begin and deleted text end (15), new text begin and (16), new text end the owner of the
qualifying business; deleted text begin and
deleted text end

(8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the
governmental entity that owns or contracts for the project or facility new text begin ; and
new text end

new text begin (9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or
developer of the building or project new text end .

new text begin EFFECTIVE DATE. new text end

new text begin The change to clause (7) is effective for sales and purchases
made after June 30, 2016. Clause (9) is effective for sales and purchases made after June
30, 2016, and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71,
subdivision 1, clause (17), and for sales and purchases made after June 30, 2016, and
before January 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision
1, clause (18).
new text end

Sec. 11.

Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read:

Subd. 3.

Application.

(a) The application must include sufficient information
to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15) deleted text begin , deleted text end new text begin to (18), new text end the
contractor, subcontractor, or builder must furnish to the refund applicant a statement
including the cost of the exempt items and the taxes paid on the items unless otherwise
specifically provided by this subdivision. The provisions of sections 289A.40 and
289A.50 apply to refunds under this section.

(b) An applicant may not file more than two applications per calendar year for
refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2016.
new text end

Sec. 12. new text begin SEVERABILITY.
new text end

new text begin If any provision of sections 1 to 5 or 13 or the application thereof is held invalid,
such invalidity shall not affect the provisions or applications of the sections which can be
given effect without the invalid provisions or applications.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin (a) The provisions of sections 1 to 5 of this article are effective upon a decision by
the United States Supreme Court overturning or expanding its decision in Quill Corp. v.
North Dakota, 504 U.S. 298 (1992), allowing a state to require retailers without a physical
presence in the state to collect and remit sales tax.
new text end

new text begin (b) Notwithstanding paragraph (a) or the provisions of sections 1 to 5, if a federal
law is enacted authorizing a state to impose a requirement to collect and remit sales tax
on retailers without a physical presence in the state, the commissioner must enforce the
provisions of this section and sections 1 to 5 to the extent allowed under federal law.
new text end

new text begin (c) The commissioner of revenue shall notify the revisor of statutes when either of
the provisions in paragraphs (a) or (b) apply.
new text end

ARTICLE 3

PROPERTY TAX

Section 1.

new text begin [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE
ASSOCIATION.
new text end

new text begin A cooperative electric association that has elected to be subject to rate regulation
under section 216B.026 is eligible to file with the commission for approval of an
adjustment for real and personal property taxes, fees, and permits.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2014, section 272.162, is amended to read:

272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.

Subdivision 1.

Conditions restricting transfer.

When a deed or other instrument
conveying a parcel of land is presented to the county auditor for transfer or division under
sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its
net tax capacity in the official records and shall not certify the instrument as provided in
section 272.12, if:

(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;

(b) The part conveyed appears within the area of application of municipal new text begin or
county new text end subdivision regulations adopted and filed under new text begin section 394.35 or new text end section 462.36,
subdivision 1; and

(c) The part conveyed is part of or constitutes a subdivision as defined in section
462.352, subdivision 12.

Subd. 2.

Conditions allowing transfer.

new text begin (a) new text end Notwithstanding the provisions of
subdivision 1, the county auditor may transfer or divide the land and its net tax capacity
and may certify the instrument if the instrument contains a certification by the clerk of
the municipality new text begin or designated county planning official new text end :

deleted text begin (a) deleted text end new text begin (1) new text end that the municipality's new text begin or county's new text end subdivision regulations do not apply;

deleted text begin (b) deleted text end new text begin (2) new text end that the subdivision has been approved by the governing body of the
municipality new text begin or county new text end ; or

deleted text begin (c) deleted text end new text begin (3) new text end that the restrictions on the division of taxes and filing and recording have
been waived by resolution of the governing body of the municipality new text begin or county new text end in the
particular case because compliance would create an unnecessary hardship and failure to
comply would not interfere with the purpose of the regulations.

new text begin (b) new text end If any of the conditions for certification by the municipality new text begin or county new text end as provided
in this subdivision exist and the municipality new text begin or county new text end does not certify that they exist
within 24 hours after the instrument of conveyance has been presented to the clerk of
the municipality new text begin or designated county planning official new text end , the provisions of subdivision 1
do not apply.

new text begin (c) new text end If an unexecuted instrument is presented to the municipality new text begin or county new text end and
any of the conditions for certification by the municipality new text begin or county new text end as provided in
this subdivision exist, the unexecuted instrument must be certified by the clerk of the
municipality new text begin or the designated county planning official new text end .

Subd. 3.

Applicability of restrictions.

new text begin (a) new text end This section does not apply to the
exceptions set forth in section 272.12.

new text begin (b) new text end This section applies only to land within municipalities new text begin or counties new text end which choose
to be governed by its provisions. A municipality new text begin or county new text end may choose to have this
section apply to the property within its boundaries by filing a certified copy of a resolution
of its governing body making that choice with the auditor and recorder of the county in
which it is located.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

new text begin [469.501] STATE GENERAL TAX REFUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Commissioner" means the commissioner of employment and economic
development.
new text end

new text begin (c) "Job creation zone" means an area including one or more contiguous census
tracts, as determined and measured by the United States Census Bureau, where the
unemployment rate average is at least 75 percent higher than the statewide average
unemployment rate as estimated by the United States Census Bureau using data collected
in the most recent American Community Survey.
new text end

new text begin (d) "Employee" and "wages" have the meanings given in section 290.92, subdivision
1.
new text end

new text begin Subd. 2. new text end

new text begin Eligible business. new text end

new text begin (a) An eligible business located within the seven-county
metropolitan area, or located outside the seven-county metropolitan area but in a city with
a population greater than 40,000, is an employer that: (1) is located in a job creation zone
as defined in subdivision 1; (2) pays at least 50 percent of the business's total wages to
employees who reside either within the job creation zone where the business is located or
any contiguous census tract; and (3) is a for-profit business.
new text end

new text begin (b) An eligible business located outside the seven-county metropolitan area and in a
city or township with a population less than 40,000 is an employer that: (1) pays at least
50 percent of the business's total wages to employees who reside in any job creation
zone not located in either the seven-county metropolitan area or in a city located outside
the seven-county metropolitan area with a population greater than 40,000; and (2) is a
for-profit business.
new text end

new text begin (c) If a business received a refund under this section in the immediately preceding
year, but does not qualify for a refund in the current year because the business is located
in an area that no longer meets the requirements of a job creation zone, as defined in
subdivision 1, the business may apply for a onetime refund in the current year equal to
one-half the amount of the refund issued to the business in the immediately preceding
year. A business that relocates outside of a job creation zone shall not be eligible for a
refund under this paragraph.
new text end

new text begin Subd. 3. new text end

new text begin Refund; authorized. new text end

new text begin The commissioner may approve an application for a
refund of the state general tax paid under section 275.025 applicable to that portion of
the property occupied by an eligible business. The owner of an eligible business must
apply annually to the commissioner by July 1 of each year on a form prescribed by the
commissioner in order to receive a refund for that year. Upon approval, the commissioner
shall notify the commissioner of revenue by September 1. The refund is equal to the state
general tax payable on the property where the eligible business is located multiplied by a
ratio, the numerator of which is the area of the property occupied by the eligible business
and the denominator of which is the total area of the property where the business is
located. The commissioner of revenue shall pay the amount determined under this section
to the eligible business owner by December 1.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to make the refunds under this
section is appropriated annually from the general fund to the commissioner of revenue.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin By January 15, 2023, the commissioner of employment and
economic development must provide a written report to the chairs and ranking minority
members of the legislative committees with jurisdiction over taxes and employment
including information regarding the refunds issued under this section. The report must
include, at a minimum, the number of refunds issued, the amount of each refund, the
identification and location of each business that received a refund, and employment data
used to determine eligibility under this section. The report must comply with sections
3.195 and 3.197.
new text end

new text begin Subd. 6. new text end

new text begin Sunset. new text end

new text begin This section applies to refunds for state general tax payments made
for taxes payable in 2016 through taxes payable in 2026.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications filed in calendar year
2016 for refunds of the state general tax payable in 2016 through 2026.
new text end

Sec. 4.

Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision
to read:

new text begin Subd. 1u. new text end

new text begin Obligations. new text end

new text begin (a) In addition to other authority in this section, the council
may issue certificates of indebtedness, bonds, or other obligations under this section in an
amount not exceeding $82,100,000 for capital expenditures as prescribed in the council's
transit capital improvement program and for related costs, including the costs of issuance
and sale of the obligations. Of this authorization, after July 1, 2016, the council may
issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding
$40,100,000, and after July 1, 2017, the council may issue certificates of indebtedness,
bonds, or other obligations in an additional amount not exceeding $42,000,000.
new text end

new text begin (b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

new text begin [477A.21] RIPARIAN PROTECTION AID.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) When used in this section, the following terms have
the meanings given them in this subdivision.
new text end

new text begin (b) "Public water basins" has the meaning provided in section 103G.005, subdivision
15, clauses (1) to (8) and (11).
new text end

new text begin (c) "Public watercourses" has the meaning provided in section 103G.005,
subdivision 15, clauses (9) and (10).
new text end

new text begin Subd. 2. new text end

new text begin Distribution. new text end

new text begin (a) Each county is eligible to receive aid under this section to
enforce and implement the riparian protection and water quality practices under section
103F.48. Aid to each county shall equal: (1) each county's share of the total number of
acres in the state classified as class 2a under section 273.13, subdivision 23, divided by
two; plus (2) each county's share of the number of miles of shoreline of public water
basins, each county's share of the number of centerline miles of public watercourses, and
each county's share of the number of miles of public drainage system ditches established
under chapter 103E, divided by two; multiplied by (3) $10,000,000.
new text end

new text begin (b) Aid to a county shall not be greater than $200,000 or less than $25,000. If the
sum of aids payable to counties under paragraph (a) is greater or less than the limit under
subdivision 4, the commissioner of revenue shall calculate the percentage adjustment
necessary so that the total of the aid under paragraph (a) equals the total amount available
for aid under subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Payments. new text end

new text begin The commissioner of revenue must compute the amount of
riparian protection aid payable to each county under this section. On or before July 1 of
each year, the commissioner of natural resources shall certify to the commissioner of
revenue the statewide and countywide total of miles of shoreline of public waters basins,
the number of centerline miles of public watercourses, and the miles of public drainage
system ditches. On or before August 1 of each year, the commissioner shall certify
the amount to be paid to each county in the following year. The commissioner shall
pay riparian protection aid to counties in the same manner and at the same time as aid
payments under section 477A.015.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin $10,000,000 for aids payable in 2017 and each year
thereafter is appropriated from the general fund to the commissioner of revenue to make
the payments required under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in 2017
and thereafter.
new text end

Sec. 6.

Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243,
article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154,
article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read:

Sec. 3. TAX; PAYMENT OF EXPENSES.

(a) The tax levied by the hospital district under Minnesota Statutes, section 447.34,
must not be levied at a rate that exceeds the amount authorized to be levied under that
section. The proceeds of the tax may be used for all purposes of the hospital district,
except as provided in paragraph (b).

(b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by
the Cook ambulance service and the Orr ambulance service for the purpose of:

(1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance
service;

(2) attached and portable equipment for use in and for the ambulances; and

(3) parts and replacement parts for maintenance and repair of the ambulances new text begin , and
administrative, operation, or salary expenses for the Cook ambulance service and the
Orr ambulance service new text end .

deleted text begin The money may not be used for administrative, operation, or salary expenses.
deleted text end

(c) The part of the levy referred to in paragraph (b) must be administered by the
Cook Hospital and passed on in equal amounts directly to the Cook area ambulance
service board and the city of Orr to be used for the purposes in paragraph (b).

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by
Laws 2013, chapter 143, article 4, section 36, is amended to read:

Subdivision 1.

Agreement.

The city of Cloquet and Perch Lake Township, by
resolution of each of their governing bodies, may establish the Cloquet Area Fire and
Ambulance new text begin Special new text end Taxing District for the purpose of providing fire or ambulance
services, or both, throughout the district. In this section, "municipality" means home rule
charter and statutory cities, towns, and Indian tribes. The district may exercise all the
powers relating to fire and ambulance services of the municipalities that receive fire or
ambulance services, or both, from the district. Upon application, any other municipality
may join the district with the agreement of the municipalities that comprise the district at
the time of its application to join.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
new text end

Sec. 8.

Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:

Subd. 2.

Board.

The Cloquet Area Fire and Ambulance new text begin Special new text end Taxing District
Board is governed by a board made up initially of one or more elected officials of the
governing body of each participating municipality in the proportions set out in the
establishing resolution, subject to change as provided in the district's charter, if any, or
in the district's bylaws. Each municipality's representatives serve at the pleasure of that
municipality's governing body.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
new text end

Sec. 9.

Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by
Laws 2013, chapter 143, article 4, section 37, is amended to read:

Subd. 3.

Tax.

new text begin (a) new text end The district board may impose a property tax on taxable property
as provided in this subdivision new text begin to pay the costs of providing fire or ambulance services,
or both, throughout the district new text end . The board shall annually determine the total amount of
the levy that is attributable to the cost of providing fire services and the cost of providing
ambulance services within the primary service area. For those municipalities that only
receive ambulance services, the costs for the provision of ambulance services shall
be levied against taxable property within those municipalities at a rate necessary not to
exceed 0.019 percent of the estimated market value. For those municipalities that receive
both fire and ambulance services, the tax shall be imposed at a rate that does not exceed
0.2835 percent of estimated market value.

new text begin (b) new text end When a member municipality opts to receive fire service from the district or
an additional municipality becomes a member of the district, the cost of providing fire
services to that community shall be determined by the board and added to the maximum
levy amount.

new text begin (c) new text end Each county auditor of a county that contains a municipality subject to the tax
under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing
District. The district may also impose other fees or charges as allowed by law for the
provision of fire and ambulance services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
new text end

Sec. 10.

Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:

Subd. 4.

Public indebtedness.

new text begin (a) new text end The district may incur debt in the manner
provided for a municipality by Minnesota Statutes, chapter 475, new text begin and may issue certificates
of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes,
section 412.301, new text end when necessary to accomplish its duties new text begin , except that the district may
not incur debt or issue obligations until first obtaining the approval of a majority of the
electors voting on the question of issuing the obligation. The debt service for debt used to
finance capital costs for ambulance service shall be levied against taxable property within
the municipalities in the primary service area. The debt service for debt used to finance
capital costs for fire service shall be levied against taxable property within municipalities
receiving fire services. The district board shall pledge its full faith and credit and taxing
power without limitation as to rate or amount for the payment of the district's debt new text end .

new text begin (b) For purposes of this subdivision, "municipality" has the definition given in
Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph
(c).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
new text end

Sec. 11.

Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:

Subd. 5.

Withdrawal.

Notice of intent to withdraw from participation in the district
may be given only in the month of January, with a minimum of twelve months notice of
intent to withdraw. Withdrawal becomes effective for taxes levied new text begin pursuant to subdivision
3 new text end in the year when the notice is given. new text begin A property tax on taxable property located in a
withdrawing municipality that has been levied by the district pursuant to subdivision 4
remains in effect until the obligations outstanding on the date of withdrawal are satisfied,
including any property tax levied in connection with refunding such obligations. new text end The
district and its members may new text begin also new text end develop and agree upon new text begin other new text end continuing obligations
after withdrawal of a municipality.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective in Cloquet and Perch Lake Township
the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the
governing body of each.
new text end

Sec. 12. new text begin 2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE
WAIVER.
new text end

new text begin If a city or town that conducts local board of appeal and equalization meetings
certified by February 1, 2016, that it was in compliance with the requirements of
Minnesota Statutes, section 274.014, subdivision 2, but no member of the local board
who has attended an appeal and equalization course training within the preceding four
years attended the local board's meeting for 2016, that local board shall have its powers
reinstated for the 2017 assessment by resolution of the governing body of the city or
town, and by certifying it is in compliance with the requirements of Minnesota Statutes,
section 274.014, subdivision 2. The resolution and certification must be provided to
the county assessor by February 1, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13. new text begin LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT
RECOMMENDATION.
new text end

new text begin The commissioner of revenue must prepare a written recommendation to the house
of representatives and senate taxes committees regarding the potential use of property tax
abatements in providing economic relief for businesses in the vicinity of Lake Mille Lacs
that were negatively affected by early closing of the walleye fishing season in 2015. The
recommendations must include:
new text end

new text begin (1) a proposed definition of an economic relief area in the vicinity of the lake;
new text end

new text begin (2) an overview of the impact of the early closing on businesses in the relief area;
new text end

new text begin (3) a discussion of the economic benefits a property tax abatement program would
provide to businesses in the relief area; and
new text end

new text begin (4) parameters for an abatement program.
new text end

new text begin The recommendation required under this section is due by January 2, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14. new text begin SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL
ASSESSMENT.
new text end

new text begin Any real or personal property acquired, owned, leased, controlled, used, or occupied
by the city of St. Paul for the primary purpose of providing a stadium for a Major League
Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for
public, governmental, and municipal purposes, and is exempt from ad valorem taxation by
the state or any political subdivision of the state, provided that the properties are subject to
special assessments levied by a political subdivision for a local improvement in amounts
proportionate to and not exceeding the special benefit received by the properties from the
improvement. In determining the special benefit received by the properties, no possible
use of any of the properties in any manner different from their intended use for providing a
Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota
Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a
lease or use agreement between the city and another person for uses related to the purposes
of the operation of the stadium and related parking facilities is exempt from taxation
regardless of the length of the lease or use agreement. This section, insofar as it provides
an exemption or special treatment, does not apply to any real property that is leased for
residential, business, or commercial development or other purposes different from those
necessary to the provision and operation of the stadium.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the St. Paul City
Council and compliance with Minnesota Statutes, section 645.021.
new text end

Sec. 15. new text begin APPROPRIATION.
new text end

new text begin $1,200,000 in fiscal year 2016 is appropriated from the general fund to the
commissioner of revenue for a grant to the city of Madelia that shall be paid by June
30, 2016. This appropriation is onetime.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 4

LOCAL DEVELOPMENT

Section 1.

Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to
read:

Subd. 2.

Special rules.

(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, new text begin economic development district, new text end soil condition district,
or a soil deficiency district established by the city or a development authority of the city
in the project area.

(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 80 percent of the acreage of the project area (excluding street and railroad right of
way) are characterized by one or more of the following conditions:

(1) peat or other soils with geotechnical deficiencies that impair development of
residential or commercial buildings or infrastructure;

(2) soils or terrain that requires substantial filling in order to permit the development
of commercial or residential buildings or infrastructure;

(3) landfills, dumps, or similar deposits of municipal or private waste;

(4) quarries or similar resource extraction sites;

(5) floodway; and

(6) substandard buildings within the meaning of Minnesota Statutes, section
469.174, subdivision 10.

(c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to
be characterized by the relevant condition if at least 70 percent of the area of the parcel
contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is
deemed to be characterized by substandard buildings if the buildings occupy at least 30
percent of the area of the parcel.

(d) new text begin The four-year rule under Minnesota Statutes, section 469.176, subdivision 6,
is extended to nine years for any district. new text end The five-year rule under Minnesota Statutes,
section 469.1763, subdivision 3, is extended to ten years for any district, and section
469.1763, subdivision 4, does not apply to any district.

(e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2,
paragraph (a), not more than 80 percent of the total revenue derived from tax increments
paid by properties in any district (measured over the life of the district) may be expended
on activities outside the district but within the project area.

(f) For a soil deficiency district:

(1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district; and

(2) except as otherwise provided in this subdivision, increments may be used only to:

(i) acquire parcels on which the improvements described in item (ii) will occur;

(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
additional cost of installing public improvements directly caused by the deficiencies; and

(iii) pay for the administrative expenses of the authority allocable to the district.

(g) Increments spent for any infrastructure costs, whether inside a district or outside
a district but within the project area, are deemed to satisfy the requirements of paragraph
(f) and Minnesota Statutes, section 469.176, subdivisions 4b new text begin , 4c, new text end and 4j.

(h) Increments from any district may not be used to pay the costs of landfill closure or
public infrastructure located on the following parcels within the plat known as Burnsville
Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.

(i) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires on December 31, deleted text begin 2018 deleted text end new text begin 2020 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of Burnsville and compliance with the requirements of Minnesota Statutes,
section 645.021.
new text end

Sec. 2.

Laws 2014, chapter 308, article 6, section 9, is amended to read:

Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING
DISTRICT.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms
have the meanings given them.

(b) "City" means the city of Maple Grove.

(c) "Project area" means new text begin all or a portion of new text end the area in the city commencing at a point
130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of
Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly
right-of-way line of Hemlock Lane; thence northerly along said easterly right-of-way line
of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of
section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the
east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South
74 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees
West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line
of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of
the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795
feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of
Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the
Northwest Quarter of Section 24; thence West along said south line to the east right-of-way
line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to
the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence
East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan
Industrial Park 5th Addition; thence South along the east line of said Outlot A and its
southerly extension to the south right-of-way line of County State-Aid Highway (CSAH)
109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the
Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east
line to the north line of the South Half of the Northeast Quarter of Section 24; thence East
along said north line to the westerly right-of-way line of Jefferson Highway North; thence
southerly along the westerly right-of-way line of Jefferson Highway to the centerline of
CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane
North to the westerly extension of the north line of Outlot A, Park North Fourth Addition;
thence easterly along the north line of Outlot A, Park North Fourth Addition to the
northeast corner of said Outlot A; thence southerly along the east line of said Outlot A
to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1,
Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway
169; thence southerly, southwesterly, westerly, and northwesterly along the westerly
right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate
694 to its intersection with the southerly extension of the easterly right-of-way line of
Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
and there terminating, provided that the project area includes the rights-of-way for all
present and future highway interchanges abutting the area described in this paragraph new text begin , and
may include any additional property necessary to cause the property included in the tax
increment financing district to consist of complete parcels new text end .

(d) "Soil deficiency district" means a type of tax increment financing district
consisting of a portion of the project area in which the city finds by resolution that the
following conditions exist:

(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and

(2) the estimated cost of the physical preparation under clause (1), but excluding
costs directly related to roads as defined in Minnesota Statutes, section 160.01, and
local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1,
clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land
before completion of the preparation.

Subd. 2.

Special rules.

(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment
district, renewal and renovation district, soil condition district, or soil deficiency district
established by the city or a development authority of the city in the project area.

(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting
of at least 80 percent of the acreage of the project area, excluding street and railroad
rights-of-way, are characterized by one or more of the following conditions:

(1) peat or other soils with geotechnical deficiencies that impair development of
commercial buildings or infrastructure;

(2) soils or terrain that require substantial filling in order to permit the development
of commercial buildings or infrastructure;

(3) landfills, dumps, or similar deposits of municipal or private waste;

(4) quarries or similar resource extraction sites;

(5) floodway; and

(6) substandard buildings, within the meaning of Minnesota Statutes, section
469.174, subdivision 10.

(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by
the relevant condition if at least 70 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area
of the parcel.

(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3,
is extended to eight years for any district, and Minnesota Statutes, section 469.1763,
subdivision 4, does not apply to any district.

(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section
469.1763, subdivision 2, paragraph (a), not more than 40 percent of the total revenue
derived from tax increments paid by properties in any district, measured over the life of
the district, may be expended on activities outside the district but within the project area.

(f) For a soil deficiency district:

(1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district;

(2) increments may be used only to:

(i) acquire parcels on which the improvements described in item (ii) will occur;

(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the
additional cost of installing public improvements directly caused by the deficiencies; and

(iii) pay for the administrative expenses of the authority allocable to the district; and

(3) any parcel acquired with increments from the district must be sold at no less
than their fair market value.

(g) Increments spent for any infrastructure costs, whether inside a district or outside
a district but within the project area, are deemed to satisfy the requirements of Minnesota
Statutes, section 469.176, subdivision 4j.

(h) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires June 30, 2020.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing
body of the city of Maple Grove and compliance with the requirements of Minnesota
Statutes, section 645.021.
new text end

Sec. 3. new text begin CITY OF ANOKA; TIF DISTRICT.
new text end

new text begin For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c),
the city of Anoka's Greens of Anoka redevelopment tax increment financing district is
deemed to be certified on June 29, 2012, rather than its actual certification date of July 2,
2012, and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4,
apply as if the district were certified on that date.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon approval by the governing body
of the city of Anoka and upon compliance by the city with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 4. new text begin CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
new text end

new text begin Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision
3, the chief clerical officer of the city of Edina may file the city's certificate of its approval
of Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate
is so filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3,
are otherwise complied with, the special law is deemed approved, and all actions taken
by the city prior to the effective date of this section in reliance on Laws 2014, chapter
308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article
6, section 8, and this act.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
without local approval as an amendment to the provisions of Laws 2014, chapter 308,
article 6, section 8.
new text end

Sec. 5. new text begin CITY OF NORTHFIELD; TAX INCREMENT FINANCING.
new text end

new text begin The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
activities must be undertaken within a five-year period from the date of certification of a
tax increment financing district, are considered to be met for the Riverfront Tax Increment
Financing District in the city of Northfield, if the activities are undertaken prior to July
12, 2017.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
the city of Northfield and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

ARTICLE 5

IRON RANGE RESOURCES AND REHABILITATION BOARD

Section 1.

Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read:

Subd. 7.

Iron Range resources and rehabilitation deleted text begin Board deleted text end .

new text begin After seeking
a recommendation from the Iron Range Resources and Rehabilitation Board, new text end the
new text begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end may purchase insurance deleted text begin it
considers deleted text end new text begin the commissioner deems new text end necessary and appropriate to insure facilities operated
by the board.

Sec. 2.

Minnesota Statutes 2014, section 116J.424, is amended to read:

116J.424 IRON RANGE RESOURCES AND REHABILITATION deleted text begin BOARD deleted text end
CONTRIBUTION.

The commissioner of deleted text begin the deleted text end Iron Range resources and rehabilitation deleted text begin Board with
approval by the board, deleted text end shall provide an equal match for any loan or equity investment
made for a facility located in the tax relief area defined in section 273.134, paragraph (b),
by the Minnesota minerals 21st century fund created by section 116J.423. The match may
be in the form of a loan or equity investment, notwithstanding whether the fund makes
a loan or equity investment. The state shall not acquire an equity interest because of an
equity investment or loan deleted text begin by the board deleted text end new text begin under this section new text end and the deleted text begin board at its sole discretion deleted text end new text begin
commissioner, after consultation with the Iron Range Resources and Rehabilitation Board, new text end
shall new text begin have the sole discretion to new text end decide what interest deleted text begin it deleted text end new text begin the board new text end acquires in a project. The
commissioner of employment and economic development may require a commitment
from the deleted text begin board deleted text end new text begin commissioner new text end to make the match prior to disbursing money from the fund.

Sec. 3.

Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms
have the meanings given them in this subdivision.

(b) "Area development rate" means a rate schedule established by a utility that
provides customers within an area development zone service under a base utility rate
schedule, except that charges may be reduced from the base rate as agreed upon by the
utility and the customer consistent with this section.

(c) "Area development zone" means a contiguous or noncontiguous area designated
by an authority or municipality for development or redevelopment and within which one
of the following conditions exists:

(1) obsolete buildings not suitable for improvement or conversion or other identified
hazards to the health, safety, and general well-being of the community;

(2) buildings in need of substantial rehabilitation or in substandard condition; or

(3) low values and damaged investments.

(d) "Authority" means a rural development financing authority established under
sections 469.142 to 469.151; a housing and redevelopment authority established under
sections 469.001 to 469.047; a port authority established under sections 469.048 to
469.068; an economic development authority established under sections 469.090
to 469.108; a redevelopment agency as defined in sections 469.152 to 469.165; the
new text begin commissioner of new text end Iron Range resources and rehabilitation new text begin , acting after consultation
with the new text end board established under section 298.22; a municipality that is administering a
development district created under sections 469.124 to 469.133 or any special law; a
municipality that undertakes a project under sections 469.152 to 469.165, except a town
located outside the metropolitan area as defined in section 473.121, subdivision 2, or with
a population of 5,000 persons or less; or a municipality that exercises the powers of a port
authority under any general or special law.

(e) "Municipality" means a city, however organized, and, with respect to a project
undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in
sections 469.152 to 469.165, and, with respect to a project undertaken under sections
469.142 to 469.151 or a county or multicounty project undertaken under sections 469.004
to 469.008, also includes any county.

Sec. 4.

Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read:

Subd. 8.

Municipality.

"Municipality" means a city, town, or township located
in whole or part within the area. If a municipality is located partly within and partly
without the area, the references in sections 276A.01 to 276A.09 to property or any portion
thereof subject to taxation or taxing jurisdiction within the municipality are to the property
or portion thereof that is located in that portion of the municipality within the area,
except that the fiscal capacity of the municipality must be computed upon the basis of the
valuation and population of the entire municipality. A municipality shall be excluded from
the area if its municipal comprehensive zoning and planning policies conscientiously
exclude most commercial-industrial development, for reasons other than preserving an
agricultural use. The new text begin commissioner of new text end Iron Range resources and rehabilitation deleted text begin Board deleted text end and
the commissioner of revenue shall jointly make this determination annually and shall
notify those municipalities that are ineligible to participate in the tax base sharing program
provided in this chapter for the following year. new text begin Before making the joint determination, the
commissioner of Iron Range resources and rehabilitation shall seek a recommendation
from the Iron Range Resources and Rehabilitation Board.
new text end

Sec. 5.

Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read:

Subd. 17.

School fund allocation.

(a) "School fund allocation" means an amount up
to 25 percent of the areawide levy certified by the new text begin commissioner of Iron Range resources
and rehabilitation, after seeking a recommendation from the new text end Iron Range Resources and
Rehabilitation Board new text begin , new text end to be used for the purposes of the Iron Range school consolidation
and cooperatively operated school account under section 298.28, subdivision 7a.

(b) The allocation under paragraph (a) shall only be made after the new text begin commissioner of
Iron Range resources and rehabilitation, after seeking a recommendation from the new text end Iron
Range Resources and Rehabilitation Board new text begin , new text end has certified by June 30 that the Iron Range
school consolidation and cooperatively operated account has insufficient funds to make
payments as authorized under section 298.28, subdivision 7a.

Sec. 6.

Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read:

Subdivision 1.

Development.

In any county where the county board by proper
resolution sets aside funds for forest development pursuant to section 282.08, clause (5),
item (i), or section 459.06, subdivision 2, the commissioner of Iron Range resources
and rehabilitation deleted text begin with the approval of the deleted text end new text begin , after seeking a recommendation from the
Iron Range Resources and Rehabilitation new text end Board new text begin , new text end may upon request of the county board
assist said county in carrying out any project for the long range development of its forest
resources through matching of funds or otherwise.

Sec. 7.

Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read:

Subd. 8.

Commissioner.

"Commissioner" means the commissioner of revenue
of the state of Minnesota new text begin , except that when used in sections 298.22 to 298.227, and
298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources
and rehabilitation new text end .

Sec. 8.

Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read:

Subd. 1a.

Iron Range Resources and Rehabilitation Board.

The Iron Range
Resources and Rehabilitation Board consists of the state senators and representatives
elected from state senatorial or legislative districts in which one-third or more of the
residents reside in a taconite assistance area as defined in section 273.1341. One additional
state senator shall also be appointed by the senate Subcommittee on Committees of the
Committee on Rules and Administration. All expenditures and projects made by the
commissioner shall first be submitted to the board deleted text begin for approval deleted text end . new text begin The board shall recommend
approval or disapproval or modification of the expenditures and projects. new text end The expenses
of the board shall be paid by the state from the funds raised pursuant to this section.
Members of the board may be reimbursed for expenses in the manner provided in sections
3.099, subdivision 1, and 3.101, and may receive per diem payments during the interims
between legislative sessions in the manner provided in section 3.099, subdivision 1.

The members shall be appointed in January of every odd-numbered year, and shall
serve until January of the next odd-numbered year. Vacancies on the board shall be filled
in the same manner as original members were chosen.

Sec. 9.

Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read:

Subd. 5a.

Forest trust.

The commissioner, deleted text begin upon approval by deleted text end new text begin after requesting a
recommendation from new text end the board, may purchase forest lands in the taconite assistance area
defined in under section 273.1341 with funds specifically authorized for the purchase. The
acquired forest lands must be held in trust for the benefit of the citizens of the taconite
assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall
be managed and developed for recreation and economic development purposes. The
commissioner, deleted text begin upon approval by deleted text end new text begin after requesting a recommendation from new text end the board,
may sell forest lands purchased under this subdivision if the deleted text begin board finds deleted text end new text begin commissioner
determines new text end that the sale advances the purposes of the trust. Proceeds derived from the
management or sale of the lands and from the sale of timber or removal of gravel or
other minerals from these forest lands shall be deposited into an Iron Range Miners'
Memorial Forest account that is established within the state financial accounts. Funds may
be expended from the account deleted text begin upon approval by deleted text end new text begin after the commissioner has sought a
recommendation from new text end the board, to purchase, manage, administer, convey interests in,
and improve the forest lands. deleted text begin With approval by deleted text end new text begin After the commissioner has sought a
recommendation from new text end the board, money in the Iron Range Miners' Memorial Forest
account may be transferred into the corpus of the Douglas J. Johnson economic protection
trust fund established under sections 298.291 to 298.294. The property acquired under
the authority granted by this subdivision and income derived from the property or the
operation or management of the property are exempt from taxation by the state or its
political subdivisions while held by the forest trust.

Sec. 10.

Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read:

Subd. 6.

Private entity participation.

new text begin After seeking a recommendation from new text end the
board new text begin , the commissioner new text end may acquire an equity interest in any project for which deleted text begin it deleted text end new text begin the
commissioner new text end provides funding. The commissioner may establish, participate in the
management of, and dispose of the assets of charitable foundations, nonprofit limited
liability companies, and nonprofit corporations associated with any project for which it
provides funding, including specifically, but without limitation, a corporation within the
meaning of section 317A.011, subdivision 6.

Sec. 11.

Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read:

Subd. 8.

Spending priority.

In making or deleted text begin approving deleted text end new text begin recommending new text end any
expenditures on programs or projects, the commissioner and the board shall give the
highest priority to programs and projects that target relief to those areas of the taconite
assistance area as defined in section 273.1341, that have the largest percentages of job
losses and population losses directly attributable to the economic downturn in the taconite
industry since the 1980s. The commissioner and the board shall compare the 1980
population and employment figures with the 2000 population and employment figures,
and shall specifically consider the job losses in 2000 and 2001 resulting from the closure
of LTV Steel Mining Company, in making or deleted text begin approving deleted text end new text begin recommending new text end expenditures
consistent with this subdivision, as well as the areas of residence of persons who suffered
job loss for which relief is to be targeted under this subdivision. The commissioner
may lease, for a term not exceeding 50 years and upon the terms determined by the
commissioner deleted text begin and approved deleted text end new text begin after seeking review new text end by the board, surface and mineral
interests owned or acquired by the state of Minnesota acting by and through the office of
the commissioner of Iron Range resources and rehabilitation within those portions of the
taconite assistance area affected by the closure of the LTV Steel Mining Company facility
near Hoyt Lakes. The payments and royalties from these leases must be deposited into the
fund established in section 298.292. This subdivision supersedes any other conflicting
provisions of law and does not preclude the commissioner deleted text begin and the board deleted text end from making
expenditures for programs and projects in other areas new text begin after seeking review by the board new text end .

Sec. 12.

Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read:

Subd. 10.

Sale or privatization of functions.

The commissioner of Iron
Range resources and rehabilitation may not sell or privatize the Ironworld Discovery
Center or Giants Ridge Golf and Ski Resort without deleted text begin prior approval by deleted text end new text begin first seeking a
recommendation from new text end the board.

Sec. 13.

Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read:

Subd. 11.

Budgeting.

The commissioner of Iron Range resources and rehabilitation
shall annually prepare a budget for operational expenditures, programs, and projects, and
submit it to the Iron Range Resources and Rehabilitation Board new text begin for a recommendation new text end .
After the budget is approved by deleted text begin the board and deleted text end the governor, the commissioner may spend
money in accordance with the approved budget.

Sec. 14.

Minnesota Statutes 2014, section 298.221, is amended to read:

298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.

(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
pursuant to the terms of any contract entered into by the state under authority of section
298.22 and any fees which may, in the discretion of the commissioner of Iron Range
resources and rehabilitation, be charged in connection with any project pursuant to that
section as amended, shall be deposited in the state treasury to the credit of the Iron Range
Resources and Rehabilitation Board account in the special revenue fund and are hereby
appropriated for the purposes of section 298.22.

(b) Notwithstanding section 16A.013, merchandise may be accepted by the
commissioner of the Iron Range Resources and Rehabilitation Board for payment of
advertising contracts if the commissioner determines that the merchandise can be used
for special event prizes or mementos at facilities operated by the board. Nothing in this
paragraph authorizes the commissioner or a member of the board to receive merchandise
for personal use.

(c) All fees charged by the commissioner in connection with public use of the
state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
revenues derived by the commissioner from the operation or lease of those facilities
and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
Recreation Area must be deposited into an Iron Range Resources and Rehabilitation
Board account that is created within the state enterprise fund. All funds deposited in the
enterprise fund account are appropriated to the commissioner to be expended, deleted text begin subject to
approval by deleted text end new text begin after seeking a recommendation from new text end the board, as follows:

(1) to pay costs associated with the construction, equipping, operation, repair, or
improvement of the Giants Ridge Recreation Area facilities or lands;

(2) to pay principal, interest and associated bond issuance, reserve, and servicing
costs associated with the financing of the facilities; and

(3) to pay the costs of any other project authorized under section 298.22.

Sec. 15.

Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:

Subd. 3.

Project approval.

All projects authorized by this section shall be submitted
by the commissioner to the Iron Range Resources and Rehabilitation Board for deleted text begin approval
by deleted text end new text begin a recommendation from new text end the board. Prior to the commencement of a project involving
the exercise by the commissioner of any authority of sections 469.174 to 469.179, the
governing body of each municipality in which any part of the project is located and the
county board of any county containing portions of the project not located in an incorporated
area shall by majority vote approve or disapprove the project. Any project approved by
the deleted text begin board deleted text end new text begin commissioner new text end and the applicable governing bodies, if any, together with detailed
information concerning the project, its costs, the sources of its funding, and the amount of
any bonded indebtedness to be incurred in connection with the project, shall be transmitted
to the governor, who shall approve, disapprove, or return the proposal for additional
consideration within 30 days of receipt. No project authorized under this section shall be
undertaken, and no obligations shall be issued and no tax increments shall be expended for
a project authorized under this section until the project has been approved by the governor.

Sec. 16.

Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read:

Subd. 4.

Project approval.

new text begin After seeking a recommendation from new text end the board deleted text begin and deleted text end new text begin ,
the new text end commissioner shall by August 1 each year prepare a list of projects to be funded from
the money appropriated in this section with necessary supporting information including
descriptions of the projects, plans, and cost estimates. A project must not be approved by
the deleted text begin board deleted text end new text begin commissioner new text end unless deleted text begin it deleted text end new text begin the commissioner new text end finds that:

(1) the project will materially assist, directly or indirectly, the creation of additional
long-term employment opportunities;

(2) the prospective benefits of the expenditure exceed the anticipated costs; and

(3) in the case of assistance to private enterprise, the project will serve a sound
business purpose.

Each project must be approved by the deleted text begin board and the deleted text end commissioner of Iron Range
resources and rehabilitation. The list of projects must be submitted to the governor,
who shall, by November 15 of each year, approve, disapprove, or return for further
consideration, each project. The money for a project may be spent only upon approval of
the project by the governor. The deleted text begin board deleted text end new text begin commissioner new text end may submit supplemental projects
for approval at any time new text begin , after seeking a recommendation from the board new text end .

Sec. 17.

Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read:

Subd. 5.

Advisory committees.

deleted text begin Before submission to the board of a proposal for
a project for expenditure of money appropriated under this section, deleted text end The commissioner
of Iron Range resources and rehabilitation shall appoint a technical advisory committee
consisting of at least seven persons who are knowledgeable in areas related to the
objectives of the proposal. If the project involves investment in a scientific research
proposal, at least four of the committee members must be knowledgeable in the specific
scientific research area relating to the project. Members of the committees must be
compensated as provided in section 15.059, subdivision 3. The deleted text begin board deleted text end new text begin commissioner new text end shall
not act on a proposal new text begin for a request for expenditure of money appropriated under this
section new text end until deleted text begin it has received deleted text end new text begin the commissioner has sought review from the board of new text end the
evaluation and recommendations of the technical advisory committee.

Sec. 18.

Minnesota Statutes 2014, section 298.2213, subdivision 6, is amended to read:

Subd. 6.

Use of repayments and earnings.

Principal and interest received in
repayment of loans made under this section must be deposited in the deleted text begin state treasury
and are appropriated to the board for the purposes of this section deleted text end new text begin northeast Minnesota
economic development fund account in the special revenue fund in the state treasury. The
commissioner of Iron Range resources and rehabilitation must seek a recommendation
from the Iron Range Resources and Rehabilitation Board for any use of funds appropriated
under this section new text end .

Sec. 19.

Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read:

Subdivision 1.

Creation; purposes.

A fund called the taconite environmental
protection fund is created for the purpose of reclaiming, restoring and enhancing those
areas of northeast Minnesota located within the taconite assistance area defined in section
273.1341, that are adversely affected by the environmentally damaging operations
involved in mining taconite and iron ore and producing iron ore concentrate and for the
purpose of promoting the economic development of northeast Minnesota. The taconite
environmental protection fund shall be used for the following purposes:

(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation
Board determines are in need of study and which will determine the environmental
problems requiring remedial action;

(2) reclamation, restoration, or reforestation of mine lands not otherwise provided
for by state law;

(3) local economic development projects but only if those projects are approved by
the deleted text begin board deleted text end new text begin commissioner after seeking a recommendation of the projects from the board new text end ,
and public works, including construction of sewer and water systems located within the
taconite assistance area defined in section 273.1341;

(4) monitoring of mineral industry related health problems among mining employees;

(5) local public works projects under section 298.227, paragraph (c); and

(6) local public works projects as provided under this clause. The following amounts
shall be distributed in 2009 based upon the taxable tonnage of production in 2008:

(i) .4651 cent per ton to the city of Aurora for street repair and renovation;

(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
improvements to the south side industrial site;

(iii) .6460 cent per ton to the city of Buhl for street repair;

(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;

(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
upgrades;

(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
upgrades;

(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;

(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
modifications for the miners' memorial;

(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;

(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;

(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;

(xii) .6460 cent per ton to the town of Balkan for community center repairs;

(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;

(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;

(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;

(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;

(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;

(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;

(xix) .3230 cent per ton to Lake County for trail construction;

(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand
Marais;

(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure
improvements;

(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;

(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer
improvements along Gayley Avenue;

(xxiv) .3876 cent per ton to the city of Marble for construction of a city
administration facility;

(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the
community center;

(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure
upgrades;

(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades
along Depot Street;

(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
improvements;

(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
infrastructure upgrades at Pokegema Golf Course and Park Place;

(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades
for 1st Avenue from River Road to 3rd Street SE; and

(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing
at Highway 2 and County Road 62.

Sec. 20.

Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read:

Subd. 2.

Administration.

(a) The taconite area environmental protection fund shall
be administered by the commissioner of the Iron Range Resources and Rehabilitation
Board. The commissioner shall by September 1 of each year submit to the board a list
of projects to be funded from the taconite area environmental protection fund, with such
supporting information including description of the projects, plans, and cost estimates as
may be necessary.

(b) Each year no less than one-half of the amounts deposited into the taconite
environmental protection fund must be used for public works projects, including
construction of sewer and water systems, as specified under subdivision 1, clause (3).
new text begin After seeking a recommendation from new text end the Iron Range Resources and Rehabilitation Board new text begin ,
the commissioner new text end may waive the requirements of this paragraph.

(c) deleted text begin Upon approval by the board, deleted text end The list of projects approved new text begin by the commissioner new text end
under this subdivision new text begin , after the commissioner has sought review of the projects by the
board, new text end shall be submitted to the governor by November 1 of each year. By December 1 of
each year, the governor shall approve or disapprove, or return for further consideration,
each project. Funds for a project may be expended only upon approval of the project by
the deleted text begin board deleted text end new text begin commissioner new text end and the governor. The commissioner may submit supplemental
projects deleted text begin to the board and deleted text end new text begin for approval from the new text end governor deleted text begin for approval deleted text end new text begin after seeking review
of the supplemental projects from the board new text end at any time.

Sec. 21.

Minnesota Statutes 2014, section 298.227, is amended to read:

298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

(a) An amount equal to that distributed pursuant to each taconite producer's taxable
production and qualifying sales under section 298.28, subdivision 9a, shall be held by
the Iron Range Resources and Rehabilitation Board in a separate taconite economic
development fund for each taconite and direct reduced ore producer. Money from the
fund for each producer shall be released by the commissioner after review by a joint
committee consisting of an equal number of representatives of the salaried employees and
the nonsalaried production and maintenance employees of that producer. The District 11
director of the United States Steelworkers of America, on advice of each local employee
president, shall select the employee members. In nonorganized operations, the employee
committee shall be elected by the nonsalaried production and maintenance employees. The
review must be completed no later than six months after the producer presents a proposal
for expenditure of the funds to the committee. The funds held pursuant to this section may
be released only for workforce development and associated public facility improvement,
or for acquisition of plant and stationary mining equipment and facilities for the producer
or for research and development in Minnesota on new mining, or taconite, iron, or steel
production technology, but only if the producer provides a matching expenditure equal to
the amount of the distribution to be used for the same purpose beginning with distributions
in 2014. Effective for proposals for expenditures of money from the fund beginning May
26, 2007, the commissioner may not release the funds before the next scheduled meeting
of the board. If a proposed expenditure is not approved by the new text begin commissioner, after
seeking a recommendation from the new text end board, the funds must be deposited in the Taconite
Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses
money which has been released from the fund prior to May 26, 2007 to procure haulage
trucks, mobile equipment, or mining shovels, and the producer removes the piece of
equipment from the taconite tax relief area defined in section 273.134 within ten years
from the date of receipt of the money from the fund, a portion of the money granted
from the fund must be repaid to the taconite economic development fund. The portion
of the money to be repaid is 100 percent of the grant if the equipment is removed from
the taconite tax relief area within 12 months after receipt of the money from the fund,
declining by ten percent for each of the subsequent nine years during which the equipment
remains within the taconite tax relief area. If a taconite production facility is sold after
operations at the facility had ceased, any money remaining in the fund for the former
producer may be released to the purchaser of the facility on the terms otherwise applicable
to the former producer under this section. If a producer fails to provide matching funds
for a proposed expenditure within six months after the commissioner approves release
of the funds, the funds are available for release to another producer in proportion to the
distribution provided and under the conditions of this section. Any portion of the fund
which is not released by the commissioner within one year of its deposit in the fund shall
be divided between the taconite environmental protection fund created in section 298.223
and the Douglas J. Johnson economic protection trust fund created in section 298.292 for
placement in their respective special accounts. Two-thirds of the unreleased funds shall be
distributed to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund.

(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of
distributions and the review process, an amount equal to ten cents per taxable ton of
production in 2007, for distribution in 2008 only, that would otherwise be distributed
under paragraph (a), may be used for a loan or grant for the cost of providing for a
value-added wood product facility located in the taconite tax relief area and in a county
that contains a city of the first class. This amount must be deducted from the distribution
under paragraph (a) for which a matching expenditure by the producer is not required. The
granting of the loan or grant is subject to approval by the board. If the money is provided
as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213,
subdivision 3. (ii) Repayments of the loan and interest, if any, must be deposited in the
taconite environment protection fund under sections 298.222 to 298.225. If a loan or
grant is not made under this paragraph by July 1, 2012, the amount that had been made
available for the loan under this paragraph must be transferred to the taconite environment
protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the
fund established under this section that exceeds ten cents per ton is available to qualifying
producers under paragraph (a) on a pro rata basis.

(c) Repayment or transfer of money to the taconite environmental protection fund
under paragraph (b), item (ii), must be allocated by the new text begin commissioner of new text end Iron Range
resources and rehabilitation new text begin , after seeking a recommendation from the Iron Range
Resources and Rehabilitation new text end Board for public works projects in house legislative districts
in the same proportion as taxable tonnage of production in 2007 in each house legislative
district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for
distribution in 2008. Notwithstanding any other law to the contrary, expenditures under
this paragraph do not require approval by the governor. For purposes of this paragraph,
"house legislative districts" means the legislative districts in existence on May 15, 2009.

Sec. 22.

Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:

Subd. 7a.

Iron Range school consolidation and cooperatively operated school
account.

The following amounts must be allocated to the Iron Range Resources and
Rehabilitation Board to be deposited in the Iron Range school consolidation and
cooperatively operated school account that is hereby created:

(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax
imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per
taxable ton of the tax imposed under section 298.24;

(2) the amount as determined under section 298.17, paragraph (b), clause (3);

(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section
298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J.
Johnson economic protection trust fund;

(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the
increased tax proceeds attributable to the increase in the implicit price deflator as provided
in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining
one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and

(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the
increased tax proceeds attributable to the increase in the implicit price deflator as provided
in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the
remaining one-third to be distributed to the Douglas J. Johnson economic protection
trust fund; and

(4) any other amount as provided by law.

Expenditures from this account new text begin may be approved as ongoing annual expenditures and new text end
shall be made only to provide disbursements to assist school districts with the payment of
bonds that were issued for qualified school projects, or for any other school disbursement
as approved by the new text begin commissioner after the commissioner has sought review of the
expenditures by the new text end Iron Range Resources and Rehabilitation Board. For purposes of this
section, "qualified school projects" means school projects within the taconite assistance
area as defined in section 273.1341, that were (1) approved, by referendum, after April 3,
2006; and (2) approved by the commissioner of education pursuant to section 123B.71.

Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to
offset any reduction in debt service equalization aid that the school district qualifies for in
that year, under section 123B.53, subdivision 6, compared with the amount the school
district qualified for in fiscal year 2018.

No expenditure under this section shall be made unless approved by deleted text begin seven members
of deleted text end new text begin the commissioner after seeking review of the expenditure from new text end the Iron Range
Resources and Rehabilitation Board.

Sec. 23.

Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:

Subd. 9d.

Iron Range higher education account.

Five cents per taxable ton must
be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
an Iron Range higher education account that is hereby created, to be used for higher
education programs conducted at educational institutions in the taconite assistance area
defined in section 273.1341. The Iron Range Higher Education committee under section
298.2214, and the deleted text begin Iron Range Resources and Rehabilitation Board deleted text end new text begin commissioner new text end must
approve all expenditures from the account new text begin , after seeking review and recommendation of
the expenditures from the Iron Range Resources and Rehabilitation Board new text end .

Sec. 24.

Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read:

Subd. 2.

Use of money.

Money in the Douglas J. Johnson economic protection trust
fund may be used for the following purposes:

(1) to provide loans, loan guarantees, interest buy-downs and other forms of
participation with private sources of financing, but a loan to a private enterprise shall be
for a principal amount not to exceed one-half of the cost of the project for which financing
is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
lesser of eight percent or an interest rate three percentage points less than a full faith
and credit obligation of the United States government of comparable maturity, at the
time that the loan is approved;

(2) to fund reserve accounts established to secure the payment when due of the
principal of and interest on bonds issued pursuant to section 298.2211;

(3) to pay in periodic payments or in a lump-sum payment any or all of the interest
on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
or retrofitting heating facilities in connection with district heating systems or systems
utilizing alternative energy sources;

(4) to invest in a venture capital fund or enterprise that will provide capital to other
entities that are engaging in, or that will engage in, projects or programs that have the
purposes set forth in subdivision 1. No investments may be made in a venture capital fund
or enterprise unless at least two other unrelated investors make investments of at least
$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
J. Johnson economic protection trust fund may not exceed the amount of the largest
investment by an unrelated investor in the venture capital fund or enterprise. For purposes
of this subdivision, an "unrelated investor" is a person or entity that is not related to
the entity in which the investment is made or to any individual who owns more than 40
percent of the value of the entity, in any of the following relationships: spouse, parent,
child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
the value of all interests in it. For purposes of determining the limitations under this
clause, the amount of investments made by an investor other than the Douglas J. Johnson
economic protection trust fund is the sum of all investments made in the venture capital
fund or enterprise during the period beginning one year before the date of the investment
by the Douglas J. Johnson economic protection trust fund; and

(5) to purchase forest land in the taconite assistance area defined in section 273.1341
to be held and managed as a public trust for the benefit of the area for the purposes
authorized in section 298.22, subdivision 5a. Property purchased under this section may
be sold by the commissioner deleted text begin upon approval by deleted text end new text begin after seeking a recommendation from new text end
the board. The net proceeds must be deposited in the trust fund for the purposes and
uses of this section.

Money from the trust fund shall be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341.

Sec. 25.

Minnesota Statutes 2014, section 298.294, is amended to read:

298.294 INVESTMENT OF FUND.

(a) The trust fund established by section 298.292 shall be invested pursuant to law
by the State Board of Investment and the net interest, dividends, and other earnings arising
from the investments shall be transferred, except as provided in paragraph (b), on the first
day of each month to the trust and shall be included and become part of the trust fund.
The amounts transferred, including the interest, dividends, and other earnings earned
prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
commissioner of Iron Range resources and rehabilitation for deposit in a separate account
for expenditure for the purposes set forth in section 298.292. Amounts appropriated
pursuant to this section shall not cancel but shall remain available unless expended.

(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends,
and other earnings under paragraph (a) shall be transferred to a special account. Funds
in the special account are available for loans or grants to businesses, with priority given
to businesses with 25 or fewer employees. Funds may be used for wage subsidies for
up to 52 weeks of up to $5 per hour or other activities, including, but not limited to,
short-term operating expenses and purchase of equipment and materials by businesses
under financial duress, that will create additional jobs in the taconite assistance area
under section 273.1341. Expenditures from the special account must be approved by the
new text begin commissioner after seeking a recommendation from the new text end board.

(c) To qualify for a grant or loan, a business must be currently operating and have
been operating for one year immediately prior to its application for a loan or grant, and its
corporate headquarters must be located in the taconite assistance area.

Sec. 26.

Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read:

Subdivision 1.

Project approval.

new text begin (a) new text end The new text begin commissioner of Iron Range resources and
rehabilitation, after seeking a recommendation from the new text end board deleted text begin and commissioner deleted text end new text begin , new text end shall by
August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson
economic protection trust with necessary supporting information including description of
the projects, plans, and cost estimates. These projects shall be consistent with the priorities
established in section 298.292 and shall not be approved by the deleted text begin board deleted text end new text begin commissioner new text end
unless deleted text begin it deleted text end new text begin the commissioner, after seeking a recommendation from the board, new text end finds that:

deleted text begin (a) deleted text end new text begin (1) new text end the project will materially assist, directly or indirectly, the creation of
additional long-term employment opportunities;

deleted text begin (b) deleted text end new text begin (2) new text end the prospective benefits of the expenditure exceed the anticipated costs; and

deleted text begin (c) deleted text end new text begin (3) new text end in the case of assistance to private enterprise, the project will serve a sound
business purpose.

new text begin (b) new text end Each project must be approved by deleted text begin over one-half of all of the members of the
board and deleted text end the commissioner of Iron Range resources and rehabilitation new text begin after seeking a
recommendation from the board for the project new text end . The list of projects shall be submitted to
the governor, who shall, by November 15 of each year, approve or disapprove, or return
for further consideration, each project. The money for a project may be expended only
upon approval of the project by the governor. The deleted text begin board deleted text end new text begin commissioner new text end may submit new text begin a
new text end supplemental deleted text begin projects deleted text end new text begin project new text end for approval at any time new text begin after seeking a recommendation for
the project from the board new text end .

Sec. 27.

Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read:

Subd. 2.

Expenditure of funds.

(a) Before January 1, 2028, funds may be expended
on projects and for administration of the trust fund only from the net interest, earnings,
and dividends arising from the investment of the trust at any time, including net interest,
earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
available for use in fiscal year 1983, except that any amount required to be paid out of the
trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
X, section 4, and to make school bond payments and payments to recipients of taconite
production tax proceeds pursuant to section 298.225, may be taken from the corpus of
the trust.

(b) Additionally, upon recommendation by the new text begin commissioner after seeking a
recommendation from the new text end board, up to $13,000,000 from the corpus of the trust may be
made available for use as provided in subdivision 4, and up to $10,000,000 from the
corpus of the trust may be made available for use as provided in section 298.2961.

(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article
8, section 17, may be expended on projects. Funds may be expended for projects under
this paragraph only if the project:

(1) is for the purposes established under section 298.292, subdivision 1, clause
(1) or (2); and

(2) is approved by deleted text begin two-thirds of all of the members of deleted text end new text begin the commissioner after
seeking a recommendation from new text end the board.

No money made available under this paragraph or paragraph (d) can be used for
administrative or operating expenses of the Iron Range Resources and Rehabilitation Board
or expenses relating to any facilities owned or operated by the board on May 18, 2002.

(d) Upon recommendation by deleted text begin a unanimous vote of all members deleted text end new text begin the commissioner
after seeking a unanimous recommendation new text end of the board, amounts in addition to those
authorized under paragraphs (a), (b), and (c) may be expended on projects described in
section 298.292, subdivision 1.

(e) Annual administrative costs, not including detailed engineering expenses for the
projects, shall not exceed five percent of the net interest, dividends, and earnings arising
from the trust in the preceding fiscal year.

(f) Principal and interest received in repayment of loans made pursuant to this
section, and earnings on other investments made under section 298.292, subdivision 2,
clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
are appropriated to the board for the purposes of sections 298.291 to 298.298.

(g) Additionally, notwithstanding section 298.293, upon the approval of new text begin the
commissioner of Iron Range resources and rehabilitation, after seeking a recommendation
from new text end the board, money from the corpus of the trust may be expanded to purchase forest
lands within the taconite assistance area as provided in sections 298.22, subdivision 5a,
and 298.292, subdivision 2, clause (5).

Sec. 28.

Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read:

Subd. 4.

Temporary loan authority.

(a) new text begin After seeking a recommendation from new text end the
board new text begin , the commissioner of Iron Range resources and rehabilitation new text end may deleted text begin recommend that deleted text end new text begin
use new text end up to $7,500,000 from the corpus of the trust may be deleted text begin used deleted text end for loans, loan guarantees,
grants, or equity investments as provided in this subdivision. The money would be
available for loans for construction and equipping of facilities constituting (1) a value
added iron products plant, which may be either a new plant or a facility incorporated into
an existing plant that produces iron upgraded to a minimum of 75 percent iron content or
any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine
or minerals processing plant for any mineral subject to the net proceeds tax imposed
under section 298.015. A loan or loan guarantee under this paragraph may not exceed
$5,000,000 for any facility.

(b) Additionally, the deleted text begin board deleted text end new text begin commissioner of Iron Range resources and rehabilitation new text end
must reserve the first $2,000,000 of the net interest, dividends, and earnings arising
from the investment of the trust after June 30, 1996, to be used for grants, loans, loan
guarantees, or equity investments for the purposes set forth in paragraph (a). This amount
must be reserved until it is used as described in this subdivision.

(c) Additionally, the deleted text begin board deleted text end new text begin commissioner new text end may recommend that up to $5,500,000
from the corpus of the trust may be used for additional grants, loans, loan guarantees, or
equity investments for the purposes set forth in paragraph (a).

(d) The new text begin commissioner of Iron Range resources and rehabilitation, after seeking a
recommendation from the new text end board new text begin , new text end may require that deleted text begin it deleted text end new text begin the board new text end receive an equity percentage
in any project to which it contributes under this section.

Sec. 29.

Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read:

Subd. 2.

Projects; approval.

(a) Projects funded must be for:

(1) environmentally unique reclamation projects; or

(2) pit or plant repairs, expansions, or modernizations other than for a value added
iron products plant.

(b) deleted text begin To be proposed by the board, a project must be approved by deleted text end new text begin Before the
commissioner may propose a project, the commissioner must seek a recommendation
from new text end the board. The money for a project may be spent only upon approval of the project
by the governor. The deleted text begin board deleted text end new text begin commissioner new text end may submit new text begin a new text end supplemental deleted text begin projects deleted text end new text begin project new text end for
approval at any time new text begin after seeking a recommendation for the project from the board new text end .

(c) The deleted text begin board deleted text end new text begin commissioner new text end may require that deleted text begin it deleted text end new text begin the board new text end receive an equity
percentage in any project to which it contributes under this section.

Sec. 30.

Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read:

Subd. 4.

Grant and loan fund.

(a) A fund is established to receive distributions
under section 298.28, subdivision 9b, and to make grants or loans as provided in this
subdivision. Any grant or loan made under this subdivision must new text begin first new text end be approved by
the new text begin commissioner after seeking a recommendation from the new text end board, established under
section 298.22.

(b) Distributions received in calendar year 2005 are allocated to the city of Virginia
for improvements and repairs to the city's steam heating system.

(c) Distributions received in calendar year 2006 are allocated to a project of the
public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
generating plants to the use of biomass products, such as wood.

(d) Distributions received in calendar year 2007 must be paid to the city of Tower to
be used for the East Two Rivers project in or near the city of Tower.

(e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
must be paid to St. Louis County for deposit in its county road and bridge fund to be
used for relocation of St. Louis County Road 715, commonly referred to as Pike River
Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
maintenance garage on Highway 135, further extending the lines to interconnect with the
city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
years are allocated for projects under section 298.223, subdivision 1.

Sec. 31.

Minnesota Statutes 2014, section 298.298, is amended to read:

298.298 LONG-RANGE PLAN.

Consistent with the policy established in sections 298.291 to 298.298, the Iron
Range Resources and Rehabilitation Board shall prepare and present to the governor and
the legislature by December 31, 2006, a long-range plan for the use of the Douglas J.
Johnson economic protection trust fund for the economic development and diversification
of the taconite assistance area defined in section 273.1341. No project shall be deleted text begin approved deleted text end new text begin
recommended new text end by the Iron Range Resources and Rehabilitation Board deleted text begin which deleted text end new text begin if the board
finds that the project new text end is not consistent with the goals and objectives established in the
long-range plan.

Sec. 32.

Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read:

Subd. 2.

Unmined iron ore; valuation petition.

When in the opinion of the duly
constituted authorities of a taxing district there are in existence reserves of unmined iron
ore located in such district, these authorities may petition the new text begin commissioner of new text end Iron Range
resources and rehabilitation deleted text begin Board deleted text end for authority to petition the county assessor to verify
the existence of such reserves and to ascertain the value thereof by drilling in a manner
consistent with established engineering and geological exploration methods, in order that
such taxing district may be able to forecast in a proper manner its future economic and
fiscal potentials. new text begin The commissioner may grant the authority to petition after seeking a
recommendation from the Iron Range Resources and Rehabilitation Board.
new text end

Sec. 33. new text begin IRON RANGE RESOURCES AND REHABILITATION BOARD;
EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
new text end

new text begin (a) "Commissioner" as used in this section means the commissioner of the Iron
Range Resources and Rehabilitation Board unless otherwise specified.
new text end

new text begin (b) Notwithstanding any law to the contrary, the commissioner, in consultation
with the commissioner of management and budget, shall offer a targeted early separation
incentive program for employees of the commissioner who have attained the age of 60
years or who have received credit for at least 30 years of allowable service under the
provisions of Minnesota Statutes, chapter 352. The commissioner shall also offer a
targeted separation incentive program for employees of the commissioner whose positions
are in support of operations at Giants Ridge and will be eliminated if the agency no longer
directly manages Giants Ridge operations.
new text end

new text begin (c) The early separation incentive program may include one or more of the following:
new text end

new text begin (1) employer-paid postseparation health, medical, and dental insurance until age
65; and
new text end

new text begin (2) cash incentives that may, but are not required to be, used to purchase additional
years of service credit through the Minnesota State Retirement System, to the extent that
the purchases are otherwise authorized by law.
new text end

new text begin (d) The commissioner shall establish eligibility requirements for employees to
receive an incentive.
new text end

new text begin (e) The commissioner, consistent with the established program provisions under
paragraph (b), and with the eligibility requirements under paragraph (f), may designate
specific programs or employees as eligible to be offered the incentive program.
new text end

new text begin (f) Acceptance of the offered incentive must be voluntary on the part of the
employee and must be in writing. The incentive may only be offered at the sole discretion
of the commissioner.
new text end

new text begin (g) The cost of the incentive is payable solely by funds made available to the
commissioner by law, but only on prior approval of the expenditures by the commissioner,
after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.
new text end

new text begin (h) Unilateral implementation of this section by the commissioner is not an unfair
labor practice under Minnesota Statutes, chapter 179A.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
This section is repealed June 30, 2017.
new text end

Sec. 34. new text begin REVISOR'S INSTRUCTION.
new text end

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

ARTICLE 6

FAMILY AND MEDICAL BENEFITS

Section 1.

Minnesota Statutes 2014, section 13.719, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin Family and medical insurance data. new text end

new text begin (a) For the purposes of this
subdivision, the terms used have the meanings given them in section 268B.01.
new text end

new text begin (b) Data on applicants, family members, or employers under chapter 268B are
private or nonpublic data, provided that the department may share data collected from
applicants with employers or health care providers to the extent necessary to meet the
requirements of chapter 268B or other applicable law.
new text end

Sec. 2.

Minnesota Statutes 2014, section 181.940, subdivision 2, is amended to read:

Subd. 2.

Employee.

"Employee" means a person who performs services for hire for
an employer from whom a leave is requested under sections 181.940 to 181.944 for:

(1) at least deleted text begin 12 deleted text end new text begin six new text end months preceding the request; and

(2) for an average number of hours per week equal to one-half the full-time
equivalent position in the employee's job classification as defined by the employer's
personnel policies or practices or pursuant to the provisions of a collective bargaining
agreement, during the deleted text begin 12-month deleted text end new text begin six-month new text end period immediately preceding the leave.

new text begin For leaves under sections 181.9412 and 181.9413, the periods of time required by
clauses (1) and (2) are 12 months rather than six months.
new text end

Employee includes all individuals employed at any site owned or operated by the
employer but does not include an independent contractor.

Sec. 3.

Minnesota Statutes 2014, section 181.940, subdivision 4, is amended to read:

Subd. 4.

Child.

"Child" means new text begin , except for the purposes of section 181.9411, new text end an
individual under 18 years of age or an individual under age 20 who is still attending
secondary school.

Sec. 4.

Minnesota Statutes 2014, section 181.941, subdivision 4, is amended to read:

Subd. 4.

Continued insurance.

deleted text begin The employer must continue to make coverage
available to the employee while on leave of absence under any group insurance policy,
group subscriber contract, or health care plan for the employee and any dependents.
Nothing in this section requires the employer to pay the costs of the insurance or health
care while the employee is on leave of absence. deleted text end new text begin During any period that an employee
takes leave under this section, the employer shall maintain coverage under any group
health plan for the duration of such leave at the level and under the conditions coverage
would have been provided if the employee had continued in employment continuously
for the duration of leave.
new text end

Sec. 5.

new text begin [181.9411] FAMILY CARE LEAVE.
new text end

new text begin Subdivision 1. new text end

new text begin Definition; family member. new text end

new text begin For the purpose of this section, "family
member" means an employee's child, adult child, spouse, sibling, parent, foster parent,
mother-in-law, father-in-law, grandchild, grandparent, or stepparent. "Child" means a
child under the age of 18 and includes a biological child, adopted child, or foster child.
new text end

new text begin Subd. 2. new text end

new text begin Definition; health care provider. new text end

new text begin For the purpose of this section, "health
care provider" means an individual who is licensed, certified, or otherwise authorized
under law to practice in the individual's state of practice as a physician, osteopath,
physician assistant, chiropractor, advanced practice registered nurse, optometrist,
licensed psychologist, licensed independent clinical social worker, dentist, or podiatrist.
"Chiropractor" means only a chiropractor who provides manual manipulation of the spine
to correct a subluxation demonstrated to exist by an x-ray.
new text end

new text begin Subd. 3. new text end

new text begin Definition; serious health condition. new text end

new text begin For the purpose of this section,
"serious health condition" means an illness, injury, impairment, or physical or mental
condition that involves:
new text end

new text begin (1) inpatient care in a hospital, hospice, or residential medical care facility; or
new text end

new text begin (2) continuing treatment by a health care provider.
new text end

new text begin Subd. 4. new text end

new text begin Twelve-week leave. new text end

new text begin An employer must grant an unpaid leave of absence
to an employee in order to care for a family member with a serious health condition. The
length of the leave shall be determined by the employee, but must not exceed 12 weeks
during any 12-month period, unless agreed to by the employer. The leave provided under
this section may be reduced by any period of leave taken under section 181.941 for the same
period. Leave under this section may be taken intermittently when medically necessary.
new text end

new text begin Subd. 5. new text end

new text begin Terms of leave. new text end

new text begin The leave shall begin at a time requested by the employee.
The employer may adopt reasonable policies governing the timing of requests for unpaid
leave and may require an employee to provide notice of the need for leave as soon
as practicable. An employer may require that a request for leave be supported by a
certification issued by the health care provider of the family member.
new text end

new text begin Subd. 6. new text end

new text begin No employer retribution. new text end

new text begin An employer shall not retaliate against an
employee for requesting or obtaining a leave of absence under this section.
new text end

new text begin Subd. 7. new text end

new text begin Continued insurance. new text end

new text begin During any period that an employee takes leave
under this section, the employer shall maintain coverage under any group health plan for
the duration of such leave at the level and under the conditions coverage would have been
provided if the employee had continued in employment continuously for the duration
of leave.
new text end

Sec. 6.

Minnesota Statutes 2014, section 181.942, subdivision 1, is amended to read:

Subdivision 1.

Comparable position.

(a) An employee returning from a leave
of absence under section 181.941 new text begin or 181.9411 new text end is entitled to return to employment in
the employee's former position or in a position of comparable duties, number of hours,
and pay. An employee returning from a leave of absence longer than one month must
notify a supervisor at least two weeks prior to return from leave. An employee returning
from a leave under section 181.9412 or 181.9413 is entitled to return to employment in
the employee's former position.

(b) If, during a leave under sections 181.940 to 181.944, the employer experiences
a layoff and the employee would have lost a position had the employee not been on
leave, pursuant to the good faith operation of a bona fide layoff and recall system,
including a system under a collective bargaining agreement, the employee is not entitled to
reinstatement in the former or comparable position. In such circumstances, the employee
retains all rights under the layoff and recall system, including a system under a collective
bargaining agreement, as if the employee had not taken the leave.

Sec. 7.

Minnesota Statutes 2014, section 181.943, is amended to read:

181.943 RELATIONSHIP TO OTHER LEAVE.

(a) The length of leave provided under section 181.941 new text begin or 181.9411 new text end may be reduced
by any period of:

(1) paid parental, disability, personal, medical, or sick leave, or accrued vacation
provided by the employer so that the total leave does not exceed 12 weeks, unless agreed
to by the employer; or

(2) leave taken for the same purpose by the employee under United States Code,
title 29, chapter 28.

(b) Nothing in sections 181.940 to 181.943 prevents any employer from providing
leave benefits in addition to those provided in sections 181.940 to 181.944 or otherwise
affects an employee's rights with respect to any other employment benefit.

new text begin (c) For the purpose of this section, benefits paid under chapter 268B are not provided
by an employer.
new text end

new text begin (d) An employer may not require an employee to take more than two weeks of paid
parental, disability, personal, medical, or sick leave, or accrued vacation provided by an
employer for the purpose of a leave under section 181.941 or 181.9411, unless agreed to
by an employee. This paragraph applies only to an employee who is eligible for benefits
under chapter 268B based on the same event for which leave is provided under section
181.941 or 181.9411.
new text end

Sec. 8.

Minnesota Statutes 2014, section 256J.561, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Parents receiving family and medical leave benefits. new text end

new text begin A parent who
meets the criteria under subdivision 2 and who receives family and medical leave benefits
under chapter 268B is not required to participate in employment services.
new text end

Sec. 9.

Minnesota Statutes 2014, section 256J.95, subdivision 3, is amended to read:

Subd. 3.

Eligibility for diversionary work program.

(a) Except for the categories
of family units listed in clauses (1) to (8), all family units who apply for cash benefits and
who meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and
must participate in the diversionary work program. Family units or individuals that are
not eligible for the diversionary work program include:

(1) child only cases;

(2) single-parent family units that include a child under 12 months of age. A parent
is eligible for this exception once in a parent's lifetime;

(3) family units with a minor parent without a high school diploma or its equivalent;

(4) family units with an 18- or 19-year-old caregiver without a high school diploma
or its equivalent who chooses to have an employment plan with an education option;

(5) family units with a caregiver who received DWP benefits within the 12 months
prior to the month the family applied for DWP, except as provided in paragraph (c);

(6) family units with a caregiver who received MFIP within the 12 months prior to
the month the family applied for DWP;

(7) family units with a caregiver who received 60 or more months of TANF
assistance; deleted text begin and
deleted text end

(8) family units with a caregiver who is disqualified from the work participation
cash benefit program, DWP, or MFIP due to fraud new text begin ; and
new text end

new text begin (9) single-parent family units where a parent is receiving family and medical leave
benefits under chapter 268B new text end .

(b) A two-parent family must participate in DWP unless both caregivers meet the
criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit
includes a parent who meets the criteria in paragraph (a), clause (6), (7), or (8).

(c) Once DWP eligibility is determined, the four months run consecutively. If a
participant leaves the program for any reason and reapplies during the four-month period,
the county must redetermine eligibility for DWP.

Sec. 10.

Minnesota Statutes 2014, section 256J.95, subdivision 11, is amended to read:

Subd. 11.

Universal participation required.

(a) All DWP caregivers, except
caregivers who meet the criteria in paragraph (d), are required to participate in DWP
employment services. Except as specified in paragraphs (b) and (c), employment plans
under DWP must, at a minimum, meet the requirements in section 256J.55, subdivision 1.

(b) A caregiver who is a member of a two-parent family that is required to participate
in DWP who would otherwise be ineligible for DWP under subdivision 3 may be allowed
to develop an employment plan under section 256J.521, subdivision 2, that may contain
alternate activities and reduced hours.

(c) A participant who is a victim of family violence shall be allowed to develop an
employment plan under section 256J.521, subdivision 3. A claim of family violence must
be documented by the applicant or participant by providing a sworn statement which is
supported by collateral documentation in section 256J.545, paragraph (b).

(d) One parent in a two-parent family unit deleted text begin that has a natural born child under
12 months of age deleted text end is not required to have an employment plan deleted text begin until the child reaches
12 months of age unless the family unit has already used the exclusion under section
256J.561, subdivision 3, or the previously allowed child under age one exemption under
section 256J.56, paragraph (a), clause (5) deleted text end new text begin if that parent:
new text end

new text begin (1) receives family and medical leave benefits under chapter 268B; or
new text end

new text begin (2) has a natural born child under 12 months of age until the child reaches 12 months
of age unless the family unit has already used the exclusion under section 256J.561,
subdivision 3, or the previously allowed child under age one exemption under section
256J.56, paragraph (a), clause (5) new text end .

(e) The provision in paragraph (d) ends the first full month after the child reaches
12 months of age. This provision is allowable only once in a caregiver's lifetime. In a
two-parent household, only one parent shall be allowed to use this category.

(f) The participant and job counselor must meet in the month after the month
the child reaches 12 months of age to revise the participant's employment plan. The
employment plan for a family unit that has a child under 12 months of age that has already
used the exclusion in section 256J.561 must be tailored to recognize the caregiving needs
of the parent.

Sec. 11.

Minnesota Statutes 2015 Supplement, section 256P.01, subdivision 3, is
amended to read:

Subd. 3.

Earned income.

"Earned income" means cash or in-kind income earned
through the receipt of wages, salary, commissions, bonuses, tips, gratuities, profit from
employment activities, net profit from self-employment activities, payments made by an
employer for regularly accrued vacation or sick leave, severance pay based on accrued
leave time, new text begin family and medical leave benefits under chapter 268B, new text end payments from training
programs at a rate at or greater than the state's minimum wage, royalties, honoraria, or
other profit from activity that results from the client's work, service, effort, or labor. The
income must be in return for, or as a result of, legal activity.

Sec. 12.

Minnesota Statutes 2014, section 268.19, subdivision 1, is amended to read:

Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered
from any person under the administration of the Minnesota Unemployment Insurance Law
are private data on individuals or nonpublic data not on individuals as defined in section
13.02, subdivisions 9 and 12, and may not be disclosed except according to a district court
order or section 13.05. A subpoena is not considered a district court order. These data
may be disseminated to and used by the following agencies without the consent of the
subject of the data:

(1) state and federal agencies specifically authorized access to the data by state
or federal law;

(2) any agency of any other state or any federal agency charged with the
administration of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment
offices for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other
state in accordance with section 256.978;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed
assistance programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry and the Commerce Fraud Bureau in the
Department of Commerce for uses consistent with the administration of their duties under
Minnesota law;

(9) the Department of Human Services and the Office of Inspector General and its
agents within the Department of Human Services, including county fraud investigators,
for investigations related to recipient or provider fraud and employees of providers when
the provider is suspected of committing public assistance fraud;

(10) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program by providing data on recipients and former recipients of food stamps or food
support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;

(11) local and state welfare agencies for the purpose of identifying employment,
wages, and other information to assist in the collection of an overpayment debt in an
assistance program;

(12) local, state, and federal law enforcement agencies for the purpose of
ascertaining the last known address and employment location of an individual who is the
subject of a criminal investigation;

(13) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(14) the Department of Health for the purposes of epidemiologic investigations;

(15) the Department of Corrections for the purpose of case planning for preprobation
and postprobation employment tracking of offenders sentenced to probation and
preconfinement and postconfinement employment tracking of committed offenders;

(16) the state auditor to the extent necessary to conduct audits of job opportunity
building zones as required under section 469.3201; deleted text begin and
deleted text end

(17) the Office of Higher Education for purposes of supporting program
improvement, system evaluation, and research initiatives including the Statewide
Longitudinal Education Data System new text begin ; and
new text end

new text begin (18) the Family and Medical Benefits Division of the Department of Employment
and Economic Development to be used as necessary to administer chapter 268B new text end .

(b) Data on individuals and employers that are collected, maintained, or used by
the department in an investigation under section 268.182 are confidential as to data
on individuals and protected nonpublic data not on individuals as defined in section
13.02, subdivisions 3 and 13, and must not be disclosed except under statute or district
court order or to a party named in a criminal proceeding, administrative or judicial, for
preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota
unemployment insurance program must not be made the subject or the basis for any
suit in any civil proceedings, administrative or judicial, unless the action is initiated by
the department.

Sec. 13.

new text begin [268B.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

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

new text begin Subd. 2. new text end

new text begin Account. new text end

new text begin "Account" means the family and medical benefit insurance
account in the special revenue fund in the state treasury under section 268B.02.
new text end

new text begin Subd. 3. new text end

new text begin Applicant. new text end

new text begin "Applicant" means an individual applying for benefits under
this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Benefit. new text end

new text begin "Benefit" means monetary payments under this chapter associated
with qualifying bonding, family, or pregnancy events.
new text end

new text begin Subd. 5. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of employment
and economic development.
new text end

new text begin Subd. 6. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Employment and
Economic Development.
new text end

new text begin Subd. 7. new text end

new text begin Employee. new text end

new text begin "Employee" means an individual for whom taxes are paid on
wages under this chapter.
new text end

new text begin Subd. 8. new text end

new text begin Employer. new text end

new text begin "Employer" means a person or entity that employed 21 or
more employees within the state at any one time within the last four completed calendar
quarters, other than an employee, required to pay taxes under this chapter.
new text end

new text begin Subd. 9. new text end

new text begin Health care provider. new text end

new text begin "Health care provider" means an individual who is
licensed, certified, or otherwise authorized under law to practice in the individual's state
of practice as a physician, osteopath, physician assistant, chiropractor, advanced practice
registered nurse, optometrist, licensed psychologist, licensed independent clinical social
worker, dentist, or podiatrist. "Chiropractor" means only a chiropractor who provides
manual manipulation of the spine to correct a subluxation demonstrated to exist by an x-ray.
new text end

new text begin Subd. 10. new text end

new text begin Pregnancy. new text end

new text begin "Pregnancy" means prenatal care or incapacity of a woman
due to pregnancy, childbirth, or related health conditions.
new text end

new text begin Subd. 11. new text end

new text begin Family care. new text end

new text begin "Family care" means an applicant caring for a family
member with a serious health condition.
new text end

new text begin Subd. 12. new text end

new text begin Bonding. new text end

new text begin "Bonding" means a biological or adoptive parent in conjunction
with the birth or adoption of a child, or a foster parent in conjunction with the placement
of a child in foster care.
new text end

new text begin Subd. 13. new text end

new text begin Covered employment. new text end

new text begin "Covered employment" has the meaning given in
section 268.035, subdivision 12.
new text end

new text begin Subd. 14. new text end

new text begin Noncovered employment. new text end

new text begin "Noncovered employment" has the meaning
given in section 268.035, subdivision 20.
new text end

new text begin Subd. 15. new text end

new text begin Qualified health care provider. new text end

new text begin "Qualified health care provider" means
a health care provider who, in the judgment of the commissioner, has the qualifications
necessary to diagnose or treat a particular health condition or conditions associated with
benefits sought under this chapter.
new text end

new text begin Subd. 16. new text end

new text begin Serious health condition. new text end

new text begin "Serious health condition" means an illness,
injury, impairment, or physical or mental condition that involves:
new text end

new text begin (1) inpatient care in a hospital, hospice, or residential medical care facility; or
new text end

new text begin (2) continuing treatment by a health care provider.
new text end

new text begin Subd. 17. new text end

new text begin Wage credits. new text end

new text begin "Wage credits" has the meaning given in section 268.035,
subdivision 27.
new text end

new text begin Subd. 18. new text end

new text begin High quarter. new text end

new text begin "High quarter" has the meaning given in section 268.035,
subdivision 19.
new text end

new text begin Subd. 19. new text end

new text begin Maximum weekly benefit amount. new text end

new text begin "Maximum weekly benefit amount"
means the state's average weekly wage as calculated under section 268.035, subdivision 23.
new text end

new text begin Subd. 20. new text end

new text begin ICD code. new text end

new text begin "ICD code" means the code under the International
Classification of Diseases, Clinical Modification/Coding System, for the most recent
edition commonly used.
new text end

new text begin Subd. 21. new text end

new text begin Medical benefit program. new text end

new text begin "Medical benefit program" means the program
administered under this chapter for the collection of taxes and payment of benefits related
to pregnancy benefits.
new text end

new text begin Subd. 22. new text end

new text begin Family benefit program. new text end

new text begin "Family benefit program" means the program
administered under this chapter for the collection of taxes and payment of benefits related
to family care and bonding.
new text end

new text begin Subd. 23. new text end

new text begin State's average weekly wage. new text end

new text begin "State's average weekly wage" means the
weekly wage calculated under section 268.035, subdivision 23.
new text end

new text begin Subd. 24. new text end

new text begin Family member. new text end

new text begin "Family member" means an employee's child, adult
child, spouse, sibling, parent, foster parent, mother-in-law, father-in-law, grandchild,
grandparent, or stepparent.
new text end

Sec. 14.

new text begin [268B.02] FAMILY AND MEDICAL BENEFIT INSURANCE
PROGRAM CREATION.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin A family and medical benefit insurance program is created
to be administered by the commissioner according to the terms of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Creation of division. new text end

new text begin A Family and Medical Benefit Insurance Division is
created within the department under the authority of the commissioner. The commissioner
shall appoint a director of the division. The division shall administer and operate the
benefit program under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Rulemaking. new text end

new text begin The commissioner may adopt rules to implement the
provisions of this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Account creation; appropriation. new text end

new text begin The family and medical benefit
insurance account is created in the special revenue fund in the state treasury. Money in
this account is appropriated to the commissioner to pay benefits under and to administer
this chapter.
new text end

Sec. 15.

new text begin [268B.03] ELIGIBILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Applicant. new text end

new text begin An applicant who is providing family care, is bonding,
or is pregnant, who satisfies the conditions of this section is eligible to receive benefits
subject to the provisions of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Wage credits. new text end

new text begin An applicant must have sufficient wage credits from an
employer as defined in section 268B.01, subdivision 8, to establish a benefit account under
section 268.07, subdivision 2. Wage credits from an employer during a period in which
the employer has successfully opted out of the benefit program being applied for may not
be used for the purposes of this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Seven-day qualifying event. new text end

new text begin The period for which an applicant is seeking
benefits must be or have been based on a single period of at least seven days related to
pregnancy, family care, or bonding. The days need not be consecutive.
new text end

new text begin Subd. 4. new text end

new text begin Ineligible. new text end

new text begin An applicant is not eligible for benefits for any day in which the
applicant worked for pay.
new text end

new text begin Subd. 5. new text end

new text begin Certification by health care provider. new text end

new text begin Except for bonding benefits, the
application for benefits must be certified in writing by a qualified health care professional.
new text end

new text begin Subd. 6. new text end

new text begin Records release. new text end

new text begin An individual whose medical records are necessary to
determine eligibility for benefits under this chapter must sign and date a legally effective
waiver authorizing release to the department of medical and other records to the limited
extent necessary to administer this chapter.
new text end

new text begin Subd. 7. new text end

new text begin Self-employed applicant. new text end

new text begin (a) To be eligible for benefits, a self-employed
individual who has elected coverage under section 268B.11 must fulfill only the
requirements, to the extent possible, of subdivisions 3, 4, 5, and 6 in addition to the
requirements under paragraph (b).
new text end

new text begin (b) A self-employed individual must provide documents sufficient to prove the
existence of the individual's business as well as how long that business has been in
operation. The commissioner must determine that the business was not created for the
purpose of obtaining benefits under this chapter.
new text end

Sec. 16.

new text begin [268B.04] APPLICATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application forms. new text end

new text begin The commissioner must create application
forms, to be available both online and on paper, for each of the following:
new text end

new text begin (1) an application for family care benefits;
new text end

new text begin (2) an application for bonding benefits; and
new text end

new text begin (3) an application for pregnancy benefits.
new text end

new text begin Subd. 2. new text end

new text begin Content of applications. new text end

new text begin (a) All three application forms under subdivision
1 must require, at a minimum, the following:
new text end

new text begin (1) the name, birth date, home address, and mailing address of the applicant;
new text end

new text begin (2) the Social Security number, or other unique identification number, of the applicant;
new text end

new text begin (3) a description of the qualifying event underlying the requested benefit;
new text end

new text begin (4) the date for which benefits are sought began or will begin, if known;
new text end

new text begin (5) the date for which benefits are sought ended or will end, if known;
new text end

new text begin (6) whether the benefits are sought on an intermittent basis;
new text end

new text begin (7) whether the applicant has applied for or received any other paid benefits, whether
public or private, based on the same event underlying the benefits sought or during the
same time period for which the applicant is seeking benefits;
new text end

new text begin (8) a description of any benefits listed under clause (7);
new text end

new text begin (9) a signed and dated certification that all the information contained in the
application is true and correct, to the best of the applicant's knowledge; and
new text end

new text begin (10) a list of all the applicant's employers for the past 79 weeks.
new text end

new text begin (b) In addition to the requirements of paragraph (a), an application for family care
benefits must contain, at a minimum, the following:
new text end

new text begin (1) the name, birth date, home address, and mailing address of the family member
for whom the applicant has provided or will be providing care;
new text end

new text begin (2) the family member's relationship to the applicant;
new text end

new text begin (3) the Social Security number, or other unique identification number, of the family
member for whom the applicant has provided or will be providing care;
new text end

new text begin (4) a certification from the care recipient, or the care recipient's authorized
representative, that all the information contained in the application is true and correct,
to the best of that individual's knowledge;
new text end

new text begin (5) a legally effective authorization, signed and dated by the care recipient or the
care recipient's authorized representative, for disclosure of medical information needed by
the department to fulfill its duties under this chapter; and
new text end

new text begin (6) a signed and dated certification by a qualified health care provider treating the
care recipient:
new text end

new text begin (i) describing the nature of the serious medical condition or conditions of the care
recipient;
new text end

new text begin (ii) stating whether care by another individual is necessary in the treatment, or will
aid in the recovery, of the care recipient;
new text end

new text begin (iii) describing the nature of the care under item (ii);
new text end

new text begin (iv) stating or estimating the dates benefits are needed; and
new text end

new text begin (v) listing the ICD code or codes, if any, of the serious medical condition or
conditions underlying the application for benefits.
new text end

new text begin (c) In addition to the requirements of paragraph (a), an application for benefits for
bonding must contain, at a minimum, the following:
new text end

new text begin (1) proof of the birth, adoption, or placement in foster care, as appropriate, of the
child for whom bonding benefits are sought; and
new text end

new text begin (2) a legally effective authorization, signed and dated by the applicant or other
authorized representative of the child for whom bonding benefits are sought, for disclosure
of medical information needed by the department to fulfill its duties under this chapter.
new text end

new text begin (d) In addition to the requirements of paragraph (a), an application for pregnancy
benefits must contain, at a minimum, the following:
new text end

new text begin (1) a legally effective authorization, signed and dated by the applicant or the
applicant's authorized representative, for disclosure of medical information needed by the
department to fulfill its duties under this chapter; and
new text end

new text begin (2) a signed and dated certification by a qualified health care provider treating the
applicant:
new text end

new text begin (i) describing the reason or reasons that pregnancy care is needed;
new text end

new text begin (ii) stating or estimating the dates care is needed; and
new text end

new text begin (iii) listing the ICD code or codes, if any, of the condition or conditions underlying
the application for benefits.
new text end

new text begin Subd. 3. new text end

new text begin Online access. new text end

new text begin The commissioner must, to the extent possible, create a
system allowing for all aspects of the applications under this section to be completed
online. This includes the use of electronic signatures.
new text end

new text begin Subd. 4. new text end

new text begin Administrative efficiencies. new text end

new text begin To the maximum extent feasible, the
commissioner must use the same or similar procedures for applications under this section
as for applications for benefits under chapter 268.
new text end

Sec. 17.

new text begin [268B.05] DETERMINATION OF APPLICATION.
new text end

new text begin Upon the filing of a complete application for benefits, the commissioner shall examine
the application and on the basis of facts found by the commissioner and records maintained
by the department, the application shall be determined to be valid or invalid within two
weeks. If the application is determined to be valid, the commissioner shall promptly notify
the applicant and any other interested party as to the week when benefits commence,
the weekly benefit amount payable, and the maximum duration of those benefits. If the
application is determined to be invalid, the commissioner shall notify the applicant and
any other interested party of that determination and the reasons for it. If the processing
of the application is delayed for any reason, the commissioner shall notify the applicant,
in writing, within two weeks of the date the application for benefits is filed of the reason
for the delay. Unless the applicant or any other interested party, within 30 days, requests
a hearing before a benefit judge, the determination is final. For good cause shown, the
30-day period may be extended. At any time within one year from the date of a monetary
determination, the commissioner, upon request of the applicant or on the commissioner's
own initiative, may reconsider the determination if it is found that an error in computation
or identity has occurred in connection with the determination or that additional wages
pertinent to the applicant's status have become available, or if that determination has been
made as a result of a nondisclosure or misrepresentation of a material fact.
new text end

Sec. 18.

new text begin [268B.06] EMPLOYER NOTIFICATION.
new text end

new text begin (a) Upon a determination under section 268B.05 that an applicant is entitled to
benefits, the commissioner must promptly send a notification to each current employer
of the applicant, if any, in accordance with paragraph (b).
new text end

new text begin (b) The notification under paragraph (a) must include, at a minimum:
new text end

new text begin (1) the name of the applicant;
new text end

new text begin (2) that the applicant has applied for and received benefits;
new text end

new text begin (3) that the applicant has been identified as an employee of the employer;
new text end

new text begin (4) the week the benefits commence;
new text end

new text begin (5) the weekly benefit amount payable;
new text end

new text begin (6) the maximum duration of benefits;
new text end

new text begin (7) an explanation of why the notification has been sent; and
new text end

new text begin (8) descriptions of the employer's right to participate in a hearing under section
268B.05, and appeal process under section 268B.07.
new text end

Sec. 19.

new text begin [268B.07] APPEAL PROCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Hearing. new text end

new text begin (a) The commissioner shall designate a chief benefit judge.
new text end

new text begin (b) Upon a timely appeal to a determination having been filed or upon a referral
for direct hearing, the chief benefit judge must set a time and date for a de novo due
process hearing and send notice to an applicant and an employer, by mail or electronic
transmission, not less than ten calendar days before the date of the hearing.
new text end

new text begin (c) The commissioner may adopt rules on procedures for hearings. The rules need
not conform to common law or statutory rules of evidence and other technical rules of
procedure.
new text end

new text begin (d) The chief benefit judge has discretion regarding the method by which the hearing
is conducted.
new text end

new text begin Subd. 2. new text end

new text begin Decision. new text end

new text begin (a) After the conclusion of the hearing, upon the evidence
obtained, the benefit judge must send by mail or electronic transmission to all parties, the
decision, reasons for the decision, and written findings of fact.
new text end

new text begin (b) Decisions of a benefit judge are not precedential.
new text end

new text begin Subd. 3. new text end

new text begin Request for reconsideration. new text end

new text begin Any party, or the commissioner, may,
within 30 calendar days of the receipt of the benefit judge's decision, file a request for
reconsideration asking the judge to reconsider that decision.
new text end

new text begin Subd. 4. new text end

new text begin Appeal to Court of Appeals. new text end

new text begin Any final determination on a request for
reconsideration may be appealed by any party directly to the Minnesota Court of Appeals.
new text end

new text begin Subd. 5. new text end

new text begin Benefit judges. new text end

new text begin (a) Only employees of the department who are attorneys
licensed to practice law in Minnesota may serve as a chief benefit judge, senior benefit
judges who are supervisors, or benefit judges.
new text end

new text begin (b) The chief benefit judge must assign a benefit judge to conduct a hearing and may
transfer to another benefit judge any proceedings pending before another benefit judge.
new text end

Sec. 20.

new text begin [268B.08] BENEFITS.
new text end

new text begin Subdivision 1. new text end

new text begin Weekly benefit amount. new text end

new text begin (a) Subject to the maximum weekly benefit
amount, an applicant's weekly benefit is calculated by adding the amounts obtained by
applying the following percentage to an applicant's average weekly wage earned with an
employer as defined in section 268B.01, subdivision 8:
new text end

new text begin (1) 80 percent of wages that do not exceed 50 percent of the state's average weekly
wage; plus
new text end

new text begin (2) 66 percent of wages that exceed 50 percent of the state's average weekly wage
but not 100 percent; plus
new text end

new text begin (3) 55 percent of wages that exceed 100 percent of the state's average weekly wage.
new text end

new text begin (b) The average weekly wage of the applicant under paragraph (a) must be calculated
by dividing the high quarter wage credits of the applicant by 13.
new text end

new text begin (c) The state's average weekly wage is the average wage as calculated under section
268.035, subdivision 23, at the time a benefit amount is first determined.
new text end

new text begin (d) Notwithstanding any other provision in this section, weekly benefits must not
exceed the maximum weekly benefit amount applicable at the time benefit payments
commence.
new text end

new text begin Subd. 2. new text end

new text begin Timing of payment. new text end

new text begin Except as otherwise provided for in this chapter,
benefits must be paid weekly.
new text end

new text begin Subd. 3. new text end

new text begin Method of payment. new text end

new text begin The commissioner may pay benefits using any
method or methods authorized for the payment of unemployment insurance benefits
under chapter 268.
new text end

new text begin Subd. 4. new text end

new text begin Maximum length of benefits. new text end

new text begin In a 52-week period, an applicant may
receive a total of 12 weeks of benefits under this chapter.
new text end

new text begin Subd. 5. new text end

new text begin Minimum period for which benefits payable. new text end

new text begin Any claim for benefits
must be based on a single-qualifying benefit period of at least seven days; thereafter,
benefits may be paid for a minimum increment of one day.
new text end

new text begin Subd. 6. new text end

new text begin Total paid benefits not to exceed average weekly wage. new text end

new text begin An applicant's
combined weekly employer-paid wage replacement benefits and benefits under this
chapter must not exceed an applicant's average weekly wage. Benefits under this chapter
must be reduced so those combined benefits do not exceed that amount.
new text end

new text begin Subd. 7. new text end

new text begin Withholding of federal tax. new text end

new text begin If the Internal Revenue Service determines
that benefits are subject to federal income tax, and an applicant elects to have federal
income tax deducted and withheld from the applicant's benefits, the commissioner must
deduct and withhold the amount specified in the Internal Revenue Code in a manner
consistent with state law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 21.

new text begin [268B.09] EMPLOYMENT PROTECTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Retaliation prohibited. new text end

new text begin An employer must not retaliate against an
employee for requesting or obtaining benefits, or for exercising any other right under
this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Waiver of rights void. new text end

new text begin An agreement by an individual to waive, release,
or commute rights to benefits under this chapter is void. An employer may not obstruct or
impede an application for benefits.
new text end

new text begin Subd. 3. new text end

new text begin No assignment of benefits. new text end

new text begin Any assignment, pledge, or encumbrance
of benefits is void. Benefits are exempt from levy, execution, attachment, or any other
remedy provided for the collection of debt. Any waiver of this subdivision is void.
new text end

new text begin Subd. 4. new text end

new text begin Remedies. new text end

new text begin In addition to any other remedies available by law, an individual
injured by a violation of this section may bring a civil action seeking any damages
recoverable by law, together with costs and disbursements, including reasonable attorney
fees, and may receive injunctive and other equitable relief as determined by a court.
new text end

new text begin Subd. 5. new text end

new text begin Leave and employment rights not created. new text end

new text begin This chapter does not create
a right to employment leave to an individual receiving benefits under this chapter. This
chapter does not create a right to return to an employment position before, during, or after
the receipt of benefits under this chapter.
new text end

Sec. 22.

new text begin [268B.10] SUBSTITUTION OF OTHER PLAN; EMPLOYER
EXCLUSION.
new text end

new text begin Subdivision 1. new text end

new text begin Application for exclusion. new text end

new text begin An employer may apply to the
commissioner to be excluded from either or both the family and medical benefit programs
under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Requirements for approving exclusion. new text end

new text begin The commissioner must approve
an application for exclusion from a program under this chapter if the commissioner finds
that the employer provides a benefit plan that:
new text end

new text begin (1) covers all of the employees that would be covered by a program under this chapter;
new text end

new text begin (2) provides an amount of employer-provided wage benefits that when combined
with other employer-paid and employee-paid wage benefits is approximately equal to or
greater than that provided under the program; and
new text end

new text begin (3) does not require employee payments that exceed employee payments required
under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Audit and investigation. new text end

new text begin The commissioner may investigate and audit
plans for which an exclusion was approved under this section both before and after an
exclusion is approved.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019, for exclusions
commencing January 1, 2020, and thereafter.
new text end

Sec. 23.

new text begin [268B.11] SELF-EMPLOYED ELECTION OF COVERAGE.
new text end

new text begin (a) A self-employed individual may file with the commissioner, by electronic
transmission in a format prescribed by the commissioner, an election that the individual is
covered as an employee for not less than two calendar years. Upon the approval of the
commissioner, sent by United States mail or electronic transmission, the individual is
covered as an employee under this chapter beginning the calendar quarter after the date
of approval or beginning in a later calendar quarter if requested by the employer. The
individual ceases to be covered as of the first day of January of any calendar year only if,
at least 30 calendar days before the first day of January, the individual has filed with the
commissioner, by electronic transmission in a format prescribed by the commissioner, a
notice to that effect.
new text end

new text begin (b) The commissioner must terminate any election agreement under this section
upon 30 calendar days' notice sent by mail or electronic transmission if the individual is
delinquent on any taxes due under this chapter.
new text end

new text begin (c) The individual electing under this section must pay both the employer and
employee taxes under section 268B.12.
new text end

new text begin (d) The individual must comply with the requirements imposed on employers and
employees under this chapter except to the extent the commissioner determines requiring
compliance is unreasonable.
new text end

Sec. 24.

new text begin [268B.111] SMALL EMPLOYER ELECTION OF COVERAGE.
new text end

new text begin An employer of less than 21 employees may elect to be an employer subject to
chapter 268B. An election must be filed with the commissioner by electronic transmission
in a format prescribed by the commissioner. An election must be for not less than two
calendar years following the year of election. The commissioner shall notify an employer
of the effective date of an election which must be the beginning of the first quarter the
commissioner determines is administratively practical.
new text end

Sec. 25.

new text begin [268B.12] TAXATION.
new text end

new text begin Subdivision 1. new text end

new text begin Employer. new text end

new text begin (a) Each taxpaying employer under the state's
unemployment insurance program must pay a tax on the wages paid to employees in
covered employment for each calendar year. The tax must be paid on all wages up to the
maximum specified by this section.
new text end

new text begin (b) Each reimbursing employer under the state's unemployment insurance law must
pay a tax on the wages paid to employees in covered employment in the same amount
and manner as provided by paragraph (a).
new text end

new text begin Subd. 2. new text end

new text begin Employee. new text end

new text begin Each employee on whose wages a tax is paid under this
section must pay a tax equal to that of the employer under this section. The employer
shall withhold employee taxes from the wages of an employee and make payment to the
commissioner on behalf of an employee.
new text end

new text begin Subd. 3. new text end

new text begin Wages subject to tax. new text end

new text begin The maximum wages subject to tax in a calendar
year is equal to the maximum earnings in that year subject to the FICA Old-Age,
Survivors, and Disability Insurance tax.
new text end

new text begin Subd. 4. new text end

new text begin Annual tax rates. new text end

new text begin The employer tax rates for the calendar year beginning
January 1, 2020, shall be as follows:
new text end

new text begin (1) for employers participating in both family and medical benefit programs, 0.09
percent;
new text end

new text begin (2) for an employer participating in only the medical benefit program and opting out
of the family benefit program, 0.08 percent; and
new text end

new text begin (3) for an employer participating in only the family benefit program and opting out
of the medical benefit program, 0.01 percent.
new text end

new text begin Subd. 5. new text end

new text begin Tax rate adjustments. new text end

new text begin (a) Each calendar year following the calendar year
beginning January 1, 2020, except calendar year 2021, the commissioner must adjust the
annual tax rates using the formula in paragraph (b).
new text end

new text begin (b) To calculate the employer tax rates for a calendar year, the commissioner must:
new text end

new text begin (1) multiply 1.45 times the amount disbursed from the account for the 52-week
period ending September 30 of the prior year;
new text end

new text begin (2) subtract the amount in the account on that September 30 from the resulting figure;
new text end

new text begin (3) divide the resulting figure by twice the total wages in covered employment of
employees of employers that have not opted out of both the family and medical benefit
programs. For employees of employers that have opted out of one of the two programs,
count only the proportion of wages in covered employment associated with the program of
which the employer did not opt out; and
new text end

new text begin (4) round the resulting figure down to the nearest one-tenth of one percent.
new text end

new text begin (c) For calendar year 2021, the calculation shall be as provided in paragraph
(b), except that the disbursements in clause (1) shall be those for the 39 weeks ending
September 30, and projected disbursements for the next 13 weeks.
new text end

new text begin (d) The commissioner must not increase or decrease the employer tax rate by more
than 0.1 percent each year.
new text end

new text begin (e) The commissioner must apportion the tax rate between the family and medical
benefit programs based on the relative proportion of expenditures for each program during
the preceding year.
new text end

new text begin Subd. 6. new text end

new text begin Tax rate limits. new text end

new text begin The aggregate tax rate of employers and employees under
this chapter must not be less than 0.1 percent or more than 1.5 percent annually.
new text end

new text begin Subd. 7. new text end

new text begin Collection of taxes; efficiencies. new text end

new text begin For collection of taxes under this section,
the commissioner must, to the maximum extent possible, use the same collection process
as that used for collection of unemployment insurance taxes.
new text end

new text begin Subd. 8. new text end

new text begin Deposit of taxes. new text end

new text begin All taxes collected under this section must be deposited
into the account.
new text end

Sec. 26.

new text begin [268B.13] COLLECTION OF TAXES.
new text end

new text begin Subdivision 1. new text end

new text begin Amount computed presumed correct. new text end

new text begin Any amount due from an
employer, as computed by the commissioner, is presumed to be correctly determined and
assessed, and the burden is upon the employer to show its incorrectness. A statement
by the commissioner of the amount due is admissible in evidence in any court or
administrative proceeding and is prima facie evidence of the facts in the statement.
new text end

new text begin Subd. 2. new text end

new text begin Priority of payments. new text end

new text begin (a) Any payment received from an employer must
be applied in the following order:
new text end

new text begin (1) taxes due under this chapter; then
new text end

new text begin (2) interest on past due taxes; then
new text end

new text begin (3) penalties, late fees, administrative service fees, and costs.
new text end

new text begin (b) Paragraph (a) is the priority used for all payments received from an employer,
regardless of how the employer may designate the payment to be applied, except when:
new text end

new text begin (1) there is an outstanding lien and the employer designates that the payment made
should be applied to satisfy the lien;
new text end

new text begin (2) a court or administrative order directs that the payment be applied to a specific
obligation;
new text end

new text begin (3) a preexisting payment plan provides for the application of payment; or
new text end

new text begin (4) the commissioner agrees to apply the payment to a different priority.
new text end

new text begin Subd. 3. new text end

new text begin Costs. new text end

new text begin (a) Any employer that fails to pay any amount when due under this
chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral
to any public or private collection agency, or litigation costs, including attorney fees,
incurred in the collection of the amounts due.
new text end

new text begin (b) If any tendered payment of any amount due is not honored when presented to a
financial institution for payment, any costs assessed to the department by the financial
institution and a fee of $25 must be assessed to the person.
new text end

new text begin (c) Costs and fees collected under this subdivision are credited to the account.
new text end

new text begin Subd. 4. new text end

new text begin Interest on amounts past due. new text end

new text begin If any amounts due from an employer
under this chapter, except late fees, are not received on the date due, the unpaid balance
bears interest at the rate of one percent per month or any part of a month. Interest collected
under this subdivision is payable to the account.
new text end

new text begin Subd. 5. new text end

new text begin Interest on judgments. new text end

new text begin Regardless of section 549.09, if judgment is
entered upon any past due amounts from an employer under this chapter, the unpaid
judgment bears interest at the rate specified in subdivision 4 until the date of payment.
new text end

new text begin Subd. 6. new text end

new text begin Credit adjustments; refunds. new text end

new text begin (a) If an employer makes an application for
a credit adjustment of any amount paid under this chapter within four years of the date
that the payment was due, in a manner and format prescribed by the commissioner, and
the commissioner determines that the payment or any portion thereof was erroneous,
the commissioner must make an adjustment and issue a credit without interest. If a
credit cannot be used, the commissioner must refund, without interest, the amount
erroneously paid. The commissioner, on the commissioner's own motion, may make a
credit adjustment or refund under this subdivision.
new text end

new text begin (b) Any refund returned to the commissioner is considered unclaimed property
under chapter 345.
new text end

new text begin (c) If a credit adjustment or refund is denied in whole or in part, a determination of
denial must be sent to the employer by United States mail or electronic transmission. The
determination of denial is final unless an employer files an appeal within 20 calendar days
after receipt of the determination.
new text end

new text begin Subd. 7. new text end

new text begin Priorities under legal dissolutions or distributions. new text end

new text begin In the event of
any distribution of an employer's assets according to an order of any court, including
any receivership, assignment for benefit of creditors, adjudicated insolvency, or similar
proceeding, taxes then or thereafter due must be paid in full before all other claims,
except claims for wages of not more than $1,000 per former employee that are earned
within six months of the commencement of the proceedings. In the event of an employer's
adjudication in bankruptcy under federal law, taxes then or thereafter due are entitled to
the priority provided in that law for taxes due.
new text end

Sec. 27.

new text begin [268B.14] ADMINISTRATIVE COSTS.
new text end

new text begin For the calendar year beginning January 1, 2020, and each calendar year thereafter,
the commissioner may spend up to seven percent of projected benefit payments for that
calendar year for the administration of this chapter.
new text end

Sec. 28.

new text begin [268B.15] PUBLIC OUTREACH.
new text end

new text begin The commissioner may use administrative funds for the purpose of outreach and
education for employees regarding this chapter. This may include providing grants to
public and private persons and entities.
new text end

Sec. 29.

new text begin [268B.16] APPLICANT'S FALSE REPRESENTATIONS;
CONCEALMENT OF FACTS; PENALTY.
new text end

new text begin (a) Any applicant who knowingly makes a false statement or representation,
knowingly fails to disclose a material fact, or makes a false statement or representation
without a good-faith belief as to the correctness of the statement or representation, in order
to obtain or in an attempt to obtain benefits may be assessed, in addition to any other
penalties, an administrative penalty of ineligibility of benefits for 13 to 104 weeks.
new text end

new text begin (b) A determination of ineligibility setting out the weeks the applicant is ineligible
must be sent to the applicant by United States mail or electronic transmission. The
determination is final unless an appeal is filed within 30 calendar days after receipt of
the determination.
new text end

Sec. 30.

new text begin [268B.17] EMPLOYER MISCONDUCT; PENALTY.
new text end

new text begin (a) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer is in collusion with any applicant for the purpose of
assisting the applicant in receiving benefits fraudulently. The penalty is $500 or the
amount of benefits determined to be overpaid, whichever is greater.
new text end

new text begin (b) The commissioner must penalize an employer if that employer or any employee,
officer, or agent of that employer:
new text end

new text begin (1) made a false statement or representation knowing it to be false;
new text end

new text begin (2) made a false statement or representation without a good-faith belief as to the
correctness of the statement or representation; or
new text end

new text begin (3) knowingly failed to disclose a material fact.
new text end

new text begin (c) The penalty is the greater of $500 or 50 percent of the following resulting from
the employer's action:
new text end

new text begin (1) the amount of any overpaid benefits to an applicant;
new text end

new text begin (2) the amount of benefits not paid to an applicant that would otherwise have
been paid; or
new text end

new text begin (3) the amount of any payment required from the employer under this chapter that
was not paid.
new text end

new text begin (d) Penalties must be paid within 30 calendar days of issuance of the determination
of penalty and credited to the account.
new text end

new text begin (e) The determination of penalty is final unless the employer files an appeal within
30 calendar days after the sending of the determination of penalty to the employer by
United States mail or electronic transmission.
new text end

Sec. 31.

new text begin [268B.18] RECORDS; AUDITS.
new text end

new text begin (a) Each employer must keep true and accurate records on individuals performing
services for the employer, containing the information the commissioner may require
under this chapter. The records must be kept for a period of not less than four years
in addition to the current calendar year.
new text end

new text begin (b) For the purpose of administering this chapter, the commissioner has the power to
investigate, audit, examine, or cause to be supplied or copied, any books, correspondence,
papers, records, or memoranda that are the property of, or in the possession of, an
employer or any other person at any reasonable time and as often as may be necessary.
new text end

new text begin (c) An employer or other person that refuses to allow an audit of its records by the
department or that fails to make all necessary records available for audit in the state upon
request of the commissioner may be assessed an administrative penalty of $500. The
penalty collected is credited to the account.
new text end

Sec. 32.

new text begin [268B.19] SUBPOENAS; OATHS.
new text end

new text begin (a) The commissioner or benefit judge has authority to administer oaths and
affirmations, take depositions, certify to official acts, and issue subpoenas to compel the
attendance of individuals and the production of documents and other personal property
necessary in connection with the administration of this chapter.
new text end

new text begin (b) Individuals subpoenaed, other than applicants or officers and employees of an
employer that is the subject of the inquiry, must be paid witness fees the same as witness
fees in civil actions in district court. The fees need not be paid in advance.
new text end

new text begin (c) The subpoena is enforceable through the district court in Ramsey County.
new text end

Sec. 33.

new text begin [268B.20] MEDIATION AND CONCILIATION.
new text end

new text begin The department must offer mediation and conciliation services to employers and
applicants to resolve disputes concerning benefits under this chapter. The commissioner
shall notify parties of the availability of those services and may by rule extend appeal
deadlines to accommodate conciliation and mediation.
new text end

Sec. 34.

Minnesota Statutes 2014, section 270B.14, subdivision 2, is amended to read:

Subd. 2.

Disclosure to Department of Employment and Economic Development.

(a) Data relating to individuals are treated as follows:

(1) Return information may be disclosed to the Department of Employment and
Economic Development to the extent provided in clause (2) and for the purposes provided
in clause (3).

(2) The data that may be disclosed is limited to the amount of gross income earned by
an individual, the total amounts of earnings from each employer, and the employer's name.

(3) Data may be requested pertaining only to individuals who have claimed benefits
under sections 268.03 to 268.23 new text begin and 268B.01 to 268B.20 new text end and only if the individuals are
the subject of investigations based on other information available to the Department of
Employment and Economic Development. Data received may be used only as set forth in
section 268.19, subdivision 1, paragraph (b).

(b) Data pertaining to corporations or other employing units may be disclosed to
the Department of Employment and Economic Development to the extent necessary for
the proper enforcement of deleted text begin chapter deleted text end new text begin chapters new text end 268 new text begin and 268B new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 35. new text begin INITIAL TAX RATES FOR FAMILY AND MEDICAL BENEFIT
PROGRAM.
new text end

new text begin Notwithstanding any other law to the contrary, the tax rate for employers subject
to tax under Minnesota Statutes, section 268B.12, and employees in an equal amount, is
0.045 percent in calendar year 2019.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2016.
new text end

Sec. 36. new text begin FAMILY AND MEDICAL LEAVE BENEFIT PROGRAM;
APPROPRIATION.
new text end

new text begin $6,983,000 in fiscal year 2017 is appropriated from the general fund to the
commissioner of employment and economic development for the purposes of Minnesota
Statutes, chapter 268B. The base for fiscal year 2018 is $9,201,000, the base for fiscal year
2019 is $9,667,000, and the base for fiscal years 2020 and later is zero.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2016.
new text end

Sec. 37. new text begin EFFECTIVE DATE INTENTION.
new text end

new text begin The intention of the legislature is that benefits under Minnesota Statutes, chapter
268B, shall not be applied for nor paid until January 1, 2020, and thereafter. The sections
of this article are effective August 1, 2016, unless specifically provided otherwise in
this article.
new text end