1.1 	A bill for an act
1.2 	relating to economic development; appropriating money for the Departments of 
1.3 	Employment and Economic Development, Labor and Industry, and Commerce; 
1.4 	the Bureau of Mediation Services; Housing Finance Agency; Explore 
1.5 	Minnesota Tourism; Workers' Compensation Court of Appeals; Public Utilities 
1.6 	Commission; Pollution Control Agency; and Department of Administration; 
1.7 	making policy changes to jobs and economic development, housing, labor 
1.8 	and industry, and commerce; establishing a tiered minimum wage; modifying 
1.9 	unemployment insurance employer taxes; regulating delivered fuels; modifying 
1.10 	energy conservation provisions; regulating renewable fuels; regulating 
1.11 	greenhouse gas emissions; making miscellaneous energy policy changes and 
1.12 	conforming changes; modifying fees; providing penalties; requiring reports;
1.13 	amending Minnesota Statutes 2014, sections 3.8851, subdivisions 3, 7; 12A.15, 
1.14 	subdivision 1; 16B.323; 45.0135, subdivision 6, by adding a subdivision; 
1.15 	65B.44, by adding a subdivision; 65B.84, subdivision 1; 79.251, subdivision 
1.16 	1; 116C.779, subdivision 1; 116C.7791, subdivision 5; 116C.7792; 116J.394; 
1.17 	116J.431, subdivisions 1, 6; 116J.437, subdivision 1; 116J.8738, subdivision 3, 
1.18 	by adding a subdivision; 116J.8747, subdivisions 1, 2; 116L.17, subdivision 4; 
1.19 	116L.20, subdivision 1; 116L.98, subdivisions 1, 3, 5, 7; 116M.14, by adding 
1.20 	a subdivision; 116M.18, subdivisions 1, 2, 3, 4, 8; 177.24, subdivision 1, by 
1.21 	adding subdivisions; 216B.02, by adding subdivisions; 216B.16, subdivisions 
1.22 	6, 6b, 6c, 7b, 8, 12, 19; 216B.164, subdivisions 3, 3a; 216B.1641; 216B.1645, 
1.23 	subdivision 1; 216B.1691; 216B.2401; 216B.241, subdivisions 5c, 9, by 
1.24 	adding a subdivision; 216B.2411, subdivision 3; 216B.2421, subdivision 2; 
1.25 	216B.2422, subdivisions 2c, 4; 216B.2425; 216B.243, subdivisions 3b, 8, 9; 
1.26 	216C.41, subdivisions 2, 5a; 216C.435, subdivision 5; 216E.03, subdivisions 
1.27 	5, 7; 216E.04, subdivision 5; 216H.01, by adding a subdivision; 216H.02, 
1.28 	subdivision 1; 216H.021, subdivision 1; 216H.03, subdivisions 1, 3, 4, 7; 
1.29 	216H.07; 237.01, by adding subdivisions; 256E.31, subdivision 3; 268.035, 
1.30 	subdivisions 6, 21b, 26, 30; 268.051, subdivision 7, by adding a subdivision; 
1.31 	268.07, subdivisions 2, 3b; 268.085, subdivisions 1, 2; 268.095, subdivisions 1, 
1.32 	10; 268.105, subdivisions 3, 7; 268.136, subdivision 1; 268.194, subdivision 
1.33 	1; 268A.01, subdivisions 6, 10, by adding a subdivision; 268A.03; 268A.06; 
1.34 	268A.07; 268A.085; 268A.15, subdivision 3; 297I.11, subdivision 2; 299F.011, 
1.35 	by adding a subdivision; 326B.092, subdivision 7; 326B.096; 326B.106, 
1.36 	subdivision 1; 326B.13, subdivision 8; 326B.809; 326B.986, subdivisions 5, 8; 
1.37 	327.20, subdivision 1; 341.321; 345.42, subdivision 1, by adding a subdivision; 
1.38 	373.48, subdivision 3; 453A.02, subdivision 5; 462A.33, subdivision 1; 469.049; 
1.39 	469.050, subdivision 4; 469.084, subdivisions 3, 4, 8, 9, 10, 14; 473.145; 
2.1 	473.254, subdivisions 2, 3a; Laws 1994, chapter 493, section 1; Laws 2008, 
2.2 	chapter 296, article 1, section 25, as amended; Laws 2014, chapter 312, article 2, 
2.3 	section 14; proposing coding for new law in Minnesota Statutes, chapters 80A; 
2.4 	116J; 116L; 175; 181; 216B; 216C; 216E; 216H; 237; 609; proposing coding for 
2.5 	new law as Minnesota Statutes, chapter 59D; repealing Minnesota Statutes 2014, 
2.6 	sections 3.8852; 80G.01; 80G.02; 80G.03; 80G.04; 80G.05; 80G.06; 80G.07; 
2.7 	80G.08; 80G.09; 80G.10; 116C.779, subdivision 3; 116U.26; 174.187; 177.24, 
2.8 	subdivision 2; 216B.1612; 216B.164, subdivision 10; 216B.8109; 216B.811; 
2.9 	216B.812; 216B.813; 216B.815; 216C.39; 216C.411; 216C.412; 216C.413; 
2.10 	216C.414; 216C.415; 216C.416; 216H.02, subdivisions 2, 3, 4, 5, 6; 469.084, 
2.11 	subdivisions 11, 12; Laws 2013, chapter 85, article 6, section 11; Laws 2014, 
2.12 	chapter 312, article 2, section 15; Minnesota Rules, part 5205.0580, subpart 21.
2.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.14 	ARTICLE 1
2.15 	APPROPRIATIONS

2.16	Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.
 	
2.17 	The amounts shown in this section summarize direct appropriations, by fund, made 
2.18 	in this article.

2.19			2016
		2017
		Total
	
2.20	General
	$
	166,255,000
	$
	165,521,000
	$
	331,776,000
	
2.21	Workforce Development
		33,932,000
		30,165,000
		64,097,000
	
2.22	Remediation
		700,000
		700,000
		1,400,000
	
2.23	Workers' Compensation 
		27,325,000
		29,325,000
		56,650,000
	
2.24	Special Revenue
		35,648,000
		36,110,000
		71,758,000
	
2.25	Petroleum Tank Release
		1,052,000
		1,052,000
		2,104,000
	
2.26	Total
	$
	264,912,000
	$
	262,873,000
	$
	527,785,000

2.27	Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.
 	
2.28 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.29 	agencies and for the purposes specified in this article. The appropriations are from the 
2.30 	general fund, or another named fund, and are available for the fiscal years indicated 
2.31 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
2.32 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
2.33 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
2.34 	year 2017. "The biennium" is fiscal years 2016 and 2017.

2.35				APPROPRIATIONS
	
2.36				Available for the Year
	
2.37				Ending June 30
	
2.38					2016
		2017

3.1
3.2	Sec. 3. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

3.3	Subdivision 1.Total Appropriation
 	$
	101,882,000
	$
	101,319,000

3.4	Appropriations by Fund
	
3.5		2016
	2017
	
3.6	General
	68,279,000
	71,483,000
	
3.7	Remediation
	700,000
	700,000
	
3.8
3.9	Workforce 
Development
	32,903,000
	29,136,000
	
3.10 	The amounts that may be spent for each 
3.11 	purpose are specified in the following 
3.12 	subdivisions.

3.13
3.14	Subd. 2.Business and Community 
Development
 		33,666,000
		44,870,000

3.15	Appropriations by Fund
	
3.16	General
	32,281,000
	43,485,000
	
3.17	Remediation
	700,000
	700,000
	
3.18
3.19	Workforce 
Development
	685,000
	685,000
	
3.20 	(a) $8,000,000 in fiscal year 2016 and 
3.21 	$15,000,000 in fiscal year 2017 are for the 
3.22 	Minnesota investment fund under Minnesota 
3.23 	Statutes, section 116J.8731. Of this amount, 
3.24 	the commissioner may use up to three percent 
3.25 	for administrative expenses and technology 
3.26 	updates. This appropriation is available until 
3.27 	June 30, 2019.
3.28 	(1) Of the amount appropriated in fiscal year 
3.29 	2016, $2,000,000 is for a loan to construct a 
3.30 	$10,000,000 aircraft manufacturing facility. 
3.31 	Funds available under this section may be 
3.32 	used for purchases of materials and supplies 
3.33 	made from July 1, 2015, through June 
3.34 	30, 2016, which are directly related to the 
3.35 	construction of the aircraft manufacturing 
3.36 	facility. The loan under this clause is not 
3.37 	subject to the limitations under Minnesota 
4.1 	Statutes, section 116J.8731, subdivision 
4.2 	5. The commissioner shall forgive the 
4.3 	loan after verification that the project has 
4.4 	satisfied performance goals and contractual 
4.5 	obligations as required under Minnesota 
4.6 	Statutes, section 116J.8731, subdivision 7. 
4.7 	The amount available under this clause is 
4.8 	available until June 30, 2019.
4.9 	(2) Of the amount appropriated in fiscal 
4.10 	year 2016, $2,000,000 is for grants to cities 
4.11 	for broadband infrastructure and other 
4.12 	eligible expenses, as identified in Minnesota 
4.13 	Statutes, section 116J.395, subdivision 2, 
4.14 	for a wire-line broadband infrastructure 
4.15 	demonstration project that is part of a 
4.16 	public-private partnership.
4.17 	(3) In order to be awarded the broadband 
4.18 	infrastructure grant under clause (2), a city 
4.19 	must demonstrate:
4.20 	(i) funding from nonstate sources that 
4.21 	matches the amount appropriated in clause 
4.22 	(2);
4.23 	(ii) broadband service outages of 12 hours or 
4.24 	more in the area within its jurisdiction;
4.25 	(iii) a decline in the number of businesses in 
4.26 	the area within its jurisdiction, as a result of 
4.27 	the lack of adequate broadband service; and
4.28 	(iv) an agreement that the city will own 
4.29 	the broadband infrastructure as part of the 
4.30 	public-private partnership.
4.31 	(4) The commissioner of employment and 
4.32 	economic development must award the 
4.33 	broadband infrastructure grant under clause 
4.34 	(2) before September 1, 2015.
5.1 	(b) $7,500,000 in fiscal year 2016 and 
5.2 	$12,500,000 in fiscal year 2017 are for the 
5.3 	Minnesota job creation fund under Minnesota 
5.4 	Statutes, section 116J.8748. Of this amount, 
5.5 	the commissioner of employment and 
5.6 	economic development may use up to three 
5.7 	percent for administrative expenses. This 
5.8 	appropriation is available until June 30, 2019.
5.9 	(c) $1,272,000 each year is from the 
5.10 	general fund for contaminated site cleanup 
5.11 	and development grants under Minnesota 
5.12 	Statutes, sections 116J.551 to 116J.558. This 
5.13 	appropriation is available until June 30, 2019.
5.14 	(d) $700,000 each year is from the 
5.15 	remediation fund for contaminated site 
5.16 	cleanup and development grants under 
5.17 	Minnesota Statutes, sections 116J.551 to 
5.18 	116J.558. This appropriation is available 
5.19 	until June 30, 2019.
5.20 	(e) $1,425,000 each year is from the 
5.21 	general fund for the business development 
5.22 	competitive grant program. Of this amount, 
5.23 	up to five percent is for administration and 
5.24 	monitoring of the business development 
5.25 	competitive grant program. All grant awards 
5.26 	shall be for two consecutive years. Grants 
5.27 	shall be awarded in the first year.
5.28 	(f) $4,195,000 each year is from the general 
5.29 	fund for the Minnesota job skills partnership 
5.30 	program under Minnesota Statutes, sections 
5.31 	116L.01 to 116L.17. If the appropriation for 
5.32 	either year is insufficient, the appropriation 
5.33 	for the other year is available. This 
5.34 	appropriation is available until June 30, 2019.
6.1 	(g) $1,000,000 each year is from the general 
6.2 	fund for a grant  to Enterprise Minnesota, Inc. 
6.3 	Of this amount, $750,000 each year is for the 
6.4 	small business growth acceleration program 
6.5 	under Minnesota Statutes, section 116O.115, 
6.6 	and $250,000 each year is for operations and 
6.7 	administration.
6.8 	(h) $150,000 each year is from the general 
6.9 	fund for the Center for Rural Policy and 
6.10 	Development.
6.11 	(i) $1,373,000 in fiscal year 2016 is for the 
6.12 	workforce housing grants pilot program in 
6.13 	Laws 2014, chapter 308, article 6, section 14. 
6.14 	This appropriation is onetime and is available 
6.15 	until June 30, 2018. The commissioner of 
6.16 	employment and economic development may 
6.17 	use up to five percent for administrative costs.
6.18 	(j) $2,500,000 in fiscal year 2016 and 
6.19 	$2,500,000 in fiscal year 2017 are from the 
6.20 	general fund for grants for the workforce 
6.21 	housing development program in Minnesota 
6.22 	Statutes, section 116J.549. Of these amounts, 
6.23 	the commissioner may use up to five 
6.24 	percent for administrative expenses. The 
6.25 	appropriations in fiscal years 2016 and 2017 
6.26 	are available until June 30, 2018.
6.27 	(k) $200,000 in fiscal year 2016 and 
6.28 	$200,000 in fiscal year 2017 are from the 
6.29 	general fund for a grant to develop and 
6.30 	implement a southern and southwestern 
6.31 	Minnesota initiative foundation collaborative 
6.32 	pilot project. Funds available under this 
6.33 	section must be used to support and develop 
6.34 	entrepreneurs in diverse populations in 
7.1 	southern and southwestern Minnesota. This 
7.2 	is a onetime appropriation.
7.3 	(l) $750,000 in fiscal year 2016 and 
7.4 	$1,500,000 in fiscal year 2017 are from 
7.5 	the general fund for the greater Minnesota 
7.6 	business development public infrastructure 
7.7 	grant program under Minnesota Statutes, 
7.8 	section 116J.431. Funds available under this 
7.9 	paragraph may be used for site preparation 
7.10 	of property owned and to be used by private 
7.11 	entities. The base for this program is 
7.12 	$2,000,000 each year beginning in fiscal year 
7.13 	2018.
7.14 	(m) $173,000 in fiscal year 2016 is from 
7.15 	the general fund for the innovation voucher 
7.16 	pilot program under Laws 2014, chapter 312, 
7.17 	article 2, section 2, subdivision 2, paragraph 
7.18 	(j). This is a onetime appropriation.
7.19 	(n) $300,000 in fiscal year 2016 and 
7.20 	$300,000 in fiscal year 2017 are from 
7.21 	the workforce development fund to the 
7.22 	commissioner of employment and economic 
7.23 	development for a grant to the small 
7.24 	business development center hosted at 
7.25 	Minnesota State University, Mankato, for 
7.26 	a collaborative initiative with the Regional 
7.27 	Center for Entrepreneurial Facilitation. 
7.28 	Funds available under this paragraph must 
7.29 	be used to provide entrepreneur and small 
7.30 	business development direct professional 
7.31 	business assistance services in the following 
7.32 	counties in Minnesota: Blue Earth, Brown, 
7.33 	Faribault, Le Sueur, Martin, Nicollet, Sibley, 
7.34 	Watonwan, and Waseca.  For the purposes of 
7.35 	this paragraph, "direct professional business 
8.1 	assistance services" must include, but is 
8.2 	not limited to, pre-venture assistance for 
8.3 	individuals considering starting a business. 
8.4 	This appropriation is not available until 
8.5 	the commissioner determines that an equal 
8.6 	amount is committed from nonstate sources. 
8.7 	Any balance in the first year does not cancel 
8.8 	and is available for expenditure in the second 
8.9 	year. Grant recipients shall report to the 
8.10 	commissioner by February 1 of each year 
8.11 	and include information on the number of 
8.12 	customers served in each county; the number 
8.13 	of businesses started, stabilized, or expanded; 
8.14 	the number of jobs created and retained; 
8.15 	and business success rates in each county. 
8.16 	By April 1 of each year, the commissioner 
8.17 	shall report the information submitted by 
8.18 	grant recipients to the chairs of the standing 
8.19 	committees of the house of representatives 
8.20 	and the senate having jurisdiction over 
8.21 	economic development issues. This is a 
8.22 	onetime appropriation. This language does 
8.23 	not expire.
8.24 	(o) $385,000 in fiscal year 2016 and 
8.25 	$385,000 in fiscal year 2017 are from the 
8.26 	workforce development fund for grants to 
8.27 	the Neighborhood Development Center. Of 
8.28 	this amount, $300,000 is for training, lending 
8.29 	and business services for aspiring business 
8.30 	owners, and expansion of services for 
8.31 	immigrants in suburban communities; and 
8.32 	$85,000 is for Neighborhood Development 
8.33 	Center model outreach and training activities 
8.34 	in greater Minnesota. This is a onetime 
8.35 	appropriation.

8.36	Subd. 3.Workforce Development
 		21,388,000
		17,621,000

9.1	Appropriations by Fund
	
9.2	General
	1,000,000
	1,000,000
	
9.3
9.4	Workforce 
Development
	20,388,000
	16,621,000
	
9.5 	(a) $3,283,000 each year is from the 
9.6 	workforce development fund for the adult 
9.7 	workforce development competitive grant 
9.8 	program. Of this amount, up to five percent 
9.9 	is for administration and monitoring of the 
9.10 	adult workforce development competitive 
9.11 	grant program. All grant awards shall be 
9.12 	for two consecutive years. Grants shall be 
9.13 	awarded in the first year.
9.14 	(b) $3,500,000 each year is from the 
9.15 	workforce development fund for the 
9.16 	Minnesota youth program under Minnesota 
9.17 	Statutes, sections 116L.56 and 116L.561.
9.18 	(c) $1,000,000 each year is from the 
9.19 	workforce development fund for the 
9.20 	youthbuild program under Minnesota 
9.21 	Statutes, sections 116L.361 to 116L.366.
9.22 	(d) $200,000 each year is from the workforce 
9.23 	development fund for a grant to Minnesota 
9.24 	Diversified Industries, Inc., to provide 
9.25 	progressive development and employment 
9.26 	opportunities for people with disabilities.
9.27 	(e) $2,848,000 each year is from the 
9.28 	workforce development fund for the youth 
9.29 	workforce development competitive grant 
9.30 	program. Of this amount, up to five percent 
9.31 	is for administration and monitoring of the 
9.32 	youth workforce development competitive 
9.33 	grant program. All grant awards shall be 
9.34 	for two consecutive years. Grants shall be 
9.35 	awarded in the first year.
10.1 	(f) $1,500,000 each year is from the 
10.2 	workforce development fund for a grant 
10.3 	to FastTRAC - Minnesota Adult Careers 
10.4 	Pathways Program for low-skilled, 
10.5 	low-income adults. Up to ten percent 
10.6 	of this appropriation may be used to 
10.7 	provide leadership, oversight, and technical 
10.8 	assistance services.
10.9 	(g) $650,000 each year is from the workforce 
10.10 	development fund for the Opportunities 
10.11 	Industrialization Center (OIC) programs. 
10.12 	Of this appropriation, $500,000 each year 
10.13 	shall be divided equally among the eligible 
10.14 	centers. Of this appropriation, $75,000 each 
10.15 	year is for the East Metro OIC in St. Paul 
10.16 	and $75,000 each year is for the Northwest 
10.17 	Indian OIC in Bemidji. This is a onetime 
10.18 	appropriation.
10.19 	(h) $850,000 each year is from the workforce 
10.20 	development fund for a grant to the 
10.21 	Minnesota Alliance of Boys and Girls Clubs 
10.22 	to administer a statewide project of youth jobs 
10.23 	skills development. This project, which may 
10.24 	have career guidance components, including 
10.25 	health and life skills, is to encourage, 
10.26 	train, and assist youth in job-seeking 
10.27 	skills, workplace orientation, and job-site 
10.28 	knowledge through coaching. This grant 
10.29 	requires a 25 percent match from nonstate 
10.30 	resources. This is a onetime appropriation.
10.31 	(i) $250,000 each year is from the general 
10.32 	fund for the publication, dissemination, 
10.33 	and use of labor market information under 
10.34 	Minnesota Statutes, section 116J.4011. 
11.1 	(j) $250,000 each year is from the general 
11.2 	fund for programs in the workforce service 
11.3 	areas to combine career and higher education 
11.4 	advising.
11.5 	(k) $250,000 each year is from the workforce 
11.6 	development fund for a grant to Big 
11.7 	Brothers Big Sisters of the Greater Twin 
11.8 	Cities for workforce readiness, employment 
11.9 	exploration, and skills development for youth 
11.10 	ages 12 to 21. The grant must serve youth 
11.11 	in the Twin Cities, central Minnesota and 
11.12 	southern Minnesota Big Brothers Big Sisters 
11.13 	chapters. This is a onetime appropriation.
11.14 	(l) $900,000 in fiscal year 2016 and 
11.15 	$1,100,000 in fiscal year 2017 are from the 
11.16 	workforce development fund for a grant to the 
11.17 	Minnesota High Tech Association to support 
11.18 	SciTechsperience, a program that supports 
11.19 	science, technology, engineering, and math 
11.20 	(STEM) internship opportunities for two- 
11.21 	and four-year college students in their field 
11.22 	of study. The internship opportunities 
11.23 	must match students with paid internships 
11.24 	within STEM disciplines at small, for-profit 
11.25 	companies located in the seven-county 
11.26 	metropolitan area, having fewer than 150 
11.27 	total employees; or at small or medium, 
11.28 	for-profit companies located outside of the 
11.29 	seven-county metropolitan area, having 
11.30 	fewer than 250 total employees. At least 200 
11.31 	students must be matched in the first year 
11.32 	and at least 250 students must be matched in 
11.33 	the second year. Selected hiring companies 
11.34 	shall receive from the grant 50 percent of the 
11.35 	wages paid to the intern, capped at $2,500 
11.36 	per intern. The program must work toward 
12.1 	increasing the participation among women or 
12.2 	other underserved populations.
12.3 	(m) $500,000 each year is from the workforce 
12.4 	development fund for a grant to Resource, 
12.5 	Inc. to provide low-income individuals 
12.6 	career education and job skills training that 
12.7 	are fully integrated with chemical and mental 
12.8 	health services.
12.9 	(n) $140,000 each year is from the workforce 
12.10 	development fund for a grant to the St. 
12.11 	Cloud Area Somali Salvation Organization 
12.12 	for youth development and crime prevention 
12.13 	activities. Grant funds may be used to 
12.14 	train and place mentors in elementary and 
12.15 	secondary schools; for athletic, social, 
12.16 	and other activities to foster leadership 
12.17 	development; to provide a safe place for 
12.18 	participating youth to gather after school, on 
12.19 	weekends, and on holidays; and activities to 
12.20 	improve the organizational and job readiness 
12.21 	skills of participating youth.
12.22 	(o) $200,000 in fiscal year 2016 is from the 
12.23 	workforce development fund for the uniform 
12.24 	outcome report card requirements under 
12.25 	Minnesota Statutes, section 116L.98. This is 
12.26 	a onetime appropriation.
12.27 	(p) $500,000 in fiscal year 2016 and 
12.28 	$500,000 in fiscal year 2017 are from the 
12.29 	general fund for job training grants under 
12.30 	Minnesota Statutes, section 116L.42.
12.31 	(q) $2,000,000 in fiscal year 2016 is 
12.32 	from the workforce development fund for 
12.33 	adult workforce employment and training 
12.34 	activities administered by workforce service 
12.35 	areas. Funds available under this paragraph 
13.1 	must be used by workforce service areas 
13.2 	in the same manner as provided for under 
13.3 	Public Law 113-128, sections 133 and 
13.4 	134. Of the amount available under this 
13.5 	paragraph, $500,000 is for workforce service 
13.6 	area number 1, $1,000,000 is for workforce 
13.7 	service area number 2, and $500,000 is for 
13.8 	workforce service area number 6. This is a 
13.9 	onetime appropriation.
13.10 	(r) $517,000 in fiscal year 2016 is from the 
13.11 	workforce development fund for a grant 
13.12 	to YWCA St. Paul for training and job 
13.13 	placement assistance, including commercial 
13.14 	driver's license training, through the job 
13.15 	placement and retention program. This is a 
13.16 	onetime appropriation.
13.17 	(s) $450,000 in fiscal year 2016 and $450,000 
13.18 	in fiscal year 2017 are from the workforce 
13.19 	development fund for performance grants 
13.20 	under Minnesota Statutes, section 116J.8747, 
13.21 	to Twin Cities RISE! to provide training to 
13.22 	hard-to-train individuals. This is a onetime 
13.23 	appropriation.
13.24 	(t) $350,000 in fiscal year 2016 and $350,000 
13.25 	in fiscal year 2017 are from the workforce 
13.26 	development fund for the urban initiative 
13.27 	loan program in Minnesota Statutes, section 
13.28 	116M.18. This is a onetime appropriation.
13.29 	(u) $250,000 in fiscal year 2016 is from 
13.30 	the workforce development fund for the 
13.31 	foreign-trained health care professionals 
13.32 	grant program modeled after the pilot 
13.33 	program conducted under Laws 2006, 
13.34 	chapter 282, article 11, section 2, subdivision 
13.35 	12, to encourage state licensure of 
14.1 	foreign-trained health care professionals, 
14.2 	including: physicians, with preference given 
14.3 	to primary care physicians who commit 
14.4 	to practicing for at least five years after 
14.5 	licensure in underserved areas of the state; 
14.6 	nurses; dentists; pharmacists; mental health 
14.7 	professionals; and other allied health care 
14.8 	professionals. The commissioner must 
14.9 	collaborate with health-related licensing 
14.10 	boards and Minnesota workforce centers to 
14.11 	award grants to foreign-trained health care 
14.12 	professionals sufficient to cover the actual 
14.13 	costs of taking a course to prepare health 
14.14 	care professionals for required licensing 
14.15 	examinations and the fee for the state 
14.16 	licensing examinations. When awarding 
14.17 	grants, the commissioner must consider the 
14.18 	following factors:
14.19 	(1) whether the recipient's training involves 
14.20 	a medical specialty that is in high demand in 
14.21 	one or more communities in the state;
14.22 	(2) whether the recipient commits to 
14.23 	practicing in a designated rural area or an 
14.24 	underserved urban community, as defined in 
14.25 	Minnesota Statutes, section 144.1501;
14.26 	(3) whether the recipient's language skills 
14.27 	provide an opportunity for needed health care 
14.28 	access for underserved Minnesotans; and
14.29 	(4) any additional criteria established by the 
14.30 	commissioner.
14.31 	This is a onetime appropriation and is 
14.32 	available until June 30, 2019.
14.33 	(v) $800,000 in fiscal year 2016 is from 
14.34 	the workforce development fund for 
14.35 	the customized training program for 
15.1 	manufacturing industries under Minnesota 
15.2 	Statutes, section 116L.65. This is a onetime 
15.3 	appropriation and is available in either year 
15.4 	of the biennium. Of this amount:
15.5 	(1) $350,000 is for a grant to Central Lakes 
15.6 	College for the purposes of this paragraph;
15.7 	(2) $250,000 is for Minnesota West 
15.8 	Community and Technical College for the 
15.9 	purposes of this paragraph; and
15.10 	(3) $200,000 is for South Central College for 
15.11 	the purposes of this paragraph.
15.12 	(w) $200,000 in fiscal year 2016 is from the 
15.13 	workforce development fund for a grant to 
15.14 	the UMMAH Project, Inc. to develop and 
15.15 	implement a pilot program to provide Somali 
15.16 	youth development and crime prevention 
15.17 	activities including, but not limited to:
15.18 	(1) mentoring for Somali youth;
15.19 	(2) promoting social and other activities to 
15.20 	foster youth development and to provide a 
15.21 	safe place for participating youth to gather;
15.22 	(3) leadership training through development 
15.23 	of a youth leadership council to assist and 
15.24 	prepare Somali youth to be active and 
15.25 	culturally vibrant leaders in building safe and 
15.26 	sustainable Somali communities; 
15.27 	(4) collaborating with an organization to 
15.28 	provide college and job readiness information 
15.29 	technology skills for Somali youth; and
15.30 	(5) planning for a center for Somali youth and 
15.31 	families focused on culturally appropriate 
15.32 	workforce development, health, education, 
15.33 	recreation, and social programs within the 
15.34 	community. This is a onetime appropriation.

16.1	Subd. 4.General Support Services
 		1,362,000
		1,362,000
	
16.2 	(a) $875,000 each year is for the Olmstead 
16.3 	Implementation Office.
16.4 	(b) $150,000 in fiscal year 2016 is 
16.5 	appropriated from the energy fund 
16.6 	account established in Minnesota Statutes, 
16.7 	section 116C.779, to the commissioner of 
16.8 	employment and economic development for 
16.9 	the purpose of conducting the public power 
16.10 	authority study in article 11.

16.11	Subd. 5.Minnesota Trade Office
 		1,972,000
		1,972,000
	
16.12 	(a) $300,000 each year is for the STEP grants 
16.13 	in Minnesota Statutes, section 116J.979.
16.14 	(b) $180,000 each year is for the Invest 
16.15 	Minnesota Marketing Initiative in Minnesota 
16.16 	Statutes, section 116J.9781.

16.17	Subd. 6.Vocational Rehabilitation
 		29,319,000
		29,319,000

16.18	Appropriations by Fund
	
16.19	General
	17,489,000
	17,489,000
	
16.20
16.21	Workforce 
Development
	11,830,000
	11,830,000
	
16.22 	(a) $10,800,000 each year is from the general 
16.23 	fund for the state's vocational rehabilitation 
16.24 	program under Minnesota Statutes, chapter 
16.25 	268A.
16.26 	(b) $2,261,000 each year is from the general 
16.27 	fund for grants to centers for independent 
16.28 	living under Minnesota Statutes, section 
16.29 	268A.11.
16.30 	(c) $2,873,000 each year from the general 
16.31 	fund and $10,830,000 each year from the 
16.32 	workforce development fund is for extended 
16.33 	employment services for persons with 
16.34 	severe disabilities under Minnesota Statutes, 
17.1 	section 268A.15. For the allocation of funds 
17.2 	under this paragraph and for the purposes 
17.3 	of sections 268A.03, clause (1); 268A.06; 
17.4 	268A.085; and 268A.15, a "community 
17.5 	rehabilitation provider" or "facility" means a 
17.6 	nonprofit or public entity that provides at least 
17.7 	one extended employment subprogram for 
17.8 	persons with the most significant disabilities.
17.9 	(d) $1,555,000 each year is from the general 
17.10 	fund for grants to programs that provide 
17.11 	employment support services to persons with 
17.12 	mental illness under Minnesota Statutes, 
17.13 	sections 268A.13 and 268A.14.
17.14 	(e) $1,000,000 each year is from the 
17.15 	workforce development fund for grants 
17.16 	under Minnesota Statutes, section 268A.16, 
17.17 	for employment services for persons, 
17.18 	including transition-aged youth, who are 
17.19 	deaf, deafblind, or hard of hearing.

17.20	Subd. 7.Services for the Blind
 		5,925,000
		5,925,000

17.21	Subd. 8.Competitive grant limitations
 					
17.22 	An organization that receives a direct 
17.23 	appropriation under this section is not eligible 
17.24 	to participate in competitive grant programs 
17.25 	under this section during the fiscal years in 
17.26 	which the direct appropriations are received.

17.27	Subd. 9.Broadband development
 		8,250,000
		250,000
	
17.28 	(a) $250,000 each year is for the Broadband 
17.29 	Development Office.
17.30 	(b) $8,000,000 the first year is from 
17.31 	the general fund for deposit in the 
17.32 	border-to-border broadband fund account 
17.33 	created under Minnesota Statutes, section 
17.34 	116J.396, for the purposes provided in 
18.1 	Minnesota Statutes, section 116J.395. This 
18.2 	is a onetime appropriation and is available 
18.3 	until June 30, 2019.

18.4	Sec. 4. HOUSING FINANCE AGENCY

18.5	Subdivision 1.Total Appropriation
 	$
	43,775,000
	$
	43,775,000
	
18.6 	(a) The amounts that may be spent for 
18.7 	each purpose are specified in the following 
18.8 	subdivisions.
18.9 	(b) Unless otherwise specified, this 
18.10 	appropriation is for transfer to the housing 
18.11 	development fund for the programs specified 
18.12 	in this section. Except as otherwise indicated, 
18.13 	this transfer is part of the agency's permanent 
18.14 	budget base.
18.15 	(c) The Housing Finance Agency must make 
18.16 	continuous improvements to its ongoing 
18.17 	efforts to reduce the racial and ethnic 
18.18 	inequalities in home-ownership rates and 
18.19 	must seek opportunities to deploy increasing 
18.20 	levels of resources toward these efforts.

18.21	Subd. 2.Challenge Program
 		10,425,000
		10,425,000
	
18.22 	(a) This appropriation is from the general 
18.23 	fund for transfer to the housing development 
18.24 	fund for the economic development and 
18.25 	housing challenge program under Minnesota 
18.26 	Statutes, section 462A.33. The agency must 
18.27 	continue to strengthen its efforts to address 
18.28 	the disparity rate between white households 
18.29 	and indigenous American Indians and 
18.30 	communities of color.
18.31 	(b) Of this amount, $5,213,000 each year is 
18.32 	for loans and grants for workforce housing 
18.33 	in communities that:
19.1 	(1) have an average vacancy rate for rental 
19.2 	housing of five percent or less for the 
19.3 	preceding two years;
19.4 	(2) propose to build market rate residential 
19.5 	rental properties that do not have federal or 
19.6 	state law requirements for income limits and 
19.7 	that are not proposing to use federal, state, or 
19.8 	local flood recovery assistance;
19.9 	(3) are located outside of the metropolitan 
19.10 	area, as defined in Minnesota Statutes, 
19.11 	section 473.121, subdivision 2, and have a 
19.12 	population greater than 500 people; and
19.13 	(4) have a written statement provided by a 
19.14 	business or businesses located in the city or 
19.15 	within 25 miles of the city where the project 
19.16 	is proposed that employs a minimum of 20 
19.17 	full-time equivalent employees in aggregate 
19.18 	indicating that the lack of available rental 
19.19 	housing has impeded their ability to recruit 
19.20 	and hire employees.
19.21 	On July 15, 2017, any remaining balance of 
19.22 	appropriations under this paragraph that are 
19.23 	unobligated on July 1, 2017, is transferred 
19.24 	from the housing development fund to the 
19.25 	general fund. By January 15 of each fiscal 
19.26 	year, the commissioner must submit a report 
19.27 	to the chairs and ranking minority members 
19.28 	of the senate and house of representatives 
19.29 	committees having jurisdiction over 
19.30 	housing finance and economic development 
19.31 	specifying the selection criteria of awarding 
19.32 	grants and loans, the projects that received 
19.33 	funding under this paragraph, and how the 
19.34 	funds are being used.
20.1 	(c) Notwithstanding Minnesota Statutes, 
20.2 	section 462A.33, loans and grants made in 
20.3 	paragraph (b) for workforce housing shall not 
20.4 	be subject to the requirements in Minnesota 
20.5 	Statutes, section 462A.33, subdivision 3 or 
20.6 	5, except that preference may be given to 
20.7 	proposals that include contributions from 
20.8 	nonstate resources for the greatest portion of 
20.9 	the total development cost. Notwithstanding 
20.10 	Minnesota Statutes, section 462A.33, the 
20.11 	limitations on return of eligible mortgagors 
20.12 	under Minnesota Statutes, section 462A.03, 
20.13 	subdivision 13, do not apply to loans and 
20.14 	grants under paragraph (b) or loans or 
20.15 	grants for targeted workforce housing under 
20.16 	this section. Notwithstanding any other 
20.17 	law, nothing shall prevent the award of 
20.18 	grants or loans in this section from being 
20.19 	used to finance new modular homes, new 
20.20 	manufactured homes, and new manufactured 
20.21 	homes on leased land or in a manufactured 
20.22 	home park.
20.23 	(d) Of this amount, $2,606,000 each year 
20.24 	is for economic development and housing 
20.25 	challenge program grants and loans for 
20.26 	housing projects outside of the metropolitan 
20.27 	area, as defined in Minnesota Statutes, 
20.28 	section 473.121, subdivision 2.
20.29 	(e) Of this amount, $2,606,000 each year 
20.30 	is for economic development and housing 
20.31 	challenge program grants and loans for 
20.32 	housing projects in the metropolitan area 
20.33 	as defined in Minnesota Statutes, section 
20.34 	473.121, subdivision 2.
21.1 	(f) Priority shall be given to programs and 
21.2 	projects under this subdivision that are land 
21.3 	trust programs and programs that work in 
21.4 	coordination with a land trust program.
21.5 	(g) The commissioner of housing finance 
21.6 	must increase administrative support offered 
21.7 	by the agency to assist smaller communities 
21.8 	to improve access to grants and loans 
21.9 	made using funds from the economic 
21.10 	development and housing challenge program 
21.11 	and to create and implement a streamlined 
21.12 	review and awards process that allows 
21.13 	smaller communities to use the resources 
21.14 	available to them to complete applications 
21.15 	and comply with program requirements. 
21.16 	The commissioner must increase outreach 
21.17 	to communities outside the metropolitan 
21.18 	area that have low vacancy rates and 
21.19 	report back on the progress of assisting 
21.20 	these communities to the chairs and 
21.21 	ranking minority members of the standing 
21.22 	committees of the senate and house of 
21.23 	representatives having jurisdiction over 
21.24 	housing finance and economic development 
21.25 	by December 1, 2015.

21.26	Subd. 3.Housing Trust Fund
 		10,276,000
		10,276,000
	
21.27 	This appropriation is for deposit in the 
21.28 	housing trust fund account created under 
21.29 	Minnesota Statutes, section 462A.201, and 
21.30 	may be used for the purposes provided in 
21.31 	that section. To the extent that these funds 
21.32 	are used for the acquisition of housing, the 
21.33 	agency shall give priority among comparable 
21.34 	projects to projects that focus on creating 
21.35 	safe and stable housing for homeless youth 
22.1 	or projects that provide housing to trafficked 
22.2 	women and children.

22.3	Subd. 4.Rental Assistance for Mentally Ill
 		2,838,000
		2,838,000
	
22.4 	This appropriation is for the rental housing 
22.5 	assistance program under Minnesota 
22.6 	Statutes, section 462A.2097.

22.7	Subd. 5.Family Homeless Prevention
 		7,862,000
		7,862,000
	
22.8 	This appropriation is for the family homeless 
22.9 	prevention and assistance programs under 
22.10 	Minnesota Statutes, section 462A.204.

22.11	Subd. 6.Home Ownership Assistance Fund
 		830,000
		830,000
	
22.12 	This appropriation is for the home ownership 
22.13 	assistance program under Minnesota 
22.14 	Statutes, section 462A.21, subdivision 8. 
22.15 	The agency shall continue to strengthen 
22.16 	its efforts to address the disparity gap in 
22.17 	the homeownership rate between white 
22.18 	households and indigenous American Indians 
22.19 	and communities of color.

22.20	Subd. 7.Affordable Rental Investment Fund
 		4,218,000
		4,218,000
	
22.21 	(a) This appropriation is for the affordable 
22.22 	rental investment fund program under 
22.23 	Minnesota Statutes, section 462A.21, 
22.24 	subdivision 8b, to finance the acquisition, 
22.25 	rehabilitation, and debt restructuring of 
22.26 	federally assisted rental property and for 
22.27 	making equity takeout loans under Minnesota 
22.28 	Statutes, section 462A.05, subdivision 39.
22.29 	(b) The owner of federally assisted rental 
22.30 	property must agree to participate in 
22.31 	the applicable federally assisted housing 
22.32 	program and to extend any existing 
22.33 	low-income affordability restrictions on the 
22.34 	housing for the maximum term permitted. 
23.1 	The owner must also enter into an agreement 
23.2 	that gives local units of government, 
23.3 	housing and redevelopment authorities, 
23.4 	and nonprofit housing organizations the 
23.5 	right of first refusal if the rental property 
23.6 	is offered for sale. Priority must be given 
23.7 	among comparable federally assisted rental 
23.8 	properties to properties with the longest 
23.9 	remaining term under an agreement for 
23.10 	federal assistance. Priority must also be 
23.11 	given among comparable rental housing 
23.12 	developments to developments that are or 
23.13 	will be owned by local government units, a 
23.14 	housing and redevelopment authority, or a 
23.15 	nonprofit housing organization.
23.16 	(c) This appropriation also may be used to 
23.17 	finance the acquisition, rehabilitation, and 
23.18 	debt restructuring of existing supportive 
23.19 	housing properties. For purposes of this 
23.20 	subdivision, "supportive housing" means 
23.21 	affordable rental housing with links to 
23.22 	services necessary for individuals, youth, and 
23.23 	families with children to maintain housing 
23.24 	stability.

23.25	Subd. 8.Housing Rehabilitation
 		2,772,000
		2,772,000
	
23.26 	This appropriation is for housing assistance 
23.27 	for the rehabilitation of single-family homes 
23.28 	under the housing rehabilitation program 
23.29 	under Minnesota Statutes, section 462A.05, 
23.30 	subdivision 14.

23.31	Subd. 9.Rental Rehabilitation
 		3,138,000
		3,138,000
	
23.32 	This appropriation is for the rental housing 
23.33 	rehabilitation loan program under Minnesota 
23.34 	Statutes, section 462A.05, subdivision 14.

24.1
24.2	Subd. 10.Homeownership Education, 
Counseling, and Training
 		791,000
		791,000
	
24.3 	This appropriation is for the homeownership 
24.4 	education, counseling, and training program 
24.5 	under Minnesota Statutes, section 462A.209. 
24.6 	Priority may be given to funding programs 
24.7 	that are aimed at culturally specific groups 
24.8 	who are providing services to members of 
24.9 	their communities.

24.10	Subd. 11.Capacity Building Grants
 		375,000
		375,000
	
24.11 	This appropriation is for nonprofit capacity 
24.12 	building grants under Minnesota Statutes, 
24.13 	section 462A.21, subdivision 3b.

24.14	Subd. 12.Grants
 		250,000
		250,000
	
24.15 	(a) $250,000 in fiscal year 2016 and $250,000 
24.16 	in fiscal year 2017 are from the general fund 
24.17 	to the commissioner of housing finance 
24.18 	for the competitive grants program under 
24.19 	paragraph (b).
24.20 	(b) The commissioner of housing finance 
24.21 	shall establish a competitive grant program 
24.22 	to serve women and children at risk of being 
24.23 	homeless who have been victims of domestic 
24.24 	violence, sexual assault, human trafficking, 
24.25 	international abusive marriage, or a forced 
24.26 	marriage. The commissioner shall award 
24.27 	grants to nonprofits that have a plan to 
24.28 	partner with an organization that can provide 
24.29 	appropriate services. Priority shall be given 
24.30 	to programs that can provide linguistically 
24.31 	and culturally appropriate services and that 
24.32 	have the capacity to serve immigrant women 
24.33 	and children. At least one grant must be to 
24.34 	a program that serves an area outside of the 
25.1 	seven-county metropolitan area. The grant 
25.2 	recipients must:
25.3 	(1) provide rental assistance to pregnant 
25.4 	women or women who have custody over a 
25.5 	minor child at risk of being homeless and 
25.6 	who are victims of domestic violence, sexual 
25.7 	assault, human trafficking, an international 
25.8 	abusive marriage, or a forced marriage;
25.9 	(2) require the participant to pay 30 percent 
25.10 	of the participant's income toward the rent;
25.11 	(3) allow the families to choose their own 
25.12 	housing, including single-family homes, 
25.13 	townhomes, and apartments;
25.14 	(4) give priority to families with more than 
25.15 	four children and to heads of households who 
25.16 	are recent immigrants or refugees and who 
25.17 	have limited English proficiency;
25.18 	(5) provide rental assistance for up to 24 
25.19 	months;
25.20 	(6) provide linguistically and culturally 
25.21 	appropriate advocacy and supportive services 
25.22 	or partner with a program that can provide 
25.23 	appropriate services; and
25.24 	(7) require participants in the program to 
25.25 	actively seek employment or participate in 
25.26 	activities that will assist them in gaining 
25.27 	future employment.
25.28 	(c) For the purposes of this subdivision, 
25.29 	"supportive services" may include 
25.30 	educational, social, legal advocacy, child 
25.31 	care, employment assistance, money 
25.32 	management, mental health, health care, or 
25.33 	other services.
26.1 	(d) By July 15, 2015, the remaining balance 
26.2 	of appropriations in Laws 2012, First Special 
26.3 	Session chapter 1, article 1, section 7, for 
26.4 	the economic development and housing 
26.5 	challenge program that is unobligated to 
26.6 	loans to homeowners or rental property 
26.7 	owners as of June 30, 2015, estimated to be 
26.8 	$400,000, is canceled to the general fund.

26.9	Sec. 5. EXPLORE MINNESOTA TOURISM
 	$
	14,888,000
	$
	15,888,000
	
26.10 	(a) To develop maximum private sector 
26.11 	involvement in tourism, $500,000 in fiscal 
26.12 	year 2016 and $500,000 in fiscal year 2017 
26.13 	must be matched by Explore Minnesota 
26.14 	Tourism from nonstate sources. Each $1 of 
26.15 	state incentive must be matched with $6 of 
26.16 	private sector funding. "Cash match" means 
26.17 	revenue to the state or documented cash 
26.18 	expenditures directly expended to support 
26.19 	Explore Minnesota Tourism programs. Up 
26.20 	to one-half of the private sector contribution 
26.21 	may be in-kind or soft match. The incentive 
26.22 	in fiscal year 2016 shall be based on fiscal 
26.23 	year 2015 private sector contributions. The 
26.24 	incentive in fiscal year 2017 shall be based on 
26.25 	fiscal year 2016 private sector contributions. 
26.26 	This incentive is ongoing.
26.27 	(b) Funding for the marketing grants is 
26.28 	available either year of the biennium.
26.29 	(c) Of the amount appropriated under this 
26.30 	section, $30,000 each year is for Mille Lacs 
26.31 	Lake tourism promotion. This is a onetime 
26.32 	appropriation.
26.33 	(d) Except as provided otherwise, 
26.34 	appropriations made under this section are 
27.1 	available until expended. Funds unexpended 
27.2 	on June 30 of each odd-numbered year must 
27.3 	be deposited in a special marketing account 
27.4 	for use by Explore Minnesota Tourism for 
27.5 	additional marketing activities.

27.6
27.7	Sec. 6. DEPARTMENT OF LABOR AND 
INDUSTRY

27.8	Subdivision 1.Total Appropriation
 	$
	27,530,000
	$
	29,478,000

27.9	Appropriations by Fund
	
27.10		2016
	2017
	
27.11	General
	1,630,000
	1,578,000
	
27.12
27.13	Workers' 
Compensation
	24,871,000
	26,871,000
	
27.14
27.15	Workforce 
Development
	1,029,000
	1,029,000
	
27.16 	The amounts that may be spent for each 
27.17 	purpose are specified in the following 
27.18 	subdivisions.

27.19	Subd. 2.Workers' Compensation 
 		14,678,000
		16,678,000
	
27.20 	(a) This appropriation is from the workers' 
27.21 	compensation fund.
27.22 	(b)(1) $4,000,000 in fiscal year 2016 and 
27.23 	$6,000,000 in fiscal year 2017 are for workers' 
27.24 	compensation system upgrades. The base 
27.25 	appropriation for this purpose is $3,000,000 
27.26 	in fiscal year 2018 and $3,000,000 in fiscal 
27.27 	year 2019. The base appropriation for fiscal 
27.28 	year 2020 and beyond is zero.
27.29 	(2) This appropriation includes funds for 
27.30 	information technology project services 
27.31 	and support subject to the provisions of 
27.32 	Minnesota Statutes, section 16E.0466. 
27.33 	Any ongoing information technology costs 
27.34 	must be incorporated into the service level 
27.35 	agreement and must be paid to the Office 
27.36 	of MN.IT Services by the commissioner 
28.1 	of labor and industry under the rates and 
28.2 	mechanism specified in that agreement.

28.3	Subd. 3.Labor Standards and Apprenticeship
 		2,659,000
		2,607,000

28.4	Appropriations by Fund
	
28.5	General
	1,630,000
	1,578,000
	
28.6
28.7	Workforce 
Development
	1,029,000
	1,029,000
	
28.8 	(a) $766,000 each year is from the 
28.9 	general fund for the labor standards and 
28.10 	apprenticeship program.
28.11 	(b) $150,000 each year is from the general 
28.12 	fund for a child labor initiative for expanding 
28.13 	education and outreach to high schools and 
28.14 	targeted industries to ensure minors entering 
28.15 	the workforce are safe.
28.16 	(c) $879,000 each year is from the workforce 
28.17 	development fund for the apprenticeship 
28.18 	program under Minnesota Statutes, chapter 
28.19 	178, and includes $100,000 each year for 
28.20 	labor education and advancement program 
28.21 	grants and to expand and promote registered 
28.22 	apprenticeship training in nonconstruction 
28.23 	trade programs.
28.24 	(d) $150,000 each year is from the workforce 
28.25 	development fund for prevailing wage 
28.26 	enforcement.
28.27 	(e) $100,000 each year is from the general 
28.28 	fund for wage enforcement.
28.29 	(f) $100,000 each year is from the general 
28.30 	fund for compliance and enforcement 
28.31 	activities under Laws 2014, chapter 239, 
28.32 	article 4, section 10.
28.33 	(g) $409,000 in fiscal year 2016 and $399,000 
28.34 	in fiscal year 2017 are from the general fund 
29.1 	for the identification of competency standards 
29.2 	under Minnesota Statutes, section 175.45.
29.3 	(h) $105,000 in fiscal year 2016 and $63,000 
29.4 	in fiscal year 2017 are from the general fund 
29.5 	for implementation and administration of 
29.6 	legislation styled as H.F. No. 1027 if enacted 
29.7 	during the 2015 legislative session.

29.8	Subd. 4.Workplace Safety
 		4,154,000
		4,154,000
	
29.9 	This appropriation is from the workers' 
29.10 	compensation fund.

29.11	Subd. 5.General Support
 		6,039,000
		6,039,000
	
29.12 	This appropriation is from the workers' 
29.13 	compensation fund.

29.14
29.15	Sec. 7. BUREAU OF MEDIATION 
SERVICES
 	$
	1,733,000
	$
	1,733,000
	
29.16 	$68,000 each year is for grants to area labor 
29.17 	management committees. Grants may be 
29.18 	awarded for a 12-month period beginning 
29.19 	July 1 each year. Any unencumbered balance 
29.20 	remaining at the end of the first year does not 
29.21 	cancel but is available for the second year.

29.22
29.23	Sec. 8. WORKERS' COMPENSATION 
COURT OF APPEALS
 	$
	1,703,000
	$
	1,703,000
	
29.24 	This appropriation is from the workers' 
29.25 	compensation fund.

29.26	Sec. 9. DEPARTMENT OF COMMERCE

29.27	Subdivision 1.Total Appropriation
 	$
	67,140,000
	$
	63,066,000

29.28	Appropriations by Fund
	
29.29		2016
	2017
	
29.30	General
	30,397,000
	25,623,000
	
29.31	Special Revenue
	34,940,000
	35,640,000
	
30.1	Petroleum Tank
	1,052,000
	1,052,000
	
30.2
30.3	Workers' 
Compensation
	751,000
	751,000
	
30.4 	The amounts that may be spent for each 
30.5 	purpose are specified in the following 
30.6 	subdivisions.

30.7	Subd. 2.Financial Institutions
 		4,885,000
		4,885,000
	
30.8 	$142,000 each year is from the general fund 
30.9 	for the regulation of mortgage originators 
30.10 	and servicers under Minnesota Statutes, 
30.11 	chapters 58 and 58A.

30.12
30.13	Subd. 3.Petroleum Tank Release 
Compensation Board
 		1,052,000
		1,052,000
	
30.14 	This appropriation is from the petroleum 
30.15 	tank fund.

30.16	Subd. 4.Administrative Services 
 		6,040,000 
		5,540,000
	
30.17 	(a) $500,000 in fiscal year 2016 is 
30.18 	from the general fund for a grant for a 
30.19 	pay-for-performance contract with a vendor 
30.20 	who will facilitate the return of abandoned 
30.21 	property to owners. The vendor must receive 
30.22 	up to seven percent of the value of the 
30.23 	abandoned property, up to $500,000, when 
30.24 	such abandoned property is returned to its 
30.25 	owner. This is a onetime appropriation.
30.26 	(b) $100,000 each year is for support of 
30.27 	broadband development.

30.28	Subd. 5.Telecommunications
 		1,873,000
		1,798,000

30.29	Appropriations by Fund
	
30.30	General
	633,000
	558,000
	
30.31	Special Revenue
	1,240,000
	1,240,000
	
30.32 	$1,240,000 in fiscal year 2016 and $1,240,000 
30.33 	in fiscal year 2017 are appropriated to the 
31.1 	commissioner from the telecommunication 
31.2 	access fund for the following transfers:
31.3 	(1) $800,000 in fiscal year 2016 and $800,000 
31.4 	in fiscal year 2017 are to the commissioner 
31.5 	of human services to supplement the ongoing 
31.6 	operational expenses of the Commission 
31.7 	of Deaf, DeafBlind, and Hard-of-Hearing 
31.8 	Minnesotans;
31.9 	(2) $290,000 in fiscal year 2016 and 
31.10 	$290,000 in fiscal year 2017 are to the 
31.11 	chief information officer for the purpose of 
31.12 	coordinating technology accessibility and 
31.13 	usability;
31.14 	(3) $100,000 in fiscal year 2016 and $100,000 
31.15 	in fiscal year 2017 are to the Legislative 
31.16 	Coordinating Commission for captioning of 
31.17 	legislative coverage. This transfer is subject 
31.18 	to Minnesota Statutes, section 16A.281; and
31.19 	(4) $50,000 in fiscal year 2016 and $50,000 
31.20 	in fiscal year 2017 are to the Office of MN.IT 
31.21 	Services for a consolidated access fund to 
31.22 	provide grants to other state agencies related 
31.23 	to accessibility of their Web-based services.

31.24	Subd. 6.Enforcement
 		4,340,000
		4,211,000

31.25	Appropriations by Fund
	
31.26	General
	4,142,000
	4,013,000.
	
31.27
31.28	Workers' 
Compensation
	198,000
	198,000
	
31.29 	$162,000 in fiscal year 2016 and $33,000 in 
31.30 	fiscal year 2017 are from the general fund 
31.31 	for rulemaking and administration under 
31.32 	Minnesota Statutes, section 80A.461.

31.33	Subd. 7.Energy Resources
 		40,035,000
		41,665,000

32.1	Appropriations by Fund
	
32.2	General
	6,335,000
	7,265,000.
	
32.3	Special Revenue
	33,700,000
	34,400,000
	
32.4 	(a) $22,000,000 in fiscal year 2016 and 
32.5 	$23,000,000 in fiscal year 2017 are from 
32.6 	the energy fund account established in 
32.7 	Minnesota Statutes, section 116C.779, for 
32.8 	the payment of energy rebates and incentives 
32.9 	to eligible applicants under Minnesota 
32.10 	Statutes, sections 116C.779, subdivision 2, 
32.11 	216C.418, and 216C.419, and to reimburse 
32.12 	the reasonable costs of the Department of 
32.13 	Commerce to administer those programs.
32.14 	(b) $400,000 in fiscal year 2016 and $400,000 
32.15 	in fiscal year 2017 are from the energy fund 
32.16 	account under Minnesota Statutes, section 
32.17 	116C.779, for a grant to a Minnesota-based 
32.18 	nonprofit with demonstrated expertise and 
32.19 	capability in energy efficiency, energy 
32.20 	technology research, and conservation 
32.21 	improvement program delivery to establish 
32.22 	and operate an energy technology business 
32.23 	accelerator. The grant recipient must match 
32.24 	at least $100,000 of the grant amount each 
32.25 	year with cash or in-kind contributions. Any 
32.26 	balance remaining in fiscal year 2016 does 
32.27 	not cancel, but is available in fiscal year 2017.
32.28 	(c) The accelerator established using grant 
32.29 	funds in paragraph (b) shall identify, research, 
32.30 	test, evaluate, and incubate innovative energy 
32.31 	technologies, systems, and platforms that 
32.32 	may be the basis for new cost-effective 
32.33 	programs or to improve existing programs 
32.34 	offered by public, municipal, and cooperative 
32.35 	utilities subject to Minnesota Statutes, 
33.1 	section 216B.241. The grant recipient 
33.2 	shall consult with experts from Minnesota 
33.3 	utilities, the Department of Commerce, and 
33.4 	national energy institutions in the selection 
33.5 	of technologies to be evaluated, and, in order 
33.6 	to ensure independent evaluation, may not 
33.7 	accept funds or other consideration from 
33.8 	technology vendors. The technologies to be 
33.9 	evaluated may include but are not limited to 
33.10 	customer engagement platforms, building 
33.11 	and equipment design, data feedback 
33.12 	systems, and advanced metering and billing. 
33.13 	The focus of the accelerator must be on 
33.14 	energy technologies, systems, and platforms 
33.15 	developed by Minnesota and regionally 
33.16 	based companies, to the extent feasible, that 
33.17 	improve the efficiency of customer energy 
33.18 	use or utility infrastructure.
33.19 	(d) $3,000,000 in fiscal year 2016 and 
33.20 	$4,000,000 in fiscal year 2017 are from the 
33.21 	general fund for deposit in the energy fund 
33.22 	account established in Minnesota Statutes, 
33.23 	section 116C.779.
33.24 	(e) $5,000,000 in fiscal year 2016 and 
33.25 	$5,000,000 in fiscal year 2017 are from 
33.26 	the energy fund account established in 
33.27 	Minnesota Statutes, section 116C.779, for 
33.28 	the payment of rebates to eligible electric 
33.29 	vehicle owners under Minnesota Statutes, 
33.30 	section 216B.1616.
33.31 	(f) $6,000,000 in fiscal year 2016 and 
33.32 	$6,000,000 in fiscal year 2017 are from the 
33.33 	energy fund account established in Minnesota 
33.34 	Statutes, section 116C.779, subdivision 1, 
33.35 	for the purpose of awarding propane and 
34.1 	compressed natural gas vehicle rebates and 
34.2 	to pay the reasonable costs incurred by the 
34.3 	commissioner of commerce to administer 
34.4 	Minnesota Statutes, section 216C.391.
34.5 	(g) $61,000 in fiscal year 2016 is from the 
34.6 	general fund for deposit in the energy fund 
34.7 	account under Minnesota Statutes, section 
34.8 	116C.779.

34.9	Subd. 8.Insurance
 		3,915,000
		3,915,000

34.10	Appropriations by Fund
	
34.11	General
	3,362,000
	3,362,000
	
34.12
34.13	Workers' 
Compensation
	553,000
	553,000

34.14	Subd. 9.Transfers
 					
34.15 	(a) Notwithstanding Minnesota Statutes, 
34.16 	section 216C.416, of the amounts transferred 
34.17 	to the solar thermal system rebate account 
34.18 	in the special revenue fund in the state 
34.19 	treasury in calendar years 2014 and 2015, 
34.20 	$300,000 shall be transferred on July 1, 
34.21 	2015, to the energy fund account established 
34.22 	under Minnesota Statutes, section 116C.779, 
34.23 	and are appropriated to the commissioner 
34.24 	of commerce for the purpose of providing 
34.25 	energy conservation and weatherization 
34.26 	programs to low-income persons who 
34.27 	use propane as a heating fuel. The 
34.28 	commissioner of commerce shall disburse 
34.29 	the funds transferred in this section in a 
34.30 	manner consistent with the requirements 
34.31 	of the federal Low-Income Home Energy 
34.32 	Assistance Program under United States 
34.33 	Code, title 42, sections 8621 to 8630. This 
34.34 	is a onetime transfer.
35.1 	(b) The remaining balance of the 
35.2 	appropriation in Laws 2013, chapter 85, 
35.3 	article 1, section 13, subdivision 7, for grants 
35.4 	to install renewable energy equipment in 
35.5 	households under Minnesota Statutes 2013, 
35.6 	section 239.101, that is unobligated and 
35.7 	unexpended, and is estimated to be $61,000, 
35.8 	is canceled to the general fund on June 30, 
35.9 	2015. This paragraph is effective the day 
35.10 	following final enactment. 

35.11	Subd. 10.Propane Prepurchase
 		5,000,000
		0
	
35.12 	(a) $5,000,000 in fiscal year 2015 and 
35.13 	$5,000,000 in fiscal year 2016 are 
35.14 	appropriated from the general fund for the 
35.15 	purpose of prepurchasing propane under 
35.16 	Minnesota Statutes, section 216B.0951. 
35.17 	Notwithstanding Minnesota Statutes, section 
35.18 	216B.0951, subdivision 1, the commissioner 
35.19 	must expend all of the funds before 
35.20 	September 1 each year. Propane may not be 
35.21 	distributed to customers before October 1 
35.22 	each year.
35.23 	(b) The commissioner shall reserve 
35.24 	$5,000,000 each year from the federal 
35.25 	funds transferred to the state for use in the 
35.26 	2015-2016 and 2016-2017 heating seasons 
35.27 	under the Low-Income Home Energy 
35.28 	Assistance Program and transfer those 
35.29 	amounts to the general fund.

35.30	Sec. 10. PUBLIC UTILITIES COMMISSION
 	$
	5,553,000
	$
	5,441,000

35.31	Sec. 11. POLLUTION CONTROL AGENCY
 	$
	466,000
	$
	470,000
	
35.32 	$466,000 in fiscal year 2016 and $470,000 
35.33 	in fiscal year 2017 are from the energy fund 
36.1 	account established in Minnesota Statutes, 
36.2 	section 116C.779, subdivision 1, for the 
36.3 	purposes of completing the plan required 
36.4 	under Minnesota Statutes, section 216H.077. 
36.5 	This is a onetime appropriation.

36.6
36.7	Sec. 12. DEPARTMENT OF 
ADMINISTRATION
 	$
	92,000
	$
	0
	
36.8 	$92,000 in fiscal year 2016 is appropriated 
36.9 	from the energy fund account established in 
36.10 	Minnesota Statutes, section 116C.779, for 
36.11 	the purpose of completing the transfer of 
36.12 	functions study under article 11.

36.13 	ARTICLE 2
36.14 	JOBS AND ECONOMIC DEVELOPMENT

36.15 	Section 1. Minnesota Statutes 2014, section 116J.394, is amended to read:
36.16 	116J.394 DEFINITIONS.
36.17 	(a) For the purposes of sections 116J.394 to 116J.396, the following terms have 
36.18 	the meanings given them.
36.19 	(b) "Broadband" or "broadband service" has the meaning given in section 116J.39, 
36.20 	subdivision 1, paragraph (b).
36.21 	(c) "Broadband infrastructure" means networks of deployed telecommunications 
36.22 	equipment and technologies necessary to provide high-speed Internet access and other 
36.23 	advanced telecommunications services for end users.
36.24 	(d) "Commissioner" means the commissioner of employment and economic 
36.25 	development.
36.26 	(e) "Last-mile infrastructure" means broadband infrastructure that serves as the 
36.27 	final leg connecting the broadband service provider's network to the end-use customer's 
36.28 	on-premises telecommunications equipment.
36.29 	(f) "Middle-mile infrastructure" means broadband infrastructure that links a 
36.30 	broadband service provider's core network infrastructure to last-mile infrastructure.
36.31 	(g) "Political subdivision" means any county, city, town, school district, special 
36.32 	district or other political subdivision, or public corporation.
37.1 	(h) "Underserved areas" means areas of Minnesota in which households or businesses 
37.2 	lack access to wire-line broadband service at speeds that meet the state broadband goals of 
37.3 	ten to 20 megabits per second download and five to ten megabits per second upload.
37.4 	(i) "Unserved areas" means areas of Minnesota in which households or businesses 
37.5 	lack access to wire-line broadband service at speeds that meet a Federal Communications 
37.6 	Commission threshold of four megabits per second download and one megabit per second 
37.7 	upload, as defined in section 116J.39.

37.8 	Sec. 2. Minnesota Statutes 2014, section 116J.431, subdivision 1, is amended to read:
37.9 		Subdivision 1.Grant program established; purpose. (a) The commissioner 
37.10 	shall make grants to counties or cities to provide up to 50 percent of the capital costs of 
37.11 	public infrastructure necessary for an eligible economic development project, unless the 
37.12 	applicant requests a lesser amount. The county or city receiving a grant must provide for 
37.13 	the remainder of the costs of the project, either in cash or in kind. In-kind contributions 
37.14 	may include the value of site preparation other than the public infrastructure needed 
37.15 	for the project.
37.16 	(b) The purpose of the grants made under this section is to keep or enhance jobs in 
37.17 	the area, increase the tax base, or to expand or create new economic development.

37.18 	Sec. 3. Minnesota Statutes 2014, section 116J.431, subdivision 6, is amended to read:
37.19 		Subd. 6.Maximum grant amount. A county or city may receive no more than 
37.20 	$1,000,000 $2,000,000 in two years for one or more projects.

37.21 	Sec. 4. [116J.549] WORKFORCE HOUSING DEVELOPMENT PROGRAM.
37.22 		Subdivision 1.Establishment. The commissioner of employment and economic 
37.23 	development shall establish a workforce housing development program to award grants to 
37.24 	eligible project areas to be used for qualified expenditures.
37.25 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have 
37.26 	the meanings given.
37.27 	(b) "Eligible project area" means a home rule charter or statutory city with a 
37.28 	population exceeding 500; a community that has a combined population of 1,500 residents 
37.29 	located within 15 miles of a home rule charter or statutory city; or an area served by a joint 
37.30 	county-city economic development authority.
37.31 	(c) "Joint county-city economic development authority" means an economic 
37.32 	development authority formed under Laws 1988, chapter 516, section 1, as a joint 
37.33 	partnership between a city and county and excluding those established by the county only.
38.1 	(d) "Market rate residential rental properties" means properties that are rented 
38.2 	at market value, including new modular homes, new manufactured homes, and new 
38.3 	manufactured homes on leased land or in a manufactured home park, and excludes:
38.4 	(1) properties constructed with financial assistance requiring the property to be 
38.5 	occupied by residents that meet income limits under federal or state law of initial 
38.6 	occupancy; and
38.7 	(2) properties constructed with federal, state, or local flood recovery assistance, 
38.8 	regardless of whether that assistance imposed income limits as a condition of receiving 
38.9 	assistance.
38.10 	(e) "Qualified expenditure" means expenditures for market rate residential rental 
38.11 	properties including acquisition of property; construction of improvements; and provisions 
38.12 	of loans or subsidies, grants, interest rate subsidies, public infrastructure, and related 
38.13 	financing costs.
38.14 		Subd. 3.Application. The commissioner shall develop forms and procedures to 
38.15 	solicit and review applications for grants under this section. An eligible project area 
38.16 	must include in its application information sufficient to verify that it meets the program 
38.17 	requirements under this section and any additional evidence of the scarcity of workforce 
38.18 	housing in the area that it considers appropriate or that the commissioner requires.
38.19 		Subd. 4.Program requirements. (a) The commissioner must not award a grant to 
38.20 	an eligible project area under this section until the following determinations are made:
38.21 	(1) the average vacancy rate for rental housing located in the eligible project area, 
38.22 	and in any other city located within 15 miles or less of the boundaries of the area, has been 
38.23 	five percent or less for at least the prior two-year period;
38.24 	(2) one or more businesses located in the eligible project area, or within 25 miles 
38.25 	of the area, that employs a minimum of 20 full-time equivalent employees in aggregate 
38.26 	have provided a written statement to the eligible project area indicating that the lack of 
38.27 	available rental housing has impeded their ability to recruit and hire employees;
38.28 	(3) fewer than ten market rate residential rental units per 1,000 residents were 
38.29 	constructed in the city in each of the last ten years; and
38.30 	(4) the eligible project area has certified that the grants will be used for qualified 
38.31 	expenditures for the development of rental housing to serve employees of businesses 
38.32 	located in the eligible project area or surrounding area.
38.33 	(b) Preference for grants awarded under this section shall be given to eligible project 
38.34 	areas with less than 18,000 people.
38.35 		Subd. 5.Allocation. The amount of a grant under this section must not exceed the 
38.36 	lesser of 25 percent of the qualified expenditures for the project or $1,000,000.
39.1 		Subd. 6.Report. By January 15 of the year following the year in which the grant 
39.2 	was issued, each eligible project area receiving a grant under this section must submit a 
39.3 	report specifying the projects that received grants under this section and the specific 
39.4 	purposes for which the grant funds were used to the chairs and ranking minority members 
39.5 	of the senate and house of representatives committees having jurisdiction over jobs and 
39.6 	workforce development.

39.7 	EFFECTIVE DATE. This section is effective July 1, 2015.

39.8 	Sec. 5. Minnesota Statutes 2014, section 116J.8738, subdivision 3, is amended to read:
39.9 		Subd. 3.Certification of qualified business. (a) A business may apply to 
39.10 	the commissioner for certification as a qualified business under this section. The 
39.11 	commissioner shall specify the form of the application, the manner and times for applying, 
39.12 	and the information required to be included in the application. The commissioner may 
39.13 	impose an application fee in an amount sufficient to defray the commissioner's cost of 
39.14 	processing certifications. Application fees are deposited in the greater Minnesota business 
39.15 	expansion administration account in the special revenue fund. A business must file a copy 
39.16 	of its application with the chief clerical officer of the city at the same time it applies to the 
39.17 	commissioner. For an agricultural processing facility located outside the boundaries of a 
39.18 	city, the business must file a copy of the application with the county auditor.
39.19 	(b) The commissioner shall certify each business as a qualified business that:
39.20 	(1) satisfies the requirements of subdivision 2;
39.21 	(2) the commissioner determines would not expand its operations in greater 
39.22 	Minnesota without the tax incentives available under subdivision 4; and
39.23 	(3) enters a business subsidy agreement with the commissioner that pledges to 
39.24 	satisfy the minimum expansion requirements of paragraph (c) within three years or less 
39.25 	following execution of the agreement.
39.26 	The commissioner must act on an application within 90 days after its filing. Failure 
39.27 	by the commissioner to take action within the 90-day period is deemed approval of the 
39.28 	application.
39.29 	(c) The business must increase the number of full-time equivalent employees 
39.30 	in greater Minnesota from the time the business subsidy agreement is executed by two 
39.31 	employees or ten percent, whichever is greater.
39.32 	(d) The city, or a county for an agricultural processing facility located outside the 
39.33 	boundaries of a city, in which the business proposes to expand its operations may file 
39.34 	comments supporting or opposing the application with the commissioner. The comments 
39.35 	must be filed within 30 days after receipt by the city of the application and may include a 
40.1 	notice of any contribution the city or county intends to make to encourage or support the 
40.2 	business expansion, such as the use of tax increment financing, property tax abatement, 
40.3 	additional city or county services, or other financial assistance.
40.4 	(e) Certification of a qualified business is effective for the seven-year period 
40.5 	beginning on the first day of the calendar month immediately following the date that the 
40.6 	commissioner informs the business of the award of the benefit.

40.7 	EFFECTIVE DATE. This section is effective retroactively from August 1, 2014.

40.8 	Sec. 6. Minnesota Statutes 2014, section 116J.8738, is amended by adding a 
40.9 	subdivision to read:
40.10 		Subd. 6.Funds. Amounts in the greater Minnesota business expansion 
40.11 	administration account in the special revenue fund are appropriated to the commissioner of 
40.12 	employment and economic development for costs associated with processing applications 
40.13 	under subdivisions 3, 4, and 5, and for personnel and administrative expenses related to 
40.14 	administering the greater Minnesota business expansion program.

40.15 	EFFECTIVE DATE. This section is effective retroactively from August 1, 2014.

40.16 	Sec. 7. Minnesota Statutes 2014, section 116J.8747, subdivision 1, is amended to read:
40.17 		Subdivision 1.Grant allowed. The commissioner may provide a grant to a qualified 
40.18 	job training program from money appropriated for the purposes of this section as follows:
40.19 	(1) a $9,000$11,000 placement grant paid to a job training program upon placement 
40.20 	in employment of a qualified graduate of the program; and
40.21 	(2) a $9,000$11,000 retention grant paid to a job training program upon retention in 
40.22 	employment of a qualified graduate of the program for at least one year.

40.23 	Sec. 8. Minnesota Statutes 2014, section 116J.8747, subdivision 2, is amended to read:
40.24 		Subd. 2.Qualified job training program. To qualify for grants under this section, 
40.25 	a job training program must satisfy the following requirements:
40.26 	(1) the program must be operated by a nonprofit corporation that qualifies under 
40.27 	section 501(c)(3) of the Internal Revenue Code;
40.28 	(2) the program must spend at least, on average, $15,000 or more per graduate 
40.29 	of the program;
40.30 	(3) the program must provide education and training in:
40.31 	(i) basic skills, such as reading, writing, mathematics, and communications;
41.1 	(ii) thinking skills, such as reasoning, creative thinking, decision making, and 
41.2 	problem solving; and
41.3 	(iii) personal qualities, such as responsibility, self-esteem, self-management, 
41.4 	honesty, and integrity;
41.5 	(4) the program mustmay provide income supplements, when needed, to participants 
41.6 	for housing, counseling, tuition, and other basic needs;
41.7 	(5) the program's education and training course must last for an average of at least 
41.8 	six months;
41.9 	(6) individuals served by the program must:
41.10 	(i) be 18 years of age or older;
41.11 	(ii) have federal adjusted gross income of no more than $11,000$12,000 per year in 
41.12 	the calendar year immediately before entering the program;
41.13 	(iii) have assets of no more than $7,000 $10,000, excluding the value of a 
41.14 	homestead; and
41.15 	(iv) not have been claimed as a dependent on the federal tax return of another person 
41.16 	in the previous taxable year; and
41.17 	(7) the program must be certified by the commissioner of employment and economic 
41.18 	development as meeting the requirements of this subdivision.

41.19 	Sec. 9. Minnesota Statutes 2014, section 116L.17, subdivision 4, is amended to read:
41.20 		Subd. 4.Use of funds. Funds granted by the board under this section may be used 
41.21 	for any combination of the following, except as otherwise provided in this section:
41.22 	(1) employment transition services such as developing readjustment plans for 
41.23 	individuals; outreach and intake; early readjustment; job or career counseling; testing; 
41.24 	orientation; assessment of skills and aptitudes; provision of occupational and labor market 
41.25 	information; job placement assistance; job search; job development; prelayoff assistance; 
41.26 	relocation assistance; programs provided in cooperation with employers or labor 
41.27 	organizations to provide early intervention in the event of plant closings or substantial 
41.28 	layoffs; and entrepreneurial training and business consulting;
41.29 	(2) support services, including assistance to help the participant relocate to employ 
41.30 	existing skills; out-of-area job search assistance; family care assistance, including child 
41.31 	care; commuting assistance; emergency housing and rental assistance; counseling 
41.32 	assistance, including personal and financial; health care; emergency health assistance; 
41.33 	emergency financial assistance; work-related tools and clothing; and other appropriate 
41.34 	support services that enable a person to participate in an employment and training program 
41.35 	with the goal of reemployment;
42.1 	(3) specific, short-term training to help the participant enhance current skills 
42.2 	in a similar occupation or industry; entrepreneurial training, customized training, or 
42.3 	on-the-job training; basic and remedial education to enhance current skills; and literacy 
42.4 	and work-related English training for non-English speakers; and
42.5 	(4) long-term training in a new occupation or industry, including occupational skills 
42.6 	training or customized training in an accredited program recognized by one or more 
42.7 	relevant industries. Long-term training shall only be provided to dislocated workers whose 
42.8 	skills are obsolete and who have no other transferable skills likely to result in employment 
42.9 	at a comparable wage rate. Training shall only be provided for occupations or industries 
42.10 	with reasonable expectations of job availability based on the service provider's thorough 
42.11 	assessment of local labor market information where the individual currently resides or 
42.12 	is willing to relocate. This clause shall not restrict training in personal services or other 
42.13 	such industries; and
42.14 	(5) incumbent worker training.

42.15 	Sec. 10. Minnesota Statutes 2014, section 116L.20, subdivision 1, is amended to read:
42.16 		Subdivision 1.Determination and collection of special assessment. (a) In addition 
42.17 	to amounts due from an employer under the Minnesota unemployment insurance program, 
42.18 	each employer, except an employer making reimbursements is liable for a special 
42.19 	assessment levied at the rate of .10 .08 percent per year on all taxable wages, as defined in 
42.20 	section 268.035, subdivision 24, except that effective July 1, 2009, until June 30, 2011, the 
42.21 	special assessment shall be levied at a rate of .12 percent per year on all taxable wages as 
42.22 	defined in section 268.035, subdivision 24. The assessment shall become due and be paid 
42.23 	by each employer on the same schedule and in the same manner as other amounts due 
42.24 	from an employer under section 268.051, subdivision 1.
42.25 	(b) The special assessment levied under this section shall be subject to the same 
42.26 	requirements and collection procedures as any amounts due from an employer under the 
42.27 	Minnesota unemployment insurance program.

42.28 	EFFECTIVE DATE. This section is effective July 1, 2017.

42.29 	Sec. 11. [116L.31] DUAL TRAINING COMPETENCY GRANTS.
42.30 		Subdivision 1.Program created. The commissioner of employment and economic 
42.31 	development shall make grants for the training of employees to achieve the competency 
42.32 	standard for an occupation identified by the commissioner of labor and industry under 
42.33 	section 175.45 and Laws 2014, chapter 312, article 3, section 21. "Competency standard" 
42.34 	has the meaning given in section 175.45, subdivision 2.
43.1 		Subd. 2.Eligible grantees. An employer or an organization representing the 
43.2 	employer is eligible to apply for a grant to train employees if the employer has employees 
43.3 	who are in, or are to be trained to be in, an occupation for which a competency standard 
43.4 	has been identified and the employee has not attained the competency standard prior 
43.5 	to the commencement of the planned training. Training need not address all aspects 
43.6 	of a competency standard but may address only the competencies of a standard that an 
43.7 	employee is lacking. Employees who have previously received a grant under this program 
43.8 	are not eligible to receive another grant. Each employee must apply for federal Pell and 
43.9 	state grants as a condition of participating in the program.
43.10 		Subd. 3.Training institution. (a) Prior to applying for a grant, an employer or an 
43.11 	organization representing the employer must enter into an agreement with a state college 
43.12 	or university operated by the Board of Trustees of the Minnesota State Colleges and 
43.13 	Universities to provide the employee competency standard training.
43.14 	(b) For the purposes of this section, "training institution" means an institution 
43.15 	operated by the Board of Trustees of the Minnesota State Colleges and Universities or an 
43.16 	institution designated by the chancellor of the Minnesota State Colleges and Universities.
43.17 		Subd. 4.Contract required. Prior to the start of a training program, an employer 
43.18 	and employee must enter into a contract detailing the terms of the work relationship during 
43.19 	and after the training program.
43.20 		Subd. 5.Application. Applications must be made to the commissioner on a form 
43.21 	provided by the commissioner. The commissioner must, to the extent possible, make 
43.22 	the application form short and simple to complete. The commissioner shall establish a 
43.23 	schedule for applications and grants. The application must include, without limitation:
43.24 	(1) the projected number of employee trainees;
43.25 	(2) the competency standard for which training will be provided;
43.26 	(3) any credential the employee will receive upon completion of training;
43.27 	(4) the name and address of the training institution and a signed statement by the 
43.28 	institution that it is able to and agrees to provide the training;
43.29 	(5) the period of the training; and
43.30 	(6) the cost of the training charged by the training institution and certified by the 
43.31 	institution.
43.32 	An application may be made for training of employees of multiple employers either by the 
43.33 	employers or by an organization on their behalf.
43.34 		Subd. 6.Grant criteria. To the extent there are sufficient applications, the 
43.35 	commissioner shall award at least an equal dollar amount of grants for training for 
43.36 	employees whose work site is projected to be outside the metropolitan area as defined 
44.1 	in section 473.121, subdivision 2, as for employees whose work site is projected to be 
44.2 	within the metropolitan area. In determining the award of grants, the commissioner must 
44.3 	consider, among other factors:
44.4 	(1) the aggregate state and regional need for employees with the competency to 
44.5 	be trained;
44.6 	(2) the competency standards developed by the commissioner of labor and industry 
44.7 	as part of the Minnesota PIPELINE Project;
44.8 	(3) the per employee cost of training;
44.9 	(4) the additional employment opportunities for employees as a result of the training;
44.10 	(5) projected increases in compensation for employees receiving the training; and
44.11 	(6) the amount of employer training cost match, on both a per employee and 
44.12 	aggregate basis.
44.13 		Subd. 7.Employer match. (a) Employers must pay to the training institution a 
44.14 	percentage of a training institution's charge for the training after subtracting federal Pell 
44.15 	and state grants for which an employee is eligible. The amount that an employer must pay 
44.16 	to the training institution shall be determined as follows:
44.17 	(1) an employer with greater than or equal to $50,000,000 in annual revenue in the 
44.18 	previous calendar year must pay at least 66 percent of the training institution's charge 
44.19 	for the training;
44.20 	(2) an employer with less than $50,000,000 in annual revenue in the previous 
44.21 	calendar year but greater than or equal to $20,000,000 in annual revenue in the previous 
44.22 	calendar year must pay at least 50 percent of the training institution's charge for the training;
44.23 	(3) an employer with less than $20,000,000 in annual revenue in the previous calendar 
44.24 	year but greater than or equal to $10,000,000 in annual revenue in the previous calendar 
44.25 	year must pay at least 33 percent of the training institution's charge for the training; and
44.26 	(4) an employer with less than $10,000,000 in annual revenue in the previous 
44.27 	calendar year must pay at least 20 percent of the training institution's charge for the training.
44.28 	(b) The match required under this subdivision shall be based solely on the annual 
44.29 	revenue of the individual employer without regard to any organization representing the 
44.30 	employer.
44.31 		Subd. 8.Payment of grant. The commissioner shall make grant payments to the 
44.32 	training institution in a manner determined by the commissioner after receiving notice 
44.33 	from the institution that the employer has paid the employer match.
44.34 		Subd. 9.Grant amounts. (a) The commissioner shall determine a maximum 
44.35 	amount that may be awarded in a single grant, and a maximum amount that may be 
44.36 	awarded per employee trained under a grant. The commissioner shall set the maximum 
45.1 	grant amount at a level that ensures sufficient funding will be available for multiple 
45.2 	employers. The maximum grant amount per employee trained may not exceed the cost of 
45.3 	tuition up to 60 credits.
45.4 	(b) A grant for a particular employee must be reduced by the amounts of any federal 
45.5 	Pell grant or state grant the employee is eligible to receive for the training and the amount 
45.6 	of the employer match.
45.7 		Subd. 10.Reporting. Commencing in 2017, the commissioner shall annually by 
45.8 	February 1 report on the activity of the grant program for the preceding fiscal year to the 
45.9 	chairs of the legislative committees with jurisdiction over workforce policy and finance. 
45.10 	At a minimum, the report must include:
45.11 	(1) research and analysis on the costs and benefits of the grants for employees and 
45.12 	employers;
45.13 	(2) the number of employees who commenced training and the number who 
45.14 	completed training; and
45.15 	(3) recommendations, if any, for changes to the program.

45.16 	Sec. 12. [116L.40] DEFINITIONS.
45.17 		Subdivision 1.Scope. When used in sections 116L.40 to 116L.42, the following 
45.18 	terms have the meanings given them unless the context requires otherwise.
45.19 		Subd. 2.Agreement. "Agreement" means the agreement between an employer and 
45.20 	the commissioner for a project.
45.21 		Subd. 3.Commissioner. "Commissioner" means the commissioner of employment 
45.22 	and economic development.
45.23 		Subd. 4.Disability. "Disability" has the meaning given under United States Code, 
45.24 	title 42, chapter 126.
45.25 		Subd. 5.Employee. "Employee" means the individual employed in a new job.
45.26 		Subd. 6.Employer. "Employer" means the individual, corporation, partnership, 
45.27 	limited liability company, or association providing new jobs and entering into an agreement.
45.28 		Subd. 7.New job. "New job" means a job:
45.29 	(1) that is provided by a new or expanding business at a location in Minnesota 
45.30 	outside of the metropolitan area, as defined in section 473.121, subdivision 2;
45.31 	(2) that provides at least 32 hours of work per week for a minimum of nine months 
45.32 	per year and is permanent with no planned termination date;
45.33 	(3) that is certified by the commissioner as qualifying under the program before the 
45.34 	first employee is hired to fill the job; and
46.1 	(4) for which an employee hired was not (i) formerly employed by the employer 
46.2 	in the state, or (ii) a replacement worker, including a worker newly hired as a result of a 
46.3 	labor dispute.
46.4 		Subd. 8.Program. "Program" means the project or projects established under 
46.5 	sections 116L.40 to 116L.42.
46.6 		Subd. 9.Program costs. "Program costs" means all necessary and incidental 
46.7 	costs of providing program services, except that program costs are increased by $1,000 
46.8 	per employee for an individual with a disability. The term does not include the cost of 
46.9 	purchasing equipment to be owned or used by the training or educational institution or 
46.10 	service.
46.11 		Subd. 10.Program services. "Program services" means training and education 
46.12 	specifically directed to new jobs that are determined to be appropriate by the commissioner, 
46.13 	including in-house training; services provided by institutions of higher education and 
46.14 	federal, state, or local agencies; or private training or educational services. Administrative 
46.15 	services and assessment and testing costs are included.
46.16 		Subd. 11.Project. "Project" means a training arrangement that is the subject of an 
46.17 	agreement entered into between the commissioner and an employer to provide program 
46.18 	services.

46.19 	Sec. 13. [116L.41] COMMISSIONER'S DUTIES AND POWERS; 
46.20 	AGREEMENTS.
46.21 		Subdivision 1.Service provision. Upon request, the commissioner shall provide 
46.22 	or coordinate the provision of program services under sections 116L.40 to 116L.42 to 
46.23 	a business eligible for grants under section 116L.42. The commissioner shall specify 
46.24 	the form of and required information to be provided with applications for projects to be 
46.25 	funded with grants under section 116L.42.
46.26 		Subd. 2.Agreements; required terms. (a) The commissioner may enter into an 
46.27 	agreement to establish a project with an employer that:
46.28 	(1) identifies program costs to be paid from sources under the program;
46.29 	(2) identifies program costs to be paid by the employer;
46.30 	(3) provides that on-the-job training costs for employees may not exceed 50 percent 
46.31 	of the annual gross wages and salaries of the new jobs in the first full year after execution 
46.32 	of the agreement up to a maximum of $10,000 per eligible employee;
46.33 	(4) provides that each employee must be paid wages at least equal to the median 
46.34 	hourly wage for the county in which the job is located, as reported in the most recently 
47.1 	available data from the United States Bureau of the Census, plus benefits, by the earlier of 
47.2 	the end of the training period or 18 months of employment under the project; and
47.3 	(5) provides that job training will be provided and the length of time of training.
47.4 	(b) Before entering into a final agreement, the commissioner shall:
47.5 	(1) determine that sufficient funds for the project are available under section 
47.6 	116L.42; and
47.7 	(2) investigate the applicability of other training programs and determine whether 
47.8 	the job skills partnership grant program is a more suitable source of funding for the 
47.9 	training and whether the training can be completed in a timely manner that meets the 
47.10 	needs of the business.
47.11 	The investigation under clause (2) must be completed within 15 days or as soon 
47.12 	as reasonably possible after the employer has provided the commissioner with all the 
47.13 	requested information.
47.14 		Subd. 3.Grant funds sufficient. The commissioner must not enter into an agreement 
47.15 	under subdivision 2 unless the commissioner determines that sufficient funds are available. 
47.16 		Subd. 4.Allocation. The commissioner shall allocate grant funds under section 
47.17 	116L.42 to project applications based on a first-come, first-served basis, determined on the 
47.18 	basis of the commissioner's receipt of a complete application for the project, including the 
47.19 	provision of all of the required information. The agreement must specify the amount of 
47.20 	grant funds available to the employer for each year covered by the agreement.
47.21 		Subd. 5.Application fee. The commissioner may charge each employer an 
47.22 	application fee to cover part or all of the administrative and legal costs incurred, not to 
47.23 	exceed $500 per employer. The fee is deemed approved under section 16A.1283. The fee 
47.24 	is deposited in the jobs training account in the special revenue fund and amounts in the 
47.25 	account are appropriated to the commissioner for the costs of administering the program. 
47.26 	The commissioner shall refund the fee to the employer if the application is denied because 
47.27 	program funding is unavailable.

47.28 	Sec. 14. [116L.42] JOBS TRAINING GRANTS.
47.29 		Subdivision 1.Recovery of program costs. Amounts paid by employers for 
47.30 	program costs are repaid by a job training grant equal to the lesser of the following:
47.31 	(1) the amount of program costs specified in the agreement for the project; or
47.32 	(2) the amount of program costs paid by the employer for new employees under 
47.33 	a project.
47.34 		Subd. 2.Reports. (a) By February 1, 2018, the commissioner shall report to the 
47.35 	governor and the legislature on the program. The report must include at least:
48.1 	(1) the amount of grants issued under the program;
48.2 	(2) the number of individuals receiving training under the program, including the 
48.3 	number of new hires who are individuals with disabilities;
48.4 	(3) the number of new hires attributable to the program, including the number of 
48.5 	new hires who are individuals with disabilities;
48.6 	(4) an analysis of the effectiveness of the grant in encouraging employment; and
48.7 	(5) any other information the commissioner determines appropriate.
48.8 	(b) The report to the legislature must be distributed as provided in section 3.195.

48.9 	Sec. 15. [116L.65] CUSTOMIZED TRAINING FOR SKILLED 
48.10 	MANUFACTURING INDUSTRIES.
48.11 		Subdivision 1.Program. The commissioner of employment and economic 
48.12 	development, in consultation with the commissioner of labor and industry, shall 
48.13 	collaborate with Minnesota State Colleges and Universities (MnSCU) institutions 
48.14 	and employers to develop and administer a customized training program for skilled 
48.15 	manufacturing industries that integrates academic instruction and job-related learning 
48.16 	in the workplace and MnSCU institutions. The commissioner shall actively recruit 
48.17 	participants in a customized training program for skilled manufacturing industries from 
48.18 	the following groups: secondary and postsecondary school systems, individuals with 
48.19 	disabilities, dislocated workers, retired and disabled veterans, individuals enrolled in 
48.20 	MFIP under chapter 256J, minorities, previously incarcerated individuals, individuals 
48.21 	residing in labor surplus areas as defined by the United States Department of Labor, and 
48.22 	any other disadvantaged group as determined by the commissioner.
48.23 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in this 
48.24 	subdivision have the meanings given them.
48.25 	(b) "Commissioner" means the commissioner of employment and economic 
48.26 	development.
48.27 	(c) "Employer" means an employer in Minnesota in the skilled manufacturing 
48.28 	industry who employs no more than 50 employees and who enters into the agreements 
48.29 	with MnSCU institutions and the commissioner under subdivisions 3 to 5.
48.30 	(d) "MnSCU institution" means an institution designated by the commissioner 
48.31 	unless otherwise specified by the legislature.
48.32 	(e) "Participant" means an employee who enters into a customized training program 
48.33 	for skilled manufacturing industries participation agreement under subdivision 4.
48.34 	(f) "Related instruction" means classroom instruction or technical or vocational 
48.35 	training required to perform the duties of the skilled manufacturing job.
49.1 	(g) "Skilled manufacturing" means occupations in manufacturing industry sectors 31 
49.2 	to 33 as defined by the North American Industry Classification System (NAICS).
49.3 		Subd. 3.Skilled manufacturing customized training program employer 
49.4 	agreement. (a) The commissioner, employer, and MnSCU institution shall enter into a 
49.5 	skilled manufacturing customized training program employer agreement that is specific to 
49.6 	the identified skilled manufacturing training needs of an employer.
49.7 	(b) The agreement must contain the following:
49.8 	(1) the name of the employer;
49.9 	(2) a statement showing the number of hours to be spent by a participant in work and 
49.10 	the number of hours to be spent, if any, in concurrent, supplementary instruction in related 
49.11 	subjects. The maximum number of hours of work per week, not including time spent in 
49.12 	related instruction, for any participant shall not exceed either the number prescribed by 
49.13 	law or the customary regular number of hours per week for the employees of the employer. 
49.14 	A participant may be allowed to work overtime provided that the overtime work does not 
49.15 	conflict with supplementary instruction course attendance. All time spent by the participant 
49.16 	in excess of the number of hours of work per week as specified in the skilled manufacturing 
49.17 	customized training program participation agreement shall be considered overtime;
49.18 	(3) the hourly wage to be paid to the participant and requirements for reporting to 
49.19 	the commissioner on actual wages paid to the participant;
49.20 	(4) an explanation of how the employer agreement or participant agreement may 
49.21 	be terminated;
49.22 	(5) a statement setting forth a schedule of the processes of the occupation in which 
49.23 	the participant is to be trained and the approximate time to be spent at each process;
49.24 	(6) a statement by the MnSCU institution and the employer describing the related 
49.25 	instruction that will be offered, if any, under subdivision 5, paragraph (c); and
49.26 	(7) any other provision the commissioner deems necessary to carry out the purposes 
49.27 	of this section.
49.28 	(c) The commissioner may periodically review the adherence to the terms of the 
49.29 	customized training program employer agreement. If the commissioner determines that 
49.30 	an employer or employee has failed to comply with the terms of the agreement, the 
49.31 	commissioner shall terminate the agreement. An employer must report to the commissioner 
49.32 	any change in status for the participant within 30 days of the change in status.
49.33 		Subd. 4.Skilled manufacturing customized training program participation 
49.34 	agreement. (a) The commissioner, the prospective participant, and the employer shall 
49.35 	enter into a skilled manufacturing customized training program participation agreement 
49.36 	that is specific to the training to be provided to the participant.
50.1 	(b) The participation agreement must contain the following:
50.2 	(1) the name of the employer;
50.3 	(2) the name of the participant;
50.4 	(3) a statement setting forth a schedule of the processes of the occupation in which 
50.5 	the participant is to be trained and the approximate time to be spent at each process;
50.6 	(4) a description of any related instruction;
50.7 	(5) a statement showing the number of hours to be spent by a participant in work and 
50.8 	the number of hours to be spent, if any, in concurrent, supplementary instruction in related 
50.9 	subjects. The maximum number of hours of work per week, not including time spent in 
50.10 	related instruction, for any participant shall not exceed either the number prescribed 
50.11 	by law or the customary regular number of hours per week for the employees of the 
50.12 	employer. A participant may be allowed to work overtime provided that the overtime 
50.13 	work does not conflict with supplementary instruction course attendance. All time spent 
50.14 	by the participant in excess of the number of hours of work per week as specified in the 
50.15 	customized training program participation agreement shall be considered overtime;
50.16 	(6) the hourly wage to be paid to the participant; and
50.17 	(7) an explanation of how the parties may terminate the participation agreement.
50.18 	(c) The commissioner may periodically review the adherence to the terms of the 
50.19 	customized training program participation agreement. If the commissioner determines 
50.20 	that an employer or participant has failed to comply with the terms of the agreement, the 
50.21 	commissioner shall terminate the agreement. An employer must report to the commissioner 
50.22 	any change in status for the participant within 30 days of the change in status.
50.23 		Subd. 5.MnSCU instruction. (a) The MnSCU institution shall collaborate 
50.24 	with an employer to provide related instruction that the employer deems necessary to 
50.25 	instruct participants of a skilled manufacturing customized training program. The related 
50.26 	instruction provided must be, for the purposes of this section, career-level, as negotiated 
50.27 	by the commissioner and the MnSCU institution. The related instruction may be for credit 
50.28 	or noncredit, and credit earned may be transferable to a degree program, as determined by 
50.29 	the MnSCU institution. The MnSCU institution shall provide a summary of the related 
50.30 	instruction to the commissioner prior to disbursement of any funds.
50.31 	(b) The commissioner, in conjunction with the MnSCU institution, shall issue a 
50.32 	certificate of completion to a participant who completes all required components of the 
50.33 	skilled manufacturing customized training program participation agreement.
50.34 	(c) As part of the skilled manufacturing customized training program, an employer 
50.35 	shall collaborate with the MnSCU institution for any related instruction required to 
50.36 	perform the skilled manufacturing job. The agreement shall include:
51.1 	(1) a detailed explanation of the related instruction; and
51.2 	(2) the number of hours of related instruction needed to receive a certificate of 
51.3 	completion.
51.4 	(d) The commissioner shall follow the requirements of section 116L.98 regardless of 
51.5 	the funding source. The MnSCU institution shall provide the commissioner with the data 
51.6 	needed for the commissioner to fulfill the requirements of section 116L.98.

51.7 	Sec. 16. Minnesota Statutes 2014, section 116L.98, subdivision 1, is amended to read:
51.8 		Subdivision 1.Requirements. The commissioner shall develop and implement a 
51.9 	uniform outcome measurement and reporting system for adult workforce-related programs 
51.10 	funded in whole or in part by the workforce development fund. state funds. For the purpose 
51.11 	of this section, "workforce-related programs" means all education and training programs 
51.12 	administered by the commissioner and includes programs and services administered by the 
51.13 	commissioner and provided to individuals enrolled in adult basic education under section 
51.14 	124D.52, and the Minnesota family investment program under chapter 256J.

51.15 	Sec. 17. Minnesota Statutes 2014, section 116L.98, subdivision 3, is amended to read:
51.16 		Subd. 3.Uniform outcome report card; reporting by commissioner. (a) By 
51.17 	December 31 of each even-numbered year, the commissioner must report to the chairs 
51.18 	and ranking minority members of the committees of the house of representatives and the 
51.19 	senate having jurisdiction over economic development and workforce policy and finance 
51.20 	the following information separately for each of the previous two fiscal or calendar years, 
51.21 	for each program subject to the requirements of subdivision 1:
51.22 	(1) the total number of participants enrolled;
51.23 	(2) the median pre-enrollment wages based on participant wages for the second 
51.24 	through the fifth calendar quarters immediately preceding the quarter of enrollment 
51.25 	excluding those with zero income;
51.26 	(3) the total number of participants with zero income in the second through fifth 
51.27 	calendar quarters immediately preceding the quarter of enrollment;
51.28 	(4) the total number of participants enrolled in training;
51.29 	(5) the total number of participants enrolled in training by occupational group;
51.30 	(6) the total number of participants that exited the program and the average 
51.31 	enrollment duration of participants that have exited the program during the year;
51.32 	(7) the total number of exited participants who completed training;
51.33 	(8) the total number of exited participants who attained a credential;
52.1 	(9) the total number of participants employed during three consecutive quarters 
52.2 	immediately following the quarter of exit, by industry;
52.3 	(10) the median wages of participants employed during three consecutive quarters 
52.4 	immediately following the quarter of exit;
52.5 	(11) the total number of participants employed during eight consecutive quarters 
52.6 	immediately following the quarter of exit, by industry; and
52.7 	(12) the median wages of participants employed during eight consecutive quarters 
52.8 	immediately following the quarter of exit.;
52.9 	(13) the total cost of the program;
52.10 	(14) the total cost of the program per participant;
52.11 	(15) the cost per credential received by a participant; and
52.12 	(16) the administrative cost of the program.
52.13 	(b) The report to the legislature must contain participant information by education 
52.14 	level, race and ethnicity, gender, and geography, and a comparison of exited participants 
52.15 	who completed training and those who did not.
52.16 	(c) The requirements of this section apply to programs administered directly by the 
52.17 	commissioner or administered by other organizations under a grant made by the department.

52.18 	Sec. 18. Minnesota Statutes 2014, section 116L.98, subdivision 5, is amended to read:
52.19 		Subd. 5.Information. (a) The information collected and reported under 
52.20 	subdivisions 3 and 4 shall be made available on the department's Web site.
52.21 	(b) The commissioner must provide analysis of the data required under subdivision 3.
52.22 	(c) The analysis under paragraph (b) must also include an executive summary of 
52.23 	program outcomes, including but not limited to enrollment, training, credentials, pre- 
52.24 	and post-program employment and wages, and a comparison of program outcomes by 
52.25 	participant characteristics.
52.26 	(d) The data required in the comparative analysis under paragraph (c) must be 
52.27 	presented in both written and graphic format.

52.28 	Sec. 19. Minnesota Statutes 2014, section 116L.98, subdivision 7, is amended to read:
52.29 		Subd. 7.Workforce program net impact analysis. (a) By January 15, 2015, the 
52.30 	commissioner must report to the committees of the house of representatives and the senate 
52.31 	having jurisdiction over economic development and workforce policy and finance on 
52.32 	the results of the net impact pilot project already underway as of the date of enactment 
52.33 	of this section.
53.1 	(b) The commissioner shall contract with an independent entity to conduct an 
53.2 	ongoing net impact analysis of the programs included in the net impact pilot project under 
53.3 	paragraph (a), career pathways programs, and any other programs deemed appropriate 
53.4 	by the commissioner. The net impact methodology used by the independent entity under 
53.5 	this paragraph must be based on the methodology and evaluation design used in the net 
53.6 	impact pilot project under paragraph (a).
53.7 	(c) By January 15, 2017, and every four years thereafter, the commissioner must 
53.8 	report to the committees of the house of representatives and the senate having jurisdiction 
53.9 	over economic development and workforce policy and finance the following information 
53.10 	for each program subject to paragraph (b):
53.11 	(1) the net impact of workforce services on individual employment, earnings, and 
53.12 	public benefit usage outcomes; and
53.13 	(2) a cost-benefit analysis for understanding the monetary impacts of workforce 
53.14 	services from the participant and taxpayer points of view.
53.15 	The report under this paragraph must be made available to the public in an electronic 
53.16 	format on the Department of Employment and Economic Development's Web site.
53.17 	(d) The department is authorized to create and maintain data-sharing agreements 
53.18 	with other departments, including corrections, human services, and any other department 
53.19 	that are necessary to complete the analysis. The department shall supply the information 
53.20 	collected for use by the independent entity conducting net impact analysis pursuant to the 
53.21 	data practices requirements under chapters 13, 13A, 13B, and 13C.

53.22 	Sec. 20. Minnesota Statutes 2014, section 116M.14, is amended by adding a 
53.23 	subdivision to read:
53.24 		Subd. 6.Low-income person. "Low-income person" means a person who has an 
53.25 	annual income, adjusted for family size, of not more than 80 percent of the area median 
53.26 	family income for the seven-county metropolitan area.

53.27 	Sec. 21. Minnesota Statutes 2014, section 116M.18, subdivision 1, is amended to read:
53.28 		Subdivision 1.Eligibility rules. The board shall make urban challenge grants 
53.29 	for use in low-income areas for use in the seven-county metropolitan area to nonprofit 
53.30 	corporations to encourage private investment, to provide jobs for minority persons and 
53.31 	others in low-income areas, to create and strengthen minority and low-income persons' 
53.32 	business enterprises, and to promote economic development in a low-income area. The 
53.33 	board shall adopt rules to establish criteria for determining loan eligibility.

54.1 	Sec. 22. Minnesota Statutes 2014, section 116M.18, subdivision 2, is amended to read:
54.2 		Subd. 2.Challenge grant eligibility; nonprofit corporation. The board may enter 
54.3 	into agreements with nonprofit corporations to fund and guarantee loans the nonprofit 
54.4 	corporation makes in low-income areas under subdivision 4 and to low-income persons. A 
54.5 	corporation must demonstrate that:
54.6 	(1) its board of directors includes citizens experienced in development, minority 
54.7 	business enterprises, and creating jobs in low-income areas;
54.8 	(2) it has the technical skills to analyze projects;
54.9 	(3) it is familiar with other available public and private funding sources and 
54.10 	economic development programs;
54.11 	(4) it can initiate and implement economic development projects;
54.12 	(5) it can establish and administer a revolving loan account; and
54.13 	(6) it can work with job referral networks which assist minority and other persons in 
54.14 	low-income areas.

54.15 	Sec. 23. Minnesota Statutes 2014, section 116M.18, subdivision 3, is amended to read:
54.16 		Subd. 3.Revolving loan fund. (a) The board shall establish a revolving loan fund to 
54.17 	make grants to nonprofit corporations for the purpose of making loans and loan guarantees 
54.18 	to new and expanding businesses in a low-income area, and to low-income persons to 
54.19 	promote minority business enterprises and job creation for minority and other persons in 
54.20 	low-income areas low-income persons throughout the seven-county metropolitan area.
54.21 	(b) Eligible business enterprises include, but are not limited to, technologically 
54.22 	innovative industries, value-added manufacturing, and information industries. Loan 
54.23 	applications given preliminary approval by the nonprofit corporation must be forwarded to 
54.24 	the board for approval. The commissioner must give final approval for each loan or loan 
54.25 	guarantee made by the nonprofit corporation. The amount of the state funds contributed to 
54.26 	any loan or loan guarantee may not exceed 50 percent of each loan.

54.27 	Sec. 24. Minnesota Statutes 2014, section 116M.18, subdivision 4, is amended to read:
54.28 		Subd. 4.Business loan criteria. (a) The criteria in this subdivision apply to loans 
54.29 	made or guaranteed by nonprofit corporations under the urban challenge grant program.
54.30 	(b) Loans or guarantees must be made to businesses that are not likely to undertake 
54.31 	a project for which loans are sought without assistance from the urban challenge grant 
54.32 	program.
55.1 	(c) A loan or guarantee must be used for a project designed to benefit persons in 
55.2 	low-income areas through the creation of job or business opportunities for them. Priority 
55.3 	must be given for loans to the lowest income areas.
55.4 	(d) (c) The minimum state contribution to a loan or guarantee is $5,000 and the 
55.5 	maximum is $150,000.
55.6 	(e) (d) The state contribution must be matched by at least an equal amount of new 
55.7 	private investment.
55.8 	(f) (e) A loan may not be used for a retail development project.
55.9 	(g) (f) The business must agree to work with job referral networks that focus on 
55.10 	minority applicants from low-income areas.

55.11 	Sec. 25. Minnesota Statutes 2014, section 116M.18, subdivision 8, is amended to read:
55.12 		Subd. 8.Reporting requirements. A nonprofit corporation that receives a 
55.13 	challenge grant shall:
55.14 	(1) submit an annual report to the board by September 30 of each year that includes a 
55.15 	description of projects supported by the urban challenge grant program, an account of loans 
55.16 	made during the calendar year, the program's impact on minority business enterprises and 
55.17 	job creation for minority persons and low-income persons in low-income areas, the source 
55.18 	and amount of money collected and distributed by the urban challenge grant program, the 
55.19 	program's assets and liabilities, and an explanation of administrative expenses; and
55.20 	(2) provide for an independent annual audit to be performed in accordance with 
55.21 	generally accepted accounting practices and auditing standards and submit a copy of each 
55.22 	annual audit report to the board.

55.23 	Sec. 26. Minnesota Statutes 2014, section 268A.01, subdivision 6, is amended to read:
55.24 		Subd. 6.Community rehabilitation facility provider. "Community rehabilitation 
55.25 	facility provider" means an entity which meets the definition of community rehabilitation 
55.26 	program in the federal Rehabilitation Act of 1973, as amended. However, for the 
55.27 	purposes of sections 268A.03, clause (1), 268A.06, 268A.085, and 268A.15, community 
55.28 	rehabilitation facility provider means an a nonprofit or public  entity which is operated for 
55.29 	the primary purpose of providing or facilitating employment for persons with a severe 
55.30 	disability that provides at least one extended employment subprogram for persons with 
55.31 	the most significant disabilities.

55.32 	EFFECTIVE DATE. This section is effective July 1, 2015.

55.33 	Sec. 27. Minnesota Statutes 2014, section 268A.01, subdivision 10, is amended to read:
56.1 		Subd. 10.Extended employment program. "Extended employment program" 
56.2 	means the center-based noncompetitive employment and supported employment 
56.3 	subprograms.

56.4 	Sec. 28. Minnesota Statutes 2014, section 268A.01, is amended by adding a 
56.5 	subdivision to read:
56.6 		Subd. 15.Noncompetitive employment. "Noncompetitive employment" means 
56.7 	paid work: 
56.8 	(1) that is performed on a full-time or part-time basis, including self-employment, 
56.9 	for which the person is compensated at a rate that is less than the higher rate specified in 
56.10 	the Fair Labor Standards Act of 1938, United States Code, title 29, section 206, subsection 
56.11 	(a)(1), or the rate specified in the applicable state or local minimum wage law; and 
56.12 	(2)(i) for which the person is paid less than the customary rate paid by the employer 
56.13 	for the same or similar work performed by other nondisabled employees who are similarly 
56.14 	situated in similar occupations by the same employer and who have similar training, 
56.15 	experience, and skills; or 
56.16 	(ii) which is performed at a location where the employee does not interact with 
56.17 	nondisabled persons, not including supervisory personnel or persons who are providing 
56.18 	services to the employee, to the same extent that nondisabled persons who are in 
56.19 	comparable positions interact with other persons.

56.20 	Sec. 29. Minnesota Statutes 2014, section 268A.03, is amended to read:
56.21 	268A.03 POWERS AND DUTIES.
56.22 	The commissioner shall:
56.23 	(1) certify the community rehabilitation facilities providers to offer extended 
56.24 	employment programs, grant funds to the extended employment programs, and perform 
56.25 	the duties as specified in section 268A.15;
56.26 	(2) provide vocational rehabilitation services to persons with disabilities in 
56.27 	accordance with the federal Rehabilitation Act of 1973, Public Law 93-112, as amended. 
56.28 	Persons with a disability are entitled to free choice of vendor for any medical, dental, 
56.29 	prosthetic, or orthotic services provided under this paragraph;
56.30 	(3) expend funds and provide technical assistance for the establishment, 
56.31 	improvement, maintenance, or extension of public and other nonprofit rehabilitation 
56.32 	facilities or centers;
56.33 	(4) maintain a contractual or regulatory relationship with the United States as 
56.34 	authorized by the Social Security Act, as amended. Under this relationship, the state will 
57.1 	undertake to make determinations referred to in those public laws with respect to all 
57.2 	individuals in Minnesota, or with respect to a class or classes of individuals in this state that 
57.3 	is designated in the agreement at the state's request. It is the purpose of this relationship to 
57.4 	permit the citizens of this state to obtain all benefits available under federal law;
57.5 	(5) provide an in-service training program for rehabilitation services employees by 
57.6 	paying for its direct costs with state and federal funds;
57.7 	(6) conduct research and demonstration projects; provide training and instruction, 
57.8 	including establishment and maintenance of research fellowships and traineeships, along 
57.9 	with all necessary stipends and allowances; disseminate information to persons with a 
57.10 	disability and the general public; and provide technical assistance relating to vocational 
57.11 	rehabilitation and independent living;
57.12 	(7) receive and disburse pursuant to law money and gifts available from 
57.13 	governmental and private sources including, but not limited to, the federal Department 
57.14 	of Education and the Social Security Administration, for the purpose of vocational 
57.15 	rehabilitation or independent living;
57.16 	(8) design all state plans for vocational rehabilitation or independent living services 
57.17 	required as a condition to the receipt and disbursement of any money available from 
57.18 	the federal government;
57.19 	(9) cooperate with other public or private agencies or organizations for the purpose 
57.20 	of vocational rehabilitation or independent living. Money received from school districts, 
57.21 	governmental subdivisions, mental health centers or boards, and private nonprofit 
57.22 	organizations is appropriated to the commissioner for conducting joint or cooperative 
57.23 	vocational rehabilitation or independent living programs;
57.24 	(10) enter into contractual arrangements with instrumentalities of federal, state, or 
57.25 	local government and with private individuals, organizations, agencies, or facilities with 
57.26 	respect to providing vocational rehabilitation or independent living services;
57.27 	(11) take other actions required by state and federal legislation relating to vocational 
57.28 	rehabilitation, independent living, and disability determination programs;
57.29 	(12) hire staff and arrange services and facilities necessary to perform the duties 
57.30 	and powers specified in this section; and
57.31 	(13) adopt, amend, suspend, or repeal rules necessary to implement or make 
57.32 	specific programs that the commissioner by sections 268A.01 to 268A.15 is empowered 
57.33 	to administer.

57.34 	Sec. 30. Minnesota Statutes 2014, section 268A.06, is amended to read:
57.35 	268A.06 COMMUNITY REHABILITATION FACILITIES PROVIDERS.
58.1 		Subdivision 1.Application. Any city, town, county, nonprofit corporation, 
58.2 	regional treatment center, or any combination thereof, may apply to the commissioner for 
58.3 	assistance in establishing or operating a community rehabilitation facility an extended 
58.4 	employment program. Application for assistance must be on forms prescribed by the 
58.5 	commissioner. An applicant is not eligible for a grant under this section unless its audited 
58.6 	financial statements of the prior fiscal year have been approved by the commissioner.
58.7 		Subd. 2.Funding. In order to provide the necessary funds for extended employment 
58.8 	programs offered by a community rehabilitation facility provider, the governing body of 
58.9 	any city, town, or county may expend money which may be available for such purposes in 
58.10 	the general fund, and may levy a tax on the taxable property in the city, town, or county. Any 
58.11 	city, town, county, or nonprofit corporation may accept gifts or grants from any source for 
58.12 	the rehabilitation facility extended employment program. Any money appropriated, taxed, 
58.13 	or received as a gift or grant may be used to match funds available on a matching basis.

58.14 	Sec. 31. Minnesota Statutes 2014, section 268A.07, is amended to read:
58.15 	268A.07 REQUIREMENTS FOR CERTIFICATION.
58.16 		Subdivision 1.Benefits. A community rehabilitation facility provider must, as 
58.17 	a condition for receiving program certification, provide employees in center-based 
58.18 	noncompetitive employment with personnel benefits prescribed in rules adopted by the 
58.19 	commissioner of the Department of employment and economic development.
58.20 		Subd. 2.Grievance procedure. A community rehabilitation facility provider must, 
58.21 	as a condition for receiving program certification, provide to employees in center-based 
58.22 	noncompetitive employment subprograms, a grievance procedure which has as its final 
58.23 	step provisions for final and binding arbitration.

58.24 	Sec. 32. Minnesota Statutes 2014, section 268A.085, is amended to read:
58.25 	268A.085 COMMUNITY REHABILITATION FACILITY PROVIDER 
58.26 	GOVERNING BOARDS.
58.27 		Subdivision 1.Appointment; membership. Every city, town, county, nonprofit 
58.28 	corporation, or combination thereof establishing a rehabilitation facility an extended 
58.29 	employment program shall appoint a rehabilitation facility governing board of no fewer 
58.30 	than seven voting members before becoming eligible for the assistance provided by 
58.31 	sections 268A.06 to 268A.15. When any city, town, or county singly establishes such a 
58.32 	rehabilitation facility an extended employment program, the governing board shall be 
58.33 	appointed by the chief executive officer of the city or the chair of the governing board 
58.34 	of the county or town. When any combination of cities, towns, counties, or nonprofit 
59.1 	corporations establishes a rehabilitation facility an extended employment program, the 
59.2 	chief executive officers of the cities, nonprofit corporations, and the chairs of the governing 
59.3 	bodies of the counties or towns shall appoint the board. If a nonprofit corporation singly 
59.4 	establishes a rehabilitation facility an extended employment program, the corporation 
59.5 	shall appoint the board of directors. Membership on a board shall be representative of 
59.6 	the community served and shall include a person with a disability. If a county establishes 
59.7 	an extended employment program and manages the program with county employees, the 
59.8 	governing board shall be the county board of commissioners, and other provisions of this 
59.9 	chapter pertaining to membership on the governing board do not apply.
59.10 		Subd. 2.Duties. Subject to the provisions of sections 268A.06 to 268A.15 and the 
59.11 	rules of the department, each rehabilitation facility governing board shall:
59.12 	(1) review and evaluate the need for extended employment programs offered by the 
59.13 	rehabilitation facility provided under sections 268A.06 to 268A.15;
59.14 	(2) recruit and promote local financial support for extended employment programs 
59.15 	from private sources including: the United Way; business, industrial, and private 
59.16 	foundations; voluntary agencies; and other lawful sources, and promote public support 
59.17 	for municipal and county appropriations;
59.18 	(3) promote, arrange, and implement working agreements with other educational 
59.19 	and social service agencies, both public and private, and any other allied agencies; and
59.20 	(4) when an extended employment program offered by the rehabilitation facility is 
59.21 	certified, act as the its administrator of the rehabilitation facility and its programs for 
59.22 	purposes of this chapter.

59.23 	Sec. 33. Minnesota Statutes 2014, section 268A.15, subdivision 3, is amended to read:
59.24 		Subd. 3.Rule authority. The commissioner shall adopt rules on an individual's 
59.25 	eligibility for the extended employment program, the certification of community 
59.26 	rehabilitation facilities providers, and the methods, criteria, and units of distribution for 
59.27 	the allocation of state grant funds to certified rehabilitation facilities extended employment 
59.28 	program providers. In determining the allocation, the commissioner must consider the 
59.29 	economic conditions of the community and the performance of community rehabilitation 
59.30 	facilities providers relative to their impact on the economic status of workers in the 
59.31 	extended employment program.

59.32 	Sec. 34. Minnesota Statutes 2014, section 469.049, is amended to read:
59.33 	469.049 ESTABLISHMENT; CHARACTERISTICS.
60.1 		Subdivision 1.Saint Paul, Duluth; establishment. The Port Authority of Saint 
60.2 	Paul and the seaway port authority of Duluth are established. The Seaway Port Authority 
60.3 	of Duluth may also be known as the Duluth Seaway Port Authority. The Port Authority of 
60.4 	Saint Paul may also be known as the Saint Paul Port Authority, and the Saint Paul Port 
60.5 	Authority may file one or more certificates of assumed name with the secretary of state, as 
60.6 	provided in sections 333.01 to 333.065.
60.7 		Subd. 2.Public body characteristics. A port authority is a body politic and 
60.8 	corporate with the right to sue and be sued in its own name.
60.9 	A port authority is a governmental subdivision under section 282.01 and a political 
60.10 	subdivision.
60.11 	A port authority carries out an essential governmental function of the state when it 
60.12 	exercises its power, but the authority is not immune from liability because of this.

60.13 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day 
60.14 	following timely compliance of the governing body of the Port Authority of Saint Paul, and 
60.15 	its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

60.16 	Sec. 35. Minnesota Statutes 2014, section 469.050, subdivision 4, is amended to read:
60.17 		Subd. 4.Term, vacancies. (a) The first commissioners of a three-member 
60.18 	commission are appointed for initial terms as follows: one for two years; one for four 
60.19 	years; and one for six years. The first commissioners of a seven-member commission are 
60.20 	appointed for initial terms as follows: one member for a term of one, two, three, four, and 
60.21 	five years, respectively, and two members for terms of six years. For subsequent terms, 
60.22 	the term is six years. A vacancy is created in Saint Paul when a city council member of the 
60.23 	authority ends council membership and in Duluth when a county board member of the 
60.24 	authority ends county board membership. A vacancy on any port authority must be filled 
60.25 	by the appointing authority for the balance of the term subject to the same approval and 
60.26 	consent, if any, required for an appointment for a full term. For Duluth, if the governor 
60.27 	or the county board fails to make a required appointment within 60 days after a vacancy 
60.28 	occurs, the city council has sole power to appoint a successor.
60.29 	(b) The term of each commissioner of the Saint Paul Port Authority begins August 1 
60.30 	of the year in which the commissioner is appointed and ends July 31 of the sixth year. 
60.31 	Notwithstanding the end of a term of appointment, a commissioner shall serve until 
60.32 	reappointed or a new commissioner has been appointed and taken office.

61.1 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day 
61.2 	following timely compliance of the governing body of the Port Authority of Saint Paul, and 
61.3 	its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

61.4 	Sec. 36. Minnesota Statutes 2014, section 469.084, subdivision 3, is amended to read:
61.5 		Subd. 3.Consent for city land. The port authority must not take lands owned, 
61.6 	controlled, or used by the city of St. Paul without consent of the city council, or owned, 
61.7 	controlled, or used by Ramsey County without consent of the county board.

61.8 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day 
61.9 	following timely compliance of the governing body of the Port Authority of Saint Paul, and 
61.10 	its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

61.11 	Sec. 37. Minnesota Statutes 2014, section 469.084, subdivision 4, is amended to read:
61.12 		Subd. 4.Port jurisdiction. For all other recreation purposes the port authority has 
61.13 	jurisdiction over the use of all the navigable rivers or lakes and all the parks and recreation 
61.14 	facilities abutting the rivers and lakes within its port district.

61.15 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day 
61.16 	following timely compliance of the governing body of the Port Authority of Saint Paul, and 
61.17 	its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

61.18 	Sec. 38. Minnesota Statutes 2014, section 469.084, subdivision 8, is amended to read:
61.19 		Subd. 8.Relation to industrial development provisions. Notwithstanding any 
61.20 	law to the contrary, the port authority of the city of St. Paul, under sections 469.048 to 
61.21 	469.068 and this section, may do what a redevelopment agency may do or must do under 
61.22 	sections 469.152 to 469.165 to further any of the purposes of sections 469.048 to 469.068
61.23 	and subdivisions 1 to 8. The port authority may use its powers and duties under sections 
61.24 	469.048 to 469.068 and subdivisions 1 to 8 to further the purposes of sections 469.152
61.25 	to 469.165. The powers and duties in subdivisions 1 to 8 are in addition to the powers 
61.26 	and duties of the port authority under sections 469.048 to 469.068, and under sections 
61.27 	469.152 to 469.165. The port authority may use its powers for industrial development or 
61.28 	to establish industrial development districts. If the term "industrial" is used in relation to 
61.29 	industrial development purposes under sections 469.048 to 469.068, the term includes 
61.30 	"economic" and "economic development." The port authority may work with and provide 
61.31 	services to any federal or state agency, county, city, or other governmental unit or agency 
61.32 	with the written consent of that agency or governmental unit.

62.1 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day 
62.2 	following timely compliance of the governing body of the Port Authority of Saint Paul, and 
62.3 	its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

62.4 	Sec. 39. Minnesota Statutes 2014, section 469.084, subdivision 9, is amended to read:
62.5 		Subd. 9.May join in supplying small business capital. Notwithstanding any 
62.6 	contrary law, the port authority of the city of St. Paul may participate with public or 
62.7 	private corporations or other entities, whose purpose is to provide venture capital to small 
62.8 	businesses that have facilities located or to be located in the port district. For that purpose 
62.9 	the port authority may use not more than ten percent of available annual net income 
62.10 	or $400,000 annually, whichever is less, to acquire or invest in securities of, and enter 
62.11 	into financing arrangements and related agreements with, the corporations or entities. 
62.12 	The participation by the port authority must not exceed in any year 25 percent of the 
62.13 	total amount of funds provided for venture capital purposes by all of the participants. 
62.14 	The corporation or entity shall report in writing each month to the commissioners of the 
62.15 	port authority all investment and other action taken by it since the last report. Funds 
62.16 	contributed to the corporation or entity must be invested pro rata with each contributor of 
62.17 	capital taking proportional risks on each investment. As used in this subdivision, the term 
62.18 	"small business" has the meaning given it in section 645.445, subdivision 2.

62.19 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day 
62.20 	following timely compliance of the governing body of the Port Authority of Saint Paul, and 
62.21 	its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

62.22 	Sec. 40. Minnesota Statutes 2014, section 469.084, subdivision 10, is amended to read:
62.23 		Subd. 10.Recreation facilities on Mississippi River. The port authority of the 
62.24 	city of Saint Paul has jurisdiction over the use of the Mississippi River for recreation 
62.25 	purposes within its port district and may acquire and may spend port authority money for 
62.26 	lands abutting the river within the port district to construct, operate directly, by lease or 
62.27 	otherwise, and maintain recreation facilities. The authority shall establish rules on the 
62.28 	use of the river and abutting lands, either individually, or in cooperation with the federal 
62.29 	government or its agencies, Ramsey County, the city of Saint Paul, the state, or a state 
62.30 	agency, or political subdivision.

62.31 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day 
62.32 	following timely compliance of the governing body of the Port Authority of Saint Paul, and 
62.33 	its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

63.1 	Sec. 41. Minnesota Statutes 2014, section 469.084, subdivision 14, is amended to read:
63.2 		Subd. 14.Bond for treasurer and assistant treasurer. The treasurer and assistant 
63.3 	treasurer of the port authority of the city of Saint Paul shall give bond to the state in sums 
63.4 	not to exceed $25,000 and $10,000 respectively. The bonds must be conditioned for the 
63.5 	faithful discharge of their duties. The bonds must be approved as to both form and surety 
63.6 	by the port authority and must be filed with its secretary. The amount of the bonds must be 
63.7 	set at least annually by the port authority.

63.8 	EFFECTIVE DATE; LOCAL APPROVAL. This section is effective the day 
63.9 	following timely compliance of the governing body of the Port Authority of Saint Paul, and 
63.10 	its chief clerical officer, with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

63.11 	Sec. 42. SKILLED MANUFACTURING REPORT.
63.12 	The commissioner shall coordinate and monitor customized training programs for 
63.13 	skilled manufacturing industries at participating MnSCU institutions. By January 15, 
63.14 	2017, the commissioner, in conjunction with each participating MnSCU institution, shall 
63.15 	report to the standing committees of the house of representatives and the senate having 
63.16 	jurisdiction over employment and workforce development. The report must address the 
63.17 	progress and success of the implementation of a customized training program for skilled 
63.18 	manufacturing industries at each participating MnSCU institution. The report must 
63.19 	give recommendations on where a skilled manufacturing customized training program 
63.20 	should next be implemented, taking into consideration all current and potential skilled 
63.21 	manufacturing training providers available.

63.22 	Sec. 43. DIRECTION TO COMMISSIONER; LONG-TERM CARE 
63.23 	WORKFORCE DEVELOPMENT.
 63.24 	The commissioner of employment and economic development, in consultation 
63.25 	with the commissioner of health, shall review existing workforce development programs 
63.26 	in order to further the advancement of long-term care careers in rural Minnesota. The 
63.27 	commissioner shall report recommendations regarding training, retaining, and connecting 
63.28 	employees to long-term care facilities in rural Minnesota to the chairs and ranking 
63.29 	minority members of the legislative committees with jurisdiction over long-term care and 
63.30 	workforce development by February 1, 2016.

63.31 	Sec. 44.  REPEALER.
 63.32 	Minnesota Statutes 2014, sections 116U.26; and 469.084, subdivisions 11 and 12, 
63.33 	are repealed.

64.1 	ARTICLE 3
64.2 	HOUSING

64.3 	Section 1. Minnesota Statutes 2014, section 327.20, subdivision 1, is amended to read:
64.4 		Subdivision 1.Rules. No domestic animals or house pets of occupants of 
64.5 	manufactured home parks or recreational camping areas shall be allowed to run at large, 
64.6 	or commit any nuisances within the limits of a manufactured home park or recreational 
64.7 	camping area. Each manufactured home park or recreational camping area licensed under 
64.8 	the provisions of sections 327.10, 327.11, and 327.14 to 327.28 shall, among other things, 
64.9 	provide for the following:
64.10 	(1) A responsible attendant or caretaker shall be in charge of every manufactured 
64.11 	home park or recreational camping area at all times, who shall maintain the park or 
64.12 	area, and its facilities and equipment in a clean, orderly and sanitary condition. In any 
64.13 	manufactured home park containing more than 50 lots, the attendant, caretaker, or other 
64.14 	responsible park employee, shall be readily available at all times in case of emergency.
64.15 	(2) All manufactured home parks shall be well drained and be located so that the 
64.16 	drainage of the park area will not endanger any water supply. No wastewater from 
64.17 	manufactured homes or recreational camping vehicles shall be deposited on the surface of 
64.18 	the ground. All sewage and other water carried wastes shall be discharged into a municipal 
64.19 	sewage system whenever available. When a municipal sewage system is not available, a 
64.20 	sewage disposal system acceptable to the state commissioner of health shall be provided.
64.21 	(3) No manufactured home shall be located closer than three feet to the side lot lines 
64.22 	of a manufactured home park, if the abutting property is improved property, or closer than 
64.23 	ten feet to a public street or alley. Each individual site shall abut or face on a driveway 
64.24 	or clear unoccupied space of not less than 16 feet in width, which space shall have 
64.25 	unobstructed access to a public highway or alley. There shall be an open space of at least 
64.26 	ten feet between the sides of adjacent manufactured homes including their attachments 
64.27 	and at least three feet between manufactured homes when parked end to end. The space 
64.28 	between manufactured homes may be used for the parking of motor vehicles and other 
64.29 	property, if the vehicle or other property is parked at least ten feet from the nearest 
64.30 	adjacent manufactured home position. The requirements of this paragraph shall not apply 
64.31 	to recreational camping areas and variances may be granted by the state commissioner 
64.32 	of health in manufactured home parks when the variance is applied for in writing and in 
64.33 	the opinion of the commissioner the variance will not endanger the health, safety, and 
64.34 	welfare of manufactured home park occupants.
65.1 	(4) An adequate supply of water of safe, sanitary quality shall be furnished at each 
65.2 	manufactured home park or recreational camping area. The source of the water supply 
65.3 	shall first be approved by the state Department of Health.
65.4 	(5) All plumbing shall be installed in accordance with the rules of the state 
65.5 	commissioner of labor and industry and the provisions of the Minnesota Plumbing Code.
65.6 	(6) In the case of a manufactured home park with less than ten manufactured homes, 
65.7 	a plan for the sheltering or the safe evacuation to a safe place of shelter of the residents of 
65.8 	the park in times of severe weather conditions, such as tornadoes, high winds, and floods. 
65.9 	The shelter or evacuation plan shall be developed with the assistance and approval of 
65.10 	the municipality where the park is located and shall be posted at conspicuous locations 
65.11 	throughout the park. The park owner shall provide each resident with a copy of the 
65.12 	approved shelter or evacuation plan, as provided by section 327C.01, subdivision 1c. 
65.13 	Nothing in this paragraph requires the Department of Health to review or approve any 
65.14 	shelter or evacuation plan developed by a park. Failure of a municipality to approve a plan 
65.15 	submitted by a park shall not be grounds for action against the park by the Department of 
65.16 	Health if the park has made a good faith effort to develop the plan and obtain municipal 
65.17 	approval.
65.18 	(7) A manufactured home park with ten or more manufactured homes, licensed prior 
65.19 	to March 1, 1988, shall provide a safe place of shelter for park residents or a plan for the 
65.20 	evacuation of park residents to a safe place of shelter within a reasonable distance of the 
65.21 	park for use by park residents in times of severe weather, including tornadoes and high 
65.22 	winds. The shelter or evacuation plan must be approved by the municipality by March 1, 
65.23 	1989. The municipality may require the park owner to construct a shelter if it determines 
65.24 	that a safe place of shelter is not available within a reasonable distance from the park. A 
65.25 	copy of the municipal approval and the plan shall be submitted by the park owner to the 
65.26 	Department of Health. The park owner shall provide each resident with a copy of the 
65.27 	approved shelter or evacuation plan, as provided by section 327C.01, subdivision 1c.
65.28 	(8) A manufactured home park with ten or more manufactured homes, receiving 
65.29 	an initial license after March 1, 1988, must provide the type of shelter required by 
65.30 	section 327.205, except that for manufactured home parks established as temporary, 
65.31 	emergency housing in a disaster area declared by the President of the United States or 
65.32 	the governor, an approved evacuation plan may be provided in lieu of a shelter for a 
65.33 	period not exceeding 18 months.
65.34 	(9) For the purposes of this subdivision, "park owner" and "resident" have the 
65.35 	meanings given them in section 327C.01.

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

66.1 	Sec. 2. Minnesota Statutes 2014, section 462A.33, subdivision 1, is amended to read:
66.2 		Subdivision 1.Created. The economic development and housing challenge 
66.3 	program is created to be administered by the agency.
66.4 	(a) The program shall provide grants or loans for the purpose of construction, 
66.5 	acquisition, rehabilitation, demolition or removal of existing structures, construction 
66.6 	financing, permanent financing, interest rate reduction, refinancing, and gap financing of 
66.7 	housing to support economic development and redevelopment activities or job creation or 
66.8 	job preservation within a community or region by meeting locally identified housing needs.
66.9 	Gap financing is either:
66.10 	(1) the difference between the costs of the property, including acquisition, demolition, 
66.11 	rehabilitation, and construction, and the market value of the property upon sale; or
66.12 	(2) the difference between the cost of the property and the amount the targeted 
66.13 	household can afford for housing, based on industry standards and practices.
66.14 	(b) Preference for grants and loans shall be given to comparable proposals that include 
66.15 	regulatory changes or waivers that result in identifiable cost avoidance or cost reductions, 
66.16 	such as increased density, flexibility in site development standards, or zoning code 
66.17 	requirements. Preference must also be given among comparable proposals to proposals 
66.18 	for projects that are accessible to transportation systems, jobs, schools, and other services.
66.19 	(c) If a grant or loan is used for demolition or removal of existing structures, the 
66.20 	cleared land must be used for the construction of housing to be owned or rented by persons 
66.21 	who meet the income limits of this section or for other housing-related purposes that 
66.22 	primarily benefit the persons residing in the adjacent housing. In making selections for 
66.23 	grants or loans for projects that demolish affordable housing units, the agency must review 
66.24 	the potential displacement of residents and consider the extent to which displacement of 
66.25 	residents is minimized.
66.26 	(d) Fifty percent of the funds appropriated for this section must be for projects 
66.27 	located in the metropolitan area, as defined in section 473.121, subdivision 2, and 50 
66.28 	percent must be for projects outside the metropolitan area, as defined in section 473.121, 
66.29 	subdivision 2. Funds not awarded in a fiscal year may be carried over and used without 
66.30 	geographic restriction.

66.31 	EFFECTIVE DATE. This section is effective August 1, 2017.

66.32 	Sec. 3. Minnesota Statutes 2014, section 473.145, is amended to read:
66.33 	473.145 DEVELOPMENT GUIDE.
67.1 	The Metropolitan Council shall prepare and adopt, after appropriate study and 
67.2 	such public hearings as may be necessary, a comprehensive development guide for the 
67.3 	metropolitan area. It shall consist of a compilation of policy statements, goals, standards, 
67.4 	programs, and maps prescribing guides for the orderly and economical development, 
67.5 	public and private, of the metropolitan area. The comprehensive development guide shall 
67.6 	recognize and encompass physical, social, or economic needs of the metropolitan area and 
67.7 	those future developments which will have an impact on the entire area including but not 
67.8 	limited to such matters as land use, parks and open space land needs, the necessity for 
67.9 	and location of airports, highways, transit facilities, public hospitals, libraries, schools, 
67.10 	and other public buildings. Notwithstanding any council action to adopt it, a plan or plan 
67.11 	element relating to housing does not take effect until a law is enacted approving the plan.

67.12 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
67.13 	final enactment and applies to plans adopted before, on, or after that date. This section 
67.14 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and 
67.15 	Washington.

67.16 	Sec. 4. Minnesota Statutes 2014, section 473.254, subdivision 2, is amended to read:
67.17 		Subd. 2.Affordable, life-cycle goals. (a) The council shall negotiate with each 
67.18 	municipality to establish affordable and life-cycle housing goals for that municipality that 
67.19 	are consistent with and promote the policies of the Metropolitan Council as provided in the 
67.20 	adopted Metropolitan Development Guide. The council shall adopt, by resolution after a 
67.21 	public hearing, the negotiated affordable and life-cycle housing goals for each municipality 
67.22 	by January 15, 1996, and by January 15 in each succeeding year for each municipality 
67.23 	newly electing to participate in the program or for each municipality with which new 
67.24 	housing goals have been negotiated. By June 30, 1996, and by June 30 in each succeeding 
67.25 	year for each municipality newly electing to participate in the program or for each 
67.26 	municipality with which new housing goals have been negotiated, each municipality shall 
67.27 	identify to the council the actions it plans to take to meet the established housing goals.
67.28 	(b) Beginning in 2016, the negotiated affordable and life-cycle housing goals for 
67.29 	each municipality must be submitted by January 15 each year to the chairs and ranking 
67.30 	minority members of the legislative committees with jurisdiction over the Metropolitan 
67.31 	Council and housing policy and finance, and may be adopted by the council only after a 
67.32 	law is enacted approving the goals or the legislature has adjourned its regular session for 
67.33 	that calendar year without taking any action on the matter.

68.1 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
68.2 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
68.3 	Scott, and Washington.

68.4 	Sec. 5. Minnesota Statutes 2014, section 473.254, subdivision 3a, is amended to read:
68.5 		Subd. 3a.Affordable, life-cycle housing opportunities amount. (a) Each 
68.6 	municipality's "affordable and life-cycle housing opportunities amount" for that year 
68.7 	must be determined annually by the council using the method in this subdivision. The 
68.8 	affordable and life-cycle housing opportunities amount must be determined for each 
68.9 	calendar year for all municipalities in the metropolitan area.
68.10 	(b) The council must allocate to each municipality its portion of the $1,000,000 of 
68.11 	the revenue generated by the levy authorized in section 473.249 which is credited to the 
68.12 	local housing incentives account pursuant to subdivision 5, paragraph (b). The allocation 
68.13 	must be made by determining the amount levied for and payable in each municipality in 
68.14 	the previous calendar year pursuant to the council levy in section 473.249 divided by the 
68.15 	total amount levied for and payable in the metropolitan area in the previous calendar year 
68.16 	pursuant to such levy and multiplying that result by $1,000,000.
68.17 	(c) The council must also determine the amount levied for and payable in each 
68.18 	municipality in the previous calendar year pursuant to the council levy in section 473.253, 
68.19 	subdivision 1.
68.20 	(d) A municipality's affordable and life-cycle housing opportunities amount for the 
68.21 	calendar year is the sum of the amounts determined under paragraphs (b) and (c).
68.22 	(e) The council must report the council's estimated amount under paragraph (d) to 
68.23 	the chairs and ranking minority members of the legislative committees with jurisdiction 
68.24 	over the Metropolitan Council and housing policy and finance by March 15 each year. The 
68.25 	legislature may approve, modify, or reject the amounts the council will use in paragraph (f). 
68.26 	If no law is enacted to approve, modify, or reject the amounts during the regular legislative 
68.27 	session for that calendar year, the council may proceed with its proposed amounts.
68.28 	(e) (f) By August 1 of each year, the council must notify each municipality of its 
68.29 	affordable and life-cycle housing opportunities amount for the following calendar year 
68.30 	determined by the method in this subdivision.

68.31 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
68.32 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
68.33 	Scott, and Washington.

68.34 	Sec. 6. Laws 1994, chapter 493, section 1, is amended to read:
69.1 	Section 1. OLMSTED COUNTY HOUSING AND REDEVELOPMENT 
69.2 	AUTHORITY; MEMBERS.
 69.3 		Subdivision 1.City and county appointees as HRA. Notwithstanding Minnesota 
69.4 	Statutes, section 469.006, the Olmsted County Housing and Redevelopment Authority 
69.5 	has seven members, four appointed by the city council of the city of Rochester and three 
69.6 	appointed by the county board of Olmsted county. Of the first four appointees of the city 
69.7 	council under this act, one must be appointed for a one-year term, two for two-year terms, 
69.8 	and one for a three-year term. Of the first three appointees of the county board under this 
69.9 	act, one must be appointed for a one-year term, one for a two-year term, and one for a 
69.10 	three-year term. Later appointments to fill terms are for five years. An appointment to a 
69.11 	vacancy is for the unexpired term.
69.12 		Subd. 2.County board may serve as HRA. Notwithstanding subdivision 1, the 
69.13 	county board may by resolution provide that the Olmsted County Board will constitute 
69.14 	the county housing and redevelopment authority and the appointment procedures in 
69.15 	subdivision 1 shall not apply. If the Olmsted County Board acts under this subdivision, it 
69.16 	must also provide in the resolution for any additional members needed to comply with 
69.17 	Code of Federal Regulations, title 24, part 964.

69.18 	EFFECTIVE DATE; TRANSITION. This section is effective the day after the 
69.19 	latter of the city council of the city of Rochester and the Olmsted County Board of 
69.20 	Commissioners and their respective chief clerical officers timely complete their compliance 
69.21 	with Minnesota Statutes, section 645.021, subdivisions 2 and 3. Terms of members of the 
69.22 	Olmsted County Housing and Redevelopment Authority serving on or after the effective 
69.23 	date of this section terminate as provided in the resolution adopted by the county board.

69.24 	ARTICLE 4
69.25 	LABOR AND INDUSTRY

69.26 	Section 1. Minnesota Statutes 2014, section 79.251, subdivision 1, is amended to read:
69.27 		Subdivision 1.General duties of commissioner. (a)(1) The commissioner shall 
69.28 	have all the usual powers and authorities necessary for the discharge of the commissioner's 
69.29 	duties under this section and may contract with individuals in discharge of those duties. 
69.30 	The commissioner shall audit the reserves established (i) for individual cases arising under 
69.31 	policies and contracts of coverage issued under subdivision 4 and (ii) for the total book 
69.32 	of business issued under subdivision 4. If the commissioner determines on the basis of 
69.33 	an audit that there is an excess surplus in the assigned risk plan, the commissioner must 
69.34 	notify the commissioner of management and budget who shall transfer assets of the plan 
70.1 	equal to the excess surplus to the budget reserve account in the general fund assigned risk 
70.2 	safety account in the special compensation fund in the state treasury for grants under 
70.3 	section 79.253.
70.4 	(2) The commissioner shall monitor the operations of section 79.252 and this section 
70.5 	and shall periodically make recommendations to the governor and legislature when 
70.6 	appropriate, for improvement in the operation of those sections.
70.7 	(3) All insurers and self-insurance administrators issuing policies or contracts under 
70.8 	subdivision 4 shall pay to the commissioner a .25 percent assessment on premiums for 
70.9 	policies and contracts of coverage issued under subdivision 4 for the purpose of defraying 
70.10 	the costs of performing the duties under clauses (1) and (2). Proceeds of the assessment 
70.11 	shall be deposited in the state treasury and credited to the general fund.
70.12 	(4) The assigned risk plan shall not be deemed a state agency.
70.13 	(5) The commissioner shall monitor and have jurisdiction over all reserves 
70.14 	maintained for assigned risk plan losses.
70.15 	(b) As used in this subdivision, "excess surplus" means the amount of assigned 
70.16 	risk plan assets in excess of the amount needed to pay all current liabilities of the plan, 
70.17 	including, but not limited to:
70.18 	(1) administrative expenses;
70.19 	(2) benefit claims; and
70.20 	(3) if the assigned risk plan is dissolved under subdivision 8, the amounts that would 
70.21 	be due insurers who have paid assessments to the plan.

70.22 	Sec. 2. [175.45] COMPETENCY STANDARDS FOR DUAL TRAINING.
70.23 		Subdivision 1.Duties; goal. The commissioner of labor and industry shall identify 
70.24 	competency standards for dual training. The goal of dual training is to provide current 
70.25 	employees of an employer with training to acquire competencies that the employer 
70.26 	requires. The standards shall be identified for employment in occupations in advanced 
70.27 	manufacturing, health care services, information technology, and agriculture. Competency 
70.28 	standards are not rules and are exempt from the rulemaking provisions of chapter 14, and 
70.29 	the provisions in section 14.386 concerning exempt rules do not apply.
70.30 		Subd. 2.Definition; competency standard.  For purposes of this section, 
70.31 	"competency standards" means the specific knowledge and skills necessary for a particular 
70.32 	occupation.
70.33 		Subd. 3.Competency standard identification process. In identifying competency 
70.34 	standards, the commissioner shall consult with the commissioner of employment and 
70.35 	economic development and convene recognized industry experts, representative employers, 
71.1 	higher education institutions, and representatives of labor to assist in identifying credible 
71.2 	competency standards. Competency standards must be based on recognized international 
71.3 	and national standards, to the extent that such standards are available and practical.
71.4 		Subd. 4.Duties. The commissioner shall:
71.5 	(1) establish competency standards for entry level and higher skill levels;
71.6 	(2) verify the competency standards and skill levels and their transferability by 
71.7 	subject matter with expert representatives of each respective industry;
71.8 	(3) create and execute a plan for dual training outreach, development, and awareness;
71.9 	(4) develop models for Minnesota educational institutions to engage in providing 
71.10 	education and training to meet the competency standards established;
71.11 	(5) encourage participation by employers in the standard identification process for 
71.12 	occupations in their industry; and
71.13 	(6) align dual training competency standards with other workforce initiatives.
71.14 		Subd. 5.Notification. The commissioner must communicate identified competency 
71.15 	standards to the commissioner of employment and economic development for the purpose 
71.16 	of the dual training competency grant program under section 116L.31. The commissioner 
71.17 	of labor and industry shall maintain the competency standards on the department's Web site.

71.18 	Sec. 3. Minnesota Statutes 2014, section 177.24, subdivision 1, is amended to read:
71.19 		Subdivision 1.Amount. (a) For purposes of this subdivision, the terms defined in 
71.20 	this paragraph have the meanings given them.
71.21 	(1) "Large employer" means an enterprise whose annual gross volume of sales 
71.22 	made or business done is not less than $500,000 (exclusive of excise taxes at the retail 
71.23 	level that are separately stated) and covered by the Minnesota Fair Labor Standards Act, 
71.24 	sections 177.21 to 177.35.
71.25 	(2) "Small employer" means an enterprise whose annual gross volume of sales made 
71.26 	or business done is less than $500,000 (exclusive of excise taxes at the retail level that 
71.27 	are separately stated) and covered by the Minnesota Fair Labor Standards Act, sections 
71.28 	177.21 to 177.35.
71.29 	(b) Except as otherwise provided in sections 177.21 to 177.35:
71.30 	(1) every large employer must pay each employee wages at a rate of at least:
71.31 	(i) $8.00 per hour beginning August 1, 2014;
71.32 	(ii) $9.00 per hour beginning August 1, 2015;
71.33 	(iii) $9.50 per hour beginning August 1, 2016; and
71.34 	(iv) the rate established under paragraph (f) beginning January 1, 2018; and
71.35 	(2) every small employer must pay each employee at a rate of at least:
72.1 	(i) $6.50 per hour beginning August 1, 2014;
72.2 	(ii) $7.25 per hour beginning August 1, 2015;
72.3 	(iii) $7.75 per hour beginning August 1, 2016; and
72.4 	(iv) the rate established under paragraph (f) beginning January 1, 2018.
72.5 	(c) Notwithstanding paragraph (b), during the first 90 consecutive days of 
72.6 	employment, an employer may pay an employee under the age of 20 years a wage of at least:
72.7 	(1) $6.50 per hour beginning August 1, 2014;
72.8 	(2) $7.25 per hour beginning August 1, 2015;
72.9 	(3) $7.75 per hour beginning August 1, 2016; and
72.10 	(4) the rate established under paragraph (f) beginning January 1, 2018.
72.11 	No employer may take any action to displace an employee, including a partial 
72.12 	displacement through a reduction in hours, wages, or employment benefits, in order to 
72.13 	hire an employee at the wage authorized in this paragraph.
72.14 	(d) Notwithstanding paragraph (b), an employer that is a "hotel or motel," "lodging 
72.15 	establishment," or "resort" as defined in Minnesota Statutes 2012, section 157.15, 
72.16 	subdivisions 7, 8, and 11, must pay an employee working under a contract with the 
72.17 	employer that includes the provision by the employer of a food or lodging benefit, if the 
72.18 	employee is working under authority of a summer work travel exchange visitor program 
72.19 	(J) nonimmigrant visa, a wage of at least:
72.20 	(1) $7.25 per hour beginning August 1, 2014;
72.21 	(2) $7.50 per hour beginning August 1, 2015;
72.22 	(3) $7.75 per hour beginning August 1, 2016; and
72.23 	(4) the rate established under paragraph (f) beginning January 1, 2018.
72.24 	No employer may take any action to displace an employee, including a partial 
72.25 	displacement through a reduction in hours, wages, or employment benefits, in order to 
72.26 	hire an employee at the wage authorized in this paragraph.
72.27 	(e) (d) Notwithstanding paragraph (b), a large employer must pay an employee under 
72.28 	the age of 18 at a rate of at least:
72.29 	(1) $6.50 per hour beginning August 1, 2014;
72.30 	(2) $7.25 per hour beginning August 1, 2015;
72.31 	(3) $7.75 per hour beginning August 1, 2016; and
72.32 	(4) the rate established under paragraph (f) beginning January 1, 2018.
72.33 	No employer may take any action to displace an employee, including a partial 
72.34 	displacement through a reduction in hours, wages, or employment benefits, in order to 
72.35 	hire an employee at the wage authorized in this paragraph.
73.1 	(e) Notwithstanding paragraph (b), every employer must pay an employee receiving 
73.2 	gratuities a wage of at least:
73.3 	(1) $8.00 per hour if the employee earns sufficient gratuities during the workweek 
73.4 	so that the sum of $8.00 per hour and gratuities received averages at least $12.00 per 
73.5 	hour for the workweek; or
73.6 	(2) the greater of the wage rate under this section or United States Code, title 29, 
73.7 	section 206(a)(1), if the employee does not earn sufficient gratuities during the workweek 
73.8 	so that the sum of $8.00 per hour and gratuities received averages at least $12.00 per 
73.9 	hour for the workweek.
73.10 	For the purposes of this section, "employee receiving gratuities" means an employee who 
73.11 	customarily and regularly receives more than $30 per month in gratuities. The employer 
73.12 	must inform a potential employee who may receive gratuities, during the employment 
73.13 	interview, of the applicable wage under this paragraph. The employer must provide the 
73.14 	potential employee with a written copy of the wages required under this paragraph and 
73.15 	the potential employee shall initial the form indicating he or she has received the notice. 
73.16 	A copy of the signed notice must be kept on file by the employer. If the Minnesota 
73.17 	Department of Human Rights makes three or more probable cause determinations of 
73.18 	sexual harassment as defined in section 363A.03, subdivision 43, regarding a single 
73.19 	employer, this paragraph no longer applies to that employer and the employer must pay all 
73.20 	employees the otherwise applicable minimum wage under this section.
73.21 	(f) No later than August 31 of each year, beginning in 2017, the commissioner shall 
73.22 	determine the percentage increase in the rate of inflation, as measured by the implicit 
73.23 	price deflator, national data for personal consumption expenditures as determined by 
73.24 	the United States Department of Commerce, Bureau of Economic Analysis during the 
73.25 	12-month period immediately preceding that August or, if that data is unavailable, during 
73.26 	the most recent 12-month period for which data is available. The minimum wage rates in 
73.27 	paragraphs (b), (c), (d), and (e) are increased by the lesser of: (1) 2.5 percent, rounded 
73.28 	to the nearest cent; or (2) the percentage calculated by the commissioner, rounded to the 
73.29 	nearest cent. A minimum wage rate shall not be reduced under this paragraph. The new 
73.30 	minimum wage rates determined under this paragraph take effect on the next January 1.
73.31 	(g)(1) No later than September 30 of each year, beginning in 2017, the commissioner 
73.32 	may issue an order that an increase calculated under paragraph (f) not take effect. The 
73.33 	commissioner may issue the order only if the commissioner, after consultation with the 
73.34 	commissioner of management and budget, finds that leading economic indicators, including 
73.35 	but not limited to projections of gross domestic product calculated by the United States 
73.36 	Department of Commerce, Bureau of Economic Analysis; the Consumer Confidence Index 
74.1 	issued by the Conference Board; and seasonally adjusted Minnesota unemployment rates, 
74.2 	indicate the potential for a substantial downturn in the state's economy. Prior to issuing 
74.3 	an order, the commissioner shall also calculate and consider the ratio of the rate of the 
74.4 	calculated change in the minimum wage rate to the rate of change in state median income 
74.5 	over the same time period used to calculate the change in wage rate. Prior to issuing the 
74.6 	order, the commissioner shall hold a public hearing, notice of which must be published in 
74.7 	the State Register, on the department's Web site, in newspapers of general circulation, and 
74.8 	by other means likely to inform interested persons of the hearing, at least ten days prior to 
74.9 	the hearing. The commissioner must allow interested persons to submit written comments 
74.10 	to the commissioner before the public hearing and for 20 days after the public hearing.
74.11 	(2) The commissioner may in a year subsequent to issuing an order under clause (1), 
74.12 	make a supplemental increase in the minimum wage rate in addition to the increase for 
74.13 	a year calculated under paragraph (f). The supplemental increase may be in an amount 
74.14 	up to the full amount of the increase not put into effect because of the order. If the 
74.15 	supplemental increase is not the full amount, the commissioner may make a supplemental 
74.16 	increase of the difference, or any part of a difference, in a subsequent year until the full 
74.17 	amount of the increase ordered not to take effect has been included in a supplemental 
74.18 	increase. In making a determination to award a supplemental increase under this clause, 
74.19 	the commissioner shall use the same considerations and use the same process as for an 
74.20 	order under clause (1). A supplemental wage increase is not subject to and shall not be 
74.21 	considered in determining whether a wage rate increase exceeds the limits for annual wage 
74.22 	rate increases allowed under paragraph (f).

74.23 	Sec. 4. Minnesota Statutes 2014, section 177.24, is amended by adding a subdivision 
74.24 	to read:
74.25 		Subd. 3a.Gratuities; credit cards or charges. (a) Gratuities presented to an 
74.26 	employee via inclusion on a debit, charge, or credit card shall be credited to that pay 
74.27 	period in which they are received by the employee and for which they appear on the 
74.28 	employee's tip statement.
74.29 	(b) Where a gratuity is given by a customer through a debit, charge, or credit card,  
74.30 	the full amount of gratuity must be allowed the employee.

74.31 	Sec. 5. Minnesota Statutes 2014, section 177.24, is amended by adding a subdivision 
74.32 	to read:
75.1 		Subd. 6.Uniform state minimum wage; local variation prohibited. (a) Except as 
75.2 	provided in this subdivision, a local unit of government may not require the payment of a 
75.3 	minimum wage that is different than the minimum wage set by this section.
75.4 	(b) This subdivision does not apply to wages paid:
75.5 	(1) to an employee of the local unit of government;
75.6 	(2) for services provided by an individual to the local unit of government under a 
75.7 	contract or subcontract with the local unit of government; and
75.8 	(3) for services provided by an individual that are funded in whole or part by 
75.9 	financial assistance from the local unit of government.
75.10 	(c) For the purpose of this subdivision, "local unit of government" means a statutory 
75.11 	or home rule charter city, town, county, Metropolitan Council, Metropolitan Airports 
75.12 	Commission, other metropolitan agencies, and other political subdivisions.

75.13 	EFFECTIVE DATE. This section is effective the day following final enactment 
75.14 	and applies to a local unit of government requirement that was established before, on, or 
75.15 	after that date.

75.16 	Sec. 6. [181.741] LOCAL GOVERNMENT; UNIFORMITY OF PRIVATE 
75.17 	EMPLOYER BENEFIT MANDATES.
75.18 	(a) A local unit of government may not establish, mandate, or otherwise require a 
75.19 	private employer to provide an employee who is employed within the jurisdiction of 
75.20 	the local unit of government a benefit that exceeds the requirements of federal or state 
75.21 	law, rules, or regulations.
75.22 	(b) This section does not apply to benefits paid or granted:
75.23 	(1) to an employee of the local unit of government;
75.24 	(2) under a contract or subcontract for services provided by an individual to the 
75.25 	local unit of government; or
75.26 	(3) under a contract for services provided by an individual that are funded in whole 
75.27 	or in part by financial assistance from the local unit of government.
75.28 	(c) For purposes of this section, "local unit of government" must be broadly 
75.29 	construed and includes, without limitation, a statutory or home rule charter city, town, 
75.30 	county, Metropolitan Council, Metropolitan Airports Commission, other metropolitan 
75.31 	agencies, and other political subdivisions.
75.32 	(d) For purposes of this section, the term "benefit" must be broadly construed 
75.33 	and includes, without limitation, attendance or leave policy, scheduling policy, term of 
75.34 	employment, paid or unpaid leave, any monetary or nonmonetary compensation.

76.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
76.2 	and applies to a local unit of government mandate or requirement that was established 
76.3 	before, on, or after that date.

76.4 	Sec. 7. Minnesota Statutes 2014, section 299F.011, is amended by adding a subdivision 
76.5 	to read:
76.6 		Subd. 4d.Single-family dwelling; fire sprinklers. (a) The State Building Code, 
76.7 	the State Fire Code, or a political subdivision of the state by code, by ordinance, as a 
76.8 	condition of receiving public funding, or in any other way, must not require the installation 
76.9 	of fire sprinklers, any fire sprinkler system components, or automatic fire-extinguishing 
76.10 	equipment or devices in any new or existing single-family detached dwelling unit.
76.11 	(b) Nothing in this subdivision shall be construed to affect or limit a requirement 
76.12 	for smoke or fire detectors, alarms, or their components.

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

76.14 	Sec. 8. Minnesota Statutes 2014, section 326B.092, subdivision 7, is amended to read:
76.15 		Subd. 7.License fees and license renewal fees. (a) The license fee for each 
76.16 	license is the base license fee plus any applicable board fee, continuing education fee, and 
76.17 	contractor recovery fund fee and additional assessment, as set forth in this subdivision.
76.18 	(b) For purposes of this section, "license duration" means the number of years for 
76.19 	which the license is issued except that:
76.20 	(1) if the initial license is not issued for a whole number of years, the license duration 
76.21 	shall be rounded up to the next whole number; and
76.22 	(2) if the department receives an application for license renewal after the renewal 
76.23 	deadline, license duration means the number of years for which the renewed license would 
76.24 	have been issued if the renewal application had been submitted on time and all other 
76.25 	requirements for renewal had been met.
76.26 	(c) The base license fee shall depend on whether the license is classified as an entry 
76.27 	level, master, journeyman, or business license, and on the license duration. The base 
76.28 	license fee shall be:

76.29	License Classification
	License Duration 
		
76.30		1 Year
	2 Years
	3 Years
	
76.31	Entry level
	$10
	$20
	$30
	
76.32
76.33	Journeyman 
Journeyworker
	$20
	$40
	$60
	
76.34	Master
	$40
	$80
	$120
	
76.35	Business
	$90
	$180
	$270
	
77.1 	(d) If there is a continuing education requirement for renewal of the license, then 
77.2 	a continuing education fee must be included in the renewal license fee. The continuing 
77.3 	education fee for all license classifications shall be: $10 if the renewal license duration 
77.4 	is one year; and $20 if the renewal license duration is two years; and $30 if the renewal 
77.5 	license duration is three years.
77.6 	(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 
77.7 	326B.93, then a board fee must be included in the license fee and the renewal license fee. 
77.8 	The board fee for all license classifications shall be: $4 if the license duration is one year; 
77.9 	$8 if the license duration is two years; and $12 if the license duration is three years.
77.10 	(f) If the application is for the renewal of a license issued under sections 326B.802 
77.11 	to 326B.885, then the contractor recovery fund fee required under section 326B.89, 
77.12 	subdivision 3, and any additional assessment required under section 326B.89, subdivision 
77.13 	16, must be included in the license renewal fee.
77.14 	(g) Notwithstanding the fee amounts described in paragraphs (c) to (f), for the period 
77.15 	July 1, 2015, through June 30, 2017, the following fees apply:

77.16		License Classification
	License Duration
		
77.17			1 year
	2 years
	
77.18		Entry level
	$10
	$20
	
77.19		Journeyworker
	$15
	$35
	
77.20		Master
	$30
	$75
	
77.21		Business
		$160
	
77.22 	If there is a continuing education requirement for renewal of the license, then a continuing 
77.23 	education fee must be included in the renewal license fee. The continuing education fee 
77.24 	for all license classifications shall be $5.

77.25 	Sec. 9. Minnesota Statutes 2014, section 326B.096, is amended to read:
77.26 	326B.096 REINSTATEMENT OF LICENSES.
77.27 		Subdivision 1.Reinstatement after revocation. (a) If a license is revoked under 
77.28 	this chapter and if an applicant for a license needs to pass an examination administered by 
77.29 	the commissioner before becoming licensed, then, in order to have the license reinstated, 
77.30 	the person who holds the revoked license must:
77.31 	(1) retake the examination and achieve a passing score; and
77.32 	(2) meet all other requirements for an initial license, including payment of the 
77.33 	application and examination fee and the license fee. The person holding the revoked 
77.34 	license is not eligible for Minnesota licensure without examination based on reciprocity.
78.1 	(b) If a license is revoked under a chapter other than this chapter, then, in order to 
78.2 	have the license reinstated, the person who holds the revoked license must:
78.3 	(1) apply for reinstatement to the commissioner no later than two years after the 
78.4 	effective date of the revocation;
78.5 	(2) pay a $100 $50 reinstatement application fee and any applicable renewal license 
78.6 	fee; and
78.7 	(3) meet all applicable requirements for licensure, except that, unless required by the 
78.8 	order revoking the license, the applicant does not need to retake any examination and does 
78.9 	not need to repay a license fee that was paid before the revocation.
78.10 		Subd. 2.Reinstatement after suspension. If a license is suspended, then, in order 
78.11 	to have the license reinstated, the person who holds the suspended license must:
78.12 	(1) apply for reinstatement to the commissioner no later than two years after the 
78.13 	completion of the suspension period;
78.14 	(2) pay a $100 $50 reinstatement application fee and any applicable renewal license 
78.15 	fee; and
78.16 	(3) meet all applicable requirements for licensure, except that, unless required by the 
78.17 	order suspending the license, the applicant does not need to retake any examination and 
78.18 	does not need to repay a license fee that was paid before the suspension.
78.19 		Subd. 3.Reinstatement after voluntary termination. A licensee who is not an 
78.20 	individual may voluntarily terminate a license issued to the person under this chapter. If a 
78.21 	licensee has voluntarily terminated a license under this subdivision, then, in order to have 
78.22 	the license reinstated, the person who holds the terminated license must:
78.23 	(1) apply for reinstatement to the commissioner no later than the date that the license 
78.24 	would have expired if it had not been terminated;
78.25 	(2) pay a $100 $50 reinstatement application fee and any applicable renewal license 
78.26 	fee; and
78.27 	(3) meet all applicable requirements for licensure, except that the applicant does not 
78.28 	need to repay a license fee that was paid before the termination.

78.29 	EFFECTIVE DATE. The amendments to this section are effective July 1, 2015, 
78.30 	and expire July 1, 2017.

78.31 	Sec. 10. Minnesota Statutes 2014, section 326B.106, subdivision 1, is amended to read:
78.32 		Subdivision 1.Adoption of code. (a) Subject to paragraphs (c) and (d) and 
78.33 	sections 326B.101 to 326B.194, the commissioner shall by rule and in consultation 
78.34 	with the Construction Codes Advisory Council establish a code of standards for the 
78.35 	construction, reconstruction, alteration, and repair of buildings, governing matters of 
79.1 	structural materials, design and construction, fire protection, health, sanitation, and safety, 
79.2 	including design and construction standards regarding heat loss control, illumination, 
79.3 	and climate control. The code must also include duties and responsibilities for code 
79.4 	administration, including procedures for administrative action, penalties, and suspension 
79.5 	and revocation of certification. The code must conform insofar as practicable to model 
79.6 	building codes generally accepted and in use throughout the United States, including a 
79.7 	code for building conservation. In the preparation of the code, consideration must be 
79.8 	given to the existing statewide specialty codes presently in use in the state. Model codes 
79.9 	with necessary modifications and statewide specialty codes may be adopted by reference. 
79.10 	The code must be based on the application of scientific principles, approved tests, and 
79.11 	professional judgment. To the extent possible, the code must be adopted in terms of 
79.12 	desired results instead of the means of achieving those results, avoiding wherever possible 
79.13 	the incorporation of specifications of particular methods or materials. To that end the code 
79.14 	must encourage the use of new methods and new materials. Except as otherwise provided 
79.15 	in sections 326B.101 to 326B.194, the commissioner shall administer and enforce the 
79.16 	provisions of those sections.
79.17 	(b) The commissioner shall develop rules addressing the plan review fee assessed 
79.18 	to similar buildings without significant modifications including provisions for use of 
79.19 	building systems as specified in the industrial/modular program specified in section 
79.20 	326B.194. Additional plan review fees associated with similar plans must be based on 
79.21 	costs commensurate with the direct and indirect costs of the service.
79.22 	(c) Beginning with the 2018 edition of the model building codes and every six 
79.23 	years thereafter, the commissioner shall review the new model building codes and adopt 
79.24 	the model codes as amended for use in Minnesota within two years of the published 
79.25 	edition date. The commissioner may adopt amendments to the building codes prior to the 
79.26 	adoption of the new building codes to advance construction methods, technology, or 
79.27 	materials or, where necessary, to protect the health, safety, and welfare of the public or to 
79.28 	improve the efficiency or the use of a building.
79.29 	(d) Notwithstanding paragraph (c), the commissioner shall act on each new model 
79.30 	residential energy code and the new model commercial energy code in accordance with 
79.31 	federal law for which the United States Department of Energy has issued an affirmative 
79.32 	positive determination in compliance with United States Code, title 42, section 6833. The 
79.33 	commissioner may adopt amendments prior to adoption of the new energy codes, as 
79.34 	amended for use in Minnesota, to advance construction methods, technology, or materials 
79.35 	or, where necessary, to protect the health, safety, and welfare of the public or to improve 
79.36 	the efficiency or use of the building.

80.1 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to all 
80.2 	model code adoptions beginning with the 2018 model building code.

80.3 	Sec. 11. Minnesota Statutes 2014, section 326B.13, subdivision 8, is amended to read:
80.4 		Subd. 8.Effective date of rules. A rule to adopt or amend the State Building Code is 
80.5 	effective 180 270 days after publication of the rule's notice of adoption in the State Register. 
80.6 	The rule may provide for a later effective date. The rule may provide for an earlier effective 
80.7 	date if the commissioner or board proposing the rule finds that an earlier effective date is 
80.8 	necessary to protect public health and safety after considering, among other things, the need 
80.9 	for time for training of individuals to comply with and enforce the rule. The commissioner 
80.10 	must publish an electronic version of the entire adopted rule chapter on the department's 
80.11 	Web site within ten days of receipt from the revisor of statutes. The commissioner shall 
80.12 	clearly indicate the effective date of the rule on the department's Web site.

80.13 	Sec. 12. Minnesota Statutes 2014, section 326B.809, is amended to read:
80.14 	326B.809 WRITTEN CONTRACT REQUIRED.
80.15 	(a) All agreements including proposals, estimates, bids, quotations, contracts, 
80.16 	purchase orders, and change orders between a licensee and a customer for the performance 
80.17 	of a licensee's services must be in writing and must contain the following:
80.18 	(1) a detailed summary of the services to be performed;
80.19 	(2) a description of the specific materials to be used or a list of standard features 
80.20 	to be included; and
80.21 	(3) the total contract price or a description of the basis on which the price will 
80.22 	be calculated.
80.23 	(b) Before entering into an agreement, the licensee shall provide a prospective 
80.24 	customer with written performance guidelines for the services to be performed. 
80.25 	Performance guidelines also must be included or incorporated by reference in the 
80.26 	agreement. All agreements shall be signed and dated by the licensee and customer.
80.27 	(c) Before entering into an agreement, the licensee shall offer a prospective customer 
80.28 	the option to install fire sprinklers, any fire sprinkler system components, or automatic 
80.29 	fire-extinguishing equipment or devices in any new single-family detached dwelling unit. 
80.30 	The offer shall be included or incorporated by reference in the agreement. All agreements 
80.31 	shall be signed and dated by the licensee and customer.
80.32 	(c)(d) The licensee shall provide to the customer, at no charge, a signed and 
80.33 	dated document at the time that the licensee and customer sign and date the document. 
81.1 	Documents include agreements, performance guidelines, fire sprinkler opt-in forms, and 
81.2 	mechanic's lien waivers.

81.3 	Sec. 13. Minnesota Statutes 2014, section 326B.986, subdivision 5, is amended to read:
81.4 		Subd. 5.Boiler engineer license fees. (a) For purposes of calculating license fees 
81.5 	and renewal license fees required under section 326B.092:
81.6 	(1) the boiler special engineer license is an entry level license;
81.7 	(2) the following licenses are journeyman licenses: first class engineer, Grade A; 
81.8 	first class engineer, Grade B; first class engineer, Grade C; second class engineer, Grade 
81.9 	A; second class engineer, Grade B; second class engineer, Grade C; and provisional 
81.10 	license; and
81.11 	(3) the following licenses are master licenses: boiler chief engineer, Grade A; boiler 
81.12 	chief engineer, Grade B; boiler chief engineer, Grade C; boiler commissioner inspector 
81.13 	certificate of competency; and traction or hobby boiler engineer.
81.14 	(b) Notwithstanding section 326B.092, subdivision 7, paragraph (a), the license 
81.15 	duration for steam traction and hobby engineer licenses are one year only for the purpose 
81.16 	of calculating license fees under section 326B.092, subdivision 7, paragraph (b).

81.17 	Sec. 14. Minnesota Statutes 2014, section 326B.986, subdivision 8, is amended to read:
81.18 		Subd. 8.Certificate of competency. The fee for issuance of the original certificate 
81.19 	of competency is $85 for inspectors who did not pay the national board examination fee 
81.20 	specified in subdivision 6, or $35 for inspectors who paid that examination fee.(a) Each 
81.21 	applicant for a certificate of competency must complete an interview with the chief boiler 
81.22 	inspector before issuance of the certificate of competency.
81.23 	(b) All initial certificates of competency shall be effective for more than one calendar 
81.24 	year and shall expire on December 31 of the year after the year in which the application 
81.25 	is made. The commissioner shall in a manner determined by the commissioner, without 
81.26 	the need for any rulemaking under chapter 14, phase in the renewal of certificates of 
81.27 	competency from one calendar year to two calendar years. By June 30, 2011,
81.28 	(c) All renewed certificates of competency shall be valid for two calendar years. The 
81.29 	fee for renewal of the state of Minnesota certificate of competency is $35 for one year or 
81.30 	$70 for two years, and is due the day after the certificate expires.

81.31 	EFFECTIVE DATE. The amendments to paragraphs (a) and (c) are effective July 
81.32 	1, 2015, and expire July 1, 2017.

82.1 	Sec. 15. Minnesota Statutes 2014, section 341.321, is amended to read:
82.2 	341.321 FEE SCHEDULE.
82.3 	(a) The fee schedule for professional and amateur licenses issued by the 
82.4 	commissioner is as follows:
82.5 	(1) referees, $80 for each initial license and each renewal;
82.6 	(2) promoters, $700 for each initial license and each renewal;
82.7 	(3) judges and knockdown judges, $80 for each initial license and each renewal;
82.8 	(4) trainers and seconds, $80 for each initial license and each renewal;
82.9 	(5) ring announcers, $80 for each initial license and each renewal;
82.10 	(6) seconds, $80 for each initial license and each renewal;
82.11 	(7) (6) timekeepers, $80 for each initial license and each renewal;
82.12 	(8)(7) professional combatants, $100 for each initial license and each renewal $70;
82.13 	(8) amateur combatants, $50;
82.14 	(9) managers, $80 for each initial license and each renewal; and
82.15 	(10) ringside physicians, $80 for each initial license and each renewal.
82.16 	In addition to the license fee and the late filing penalty fee in section 341.32, subdivision 
82.17 	2, if applicable, an individual who applies for a professional license on the same day 
82.18 	within the 48 hours preceding when the combative sporting event is held shall pay a late 
82.19 	fee of $100 plus the original license fee of $120 at the time the application is submitted.
82.20 	(b) The fee schedule for amateur licenses issued by the commissioner is as follows:
82.21 	(1) referees, $80 for each initial license and each renewal;
82.22 	(2) promoters, $700 for each initial license and each renewal;
82.23 	(3) judges and knockdown judges, $80 for each initial license and each renewal;
82.24 	(4) trainers, $80 for each initial license and each renewal;
82.25 	(5) ring announcers, $80 for each initial license and each renewal;
82.26 	(6) seconds, $80 for each initial license and each renewal;
82.27 	(7) timekeepers, $80 for each initial license and each renewal;
82.28 	(8) combatant, $60 for each initial license and each renewal;
82.29 	(9) managers, $80 for each initial license and each renewal; and
82.30 	(10) ringside physicians, $80 for each initial license and each renewal.
82.31 	(c) (b) The commissioner shall establish a contest fee for each combative sport 
82.32 	contest and shall consider the size and type of venue when establishing a contest fee. The 
82.33 	professional combative sport contest fee is $1,500 per event or not more than four percent 
82.34 	of the gross ticket sales, whichever is greater, as determined by the commissioner when 
82.35 	the combative sport contest is scheduled,. The amateur combative sport contest fee shall 
82.36 	be $1,500 or not more than four percent of the gross ticket sales, whichever is greater. 
83.1 	The commissioner shall consider the size and type of venue when establishing a contest 
83.2 	fee. The commissioner may establish the maximum number of complimentary tickets 
83.3 	allowed for each event by rule.
83.4 	(c) A professional or amateur combative sport contest fee is nonrefundable. and 
83.5 	shall be paid as follows:
83.6 	(1) $500 at the time the combative sport contest is scheduled; and
83.7 	(2) $1,000 at the weigh-in prior to the contest.
83.8 	If four percent of the gross ticket sales is greater than $1,500, the balance is due to the 
83.9 	commissioner within 24 hours of the completed contest.
83.10 	(d) The commissioner may establish the maximum number of complimentary tickets 
83.11 	allowed for each event by rule.
83.12 	(d) (e) All fees and penalties collected by the commissioner must be deposited in the 
83.13 	commissioner account in the special revenue fund.

83.14 	Sec. 16. Laws 2014, chapter 312, article 2, section 14, is amended to read:
83.15 	Sec. 14. ASSIGNED RISK TRANSFER.
 83.16 	(a) By June 30, 2015, if the commissioner of commerce determines on the basis of 
83.17 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
83.18 	Statutes, section 79.252, the commissioner of management and budget shall transfer 
83.19 	the amount of the excess surplus, not to exceed $10,500,000, to the general fund. This 
83.20 	transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 
83.21 	1, paragraph (a), clause (1). This is a onetime transfer.
83.22 	(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce 
83.23 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
83.24 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
83.25 	budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each 
83.26 	year, to the Minnesota minerals 21st century fund under Minnesota Statutes, section 
83.27 	116J.423. This transfer occurs prior to any transfer under Minnesota Statutes, section 
83.28 	79.251, subdivision 1, paragraph (a), clause (1), but after the transfer authorized in 
83.29 	paragraph (a). The total amount authorized for all transfers under this paragraph must not 
83.30 	exceed $24,100,000. This paragraph expires the day following the transfer in which the 
83.31 	total amount transferred under this paragraph to the Minnesota minerals 21st century 
83.32 	fund equals $24,100,000.
83.33 	(c) By June 30, 2015, if the commissioner of commerce determines on the basis of 
83.34 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
83.35 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
84.1 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
84.2 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
84.3 	paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If 
84.4 	a transfer occurs under this paragraph, the amount transferred is appropriated from the 
84.5 	general fund in fiscal year 2015 to the commissioner of labor and industry for the purposes 
84.6 	of section 15. Both the transfer and appropriation under this paragraph are onetime.
84.7 	(d) By June 30, 2016, if the commissioner of commerce determines on the basis of 
84.8 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
84.9 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
84.10 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
84.11 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
84.12 	paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If 
84.13 	a transfer occurs under this paragraph, the amount transferred is appropriated from the 
84.14 	general fund in fiscal year 2016 to the commissioner of labor and industry for the purposes 
84.15 	of section 15. Both the transfer and appropriation under this paragraph are onetime.
84.16 	(e)(d) By July 1, 2015, notwithstanding Minnesota Statutes, section 16A.28, the 
84.17 	commissioner of management and budget shall transfer to the assigned risk plan under 
84.18 	Minnesota Statutes, section 79.252, general fund any unencumbered or unexpended 
84.19 	balance of the appropriationsappropriation under paragraphs paragraph (c) and (d) 
84.20 	remaining on June 30, 2017 2015, or the date the commissioner of commerce determines 
84.21 	that an excess surplus in the assigned risk plan does not exist, whichever occurs earlier.

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

84.23 	Sec. 17.  REPEALER.
 84.24 	Minnesota Statutes 2014, section 177.24, subdivision 2, Laws 2014, chapter 312, 
84.25 	article 2, section 15,  and Minnesota Rules, part 5205.0580, subpart 21, are repealed.

84.26 	ARTICLE 5
84.27 	COMMERCE

84.28 	Section 1. Minnesota Statutes 2014, section 45.0135, subdivision 6, is amended to read:
84.29 		Subd. 6.Insurance fraud prevention account. The insurance fraud prevention 
84.30 	account is created in the state treasury. Money received from assessments under subdivision 
84.31 	7 and from the automobile theft prevention account in section 297I.11, subdivision 2, and 
84.32 	transferred from the automobile theft prevention account in section 65B.84, subdivision 1, 
85.1 	is deposited in the account. Money in this fund is appropriated to the commissioner of 
85.2 	commerce for the purposes specified in this section and sections 60A.951 to 60A.956.

85.3 	Sec. 2. Minnesota Statutes 2014, section 45.0135, is amended by adding a subdivision 
85.4 	to read:
85.5 		Subd. 9.Administrative penalty for insurance fraud. (a) The commissioner may:
85.6 	(1) impose an administrative penalty against any person in an amount as set forth in 
85.7 	paragraph (b) for each intentional act of insurance fraud committed by that person; and
85.8 	(2) order restitution to any person suffering loss as a result of the insurance fraud.
85.9 	(b) The administrative penalty for each violation described in paragraph (a) may be 
85.10 	no more than:
85.11 	(1) $20,000 if the funds or the value of the property or services wrongfully obtained 
85.12 	exceeds $5,000;
85.13 	(2) $10,000 if the funds or value of the property or services wrongfully obtained 
85.14 	exceeds $1,000, but not more than $5,000;
85.15 	(3) $3,000 if the funds or value of the property or services wrongfully obtained is 
85.16 	more than $500, but not more than $1,000; and
85.17 	(4) $1,000 if the funds or value of the property or services wrongfully obtained is 
85.18 	less than $500.
85.19 	(c) If an administrative penalty is not paid after all rights of appeal have been 
85.20 	waived or exhausted, the commissioner may bring a civil action in a court of competent 
85.21 	jurisdiction to collect the administrative penalty, including expenses and litigation costs, 
85.22 	reasonable attorney fees, and interest.
85.23 	(d) This section does not affect a person's right to seek recovery, including expenses 
85.24 	and litigation costs, reasonable attorney fees, and interest, against any person that commits 
85.25 	insurance fraud.
85.26 	(e) For purposes of this subdivision, "insurance fraud" has the meaning given in 
85.27 	section 60A.951, subdivision 4.
85.28 	(f) Hearings under this subdivision must be conducted in accordance with chapter 
85.29 	14 and any other applicable law.
85.30 	(g) All revenues from penalties, expenses, costs, fees, and interest collected under 
85.31 	paragraphs (a) to (c) shall be deposited in the insurance fraud prevention account under 
85.32 	section 45.0135, subdivision 6.

85.33 	Sec. 3. [59D.01] APPLICATION.
85.34 	(a) This chapter does not apply to:
86.1 	(1) a policy of insurance offered in compliance with chapters 60A to 79A;
86.2 	(2) a debt cancellation or debt suspension contract, including a guaranteed asset 
86.3 	protection waiver, being offered by a banking institution or credit union in compliance 
86.4 	with chapter 48 or 52; and
86.5 	(3) a debt cancellation or debt suspension contract being offered in compliance with 
86.6 	Code of Federal Regulations, title 12, parts 37, 721, or other federal law.
86.7 	(b) Guaranteed asset protection waivers regulated under this chapter are not 
86.8 	insurance and are not subject to chapters 60A to 79A. Persons selling, soliciting, or 
86.9 	negotiating guaranteed asset protection waivers to borrowers in compliance with this 
86.10 	chapter are exempt for chapter 60K.
86.11 	(c) The commissioner of commerce has the full investigatory authority of chapter 45 
86.12 	to enforce the terms of this chapter.

86.13 	Sec. 4. [59D.02] DEFINITIONS.
86.14 		Subdivision 1.Terms. For purposes of this chapter, the terms defined in subdivisions 
86.15 	2 to 10 have the meanings given them.
86.16 		Subd. 2.Administrator. "Administrator" means a person, other than an insurer 
86.17 	or creditor who performs administrative or operational functions pursuant to guaranteed 
86.18 	asset protection waiver programs.
86.19 		Subd. 3.Borrower. "Borrower" means a debtor, retail buyer, or lessee under a 
86.20 	finance agreement.
86.21 		Subd. 4.Creditor. "Creditor" means:
86.22 	(1) the lender in a loan or credit transaction;
86.23 	(2) the lessor in a lease transaction;
86.24 	(3) a dealer or seller of motor vehicles that provides credit to purchasers of the motor 
86.25 	vehicles provided that the entities comply with this section;
86.26 	(4) the seller in commercial retail installment transactions; or 
86.27 	(5) the assignees of any of the forgoing to whom the credit obligation is payable.
86.28 		Subd. 5.Finance agreement. "Finance agreement" means a loan, lease, or retail 
86.29 	installment sales contract for the purchase or lease of a motor vehicle.
86.30 		Subd. 6.Free look period. "Free look period" means the period of time from the 
86.31 	effective date of the GAP waiver until the date the borrower may cancel the contract without 
86.32 	penalty, fees, or costs to the borrower. This period of time must not be shorter than 30 days.
86.33 		Subd. 7.Guaranteed asset protection waiver. "Guaranteed asset protection waiver" 
86.34 	or "GAP waiver" means a contractual agreement wherein a creditor agrees for a separate 
87.1 	charge to cancel or waive all or part of amounts due on a borrower's finance agreement in 
87.2 	the event of a total physical damage loss or unrecovered theft of the motor vehicle.
87.3 		Subd. 8.Insurer. "Insurer" means an insurance company licensed, registered, or 
87.4 	otherwise authorized to do business under Minnesota law.
87.5 		Subd. 9.Motor vehicle. "Motor vehicle" means self-propelled or towed vehicles 
87.6 	designed for personal or commercial use, including, but not limited to, automobiles; 
87.7 	trucks; motorcycles; recreational vehicles; all-terrain vehicles; snowmobiles; campers; 
87.8 	boats; personal watercraft; and motorcycle, boat, camper, and personal watercraft trailers. 
87.9 	A creditor is prohibited from selling a GAP waiver in conjunction with the sale or lease of 
87.10 	any used motor vehicle that is an automobile or truck that is valued at less than $5,000.
87.11 		Subd. 10.Person. "Person" includes an individual, company, association, 
87.12 	organization, partnership, business trust, corporation, and every form of legal entity.

87.13 	Sec. 5. [59D.03] COMMERCIAL TRANSACTIONS EXEMPTED.
87.14 	Sections 59D.04, subdivision 3, and 59D.06 do not apply to a guaranteed asset 
87.15 	protection waiver offered in connection with a lease or retail installment sale associated 
87.16 	with any transaction not for personal, family, or household purposes.

87.17 	Sec. 6. [59D.04] GUARANTEED ASSET PROTECTION WAIVER 
87.18 	REQUIREMENTS.
87.19 		Subdivision 1.Authorization. GAP waivers may be offered, sold, or provided to 
87.20 	borrowers in Minnesota in compliance with this chapter.
87.21 		Subd. 2.Payment options. GAP waivers may, at the option of the creditor, be sold 
87.22 	for a single payment or may be offered with a monthly or periodic payment option.
87.23 		Subd. 3.Certain costs not considered finance charge or interest. Notwithstanding 
87.24 	any other provision of law, any cost to the borrower for a guaranteed asset protection 
87.25 	waiver entered into in compliance with United States Code, title 15, sections 1601 to 
87.26 	1667F, and its implementing regulations under Code of Federal Regulations, title 12, part 
87.27 	226, as they may be amended from time to time, must be separately stated and is not to 
87.28 	be considered a finance charge or interest.
87.29 		Subd. 4.Insurance. A retail seller must insure its GAP waiver obligations under a 
87.30 	contractual liability or other insurance policy issued by an insurer. A creditor, other than a 
87.31 	retail seller, may insure its GAP waiver obligations under a contractual liability policy or 
87.32 	other such policy issued by an insurer. The insurance policy may be directly obtained by a 
87.33 	creditor or retail seller, or may be procured by an administrator to cover a creditor's or 
88.1 	retail seller's obligations. Retail sellers that are lessors on motor vehicles are not required 
88.2 	to insure obligations related to GAP waivers on leased vehicles.
88.3 		Subd. 5.Financing agreement. The GAP waiver must be part of, or a separate 
88.4 	addendum to, the finance agreement and must remain a part of the finance agreement upon 
88.5 	the assignment, sale, or transfer of the finance agreement by the creditor.
88.6 		Subd. 6.Purchase restriction. The extension of credit, the terms of the credit, or 
88.7 	the terms and conditions of the related motor vehicle sale or lease must not be conditioned 
88.8 	upon the purchase of a GAP waiver.
88.9 		Subd. 7.Reporting. A creditor that offers a GAP waiver must report the sale of, and 
88.10 	forward funds received on, all such waivers to the designated party, if any, as prescribed 
88.11 	in any applicable administrative services agreement, contractual liability policy, other 
88.12 	insurance policy, or other specified program documents.
88.13 		Subd. 8.Fiduciary responsibilities. Funds received or held by a creditor or 
88.14 	administrator and belonging to an insurer, creditor, or administrator, pursuant to the terms 
88.15 	of a written agreement, must be held by the creditor or administrator in a fiduciary capacity.
88.16 		Subd. 9.Defined terms. The terms defined in section 59D.01 are not intended to 
88.17 	provide actual terms that are required in guaranteed asset protection waivers.

88.18 	Sec. 7. [59D.05] CONTRACTUAL LIABILITY OR OTHER INSURANCE 
88.19 	POLICIES.
88.20 		Subdivision 1.Reimbursement or payment statement. Contractual liability or 
88.21 	other insurance policies insuring GAP waivers must state the obligation of the insurer to 
88.22 	reimburse or pay to the creditor any sums the creditor is legally obligated to waive under 
88.23 	the GAP waivers issued by the creditor and purchased or held by the borrower.
88.24 		Subd. 2.Coverage of assignee. Coverage under a contractual liability or other 
88.25 	insurance policy insuring a GAP waiver must also cover a subsequent assignee upon the 
88.26 	assignment, sale, or transfer of the finance agreement.
88.27 		Subd. 3.Term. Coverage under a contractual liability or other insurance policy 
88.28 	insuring a GAP waiver must remain in effect unless canceled or terminated in compliance 
88.29 	with applicable laws.
88.30 		Subd. 4.Effect of cancellation or termination. The cancellation or termination of 
88.31 	a contractual liability or other insurance policy must not reduce the insurer's responsibility 
88.32 	for GAP waivers issued by the creditor before the date of cancellation or termination and 
88.33 	for which a premium has been received by the insurer.

88.34 	Sec. 8. [59D.06] DISCLOSURES.
89.1 	(a) Guaranteed asset protection waivers must disclose, as applicable, in writing and 
89.2 	in clear, understandable language that is easy to read, the following:
89.3 	(1) the name and address of the initial creditor and the borrower at the time of sale, 
89.4 	and the identity of any administrator if different from the creditor;
89.5 	(2) the purchase price and the terms of the GAP waiver, including without limitation, 
89.6 	the requirements for protection, conditions, or exclusions associated with the GAP waiver; 
89.7 	(3) that the borrower may cancel the GAP waiver within a free look period as 
89.8 	specified in the waiver, and will be entitled to a full refund of the purchase price, so 
89.9 	long as no benefits have been provided;
89.10 	(4) the procedure the borrower must follow, if any, to obtain GAP waiver benefits 
89.11 	under the terms and conditions of the waiver, including a telephone number and address 
89.12 	where the borrower may apply for waiver benefits;
89.13 	(5) whether or not the GAP waiver is cancelable after the free look period and the 
89.14 	conditions under which it may be canceled or terminated including the procedures for 
89.15 	requesting a refund due; 
89.16 	(6) that in order to receive a refund due in the event of a borrower's cancellation of 
89.17 	the GAP waiver agreement or early termination of the finance agreement after the free 
89.18 	look period of the GAP waiver, the borrower, in accordance with the terms of the waiver, 
89.19 	must provide a written cancellation request to the creditor, administrator, or other party. 
89.20 	If such a request is being made because of the termination of the finance agreement, 
89.21 	notice must be provided to the creditor, administrator, or other party within 90 days of the 
89.22 	occurrence of the event terminating the finance agreement; 
89.23 	(7) the methodology for calculating a refund of the unearned purchase price of the 
89.24 	GAP waiver due in the event of cancellation of the GAP waiver or early termination 
89.25 	of the finance agreement;
89.26 	(8) that the extension of credit, the terms of the credit, or the terms and conditions 
89.27 	of the related motor vehicle sale or lease are not conditioned upon the purchase of the 
89.28 	GAP waiver; and
89.29 	(9) that the extension of credit, the terms of the credit, or the terms and conditions 
89.30 	of the related motor vehicle sale or lease are not conditioned upon the purchase of the 
89.31 	GAP waiver.
89.32 	(b) The creditor or any person offering a GAP waiver must provide the following 
89.33 	verbatim disclosure orally and in bold, 14-point type, either in a separate writing or as 
89.34 	part of the agreement: "THE GAP WAIVER IS OPTIONAL. YOU DO NOT HAVE 
89.35 	TO PURCHASE THIS PRODUCT IN ORDER TO BUY [OR LEASE] THIS MOTOR 
89.36 	VEHICLE. YOU ALSO HAVE A LIMITED RIGHT TO CANCEL."

90.1 	Sec. 9. [59D.07] CANCELLATION; REFUNDS.
90.2 		Subdivision 1.Refund requirements during free look period.  A GAP waiver must 
90.3 	provide that, if a borrower cancels a waiver within the free look period, the borrower will 
90.4 	be entitled to a full refund of the purchase price, so long as no benefits have been provided.
90.5 		Subd. 2.Refund requirements after free-look period. (a) Guaranteed asset 
90.6 	protection waivers may be cancelable or noncancelable after the free-look period.
90.7 	(b) In the event of a borrower's cancellation of the GAP waiver or early termination 
90.8 	of the finance agreement, after the agreement has been in effect beyond the free-look 
90.9 	period, the borrower may be entitled to a refund of any unearned portion of the purchase 
90.10 	price of the waiver unless the waiver provides otherwise. In order to receive a refund, 
90.11 	the borrower, in accordance with any applicable terms of the waiver, must provide a 
90.12 	written request to the creditor, administrator, or other party. If such a request is being 
90.13 	made because of the termination of the finance agreement, notice must be provided to 
90.14 	the creditor, administrator, or other party within 90 days of the occurrence of the event 
90.15 	terminating the finance agreement.
90.16 	(c) If the cancellation of a GAP waiver occurs as a result of a default under the 
90.17 	finance agreement or the repossession of the motor vehicle associated with the finance 
90.18 	agreement, or any other termination of the finance agreement, any refund due may be paid 
90.19 	directly to the creditor or administrator and applied as set forth in subdivision 3.
90.20 		Subd. 3.How applied. A refund under subdivision 1 or 2 may be applied by the 
90.21 	creditor as a reduction of the amount owed under the finance agreement, unless the 
90.22 	borrower can show that the finance agreement has been paid in full.

90.23 	Sec. 10. Minnesota Statutes 2014, section 65B.44, is amended by adding a subdivision 
90.24 	to read:
90.25 		Subd. 2a.Person convicted of insurance fraud. (a) A person convicted of 
90.26 	insurance fraud under section 609.611 in a case related to this chapter or of employment of 
90.27 	runners under section 609.612 may not enforce a contract for payment of services eligible 
90.28 	for reimbursement under subdivision 2 against an insured or reparation obligor.
90.29 	(b) After a period of five years from the date of conviction, a person described in 
90.30 	paragraph (a) may apply to district court to extinguish the collateral sanction set forth in 
90.31 	paragraph (a), which the court may grant in its reasonable discretion.

90.32 	Sec. 11. Minnesota Statutes 2014, section 65B.84, subdivision 1, is amended to read:
90.33 		Subdivision 1.Program described; commissioner's duties; appropriation. (a) 
90.34 	The commissioner of commerce shall:
91.1 	(1) develop and sponsor the implementation of statewide plans, programs, and 
91.2 	strategies to combat automobile theft, improve the administration of the automobile theft 
91.3 	laws, and provide a forum for identification of critical problems for those persons dealing 
91.4 	with automobile theft;
91.5 	(2) coordinate the development, adoption, and implementation of plans, programs, 
91.6 	and strategies relating to interagency and intergovernmental cooperation with respect 
91.7 	to automobile theft enforcement;
91.8 	(3) annually audit the plans and programs that have been funded in whole or in part 
91.9 	to evaluate the effectiveness of the plans and programs and withdraw funding should the 
91.10 	commissioner determine that a plan or program is ineffective or is no longer in need 
91.11 	of further financial support from the fund;
91.12 	(4) develop a plan of operation including:
91.13 	(i) an assessment of the scope of the problem of automobile theft, including areas 
91.14 	of the state where the problem is greatest;
91.15 	(ii) an analysis of various methods of combating the problem of automobile theft;
91.16 	(iii) a plan for providing financial support to combat automobile theft;
91.17 	(iv) a plan for eliminating car hijacking; and
91.18 	(v) an estimate of the funds required to implement the plan; and
91.19 	(5) distribute money, in consultation with the commissioner of public safety, 
91.20 	pursuant to subdivision 3 from the automobile theft prevention special revenue account 
91.21 	for automobile theft prevention activities, including:
91.22 	(i) paying the administrative costs of the program;
91.23 	(ii) providing financial support to the State Patrol and local law enforcement 
91.24 	agencies for automobile theft enforcement teams;
91.25 	(iii) providing financial support to state or local law enforcement agencies for 
91.26 	programs designed to reduce the incidence of automobile theft and for improved 
91.27 	equipment and techniques for responding to automobile thefts;
91.28 	(iv) providing financial support to local prosecutors for programs designed to reduce 
91.29 	the incidence of automobile theft;
91.30 	(v) providing financial support to judicial agencies for programs designed to reduce 
91.31 	the incidence of automobile theft;
91.32 	(vi) providing financial support for neighborhood or community organizations or 
91.33 	business organizations for programs designed to reduce the incidence of automobile 
91.34 	theft and to educate people about the common methods of automobile theft, the models 
91.35 	of automobiles most likely to be stolen, and the times and places automobile theft is 
91.36 	most likely to occur; and
92.1 	(vii) providing financial support for automobile theft educational and training 
92.2 	programs for state and local law enforcement officials, driver and vehicle services exam 
92.3 	and inspections staff, and members of the judiciary.
92.4 	(b) The commissioner may not spend in any fiscal year more than ten percent 
92.5 	of the money in the fund for the program's administrative and operating costs. The 
92.6 	commissioner is annually appropriated and must distribute the amount of the proceeds 
92.7 	credited to the automobile theft prevention special revenue account each year, less the 
92.8 	transfer of $1,300,000 each year to the general fund insurance fraud prevention account 
92.9 	described in section 297I.11, subdivision 2.
92.10 	(c) At the end of each fiscal year, the commissioner may transfer any unobligated 
92.11 	balances in the auto theft prevention account to the insurance fraud prevention account 
92.12 	under section 45.0135, subdivision 6.

92.13 	Sec. 12. [80A.461] MNVEST REGISTRATION EXEMPTION.
92.14 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in 
92.15 	paragraphs (b) through (e) have the meanings given them.
92.16 	(b) "MNvest issuer" means an entity organized under the laws of Minnesota, other 
92.17 	than a general partnership, that satisfies the requirements of Code of Federal Regulations, 
92.18 	title 17, part 230.147, and the following requirements:
92.19 	(1) the principal office of the entity is located in Minnesota;
92.20 	(2) as of the last day of the most recent semiannual fiscal period of the entity, at least 
92.21 	80 percent, or other threshold permitted by Code of Federal Regulations,  title 17, part 
92.22 	230.147, of the entity's assets were located in Minnesota;
92.23 	(3) except in the case of an entity whose gross revenue during the most recent period 
92.24 	of 12 full months did not exceed $5,000, the entity derived at least 80 percent, or other 
92.25 	threshold permitted by Code of Federal Regulations, title 17, part 230.147, of the entity's 
92.26 	gross revenues from the operation of a business in Minnesota during (i) the previous fiscal 
92.27 	year, if the MNvest offering begins during the first six months of the entity's fiscal year; or 
92.28 	(ii) during the 12 months ending on the last day of the sixth month of the entity's current 
92.29 	fiscal year, if the MNvest offering begins following the last day;
92.30 	(4) the entity does not attempt to limit its liability, or the liability of any other 
92.31 	person, for fraud or intentional misrepresentation in connection with the offering of its 
92.32 	securities in a MNvest offering; and
92.33 	(5) the entity is not:
92.34 	(i) engaged in the business of investing, reinvesting, owning, holding, or trading in 
92.35 	securities, except that the entity may hold securities of one class in an entity that is not 
93.1 	itself engaged in the business of investing, reinvesting, owning, holding, or trading in 
93.2 	securities; or
93.3 	(ii) subject to the reporting requirements of the Securities and Exchange Act of 1934, 
93.4 	section 13 or section 15(d), United States Code, title 15, section 78m and section 78o(d).
93.5 	(c) "MNvest offering" means an offer, or an offer and sale, of securities by a MNvest 
93.6 	issuer that: (1) is conducted exclusively through a MNvest portal and (2) satisfies the 
93.7 	requirements of this section and other requirements the administrator imposes by rule.
93.8 	(d) "MNvest portal" means an Internet Web site that is operated by a portal operator 
93.9 	for the offer or sale of MNvest offerings under this section or registered securities under 
93.10 	section 80A.50, paragraph (b), and satisfies the requirements of subdivision 6.
93.11 	(e) "Portal operator" means an entity, including an issuer, that:
93.12 	(1) is authorized to do business in Minnesota;
93.13 	(2) is a broker-dealer registered under this chapter or otherwise registers with the 
93.14 	administrator as a portal operator in accordance with subdivision 7, paragraph (a), and is 
93.15 	therefore excluded from broker-dealer registration; and
93.16 	(3) satisfies such other conditions as the administrator may determine.
93.17 		Subd. 2.Generally. The offer, sale, and issuance of securities in a MNvest offering 
93.18 	is exempt from the requirements of sections 80A.49 to 80A.54, except section 80A.50, 
93.19 	paragraph (a), clause (3), and section 80A.71, if the issuer meets the qualifications under 
93.20 	this section.
93.21 		Subd. 3.MNvest offering. (a) A MNvest offering must satisfy the following 
93.22 	requirements:
93.23 	(1) the issuer must be a MNvest issuer on the date that its securities are first offered 
93.24 	for sale in the offering and continuously through the closing of the offering;
93.25 	(2) the offering must meet the requirements of the federal exemption for intrastate 
93.26 	offerings in section 3(a)(11) of the Securities Act of 1933, United States Code, title 15, 
93.27 	section 77c (a)(11), and Rule 147 adopted under the Securities Act of 1933, Code of 
93.28 	Federal Regulations, title 17, part 230.147;
93.29 	(3) the sale of securities must be conducted exclusively through a MNvest portal;
93.30 	(4) the MNvest issuer shall require the portal operator to provide or make available 
93.31 	to prospective purchasers through the MNvest portal a copy of the MNvest issuer's balance 
93.32 	sheet and income statement for the MNvest issuer's most recent fiscal year, if the issuer 
93.33 	was in existence. For offerings beginning more than 90 days after the issuer's most recent 
93.34 	fiscal year end, or if the MNvest issuer was not in existence the previous calendar year, the 
93.35 	MNvest issuer must provide or make available a balance sheet as of a date not more than 
93.36 	90 days before the commencement of the MNvest offering for the MNvest issuer's most 
94.1 	recently completed fiscal year, or such shorter portion the MNvest issuer was in existence 
94.2 	during that period, and the year-to-date period, or inception-to-date period, if shorter, 
94.3 	corresponding with the more recent balance sheet required by this clause;
94.4 	(5) in any 12-month period, the MNvest issuer shall not raise more than the 
94.5 	aggregate amounts set forth in item (i) or (ii), either in cash or other consideration, in 
94.6 	connection with one or more MNvest offerings:
94.7 	(i) $5,000,000 if the financial statements described in clause (4) have been:
94.8 	(A) audited by a certified public accountant firm licensed under chapter 326A using 
94.9 	auditing standards issued by either the American Institute of Certified Public Accountants 
94.10 	or the Public Company Oversight Board; or
94.11 	(B) reviewed by a certified public accountant firm licensed under chapter 326A 
94.12 	using the Statements on Standards for Accounting and Review Services issued by the 
94.13 	Accounting and Review Services Committee of the American Institute of Certified Public 
94.14 	Accountants; or
94.15 	(ii) $2,000,000 if the financial statements described in clause (4) have not been 
94.16 	audited or reviewed as described in item (i);
94.17 	(6) the MNvest issuer must use at least 80 percent of the net proceeds of the offering 
94.18 	in connection with the operation of its business within Minnesota;
94.19 	(7) no single purchaser may purchase more than $10,000 in securities of the MNvest 
94.20 	issuer under this exemption in connection with a single MNvest offering unless the 
94.21 	purchaser is an accredited investor;
94.22 	(8) all payments for the purchase of securities must be held in escrow until the 
94.23 	aggregate capital deposited into escrow from all purchasers is equal to or greater than the 
94.24 	stated minimum offering amount. Purchasers will receive a return of all their subscription 
94.25 	funds if the minimum offering amount is not raised by the stipulated expiration date 
94.26 	required in subdivision 4, clause (2). The escrow agent must be a bank, regulated trust 
94.27 	company, savings bank, savings association, or credit union authorized to do business 
94.28 	in Minnesota. Prior to the execution of the escrow agreement between the issuer and 
94.29 	the escrow agent, the escrow agent must conduct searches of the issuer, its executive 
94.30 	officers, directors, governors, and managers, as provided to the escrow agent by the portal 
94.31 	operator, against the Specially Designated Nationals list maintained by the Office of 
94.32 	Foreign Assets Control. The escrow agent is only responsible to act at the direction of the 
94.33 	party establishing the escrow account and does not have a duty or liability, contractual 
94.34 	or otherwise, to an investor or other person except as set forth in the applicable escrow 
94.35 	agreement or other contract;
95.1 	(9) the MNvest issuer shall require the portal operator to make available to the 
95.2 	prospective purchaser through the MNvest portal a disclosure document that meets the 
95.3 	requirements set forth in subdivision 4;
95.4 	(10) before selling securities to a prospective purchaser on a MNvest portal, the 
95.5 	MNvest issuer shall require the portal operator to obtain from the prospective purchaser 
95.6 	the certification required under subdivision 5;
95.7 	(11) not less than ten days before the beginning of an offering of securities in reliance 
95.8 	on the exemption under this section, the MNvest issuer shall provide the following to 
95.9 	the administrator:
95.10 	(i) a notice of claim of exemption from registration, specifying that the MNvest 
95.11 	issuer will be conducting an offering in reliance on the exemption under this section;
95.12 	(ii) a copy of the disclosure document to be provided to prospective purchasers in 
95.13 	connection with the offering, as described in subdivision 4; and
95.14 	(iii) a filing fee of $300; and
95.15 	(12) the MNvest issuer and the portal operator may engage in solicitation and 
95.16 	advertising of the MNvest offering provided that:
95.17 	(i) the advertisement contains disclaiming language which clearly states:
95.18 	(A) the advertisement is not the offer and is for informational purposes only;
95.19 	(B) the offering is being made in reliance on the exemption under this section;
95.20 	(C) the offering is directed only to residents of the state;
95.21 	(D) all offers and sales are made through a MNvest portal; and
95.22 	(E) the Department of Commerce is the securities regulator in Minnesota;
95.23 	(ii) along with the disclosures required under item (i), the advertisement may contain 
95.24 	no more than the following information:
95.25 	(A) the name and contact information of the MNvest issuer;
95.26 	(B) a brief description of the general type of business of the MNvest issuer;
95.27 	(C) the minimum offering amount the MNvest issuer is attempting to raise through 
95.28 	its offering;
95.29 	(D) a description of how the issuer will use the funds raised through the MNvest 
95.30 	offering;
95.31 	(E) the duration that the MNvest offering will remain open;
95.32 	(F) the MNvest issuer's logo; and
95.33 	(G) a link to the MNvest issuer's Web site and the MNvest portal in which the 
95.34 	MNvest offering is being made;
95.35 	(iii) the advertisement complies with all applicable state and federal laws.
96.1 		Subd. 4.Required disclosures to prospective MNvest offering purchasers.
 96.2 	The MNvest issuer shall require the portal operator to make available to the prospective 
96.3 	purchaser through the MNvest portal a printable or downloadable disclosure document 
96.4 	containing the following:
96.5 	(1) the MNvest issuer's type of entity, the address and telephone number of its 
96.6 	principal office, its formation history for the previous five years, a summary of the material 
96.7 	facts of its business plan and its capital structure, and its intended use of the offering 
96.8 	proceeds, including any amounts to be paid from the proceeds of the MNvest offering, as 
96.9 	compensation or otherwise, to an owner, executive officer, director, governor, manager, 
96.10 	member, or other person occupying a similar status or performing similar functions on 
96.11 	behalf of the MNvest issuer;
96.12 	(2) the MNvest offering must stipulate the date on which the offering will expire, 
96.13 	which must not be longer than 12 months from the date the MNvest offering commenced;
96.14 	(3) a copy of the escrow agreement between the escrow agent, the MNvest issuer, 
96.15 	and, if applicable, the portal operator, as described in subdivision 3, clause (8);
96.16 	(4) the financial statements required under subdivision 3, clause (4);
96.17 	(5) the identity of all persons owning more than ten percent of any class of equity 
96.18 	interests in the company;
96.19 	(6) the identity of the executive officers, directors, governors, managers, members, 
96.20 	and other persons occupying a similar status or performing similar functions in the name of 
96.21 	and on the behalf of the MNvest issuer, including their titles and their relevant experience;
96.22 	(7) the terms and conditions of the securities being offered, a description of investor 
96.23 	exit strategies, and of any outstanding securities of the MNvest issuer; the minimum and 
96.24 	maximum amount of securities being offered; either the percentage economic ownership 
96.25 	of the MNvest issuer represented by the offered securities, assuming the minimum and, if 
96.26 	applicable, maximum number of securities being offered is sold, or the valuation of the 
96.27 	MNvest issuer implied by the price of the offered securities; the price per share, unit, or 
96.28 	interest of the securities being offered; any restrictions on transfer of the securities being 
96.29 	offered; and a disclosure that any future issuance of securities might dilute the value of 
96.30 	securities being offered;
96.31 	(8) the identity of and consideration payable to a person who has been or will be 
96.32 	retained by the MNvest issuer to assist the MNvest issuer in conducting the offering and 
96.33 	sale of the securities, including a portal operator, but excluding (i) persons acting primarily 
96.34 	as accountants or attorneys, and (ii) employees whose primary job responsibilities involve 
96.35 	operating the business of the MNvest issuer rather than assisting the MNvest issuer in 
96.36 	raising capital;
97.1 	(9) a description of any pending material litigation, legal proceedings, or regulatory 
97.2 	action involving the MNvest issuer or any executive officers, directors, governors, 
97.3 	managers, members, and other persons occupying a similar status or performing similar 
97.4 	functions in the name of and on behalf of the MNvest issuer;
97.5 	(10) a statement of the material risks unique to the MNvest issuer and its business 
97.6 	plans;
97.7 	(11) a statement that the securities have not been registered under federal or state 
97.8 	securities law and that the securities are subject to limitations on resale; and
97.9 	(12) the following legend must be displayed conspicuously in the disclosure 
97.10 	document:
97.11 	"IN MAKING AN INVESTMENT DECISION, PURCHASERS MUST RELY 
97.12 	ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF 
97.13 	THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE 
97.14 	SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR 
97.15 	STATE SECURITIES COMMISSION OR DIVISION OR OTHER REGULATORY 
97.16 	AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE 
97.17 	NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY 
97.18 	OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY 
97.19 	IS A CRIMINAL OFFENSE. THESE SECURITIES ARE SUBJECT TO 
97.20 	RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE 
97.21 	TRANSFERRED OR RESOLD EXCEPT AS PERMITTED BY SUBSECTION 
97.22 	(e) OF SEC RULE 147 (CODE OF FEDERAL REGULATIONS, TITLE 17, PART 
97.23 	230.147 (e)) AS PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS 
97.24 	AMENDED, AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT 
97.25 	TO REGISTRATION OR EXEMPTION THEREFROM. PURCHASERS SHOULD 
97.26 	BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL 
97.27 	RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME."
97.28 		Subd. 5.Required certification from MNvest offering purchasers. Before 
97.29 	selling securities to a prospective purchaser through a MNvest portal, the MNvest issuer 
97.30 	shall require the portal operator to obtain from the prospective purchaser through the 
97.31 	applicable MNvest portal a written or electronic certification that includes, at a minimum, 
97.32 	the following statements:
97.33 	"I UNDERSTAND AND ACKNOWLEDGE THAT:
97.34 	If I make an investment in an offering through this MNvest portal, it is very likely 
97.35 	that I am investing in a high-risk, speculative business venture that could result in the 
97.36 	complete loss of my investment, and I need to be able to afford such a loss.
98.1 	This offering has not been reviewed or approved by any state or federal securities 
98.2 	commission or division or other regulatory authority and that no such person or authority 
98.3 	has confirmed the accuracy or determined the adequacy of any disclosure made to me 
98.4 	relating to this offering.
98.5 	If I make an investment in an offering through this MNvest portal, it is very likely 
98.6 	that the investment will be difficult to transfer or sell and, accordingly, I may be required 
98.7 	to hold the investment indefinitely.
98.8 	By entering into this transaction with the company, I am affirmatively representing 
98.9 	myself as being a Minnesota resident at the time that this contract is formed, and if this 
98.10 	representation is subsequently shown to be false, the contract is void."
98.11 		Subd. 6.MNvest portal. A MNvest portal must satisfy the requirements of clauses 
98.12 	(1) through (4):
98.13 	(1) the Web site does not contain the word "MNvest" in its URL address;
98.14 	(2) the Web site implements steps to limit Web site access to the offer or sale of 
98.15 	securities to only Minnesota residents when conducting MNvest offerings;
98.16 	(3) MNvest offerings may not be viewed on the MNvest portal by a prospective 
98.17 	purchaser until:
98.18 	(i) the portal operator verifies, through its exercise of reasonable steps, such as using 
98.19 	a third-party verification service or as otherwise approved by the administrator, that the 
98.20 	prospective purchaser is a Minnesota resident; and
98.21 	(ii) the prospective purchaser makes an affirmative acknowledgment, electronically 
98.22 	through the MNvest portal, that:
98.23 	(A) I am a Minnesota resident;
98.24 	(B) the securities and investment opportunities listed on this Web site involve 
98.25 	high-risk, speculative business ventures. If I choose to invest in any securities or 
98.26 	investment opportunity listed on this Web site, I may lose all of my investment, and 
98.27 	I can afford such a loss;
98.28 	(C) the securities and investment opportunities listed on this Web site have not 
98.29 	been reviewed or approved by any state or federal securities commission or division or 
98.30 	other regulatory authority, and no such person or authority, including this Web site, has 
98.31 	confirmed the accuracy or determined the adequacy of any disclosure made to prospective 
98.32 	investors relating to any offering; and
98.33 	(D) if I choose to invest in any securities or investment opportunity listed on this 
98.34 	Web site, I understand that the securities I will acquire may be difficult to transfer or sell, 
98.35 	that there is no ready market for the sale of such securities, that it may be difficult or 
99.1 	impossible for me to sell or otherwise dispose of this investment at any price, and that, 
99.2 	accordingly, I may be required to hold this investment indefinitely; and
99.3 	(4) the Web site complies with all other rules adopted by the administrator.
99.4 		Subd. 7.Portal operator. (a) An entity, other than a registered broker-dealer, 
99.5 	wishing to become a portal operator shall file with the administrator:
99.6 	(1) form ....... [to be approved by the administrator], including all applicable 
99.7 	schedules and supplemental information;
99.8 	(2) a copy of the articles of incorporation or other documents that indicate the 
99.9 	entity's form of organization; and
99.10 	(3) a filing fee of $200.
99.11 	(b) A portal operator's registration expires 12 months from the date the administrator 
99.12 	has approved the entity as a portal operator, and subsequent registration for the succeeding 
99.13 	12-month period shall be issued upon written application and upon payment of a renewal 
99.14 	fee of $200, without filing of further statements or furnishing any further information, 
99.15 	unless specifically requested by the administrator. This section is not applicable to a 
99.16 	registered broker-dealer functioning as a portal operator.
99.17 	(c) A portal operator that is not a broker-dealer registered under this chapter shall not:
99.18 	(1) offer investment advice or recommendations, provided that a portal operator 
99.19 	shall not be deemed to be offering investment advice or recommendations merely because 
99.20 	it (i) selects, or may perform due diligence with respect to, issuers or offerings to be listed, 
99.21 	or (ii) provides general investor educational materials;
99.22 	(2) provide transaction-based compensation for securities sold under this chapter to 
99.23 	employees, agents, or other persons unless the employees, agents, or other persons are 
99.24 	registered with the administrator and permitted to receive such compensation;
99.25 	(3) charge a fee to the issuer for an offering of securities on a MNvest portal unless 
99.26 	the fee is (i) a fixed amount for each offering, (ii) a variable amount based on the length of 
99.27 	time that the securities are offered on the MNvest portal, or (iii) a combination of such 
99.28 	fixed and variable amounts; or
99.29 	(4) hold, manage, possess, or otherwise handle purchaser funds or securities. This 
99.30 	restriction does not apply if the issuer is the portal operator.
99.31 	(d) A portal operator shall provide the administrator with read-only access to 
99.32 	administrative sections of the MNvest portal.
99.33 	(e) A portal operator shall comply with the record-keeping requirements of this 
99.34 	paragraph, provided that the failure of a portal operator that is not an issuer to maintain 
99.35 	records in compliance with this paragraph shall not affect the MNvest issuer's exemption 
99.36 	from registration afforded by this section:
100.1 	(1) a portal operator shall maintain and preserve, for a period of five years from either 
100.2 	the date of the closing or termination of the securities offering, the following records:
100.3 	(i) the name of each issuer whose securities have been listed on its MNvest portal;
100.4 	(ii) the full name, residential address, Social Security number, date of birth, and 
100.5 	copy of a state-issued identification for all owners with greater than ten percent voting 
100.6 	equity in an issuer;
100.7 	(iii) copies of all offering materials that have been displayed on its MNvest portal;
100.8 	(iv) the names and other personal information of each purchaser who has registered 
100.9 	at its MNvest portal;
100.10 	(v) any agreements and contracts between the portal operator and the issuer; and
100.11 	(vi) any information used to establish that a MNvest issuer, prospective MNvest 
100.12 	purchaser, or MNvest purchaser is a Minnesota resident;
100.13 	(2) a portal operator shall, upon written request of the administrator, furnish to the 
100.14 	administrator any records required to be maintained and preserved under this subdivision;
100.15 	(3) the records required to be kept and preserved under this subdivision must be 
100.16 	maintained in a manner, including by any electronic storage media, that will permit the 
100.17 	immediate location of any particular document so long as such records are available for 
100.18 	immediate and complete access by representatives of the administrator. Any electronic 
100.19 	storage system must preserve the records exclusively in a nonrewriteable, nonerasable 
100.20 	format; verify automatically the quality and accuracy of the storage media recording 
100.21 	process; serialize the original and, if applicable, duplicate units storage media, and 
100.22 	time-date for the required period of retention the information placed on such electronic 
100.23 	storage media; and be able to download indexes and records preserved on electronic 
100.24 	storage media to an acceptable medium. In the event that a records retention system 
100.25 	commingles records required to be kept under this subdivision with records not required to 
100.26 	be kept, representatives of the administrator may review all commingled records; and
100.27 	(4) a portal operator shall maintain such other records as the administrator shall 
100.28 	determine by rule.
100.29 		Subd. 8.Portal operator; privacy of purchaser information. (a) For purposes of 
100.30 	this subdivision, "personal information" means information provided to a portal operator 
100.31 	by a prospective purchaser or purchaser that identifies, or can be used to identify, the 
100.32 	prospective purchaser or purchaser.
100.33 	(b) Except as provided in paragraph (c), a portal operator must not disclose personal 
100.34 	information without written or electronic consent from the prospective purchaser or 
100.35 	purchaser that authorizes the disclosure.
100.36 	(c) Paragraph (b) does not apply to:
101.1 	(1) records required to be provided to the administrator under subdivision 7, 
101.2 	paragraph (e);
101.3 	(2) the disclosure of personal information to a MNvest issuer relating to its MNvest 
101.4 	offering; or
101.5 	(3) the disclosure of personal information to the extent required or authorized under 
101.6 	other law.
101.7 		Subd. 9.Bad actor disqualification. (a) An exemption under this section is not 
101.8 	available for a sale if securities in the MNvest issuer; any predecessor of the MNvest 
101.9 	issuer; any affiliated issuer; any director, executive officer, other officer participating in 
101.10 	the MNvest offering, general partner, or managing member of the MNvest issuer; any 
101.11 	beneficial owner of 20 percent or more of the MNvest issuer's outstanding voting equity 
101.12 	securities, calculated on the basis of voting power; any promoter connected with the 
101.13 	MNvest issuer in any capacity at the time of the sale; any investment manager of an 
101.14 	issuer that is a pooled investment fund; any general partner or managing member of any 
101.15 	investment manager; or any director, executive officer, or other officer participating in 
101.16 	the offering of any investment manager or general partner or managing member of the 
101.17 	investment manager:
101.18 	(1) has been convicted, within ten years before the offering, or five years, in the case 
101.19 	of MNvest issuers, their predecessors, and affiliated issuers, of any felony or misdemeanor:
101.20 	(i) in connection with the purchase or sale of any security;
101.21 	(ii) involving the making of any false filing with the Securities and Exchange 
101.22 	Commission or a state agency; or
101.23 	(iii) arising out of the conduct of the business of an underwriter, broker, dealer, 
101.24 	municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities;
101.25 	(2) is subject to any order, judgment, or decree of any court of competent jurisdiction, 
101.26 	entered within five years before the sale, that, at the time of the sale, restrains or enjoins 
101.27 	the person from engaging or continuing to engage in any conduct or practice:
101.28 	(i) in connection with the purchase or sale of any security;
101.29 	(ii) involving the making of any false filing with the Securities and Exchange 
101.30 	Commission; or
101.31 	(iii) arising out of the conduct of the business of an underwriter, broker, dealer, 
101.32 	municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities;
101.33 	(3) is subject to a final order of a state securities commission or an agency or officer 
101.34 	of a state performing like functions; a state authority that supervises or examines banks, 
101.35 	savings associations, or credit unions; a state insurance commission or an agency or 
101.36 	officer of a state performing like functions; an appropriate federal banking agency; the 
102.1 	United States Commodity Futures Trading Commission; or the National Credit Union 
102.2 	Administration that:
102.3 	(i) at the time of the offering, bars the person from:
102.4 	(A) association with an entity regulated by the commission, authority, agency, or 
102.5 	officer;
102.6 	(B) engaging in the business of securities, insurance, or banking; or
102.7 	(C) engaging in savings association or credit union activities; or
102.8 	(ii) constitutes a final order based on a violation of any law or regulation that prohibits 
102.9 	fraudulent, manipulative, or deceptive conduct entered within ten years before the offering;
102.10 	(4) is subject to an order of the Securities and Exchange Commission entered pursuant 
102.11 	to section 15(b) or 15B(c) of the Securities Exchange Act of 1934, United States Code, title 
102.12 	15, section 78 o(b) or 78o-4(c) or section 203(e) or (f) of the Investment Advisers Act of 
102.13 	1940, United States Code, title 15, section 80b-3(e) or (f) that, at the time of the offering:
102.14 	(i) suspends or revokes the person's registration as a broker, dealer, municipal 
102.15 	securities dealer, or investment adviser;
102.16 	(ii) places limitations on the activities, functions, or operations of the person; or
102.17 	(iii) bars the person from being associated with any entity or from participating in 
102.18 	the offering of any penny stock;
102.19 	(5) is subject to any order of the Securities and Exchange Commission entered 
102.20 	within five years before the sale that, at the time of the sale, orders the person to cease and 
102.21 	desist from committing or causing a violation or future violation of:
102.22 	(i) any scienter-based antifraud provision of the federal securities laws, including 
102.23 	without limitation section 17(a)(1) of the Securities Act of 1933, United States Code, title 
102.24 	15, section 77q(a)(1), section 10(b) of the Securities Exchange Act of 1934, United States 
102.25 	Code, title 15, section 78j(b) and Code of Federal Regulations, title 17, section 240.10b-5, 
102.26 	section 15(c)(1) of the Securities Exchange Act of 1934, United States Code, title 15, 
102.27 	section 78o(c)(1) and section 206(1) of the Investment Advisers Act of 1940, United 
102.28 	States Code, title 15, section 80b-6(1), or any other rule or regulation thereunder; or
102.29 	(ii) section 5 of the Securities Act of 1933, United States Code, title 15, section 77e;
102.30 	(6) is suspended or expelled from membership in, or suspended or barred from 
102.31 	association with a member of, a registered national securities exchange or a registered 
102.32 	national or affiliated securities association for any act or omission to act constituting 
102.33 	conduct inconsistent with just and equitable principles of trade;
102.34 	(7) has filed as a registrant or issuer, or was named as an underwriter in, any 
102.35 	registrations statement or Regulation A offering statement filed with the Securities and 
102.36 	Exchange Commission that, within five years before the sale, was the subject of a refusal 
103.1 	order, stop order, or order suspending the Regulation A exemption, or is, at the time of 
103.2 	the sale, the subject of an investigation or proceeding to determine whether a stop order 
103.3 	or suspension order should be issued; or
103.4 	(8) is subject to a United States Postal Service false representation order entered 
103.5 	within five years before the offering, or is, at the time of the offering, subject to a 
103.6 	temporary restraining order or preliminary injunction with respect to conduct alleged by 
103.7 	the United States Postal Service to constitute a scheme or device for obtaining money or 
103.8 	property through the mail by means of false representations.
103.9 	(b) Paragraph (a) does not apply:
103.10 	(1) with respect to any conviction, order, judgment, decree, suspension, expulsion, 
103.11 	or bar that occurred or was issued before September 23, 2013;
103.12 	(2) upon a showing of good cause and without prejudice to any other action by 
103.13 	the Securities and Exchange Commission, if the Securities and Exchange Commission 
103.14 	determines that it is not necessary under the circumstances that an exemption be denied;
103.15 	(3) if, before the relevant offering, the court of regulatory authority that entered the 
103.16 	relevant order, judgment, or decree advises in writing, whether contained in the relevant 
103.17 	judgment, order, or decree or separately to the Securities and Exchange Commission or 
103.18 	its staff, that disqualification under paragraph (a) should not arise as a consequence of 
103.19 	the order, judgment, or decree; or
103.20 	(4) if the MNvest issuer establishes that it did not know and, in the exercise of 
103.21 	reasonable care, could not have known that a disqualification existed under paragraph (a).
103.22 	(c) For purposes of paragraph (a), events relating to any affiliated issuer that occurred 
103.23 	before the affiliation arose will not be considered disqualifying if the affiliated entity is not:
103.24 	(1) in control of the issuer; or
103.25 	(2) under common control with the issuer by a third party that was in control of the 
103.26 	affiliated entity at the time of the events.

103.27 	Sec. 13. Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision 
103.28 	to read:
103.29 		Subd. 9.Voice over Internet Protocol service. "Voice over Internet Protocol 
103.30 	service" or "VoIP service" means any service that (1) enables real-time two-way voice 
103.31 	communications that originate from or terminate at the user's location in Internet protocol 
103.32 	or any successor protocol, and (2) permits users generally to receive calls that originate 
103.33 	on the public switched telephone network and terminate calls to the public switched 
103.34 	telephone network.

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

104.1 	Sec. 14. Minnesota Statutes 2014, section 237.01, is amended by adding a subdivision 
104.2 	to read:
104.3 		Subd. 10.Internet Protocol-enabled service. "Internet Protocol-enabled service" 
104.4 	or "IP-enabled service" means any service, capability, functionality, or application 
104.5 	provided using Internet protocol, or any successor protocol, that enables an end user to 
104.6 	send or receive a communication in Internet protocol format or any successor format, 
104.7 	regardless of whether that communication is voice, data, or video.

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

104.9 	Sec. 15. [237.037] VOICE OVER INTERNET PROTOCOL SERVICE AND 
104.10 	INTERNET PROTOCOL-ENABLED SERVICE.
104.11 		Subdivision 1.Regulation prohibited. Except as provided in this section, no 
104.12 	state agency, including the commission and the Department of Commerce, or political 
104.13 	subdivision of this state shall by rule, order, or other means directly or indirectly regulate 
104.14 	the entry, rates, terms, quality of service, availability, classification, or any other aspect of 
104.15 	VoIP service or IP-enabled service.
104.16 		Subd. 2.VoIP regulation. (a) To the extent permitted by federal law, VoIP service 
104.17 	is subject to the requirements of sections 237.49, 237.52, 237.70, and 403.11 with regard 
104.18 	to the collection and remittance of the surcharges governed by those sections.
104.19 	(b) A provider of VoIP service must comply with the requirements of chapter 403 
104.20 	applicable to the provision of access to 911 service by service providers, except to the 
104.21 	extent those requirements conflict with federal requirements for the provision of 911 
104.22 	service by VoIP providers under Code of Federal Regulations, title 47, part 9. A VoIP 
104.23 	provider is entitled to the benefit of the limitation of liability provisions of section 403.07, 
104.24 	subdivision 5. Beginning June 1, 2015, and continuing each June 1 thereafter, each VoIP 
104.25 	provider shall file a plan with the commission describing how it will comply with the 
104.26 	requirements of this paragraph. After its initial filing under this paragraph, a VoIP provider 
104.27 	shall file with the commission either an update of the plan or a statement certifying that 
104.28 	the plan and personnel contact information previously filed is still current.
104.29 		Subd. 3.Relation to other law. Nothing in this section restricts, creates, expands, 
104.30 	or otherwise affects or modifies:
104.31 	(1) the commission's authority under the Federal Communications Act of 1934, 
104.32 	United States Code, title 47, sections 251 and 252;
104.33 	(2) any applicable wholesale tariff or any commission authority related to wholesale 
104.34 	services;
105.1 	(3) any commission jurisdiction over (i) intrastate switched access rates, terms, 
105.2 	and conditions, including the implementation of federal law with respect to intercarrier 
105.3 	compensation, or (ii) existing commission authority to address or affect the resolution of 
105.4 	disputes regarding intercarrier compensation;
105.5 	(4) the rights of any entity, or the authority of the commission and local government 
105.6 	authorities, with respect to the use and regulation of public rights-of-way under sections 
105.7 	237.162 and 237.163; or
105.8 	(5) the establishment or enforcement of standards, requirements or procedures in 
105.9 	procurement policies, internal operational policies, or work rules of any state agency or 
105.10 	political subdivision of the state relating to the protection of intellectual property.
105.11 		Subd. 4.Exemption. The following services delivered by IP-enabled service are 
105.12 	not regulated under this chapter:
105.13 	(1) video services provided by a cable communications system, as defined in section 
105.14 	238.02, subdivision 3; or
105.15 	(2) cable service, as defined in United States Code, title 47, section 522, clause (6); or
105.16 	(3) any other IP-enabled video service.

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

105.18 	Sec. 16. Minnesota Statutes 2014, section 297I.11, subdivision 2, is amended to read:
105.19 		Subd. 2.Automobile theft prevention account. A special revenue account in 
105.20 	the state treasury shall be credited with the proceeds of the surcharge imposed under 
105.21 	subdivision 1. Of the revenue in the account, $1,300,000 each year must be transferred to 
105.22 	the general fund insurance fraud prevention account under section 45.0135, subdivision 6. 
105.23 	Revenues in excess of $1,300,000 each year may be used only for the automobile theft 
105.24 	prevention program described in section 65B.84.

105.25 	Sec. 17. Minnesota Statutes 2014, section 345.42, subdivision 1, is amended to read:
105.26 		Subdivision 1.Commissioner's duty. (a) Within the calendar year next following 
105.27 	the year in which abandoned property has been paid or delivered to the commissioner, 
105.28 	the commissioner shall provide public notice of the abandoned property in the manner 
105.29 	described in subdivision 1a, and frequency otherwise as the commissioner determines to 
105.30 	be most effective and efficient in communicating to the persons appearing to be owners of 
105.31 	this property. Public notice may include the use of print, broadcast, or electronic media. 
105.32 	The commissioner shall, at a minimum, expend 15 percent of the funds allocated by 
105.33 	the legislature to the operations of the unclaimed property division, to comply with the 
106.1 	public notice requirements of this subdivision section, and shall report to the legislature 
106.2 	annually on how those funds are expended.

106.3 	Sec. 18. Minnesota Statutes 2014, section 345.42, is amended by adding a subdivision 
106.4 	to read:
106.5 		Subd. 1a.Public notice. (a) Public notice provided by the commissioner shall 
106.6 	include the following:
106.7 	(1) posting on the Department of Commerce's Web site a list of all persons appearing 
106.8 	to be owners of abandoned property. The list shall be arranged in alphabetical order by 
106.9 	the last name of the person, and further organized by county. The list of persons must be 
106.10 	updated at least three times per year and must remain on the Department of Commerce's 
106.11 	Web site at all times;
106.12 	(2) publication in a qualified newspaper a list of persons appearing to be owners of 
106.13 	abandoned property having a value of $500 or more. The list shall be published in the 
106.14 	largest circulation qualified newspaper in each county, and shall include the names of all 
106.15 	persons whose last known address is within the county. The list must be published at least 
106.16 	once per year. The commissioner may stagger publication of the entire list of owners by 
106.17 	publishing a partial list at least twice, but no more than three times per year. Each qualified 
106.18 	newspaper that publishes the list shall, at no additional charge to the commissioner, also 
106.19 	post the list on its Web site or on a central Web site that can be accessed directly from the 
106.20 	qualified newspaper's Web site. The list must be accessible on the Web site for not less 
106.21 	than 180 days, and at no cost to the public. The qualified newspaper must include in its 
106.22 	publication of the list a reference to its Web site or a central Web site; and
106.23 	(3) dissemination of information to persons appearing to be owners of abandoned 
106.24 	property through other means and media, including broadcast media, the Internet, and 
106.25 	social media.
106.26 	(b) Beginning July 1, 2016, and annually thereafter, the commissioner shall 
106.27 	provide to each member of the legislature a list of all persons appearing to be owners of 
106.28 	abandoned property whose last known address is located in the legislator's respective 
106.29 	legislative district.

106.30 	Sec. 19. [609.613] ACCIDENT VICTIM SOLICITATION.
106.31 	(a) A person who contacts an individual to offer professional or commercial services 
106.32 	with knowledge that the individual has been involved in a motor vehicle accident must not:
106.33 	(1) provide any fraudulent, false, deceptive, or misleading information; or
107.1 	(2) offer, directly or indirectly, any inducement to use the professional or commercial 
107.2 	services, including but not limited to the provision of any free service, cash, gift cards, 
107.3 	cash equivalents, promotional items, entry into a sweepstakes, or any other thing of value.
107.4 	(b) The disclosure by a licensed attorney that legal representation may be undertaken 
107.5 	on a contingency fee basis does not constitute an inducement to use the professional 
107.6 	or commercial services under this section.

107.7 	Sec. 20. USE OF VENDOR TO FACILITATE RETURN OF ABANDONED 
107.8 	PROPERTY.
 107.9 	The commissioner shall, using a request for proposal process, contract with a vendor 
107.10 	who will facilitate the return of abandoned property to owners. As consideration for 
107.11 	such services the vendor shall receive up to seven percent of the value of the abandoned 
107.12 	property, not to exceed $500,000, when such abandoned property is returned to its owner. 
107.13 	This consideration shall not be paid from the abandoned property itself. A vendor may not 
107.14 	assess any fees, charges, or costs to the owner of the abandoned property.

107.15 	Sec. 21. REPORT ON UNCLAIMED PROPERTY DIVISION.
 107.16 	The commissioner shall report by February 15, 2016, to the chairs and ranking 
107.17 	minority members of the standing committees of the house of representatives and senate 
107.18 	having jurisdiction over commerce issues, regarding the process owners of abandoned 
107.19 	property must comply with in order to file an allowed claim under Minnesota Statutes, 
107.20 	chapter 345, and the effectiveness of the vendor used by the commissioner to facilitate the 
107.21 	return of the abandoned property. The report shall include:
107.22 	(1) information regarding the documentation and identification necessary for owners 
107.23 	of each type of abandoned property under Minnesota Statutes, chapter 345, to file an 
107.24 	allowed claim; and
107.25 	(2) a review of the methods and effectiveness of the vendor in returning abandoned 
107.26 	property under Minnesota Statutes, chapter 345, to the owner.

107.27 	Sec. 22.  REPEALER.
 107.28 	Minnesota Statutes 2014, sections 80G.01; 80G.02; 80G.03; 80G.04; 80G.05; 
107.29 	80G.06; 80G.07; 80G.08; 80G.09; and 80G.10, are repealed.

107.30 	ARTICLE 6
107.31 	UNEMPLOYMENT INSURANCE

107.32 	Section 1. Minnesota Statutes 2014, section 268.035, subdivision 6, is amended to read:
108.1 		Subd. 6.Benefit year. "Benefit year" means the period of 52 calendar weeks 
108.2 	beginning the date a benefit account is effective. For a benefit account established 
108.3 	effective any January 1, April 1, July 1, or October 1, or January 2, 2000, or October 2, 
108.4 	2011, the benefit year will be a period of 53 calendar weeks.

108.5 	EFFECTIVE DATE. This section is effective August 2, 2015.

108.6 	Sec. 2. Minnesota Statutes 2014, section 268.035, subdivision 21b, is amended to read:
108.7 		Subd. 21b.Preponderance of the evidence. "Preponderance of the evidence" 
108.8 	means evidence in substantiation support of a fact that, when weighed against the evidence 
108.9 	opposing the fact, is more convincing and has a greater probability of truth than the 
108.10 	evidence opposing the fact.

108.11 	EFFECTIVE DATE. This section is effective August 2, 2015.

108.12 	Sec. 3. Minnesota Statutes 2014, section 268.035, subdivision 26, is amended to read:
108.13 		Subd. 26.Unemployed. An applicant is considered "unemployed" (1) in any week 
108.14 	that:
108.15 	(1) the applicant performs less than 32 hours of service in employment, covered 
108.16 	employment, noncovered employment, self-employment, or volunteer work; and 
108.17 	(2) any earnings with respect to that week are less than the applicant's weekly 
108.18 	unemployment benefit amount.

108.19 	EFFECTIVE DATE. This section is effective August 2, 2015.

108.20 	Sec. 4. Minnesota Statutes 2014, section 268.035, subdivision 30, is amended to read:
108.21 		Subd. 30.Wages paid. (a) "Wages paid" means the amount of wages:
108.22 	(1) that have been actually paid; or
108.23 	(2) that have been credited to or set apart so that payment and disposition is under 
108.24 	the control of the employee.
108.25 	(b) Wage payments delayed beyond the regularly scheduled pay date are considered 
108.26 	"wages paid" on the missed pay date. Back pay is considered "wages paid" on the date 
108.27 	of actual payment. Any wages earned but not paid with no scheduled date of payment is 
108.28 	considered "wages paid" on the last day of employment.
108.29 	(b) (c) Wages paid does not include wages earned but not paid except as provided 
108.30 	for in this subdivision.

108.31 	EFFECTIVE DATE. This section is effective August 2, 2015.

109.1 	Sec. 5. Minnesota Statutes 2014, section 268.051, is amended by adding a subdivision 
109.2 	to read:
109.3 		Subd. 2a.Unemployment insurance tax reduction. (a) If the balance in the trust 
109.4 	fund on December 31 of any calendar year exceeds the average high cost multiple of 0.9, 
109.5 	future unemployment taxes payable must be reduced by all amounts above 0.9. The 
109.6 	amount of tax reduction for any taxpaying employer is the same percentage of the total 
109.7 	amount above 0.9 as the percentage of taxes paid by nonmaximum experience rated 
109.8 	employers for the prior calendar year.
109.9 	(b) This subdivision only applies if the balance in the trust fund on December 31 is 
109.10 	four percent or more above the average high cost multiple of 0.9.
109.11 	(c) For the purposes of this subdivision, "average high cost multiple" has the same 
109.12 	meaning as given in Code of Federal Regulations, title 20, section 606.3, as amended 
109.13 	through the effective date of this section.
109.14 	(d) This subdivision does not apply to employers that are at the maximum experience 
109.15 	rating for the calendar year, nor to high experience rating industry employers under section 
109.16 	268.051, subdivision 5, paragraph (b). Computations under paragraph (a) are not subject 
109.17 	to the rounding requirement of section 268.034. The refund provisions of section 268.057, 
109.18 	subdivision 7, do not apply. Computations under paragraph (a) are based upon taxes paid 
109.19 	on or before February 15 of the calendar year.
109.20 	(e) The unemployment tax reduction under this subdivision applies to taxes paid 
109.21 	between March 1 and December 15 of the year following the December 31 calculation 
109.22 	under paragraph (a).

109.23 	Sec. 6. Minnesota Statutes 2014, section 268.051, subdivision 7, is amended to read:
109.24 		Subd. 7.Tax rate buydown. (a) Any taxpaying employer that has been assigned 
109.25 	a tax rate based upon an experience rating, and has no amounts past due under this 
109.26 	chapter, may, upon the payment of an amount equivalent to any portion or all of the 
109.27 	unemployment benefits used in computing the experience rating plus a surcharge of 25 
109.28 	percent, obtain a cancellation of unemployment benefits used equal to the payment made, 
109.29 	less the surcharge. The payment is applied to the most recent unemployment benefits paid 
109.30 	that are used in computing the experience rating. Upon the payment, the commissioner 
109.31 	must compute a new experience rating for the employer, and compute a new tax rate.
109.32 	(b) Payments for a tax rate buydown may be made only by electronic payment 
109.33 	and must be received within 120 calendar days from the beginning of the calendar year 
109.34 	for which the tax rate is effective.
110.1 	(c) For calendar years 2011, 2012, and 2013, the surcharge of 25 percent provided 
110.2 	for in paragraph (a) does not apply.

110.3 	EFFECTIVE DATE. This section is effective August 2, 2015.

110.4 	Sec. 7. Minnesota Statutes 2014, section 268.07, subdivision 2, is amended to read:
110.5 		Subd. 2.Benefit account requirements. (a) Unless paragraph (b) applies, to 
110.6 	establish a benefit account an applicant must have total wage credits in the applicant's four 
110.7 	quarter base period of at least: (1) $2,400; or (2) 5.3 percent of the state's average annual 
110.8 	wage rounded down to the next lower $100, whichever is higher.
110.9 	(b) To establish a new benefit account within 52 calendar weeks following the 
110.10 	expiration of the benefit year on a prior benefit account, an applicant must have performed 
110.11 	services actual work in subsequent covered employment and have been paid wages in one 
110.12 	or more completed calendar quarters that started after the effective date of the prior benefit 
110.13 	account. The wages paid for those services that employment must be at least enough to 
110.14 	meet the requirements of paragraph (a). A benefit account under this paragraph may not 
110.15 	be established effective earlier than the Sunday following the end of the most recent 
110.16 	completed calendar quarter in which the requirements of paragraph (a) were met. One 
110.17 	of the reasons for this paragraph is to prevent An applicant from establishing may not 
110.18 	establish a second benefit account as a result of one loss of employment.

110.19 	EFFECTIVE DATE. This section is effective August 2, 2015, except the amendment 
110.20 	striking "within 52 calendar weeks" is effective the day following final enactment.

110.21 	Sec. 8. Minnesota Statutes 2014, section 268.07, subdivision 3b, is amended to read:
110.22 		Subd. 3b.Limitations on applications and benefit accounts. (a) An application for 
110.23 	unemployment benefits is effective the Sunday of the calendar week that the application 
110.24 	was filed. An application for unemployment benefits may be backdated one calendar week 
110.25 	before the Sunday of the week the application was actually filed if the applicant requests 
110.26 	the backdating at the time the application is filed. An application may be backdated only 
110.27 	if the applicant was unemployed during the period of the backdating. If an individual 
110.28 	attempted to file an application for unemployment benefits, but was prevented from filing 
110.29 	an application by the department, the application is effective the Sunday of the calendar 
110.30 	week the individual first attempted to file an application.
110.31 	(b) A benefit account established under subdivision 2 is effective the date the 
110.32 	application for unemployment benefits was effective.
110.33 	(c) A benefit account, once established, may later be withdrawn only if:
111.1 	(1) the applicant has not been paid any unemployment benefits on that benefit 
111.2 	account; and
111.3 	(2) a new application for unemployment benefits is filed and a new benefit account is 
111.4 	established at the time of the withdrawal.
111.5 	A determination or amended determination of eligibility or ineligibility issued under 
111.6 	section 268.101, that was sent before the withdrawal of the benefit account, remains in 
111.7 	effect and is not voided by the withdrawal of the benefit account.
111.8 	(d) An application for unemployment benefits is not allowed before the Sunday 
111.9 	following the expiration of the benefit year on a prior benefit account. Except as allowed 
111.10 	under paragraph (c), an applicant may establish only one benefit account each 52 calendar 
111.11 	weeks. This paragraph applies to benefit accounts established under any federal law or 
111.12 	the law of any other state.

111.13 	EFFECTIVE DATE. This section is effective August 2, 2015.

111.14 	Sec. 9. Minnesota Statutes 2014, section 268.085, subdivision 1, is amended to read:
111.15 		Subdivision 1.Eligibility conditions. An applicant may be eligible to receive 
111.16 	unemployment benefits for any week if:
111.17 	(1) the applicant has filed a continued request for unemployment benefits for that 
111.18 	week under section 268.0865;
111.19 	(2) the week for which unemployment benefits are requested is in the applicant's 
111.20 	benefit year;
111.21 	(3) the applicant was unemployed as defined in section 268.035, subdivision 26;
111.22 	(4) the applicant was available for suitable employment as defined in subdivision 
111.23 	15. The applicant's weekly unemployment benefit amount is reduced one-fifth for each 
111.24 	day the applicant is unavailable for suitable employment. This clause does not apply to 
111.25 	an applicant who is in reemployment assistance training, or each day the applicant is on 
111.26 	jury duty or serving as an election judge;
111.27 	(5) the applicant was actively seeking suitable employment as defined in subdivision 
111.28 	16. This clause does not apply to an applicant who is in reemployment assistance training 
111.29 	or who was on jury duty throughout the week;
111.30 	(6) the applicant has served a nonpayable period of one week that the applicant is 
111.31 	otherwise entitled to some amount of unemployment benefits. This clause does not apply 
111.32 	if the applicant would have been entitled to federal disaster unemployment assistance 
111.33 	because of a disaster in Minnesota, but for the applicant's establishment of a benefit 
111.34 	account under section 268.07; and
112.1 	(7) the applicant has been participating in reemployment assistance services, such as 
112.2 	job development of, and adherence to, a work search and resume writing classes plan, if 
112.3 	the applicant has been determined in need of reemployment assistance services directed 
112.4 	to participate by the commissioner, unless. This clause does not apply if the applicant 
112.5 	has good cause for failing to participate.

112.6 	EFFECTIVE DATE. This section is effective August 2, 2015.

112.7 	Sec. 10. Minnesota Statutes 2014, section 268.085, subdivision 2, is amended to read:
112.8 		Subd. 2.Not eligible. An applicant is ineligible for unemployment benefits for 
112.9 	any week:
112.10 	(1) that occurs before the effective date of a benefit account;
112.11 	(2) that the applicant, at the beginning of the week, has an outstanding fraud 
112.12 	overpayment balance under section 268.18, subdivision 2, including any penalties and 
112.13 	interest;
112.14 	(3) that occurs in a period when the applicant is a student in attendance at, or on 
112.15 	vacation from a secondary school including the period between academic years or terms;
112.16 	(4) that the applicant is incarcerated or performing court-ordered community service. 
112.17 	The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day 
112.18 	the applicant is incarcerated or performing court-ordered community service;
112.19 	(5) that the applicant fails or refuses to provide information on an issue of 
112.20 	ineligibility required under section 268.101;
112.21 	(6) that the applicant is performing services 32 hours or more, in employment, 
112.22 	covered employment, noncovered employment, volunteer work, or self-employment 
112.23 	regardless of the amount of any earnings; or
112.24 	(7) with respect to which the applicant is receiving, has received, or has filed an 
112.25 	application for unemployment benefits under any federal law or the law of any other 
112.26 	state. If the appropriate agency finally determines that the applicant is not entitled to the 
112.27 	unemployment benefits establish a benefit account under federal law of the law of any 
112.28 	other state, this clause does not apply.

112.29 	EFFECTIVE DATE. This section is effective August 2, 2015.

112.30 	Sec. 11. Minnesota Statutes 2014, section 268.095, subdivision 1, is amended to read:
112.31 		Subdivision 1.Quit. An applicant who quit employment is ineligible for all 
112.32 	unemployment benefits according to subdivision 10 except when:
113.1 	(1) the applicant quit the employment because of a good reason caused by the 
113.2 	employer as defined in subdivision 3;
113.3 	(2) the applicant quit the employment to accept other covered employment that 
113.4 	provided substantially equal to or better terms and conditions of employment, but 
113.5 	the applicant did not work long enough at the second employment to have sufficient 
113.6 	subsequent earnings to satisfy the period of ineligibility that would otherwise be imposed 
113.7 	under subdivision 10 for quitting the first employment;
113.8 	(3) the applicant quit the employment within 30 calendar days of beginning the 
113.9 	employment because the employment was unsuitable for the applicant;
113.10 	(4) the employment was unsuitable for the applicant and the applicant quit to enter 
113.11 	reemployment assistance training;
113.12 	(5) the employment was part time and the applicant also had full-time employment 
113.13 	in the base period, from which full-time employment the applicant separated because of 
113.14 	reasons for which the applicant was held is not to be ineligible, and the wage credits from 
113.15 	the full-time employment are sufficient to meet the minimum requirements to establish a 
113.16 	benefit account under section 268.07;
113.17 	(6) the applicant quit because the employer notified the applicant that the applicant 
113.18 	was going to be laid off because of lack of work within 30 calendar days. An applicant 
113.19 	who quit employment within 30 calendar days of a notified date of layoff because of lack 
113.20 	of work is ineligible for unemployment benefits through the end of the week that includes 
113.21 	the scheduled date of layoff;
113.22 	(7) the applicant quit the employment (i) because the applicant's serious illness or 
113.23 	injury made it medically necessary that the applicant quit; or (ii) in order to provide 
113.24 	necessary care because of the illness, injury, or disability of an immediate family member 
113.25 	of the applicant. This exception only applies if the applicant informs the employer of 
113.26 	the medical problem and requests accommodation and no reasonable accommodation 
113.27 	is made available.
113.28 	If the applicant's serious illness is chemical dependency, this exception does not 
113.29 	apply if the applicant was previously diagnosed as chemically dependent or had treatment 
113.30 	for chemical dependency, and since that diagnosis or treatment has failed to make 
113.31 	consistent efforts to control the chemical dependency.
113.32 	This exception raises an issue of the applicant's being available for suitable 
113.33 	employment under section 268.085, subdivision 1, that the commissioner must determine;
113.34 	(8) the applicant's loss of child care for the applicant's minor child caused the 
113.35 	applicant to quit the employment, provided the applicant made reasonable effort to obtain 
114.1 	other child care and requested time off or other accommodation from the employer and no 
114.2 	reasonable accommodation is available.
114.3 	This exception raises an issue of the applicant's being available for suitable 
114.4 	employment under section 268.085, subdivision 1, that the commissioner must determine;
114.5 	(9) the applicant quit because domestic abuse, sexual assault, or stalking of the 
114.6 	applicant or an immediate family member of the applicant, necessitated the applicant's 
114.7 	quitting the employment.
114.8 	For purposes of this subdivision:
114.9 	(i) "domestic abuse" has the meaning given in section 518B.01;
114.10 	(ii) "sexual assault" means an act that would constitute a violation of sections 
114.11 	609.342 to 609.3453 or 609.352; and
114.12 	(iii) "stalking" means an act that would constitute a violation of section 609.749; or
114.13 	(10) the applicant quit in order to relocate to accompany a spouse whose job location 
114.14 	changed making it impractical for the applicant to commute. This exception only applies 
114.15 	if the spouse's job is in the military or provides total wages and other compensation that 
114.16 	is equal to or better than the applicant's employment. When determining if total wages 
114.17 	and compensation are equal to or better than the applicant's employment, differences in 
114.18 	cost of living must be considered.

114.19 	EFFECTIVE DATE. This section is effective August 2, 2015.

114.20 	Sec. 12. Minnesota Statutes 2014, section 268.095, subdivision 10, is amended to read:
114.21 		Subd. 10.Ineligibility duration. (a) Ineligibility from the payment of all 
114.22 	unemployment benefits under subdivisions 1 and 4 is for the duration of the applicant's 
114.23 	unemployment and until the end of the calendar week that the applicant had total wages 
114.24 	paid for actual work performed in subsequent covered employment sufficient to meet 
114.25 	one-half of the requirements of section 268.07, subdivision 2, paragraph (a).
114.26 	(b) Ineligibility imposed under subdivisions 1 and 4 begins on the Sunday of the 
114.27 	week that the applicant became separated from employment.
114.28 	(c) In addition to paragraph (a), if the applicant was discharged from employment 
114.29 	because of aggravated employment misconduct, wage credits from that employment are 
114.30 	canceled and cannot be used for purposes of a benefit account under section 268.07, 
114.31 	subdivision 2.

114.32 	EFFECTIVE DATE. This section is effective August 2, 2015.

114.33 	Sec. 13. Minnesota Statutes 2014, section 268.105, subdivision 3, is amended to read:
115.1 		Subd. 3.Withdrawal of an appeal. (a) Any An appeal that is pending before 
115.2 	an unemployment law judge may be withdrawn by the appealing person party, or an 
115.3 	authorized representative of that person party, upon by filing of a notice of withdrawal. A 
115.4 	notice of withdrawal may be filed by mail or by electronic transmission.
115.5 	(b) The appeal must, by order, be dismissed if a notice of withdrawal is filed, unless 
115.6 	an unemployment law judge directs that further adjudication is proceedings are required 
115.7 	for a proper result. An order of dismissal issued as a result of a notice of withdrawal is 
115.8 	not subject to reconsideration or appeal.
115.9 	(c) A notice of withdrawal may be filed by mail or by electronic transmission. A 
115.10 	party may file a new appeal after the order of dismissal, but the original 20-calendar-day 
115.11 	period for appeal begins from the date of issuance of the determination and that time 
115.12 	period is not suspended or restarted by the notice of withdrawal and order of dismissal. 
115.13 	The new appeal may only be filed by mail or facsimile transmission.
115.14 	(d) For purposes of this subdivision, "appeals" includes a request for reconsideration 
115.15 	filed under subdivision 2.

115.16 	EFFECTIVE DATE. This section is effective August 2, 2015.

115.17 	Sec. 14. Minnesota Statutes 2014, section 268.105, subdivision 7, is amended to read:
115.18 		Subd. 7.Judicial review. (a) The Minnesota Court of Appeals must, by writ 
115.19 	of certiorari to the department, review the unemployment law judge's decision on 
115.20 	reconsideration, provided a petition for the writ is filed with the court and a copy is served 
115.21 	upon the unemployment law judge or the commissioner and any other party within 30 
115.22 	calendar days of the sending of the unemployment law judge's decision on reconsideration 
115.23 	under subdivision 2. Three days are added to the 30-calendar-day period if the decision on 
115.24 	reconsideration was mailed to the parties.
115.25 	(b) Any employer petitioning for a writ of certiorari must pay to the court the 
115.26 	required filing fee in accordance with the Rules of Civil Appellate Procedure. If the 
115.27 	employer requests a written transcript of the testimony received at the hearing conducted 
115.28 	under subdivision 1, the employer must pay to the department the cost of preparing the 
115.29 	transcript. That money is credited to the administration account.
115.30 	(c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a 
115.31 	result of an applicant's petition, the department must furnish to the applicant at no cost a 
115.32 	written transcript of any testimony received at the hearing conducted under subdivision 1, 
115.33 	and, if requested, a copy of all exhibits entered into evidence. No filing fee or cost bond is 
115.34 	required of an applicant petitioning the Minnesota Court of Appeals for a writ of certiorari.
116.1 	(d) The Minnesota Court of Appeals may affirm the decision of the unemployment 
116.2 	law judge or remand the case for further proceedings; or it may reverse or modify the 
116.3 	decision if the substantial rights of the petitioner may have been prejudiced because the 
116.4 	findings, inferences, conclusion, or decision are:
116.5 	(1) in violation of constitutional provisions;
116.6 	(2) in excess of the statutory authority or jurisdiction of the department;
116.7 	(3) made upon unlawful procedure;
116.8 	(4) affected by other error of law;
116.9 	(5) unsupported by substantial evidence in view of the entire record as submitted; or
116.10 	(6) arbitrary or capricious.
116.11 	(e) The department is considered the primary responding party to any judicial action 
116.12 	involving an unemployment law judge's decision. The department may be represented by 
116.13 	an attorney licensed to practice law in Minnesota who is an employee of the department.

116.14 	EFFECTIVE DATE. This section is effective August 2, 2015.

116.15 	Sec. 15. Minnesota Statutes 2014, section 268.136, subdivision 1, is amended to read:
116.16 		Subdivision 1.Shared work plan requirements.  An employer may submit a 
116.17 	proposed shared work plan for an employee group to the commissioner for approval in a 
116.18 	manner and format set by the commissioner. The proposed shared work plan must include:
116.19 	(1) a certified statement that the normal weekly hours of work of all of the proposed 
116.20 	participating employees were full time or regular part time but are now reduced, or will be 
116.21 	reduced, with a corresponding reduction in pay, in order to prevent layoffs;
116.22 	(2) the name and Social Security number of each participating employee;
116.23 	(3) the number of layoffs that would have occurred absent the employer's ability to 
116.24 	participate in a shared work plan;
116.25 	(4) a certified statement that each participating employee was first hired by the 
116.26 	employer at least one year before the proposed shared work plan is submitted and is not a 
116.27 	seasonal, temporary, or intermittent worker;
116.28 	(5) the hours of work each participating employee will work each week for the 
116.29 	duration of the shared work plan, which must be at least 50 percent of the normal weekly 
116.30 	hours but no more than 90 80 percent of the normal weekly hours, except that the plan 
116.31 	may provide for a uniform vacation shutdown of up to two weeks;
116.32 	(6) a certified statement that any health benefits and pension benefits provided by 
116.33 	the employer to participating employees will continue to be provided under the same 
116.34 	terms and conditions as though the participating employees' hours of work each week had 
116.35 	not been reduced;
117.1 	(7) a certified statement that the terms and implementation of the shared work plan is 
117.2 	consistent with the employer's obligations under state and federal law;
117.3 	(8) an acknowledgement that the employer understands that unemployment benefits 
117.4 	paid under a shared work plan will be used in computing the future tax rate of a taxpaying 
117.5 	employer or charged to the reimbursable account of a nonprofit or government employer;
117.6 	(9) the proposed duration of the shared work plan, which must be at least two months 
117.7 	and not more than one year, although a plan may be extended for up to an additional 
117.8 	year upon approval of the commissioner;
117.9 	(10) a starting date beginning on a Sunday at least 15 calendar days after the date the 
117.10 	proposed shared work plan is submitted; and
117.11 	(11) a signature of an owner or officer of the employer who is listed as an owner or 
117.12 	officer on the employer's account under section 268.045.

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

117.14 	Sec. 16. Minnesota Statutes 2014, section 268.194, subdivision 1, is amended to read:
117.15 		Subdivision 1.Establishment. There is established as a special state trust fund, 
117.16 	separate and apart from all other public money or funds of this state, an unemployment 
117.17 	insurance trust fund, that is administered by the commissioner exclusively for the payment 
117.18 	of unemployment benefits. This trust fund consists of:
117.19 	(1) all taxes collected;
117.20 	(2) interest earned upon any money in the trust fund;
117.21 	(3) reimbursements paid by nonprofit organizations and the state and political 
117.22 	subdivisions;
117.23 	(4) tax rate buydown payments under section 268.051, subdivision 7;
117.24 	(5) any money received as a loan from the federal unemployment trust fund in 
117.25 	accordance with United States Code, title 42, section 1321, of the Social Security Act;
117.26 	(6) any other money received under a reciprocal unemployment benefit arrangement 
117.27 	with the federal government or any other state;
117.28 	(7) money recovered on overpaid unemployment benefits except, if allowed by 
117.29 	federal law, five percent of any recovered amount is credited to the administration account;
117.30 	(8) all money credited to the account under this chapter;
117.31 	(9) all money credited to the account of Minnesota in the federal unemployment 
117.32 	trust fund under United States Code, title 42, section 1103, of the Social Security Act, 
117.33 	also known as the Reed Act; and
117.34 	(10) all money received for the trust fund from any other source.

118.1 	EFFECTIVE DATE. This section is effective August 2, 2015.

118.2 	Sec. 17. ADDITIONAL UNEMPLOYMENT INSURANCE TAX REDUCTION.
 118.3 	Notwithstanding any other law, on December 31, 2015, future unemployment taxes 
118.4 	payable must be reduced by $200,000,000 in addition to any reduction under section 
118.5 	268.051, subdivision 2a. This tax reduction must be distributed among employers using 
118.6 	the same method as prescribed for tax reductions under section 268.051, subdivision 2a.

118.7 	Sec. 18. SPECIAL UNEMPLOYMENT BENEFIT ASSISTANCE.
 118.8 	Notwithstanding Minnesota Statutes, sections 268.085, subdivision 3, paragraph (a), 
118.9 	and 268.035, subdivision 29, paragraph (a), clause (13), applicants laid off due to lack of 
118.10 	work from a facility engaged directly in the extraction or processing of iron ore in Itasca 
118.11 	County, St. Louis County, or Lake County between March 1, 2015, and December 31, 
118.12 	2015, must not be ineligible for unemployment benefits because of:
118.13 	(1) the receipt of vacation pay from the employer engaged in the extraction or 
118.14 	processing of iron ore; or
118.15 	(2) the receipt of supplemental unemployment benefits from the employer engaged 
118.16 	in the extraction or processing of iron ore.

118.17 	EFFECTIVE DATE. This section is effective the day following final enactment 
118.18 	and is retroactive to March 1, 2015. This section expires December 31, 2016.

118.19 	ARTICLE 7
118.20 	DELIVERED FUELS

118.21 	Section 1. Minnesota Statutes 2014, section 216B.02, is amended by adding a 
118.22 	subdivision to read:
118.23 		Subd. 3a.Propane. "Propane" means a gas made of primarily propane and butane, 
118.24 	and stored in liquid form in pressurized tanks.

118.25 	Sec. 2. Minnesota Statutes 2014, section 216B.02, is amended by adding a subdivision 
118.26 	to read:
118.27 		Subd. 3b.Propane storage facility. "Propane storage facility" means a facility 
118.28 	designed to store or capable of storing propane in liquid form in pressurized tanks.

118.29 	Sec. 3. Minnesota Statutes 2014, section 216B.02, is amended by adding a subdivision 
118.30 	to read:
119.1 		Subd. 6b.Synthetic gas. "Synthetic gas" means flammable gas created from (1) 
119.2 	gaseous, liquid, or solid hydrocarbons, or (2) other organic or inorganic matter. Synthetic 
119.3 	gas includes hydrogen or methane produced through processing, but does not include 
119.4 	propane.

119.5 	Sec. 4. Minnesota Statutes 2014, section 216B.2421, subdivision 2, is amended to read:
119.6 		Subd. 2.Large energy facility. "Large energy facility" means:
119.7 	(1) any electric power generating plant or combination of plants at a single site with 
119.8 	a combined capacity of 50,000 kilowatts or more and transmission lines directly associated 
119.9 	with the plant that are necessary to interconnect the plant to the transmission system;
119.10 	(2) any high-voltage transmission line with a capacity of 200 kilovolts or more and 
119.11 	greater than 1,500 feet in length;
119.12 	(3) any high-voltage transmission line with a capacity of 100 kilovolts or more with 
119.13 	more than ten miles of its length in Minnesota or that crosses a state line;
119.14 	(4) any pipeline greater than six inches in diameter and having more than 50 miles of 
119.15 	its length in Minnesota used for the transportation of coal, crude petroleum or petroleum 
119.16 	fuels or oil, or their derivatives;
119.17 	(5) any pipeline for transporting natural or synthetic gas at pressures in excess of 
119.18 	200 pounds per square inch with more than 50 miles of its length in Minnesota;
119.19 	(6) any facility designed for or capable of storing on a single site more than 100,000 
119.20 	gallons of liquefied natural gas or synthetic gas, excluding propane storage facilities;
119.21 	(7) any underground gas storage facility requiring a permit pursuant to section 
119.22 	103I.681;
119.23 	(8) any nuclear fuel processing or nuclear waste storage or disposal facility; and
119.24 	(9) any facility intended to convert any material into any other combustible fuel and 
119.25 	having the capacity to process in excess of 75 tons of the material per hour.

119.26 	Sec. 5. Minnesota Statutes 2014, section 453A.02, subdivision 5, is amended to read:
119.27 		Subd. 5.Gas. "Gas" means either natural or synthetic gas, including propane, 
119.28 	manufactured gas, methane from coal beds, geothermal gas, or any mixture thereof, 
119.29 	whether in gaseous or liquid form, or any by-product resulting therefrom.

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

119.31 	Sec. 6. PREPURCHASING PROPANE; REPORT.
 120.1 	(a) The commissioner of commerce shall conduct a study of the operation of the 
120.2 	propane prepurchase program under Minnesota Statutes, section 216B.0951. The study 
120.3 	must address:
120.4 	(1) the amount and price of propane prepurchased;
120.5 	(2) the locations where prepurchased propane was stored and any costs of storage;
120.6 	(3) a description of how the propane was distributed to customers, focusing on the 
120.7 	activities of the local agencies that deliver energy assistance and propane distributors;
120.8 	(4) a description of any obstacles that interfered with the efficient operation of the 
120.9 	program, and suggestions for overcoming those obstacles; and
120.10 	(5) an estimate of the savings that accrued to propane customers as a result of the 
120.11 	prepurchase program.
120.12 	(b) By January 1 of 2016 and 2017, the commissioner of commerce shall submit a 
120.13 	report containing the information required under this section for the previous calendar year 
120.14 	to the chairs and ranking minority members of the senate and house of representatives 
120.15 	committees with primary responsibility for energy policy.

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

120.17 	ARTICLE 8
120.18 	ENERGY CONSERVATION

120.19 	Section 1. Minnesota Statutes 2014, section 216B.16, subdivision 6b, is amended to 
120.20 	read:
120.21 		Subd. 6b.Energy conservation improvement. (a) Except as otherwise provided 
120.22 	in this subdivision, all investments and expenses of a public utility as defined in section 
120.23 	216B.241, subdivision 1, paragraph (h), incurred in connection with energy conservation 
120.24 	improvements shall be recognized and included by the commission in the determination of 
120.25 	just and reasonable rates as if the investments and expenses were directly made or incurred 
120.26 	by the utility in furnishing utility service.
120.27 	(b) The commission shall not include investments and expenses for energy 
120.28 	conservation improvements in determining (i) just and reasonable electric rates for retail 
120.29 	electric service provided to large customer facilities whose electric utilities have been 
120.30 	exempted by the commissioner under section 216B.241, subdivision 1a, paragraph (b), 
120.31 	with respect to those large customer facilities; or (ii) just and reasonable gas rates for 
120.32 	large energy facilities, large customer facilities whose natural gas utilities have been 
120.33 	exempted by the commissioner under section 216B.241, subdivision 1a, paragraph (b), or 
121.1 	commercial gas customer facilities whose natural gas utilities have been exempted by the 
121.2 	commissioner under section 216B.241, subdivision 1a, paragraph (c).
121.3 	(c) The commission may permit a public utility to file rate schedules providing for 
121.4 	annual recovery of the costs of energy conservation improvements. These rate schedules 
121.5 	may be applicable to less than all the customers in a class of retail customers if necessary 
121.6 	to reflect the requirements of section 216B.241. The commission shall allow a public 
121.7 	utility, without requiring a general rate filing under this section, to reduce the electric rates 
121.8 	applicable to large customer facilities that have been exempted by the commissioner under 
121.9 	section 216B.241, subdivision 1a, paragraph (b), and to reduce the gas rate applicable to a 
121.10 	large energy facility, a large customer facility or commercial customer facility that has 
121.11 	been exempted by the commissioner under section 216B.241, subdivision 1a, paragraph 
121.12 	(b) or (c), or by the commission under section 216B.241, subdivision 2, by an amount that 
121.13 	reflects the elimination of energy conservation improvement investments or expenditures 
121.14 	for those facilities. In the event that the commission has set electric or gas rates based on 
121.15 	the use of an accounting methodology that results in the cost of conservation improvements 
121.16 	being recovered from utility customers over a period of years, the rate reduction may 
121.17 	occur in a series of steps to coincide with the recovery of balances due to the utility for 
121.18 	conservation improvements made by the utility on or before December 31, 2007.
121.19 	(d) Investments and expenses of a public utility shall not include electric utility 
121.20 	infrastructure costs as defined in section 216B.1636, subdivision 1, paragraph (b).
121.21 	(e) This subdivision expires December 31, 2016.

121.22 	Sec. 2. Minnesota Statutes 2014, section 216B.16, subdivision 6c, is amended to read:
121.23 		Subd. 6c.Incentive plan for energy conservation improvement. (a) The 
121.24 	commission may order public utilities to develop and submit for commission approval 
121.25 	incentive plans that describe the method of recovery and accounting for utility 
121.26 	conservation expenditures and savings. In developing the incentive plans the commission 
121.27 	shall ensure the effective involvement of interested parties.
121.28 	(b) In approving incentive plans, the commission shall consider:
121.29 	(1) whether the plan is likely to increase utility investment in cost-effective energy 
121.30 	conservation;
121.31 	(2) whether the plan is compatible with the interest of utility ratepayers and other 
121.32 	interested parties;
121.33 	(3) whether the plan links the incentive to the utility's performance in achieving 
121.34 	cost-effective conservation; and
121.35 	(4) whether the plan is in conflict with other provisions of this chapter.
122.1 	(c) The commission may set rates to encourage the vigorous and effective 
122.2 	implementation of utility conservation programs. The commission may:
122.3 	(1) increase or decrease any otherwise allowed rate of return on net investment based 
122.4 	upon the utility's skill, efforts, and success in conserving energy;
122.5 	(2) share between ratepayers and utilities the net savings resulting from energy 
122.6 	conservation programs to the extent justified by the utility's skill, efforts, and success in 
122.7 	conserving energy; and
122.8 	(3) adopt any mechanism that satisfies the criteria of this subdivision, such that 
122.9 	implementation of cost-effective conservation is a preferred resource choice for the public 
122.10 	utility considering the impact of conservation on earnings of the public utility.
122.11 	(d) This subdivision expires December 31, 2016.

122.12 	Sec. 3. Minnesota Statutes 2014, section 216B.2401, is amended to read:
122.13 	216B.2401 ENERGY SAVINGS POLICY GOAL.
122.14 	(a) The legislature finds that energy savings are an energy resource, and that 
122.15 	cost-effective energy savings are preferred over all other energy resources. The legislature 
122.16 	further finds that cost-effective energy savings should be procured systematically and 
122.17 	aggressively in order to reduce utility costs for businesses and residents, improve the 
122.18 	competitiveness and profitability of businesses, create more energy-related jobs, reduce 
122.19 	the economic burden of fuel imports, and reduce pollution and emissions that cause 
122.20 	climate change. Therefore, it is the energy policy of the state of Minnesota to achieve 
122.21 	annual energy savings equal to at least 1.5 percent of annual retail energy sales of 
122.22 	electricity and natural gas through cost-effective energy conservation improvement 
122.23 	programs and rate design, energy efficiency achieved by energy consumers without 
122.24 	direct utility involvement, energy codes and appliance standards, programs designed 
122.25 	to transform the market or change consumer behavior, energy savings resulting from 
122.26 	efficiency improvements to the utility infrastructure and system, and other efforts to 
122.27 	promote energy efficiency and energy conservation.
122.28 	(b) This section expires December 31, 2016.

122.29 	Sec. 4. Minnesota Statutes 2014, section 216B.241, is amended by adding a 
122.30 	subdivision to read:
122.31 		Subd. 11.Expiration. This section expires December 31, 2016.

122.32 	Sec. 5. [216C.418] ENERGY STORAGE, SOLAR THERMAL, WIND, AND 
122.33 	GEOTHERMAL HEAT PUMP REBATE PROGRAM.
123.1 		Subdivision 1.Definitions. For the purposes of this section, the following terms 
123.2 	have the meanings given them:
123.3 	(1) "energy storage system" means a technology that stores electricity that has been 
123.4 	previously generated and that releases the electricity for use at a later time;
123.5 	(2)"geothermal heat pump" means a technology consisting of:
123.6 	(i) a ground heat exchanger that consists of a system of underground pipes containing 
123.7 	a circulating liquid that absorbs and relinquishes heat from the earth;
123.8 	(ii) a heat pump that transfers heat between the ground and a building interior; and
123.9 	(iii) an air delivery system that delivers heat throughout a building's interior rooms;
123.10 	(3) "solar thermal system" means a flat plate or evacuated tube that meets the 
123.11 	requirements of section 216C.25 with a fixed orientation that collects the sun's radiant 
123.12 	energy and transfers it to a storage medium for distribution as energy to heat or cool air 
123.13 	or water; and
123.14 	(4) "wind energy conversion system" has the meaning given in section 216C.06, 
123.15 	subdivision 19, except that for the purposes of this section a wind energy conversion 
123.16 	system may have a capacity no greater than 40 kilowatts.
123.17 		Subd. 2.Program. (a) The commissioner of commerce shall establish a program 
123.18 	to provide rebates to residential, commercial, and industrial property owners who install 
123.19 	energy storage systems, wind energy conversion systems, geothermal heat pumps, or solar 
123.20 	thermal systems in their Minnesota business or residence after the effective date of this 
123.21 	act. Applications for a rebate under this section must be made to the commissioner on a 
123.22 	form developed by the commissioner. The commissioner shall develop administrative 
123.23 	procedures governing the application and rebate award process. Applications will be 
123.24 	reviewed and rebates awarded on a first-come, first-served basis.
123.25 	(b) An applicant is ineligible to receive a rebate under this section for installing a 
123.26 	technology if the utility served by the applicant offers a rebate for installing that technology.
123.27 		Subd. 3.Geothermal heat pump; application. An application for a rebate for a 
123.28 	geothermal heat pump under this section must, at a minimum, contain evidence that 
123.29 	the geothermal heat pump:
123.30 	(1) is a closed-loop system;
123.31 	(2) includes both air cooling and heating applications; and
123.32 	(3) has a Coefficient of Performance and an Energy Efficiency Ratio that meet the 
123.33 	minimum standards set by the commissioner.
123.34 		Subd. 4.Rebate amounts. (a) For a geothermal heat pump, the rebate amount is the 
123.35 	lesser of 20 percent of the installation and equipment cost or $20,000.
124.1 	(b) For an energy storage system with a capacity of 40 kilowatts or less, the rebate 
124.2 	shall be the lesser of 50 percent of the installation and equipment cost or $40,000.
124.3 	(c) For a solar thermal system, the maximum rebate for a single family residential 
124.4 	dwelling installation is the lesser of 25 percent of the installed cost of a complete system 
124.5 	or $2,500. The maximum rebate for a multiple family residential dwelling installation 
124.6 	is the lesser of 25 percent of the installed cost of a complete system or $5,000. The 
124.7 	maximum rebate for a commercial or industrial installation is the lesser of 25 percent of 
124.8 	the installation cost of the complete system or $25,000. The system must be installed 
124.9 	by a factory authorized installer.
124.10 	(d) For a wind energy conversion system, the rebate amount is equal to the lesser of 
124.11 	30 percent of the installation and equipment cost or $15,000.

124.12 	Sec. 6. Minnesota Statutes 2014, section 216C.435, subdivision 5, is amended to read:
124.13 		Subd. 5.Energy improvement. "Energy improvement" means:
124.14 	(1) any renovation or retrofitting of a building to improve energy efficiency that 
124.15 	is permanently affixed to the property and that results in a net reduction in energy 
124.16 	consumption without altering the principal source of energy;
124.17 	(2) permanent installation of new or upgraded electrical circuits and related 
124.18 	equipment to enable electrical vehicle charging; or
124.19 	(3) a renewable energy system attached to, installed within, or proximate to a 
124.20 	building that generates electrical or thermal energy from a renewable energy source; or
124.21 	(4) the installation of infrastructure, machinery, and appliances that allow:
124.22 	(i) natural gas to be used as a heating fuel on the premises of an existing building 
124.23 	that was previously not connected to a source of natural gas; or
124.24 	(ii) propane to be used as a heating fuel on the premises of an existing building that 
124.25 	previously did not use propane.

124.26 	Sec. 7. ENERGY CONSERVATION SERVICE DELIVERY; ADVISORY TASK 
124.27 	FORCE.
 124.28 	(a) By July 1, 2015, the commissioner of commerce shall convene an energy 
124.29 	conservation advisory task force to examine the feasibility of reorganizing the delivery 
124.30 	of energy conservation services under Minnesota Statutes, section 216B.241, in order to 
124.31 	increase energy savings, make energy more affordable to ratepayers, and reduce pollution 
124.32 	from energy generation. As part of its inquiry, the task force shall examine new and 
124.33 	emerging energy technologies and the experience of states that deliver energy conservation 
124.34 	services to ratepayers through a third-party provider.
125.1 	(b) The commissioner of commerce or the commissioner's designee shall serve as 
125.2 	chair of the advisory task force. The commissioner of commerce shall appoint to the task 
125.3 	force one member to represent the interests of each of the following:
125.4 	(1) public utilities;
125.5 	(2) generation and transmission cooperatives that implement energy conservation 
125.6 	programs for member utilities;
125.7 	(3) municipal utilities;
125.8 	(4) an organization representing utility business customers; and
125.9 	(5) a nonprofit organization experienced in developing and implementing energy 
125.10 	conservation programs.
125.11 	The speaker of the house of representatives and the president of the senate shall each 
125.12 	appoint one at-large member to the advisory task force.
125.13 	(c) The advisory task force shall submit a report containing its findings and 
125.14 	recommendations by February 1, 2016, to the chairs and ranking minority members of 
125.15 	the senate and house of representatives committees with primary jurisdiction over energy 
125.16 	policy.

125.17 	ARTICLE 9
125.18 	RENEWABLE FUELS

125.19 	Section 1. Minnesota Statutes 2014, section 16B.323, is amended to read:
125.20 	16B.323 SOLAR ENERGY IN STATE BUILDINGS.
125.21 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
125.22 	have the meanings given.
125.23 	(b) "Made in Minnesota" means the manufacture in this state of:
125.24 	(i) components of a solar thermal system certified by the Solar Rating and 
125.25 	Certification Corporation; or
125.26 	(ii) solar photovoltaic modules that:
125.27 	(1) are manufactured at a manufacturing facility in Minnesota that is registered and 
125.28 	authorized to manufacture those solar photovoltaic modules by Underwriters Laboratory, 
125.29 	CSA International, Intertek, or an equivalent independent testing agency;
125.30 	(2) bear certification marks from Underwriters Laboratory, CSA International, 
125.31 	Intertek, or an equivalent independent testing agency; and
125.32 	(3) meet the requirements of section 116C.7791, subdivision 3, paragraph (a), 
125.33 	clauses (1), (5), and (6).
126.1 	For the purposes of clause (ii), "manufactured" has the meaning given in section 
126.2 	116C.7791, subdivision 1, paragraph (b), clauses (1) and (2).
126.3 	(c) "Major renovation" means a substantial addition to an existing building, or a 
126.4 	substantial change to the interior configuration or the energy system of an existing building.
126.5 	(d) (c) "Solar energy system" means solar photovoltaic modules devices alone or 
126.6 	installed in conjunction with a solar thermal system.
126.7 	(e) (d) "Solar photovoltaic module device" has the meaning given in section 
126.8 	116C.7791, subdivision 1, paragraph (e) 216C.06, subdivision 17.
126.9 	(f) (e) "Solar thermal system" has the meaning given "qualifying solar thermal 
126.10 	project" in section 216B.2411, subdivision 2, paragraph (e).
126.11 	(g) (f) "State building" means a building whose construction or renovation is paid 
126.12 	wholly or in part by the state from the bond proceeds fund.
126.13 		Subd. 2.Solar energy system. (a) As provided in paragraphs (b) and (c), a project 
126.14 	for the construction or major renovation of a state building, after the completion of a 
126.15 	cost-benefit analysis, may include installation of "Made in Minnesota" solar energy 
126.16 	systems of 40 kilowatts capacity on, adjacent, or in proximity to the state building.
126.17 	(b) The capacity of a solar energy system must be less than 40 kilowatts to the extent 
126.18 	necessary to match the electrical load of the building or to the extent necessary to keep the 
126.19 	costs for the installation below the five percent maximum set by paragraph (c).
126.20 	(c) The cost of the solar energy system must not exceed five percent of the 
126.21 	appropriations from the bond proceeds fund for the construction or renovation of the state 
126.22 	building. Purchase and installation of a solar thermal system may account for no more 
126.23 	than 25 percent of the cost of a solar energy system installation.
126.24 	(d) A project subject to this section is ineligible to receive a rebate for the installation 
126.25 	of a solar energy system under section 116C.7791 or from any utility.

126.26 	Sec. 2. Minnesota Statutes 2014, section 116C.779, subdivision 1, is amended to read:
126.27 		Subdivision 1.Renewable development Energy fund account. (a) The energy 
126.28 	fund account is established as a separate account in the special revenue fund in the state 
126.29 	treasury. Appropriations and transfers to the account shall be credited to the account. 
126.30 	Earnings, such as interest, dividends, and any other earnings arising from assets of the 
126.31 	account shall be credited to the account. Funds remaining in the account at the end of a 
126.32 	fiscal year are not canceled to the general fund, but remain in the account until expended.
126.33 	(b) On July 1, 2015, the public utility that owns the Prairie Island nuclear generating 
126.34 	plant shall transfer all funds in the renewable development account previously established 
126.35 	under this subdivision and managed by the public utility, except funds awarded to grantees 
127.1 	in previous grant cycles that have not yet been expended and unencumbered funds 
127.2 	required to be paid in calendar year 2015 under sections 116C.7791, 116C.7792, and 
127.3 	216C.41, to the energy fund account established in paragraph (a). 
127.4 	(c) Beginning January 15, 2016, and continuing each January 15 thereafter, the 
127.5 	public utility that owns the Prairie Island nuclear generating plant must transfer to a 
127.6 	renewable development the energy fund account $500,000 each year for each dry cask 
127.7 	containing spent fuel that is located at the Prairie Island power plant for each year the plant 
127.8 	is in operation, and $7,500,000 each year the plant is not in operation if ordered by the 
127.9 	commission pursuant to paragraph (c) (f). The fund transfer must be made if nuclear waste 
127.10 	is stored in a dry cask at the independent spent-fuel storage facility at Prairie Island for 
127.11 	any part of a year.
127.12 	(b) (d) Beginning January 15, 2016, and continuing each January 15 thereafter, 
127.13 	the public utility that owns the Monticello nuclear generating plant must transfer to the 
127.14 	renewable development energy fund account account $350,000 each year for each dry 
127.15 	cask containing spent fuel that is located at the Monticello nuclear power plant for each 
127.16 	year the plant is in operation, and $5,250,000 each year the plant is not in operation if 
127.17 	ordered by the commission pursuant to paragraph (c) (f). The fund transfer must be made 
127.18 	if nuclear waste is stored in a dry cask at the independent spent-fuel storage facility at 
127.19 	Monticello for any part of a year. 
127.20 	(e) Each year, of the funds transferred to the energy fund account under paragraphs 
127.21 	(c) and (d), the public utility shall withhold the amount necessary to pay its obligations 
127.22 	under sections 116C.7791, 116C.7792, and 216C.41 for that calendar year.
127.23 	(c) (f) After discontinuation of operation of the Prairie Island nuclear plant or the 
127.24 	Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 
127.25 	discontinued facility, the commission shall require the public utility to pay $7,500,000 for 
127.26 	the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello 
127.27 	facility for any year in which the commission finds, by the preponderance of the evidence, 
127.28 	that the public utility did not make a good faith effort to remove the spent nuclear 
127.29 	fuel stored at the facility to a permanent or interim storage site out of the state. This 
127.30 	determination shall be made at least every two years.
127.31 	(d) Funds in the account may be expended only for any of the following purposes:
127.32 	(1) to increase the market penetration within the state of renewable electric energy 
127.33 	resources at reasonable costs;
127.34 	(2) to promote the start-up, expansion, and attraction of renewable electric energy 
127.35 	projects and companies within the state;
128.1 	(3) to stimulate research and development within the state into renewable electric 
128.2 	energy technologies; and
128.3 	(4) to develop near-commercial and demonstration scale renewable electric projects 
128.4 	or near-commercial and demonstration scale electric infrastructure delivery projects if 
128.5 	those delivery projects enhance the delivery of renewable electric energy.
128.6 	The utility that owns a nuclear generating plant is eligible to apply for renewable 
128.7 	development account grants.
128.8 	(e) Expenditures authorized by this subdivision from the account may be made only 
128.9 	after approval by order of the Public Utilities Commission upon a petition by the public 
128.10 	utility. The commission may approve proposed expenditures, may disapprove proposed 
128.11 	expenditures that it finds to be not in compliance with this subdivision or otherwise 
128.12 	not in the public interest, and may, if agreed to by the public utility, modify proposed 
128.13 	expenditures. The commission may approve reasonable and necessary expenditures 
128.14 	for administering the account in an amount not to exceed five percent of expenditures. 
128.15 	Commission approval is not required for expenditures required under subdivisions 2 
128.16 	and 3, section 116C.7791, or other law.
128.17 	(f) The account shall be managed by the public utility but the public utility must 
128.18 	consult about account expenditures with an advisory group that includes, among others, 
128.19 	representatives of its ratepayers. The commission may require that other interests be 
128.20 	represented on the advisory group. The advisory group must be consulted with respect to 
128.21 	the general scope of expenditures in designing a request for proposal and in evaluating 
128.22 	projects submitted in response to a request for proposals. In addition to consulting with the 
128.23 	advisory group, the public utility must utilize an independent third-party expert to evaluate 
128.24 	proposals submitted in response to a request for proposal, including all proposals made by 
128.25 	the public utility. A request for proposal for research and development under paragraph (d), 
128.26 	clause (3), may be limited to or include a request to higher education institutions located in 
128.27 	Minnesota for multiple projects authorized under paragraph (d), clause (3). The request for 
128.28 	multiple projects may include a provision that exempts the projects from the third-party 
128.29 	expert review and instead provides for project evaluation and selection by a merit peer 
128.30 	review grant system. The utility should attempt to reach agreement with the advisory 
128.31 	group after consulting with it but the utility has full and sole authority to determine which 
128.32 	expenditures shall be submitted to the commission for commission approval. In the 
128.33 	process of determining request for proposal scope and subject and in evaluating responses 
128.34 	to request for proposals, the public utility must strongly consider, where reasonable, 
128.35 	potential benefit to Minnesota citizens and businesses and the utility's ratepayers.
129.1 	(g) Funds in the account may not be directly appropriated by the legislature by a law 
129.2 	enacted after January 1, 2012, and unless appropriated by a law enacted prior to that date 
129.3 	may be expended only pursuant to an order of the commission according to this subdivision.
129.4 	(h) A request for proposal for renewable energy generation projects must, when 
129.5 	feasible and reasonable, give preference to projects that are most cost-effective for a 
129.6 	particular energy source.
129.7 	(i) The public utility must annually, by February 15, report to the chairs and ranking 
129.8 	minority members of the legislative committees with jurisdiction over energy policy on 
129.9 	projects funded by the account for the prior year and all previous years. The report must, 
129.10 	to the extent possible and reasonable, itemize the actual and projected financial benefit to 
129.11 	the public utility's ratepayers of each project.
129.12 	(j) A project receiving funds from the account must produce a written final report 
129.13 	that includes sufficient detail for technical readers and a clearly written summary for 
129.14 	nontechnical readers. The report must include an evaluation of the project's financial, 
129.15 	environmental, and other benefits to the state and the public utility's ratepayers.
129.16 	(k) Final reports, any mid-project status reports, and renewable development account 
129.17 	financial reports must be posted online on a public Web site designated by the commission.
129.18 	(l) All final reports must acknowledge that the project was made possible in whole 
129.19 	or part by the Minnesota renewable development fund, noting that the fund is financed 
129.20 	by the public utility's ratepayers.

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

129.22 	Sec. 3. Minnesota Statutes 2014, section 116C.7792, is amended to read:
129.23 	116C.7792 SOLAR ENERGY INCENTIVE PROGRAM.
129.24 	(a) The utility subject to section 116C.779 shall operate a program to provide solar 
129.25 	energy production incentives for solar energy systems of no more than a total nameplate 
129.26 	capacity of 20 kilowatts direct current. The program shall be operated for five consecutive 
129.27 	calendar years commencing in 2014.The utility shall allocate up to $5,000,000 shall be 
129.28 	allocated for each of the five years year during which applications are acceptedfrom the 
129.29 	renewable development account established in section 116C.779 to a separate account for 
129.30 	the purpose of the solar production incentive program. The solar system must be sized to 
129.31 	less than 120 percent of the customer's on-site annual energy consumption. The production 
129.32 	incentive must be paid for ten years commencing with the commissioning of the system. 
129.33 	The utility must file a plan to operate the program with the commissioner of commerce. 
129.34 	The utility may not operate the program until it is approved by the commissioner.
130.1 	(b) The utility shall not make incentive payments under this section for any 
130.2 	application received after the effective date of this act.

130.3 	Sec. 4. Minnesota Statutes 2014, section 216B.164, subdivision 3, is amended to read:
130.4 		Subd. 3.Purchases; small facilities. (a) This paragraph applies to cooperative 
130.5 	electric associations and municipal utilities. For a qualifying facility having less than 
130.6 	40-kilowatt capacity, the customer shall be billed for the net energy supplied by the utility 
130.7 	according to the applicable rate schedule for sales to that class of customer. A cooperative 
130.8 	electric association or municipal utility may charge an additional fee to recover the 
130.9 	remaining fixed costs required to serve the customer. In the case of net input into the utility 
130.10 	system by a qualifying facility having less than 40-kilowatt capacity, compensation to the 
130.11 	customer shall be at a per kilowatt-hour rate determined under paragraph (c) or, (d), or (f).
130.12 	(b) This paragraph applies to public utilities. For a qualifying facility having less 
130.13 	than 1,000-kilowatt capacity, the customer shall be billed for the net energy supplied by 
130.14 	the utility according to the applicable rate schedule for sales to that class of customer. In 
130.15 	the case of net input into the utility system by a qualifying facility having: (1) more than 
130.16 	40-kilowatt but less than 1,000-kilowatt capacity, compensation to the customer shall be 
130.17 	at a per kilowatt-hour rate determined under paragraph (c); or (2) less than 40-kilowatt 
130.18 	capacity, compensation to the customer shall be at a per-kilowatt rate determined under 
130.19 	paragraph (c) or paragraph (d).
130.20 	(c) In setting rates, the commission shall consider the fixed distribution costs to the 
130.21 	utility not otherwise accounted for in the basic monthly charge and shall ensure that the 
130.22 	costs charged to the qualifying facility are not discriminatory in relation to the costs 
130.23 	charged to other customers of the utility. The commission shall set the rates for net 
130.24 	input into the utility system based on avoided costs as defined in the Code of Federal 
130.25 	Regulations, title 18, section 292.101, paragraph (b)(6), the factors listed in Code of 
130.26 	Federal Regulations, title 18, section 292.304, and all other relevant factors.
130.27 	(d) This paragraph applies to qualifying facilities having less than 40-kilowatt 
130.28 	capacity that have elected a rate of compensation for net input into the utility system before 
130.29 	the effective date of this act. Notwithstanding any provision in this chapter to the contrary, 
130.30 	a qualifying facility having less than 40-kilowatt capacity may elect that the compensation 
130.31 	for net input by the qualifying facility into the utility system shall be at the average retail 
130.32 	utility energy rate. "Average retail utility energy rate" is defined as the average of the retail 
130.33 	energy rates, exclusive of special rates based on income, age, or energy conservation, 
130.34 	according to the applicable rate schedule of the utility for sales to that class of customer.
131.1 	(e) If the qualifying facility or net metered facility is interconnected with a 
131.2 	nongenerating utility which has a sole source contract with a municipal power agency or a 
131.3 	generation and transmission utility, the nongenerating utility may elect to treat its purchase 
131.4 	of any net input under this subdivision as being made on behalf of its supplier and shall 
131.5 	be reimbursed by its supplier for any additional costs incurred in making the purchase. 
131.6 	Qualifying facilities or net metered facilities having less than 1,000-kilowatt capacity if 
131.7 	interconnected to a public utility, or less than 40-kilowatt capacity if interconnected to a 
131.8 	cooperative electric association or municipal utility may, at the customer's option, elect to 
131.9 	be governed by the provisions of subdivision 4.
131.10 	(f) A customer with a qualifying facility or net metered facility having a capacity 
131.11 	below 40 kilowatts that is interconnected to a cooperative electric association or a 
131.12 	municipal utility may elect to be compensated for the customer's net input into the utility 
131.13 	system in the form of a kilowatt-hour credit on the customer's energy bill carried forward 
131.14 	and applied to subsequent energy bills. Any kilowatt-hour credits carried forward by the 
131.15 	customer cancel at the end of the calendar year with no additional compensation.

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

131.17 	Sec. 5. Minnesota Statutes 2014, section 216B.1641, is amended to read:
131.18 	216B.1641 COMMUNITY SOLAR GARDEN.
131.19 	(a) The public utility subject to section 116C.779 shall file by September 30, 2013, a 
131.20 	plan with the commission to operate a community solar garden program which shall begin 
131.21 	operations within 90 days after commission approval of the plan. Other public utilities 
131.22 	may file an application at their election. The community solar garden program must be 
131.23 	designed to offset the energy use of not less than five subscribers in each community 
131.24 	solar garden facility of which no single subscriber has more than a 40 percent interest. 
131.25 	The owner of the community solar garden may be a public utility or any other entity or 
131.26 	organization that contracts to sell the output from the community solar garden to the 
131.27 	utility under section 216B.164. There shall be no limitation on the number or cumulative 
131.28 	generating capacity of community solar garden facilities other than the limitations imposed 
131.29 	under section 216B.164, subdivision 4c, or other limitations provided in law or regulations.
131.30 	(b) A solar garden is a facility that generates electricity by means of a ground-mounted 
131.31 	or roof-mounted solar photovoltaic device whereby subscribers receive a bill credit for 
131.32 	the electricity generated in proportion to the size of their subscription. The solar garden 
131.33 	must have a nameplate capacity of no more than one megawatt. Each subscription shall be 
131.34 	sized to represent at least 200 watts of the community solar garden's generating capacity 
132.1 	and to supply, when combined with other distributed generation resources serving the 
132.2 	premises, no more than 120 percent of the average annual consumption of electricity by 
132.3 	each subscriber at the premises to which the subscription is attributed.
132.4 	(c) The solar generation facility must be located in the service territory of the public 
132.5 	utility filing the plan. Subscribers must be retail customers of the public utility located in 
132.6 	the same county or a county contiguous to where the facility is located.
132.7 	(d) The public utility must purchase from the community solar garden all energy 
132.8 	generated by the solar garden. The purchase shall be at the rate calculated under section 
132.9 	216B.164, subdivision 10, or, until that rate for the public utility has been approved by 
132.10 	the commission, the applicable retail rate. A solar garden is eligible for any incentive 
132.11 	programs offered under either section 116C.7792 or section 216C.415. A subscriber's 
132.12 	portion of the purchase shall be provided by a credit on the subscriber's bill.
132.13 	(e) The commission may approve, disapprove, or modify a community solar garden 
132.14 	program. Any plan approved by the commission must:
132.15 	(1) reasonably allow for the creation, financing, and accessibility of community 
132.16 	solar gardens;
132.17 	(2) establish uniform standards, fees, and processes for the interconnection 
132.18 	of community solar garden facilities that allow the utility to recover reasonable 
132.19 	interconnection costs for each community solar garden;
132.20 	(3) not apply different requirements to utility and nonutility community solar garden 
132.21 	facilities;
132.22 	(4) be consistent with the public interest;
132.23 	(5) identify the information that must be provided to potential subscribers to ensure 
132.24 	fair disclosure of future costs and benefits of subscriptions;
132.25 	(6) include a program implementation schedule;
132.26 	(7) identify all proposed rules, fees, and charges; and
132.27 	(8) identify the means by which the program will be promoted.
132.28 	(f) Notwithstanding any other law, neither the manager of nor the subscribers to a 
132.29 	community solar garden facility shall be considered a utility solely as a result of their 
132.30 	participation in the community solar garden facility.
132.31 	(g) Within 180 days of commission approval of a plan under this section, a utility 
132.32 	shall begin crediting subscriber accounts for each community solar garden facility in 
132.33 	its service territory, and shall file with the commissioner of commerce a description of 
132.34 	its crediting system.
132.35 	(h) For the purposes of this section, the following terms have the meanings given:
133.1 	(1) "subscriber" means a retail customer of a utility who owns one or more 
133.2 	subscriptions of a community solar garden facility interconnected with that utility; and
133.3 	(2) "subscription" means a contract between a subscriber and the owner of a solar 
133.4 	garden.

133.5 	Sec. 6. Minnesota Statutes 2014, section 216B.1691, is amended to read:
133.6 	216B.1691 RENEWABLE ADVANCED ENERGY OBJECTIVES 
133.7 	STANDARDS.
133.8 		Subdivision 1.Definitions. (a) Unless otherwise specified in law, "eligible energy 
133.9 	technology" means an energy technology that:
133.10 	(1) generates electricity from the following renewable energy sources:
133.11 	(1) (i) solar;
133.12 	(2) (ii) wind;
133.13 	(3) (iii) hydroelectric with a capacity of less than 100 megawatts;
133.14 	(4) hydrogen, provided that after January 1, 2010, the hydrogen must be generated 
133.15 	from the resources listed in this paragraph; or
133.16 	(iv) hydroelectric with a capacity of 100 megawatts or greater that was first placed 
133.17 	into service after January 1, 2015; or
133.18 	(5) (v) biomass, which includes, without limitation, landfill gas; an anaerobic 
133.19 	digester system; the predominantly organic components of wastewater effluent, sludge, or 
133.20 	related by-products from publicly owned treatment works, but not including incineration 
133.21 	of wastewater sludge to produce electricity; and an energy recovery facility used to 
133.22 	capture the heat value of mixed municipal solid waste or refuse-derived fuel from mixed 
133.23 	municipal solid waste as a primary fuel; or
133.24 	(2) stores electricity previously generated from a renewable resource listed in clause 
133.25 	(1) that can be released for use at a later time.
133.26 	(b) "Electric utility" means a public utility providing electric service, a generation 
133.27 	and transmission cooperative electric association, a municipal power agency, or a power 
133.28 	district.
133.29 	(c) "Total retail electric sales" means the kilowatt-hours of electricity sold in a year 
133.30 	by an electric utility to retail customers of the electric utility or to a distribution utility 
133.31 	for distribution to the retail customers of the distribution utility. "Total retail electric 
133.32 	sales" does not include the sale of hydroelectricity supplied by a federal power marketing 
133.33 	administration or other federal agency, regardless of whether the sales are directly to a 
133.34 	distribution utility or are made to a generation and transmission utility and pooled for 
133.35 	further allocation to a distribution utility.
134.1 		Subd. 2.Eligible energy objectives. Each electric utility shall make a good 
134.2 	faith effort to generate or procure sufficient electricity generated by an eligible energy 
134.3 	technology to provide its retail consumers, or the retail customers of a distribution utility 
134.4 	to which the electric utility provides wholesale electric service, so that commencing 
134.5 	in 2005, at least one percent of the electric utility's total retail electric sales to retail 
134.6 	customers in Minnesota is generated by eligible energy technologies and seven percent of 
134.7 	the electric utility's total retail electric sales to retail customers in Minnesota by 2010 is 
134.8 	generated by eligible energy technologies.
134.9 		Subd. 2a.Eligible Advanced energy technology standard; schedule. (a) Except 
134.10 	as provided in paragraph (b), each electric utility shall generate or procure sufficient 
134.11 	electricity generated by an eligible energy technology to provide its retail customers in 
134.12 	Minnesota, or the retail customers of a distribution utility to which the electric utility 
134.13 	provides wholesale electric service, so that at least the following standard percentages of 
134.14 	the electric utility's total retail electric sales to retail customers in Minnesota are generated 
134.15 	by eligible energy technologies by the end of the year indicated:

134.16	(1)
	2012
	12 percent
	
134.17	(2)
	2016
	17 percent
	
134.18	(3)
	2020
	20 percent
	
134.19	(4)
	2025
	25 percent.
	
134.20 	(b) An electric utility that owned a nuclear generating facility as of January 1, 2007, 
134.21 	must meet the requirements of this paragraph rather than paragraph (a). An electric utility 
134.22 	subject to this paragraph must generate or procure sufficient electricity generated by 
134.23 	an eligible energy technology to provide its retail customers in Minnesota or the retail 
134.24 	customer of a distribution utility to which the electric utility provides wholesale electric 
134.25 	service so that at least the following percentages of the electric utility's total retail electric 
134.26 	sales to retail customers in Minnesota are generated by eligible energy technologies by the 
134.27 	end of the year indicated:

134.28	(1)
	2010
	15 percent
	
134.29	(2)
	2012
	18 percent
	
134.30	(3)
	2016
	25 percent
	
134.31	(4)
	2020
	30 percent.
	
134.32 	Of the 30 percent in 2020, at least 25 percent must be generated by solar energy 
134.33 	or wind energy conversion systems and the remaining five percent by other eligible 
134.34 	energy technology. Of the 25 percent that must be generated by wind or solar, no more 
134.35 	than one percent may be solar generated and the remaining 24 percent or greater must 
134.36 	be wind generated.
135.1 		Subd. 2b.Modification or delay of standard. (a) The commission shall modify or 
135.2 	delay the implementation of a standard obligation, in whole or in part, if the commission 
135.3 	determines it is in the public interest to do so. The commission, when requested to modify 
135.4 	or delay implementation of a standard, must consider:
135.5 	(1) the impact of implementing the standard on its customers' utility costs, including 
135.6 	the economic and competitive pressure on the utility's customers;
135.7 	(2) the effects of implementing the standard on the reliability of the electric system;
135.8 	(3) technical advances or technical concerns;
135.9 	(4) delays in acquiring sites or routes due to rejection or delays of necessary siting or 
135.10 	other permitting approvals;
135.11 	(5) delays, cancellations, or nondelivery of necessary equipment for construction or 
135.12 	commercial operation of an eligible energy technology facility;
135.13 	(6) transmission constraints preventing delivery of service; and
135.14 	(7) other statutory obligations imposed on the commission or a utility.
135.15 	The commission may modify or delay implementation of a standard obligation 
135.16 	under clauses (1) to (3) only if it finds implementation would cause significant rate impact, 
135.17 	requires significant measures to address reliability, or raises significant technical issues. 
135.18 	The commission may modify or delay implementation of a standard obligation under 
135.19 	clauses (4) to (6) only if it finds that the circumstances described in those clauses were due 
135.20 	to circumstances beyond an electric utility's control and make compliance not feasible.
135.21 	(b) When considering whether to delay or modify implementation of a standard 
135.22 	obligation, the commission must give due consideration to a preference for electric 
135.23 	generation through use of eligible energy technology and to the achievement of the 
135.24 	standards set by this section.
135.25 	(c) An electric utility requesting a modification or delay in the implementation of a 
135.26 	standard must file a plan to comply with its standard obligation in the same proceeding 
135.27 	that it is requesting the delay.
135.28 	(d) If a utility reports under subdivision 2e that its retail rates have increased by two 
135.29 	percent or more over the previous year as a result of activities necessary to comply with 
135.30 	this section, the commission shall delay by three years the required achievement of the 
135.31 	utility's next scheduled standard under subdivision 2a.
135.32 		Subd. 2c.Use of integrated resource planning process. The commission may 
135.33 	exercise its authority under subdivision 2b to modify or delay implementation of a standard 
135.34 	obligation as part of an integrated resource planning proceeding under section 216B.2422. 
135.35 	The commission's authority must be exercised according to subdivision 2b. The order to 
135.36 	delay or modify shall not be considered advisory with respect to any electric utility. This 
136.1 	subdivision is in addition to and does not limit the commission's authority to modify or 
136.2 	delay implementation of a standard obligation in other proceedings before the commission.
136.3 		Subd. 2d.Commission order.  The commission shall issue necessary orders detailing 
136.4 	the criteria and standards by which it will measure an electric utility's efforts to meet the 
136.5 	renewable energy objectives of subdivision 2 to determine whether the utility is making 
136.6 	the required good faith effort. In this order, the commission shall include criteria and 
136.7 	standards that protect against undesirable impacts on the reliability of the utility's system 
136.8 	and economic impacts on the utility's ratepayers and that consider technical feasibility.
136.9 		Subd. 2e.Rate impact of standard compliance; report. Each electric utility must 
136.10 	submit to the commission and the legislative committees with primary jurisdiction over 
136.11 	energy policy a report containing an estimation of the rate impact of activities of the 
136.12 	electric utility necessary to comply with this section. In consultation with the Department 
136.13 	of Commerce, the commission shall determine a uniform reporting system to ensure that 
136.14 	individual utility reports are consistent and comparable, and shall, by order, require each 
136.15 	electric utility subject to this section to use that reporting system. The rate impact estimate 
136.16 	must be for wholesale rates and, if the electric utility makes retail sales, the estimate 
136.17 	shall also be for the impact on the electric utility's retail rates. Those activities include, 
136.18 	without limitation, energy purchases, generation facility acquisition and construction, 
136.19 	and transmission improvements. An initial report must be submitted within 150 days of 
136.20 	May 28, 2011. After the initial report, A report under this subdivision must be updated 
136.21 	and submitted as part of each integrated resource plan or plan modification filed by the 
136.22 	electric utility under section 216B.2422. A utility may file more frequent reports under 
136.23 	this subdivision. The reporting obligation of an electric utility under this subdivision 
136.24 	expires December 31, 2025, for an electric utility subject to subdivision 2a, paragraph (a), 
136.25 	and December 31, 2020, for an electric utility subject to subdivision 2a, paragraph (b).
136.26 		Subd. 2f.Solar energy standard. (a) In addition to the requirements of subdivisions 
136.27 	2a and 2b, each public utility shall generate or procure sufficient electricity generated 
136.28 	by solar energy to serve its retail electricity customers in Minnesota so that by the end 
136.29 	of 2020, at least 1.5 percent of the utility's total retail electric sales to retail customers in 
136.30 	Minnesota is generated by solar energy. At least ten percent of the 1.5 percent goal must 
136.31 	be met by solar energy generated by or procured from solar photovoltaic devices with a 
136.32 	nameplate capacity of 20 kilowatts or less.
136.33 	(b) The solar energy standard established in this subdivision is subject to all the 
136.34 	provisions of this section governing a utility's standard obligation under subdivision 2a.
136.35 	(c) It is an energy goal of the state of Minnesota that, by 2030, ten percent of the 
136.36 	retail electric sales in Minnesota be generated by solar energy.
137.1 	(d) For the purposes of calculating the total retail electric sales of a public utility 
137.2 	under this subdivision, there shall be excluded retail electric sales to customers that are:
137.3 	(1) an iron mining extraction and processing facility, including a scram mining 
137.4 	facility as defined in Minnesota Rules, part 6130.0100, subpart 16; or
137.5 	(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board 
137.6 	manufacturer.
137.7 	Those customers may not have included in the rates charged to them by the public 
137.8 	utility any costs of satisfying the solar standard specified by this subdivision.
137.9 	(e) (c) A public utility may not use energy used to satisfy the solar energy standard 
137.10 	under this subdivision to satisfy its standard obligation under subdivision 2a. A public 
137.11 	utility may not use energy used to satisfy the standard obligation under subdivision 2a to 
137.12 	satisfy the solar standard under this subdivision.
137.13 	(f) (d) Notwithstanding any law to the contrary, a solar renewable energy credit 
137.14 	associated with a solar photovoltaic device installed and generating electricity in 
137.15 	Minnesota after August 1, 2013, but before 2020 may be used to meet the solar energy 
137.16 	standard established under this subdivision.
137.17 	(g) (e) Beginning July 1, 2014, and each July 1 through 2020, each public utility 
137.18 	shall file a report with the commission reporting its progress in achieving the solar energy 
137.19 	standard established under this subdivision.
137.20 	(f) The requirement established in paragraph (a) may be met through the use of solar 
137.21 	energy or any other more affordable eligible energy technology.
137.22 		Subd. 3.Utility plans filed with commission. (a) Each electric utility shall 
137.23 	report on its plans, activities, and progress with regard to the objectives and standards 
137.24 	of this section in its filings under section 216B.2422 or in a separate report submitted 
137.25 	to the commission every two years, whichever is more frequent, demonstrating to the 
137.26 	commission the utility's effort to comply with this section. In its resource plan or a 
137.27 	separate report, each electric utility shall provide a description of:
137.28 	(1) the status of the utility's renewable energy mix relative to the objective and 
137.29 	standards;
137.30 	(2) efforts taken to meet the objective and standards;
137.31 	(3) any obstacles encountered or anticipated in meeting the objective or standards; and
137.32 	(4) potential solutions to the obstacles.
137.33 	(b) The commissioner shall compile the information provided to the commission 
137.34 	under paragraph (a), and report to the chairs of the house of representatives and senate 
137.35 	committees with jurisdiction over energy and environment policy issues as to the progress 
137.36 	of utilities in the state, including the progress of each individual electric utility, in increasing 
138.1 	the amount of renewable energy provided to retail customers, with any recommendations 
138.2 	for regulatory or legislative action, by January 15 of each odd-numbered year.
138.3 		Subd. 4.Renewable energy credits. (a) To facilitate compliance with this section, 
138.4 	the commission, by rule or order, shall establish by January 1, 2008, a program for tradable 
138.5 	renewable energy credits for electricity generated by an eligible energy technology. The 
138.6 	credits must represent energy produced by an eligible energy technology, as defined in 
138.7 	subdivision 1. Each kilowatt-hour of renewable energy credits must be treated the same as 
138.8 	a kilowatt-hour of eligible energy technology generated or procured by an electric utility if 
138.9 	it is produced by an eligible energy technology. The program must permit a credit to be 
138.10 	used only once. The program must treat all eligible energy technology technologies equally 
138.11 	and shall not give more or less credit to energy based on the state where the energy was is 
138.12 	generated or the technology with which the energy was is generated. The commission 
138.13 	must determine the period in which the credits may be used for purposes of the program.
138.14 	(b) In lieu of generating or procuring energy directly to satisfy the eligible advanced 
138.15 	energy technology objective or standard of this section, an electric utility may utilize 
138.16 	renewable energy credits allowed under the program to satisfy the objective or standard.
138.17 	(c) The commission shall facilitate the trading of renewable energy credits between 
138.18 	states.
138.19 	(d) The commission shall require all electric utilities to participate in a 
138.20 	commission-approved credit-tracking system or systems. Once a credit-tracking system is 
138.21 	in operation, the commission shall issue an order establishing protocols for trading credits.
138.22 	(e) An electric utility subject to subdivision 2a, paragraph (b), may not sell renewable 
138.23 	energy credits to an electric utility subject to subdivision 2a, paragraph (a), until 2021.
138.24 		Subd. 5.Technology based on fuel combustion. (a) Electricity produced by fuel 
138.25 	combustion through fuel blending or co-firing under paragraph (b) may only count toward 
138.26 	a utility's objectives or standards if the generation facility:
138.27 	(1) was constructed in compliance with new source performance standards 
138.28 	promulgated under the federal Clean Air Act, United States Code, title 42, section 7401 et 
138.29 	seq., for a generation facility of that type; or
138.30 	(2) employs the maximum achievable or best available control technology available 
138.31 	for a generation facility of that type.
138.32 	(b) An eligible energy technology may blend or co-fire a fuel listed in subdivision 1, 
138.33 	paragraph (a), clause (5), with other fuels in the generation facility, but only the percentage 
138.34 	of electricity that is attributable to a fuel listed in that clause can be counted toward an 
138.35 	electric utility's renewable energy objectives.
139.1 		Subd. 7.Compliance. The commission must regularly investigate whether an 
139.2 	electric utility is in compliance with its good faith objective under subdivision 2 and 
139.3 	standard obligation under subdivision 2a. If the commission finds noncompliance, it may 
139.4 	order the electric utility to construct facilities, purchase energy generated by eligible 
139.5 	energy technology, purchase renewable energy credits, or engage in other activities 
139.6 	to achieve compliance. If an electric utility fails to comply with an order under this 
139.7 	subdivision, the commission may impose a financial penalty on the electric utility in an 
139.8 	amount not to exceed the estimated cost of the electric utility to achieve compliance. The 
139.9 	penalty may not exceed the lesser of the cost of constructing facilities or purchasing 
139.10 	credits. The commission must deposit financial penalties imposed under this subdivision 
139.11 	in the energy and conservation account established in the special revenue fund under 
139.12 	section 216B.241, subdivision 2a. This subdivision is in addition to and does not limit any 
139.13 	other authority of the commission to enforce this section.
139.14 		Subd. 8.Relation to other law. This section does not limit the authority of the 
139.15 	commission under any other law, including, without limitation, sections 216B.2422 and 
139.16 	216B.243.
139.17 		Subd. 9.Local benefits. The commission shall take all reasonable actions within 
139.18 	its statutory authority to ensure this section is implemented to maximize benefits to 
139.19 	Minnesota citizens, balancing factors such as local ownership of or participation in 
139.20 	energy production, development and ownership of eligible energy technology facilities by 
139.21 	independent power producers, Minnesota utility ownership of eligible energy technology 
139.22 	facilities, the costs of energy generation to satisfy the renewable advanced energy 
139.23 	standard, and the reliability of electric service to Minnesotans.
139.24 		Subd. 10.Utility acquisition of resources. A competitive resource acquisition 
139.25 	process established by the commission prior to June 1, 2007, shall not apply to a utility 
139.26 	for the construction, ownership, and operation of generation facilities used to satisfy the 
139.27 	requirements of this section unless, upon a finding that it is in the public interest, the 
139.28 	commission issues an order on or after June 1, 2007, that requires compliance by a utility 
139.29 	with a competitive resource acquisition process. A utility that owns a nuclear generation 
139.30 	facility and intends to construct, own, or operate facilities under this section shall file with 
139.31 	the commission on or before March 1, 2008, a renewable energy plan setting forth the 
139.32 	manner in which the utility proposes to meet the requirements of this section, including 
139.33 	a proposed schedule for purchasing renewable energy from C-BED and non-C-BED 
139.34 	projects. The utility shall update the plan as necessary in its filing under section 
139.35 	216B.2422. The commission shall approve the plan unless it determines, after public 
139.36 	hearing and comment, that the plan is not in the public interest. As part of its determination 
140.1 	of public interest, the commission shall consider the plan's allocation of projects among 
140.2 	C-BED, non-C-BED, and utility-owned projects, balancing the state's interest in:
140.3 	(1) promoting the policy of economic development in rural areas through the 
140.4 	development of renewable energy projects, as expressed in subdivision 9;
140.5 	(2) maintaining the reliability of the state's electric power grid; and
140.6 	(3) minimizing cost impacts on ratepayers.

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

140.8 	Sec. 7. Minnesota Statutes 2014, section 216B.243, subdivision 8, is amended to read:
140.9 		Subd. 8.Exemptions. (a) This section does not apply to:
140.10 	(1) cogeneration or small power production facilities as defined in the Federal Power 
140.11 	Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and 
140.12 	paragraph (18), subparagraph (A), and having a combined capacity at a single site of less 
140.13 	than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or 
140.14 	any case where the commission has determined after being advised by the attorney general 
140.15 	that its application has been preempted by federal law;
140.16 	(2) a high-voltage transmission line proposed primarily to distribute electricity to 
140.17 	serve the demand of a single customer at a single location, unless the applicant opts to 
140.18 	request that the commission determine need under this section or section 216B.2425;
140.19 	(3) the upgrade to a higher voltage of an existing transmission line that serves the 
140.20 	demand of a single customer that primarily uses existing rights-of-way, unless the applicant 
140.21 	opts to request that the commission determine need under this section or section 216B.2425;
140.22 	(4) a high-voltage transmission line of one mile or less required to connect a new or 
140.23 	upgraded substation to an existing, new, or upgraded high-voltage transmission line;
140.24 	(5) conversion of the fuel source of an existing electric generating plant to using 
140.25 	natural gas;
140.26 	(6) the modification of an existing electric generating plant to increase efficiency, 
140.27 	as long as the capacity of the plant is not increased more than ten percent or more than 
140.28 	100 megawatts, whichever is greater; or
140.29 	(7) a wind energy conversion system or solar electric generation facility if the system 
140.30 	or facility is owned and operated by an independent power producer and the electric output 
140.31 	of the system or facility is not sold to an entity that provides retail service in Minnesota 
140.32 	or wholesale electric service to another entity in Minnesota other than an entity that is a 
140.33 	federally recognized regional transmission organization or independent system operator; or
141.1 	(8) a large wind energy conversion system, as defined in section 216F.01, subdivision 
141.2 	2, or a solar energy generating large energy facility, as defined in section 216B.2421, 
141.3 	subdivision 2, engaging in a repowering project that:
141.4 	(i) will not result in the facility exceeding the nameplate capacity under its most 
141.5 	recent interconnection agreement; or
141.6 	(ii) will result in the facility exceeding the nameplate capacity under its most recent 
141.7 	interconnection agreement, provided that the Midcontinent Independent System Operator 
141.8 	has provided a signed generator interconnection agreement that reflects the expected 
141.9 	net power increase.
141.10 	(b) For the purpose of this subdivision, "repowering project" means:
141.11 	(1) modifying a large wind energy conversion system or a solar energy generating 
141.12 	large energy facility to increase its efficiency without increasing its nameplate capacity;
141.13 	(2) replacing turbines in a large wind energy conversion system without increasing 
141.14 	the nameplate capacity of the system; or
141.15 	(3) increasing the nameplate capacity of a large wind energy conversion system.

141.16 	Sec. 8. [216C.417] PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" 
141.17 	SOLAR ENERGY PRODUCTION INCENTIVES.
141.18 		Subdivision 1.General provisions. Payment of a "Made in Minnesota" solar energy 
141.19 	production incentive to an owner whose application was approved by the commissioner 
141.20 	of commerce under Minnesota Statutes 2014, section 216C.415, prior to the effective 
141.21 	date of this act shall be administered under the provisions of Minnesota Statutes 2014, 
141.22 	sections 216C.411, 216C.413, 216C.414, subdivisions 1 to 3 and 5 to 6, and 216C.415. 
141.23 	No incentive payments may be made under this section to an owner whose application 
141.24 	was approved by the commissioner after the effective date of this act.
141.25 		Subd. 2.Appropriation. (a) Unspent and unobligated money remaining in the 
141.26 	account established under Minnesota Statutes 2014, section 216C.412, as of July 1, 2015, 
141.27 	must be transferred to the energy fund account established under section 116C.779, 
141.28 	subdivision 1.
141.29 	(b) There is annually appropriated from the energy fund account established in 
141.30 	section 116C.779 to the commissioner of commerce money sufficient to make the 
141.31 	incentive payments required under Minnesota Statutes 2014, section 216C.415, and to 
141.32 	administer that section.
141.33 		Subd. 3.Eligibility window; payment duration. (a) Payments may be made 
141.34 	under this subdivision only for solar photovoltaic module installations that meet the 
142.1 	requirements of subdivision 1 and that first begin generating electricity between January 1, 
142.2 	2014, and December 31, 2015.
142.3 	(b) The payment eligibility window of the incentive begins and runs consecutively 
142.4 	from the date the solar photovoltaic modules first begins generating electricity.
142.5 	(c) An owner of solar photovoltaic modules may receive payments under this 
142.6 	section for a particular module for a period of ten years, provided that sufficient funds are 
142.7 	available in the account.
142.8 	(d) No payment may be made under this section for electricity generated after 
142.9 	December 31, 2025.

142.10 	Sec. 9. [216C.419] ENERGY FUND ACCOUNT SOLAR INCENTIVE 
142.11 	PAYMENT.
142.12 		Subdivision 1.Eligibility. A qualifying facility that is a solar energy system, as 
142.13 	defined in section 216C.06, subdivision 17, with a capacity no greater than ten kilowatts, 
142.14 	that first elects compensation under section 216B.164 after the effective date of this act is 
142.15 	eligible to receive an incentive payment under this section.
142.16 		Subd. 2.Amount. The per kilowatt-hour amount of the energy fund account 
142.17 	incentive payment shall be determined by the commissioner.
142.18 		Subd. 3.Incentive payment. (a) An incentive payment is equal to the 
142.19 	per kilowatt-hour amount calculated in subdivision 3 multiplied by the number of 
142.20 	kilowatt-hours purchased from the qualifying facility by the utility to which it is 
142.21 	interconnected.
142.22 	(b) An incentive payment may be made under this section to an owner of a particular 
142.23 	solar energy system or wind energy conversion system for a period of ten years.
142.24 	(c) A qualifying facility seeking an incentive payment under this section must file an 
142.25 	application with the commissioner, on a form determined by the commissioner, and must 
142.26 	satisfy any other requirements the commissioner deems are necessary. Payment of the 
142.27 	incentive may only be made upon certification by the commissioner of commerce that the 
142.28 	qualifying facility is eligible to receive payment under this section.
142.29 	(d) The commissioner shall develop administrative procedures governing the 
142.30 	application process and the awarding of incentive payments as necessary to implement 
142.31 	this section.

142.32 	Sec. 10. [216E.022] SETBACK FOR SOLAR ENERGY GENERATING 
142.33 	SYSTEMS.
143.1 	Solar panels that are part of a solar energy generating system that has been issued a 
143.2 	site permit under this chapter must be set back at least 400 feet from any dwelling unless:
143.3 	(1) a local ordinance or regulation requires a greater setback; or
143.4 	(2) the property owner of the adjacent property and the owner of the solar energy 
143.5 	generating system have reached a mutual agreement in writing allowing for a smaller 
143.6 	setback, provided that the agreement is not less restrictive than allowed under any 
143.7 	applicable ordinance or regulation unless a valid variance to the setback requirement 
143.8 	imposed by the ordinance or regulation has been granted.

143.9 	EFFECTIVE DATE. This section is effective the day following final enactment, 
143.10 	and applies to solar energy generating systems for which site permit applications under 
143.11 	this chapter have been filed after January 1, 2015.

143.12 	Sec. 11. [216E.023] SURETY BONDS; LARGE SOLAR ENERGY 
143.13 	GENERATING FACILITIES.
143.14 	(a) A large energy facility, as defined in section 216B.2421, that is powered by a 
143.15 	solar energy generating system must maintain a current, valid corporate surety bond issued 
143.16 	by a surety company admitted to do business in Minnesota in an amount sufficient to pay 
143.17 	the entire cost of (1) disassembling and removing the solar energy generating system, and 
143.18 	(2) land reclamation, in the event the large energy facility discontinues operations.
143.19 	(b) The commission may not approve an application for a certificate of need under 
143.20 	section 216B.243 or a site permit under this chapter unless the applicant demonstrates it 
143.21 	meets the requirements of paragraph (a).

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

143.23 	Sec. 12. Minnesota Statutes 2014, section 216E.03, subdivision 5, is amended to read:
143.24 		Subd. 5.Environmental review. (a) The commissioner of the Department of 
143.25 	Commerce shall prepare for the commission an environmental impact statement on each 
143.26 	proposed large electric generating plant or high-voltage transmission line for which a 
143.27 	complete application has been submitted. The commissioner shall not consider whether 
143.28 	or not the project is needed. No other state environmental review documents shall be 
143.29 	required. The commissioner shall study and evaluate any site or route proposed by an 
143.30 	applicant and any other site or route the commission deems necessary that was proposed in 
143.31 	a manner consistent with rules concerning the form, content, and timeliness of proposals 
143.32 	for alternate sites or routes.
144.1 	(b) If the proposed large electric power generating plant is to be constructed on 
144.2 	agricultural land, the environmental impact statement must include an analysis of the 
144.3 	impact of construction on any agricultural drainage system under the surface of the 
144.4 	construction site, including the impact on other agricultural land that is part of the same 
144.5 	drainage system.
144.6 	(c) For the purpose of this subdivision, "agricultural drainage system" means a 
144.7 	publicly or privately owned drainage system that is installed or modified to improve the 
144.8 	productivity of agricultural land. Agricultural drainage system includes all tile, pipe, or 
144.9 	tubing of any material beneath the surface, and any associated inlets and outlets.
144.10 	(d) If the proposed large electric generating plant is a solar energy generating 
144.11 	system, the environmental impact statement must include the results of an analysis of 
144.12 	reflected solar irradiance from the solar panels and its impact at specific observation 
144.13 	points, including but not limited to nearby airports, air traffic, highways, and residences. 
144.14 	The analysis must measure the incidence and duration of solar glare at these observation 
144.15 	points during various seasons of the year and times of day, and discuss how such impacts 
144.16 	can be mitigated by relocating solar panels or changing the angles at which they are set.

144.17 	Sec. 13. Minnesota Statutes 2014, section 216E.03, subdivision 7, is amended to read:
144.18 		Subd. 7.Considerations in designating sites and routes. (a) The commission's 
144.19 	site and route permit determinations must be guided by the state's goals to conserve 
144.20 	resources, minimize environmental impacts, minimize human settlement and other land 
144.21 	use conflicts, and ensure the state's electric energy security through efficient, cost-effective 
144.22 	power supply and electric transmission infrastructure. 
144.23 	(b) To facilitate the study, research, evaluation, and designation of sites and routes, 
144.24 	the commission shall be guided by, but not limited to, the following considerations:
144.25 	(1) evaluation of research and investigations relating to the effects on land, water 
144.26 	and air resources of large electric power generating plants and high-voltage transmission 
144.27 	lines and the effects of water and air discharges and electric and magnetic fields resulting 
144.28 	from such facilities on public health and welfare, vegetation, animals, materials and 
144.29 	aesthetic values, including baseline studies, predictive modeling, and evaluation of new or 
144.30 	improved methods for minimizing adverse impacts of water and air discharges and other 
144.31 	matters pertaining to the effects of power plants on the water and air environment;
144.32 	(2) environmental evaluation of sites and routes proposed for future development and 
144.33 	expansion and their relationship to the land, water, air and human resources of the state;
145.1 	(3) evaluation of the effects of new electric power generation and transmission 
145.2 	technologies and systems related to power plants designed to minimize adverse 
145.3 	environmental effects;
145.4 	(4) evaluation of the potential for beneficial uses of waste energy from proposed 
145.5 	large electric power generating plants;
145.6 	(5) analysis of the direct and indirect economic impact of proposed sites and routes 
145.7 	including, but not limited to, productive agricultural land lost or impaired;
145.8 	(6) evaluation of adverse direct and indirect environmental effects that cannot be 
145.9 	avoided should the proposed site and route be accepted;
145.10 	(7) evaluation of alternatives to the applicant's proposed site or route proposed 
145.11 	pursuant to subdivisions 1 and 2;
145.12 	(8) evaluation of potential routes that would use or parallel existing railroad and 
145.13 	highway rights-of-way;
145.14 	(9) evaluation of governmental survey lines and other natural division lines of 
145.15 	agricultural land so as to minimize interference with agricultural operations;
145.16 	(10) evaluation of the future needs for additional high-voltage transmission lines 
145.17 	in the same general area as any proposed route, and the advisability of ordering the 
145.18 	construction of structures capable of expansion in transmission capacity through multiple 
145.19 	circuiting or design modifications;
145.20 	(11) evaluation of irreversible and irretrievable commitments of resources should the 
145.21 	proposed site or route be approved; and
145.22 	(12) when appropriate, consideration evaluation of problems raised by other state 
145.23 	and federal agencies and local entities.; and
145.24 	(13) evaluation of the impact on local land use, including the extent to which the 
145.25 	proposed site conflicts with county or local comprehensive plans, or official controls 
145.26 	governing future development.
145.27 	(c) If the commission's rules are substantially similar to existing regulations of a 
145.28 	federal agency to which the utility in the state is subject, the federal regulations must 
145.29 	be applied by the commission.
145.30 	(d) No site or route shall be designated which violates state agency rules.
145.31 	(e) The commission must make specific findings that it has considered locating a 
145.32 	route for a high-voltage transmission line on an existing high-voltage transmission route 
145.33 	and the use of parallel existing highway right-of-way and, to the extent those are not used 
145.34 	for the route, the commission must state the reasons.

145.35 	Sec. 14. Minnesota Statutes 2014, section 216E.04, subdivision 5, is amended to read:
146.1 		Subd. 5.Environmental review. (a) For the projects identified in subdivision 2 
146.2 	and following these procedures, the commissioner of the Department of Commerce shall 
146.3 	prepare for the commission an environmental assessment. The environmental assessment 
146.4 	shall contain information on the human and environmental impacts of the proposed project 
146.5 	and other sites or routes identified by the commission and shall address mitigating measures 
146.6 	for all of the sites or routes considered. If the proposed project is a large electric power 
146.7 	generating plant to be constructed on agricultural land, the environmental assessment must 
146.8 	include an analysis of the construction's impact on any agricultural drainage system under 
146.9 	the surface of the construction site, including the impact on other agricultural land that is 
146.10 	part of the same drainage system. The environmental assessment shall be the only state 
146.11 	environmental review document required to be prepared on the project.
146.12 	(b) For the purpose of this subdivision, "agricultural drainage system" means a 
146.13 	publicly or privately owned drainage system that is installed or modified to improve the 
146.14 	productivity of agricultural land. Agricultural drainage system includes all tile, pipe, or 
146.15 	tubing of any material beneath the surface, and any associated inlets and outlets.
146.16 	(c) If the proposed large electric generating plant is a solar energy generating system, 
146.17 	the environmental assessment must include the results of an analysis of reflected solar 
146.18 	irradiance from the solar panels and its impact at specific observation points, including 
146.19 	but not limited to nearby airports, air traffic, highways, and residences. The analysis 
146.20 	must measure the incidence and duration of solar glare at these observation points during 
146.21 	various seasons of the year and times of day, and discuss how such impacts can be 
146.22 	mitigated by relocating solar panels or changing the angles at which they are set.

146.23 	Sec. 15. [216E.19] REQUIREMENT FOR LOCAL APPROVAL.
146.24 	Notwithstanding the provisions of this chapter, the commission may not issue a 
146.25 	site permit for a solar energy generating system until all required local permits have 
146.26 	been granted and a resolution approving construction of the project is adopted by the 
146.27 	local governing body in which the proposed project site is located, provided that the 
146.28 	local governing body:
146.29 	(1) has intervened as a formal party to the public hearing conducted under section 
146.30 	216E.03, subdivision 6, or 216E.04, subdivision 6; and
146.31 	(2) has participated fully in the public hearing and has made its concerns regarding 
146.32 	the project part of the record established at the public hearing.

146.33 	EFFECTIVE DATE. This section is effective the day following final enactment, 
146.34 	and applies to solar energy generating systems for which site permit applications under 
146.35 	this chapter have been filed after January 1, 2015.

147.1 	Sec. 16. Laws 2008, chapter 296, article 1, section 25, the effective date, as amended 
147.2 	by Laws 2010, chapter 333, article 1, section 33, and Laws 2012, chapter 244, article 1, 
147.3 	section 76, is amended to read:

147.4 	EFFECTIVE DATE. This section is effective June 1, 2017 2016.

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

147.6 	Sec. 17. PROGRAM ADMINISTRATION; "MADE IN MINNESOTA" SOLAR 
147.7 	THERMAL REBATES.
 147.8 	(a) No rebate may be paid under Minnesota Statutes 2014, section 216C.416, to an 
147.9 	owner of a solar thermal system whose application was approved by the commissioner 
147.10 	after the effective date of this act.
147.11 	(b) Unspent money remaining in the account established under Minnesota Statutes 
147.12 	2014, section 216C.416, as of July 2, 2015, must be transferred to the energy fund account 
147.13 	established under section 116C.779, subdivision 1.

147.14 	Sec. 18.  REPEALER.
 147.15 	(a) Minnesota Statutes 2014, sections 216B.8109; 216B.811; 216B.812; 216B.813; 
147.16 	and 216B.815, are repealed.
147.17 	(b) Minnesota Statutes 2014, section 216B.164, subdivision 10, is repealed.
147.18 	(c) Minnesota Statutes 2014, section 116C.779, subdivision 3, is repealed.
147.19 	(d) Minnesota Statutes 2014, sections 174.187; 216C.411; 216C.412; 216C.413; 
147.20 	216C.414; 216C.415; and 216C.416, are repealed.
147.21 	(e) Laws 2013, chapter 85, article 6, section 11, is repealed.
147.22 	(f) Minnesota Statutes 2014, sections 216B.1612; and 216C.39, are repealed.

147.23 	ARTICLE 10
147.24 	GREENHOUSE GAS EMISSIONS

147.25 	Section 1. Minnesota Statutes 2014, section 216H.01, is amended by adding a 
147.26 	subdivision to read:
147.27 		Subd. 1a.Cogeneration facility or combined heat and power facility.
 147.28 	"Cogeneration facility" or "combined heat and power facility" means a facility that: (1) 
147.29 	has the meaning given in United States Code, title 16, section 796, clause (18), paragraph 
147.30 	(A); and (2) meets the applicable operating and efficiency standards contained in Code of 
147.31 	Federal Regulations, title 18, part 292.205.

148.1 	Sec. 2. Minnesota Statutes 2014, section 216H.02, subdivision 1, is amended to read:
148.2 		Subdivision 1.Greenhouse gas emissions-reduction goal. It is the goal of the state 
148.3 	to reduce statewide greenhouse gas emissions across all sectors producing those emissions 
148.4 	to a level at least 15 percent below 2005 levels by 2015, to a level at least 30 percent 
148.5 	below 2005 levels by 2025, and to a level at least 80 percent below 2005 levels by 2050. 
148.6 	The levels shall be reviewed based on the climate change action plan study to the level 
148.7 	proposed in the plan approved under section 216H.077.

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

148.9 	Sec. 3. Minnesota Statutes 2014, section 216H.03, subdivision 1, is amended to read:
148.10 		Subdivision 1.Definition; new large energy facility. For the purpose of this 
148.11 	section, "new large energy facility" means a large energy facility, as defined in section 
148.12 	216B.2421, subdivision 2, clause (1), that is not in operation as of January 1, 2007, 
148.13 	but does not include a facility that (1) uses natural gas as a primary fuel, (2) is a 
148.14 	cogeneration facility or combined heat and power facility, or is designed to provide 
148.15 	peaking, intermediate, emergency backup, or contingency services, (3) uses a simple cycle 
148.16 	or combined cycle turbine technology, and (4) is capable of achieving full load operations 
148.17 	within 45 minutes of startup for a simple cycle facility, or is capable of achieving 
148.18 	minimum load operations within 185 minutes of startup for a combined cycle facility.

148.19 	Sec. 4. Minnesota Statutes 2014, section 216H.03, subdivision 3, is amended to read:
148.20 		Subd. 3.Long-term increased emissions from power plants prohibited. Unless 
148.21 	preempted by federal law, until a comprehensive and enforceable state law or rule 
148.22 	pertaining to greenhouse gases that directly limits and substantially reduces, over time, 
148.23 	statewide power sector carbon dioxide emissions is enacted and in effect, and except as 
148.24 	allowed in subdivisions 4 to 7, on and after August 1, 2009, no person shall:
148.25 	(1) construct within the state a new large energy facility that would contribute to 
148.26 	statewide power sector carbon dioxide emissions;.
148.27 	(2) import or commit to import from outside the state power from a new large energy 
148.28 	facility that would contribute to statewide power sector carbon dioxide emissions; or
148.29 	(3) enter into a new long-term power purchase agreement that would increase 
148.30 	statewide power sector carbon dioxide emissions. For purposes of this section, a long-term 
148.31 	power purchase agreement means an agreement to purchase 50 megawatts of capacity 
148.32 	or more for a term exceeding five years.

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

149.1 	Sec. 5. Minnesota Statutes 2014, section 216H.03, subdivision 7, is amended to read:
149.2 		Subd. 7.Other exemptions. The prohibitions in subdivision 3 do not apply to:
149.3 	(1) a new large energy facility under consideration by the Public Utilities 
149.4 	Commission pursuant to proposals or applications filed with the Public Utilities 
149.5 	Commission before April 1, 2007, or to any power purchase agreement related to a facility 
149.6 	described in this clause. The exclusion of pending proposals and applications from the 
149.7 	prohibitions in subdivision 3 does not limit the applicability of any other law and is not an 
149.8 	expression of legislative intent regarding whether any pending proposal or application 
149.9 	should be approved or denied;
149.10 	(2) a contract not subject to commission approval that was entered into prior to 
149.11 	April 1, 2007, to purchase power from a new large energy facility that was approved by 
149.12 	a comparable authority in another state prior to that date, for which municipal or public 
149.13 	power district bonds have been issued, and on which construction has begun;
149.14 	(3) a new large energy facility or a power purchase agreement between a Minnesota 
149.15 	utility and a new large energy facility located outside within Minnesota that the Public 
149.16 	Utilities Commission has determined is essential to ensure the long-term reliability of 
149.17 	Minnesota's electric system, to allow electric service for increased industrial demand, 
149.18 	or to avoid placing a substantial financial burden on Minnesota ratepayers. An order 
149.19 	of the commission granting an exemption under this clause is stayed until the June 1 
149.20 	following the next regular or annual session of the legislature that begins after the date of 
149.21 	the commission's final order; or
149.22 	(4) a new large energy facility with a combined electric generating capacity of less 
149.23 	than 100 megawatts, which did not require a Minnesota certificate of need, which received 
149.24 	an air pollution control permit to construct from an adjoining state before January 1, 2008, 
149.25 	and on which construction began before July 1, 2008, or to any power purchase agreement 
149.26 	related to a facility described in this clause.

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

149.28 	Sec. 6. Minnesota Statutes 2014, section 216H.07, is amended to read:
149.29 	216H.07 EMISSIONS-REDUCTION ATTAINMENT; POLICY 
149.30 	DEVELOPMENT PROCESS.
149.31 		Subdivision 1.Definition.  For the purpose of this section, "reductions" means the 
149.32 	greenhouse gas emissions-reductions goals goal specified in section 216H.02, subdivision 
149.33 	1.
150.1 		Subd. 2.Purpose. This section is intended to create a nonexclusive, regular, 
150.2 	mandated process for the state to develop policies to attain the greenhouse gas reduction 
150.3 	goals goal specified in section 216H.02.
150.4 		Subd. 3.Biennial report. (a) By January 15 of each odd-numbered year, the 
150.5 	commissioners of commerce and the Pollution Control Agency shall jointly report to the 
150.6 	chairs and ranking minority members of the legislative committees with primary policy 
150.7 	jurisdiction over energy and environmental issues the most recent and best available 
150.8 	evidence identifying the level of reductions already achieved and the level necessary to 
150.9 	achieve the prospects for achieving future reductions timetable in section 216H.02.
150.10 	(b) The report must be in easily understood nontechnical terms.
150.11 		Subd. 5.Reduction principles. Legislation proposed under subdivision 4 must be 
150.12 	based on the following principles:
150.13 	(1) the greenhouse gas emissions-reduction goals goal specified in section 216H.02, 
150.14 	subdivision 1, must be attained pursued;
150.15 	(2) the reductions must be attained on a schedule that keeps pace with the reduction 
150.16 	timetable required by section 216H.02, subdivision 1;
150.17 	(3) conservation, including ceasing some activities, doing some activities less, and 
150.18 	doing some activities more energy efficiently, is the first choice for reduction;
150.19 	(4) (3) public education is a key component;
150.20 	(5) (4) all levels of government should lead by example;
150.21 	(6) (5) strategies that may lead to economic dislocation should be phased in and 
150.22 	should be coupled with strategies that address the dislocation; and
150.23 	(7) (6) there must be coordination with other federal and regional greenhouse gas 
150.24 	emissions-reduction requirements so that the state benefits and is not penalized from its 
150.25 	reduction activities.

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

150.27 	Sec. 7. [216H.077] REQUIREMENT FOR LEGISLATIVE APPROVAL.
150.28 	The commissioner of the Pollution Control Agency may not submit a plan to the 
150.29 	federal Environmental Protection Agency to comply with the proposed rule for the federal 
150.30 	Clean Power Plan for Existing Power Plants, as published in the Federal Register on June 
150.31 	18, 2014, Docket No. EPA-HQ-OAR-2013-0602, or any final rule issued in that docket or 
150.32 	federal order pertaining thereto, unless the plan has been approved by state law.

150.33 	Sec. 8.  REPEALER.
 150.34 	Minnesota Statutes 2014, section 216H.02, subdivisions 2, 3, 4, 5, and 6, are repealed.

151.1 	ARTICLE 11
151.2 	MISCELLANEOUS ENERGY POLICY

151.3 	Section 1. Minnesota Statutes 2014, section 3.8851, subdivision 7, is amended to read:
151.4 		Subd. 7.Assessment; appropriation. (a) Upon request by the cochairs of the 
151.5 	commission, the commissioner of commerce shall assess the amount requested for the 
151.6 	operation of the commission, not to exceed $250,000 $150,000 in a fiscal year, from the 
151.7 	following sources:
151.8 	(1) 50 percent of the assessment must come from all public utilities, municipal 
151.9 	utilities, electric cooperative associations, generation and transmission cooperative electric 
151.10 	associations, and municipal power agencies providing electric or natural gas services 
151.11 	in Minnesota; and
151.12 	(2) 50 percent of the assessment must come from all bulk terminals located in this 
151.13 	state from which petroleum products and liquid petroleum gas are dispensed.
151.14 	(b) The commissioner of commerce shall apportion the assessment amount requested 
151.15 	among the entities in paragraph (a), clause (1), in proportion to their respective gross 
151.16 	operating revenues from energy sold within the state during the most recent calendar year.
151.17 	(c) The commissioner of commerce shall apportion the assessment amount requested 
151.18 	equally among the referenced entities in paragraph (a), clause (2).
151.19 	(d) The entities in paragraph (a), clause (1), must provide information to the 
151.20 	commissioner of commerce to allow for calculation of the assessment.
151.21 	(e) The assessments under this subdivision are in addition to assessments made 
151.22 	under section 216B.62. The amount assessed under this section must be deposited in 
151.23 	the Legislative Energy Commission account in the special revenue fund. Funds in the 
151.24 	Legislative Energy Commission account are appropriated to the director of the Legislative 
151.25 	Coordinating Commission for the purposes of this section, and are available until 
151.26 	expended. Utilities selling gas and electric service at retail must be assessed and billed 
151.27 	in accordance with the procedures provided in section 216B.62, to the extent that these 
151.28 	procedures do not conflict with this subdivision.
151.29 	(f) The commission shall provide a detailed report of its income and expenses in the 
151.30 	prior calendar year by January 1 of each year to the standing committees of the house of 
151.31 	representatives and the senate with jurisdiction over energy issues.

151.32 	Sec. 2. Minnesota Statutes 2014, section 12A.15, subdivision 1, is amended to read:
151.33 		Subdivision 1.State cost-share for federal assistance. State appropriations may be 
151.34 	used to pay 100 percent of the nonfederal share for state agencies and, local governments, 
152.1 	and utility cooperatives under section 12.221. An appropriation from the bond proceeds 
152.2 	fund may be used as cost-share for federal disaster assistance for publicly owned capital 
152.3 	improvement projects.

152.4 	Sec. 3. Minnesota Statutes 2014, section 216B.16, subdivision 6, is amended to read:
152.5 		Subd. 6.Factors considered, generally. The commission, in the exercise of its 
152.6 	powers under this chapter to determine just and reasonable rates for public utilities, shall 
152.7 	give due consideration to the public need for adequate, efficient, and reasonable service 
152.8 	and to the need of the public utility for revenue sufficient to enable it to meet the cost of 
152.9 	furnishing the service, including adequate provision for depreciation of its utility property 
152.10 	used and useful in rendering service to the public, and to earn a fair and reasonable return 
152.11 	upon the investment in such property. In determining the rate base upon which the utility 
152.12 	is to be allowed to earn a fair rate of return, the commission shall give due consideration to 
152.13 	evidence of the cost of the property when first devoted to public use, to prudent acquisition 
152.14 	cost to the public utility less appropriate depreciation on each, to construction work in 
152.15 	progress, to offsets in the nature of capital provided by sources other than the investors, 
152.16 	and to other expenses of a capital nature. For purposes of determining rate base, the 
152.17 	commission shall consider the original cost of utility property included in the base and 
152.18 	shall make no allowance for its estimated current replacement value. Upon petition by 
152.19 	a public utility, if the commission determines that an order it issued has the effect of 
152.20 	terminating the operation of a generating facility before the end of the facility's book life 
152.21 	in order to comply with a specific state or federal energy or environmental statute or 
152.22 	policy, the commission may allow the public utility to recover any positive net book value 
152.23 	of the facility as determined by the commission.

152.24 	Sec. 4. Minnesota Statutes 2014, section 216B.16, subdivision 7b, is amended to read:
152.25 		Subd. 7b.Transmission cost adjustment. (a) Notwithstanding any other provision 
152.26 	of this chapter, the commission may approve a tariff mechanism for the automatic annual 
152.27 	adjustment of charges for the Minnesota jurisdictional costs net of associated revenues of:
152.28 	(i) new transmission facilities that have been separately filed and reviewed and 
152.29 	approved by the commission under section 216B.243 or new transmission or distribution 
152.30 	facilities that are certified as a priority project or deemed to be a priority transmission 
152.31 	project under section 216B.2425;
152.32 	(ii) new transmission facilities approved by the regulatory commission of the state 
152.33 	in which the new transmission facilities are to be constructed, to the extent approval 
153.1 	is required by the laws of that state, and determined by the Midcontinent Independent 
153.2 	System Operator to benefit the utility or integrated transmission system; and
153.3 	(iii) charges incurred by a utility under a federally approved tariff that accrue 
153.4 	from other transmission owners' regionally planned transmission projects that have been 
153.5 	determined by the Midcontinent Independent System Operator to benefit the utility or 
153.6 	integrated transmission system.
153.7 	(b) Upon filing by a public utility or utilities providing transmission service, the 
153.8 	commission may approve, reject, or modify, after notice and comment, a tariff that:
153.9 	(1) allows the utility to recover on a timely basis the costs net of revenues of 
153.10 	facilities approved under section 216B.243 or certified or deemed to be certified under 
153.11 	section 216B.2425 or exempt from the requirements of section 216B.243;
153.12 	(2) allows the utility to recover charges incurred under a federally approved tariff that 
153.13 	accrue from other transmission owners' regionally planned transmission projects that have 
153.14 	been determined by the Midcontinent Independent System Operator to benefit the utility 
153.15 	or integrated transmission system. These charges must be reduced or offset by revenues 
153.16 	received by the utility and by amounts the utility charges to other regional transmission 
153.17 	owners, to the extent those revenues and charges have not been otherwise offset;
153.18 	(3) allows the utility to recover on a timely basis the costs net of revenues of facilities 
153.19 	approved by the regulatory commission of the state in which the new transmission 
153.20 	facilities are to be constructed and determined by the Midcontinent Independent System 
153.21 	Operator to benefit the utility or integrated transmission system;
153.22 	(4)  allows the utility to recover costs associated with investments in distribution 
153.23 	facilities to modernize the utility's grid that have been certified by the commission under 
153.24 	section 216B.2425;
153.25 	(5) allows a return on investment at the level approved in the utility's last general 
153.26 	rate case, unless a different return is found to be consistent with the public interest;
153.27 	(5) (6) provides a current return on construction work in progress, provided that 
153.28 	recovery from Minnesota retail customers for the allowance for funds used during 
153.29 	construction is not sought through any other mechanism;
153.30 	(6) (7) allows for recovery of other expenses if shown to promote a least-cost project 
153.31 	option or is otherwise in the public interest;
153.32 	(7) (8) allocates project costs appropriately between wholesale and retail customers;
153.33 	(8) (9) provides a mechanism for recovery above cost, if necessary to improve the 
153.34 	overall economics of the project or projects or is otherwise in the public interest; and
153.35 	(9) (10) terminates recovery once costs have been fully recovered or have otherwise 
153.36 	been reflected in the utility's general rates.
154.1 	(c) A public utility may file annual rate adjustments to be applied to customer bills 
154.2 	paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:
154.3 	(1) a description of and context for the facilities included for recovery;
154.4 	(2) a schedule for implementation of applicable projects;
154.5 	(3) the utility's costs for these projects;
154.6 	(4) a description of the utility's efforts to ensure the lowest costs to ratepayers for 
154.7 	the project; and
154.8 	(5) calculations to establish that the rate adjustment is consistent with the terms 
154.9 	of the tariff established in paragraph (b).
154.10 	(d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in 
154.11 	paragraph (b), the commission shall approve the annual rate adjustments provided that, 
154.12 	after notice and comment, the costs included for recovery through the tariff were or are 
154.13 	expected to be prudently incurred and achieve transmission system improvements at the 
154.14 	lowest feasible and prudent cost to ratepayers.

154.15 	Sec. 5. Minnesota Statutes 2014, section 216B.16, subdivision 8, is amended to read:
154.16 		Subd. 8.Advertising expense. (a) The commission shall disapprove the portion of 
154.17 	any rate which makes an allowance directly or indirectly for expenses incurred by a public 
154.18 	utility to provide a public advertisement which:
154.19 	(1) is designed to influence or has the effect of influencing public attitudes toward 
154.20 	legislation or proposed legislation, or toward a rule, proposed rule, authorization or 
154.21 	proposed authorization of the Public Utilities Commission or other agency of government 
154.22 	responsible for regulating a public utility;
154.23 	(2) is designed to justify or otherwise support or defend a rate, proposed rate, 
154.24 	practice or proposed practice of a public utility;
154.25 	(3) is designed primarily to promote consumption of the services of the utility, 
154.26 	except for the promotion of:
154.27 	(i) electric vehicles;
154.28 	(ii) electric water heaters that are electronically activated by a utility to operate when 
154.29 	low-priced electricity generated from a renewable source is available;
154.30 	(iii) ground or air source heat pumps that displace propane or fuel oil; or
154.31 	(iv) vehicles fueled with compressed natural gas;
154.32 	(4) is designed primarily to promote good will for the public utility or improve the 
154.33 	utility's public image; or
154.34 	(5) is designed to promote the use of nuclear power or to promote a nuclear waste 
154.35 	storage facility.
155.1 	(b) The commission may approve a rate which makes an allowance for expenses 
155.2 	incurred by a public utility to disseminate information which:
155.3 	(1) is designed to encourage conservation of energy supplies;
155.4 	(2) is designed to promote safety; or
155.5 	(3) is designed to inform and educate customers as to financial services made 
155.6 	available to them by the public utility.
155.7 	(c) The commission shall not withhold approval of a rate because it makes an 
155.8 	allowance for expenses incurred by the utility to disseminate information about corporate 
155.9 	affairs to its owners.
155.10 	(d) For the purposes of this subdivision:
155.11 	(1) "electric vehicle" has the meaning given in section 169.011, subdivision 26a; and
155.12 	(2) "renewable source" has the meaning given to "eligible energy technology" in 
155.13 	section 216B.1691, subdivision 1.

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

155.15 	Sec. 6. Minnesota Statutes 2014, section 216B.16, subdivision 12, is amended to read:
155.16 		Subd. 12.Exemption for small gas utility franchise. (a) A municipality may file 
155.17 	with the commission a resolution of its governing body requesting exemption from the 
155.18 	provisions of this section for a public utility that is under a franchise with the municipality 
155.19 	to supply natural, manufactured, or mixed gas and that serves 650 or fewer customers in 
155.20 	the municipality as long as the public utility serves no more than a total of 2,000 5,000 
155.21 	customers.
155.22 	(b) The commission shall grant an exemption from this section for that portion of 
155.23 	a public utility's business that is requested by each municipality it serves. Furthermore, 
155.24 	the commission shall also grant the public utility an exemption from this section for any 
155.25 	service provided outside of a municipality's border that is considered by the commission 
155.26 	to be incidental. The public utility shall file with the commission and the department 
155.27 	all initial and subsequent changes in rates, tariffs, and contracts for service outside the 
155.28 	municipality at least 30 days in advance of implementation.
155.29 	(c) However, the commission shall require the utility to adopt the commission's 
155.30 	policies and procedures governing disconnection during cold weather. The utility shall 
155.31 	annually submit a copy of its municipally approved rates to the commission.
155.32 	(d) In all cases covered by this subdivision in which an exemption for service outside 
155.33 	of a municipality is granted, the commission may initiate an investigation under section 
155.34 	216B.17, on its own motion or upon complaint from a customer.
156.1 	(e) If a municipality files with the commission a resolution of its governing body 
156.2 	rescinding the request for exemption, the commission shall regulate the public utility's 
156.3 	business in that municipality under this section.

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

156.5 	Sec. 7. Minnesota Statutes 2014, section 216B.16, subdivision 19, is amended to read:
156.6 		Subd. 19.Multiyear rate plan. (a) A public utility may propose, and the 
156.7 	commission may approve, approve as modified, or reject, a multiyear rate plan as provided 
156.8 	in this subdivision. The term "multiyear rate plan" refers to a plan establishing the rates 
156.9 	the utility may charge for each year of the specified period of years, which cannot exceed 
156.10 	threefive years, to be covered by the plan. 
156.11 	(b) A utility proposing a multiyear rate plan shall provide a general description of 
156.12 	the utility's major planned investments over the plan period. The commission may also 
156.13 	require the utility to provide a set of reasonable performance measures and incentives that 
156.14 	are quantifiable, verifiable, and consistent with state energy policies. The commission 
156.15 	may allow the utility to adjust recovery of its cost of capital or other costs in a reasonable 
156.16 	manner within the plan period.
156.17 	(c) The utility may propose:
156.18 	(1) recovery of the utility's forecasted rate base, based on a formula, a budget 
156.19 	forecast, or a fixed escalation rate, individually or in combination. The forecasted rate 
156.20 	base must include the utility's planned capital investments and investment-related costs, 
156.21 	including income tax impacts, depreciation and property taxes, as well as forecasted 
156.22 	capacity-related costs from purchased power agreements that are not recovered through 
156.23 	section 216B.16, subdivision 7;
156.24 	(2) recovery of operations and maintenance expenses, based on an electricity-related 
156.25 	price index or other formula;
156.26 	(3) tariffs that expand the products and services available to customers, including 
156.27 	but not limited to an affordability rate for low-income residential customers; and
156.28 	(4) procedures under which a utility may request that the commission make 
156.29 	adjustments to the rates approved under the multiyear plan, including, but not limited to, 
156.30 	changes in the cost of operating its nuclear facilities or other significant investments 
156.31 	not addressed in the plan.
156.32 	(d) A utility that has filed a petition with the commission to approve a multiyear 
156.33 	rate plan may request to be allowed to implement interim rates for the first and second 
156.34 	years of the multiyear plan. If the commission approves the request, interim rates shall be 
156.35 	implemented in the same manner as allowed under subdivision 3.
157.1 	(e) The commission may approve a multiyear rate plan only if it finds that the plan 
157.2 	establishes just and reasonable rates for the utility, applying the factors described in 
157.3 	subdivision 6. Consistent with subdivision 4, the burden of proof to demonstrate that the 
157.4 	multiyear rate plan is just and reasonable is on the public utility proposing the plan.
157.5 	(b) (f) Rates charged under the multiyear rate plan must be based only upon the 
157.6 	utility's reasonable and prudent costs of service over the term of the plan, as determined 
157.7 	by the commission, provided that the costs are not being recovered elsewhere in rates. 
157.8 	Rate adjustments authorized under subdivisions 6b and 7 may continue outside of a plan 
157.9 	authorized under this subdivision.
157.10 	(c) (g) The commission may, by order, establish terms, conditions, and procedures 
157.11 	for a multiyear rate plan necessary to implement this section and ensure that rates remain 
157.12 	just and reasonable during the course of the plan, including terms and procedures for rate 
157.13 	adjustment. At any time prior to conclusion of a multiyear rate plan, the commission, 
157.14 	upon its own motion or upon petition of any party, has the discretion to examine the 
157.15 	reasonableness of the utility's rates under the plan, and adjust rates as necessary.
157.16 	(d) (h) In reviewing a multiyear rate plan proposed in a general rate case under 
157.17 	this section, the commission may extend the time requirements for issuance of a final 
157.18 	determination prescribed in this section by an additional 90 days beyond its existing 
157.19 	authority under subdivision 2, paragraph (f).
157.20 	(e) (i) A utility may not file a multiyear rate plan that would establish rates under the 
157.21 	terms of the plan until after May 31, 2012.
157.22 	(j) The commission may initiate a proceeding to determine a set of performance 
157.23 	measures and incentives that may be incorporated by a utility in a multiyear rate plan.

157.24 	Sec. 8. [216B.1616] ELECTRIC VEHICLE REBATES.
157.25 		Subdivision 1.Definition. For the purposes of this section, "electric vehicle" has the 
157.26 	meaning given in section 169.011, subdivision 26a, paragraph (a).
157.27 		Subd. 2.Program. (a) The commissioner of commerce shall develop and 
157.28 	implement a program to provide rebates to electric vehicle owners who meet the eligibility 
157.29 	requirements of subdivision 3.
157.30 	(b) Applications for rebates under this section shall be filed with the commissioner 
157.31 	on a form developed by the commissioner. The commissioner shall develop administrative 
157.32 	procedures governing the application and rebate award process. Applications will be 
157.33 	reviewed and rebates awarded on a first-come, first-served basis.
157.34 		Subd. 3. Eligibility. The purchaser of an electric vehicle is eligible for a $2,500 
157.35 	rebate under this section if:
158.1 	(1) the electric vehicle:
158.2 	(i) has not been previously owned;
158.3 	(ii) has not been modified from the original manufacturer's specifications; and
158.4 	(iii) is purchased after the effective date of this act for use by the purchaser and 
158.5 	not for resale; and
158.6 	(2) the purchaser:
158.7 	(i) is a natural person who is a resident of Minnesota, as defined in section 290.01, 
158.8 	subdivision 7, paragraph (a), when the electric vehicle is purchased;
158.9 	(ii) has not received a rebate or tax credit for the purchase of the same electric 
158.10 	vehicle from another state;
158.11 	(iii) registers the electric vehicle in Minnesota; and
158.12 	(iv) is an electric service customer of the utility subject to section 116C.779.

158.13 	Sec. 9. [216B.1638] RECOVERY OF NATURAL GAS EXTENSION PROJECT 
158.14 	COSTS.
158.15 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in 
158.16 	this subdivision have the meanings given them.
158.17 	(b) "Contribution in aid of construction" means a monetary contribution, paid by 
158.18 	a developer or local unit of government to a utility providing natural gas service to a 
158.19 	community receiving that service as the result of a natural gas extension project, that 
158.20 	reduces or offsets the difference between the total revenue requirement of the project and 
158.21 	the revenue generated from the customers served by the project.
158.22 	(c) "Developer" means a developer of the project or a person that owns or will own 
158.23 	the property served by the project.
158.24 	(d) "Local unit of government" means a city, county, township, commission, district, 
158.25 	authority, or other political subdivision or instrumentality of this state.
158.26 	(e) "Natural gas extension project" or "project" means the construction of new 
158.27 	infrastructure or upgrades to existing natural gas facilities necessary to serve currently 
158.28 	unserved or inadequately served areas.
158.29 	(f) "Revenue deficiency" means the deficiency in funds that results when projected 
158.30 	revenues from customers receiving natural gas service as the result of a natural gas 
158.31 	extension project, plus any contributions in aid of construction paid by these customers, 
158.32 	fall short of the total revenue requirement of the natural gas extension project.
158.33 	(g) "Total revenue requirement" means the total cost of extending and maintaining 
158.34 	natural gas service to a currently unserved or inadequately served area.
159.1 	(h) "Transport customer" means a customer for whom a natural gas utility transports 
159.2 	gas the customer has purchased from another natural gas supplier.
159.3 	(i) "Unserved or inadequately served area" means an area in this state lacking 
159.4 	adequate natural gas pipeline infrastructure to meet the demand of existing or potential 
159.5 	end-use customers.
159.6 		Subd. 2.Filing. (a) A public utility may petition the commission outside of a 
159.7 	general rate case for a rider that shall include all of the utility's customers, including 
159.8 	transport customers, to recover the revenue deficiency from a natural gas extension project.
159.9 	(b) The petition shall include:
159.10 	(1) a description of the natural gas extension project, including the number and 
159.11 	location of new customers to be served and the distance over which natural gas will be 
159.12 	distributed to serve the unserved or inadequately served area;
159.13 	(2) the project's construction schedule;
159.14 	(3) the proposed project budget;
159.15 	(4) the amount of any contributions in aid of construction;
159.16 	(5) a description of efforts made by the public utility to offset the revenue deficiency 
159.17 	through contributions in aid to construction;
159.18 	(6) the amount of the revenue deficiency, and how recovery of the revenue deficiency 
159.19 	will be allocated among industrial, commercial, residential, and transport customers;
159.20 	(7) the proposed method to be used to recover the revenue deficiency from each 
159.21 	customer class, such as a flat fee, a volumetric charge, or another form of recovery;
159.22 	(8) the proposed termination date of the rider to recover the revenue deficiency; and
159.23 	(9) a description of benefits to the public utility's existing natural gas customers that 
159.24 	will accrue from the natural gas extension project.
159.25 		Subd. 3.Review; approval. (a) The commission shall allow opportunity for 
159.26 	comment on the petition.
159.27 	(b) The commission shall approve a public utility's petition for a rider to recover the 
159.28 	costs of a natural gas extension project if it determines that:
159.29 	(1) the project is designed to extend natural gas service to an unserved or 
159.30 	inadequately served area; and
159.31 	(2) project costs are reasonable and prudently incurred.
159.32 	(c) The commission must not approve a rider under this section that allows a utility 
159.33 	to recover more than 33 percent of the costs of a natural gas extension project.
159.34 	(d) The revenue deficiency from a natural gas extension project recoverable through 
159.35 	a rider under this section must include the currently authorized rate of return, incremental 
160.1 	income taxes, incremental property taxes, incremental depreciation expenses, and any 
160.2 	incremental operation and maintenance costs.
160.3 		Subd. 4.Commission authority; order. The commission may issue orders 
160.4 	necessary to implement and administer this section.
160.5 		Subd. 5.Implementation. Nothing in this section commits a public utility to 
160.6 	implement a project approved by the commission. The public utility seeking to provide 
160.7 	natural gas service shall notify the commission whether it intends to proceed with the 
160.8 	project as approved by the commission.
160.9 		Subd. 6.Evaluation and report. By January 15, 2017, and every three years 
160.10 	thereafter, the commission shall report to the chairs and ranking minority members of the 
160.11 	senate and house of representatives committees having jurisdiction over energy policy:
160.12 	(1) the number of public utilities and projects proposed and approved under this 
160.13 	section;
160.14 	(2) the total cost of each project;
160.15 	(3) rate impacts of the cost recovery mechanism; and
160.16 	(4) an assessment of the effectiveness of the cost recovery mechanism in realizing 
160.17 	increased natural gas service to unserved or inadequately served areas from natural gas 
160.18 	extension projects.

160.19 	Sec. 10. [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE 
160.20 	ASSOCIATION.
160.21 	A cooperative electric association that has elected to be subject to rate regulation 
160.22 	under section 216B.026 is eligible to file for commission approval an adjustment for real 
160.23 	personal property taxes, fees, and permits.

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

160.25 	Sec. 11. [216B.1696] COMPETITIVE RATE FOR ENERGY-INTENSIVE 
160.26 	TRADE-EXPOSED ELECTRIC UTILITY CUSTOMER.
160.27 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
160.28 	have the meanings given them.
160.29 	(b) "Clean energy technology" is energy technology that generates electricity from a 
160.30 	noncarbon-emitting resource, including but not limited to solar, wind, hydroelectric, 
160.31 	and nuclear.
160.32 	(c) "Energy-intensive trade-exposed customer" is defined to include:
160.33 	(1) an iron mining extraction and processing facility, including a scram mining 
160.34 	facility as defined in Minnesota Rules, part 6130.0100, subpart 16;
161.1 	(2) a paper mill, wood products manufacturer, sawmill, or oriented strand board 
161.2 	manufacturer;
161.3 	(3) a copper, nickel, or precious metals mining extraction and processing facility;
161.4 	(4) a steel mill and related facilities;
161.5 	(5) an oil and liquids pipeline;
161.6 	(6) a ceiling panel manufacturer; and
161.7 	(7) any other globally competitive electric utility customer who can demonstrate 
161.8 	that energy costs are a significant portion of the customer's overall cost of production and 
161.9 	impede the customer's ability to compete in the global market.
161.10 	(d) "EITE rate schedule" means a rate schedule of an investor-owned electric 
161.11 	utility that establishes the terms of service for an individual or group of energy-intensive, 
161.12 	trade-exposed customers.
161.13 	(e) "EITE rate" means the rate or rates offered by the utility under an EITE rate 
161.14 	schedule.
161.15 		Subd. 2.Rates and terms of EITE rate schedule. (a) It is the energy policy 
161.16 	of the state of Minnesota to promote competitive electric rates for energy-intensive, 
161.17 	trade-exposed customers, as provided in this section. To achieve this objective, an 
161.18 	investor-owned electric utility may propose an EITE rate schedule for commission 
161.19 	approval that includes various EITE rate options, including fixed rates, market-based rates, 
161.20 	and rates to encourage utilization of clean energy technology.
161.21 	(b) Notwithstanding section 216B.03, 216B.05, 216B.06, 216B.07, or 216B.16, the 
161.22 	commission shall approve a proposed EITE rate schedule if it finds the schedule provides 
161.23 	net benefits to the utility and its customers, considering among other things:
161.24 	(1) potential cost impacts to the utility customers;
161.25 	(2) the net benefit to the local or state economy through the retention of or increase 
161.26 	to existing jobs;
161.27 	(3) a net increase in economic development in the utility's service territory; and
161.28 	(4) avoiding a significant increase in rates due to a reduction of EITE customer load.
161.29 	(c) An EITE rate offered by an electric utility under an approved EITE rate schedule 
161.30 	must be filed with the commission. The commission shall review and approve the EITE 
161.31 	rate offered by an electric utility if it finds the rate provides net benefits to the utility and 
161.32 	its customers as described above. The commission shall make a final determination in 
161.33 	any proceeding begun under this section within 90 days of a miscellaneous rate filing by 
161.34 	the electric utility.
161.35 	(d) Upon approval of an EITE rate, the utility may recover the incremental costs 
161.36 	associated with providing service to a customer under the EITE rate from the utility's 
162.1 	nonenergy-intensive, trade-exposed customers, except low-income residential ratepayers, 
162.2 	as defined in section 216B.16, subdivision 15.

162.3 	Sec. 12. Minnesota Statutes 2014, section 216B.2425, is amended to read:
162.4 	216B.2425 STATE TRANSMISSION AND DISTRIBUTION PLAN.
162.5 		Subdivision 1.List. The commission shall maintain a list of certified high-voltage 
162.6 	transmission line projects.
162.7 		Subd. 2.List development; transmission projects report. (a) By November 
162.8 	1 of each odd-numbered year, a transmission projects report must be submitted to the 
162.9 	commission by each utility, organization, or company that:
162.10 	(1) is a public utility, a municipal utility, a cooperative electric association, the 
162.11 	generation and transmission organization that serves each utility or association, or a 
162.12 	transmission company; and
162.13 	(2) owns or operates electric transmission lines in Minnesota, except a company or 
162.14 	organization that owns a transmission line that serves a single customer or interconnects a 
162.15 	single generating facility.
162.16 	(b) The report may be submitted jointly or individually to the commission.
162.17 	(c) The report must:
162.18 	(1) list specific present and reasonably foreseeable future inadequacies in the 
162.19 	transmission system in Minnesota;
162.20 	(2) identify alternative means of addressing each inadequacy listed;
162.21 	(3) identify general economic, environmental, and social issues associated with 
162.22 	each alternative; and
162.23 	(4) provide a summary of public input related to the list of inadequacies and the role 
162.24 	of local government officials and other interested persons in assisting to develop the list 
162.25 	and analyze alternatives.
162.26 	(d) To meet the requirements of this subdivision, reporting parties may rely on 
162.27 	available information and analysis developed by a regional transmission organization 
162.28 	or any subgroup of a regional transmission organization and may develop and include 
162.29 	additional information as necessary.
162.30 	(e) In addition to providing the information required under this subdivision, 
162.31 	a utility operating under a multiyear rate plan approved by the commission under 
162.32 	section 216B.16, subdivision 19, shall identify in its report investments that it considers 
162.33 	necessary to modernize the transmission and distribution system by enhancing reliability, 
162.34 	improving security against cyber and physical threats, and increasing energy conservation 
162.35 	opportunities by facilitating communication between the utility and its customers 
163.1 	through the use of two-way meters, control technologies, energy storage and microgrids, 
163.2 	technologies to enable demand response, and other innovative technologies.
163.3 		Subd. 3.Commission approval. By June 1 of each even-numbered year, the 
163.4 	commission shall adopt a state transmission project list and shall certify, certify as 
163.5 	modified, or deny certification of the transmission and distribution projects proposed 
163.6 	under subdivision 2. The commission may only certify a project that is a high-voltage 
163.7 	transmission line as defined in section 216B.2421, subdivision 2, that the commission 
163.8 	finds is:
163.9 	(1) necessary to maintain or enhance the reliability of electric service to Minnesota 
163.10 	consumers;
163.11 	(2) needed, applying the criteria in section 216B.243, subdivision 3; and
163.12 	(3) in the public interest, taking into account electric energy system needs and 
163.13 	economic, environmental, and social interests affected by the project.
163.14 		Subd. 4.List; effect. Certification of a project as a priority electric transmission 
163.15 	project satisfies section 216B.243. A certified project on which construction has not begun 
163.16 	more than six years after being placed on the list, must be reapproved by the commission.
163.17 		Subd. 5.Transmission inventory. The Department of Commerce shall create, 
163.18 	maintain, and update annually an inventory of transmission lines in the state.
163.19 		Subd. 6.Exclusion. This section does not apply to any transmission line proposal 
163.20 	that has been approved by, or was pending before, a local unit of government, the 
163.21 	Environmental Quality Board, or the Public Utilities Commission on August 1, 2001.
163.22 		Subd. 7.Transmission needed to support renewable resources. (a) Each entity 
163.23 	subject to this section shall determine necessary transmission upgrades to support 
163.24 	development of renewable energy resources required to meet objectives under section 
163.25 	216B.1691 and shall include those upgrades in its report under subdivision 2.
163.26 	(b) MS 2008 [Expired]
163.27 		Subd. 8.Distribution study for distributed generation. Each entity subject to 
163.28 	this section that is operating under a multiyear rate plan approved under section 216B.16, 
163.29 	subdivision 19, shall conduct a distribution study to identify interconnection points on its 
163.30 	distribution system for small-scale distributed generation resources and identify necessary 
163.31 	distribution upgrades to support the continued development of distributed generation 
163.32 	resources. The study shall be included in its report required under subdivision 2.

163.33 	Sec. 13. Minnesota Statutes 2014, section 216B.243, subdivision 3b, is amended to read:
164.1 		Subd. 3b.Nuclear power plant; new construction prohibited; relicensing 
164.2 	Additional storage of spent nuclear fuel. (a) The commission may not issue a certificate 
164.3 	of need for the construction of a new nuclear-powered electric generating plant.
164.4 	(b) Any certificate of need for additional storage of spent nuclear fuel for a facility 
164.5 	seeking a license extension shall address the impacts of continued operations over the 
164.6 	period for which approval is sought.

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

164.8 	Sec. 14. [216C.391] PROPANE AND NATURAL GAS VEHICLES; REBATE 
164.9 	PROGRAM.
164.10 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms below 
164.11 	have the meanings given them.
164.12 	(b) "Bi-fuel natural gas vehicle" means a vehicle capable of using compressed 
164.13 	natural gas or gasoline as a fuel.
164.14 	(c) "Bi-fuel propane vehicle" means a vehicle capable of using propane or gasoline 
164.15 	as a fuel.
164.16 	(d) "Bus" has the meaning given in section 168.002, subdivision 4.
164.17 	(e) "Compressed natural gas" means natural gas compressed to less than one percent 
164.18 	of the volume it occupies at standard atmospheric pressure.
164.19 	(f) "Converted" means a vehicle, originally manufactured to be fueled solely with 
164.20 	gasoline or diesel fuel, that has been modified by the installation of new equipment, 
164.21 	including but not limited to injectors, regulators, and a fuel tank, to be a natural gas or 
164.22 	propane vehicle.
164.23 	(g) "Dual-fuel natural gas vehicle" means a vehicle capable of using compressed 
164.24 	natural gas and diesel fuel as a fuel.
164.25 	(h) "Dual-fuel propane vehicle" means a vehicle capable of using propane and 
164.26 	diesel fuel as a fuel.
164.27 	(i) "Heavy-duty vehicle" means a truck, van, or bus with a gross vehicle weight 
164.28 	rating of 26,001 pounds or greater.
164.29 	(j) "Incremental cost" means:
164.30 	(1) the cost to convert a vehicle that was originally manufactured to be fueled with 
164.31 	gasoline or diesel fuel to a propane or natural gas vehicle; or
164.32 	(2) the difference between the cost of a vehicle originally manufactured to be fueled 
164.33 	with gasoline or diesel fuel and the cost of the same or similar vehicle manufactured to 
164.34 	operate exclusively on propane or compressed natural gas.
165.1 	(k) "Light-duty vehicle" means a truck, van, or bus with a gross vehicle weight 
165.2 	rating up to 10,000 pounds.
165.3 	(l) "Medium-duty vehicle" means a truck, van, or bus with a gross vehicle weight 
165.4 	rating of 10,001 pounds to 26,000 pounds.
165.5 	(m) "Natural gas vehicle" means a vehicle capable of using compressed natural gas 
165.6 	as a fuel, including a bi-fuel and dual-fuel natural gas vehicle.
165.7 	(n) "Propane vehicle" means a vehicle capable of using propane as a fuel, including 
165.8 	a bi-fuel and dual-fuel propane vehicle.
165.9 	(o) "Truck" has the meaning given in section 168.002, subdivision 37.
165.10 	(p) "Van" has the meaning given in section 168.002, subdivision 40.
165.11 	(q) "Vehicle" means a truck, van, or bus.
165.12 		Subd. 2.Program. (a) The commissioner of commerce shall develop and implement 
165.13 	a program to provide rebates to eligible vehicle owners for the purchase of vehicles that are:
165.14 	(1) new vehicles that have not been modified from the original manufacturer's 
165.15 	specifications and that are fueled solely with compressed natural gas or propane; or
165.16 	(2) converted vehicles.
165.17 	(b) Applications for rebates under this section shall be filed with the commissioner 
165.18 	on a form developed by the commissioner. The commissioner shall develop administrative 
165.19 	procedures governing the application and rebate award process. Applications will be 
165.20 	reviewed and rebates awarded on a first-come, first-served basis.
165.21 		Subd. 3.Eligibility. The owner of a natural gas or propane vehicle is eligible 
165.22 	for a rebate under this section if:
165.23 	(1) the owner of the natural gas or propane vehicle:
165.24 	(i) is a business that has a valid address in Minnesota from which business is 
165.25 	conducted; or
165.26 	(ii) is a county, city, town, or school district, or a transit system eligible for funding 
165.27 	under section 16A.88;
165.28 	(2) the owner of the natural gas or propane vehicle:
165.29 	(i) registers the natural gas or propane vehicle in Minnesota; and
165.30 	(ii) has not received a rebate or tax credit for the purchase or conversion of the same 
165.31 	natural gas or propane vehicle from another state;
165.32 	(3) the natural gas or propane vehicle:
165.33 	(i) is purchased or converted after the effective date of this act; and
165.34 	(ii) is used to perform business functions that are integral to the operations of the 
165.35 	business that owns the compressed natural gas vehicle; and
165.36 	(4) the conversion system installed in a converted vehicle:
166.1 	(i) complies with the Environmental Protection Agency's final rule on Clean 
166.2 	Alternative Fuel Vehicle and Engine Conversions, Code of Federal Regulations, title 
166.3 	40, parts 85 and 86;
166.4 	(ii) is installed by a person who has been certified to install the conversion system 
166.5 	by the manufacturer of the conversion system or a state that certifies persons to install 
166.6 	conversion systems; and
166.7 	(iii) is installed in compliance with the National Fire Protection Association's 
166.8 	Vehicular Fuel Systems Code (NFPA 52).
166.9 		Subd. 4.Rebate amounts. A rebate awarded under this section to a purchaser of 
166.10 	a new or converted natural gas or propane vehicle under this section may amount to no 
166.11 	more than 50 percent of the incremental cost of:
166.12 	(1) a light-duty vehicle, not to exceed $5,000;
166.13 	(2) a medium-duty vehicle, not to exceed $8,000; or
166.14 	(3) a heavy-duty vehicle, not to exceed $20,000.
166.15 		Subd. 5.Maximum rebate amounts. The maximum amount of rebates allowed 
166.16 	to a single business, county, city, town, or school district per year under this section are 
166.17 	as follows:
166.18 	(1) no more than $50,000 for light- and medium-duty vehicles; and
166.19 	(2) no more than $100,000 for heavy-duty vehicles.

166.20 	Sec. 15. Minnesota Statutes 2014, section 256E.31, subdivision 3, is amended to read:
166.21 		Subd. 3.Administering board. Each community action agency shall administer 
166.22 	its community action programs through a community action board consisting of 15 to 
166.23 	51 members.
166.24 	(a) One-third of the members of the board shall be elected public officials, currently 
166.25 	holding office, or their representatives.
166.26 	(b) At least one-third of the members shall be persons chosen in accordance with 
166.27 	democratic selection procedures adequate to assure that they are representative of the 
166.28 	poor in the area served.
166.29 	(c) The other members shall be officials or members of business, industry, labor, 
166.30 	religious, welfare, education, or other major groups and interests in the community. Each 
166.31 	member of the board selected to represent a specific geographic area within a community 
166.32 	must reside in the area represented.
166.33 	(d) The public community action agency shall have an administering board which 
166.34 	meets the requirements of this subdivision.
167.1 	(e) The statewide migrant seasonal farmworker organization known as the Minnesota 
167.2 	Migrant Council and Indian reservations carrying out community action programs are 
167.3 	exempt from the board composition requirements of this subdivision.

167.4 	Sec. 16. TRANSFER OF FUNCTIONS; STUDY.
 167.5 	(a) The commissioner of the Department of Administration shall contract with 
167.6 	the Management, Analysis, and Development Division of Minnesota Management and 
167.7 	Budget for a study to examine potential cost savings and program efficiencies that may 
167.8 	result from transferring certain functions and staff of the division of energy resources in 
167.9 	the Department of Commerce to the Public Utilities Commission. In conducting the study, 
167.10 	the Management, Analysis, and Development Division must:
167.11 	(1) analyze the functions of the various offices of both the division of energy 
167.12 	resources and the commission;
167.13 	(2) assess any duplicative functions of staff and redundant management positions;
167.14 	(3) assess whether transferring specific functions and staff would result in a clearer 
167.15 	and more functional link between authority and responsibility for accomplishing various 
167.16 	activities;
167.17 	(4) consider whether any such transfers would make governmental decisions 
167.18 	regarding energy more transparent to the public;
167.19 	(5) determine which specific positions, including administrative support, could be 
167.20 	eliminated as a result of the transfer without appreciably diminishing the quantity or 
167.21 	quality of work produced;
167.22 	(6) calculate the budgetary savings that could be realized as a result of transferring 
167.23 	functions and eliminating redundant positions;
167.24 	(7) estimate any cost savings that would accrue to regulated utilities as a result 
167.25 	of transferring functions;
167.26 	(8) assess the benefits and costs of various options with respect to transferring 
167.27 	functions and staff; and
167.28 	(9) assume that any transfer is subject to the provisions of Minnesota Statutes, 
167.29 	section 15.039.
167.30 	(b) The study must, by January 1, 2016, be submitted to the chairs and ranking 
167.31 	minority members of the senate and house committees with jurisdiction over energy 
167.32 	policy and state government operations.

167.33 	Sec. 17. TRANSFER OF DUTIES; ADVISORY TASK FORCE.
 168.1 	(a) An advisory task force is established to examine transferring the provision of 
168.2 	low-income heating assistance and weatherization programs for low-income households 
168.3 	from community action agencies currently performing those functions to other 
168.4 	organizations.
168.5 	(b) The governor, the president and minority leader of the senate, and the speaker 
168.6 	and minority leader of the house of representatives shall, by July 1, 2015, each appoint 
168.7 	one member of the advisory task force. The executive director of the Legislative Energy 
168.8 	Commission shall serve as staff for the task force. Members of the task force shall not 
168.9 	receive compensation.
168.10 	(c) In determining its findings and recommendations, the advisory task force shall 
168.11 	examine the organizations used by other states to provide low-income heating assistance 
168.12 	and weatherization programs.
168.13 	(d) The advisory task force shall present its findings and recommendations in a 
168.14 	report submitted by January 15, 2016, to the chairs and ranking minority members of the 
168.15 	senate and house committees with jurisdiction over energy policy.
168.16 	(e) The advisory task force established under this section expires on June 30, 2016.

168.17 	Sec. 18. PUBLIC POWER AUTHORITY; STUDY.
 168.18 	(a) The commissioner of employment and economic development shall contract 
168.19 	with an independent consulting organization with experience in energy to conduct a study 
168.20 	examining the feasibility and potential costs and benefits of creating a state public power 
168.21 	authority with the authority to:
168.22 	(1) construct, own, and operate electric generation and transmission facilities;
168.23 	(2) allocate low-cost power it generates or purchases to Minnesota retail customers;
168.24 	(3) finance energy efficiency projects in public buildings; and
168.25 	(4) perform related tasks.
168.26 	(b) The analysis must examine the structure, funding, and authority of similar 
168.27 	organizations in other states and countries. The report must be submitted no later than 
168.28 	February 15, 2016, to the chairs and ranking minority members of the senate and house of 
168.29 	representatives committees with primary jurisdiction over energy policy.

168.30 	Sec. 19. UTILITY PRICE INCREASES; REPORT.
 168.31 	By November 1, 2015, each utility that sells electricity at retail in this state shall 
168.32 	submit a report to the chairs and ranking minority members of the senate and house 
168.33 	committees with primary jurisdiction over energy policy that describes specific Minnesota 
168.34 	statutes, rules, procedures, and decisions made by the Public Utilities Commission 
169.1 	and the Department of Commerce that contribute to higher electricity rates without 
169.2 	providing significant value to Minnesota ratepayers. The report shall include specific 
169.3 	recommendations for change.

169.4 	Sec. 20.  REPEALER.
 169.5 	Minnesota Statutes 2014, section 3.8852, is repealed.

169.6 	ARTICLE 12
169.7 	CONFORMING CHANGES

169.8 	Section 1. Minnesota Statutes 2014, section 3.8851, subdivision 3, is amended to read:
169.9 		Subd. 3.Duties. (a) The commission shall continuously evaluate the energy policies 
169.10 	of this state and the degree to which they promote an environmentally and economically 
169.11 	sustainable energy future. The commission shall monitor the state's progress in achieving 
169.12 	its goals to develop renewable sources of electric energy under section 216B.1691, 
169.13 	subdivision 2a, and the progress of energy-related sectors in reducing greenhouse gas 
169.14 	emissions under the state's greenhouse gas emissions-reductions goals goal established in 
169.15 	section 216H.02, subdivision 1. The commission may review proposed energy legislation 
169.16 	and may recommend legislation. The commission shall when feasible solicit and consider 
169.17 	public testimony regarding the economic, environmental, and social implications of state 
169.18 	energy plans and policies. Notwithstanding any other law to the contrary the commission's 
169.19 	evaluations and reviews under this subdivision shall include new and existing technologies 
169.20 	for nuclear power.
169.21 	(b) The commission may study, analyze, hold hearings, and make legislative 
169.22 	recommendations regarding the following issues:
169.23 	(1) the generation, transmission, and distribution of electricity;
169.24 	(2) the reduction of greenhouse gas emissions;
169.25 	(3) the conservation of energy;
169.26 	(4) alternative energy sources available to replace dwindling fossil fuel and other 
169.27 	nonrenewable fuel sources;
169.28 	(5) the development of renewable energy supplies;
169.29 	(6) the economic development potential associated with issues described in clauses 
169.30 	(1) to (5); and
169.31 	(7) other energy-related subjects the commission finds significant.

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

170.1 	Sec. 2. Minnesota Statutes 2014, section 116C.7791, subdivision 5, is amended to read:
170.2 		Subd. 5.Rebate program funding. (a) The following amounts must be allocated 
170.3 	from the renewable development account established in section 116C.779by the utility to 
170.4 	a separate account for the purpose of providing the rebates for solar photovoltaic modules 
170.5 	specified in this section:
170.6 	(1) $2,000,000 in fiscal year 2011;
170.7 	(2) $4,000,000 in fiscal year 2012;
170.8 	(3) $5,000,000 in fiscal year 2013;
170.9 	(4) $5,000,000 in fiscal year 2014; and
170.10 	(5) $5,000,000 in fiscal year 2015.
170.11 	(b) If, by the end of fiscal year 2015, insufficient qualified owners have applied for 
170.12 	and met the requirements for rebates under this section to exhaust the funds available, any 
170.13 	remaining balance shall be returned to the account established under section 116C.779.

170.14 	Sec. 3. Minnesota Statutes 2014, section 116J.437, subdivision 1, is amended to read:
170.15 		Subdivision 1.Definitions. (a) For the purpose of this section, the following terms 
170.16 	have the meanings given.
170.17 	(b) "Green economy" means products, processes, methods, technologies, or services 
170.18 	intended to do one or more of the following:
170.19 	(1) increase the use of energy from renewable sources, including through achieving 
170.20 	the renewable advanced energy standard established in section 216B.1691;
170.21 	(2) achieve the statewide energy-savings goal established in section 216B.2401, 
170.22 	including energy savings achieved by the conservation investment program under section 
170.23 	216B.241;
170.24 	(3) achieve the greenhouse gas emission reduction goals goal of section 216H.02, 
170.25 	subdivision 1, including through reduction of greenhouse gas emissions, as defined in 
170.26 	section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through, 
170.27 	but not limited to, carbon capture, storage, or sequestration;
170.28 	(4) monitor, protect, restore, and preserve the quality of surface waters, including 
170.29 	actions to further the purposes of the Clean Water Legacy Act as provided in section 
170.30 	114D.10, subdivision 1;
170.31 	(5) expand the use of biofuels, including by expanding the feasibility or reducing the 
170.32 	cost of producing biofuels or the types of equipment, machinery, and vehicles that can 
170.33 	use biofuels, including activities to achieve the petroleum replacement goal in section 
170.34 	239.7911; or
170.35 	(6) increase the use of green chemistry, as defined in section 116.9401.
171.1 	For the purpose of clause (3), "green economy" includes strategies that reduce carbon 
171.2 	emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass 
171.3 	transit or otherwise reducing commuting for employees.

171.4 	Sec. 4. Minnesota Statutes 2014, section 216B.164, subdivision 3a, is amended to read:
171.5 		Subd. 3a.Net metered facility. (a) Except for customers receiving a value of solar 
171.6 	rate under subdivision 10, A customer with a net metered facility having a capacity of 
171.7 	40 kilowatts or greater but less than 1,000 kilowatts that is interconnected to a public 
171.8 	utility may elect to be compensated for the customer's net input into the utility system 
171.9 	in the form of a kilowatt-hour credit on the customer's energy bill carried forward and 
171.10 	applied to subsequent energy bills. Any net input supplied by the customer into the utility 
171.11 	system that exceeds energy supplied to the customer by the utility during a calendar year 
171.12 	must be compensated at the applicable rate.
171.13 	(b) A public utility may not impose a standby charge on a net metered or qualifying 
171.14 	facility:
171.15 	(1) of 100 kilowatts or less capacity; or
171.16 	(2) of more than 100 kilowatts capacity, except in accordance with an order of the 
171.17 	commission establishing the allowable costs to be recovered through standby charges.

171.18 	Sec. 5. Minnesota Statutes 2014, section 216B.1645, subdivision 1, is amended to read:
171.19 		Subdivision 1.Commission authority. Upon the petition of a public utility, the 
171.20 	Public Utilities Commission shall approve or disapprove power purchase contracts, 
171.21 	investments, or expenditures entered into or made by the utility to satisfy the wind and 
171.22 	biomass mandates contained in sections 216B.169, 216B.2423, and 216B.2424, and 
171.23 	to satisfy the renewable advanced energy objectives and standards set forth in section 
171.24 	216B.1691, including reasonable investments and expenditures made to:
171.25 	(1) transmit the electricity generated from sources developed under those sections 
171.26 	that is ultimately used to provide service to the utility's retail customers, including 
171.27 	studies necessary to identify new transmission facilities needed to transmit electricity to 
171.28 	Minnesota retail customers from generating facilities constructed to satisfy the renewable 
171.29 	advanced energy objectives and standards, provided that the costs of the studies have not 
171.30 	been recovered previously under existing tariffs and the utility has filed an application 
171.31 	for a certificate of need or for certification as a priority project under section 216B.2425
171.32 	for the new transmission facilities identified in the studies;
171.33 	(2) provide storage facilities for renewable energy generation facilities that 
171.34 	contribute to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or
172.1 	(3) develop renewable energy sources from the account required in section 116C.779.

172.2 	Sec. 6. Minnesota Statutes 2014, section 216B.241, subdivision 5c, is amended to read:
172.3 		Subd. 5c.Large solar electric generating plant. (a) For the purpose of this 
172.4 	subdivision:
172.5 	(1) "project" means a solar electric generation project consisting of arrays of solar 
172.6 	photovoltaic cells with a capacity of up to two megawatts located on the site of a closed 
172.7 	landfill in Olmsted County owned by the Minnesota Pollution Control Agency; and
172.8 	(2) "cooperative electric association" means a generation and transmission 
172.9 	cooperative electric association that has a member distribution cooperative association to 
172.10 	which it provides wholesale electric service in whose service territory a project is located.
172.11 	(b) A cooperative electric association may elect to count all of its purchases of 
172.12 	electric energy from a project toward only one of the following:
172.13 	(1) its energy-savings goal under subdivision 1c; or
172.14 	(2) its advanced energy objective or standard under section 216B.1691.
172.15 	(c) A cooperative electric association may include in its conservation plan purchases 
172.16 	of electric energy from a project. The cost-effectiveness of project purchases may be 
172.17 	determined by a different standard than for other energy conservation improvements 
172.18 	under this section if the commissioner determines that doing so is in the public interest 
172.19 	in order to encourage solar energy. The kilowatt hours of solar energy purchased by a 
172.20 	cooperative electric association from a project may count for up to 33 percent of its one 
172.21 	percent savings goal under subdivision 1c or up to 22 percent of its 1.5 percent savings 
172.22 	goal under that subdivision. Expenditures made by a cooperative association for the 
172.23 	purchase of energy from a project may not be used to meet the revenue expenditure 
172.24 	requirements of subdivisions 1a and 1b.

172.25 	Sec. 7. Minnesota Statutes 2014, section 216B.241, subdivision 9, is amended to read:
172.26 		Subd. 9.Building performance standards; Sustainable Building 2030. (a) The 
172.27 	purpose of this subdivision is to establish cost-effective energy-efficiency performance 
172.28 	standards for new and substantially reconstructed commercial, industrial, and institutional 
172.29 	buildings that can significantly reduce carbon dioxide emissions by lowering energy use in 
172.30 	new and substantially reconstructed buildings. For the purposes of this subdivision, the 
172.31 	establishment of these standards may be referred to as Sustainable Building 2030.
172.32 	(b) The commissioner shall contract with the Center for Sustainable Building 
172.33 	Research at the University of Minnesota to coordinate development and implementation 
172.34 	of energy-efficiency performance standards, strategic planning, research, data analysis, 
173.1 	technology transfer, training, and other activities related to the purpose of Sustainable 
173.2 	Building 2030. The commissioner and the Center for Sustainable Building Research 
173.3 	shall, in consultation with utilities, builders, developers, building operators, and experts 
173.4 	in building design and technology, develop a Sustainable Building 2030 implementation 
173.5 	plan that must address, at a minimum, the following issues:
173.6 	(1) training architects to incorporate the performance standards in building design;
173.7 	(2) incorporating the performance standards in utility conservation improvement 
173.8 	programs; and
173.9 	(3) developing procedures for ongoing monitoring of energy use in buildings that 
173.10 	have adopted the performance standards.
173.11 	The plan must be submitted to the chairs and ranking minority members of the senate and 
173.12 	house of representatives committees with primary jurisdiction over energy policy by 
173.13 	July 1, 2009.
173.14 	(c) Sustainable Building 2030 energy-efficiency performance standards must be firm, 
173.15 	quantitative measures of total building energy use and associated carbon dioxide emissions 
173.16 	per square foot for different building types and uses, that allow for accurate determinations 
173.17 	of a building's conformance with a performance standard. Performance standards must 
173.18 	address energy use by electric vehicle charging infrastructure in or adjacent to buildings as 
173.19 	that infrastructure begins to be made widely available. The energy-efficiency performance 
173.20 	standards must be updated every three or five years to incorporate all cost-effective 
173.21 	measures. The performance standards must reflect the reductions in carbon dioxide 
173.22 	emissions per square foot resulting from actions taken by utilities to comply with the 
173.23 	renewable advanced energy standards in section 216B.1691. The performance standards 
173.24 	should be designed to achieve reductions equivalent to the following reduction schedule, 
173.25 	measured against energy consumption by an average building in each applicable building 
173.26 	sector in 2003: (1) 60 percent in 2010; (2) 70 percent in 2015; (3) 80 percent in 2020; 
173.27 	and (4) 90 percent in 2025. A performance standard must not be established or increased 
173.28 	absent a conclusive engineering analysis that it is cost-effective based upon established 
173.29 	practices used in evaluating utility conservation improvement programs.
173.30 	(d) The annual amount of the contract with the Center for Sustainable Building 
173.31 	Research is up to $500,000. The Center for Sustainable Building Research shall expend 
173.32 	no more than $150,000 of this amount each year on administration, coordination, and 
173.33 	oversight activities related to Sustainable Building 2030. The balance of contract funds 
173.34 	must be spent on substantive programmatic activities allowed under this subdivision that 
173.35 	may be conducted by the Center for Sustainable Building Research and others, and for 
173.36 	subcontracts with not-for-profit energy organizations, architecture and engineering firms, 
174.1 	and other qualified entities to undertake technical projects and activities in support of 
174.2 	Sustainable Building 2030. The primary work to be accomplished each year by qualified 
174.3 	technical experts under subcontracts is the development and thorough justification of 
174.4 	recommendations for specific energy-efficiency performance standards. Additional work 
174.5 	may include:
174.6 	(1) research, development, and demonstration of new energy-efficiency technologies 
174.7 	and techniques suitable for commercial, industrial, and institutional buildings;
174.8 	(2) analysis and evaluation of practices in building design, construction, 
174.9 	commissioning and operations, and analysis and evaluation of energy use in the 
174.10 	commercial, industrial, and institutional sectors;
174.11 	(3) analysis and evaluation of the effectiveness and cost-effectiveness of Sustainable 
174.12 	Building 2030 performance standards, conservation improvement programs, and building 
174.13 	energy codes;
174.14 	(4) development and delivery of training programs for architects, engineers, 
174.15 	commissioning agents, technicians, contractors, equipment suppliers, developers, and 
174.16 	others in the building industries; and
174.17 	(5) analysis and evaluation of the effect of building operations on energy use.
174.18 	(e) The commissioner shall require utilities to develop and implement conservation 
174.19 	improvement programs that are expressly designed to achieve energy efficiency goals 
174.20 	consistent with the Sustainable Building 2030 performance standards. These programs 
174.21 	must include offerings of design assistance and modeling, financial incentives, and the 
174.22 	verification of the proper installation of energy-efficient design components in new and 
174.23 	substantially reconstructed buildings. A utility's design assistance program must consider 
174.24 	the strategic planting of trees and shrubs around buildings as an energy conservation 
174.25 	strategy for the designed project. A utility making an expenditure under its conservation 
174.26 	improvement program that results in a building meeting the Sustainable Building 2030 
174.27 	performance standards may claim the energy savings toward its energy-savings goal 
174.28 	established in subdivision 1c.
174.29 	(f) The commissioner shall report to the legislature every three years, beginning 
174.30 	January 15, 2010, on the cost-effectiveness and progress of implementing the Sustainable 
174.31 	Building 2030 performance standards and shall make recommendations on the need to 
174.32 	continue the program as described in this section.

174.33 	Sec. 8. Minnesota Statutes 2014, section 216B.2411, subdivision 3, is amended to read:
174.34 		Subd. 3.Other provisions. (a) Electricity generated by a facility constructed with 
174.35 	funds provided under this section and using an eligible renewable energy source may be 
175.1 	counted toward the renewable advanced energy objectives standards in section 216B.1691, 
175.2 	subject to the provisions of that section, except as provided in paragraph (c).
175.3 	(b) Two or more entities may pool resources under this section to provide assistance 
175.4 	jointly to proposed eligible renewable energy projects. The entities shall negotiate and 
175.5 	agree among themselves for allocation of benefits associated with a project, such as 
175.6 	the ability to count energy generated by a project toward a utility's renewable advance 
175.7 	energy objectives under section 216B.1691, except as provided in paragraph (c). The 
175.8 	entities shall provide a summary of the allocation of benefits to the commissioner. A 
175.9 	utility may spend funds under this section for projects in Minnesota that are outside the 
175.10 	service territory of the utility.
175.11 	(c) Electricity generated by a solar photovoltaic device constructed with funds 
175.12 	provided under this section may be counted toward a public utility's solar energy standard 
175.13 	under section 216B.1691, subdivision 2f.

175.14 	Sec. 9. Minnesota Statutes 2014, section 216B.2422, subdivision 2c, is amended to read:
175.15 		Subd. 2c.Long-range emission reduction planning. Each utility required to file a 
175.16 	resource plan under subdivision 2 shall include in the filing a narrative identifying and 
175.17 	describing the costs, opportunities, and technical barriers to the utility continuing to make 
175.18 	progress on its system toward achieving the state greenhouse gas emission reduction goals 
175.19 	goal established in section 216H.02, subdivision 1, and the technologies, alternatives, and 
175.20 	steps the utility is considering to address those opportunities and barriers.

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

175.22 	Sec. 10. Minnesota Statutes 2014, section 216B.2422, subdivision 4, is amended to read:
175.23 		Subd. 4.Preference for renewable energy facility. The commission shall not 
175.24 	approve a new or refurbished nonrenewable energy facility in an integrated resource plan 
175.25 	or a certificate of need, pursuant to section 216B.243, nor shall the commission allow rate 
175.26 	recovery pursuant to section 216B.16 for such a nonrenewable energy facility, unless the 
175.27 	utility has demonstrated that a renewable energy facility is not in the public interest. The 
175.28 	public interest determination must include whether the resource plan helps the utility 
175.29 	achieve the greenhouse gas reduction goals goal under section 216H.02, or the renewable 
175.30 	advanced energy standard under section 216B.1691, or the solar energy standard under 
175.31 	section 216B.1691, subdivision 2f.

175.32 	Sec. 11. Minnesota Statutes 2014, section 216B.2425, subdivision 7, is amended to read:
176.1 		Subd. 7.Transmission needed to support renewable resources. (a) Each entity 
176.2 	subject to this section shall determine necessary transmission upgrades to support 
176.3 	development of renewable energy resources required to meet objectives the advanced 
176.4 	energy standards under section 216B.1691 and shall include those upgrades in its report 
176.5 	under subdivision 2.
176.6 	(b) MS 2008 [Expired]

176.7 	Sec. 12. Minnesota Statutes 2014, section 216B.243, subdivision 9, is amended to read:
176.8 		Subd. 9.Renewable energy standard facilities.  This section does not apply to a 
176.9 	wind energy conversion system or a solar electric generation facility that is intended to be 
176.10 	used to meet the obligations advanced energy standards of section 216B.1691; provided 
176.11 	that, after notice and comment, the commission determines that the facility is a reasonable 
176.12 	and prudent approach to meeting a utility's obligations under that section. When making 
176.13 	this determination, the commission must consider:
176.14 	(1) the size of the facility relative to a utility's total need for renewable resources;
176.15 	(2) alternative approaches for supplying the renewable energy to be supplied by 
176.16 	the proposed facility;
176.17 	(3) the facility's ability to promote economic development, as required under section 
176.18 	216B.1691, subdivision 9;
176.19 	(4) the facility's ability to maintain electric system reliability;
176.20 	(5) impacts on ratepayers; and
176.21 	(6) other criteria as the commission may determine are relevant.

176.22 	Sec. 13. Minnesota Statutes 2014, section 216C.41, subdivision 2, is amended to read:
176.23 		Subd. 2.Incentive payment; appropriation. (a) Incentive payments must be made 
176.24 	according to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner or 
176.25 	operator of a qualified hydropower facility or qualified wind energy conversion facility for 
176.26 	electric energy generated and sold by the facility, (3) a publicly owned hydropower facility 
176.27 	for electric energy that is generated by the facility and used by the owner of the facility 
176.28 	outside the facility, or (4) the owner of a publicly owned dam that is in need of substantial 
176.29 	repair, for electric energy that is generated by a hydropower facility at the dam and the 
176.30 	annual incentive payments will be used to fund the structural repairs and replacement of 
176.31 	structural components of the dam, or to retire debt incurred to fund those repairs.
176.32 	(b) Payment may only be made upon receipt by the commissioner of commerce of 
176.33 	an incentive payment application that establishes that the applicant is eligible to receive an 
177.1 	incentive payment and that satisfies other requirements the commissioner deems necessary. 
177.2 	The application must be in a form and submitted at a time the commissioner establishes.
177.3 	(c) There is annually appropriated from the renewable development energy fund 
177.4 	account established under section 116C.779 to the commissioner of commerce sums 
177.5 	sufficient to make the payments required under this section, in addition to the amounts 
177.6 	funded by the renewable development account as specified in subdivision 5a.

177.7 	Sec. 14. Minnesota Statutes 2014, section 216C.41, subdivision 5a, is amended to read:
177.8 		Subd. 5a.Renewable development accountPayment authorization. The 
177.9 	Department of Commerce shall authorize payment of the renewable energy production 
177.10 	incentive to wind energy conversion systems that are eligible under this section or Laws 
177.11 	2005, chapter 40, to on-farm biogas recovery facilities, and to hydroelectric facilities. 
177.12 	Payment of the incentive shall be made from the renewable energy development account as 
177.13 	provided  under section 116C.779, subdivision2 by the utility subject to section 116C.779.

177.14 	Sec. 15. Minnesota Statutes 2014, section 216H.021, subdivision 1, is amended to read:
177.15 		Subdivision 1.Commissioner to establish reporting system and maintain 
177.16 	inventory. In order to measure the progress in meeting the goals goal of section 216H.02, 
177.17 	subdivision 1, and to provide information to develop strategies to achieve those goals, 
177.18 	the commissioner of the Pollution Control Agency shall establish a system for reporting 
177.19 	and maintaining an inventory of greenhouse gas emissions. The commissioner must 
177.20 	consult with the chief information officer of the Office of MN.IT Services about system 
177.21 	design and operation. Greenhouse gas emissions include those emissions described in 
177.22 	section 216H.01, subdivision 2.

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

177.24 	Sec. 16. Minnesota Statutes 2014, section 216H.03, subdivision 4, is amended to read:
177.25 		Subd. 4.Exception for facilities that offset emissions. (a) The prohibitions 
177.26 	prohibition in subdivision 3 do does not apply if the project proponent demonstrates to 
177.27 	the Public Utilities Commission's satisfaction that it will offset the new contribution to 
177.28 	statewide power sector carbon dioxide emissions with a carbon dioxide reduction project 
177.29 	identified in paragraph (b) and in compliance with paragraph (c).
177.30 	(b) A project proponent may offset in an amount equal to or greater than the 
177.31 	proposed new contribution to statewide power sector carbon dioxide emissions in either, 
177.32 	or a combination of both, of the following ways:
178.1 	(1) by reducing an existing facility's contribution to statewide power sector carbon 
178.2 	dioxide emissions; or
178.3 	(2) by purchasing carbon dioxide allowances from a state or group of states that has a 
178.4 	carbon dioxide cap and trade system in place that produces verifiable emissions reductions.
178.5 	(c) The Public Utilities Commission shall not find that a proposed carbon dioxide 
178.6 	reduction project identified in paragraph (b) acceptably offsets a new contribution to 
178.7 	statewide power sector carbon dioxide emissions unless the proposed offsets are permanent, 
178.8 	quantifiable, verifiable, enforceable, and would not have otherwise occurred. This section 
178.9 	does not exempt emissions that have been offset under this subdivision and emissions 
178.10 	exempted under subdivisions 5 to 7 from a cap and trade system if adopted by the state.

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

178.12 	Sec. 17. Minnesota Statutes 2014, section 373.48, subdivision 3, is amended to read:
178.13 		Subd. 3.Joint purchase of energy and acquisition of generation projects; 
178.14 	financing. (a) A county may enter into agreements under section 471.59 with other 
178.15 	counties for joint purchase of energy or joint acquisition of interests in projects. A county 
178.16 	that enters into a multiyear agreement for purchase of energy or acquires an interest in 
178.17 	a project, including C-BED projects pursuant to section 216B.1612, subdivision 9, may 
178.18 	finance the estimated cost of the energy to be purchased during the term of the agreement 
178.19 	or the cost to the county of the interest in the project by the issuance of revenue bonds of 
178.20 	the county, including clean renewable energy revenue bonds, provided that the annual debt 
178.21 	service on all bonds issued under this section, together with the amounts to be paid by the 
178.22 	county in any year for the purchase of energy under agreements entered into under this 
178.23 	section, must not exceed the estimated revenues of the project.
178.24 	(b) An agreement entered into under section 471.59 as provided by this section 
178.25 	may provide that:
178.26 	(1) each county issues bonds to pay their respective shares of the cost of the projects;
178.27 	(2) one of the counties issues bonds to pay the full costs of the project and that the 
178.28 	other participating counties pay any available revenues of the project and pledge the 
178.29 	revenues to the county that issues the bonds; or
178.30 	(3) the joint powers board issues revenue bonds to pay the full costs of the project 
178.31 	and that the participating counties pay any available revenues of the project under this 
178.32 	subdivision and pledge the revenues to the joint powers entity for payment of the revenue 
178.33 	bonds.

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