1.1 	A bill for an act
1.2 	relating to state government; providing supplemental appropriations and policy 
1.3 	for higher education, agriculture, broadband development, state agencies, 
1.4 	the courts, public safety, corrections, environment, natural resources, state 
1.5 	government, veterans, jobs, economic development, labor and industry, 
1.6 	commerce, housing finance, health and human services, early childhood 
1.7 	education, voluntary prekindergarten, kindergarten through grade 12 education, 
1.8 	and community and adult education; providing for the James Metzen Mighty 
1.9 	Ducks Ice Center Development Act; providing policy initiatives for state 
1.10 	government programs; making policy, technical, and conforming changes to 
1.11 	various provisions, including provisions governing broadband development, 
1.12 	state broadband goals, postsecondary student aid programs, agriculture, driver's 
1.13 	licenses, identification cards, predatory offender registration, prostitution, game 
1.14 	and fish, natural resources, state lands, watercraft, recreational vehicles, energy, 
1.15 	utilities, state agencies, the Board of Barbers, veterans, economic development, 
1.16 	labor and industry, housing, the Public Employment Relations Board, Explore 
1.17 	Minnesota Tourism, commerce, children and family services, mental and 
1.18 	chemical health services, direct care and treatment, continuing care, health 
1.19 	care programs, Department of Health programs, and health-related licensing; 
1.20 	making forecast adjustments; making adjustments to certain appropriations; 
1.21 	specifying requirements for construction of highways on tribal lands; creating 
1.22 	a surrogacy commission; modifying state procurement contracts; establishing 
1.23 	certain programs and incentives; providing an income tax subtraction for military 
1.24 	retirement pay; providing an income tax credit for parents of stillborn children; 
1.25 	modifying the sales and use tax rate for retail sales of modular homes; increasing 
1.26 	maximum sentence for felony assault motivated by bias; permitting the purchase 
1.27 	and possession of alcohol by sensory testing firms; authorizing the issuance of 
1.28 	certain liquor licenses; authorizing transfers; creating accounts; creating task 
1.29 	forces; requiring reports; authorizing rulemaking; providing criminal penalties;
1.30 	amending Minnesota Statutes 2014, sections 3.3005, subdivisions 3, 3b, 4, 5, 6, 
1.31 	by adding subdivisions; 13.3805, by adding a subdivision; 16A.103, by adding a 
1.32 	subdivision; 16C.10, subdivision 6; 16C.16, subdivisions 6, 7, 11, by adding a 
1.33 	subdivision; 16E.0466; 16E.21, subdivision 2, by adding subdivisions; 17.117, 
1.34 	subdivisions 4, 11a; 17.4982, subdivision 18a; 18B.26, subdivision 3; 41A.12, 
1.35 	subdivision 2; 61A.24, by adding a subdivision; 61A.25, by adding a subdivision; 
1.36 	62D.04, subdivision 1; 62D.08, subdivision 3; 62J.495, subdivision 4; 62J.496, 
1.37 	subdivision 1; 62V.05, by adding a subdivision; 84.027, subdivision 13; 84.091, 
1.38 	subdivision 2; 84.798, subdivision 2; 84.8035; 84D.01, subdivision 2; 84D.05, 
1.39 	subdivision 1; 84D.09, subdivision 2; 84D.10, subdivision 4; 84D.108, by adding 
2.1 	a subdivision; 84D.13, subdivision 4; 85.015, subdivision 13; 86B.005, by adding 
2.2 	subdivisions; 88.01, by adding a subdivision; 88.22, subdivision 1; 89.0385; 
2.3 	93.0015, subdivision 3; 93.2236; 94.3495, subdivisions 2, 3, 7; 97A.075, 
2.4 	subdivision 7; 97A.405, subdivision 2; 97A.465, by adding a subdivision; 
2.5 	115C.09, subdivisions 1, 3; 115C.13; 116J.395, subdivisions 4, 5, by adding 
2.6 	subdivisions; 116J.423; 116J.424; 116J.431, subdivisions 1, 2, 4, 6; 116J.68; 
2.7 	116J.8737, subdivisions 2, 3, 5, 12; 116J.8747, subdivisions 1, 2; 116L.99; 
2.8 	116M.14, subdivisions 2, 4, by adding subdivisions; 116M.15, subdivision 1, by 
2.9 	adding a subdivision; 116M.17, subdivisions 2, 4; 116M.18; 120A.42; 120B.02, 
2.10 	by adding a subdivision; 120B.021, subdivisions 1, 3; 120B.11, subdivisions 1a, 
2.11 	2, 3, 4, 5; 120B.12, subdivision 2; 120B.15; 120B.232; 120B.30, subdivision 2, by 
2.12 	adding a subdivision; 120B.31, subdivision 5, by adding subdivisions; 120B.35; 
2.13 	120B.36, as amended; 121A.53; 121A.61, subdivision 3; 121A.64; 122A.09, as 
2.14 	amended; 122A.16; 122A.18, as amended; 122A.21, as amended; 122A.245, as 
2.15 	amended; 122A.31, subdivision 3; 122A.4144; 122A.416; 122A.42; 122A.63, 
2.16 	subdivision 1; 122A.72, subdivision 5; 123A.24, subdivision 2; 123B.045, by 
2.17 	adding a subdivision; 123B.52, subdivision 1; 123B.53, subdivision 5; 123B.571, 
2.18 	subdivision 2; 123B.60, subdivision 1; 123B.71, subdivision 8; 123B.79, 
2.19 	subdivisions 5, 8, 9; 124D.03, subdivision 5a; 124D.111, by adding a subdivision; 
2.20 	124D.1158, subdivisions 3, 4; 124D.135, subdivision 6, by adding subdivisions; 
2.21 	124D.15, subdivisions 3a, 15; 124D.52, subdivisions 1, 2; 124D.55; 124D.59, by 
2.22 	adding a subdivision; 124D.68, subdivision 2; 124D.861, as amended; 125A.091, 
2.23 	subdivision 11; 125A.0942, subdivision 4; 125A.56, subdivision 1; 126C.05, 
2.24 	subdivision 3; 126C.10, subdivisions 2d, 24; 126C.40, subdivision 5; 126C.63, 
2.25 	subdivision 7; 127A.095; 127A.353, subdivision 4; 127A.45, subdivision 6a; 
2.26 	127A.51; 129C.10, subdivision 1; 136A.101, subdivisions 5a, 10; 144.05, by 
2.27 	adding a subdivision; 144A.073, subdivisions 13, 14, by adding a subdivision; 
2.28 	144A.611, subdivisions 1, 2, by adding a subdivision; 144A.75, subdivisions 5, 
2.29 	6, 8, by adding a subdivision; 145.4716, subdivision 2, by adding a subdivision; 
2.30 	149A.50, subdivision 2; 154.001, subdivision 2; 154.002; 154.01; 154.02; 
2.31 	154.04; 154.05; 154.065, subdivisions 2, 4; 154.07; 154.08; 154.09; 154.10, 
2.32 	subdivision 2; 154.11, subdivision 1; 154.14; 154.15; 154.161, subdivision 7; 
2.33 	154.162; 154.19; 154.21; 154.24; 154.25; 161.368; 171.07, subdivisions 6, 7, 
2.34 	15, by adding a subdivision; 197.455, subdivision 1; 214.075, subdivision 3; 
2.35 	216B.16, subdivision 12; 216B.1691, subdivision 10; 216B.241, subdivision 
2.36 	1c; 216B.243, subdivision 8; 216C.20, subdivision 3; 216E.03, subdivision 5; 
2.37 	216H.01, by adding a subdivision; 216H.03, subdivision 1; 237.012; 243.166, 
2.38 	subdivision 1b; 245.92; 245.94; 245.95, subdivision 1; 245.97, subdivision 5; 
2.39 	245.99, subdivision 2; 245A.11, subdivision 2a, as amended; 246.50, subdivision 
2.40 	7; 246.54, as amended; 246B.01, subdivision 1b; 246B.035; 254B.01, subdivision 
2.41 	4a; 254B.03, subdivision 4; 254B.04, subdivision 2a; 254B.06, subdivision 2, by 
2.42 	adding a subdivision; 256.01, by adding a subdivision; 256B.059, subdivisions 1, 
2.43 	2, 3, by adding a subdivision; 256B.06, subdivision 4; 256B.0622, by adding a 
2.44 	subdivision; 256B.0625, subdivisions 30, 34, by adding a subdivision; 256B.15, 
2.45 	subdivisions 1, 1a, 2; 256D.051, subdivision 6b; 256L.01, subdivision 1a; 
2.46 	256L.04, subdivisions 1a, 2; 256L.07, subdivision 1; 256L.11, subdivision 
2.47 	7; 256N.26, subdivision 3; 260C.451, by adding a subdivision; 268.035, 
2.48 	subdivisions 12, 20, 23a, 29, by adding subdivisions; 268.051, subdivision 5; 
2.49 	268.085, subdivisions 4, 5; 268.0865, subdivisions 3, 4; 268.095, subdivisions 1, 
2.50 	2, 5; 268.101, subdivision 2; 268.18; 268.182, subdivision 2; 290.01, subdivision 
2.51 	19b; 297A.62, subdivision 3; 299A.41, subdivisions 3, 4; 326B.439; 326B.49, 
2.52 	subdivision 1; 327.14, subdivision 8; 327C.03, subdivision 6; 327C.095, 
2.53 	subdivisions 12, 13; 373.48, subdivision 3; 462A.204, subdivisions 1, 3; 484.90, 
2.54 	subdivision 6; 518.175, subdivision 5; 518A.34; 518A.35, subdivision 1; 
2.55 	518A.36; 609.3241; 626.556, subdivision 3e; 626.558, subdivisions 1, 2, by 
2.56 	adding a subdivision; Minnesota Statutes 2015 Supplement, sections 16A.152, 
2.57 	subdivision 2; 16A.724, subdivision 2; 16C.073, subdivision 2; 16C.16, 
2.58 	subdivision 6a; 41A.14; 41A.15, subdivision 10, by adding subdivisions; 
3.1 	41A.16, subdivision 1; 41A.17, subdivisions 1, 2; 41A.18, subdivision 1; 84.027, 
3.2 	subdivision 13a; 84D.11, subdivision 1; 84D.13, subdivision 5; 116D.04, 
3.3 	subdivision 2a; 116J.394; 120A.41; 120B.021, subdivision 4; 120B.125; 
3.4 	120B.30, subdivision 1; 120B.301; 120B.31, subdivision 4; 122A.23; 122A.40, 
3.5 	subdivision 8; 122A.41, subdivision 5; 122A.414, subdivisions 1, 2, 2b, 3; 
3.6 	122A.415, subdivision 4; 122A.60, subdivision 4; 123B.53, subdivision 1; 
3.7 	123B.595, subdivisions 1, 4, 7, 8, 9, 10, 11, by adding a subdivision; 124D.231, 
3.8 	subdivision 2; 124D.59, subdivision 2; 124D.73, subdivision 4; 124E.01; 
3.9 	124E.02; 124E.03; 124E.05; 124E.06; 124E.07; 124E.08; 124E.10; 124E.12; 
3.10 	124E.13; 124E.15; 124E.16; 124E.17; 124E.22; 124E.24; 124E.25; 124E.26; 
3.11 	125A.08; 125A.083; 125A.0942, subdivision 3; 125A.11, subdivision 1; 
3.12 	125A.21, subdivision 3; 125A.63, subdivision 4; 125A.76, subdivision 2c; 
3.13 	125A.79, subdivision 1; 126C.05, subdivision 1; 126C.10, subdivision 13a; 
3.14 	126C.48, subdivision 8; 127A.05, subdivision 6; 127A.47, subdivision 7; 
3.15 	136A.121, subdivision 7a; 136A.125, subdivisions 2, 4; 136A.1791, subdivisions 
3.16 	4, 5, 6; 136A.246, by adding subdivisions; 136A.87; 136F.302, subdivision 
3.17 	1; 144.4961, subdivisions 3, 4, 5, 6, 8, by adding subdivisions; 144A.75, 
3.18 	subdivision 13; 149A.92, subdivision 1; 154.003; 154.11, subdivision 3; 154.161, 
3.19 	subdivision 4; 197.46; 245.735, subdivisions 3, 4; 254B.05, subdivision 5; 
3.20 	256B.059, subdivision 5; 256B.0625, subdivision 17a; 256B.431, subdivision 
3.21 	36; 256B.76, subdivisions 2, 4; 256B.766; 256L.01, subdivision 5; 256L.04, 
3.22 	subdivision 7b; 256L.05, subdivision 3a; 256L.06, subdivision 3; 256L.15, 
3.23 	subdivision 1; 256P.06, subdivision 3; 260C.203; 260C.212, subdivisions 1, 
3.24 	14; 260C.215, subdivision 4; 260C.451, subdivision 6; 260C.521, subdivision 
3.25 	1; 268.07, subdivision 3b; 268.085, subdivision 2; 326B.13, subdivision 8; 
3.26 	326B.988; 518A.26, subdivision 14; 518A.39, subdivision 2; 583.215; 609.324, 
3.27 	subdivision 1; 626.556, subdivision 2; Laws 2001, chapter 130, section 3; Laws 
3.28 	2011, First Special Session chapter 11, article 4, section 8; Laws 2014, chapter 
3.29 	198, article 2, section 2; Laws 2014, chapter 211, section 13; Laws 2014, chapter 
3.30 	312, article 2, sections 14; 15; article 12, section 6, subdivision 5, as amended; 
3.31 	Laws 2015, chapter 65, article 1, section 18; Laws 2015, chapter 69, article 1, 
3.32 	section 3, subdivision 28; article 3, sections 20, subdivision 15; 24, subdivision 
3.33 	1; Laws 2015, chapter 71, article 8, section 24; article 14, section 4, subdivision 
3.34 	3; Laws 2015, First Special Session chapter 1, article 1, sections 2, subdivision 3; 
3.35 	4; 6; article 6, section 16; Laws 2015, First Special Session chapter 3, article 1, 
3.36 	sections 24; 27, subdivisions 2, 4, 5, 6, 7, 9; article 2, section 70, subdivisions 
3.37 	2, 3, 4, 5, 6, 7, 11, 12, 15, 19, 21, 24, 26; article 4, sections 4; 9, subdivision 2; 
3.38 	article 5, section 30, subdivisions 2, 3, 5; article 6, section 13, subdivisions 2, 3, 6, 
3.39 	7; article 7, section 7, subdivisions 2, 3, 4; article 9, section 8, subdivisions 5, 6, 
3.40 	7, 9; article 10, section 3, subdivisions 2, 6, 7; article 11, section 3, subdivisions 
3.41 	2, 3; article 12, section 4, subdivision 2; Laws 2015, First Special Session chapter 
3.42 	4, article 1, sections 2, subdivisions 2, 4; 5; article 3, section 3, subdivisions 2, 
3.43 	5; article 4, section 131; proposing coding for new law in Minnesota Statutes, 
3.44 	chapters 17; 41A; 62D; 84D; 86B; 116J; 116L; 119A; 120B; 121A; 123B; 124D; 
3.45 	136A; 136F; 144; 145; 216B; 240A; 254B; 260C; 260D; 290; 325E; 462A; 518A; 
3.46 	609; proposing coding for new law as Minnesota Statutes, chapters 147F; 153B; 
3.47 	repealing Minnesota Statutes 2014, sections 116P.13; 122A.413, subdivision 
3.48 	3; 122A.43, subdivision 6; 123B.60, subdivision 2; 123B.79, subdivisions 2, 
3.49 	6; 149A.92, subdivision 11; 154.03; 154.06; 154.11, subdivision 2; 154.12; 
3.50 	216B.1612; 216C.39; 256B.059, subdivision 1a; 256L.04, subdivisions 2a, 8; 
3.51 	256L.22; 256L.24; 256L.26; 256L.28; Minnesota Statutes 2015 Supplement, 
3.52 	section 122A.413, subdivisions 1, 2; Special Laws 1891, chapter 57, chapter XII, 
3.53 	section 5; Laws 2015, First Special Session chapter 4, article 2, section 81.
3.54 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

4.1 	ARTICLE 1
4.2 	HIGHER EDUCATION

4.3	Section 1. APPROPRIATIONS.
 	
4.4 	The sums shown in the columns marked "Appropriations" are added to the 
4.5 	appropriations in Laws 2015, chapter 69, article 1, unless otherwise specified, to the 
4.6 	agencies and for the purposes specified in this article. The appropriations are from the 
4.7 	general fund, or another named fund, and are available for the fiscal years indicated 
4.8 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
4.9 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
4.10 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
4.11 	year 2017. "The biennium" is fiscal years 2016 and 2017.

4.12				APPROPRIATIONS
	
4.13				Available for the Year
	
4.14				Ending June 30
	
4.15					2016
		2017

4.16
4.17	Sec. 2. MINNESOTA OFFICE OF HIGHER 
EDUCATION

4.18	Subdivision 1.Total Appropriations
 	$
	-0-
	$
	3,210,000
	
4.19 	The amounts that may be spent for each 
4.20 	purpose are specified in the following 
4.21 	subdivisions.

4.22
4.23	Subd. 2.Equity in Postsecondary Education 
Grants
 		-0-
		500,000
	
4.24 	For equity in postsecondary attainment 
4.25 	grants under section 31. This appropriation 
4.26 	is available until June 30, 2020. Of this 
4.27 	appropriation, $25,000 may be used for 
4.28 	administration expenses to administer 
4.29 	the grant program. This is a onetime 
4.30 	appropriation.

4.31	Subd. 3.State Grant
 		-0-
		2,000,000
	
4.32 	For the state grant program under Minnesota 
4.33 	Statutes, section 136A.121. This is a onetime 
4.34 	appropriation.

5.1
5.2	Subd. 4.Addiction Medicine Graduate 
Fellowship Program
 		-0-
		210,000
	
5.3 	For establishing a grant program used to 
5.4 	support up to four physicians who are enrolled 
5.5 	each year in an addiction medicine fellowship 
5.6 	program. A grant recipient must be enrolled 
5.7 	in a program that trains fellows in diagnostic 
5.8 	interviewing, motivational interviewing, 
5.9 	addiction counseling, recognition and care 
5.10 	of common acute withdrawal syndromes 
5.11 	and complications, pharmacotherapies 
5.12 	of addictive disorders, epidemiology and 
5.13 	pathophysiology of addiction, addictive 
5.14 	disorders in special populations, secondary 
5.15 	interventions, use of screening and diagnostic 
5.16 	instruments, inpatient care, and working 
5.17 	within a multidisciplinary team, and prepares 
5.18 	doctors to practice addiction medicine in 
5.19 	rural and underserved areas of the state. The 
5.20 	base for this program is $210,000 in fiscal 
5.21 	year 2018 and $0 in fiscal year 2019.

5.22
5.23	Subd. 5.Student and Employer Connection 
Information System
 		-0-
		500,000
	
5.24 	For a grant to the Saint Paul Foundation 
5.25 	for the creation of a web-based job and 
5.26 	intern-seeking software tool that blind 
5.27 	matches the needs of employers located 
5.28 	in Minnesota with the individual profiles 
5.29 	of high school seniors and postsecondary 
5.30 	students attending Minnesota high schools 
5.31 	and postsecondary institutions. No more 
5.32 	than three percent of this appropriation may 
5.33 	be used for administrative expenses of the 
5.34 	foundation. The foundation must report by 
5.35 	January 15, 2017, on activities under this 
5.36 	subdivision to the chairs and ranking minority 
6.1 	members of the legislative committees with 
6.2 	jurisdiction over higher education finance. 
6.3 	The base for this appropriation is $405,000 
6.4 	in fiscal year 2018.

6.5
6.6
6.7	Sec. 3. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

6.8	Subdivision 1.Total Appropriations
 	$
	-0-
	$
	790,000
	
6.9 	The amounts that may be spent for each 
6.10 	purpose are specified in the following 
6.11 	subdivisions.

6.12
6.13	Subd. 2. Operating Support and Protecting 
Affordability
 		-0-
		570,000

6.14	Subd. 3.MnSCU Open Textbooks
 		-0-
		100,000
	
6.15 	(a) For programs on system campuses 
6.16 	that promote adoption of open textbooks. 
6.17 	Programs must focus on the review, creation, 
6.18 	and promotion of new or existing open 
6.19 	textbooks and on saving money for students 
6.20 	while meeting the academic needs of faculty. 
6.21 	This is a onetime appropriation.
6.22 	(b) By January 15, 2017, the board shall 
6.23 	report to the chairs and ranking minority 
6.24 	members of the legislative committees with 
6.25 	jurisdiction over higher education regarding 
6.26 	the progress of the pilot programs. The 
6.27 	report shall include a summary of each pilot 
6.28 	program and the total savings expected for 
6.29 	students as a result of the programs.

6.30	Subd. 4.MnSCU Open Textbook Library
 		-0-
		100,000
	
6.31 	To expand and promote the open textbook 
6.32 	library to faculty across the state. This is a 
6.33 	onetime appropriation.

6.34	Subd. 5.Cook County Higher Education Board
 		-0-
		20,000
	
7.1 	For transfer to the Cook County Higher 
7.2 	Education Board to provide educational 
7.3 	programming and academic support services 
7.4 	to remote regions in northeastern Minnesota. 
7.5 	This appropriation is in addition to other 
7.6 	funds previously appropriated for transfer to 
7.7 	the board.

7.8
7.9	Sec. 4. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

7.10	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	900,000
	
7.11 	The amounts that may be spent for each 
7.12 	purpose are specified in the following 
7.13 	subdivisions.

7.14	Subd. 2.Health Training Restoration
 				800,000
	
7.15 	This appropriation must be used to support 
7.16 	all of the following:
7.17 	(1) faculty physicians who teach at eight 
7.18 	residency program sites, including medical 
7.19 	resident and student training programs in the 
7.20 	Department of Family Medicine; 
7.21 	(2) the Mobile Dental Clinic; and
7.22 	(3) expansion of geriatric education and 
7.23 	family programs.

7.24
7.25	Subd. 3.Rochester Campus, Collegiate 
Recovery Program
 		-0-
		100,000
	
7.26 	(a) To design and implement a collegiate 
7.27 	recovery program at its Rochester campus. 
7.28 	This is a onetime appropriation and is 
7.29 	available until June 30, 2019.
7.30 	(b) The purpose of the collegiate recovery 
7.31 	program is to provide structured support 
7.32 	for students in recovery from alcohol, 
7.33 	chemical, or other addictive behaviors. 
7.34 	Program activities may include, but are not 
8.1 	limited to, specialized professional support 
8.2 	through academic, career, and financial 
8.3 	advising; establishment of on-campus 
8.4 	or residential peer support communities; 
8.5 	and opportunities for personal growth 
8.6 	through leadership development and other 
8.7 	community engagement activities.
8.8 	(c) No later than January 15, 2020, the 
8.9 	Board of Regents must submit a report to 
8.10 	the chairs and ranking minority members of 
8.11 	the legislative committees with jurisdiction 
8.12 	over higher education finance and policy on 
8.13 	campus recovery program outcomes. Based 
8.14 	on available data, the report must describe, 
8.15 	in summary form, the number of students 
8.16 	participating in the program and the success 
8.17 	rate of participants, including retention and 
8.18 	graduation rates, and long-term recovery and 
8.19 	relapse rates.

8.20
8.21
8.22	Sec. 5. OFFICE OF OMBUDSMAN 
FOR MENTAL HEALTH AND 
DEVELOPMENTAL DISABILITIES
 	$
	-0-
	$
	100,000
	
8.23 	For the duties of the office related to clinical 
8.24 	drug trials at the Department of Psychiatry at 
8.25 	the University of Minnesota.

8.26 	Sec. 6. MNSCU TWO-YEAR COLLEGE PROGRAM; ADMINISTRATIVE 
8.27 	COSTS.
 8.28 	The appropriation made by Laws 2015, chapter 69, article 1, section 3, subdivision 
8.29 	18, paragraph (c), for fiscal year 2017 for information technology and administrative costs 
8.30 	is available on the effective date of this section and until June 30, 2017.

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

8.32 	Sec. 7. [136A.0412] ACCEPTANCE OF PRIVATE FUNDS; APPROPRIATION.
9.1 	The commissioner may accept donations, grants, bequests, and other gifts of money 
9.2 	to carry out the purposes of section 136A.01. Donations, nonfederal grants, bequests, or 
9.3 	other gifts of money accepted by the commissioner must be deposited in an account in 
9.4 	the special revenue fund and is appropriated to the commissioner for the purpose for 
9.5 	which it was given.

9.6 	Sec. 8. Minnesota Statutes 2014, section 136A.101, subdivision 5a, is amended to read:
9.7 		Subd. 5a.Assigned family responsibility. "Assigned family responsibility" means 
9.8 	the amount of a family's contribution to a student's cost of attendance, as determined by a 
9.9 	federal need analysis. For dependent students, the assigned family responsibility is 96
9.10 	94 percent of the parental contribution. For independent students with dependents other 
9.11 	than a spouse, the assigned family responsibility is 86 percent of the student contribution. 
9.12 	For independent students without dependents other than a spouse, the assigned family 
9.13 	responsibility is 50 percent of the student contribution.

9.14 	Sec. 9. Minnesota Statutes 2014, section 136A.101, subdivision 10, is amended to read:
9.15 		Subd. 10.Satisfactory academic progress. "Satisfactory academic progress" 
9.16 	means satisfactory academic progress as defined under Code of Federal Regulations, title 
9.17 	34, sections 668.16(e), 668.32(f), and 668.34, except that a student with an intellectual 
9.18 	disability as defined in Code of Federal Regulations, title 34, section 668.231, enrolled 
9.19 	in an approved comprehensive transition and postsecondary program under that section 
9.20 	is subject to the institution's published satisfactory academic process standards for that 
9.21 	program as approved by the Office of Higher Education.

9.22 	Sec. 10. Minnesota Statutes 2015 Supplement, section 136A.121, subdivision 7a, 
9.23 	is amended to read:
9.24 		Subd. 7a.Surplus appropriation. If the amount appropriated is determined by the 
9.25 	office to be more than sufficient to fund projected grant demand in the second year of the 
9.26 	biennium, the office may increase the living and miscellaneous expense allowance or the 
9.27 	tuition and fee maximums in the second year of the biennium by up to an amount that 
9.28 	retains sufficient appropriations to fund the projected grant demand. The adjustment may 
9.29 	be made one or more times. In making the determination that there are more than sufficient 
9.30 	funds, the office shall balance the need for sufficient resources to meet the projected 
9.31 	demand for grants with the goal of fully allocating the appropriation for state grants. An 
9.32 	increase in the living and miscellaneous expense allowance under this subdivision does 
9.33 	not carry forward into a subsequent biennium.

10.1 	Sec. 11. Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 2, 
10.2 	is amended to read:
10.3 		Subd. 2.Eligible students. (a) An applicant is eligible for a child care grant if 
10.4 	the applicant:
10.5 	(1) is a resident of the state of Minnesota or the applicant's spouse is a resident 
10.6 	of the state of Minnesota;
10.7 	(2) has a child 12 years of age or younger, or 14 years of age or younger who is 
10.8 	disabled as defined in section 125A.02, and who is receiving or will receive care on a 
10.9 	regular basis from a licensed or legal, nonlicensed caregiver;
10.10 	(3) is income eligible as determined by the office's policies and rules, but is not a 
10.11 	recipient of assistance from the Minnesota family investment program;
10.12 	(4) either has not earned a baccalaureate degree and has been enrolled full time less 
10.13 	than eight semesters or the equivalent, or has earned a baccalaureate degree and has been 
10.14 	enrolled full time less than eight semesters or the equivalent in a graduate or professional 
10.15 	degree program;
10.16 	(5) is pursuing a nonsectarian program or course of study that applies to an 
10.17 	undergraduate, graduate, or professional degree, diploma, or certificate;
10.18 	(6) is enrolled in at least half time six credits in an undergraduate program or one 
10.19 	credit in a graduate or professional program in an eligible institution; and
10.20 	(7) is in good academic standing and making satisfactory academic progress.
10.21 	(b) A student who withdraws from enrollment for active military service after 
10.22 	December 31, 2002, because the student was ordered to active military service as defined 
10.23 	in section 190.05, subdivision 5b or 5c, or for a major illness, while under the care of a 
10.24 	medical professional, that substantially limits the student's ability to complete the term 
10.25 	is entitled to an additional semester or the equivalent of grant eligibility and will be 
10.26 	considered to be in continuing enrollment status upon return.

10.27 	Sec. 12. Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 4, 
10.28 	is amended to read:
10.29 		Subd. 4.Amount and length of grants. (a) The amount of a child care grant 
10.30 	must be based on:
10.31 	(1) the income of the applicant and the applicant's spouse;
10.32 	(2) the number in the applicant's family, as defined by the office; and
10.33 	(3) the number of eligible children in the applicant's family.
10.34 	(b) The maximum award to the applicant shall be $2,800 for each eligible child per 
10.35 	academic year, except that the campus financial aid officer may apply to the office for 
11.1 	approval to increase grants by up to ten percent to compensate for higher market charges 
11.2 	for infant care in a community. The office shall develop policies to determine community 
11.3 	market costs and review institutional requests for compensatory grant increases to ensure 
11.4 	need and equal treatment. The office shall prepare a chart to show the amount of a grant 
11.5 	that will be awarded per child based on the factors in this subdivision. The chart shall 
11.6 	include a range of income and family size.
11.7 	(c) Applicants with family incomes at or below a percentage of the federal poverty 
11.8 	level, as determined by the commissioner, will qualify for the maximum award. The 
11.9 	commissioner shall attempt to set the percentage at a level estimated to fully expend the 
11.10 	available appropriation for child care grants. Applicants with family incomes exceeding 
11.11 	that threshold will receive the maximum award minus ten percent of their income 
11.12 	exceeding that threshold. If the result is less than zero, the grant is zero.
11.13 	(d) The academic year award amount must be disbursed by academic term using the 
11.14 	following formula:
11.15 	(1) the academic year amount described in paragraph (b);
11.16 	(2) divided by the number of terms in the academic year;
11.17 	(3) divided by 15 for undergraduate students and six for graduate and professional 
11.18 	students; and
11.19 	(4) multiplied by the number of credits for which the student is enrolled that 
11.20 	academic term, up to 15 credits for undergraduate students and six for graduate and 
11.21 	professional students.
11.22 	(e) Payments shall be made each academic term to the student or to the child care 
11.23 	provider, as determined by the institution. Institutions may make payments more than 
11.24 	once within the academic term.

11.25 	Sec. 13. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 4, 
11.26 	is amended to read:
11.27 		Subd. 4.Application for loan forgiveness. Each applicant for loan forgiveness, 
11.28 	according to rules adopted by the commissioner, shall:
11.29 	(1) apply for teacher shortage loan forgiveness and promptly submit any additional 
11.30 	information required by the commissioner; and
11.31 	(2) annually reapply for up to five consecutive school years and submit information 
11.32 	the commissioner requires to determine the applicant's continued eligibility for loan 
11.33 	forgiveness; and
11.34 	(3) (2) submit to the commissioner a completed affidavit, prescribed by the 
11.35 	commissioner, affirming the teacher is teaching in: (i) a licensure field and in identified by 
12.1 	the commissioner as experiencing a teacher shortage; or (ii) an economic development 
12.2 	region identified by the commissioner as experiencing a teacher shortage.

12.3 	Sec. 14. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 5, 
12.4 	is amended to read:
12.5 		Subd. 5.Amount of loan forgiveness. (a) To the extent funding is available, the 
12.6 	annual amount of teacher shortage loan forgiveness for an approved applicant shall not 
12.7 	exceed $1,000 or the cumulative balance of the applicant's qualified educational loans, 
12.8 	including principal and interest, whichever amount is less.
12.9 	(b) Recipients must secure their own qualified educational loans. Teachers who 
12.10 	graduate from an approved teacher preparation program or teachers who add a licensure 
12.11 	field, consistent with the teacher shortage requirements of this section, are eligible to 
12.12 	apply for the loan forgiveness program.
12.13 	(c) No teacher shall receive more than five annual awards.

12.14 	Sec. 15. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 6, 
12.15 	is amended to read:
12.16 		Subd. 6.Disbursement. (a) The commissioner must make annual disbursements 
12.17 	directly to the participant of the amount for which a participant is eligible, for each year 
12.18 	that a participant is eligible.
12.19 	(b) Within 60 days of receipt of athe disbursement date, the participant must provide 
12.20 	the commissioner with verification that the full amount of loan repayment disbursement 
12.21 	has been applied toward the designated loans. A participant that previously received 
12.22 	funds under this section but has not provided the commissioner with such verification 
12.23 	is not eligible to receive additional funds.

12.24 	Sec. 16. [136A.1792] PROMOTION OF FEDERAL PUBLIC SERVICE LOAN 
12.25 	FORGIVENESS PROGRAMS.
12.26 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
12.27 	have the meanings given.
12.28 	(b) "Employer" means an organization, agency, or entity that is a public service 
12.29 	organization under Code of Federal Regulations, title 34, part 685, section 219, provided 
12.30 	that the following are not employers:
12.31 	(1) a federal or tribal government organization, agency, or entity; and
12.32 	(2) a tribal college or university.
13.1 	(c) "Employment certification form" means the form used by the United States 
13.2 	Department of Education to certify an individual's employment at a public service 
13.3 	organization for the purposes of the federal public service loan forgiveness program.
13.4 	(d) "Federal loan forgiveness program" means a loan forgiveness program offered 
13.5 	under Code of Federal Regulations, title 34, part 685.
13.6 	(e) "Public service loan forgiveness program" means the loan forgiveness program 
13.7 	under Code of Federal Regulations, title 34, part 685, section 219.
13.8 	(f) "Public service organization" means a public service organization under Code of 
13.9 	Federal Regulations, title 34, part 685, section 219.
13.10 		Subd. 2.Promotion of federal public service loan forgiveness programs. (a) The 
13.11 	commissioner must develop and distribute informational materials designed to increase 
13.12 	awareness of federal public service loan forgiveness programs among Minnesota residents 
13.13 	who are eligible for those programs. At a minimum, the commissioner must develop and 
13.14 	distribute informational materials that public service organizations may use to promote 
13.15 	awareness of the federal public service loan forgiveness program, including:
13.16 	(1) a one-page letter addressed to individuals who may be eligible for the public 
13.17 	service loan forgiveness program that briefly summarizes the program, provides 
13.18 	information on what an eligible individual must do in order to participate, and recommends 
13.19 	that they contact their student loan servicer or servicers for additional information;
13.20 	(2) a detailed fact sheet describing the public service loan forgiveness program; and
13.21 	(3) a document containing answers to frequently asked questions about the public 
13.22 	service loan forgiveness program.
13.23 	(b) In place of developing and publishing an informational document required under 
13.24 	paragraph (a), the commissioner may distribute a document published by a federal agency 
13.25 	that meets the requirements of paragraph (a).
13.26 		Subd. 3.Publication of informational materials. The commissioner must make 
13.27 	the informational materials required under subdivision 2 available on the office's Web 
13.28 	site and must verify each biennium that the informational materials contain current 
13.29 	information. The commissioner must update and correct any informational materials that 
13.30 	the commissioner finds inaccurate or outdated.
13.31 		Subd. 4.Employer information. (a) An employer must provide an employee with 
13.32 	information about the employee's potential eligibility for the federal public service loan 
13.33 	forgiveness program. An employer must annually provide to each employee in written or 
13.34 	electronic form the one-page letter, fact sheet, and frequently asked questions required 
13.35 	under subdivision 2. In addition, an employer must provide a newly hired employee with 
13.36 	that information within two weeks of the employee's first day of employment.
14.1 	(b) At an employee's request, an employer must provide the employee with a copy 
14.2 	of the employment certification form.

14.3 	EFFECTIVE DATE. Subdivision 4 is effective January 1, 2017.

14.4 	Sec. 17. [136A.1793] PROMOTION OF TEACHER LOAN FORGIVENESS 
14.5 	PROGRAMS.
14.6 	The commissioner shall provide information to public and private teacher education 
14.7 	programs concerning public and private student loan programs that provide for full or 
14.8 	partial repayment forgiveness. Teacher education programs must provide the information 
14.9 	furnished by the commissioner to their teacher education students.

14.10 	Sec. 18. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by 
14.11 	adding a subdivision to read:
14.12 		Subd. 10.Dual training account. A dual training account is created in the special 
14.13 	revenue fund in the state treasury. The commissioner shall deposit into the account 
14.14 	appropriations made for the purposes of this section. Money in the account is appropriated 
14.15 	to the commissioner for the purposes for which it was appropriated.

14.16 	Sec. 19. Minnesota Statutes 2015 Supplement, section 136A.246, is amended by 
14.17 	adding a subdivision to read:
14.18 		Subd. 11.Administration expenses. The commissioner may expend up to five 
14.19 	percent of the appropriation made for the purposes of this section for administration 
14.20 	of this section.

14.21 	Sec. 20. Minnesota Statutes 2015 Supplement, section 136A.87, is amended to read:
14.22 	136A.87 PLANNING INFORMATION FOR POSTSECONDARY 
14.23 	EDUCATION.
14.24 	(a) The office shall make available to all residents beginning in 7th grade through 
14.25 	adulthood information about planning and preparing for postsecondary opportunities. 
14.26 	Information must be provided to all 7th grade students and their parents annually 
14.27 	by September 30 about planning for their postsecondary education. The office may 
14.28 	also provide information to high school students and their parents, to adults, and to 
14.29 	out-of-school youth.
14.30 	(b) The office shall gather and share information with students and parents about 
14.31 	the dual credit acceptance policies of each Minnesota public and private college and 
15.1 	university. The office shall gather and share information related to the acceptance policies 
15.2 	for concurrent enrollment courses, postsecondary enrollment options courses, advanced 
15.3 	placement courses, and international baccalaureate courses. This information must be 
15.4 	shared on the office's Web site and included in the information under paragraph (a).
15.5 	(c) The information provided under paragraph (a) may include the following:
15.6 	(1) the need to start planning early;
15.7 	(2) the availability of assistance in educational planning from educational institutions 
15.8 	and other organizations;
15.9 	(3) suggestions for studying effectively during high school;
15.10 	(4) high school courses necessary to be adequately prepared for postsecondary 
15.11 	education;
15.12 	(5) encouragement to involve parents actively in planning for all phases of education;
15.13 	(6) information about postsecondary education and training opportunities existing 
15.14 	in the state, their respective missions and expectations for students, their preparation 
15.15 	requirements, admission requirements, and student placement;
15.16 	(7) ways to evaluate and select postsecondary institutions;
15.17 	(8) the process of transferring credits among Minnesota postsecondary institutions 
15.18 	and systems;
15.19 	(9) the costs of postsecondary education and the availability of financial assistance 
15.20 	in meeting these costs, including specific information about the Minnesota Promise;
15.21 	(10) the interrelationship of assistance from student financial aid, public assistance, 
15.22 	and job training programs; and
15.23 	(11) financial planning for postsecondary education.

15.24 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
15.25 	later.

15.26 	Sec. 21. Minnesota Statutes 2015 Supplement, section 136F.302, subdivision 1, 
15.27 	is amended to read:
15.28 		Subdivision 1.ACT or SAT college ready score. (a) A state college or university 
15.29 	maymust not require an individual to take a remedial, noncredit course in a subject area if 
15.30 	the individual has received a college ready ACT or SAT score in that subject area.
15.31 	(b) When deciding if an individual is admitted to or if an individual may enroll in a 
15.32 	state college or university, the state college or university must consider the individual's 
15.33 	scores on the high school Minnesota Comprehensive Assessments, in addition to other 
15.34 	factors determined relevant by the college or university.

16.1 	Sec. 22. Minnesota Statutes 2014, section 245.92, is amended to read:
16.2 	245.92 OFFICE OF OMBUDSMAN; CREATION; QUALIFICATIONS; 
16.3 	FUNCTION.
16.4 	The ombudsman for persons receiving services or treatment for mental illness, 
16.5 	developmental disabilities, chemical dependency, or emotional disturbance shall promote 
16.6 	the highest attainable standards of treatment, competence, efficiency, and justice. The 
16.7 	ombudsman may gather information and data about decisions, acts, and other matters of an 
16.8 	agency, facility, or program, and shall monitor the treatment of individuals participating in 
16.9 	a University of Minnesota Department of Psychiatry clinical drug trial. The ombudsman 
16.10 	is appointed by the governor, serves in the unclassified service, and may be removed only 
16.11 	for just cause. The ombudsman must be selected without regard to political affiliation and 
16.12 	must be a person who has knowledge and experience concerning the treatment, needs, 
16.13 	and rights of clients, and who is highly competent and qualified. No person may serve as 
16.14 	ombudsman while holding another public office.

16.15 	Sec. 23. Minnesota Statutes 2014, section 245.94, is amended to read:
16.16 	245.94 POWERS OF OMBUDSMAN; REVIEWS AND EVALUATIONS; 
16.17 	RECOMMENDATIONS.
16.18 		Subdivision 1.Powers. (a) The ombudsman may prescribe the methods by which 
16.19 	complaints to the office are to be made, reviewed, and acted upon. The ombudsman may 
16.20 	not levy a complaint fee.
16.21 	(b) The ombudsman may mediate or advocate on behalf of a client.
16.22 	(c) The ombudsman may investigate the quality of services provided to clients and 
16.23 	determine the extent to which quality assurance mechanisms within state and county 
16.24 	government work to promote the health, safety, and welfare of clients, other than clients 
16.25 	in acute care facilities who are receiving services not paid for by public funds. The 
16.26 	ombudsman is a health oversight agency as defined in Code of Federal Regulations, 
16.27 	title 45, section 164.501.
16.28 	(d) At the request of a client, or upon receiving a complaint or other information 
16.29 	affording reasonable grounds to believe that the rights of a client who is not capable 
16.30 	of requesting assistance have been adversely affected, the ombudsman may gather 
16.31 	information and data about and analyze, on behalf of the client, the actions of an agency, 
16.32 	facility, or program.
16.33 	(e) The ombudsman may gather, on behalf of a client, records of an agency, facility, 
16.34 	or program, or records related to clinical drug trials from the University of Minnesota 
16.35 	Department of Psychiatry, if the records relate to a matter that is within the scope of the 
17.1 	ombudsman's authority. If the records are private and the client is capable of providing 
17.2 	consent, the ombudsman shall first obtain the client's consent. The ombudsman is 
17.3 	not required to obtain consent for access to private data on clients with developmental 
17.4 	disabilities. The ombudsman is not required to obtain consent for access to private data 
17.5 	on decedents who were receiving services for mental illness, developmental disabilities, 
17.6 	or emotional disturbance. All data collected, created, received, or maintained by the 
17.7 	ombudsman are governed by chapter 13 and other applicable law.
17.8 	(f) Notwithstanding any law to the contrary, the ombudsman may subpoena a person 
17.9 	to appear, give testimony, or produce documents or other evidence that the ombudsman 
17.10 	considers relevant to a matter under inquiry. The ombudsman may petition the appropriate 
17.11 	court in Ramsey County to enforce the subpoena. A witness who is at a hearing or is part 
17.12 	of an investigation possesses the same privileges that a witness possesses in the courts or 
17.13 	under the law of this state. Data obtained from a person under this paragraph are private 
17.14 	data as defined in section 13.02, subdivision 12.
17.15 	(g) The ombudsman may, at reasonable times in the course of conducting a review, 
17.16 	enter and view premises within the control of an agency, facility, or program.
17.17 	(h) The ombudsman may attend Department of Human Services Review Board 
17.18 	and Special Review Board proceedings; proceedings regarding the transfer of patients 
17.19 	or residents, as defined in section 246.50, subdivisions 4 and 4a, between institutions 
17.20 	operated by the Department of Human Services; and, subject to the consent of the affected 
17.21 	client, other proceedings affecting the rights of clients. The ombudsman is not required to 
17.22 	obtain consent to attend meetings or proceedings and have access to private data on clients 
17.23 	with developmental disabilities.
17.24 	(i) The ombudsman shall gather data of agencies, facilities, or programs classified 
17.25 	as private or confidential as defined in section 13.02, subdivisions 3 and 12, regarding 
17.26 	services provided to clients with developmental disabilities.
17.27 	(j) To avoid duplication and preserve evidence, the ombudsman shall inform 
17.28 	relevant licensing or regulatory officials before undertaking a review of an action of 
17.29 	the facility or program.
17.30 	(k) The ombudsman shall monitor the treatment of individuals participating in 
17.31 	a University of Minnesota Department of Psychiatry clinical drug trial and ensure that 
17.32 	all protections for human subjects required by federal law and the Institutional Review 
17.33 	Board are provided.
17.34 	(l) Sections 245.91 to 245.97 are in addition to other provisions of law under which 
17.35 	any other remedy or right is provided.
18.1 		Subd. 2.Matters appropriate for review. (a) In selecting matters for review by the 
18.2 	office, the ombudsman shall give particular attention to unusual deaths or injuries of a 
18.3 	client or reports of emergency use of manual restraint as identified in section 245D.061, 
18.4 	served by an agency, facility, or program, or actions of an agency, facility, or program that:
18.5 	(1) may be contrary to law or rule;
18.6 	(2) may be unreasonable, unfair, oppressive, or inconsistent with a policy or order of 
18.7 	an agency, facility, or program;
18.8 	(3) may be mistaken in law or arbitrary in the ascertainment of facts;
18.9 	(4) may be unclear or inadequately explained, when reasons should have been 
18.10 	revealed;
18.11 	(5) may result in abuse or neglect of a person receiving treatment;
18.12 	(6) may disregard the rights of a client or other individual served by an agency 
18.13 	or facility;
18.14 	(7) may impede or promote independence, community integration, and productivity 
18.15 	for clients; or
18.16 	(8) may impede or improve the monitoring or evaluation of services provided to 
18.17 	clients.
18.18 	(b) The ombudsman shall, in selecting matters for review and in the course of the 
18.19 	review, avoid duplicating other investigations or regulatory efforts.
18.20 	(c) The ombudsman shall give particular attention to the death or unusual injury of 
18.21 	any individual who is participating in a University of Minnesota Department of Psychiatry 
18.22 	clinical drug trial.
18.23 		Subd. 2a.Mandatory reporting. Within 24 hours after a client suffers death or 
18.24 	serious injury, the agency, facility, or program director, or lead investigator of a clinical 
18.25 	drug trial at the University of Minnesota Department of Psychiatry shall notify the 
18.26 	ombudsman of the death or serious injury. The emergency use of manual restraint must 
18.27 	be reported to the ombudsman as required under section 245D.061, subdivision 8. The 
18.28 	ombudsman is authorized to receive identifying information about a deceased client 
18.29 	according to Code of Federal Regulations, title 42, section 2.15, paragraph (b).
18.30 		Subd. 3.Complaints. (a) The ombudsman may receive a complaint from any 
18.31 	source concerning an action of an agency, facility, or program. After completing a review, 
18.32 	the ombudsman shall inform the complainant and the agency, facility, or program. 
18.33 	No client may be punished nor may the general condition of the client's treatment be 
18.34 	unfavorably altered as a result of an investigation, a complaint by the client, or by another 
18.35 	person on the client's behalf. An agency, facility, or program shall not retaliate or take 
18.36 	adverse action against a client or other person, who in good faith makes a complaint or 
19.1 	assists in an investigation. The ombudsman may classify as confidential, the identity of a 
19.2 	complainant, upon request of the complainant.
19.3 	(b) The ombudsman shall receive a complaint from any source concerning an 
19.4 	action or inaction of the University of Minnesota Department of Psychiatry related 
19.5 	to an individual who is enrolled in a department-approved clinical drug trial. No 
19.6 	individual participating in the trial may be punished, nor may the general condition of 
19.7 	the individual's treatment be unfavorably altered, as a result of an investigation or a 
19.8 	complaint by the individual or the individual's advocate. The university shall not retaliate 
19.9 	or take adverse action against any person who in good faith makes a complaint or assists 
19.10 	in an investigation. The ombudsman may classify the identity of the complainant as 
19.11 	confidential, upon request of the complainant.
19.12 		Subd. 4.Recommendations to agency. (a) If, after reviewing a complaint or 
19.13 	conducting an investigation and considering the response of an agency, facility, or 
19.14 	program and any other pertinent material, the ombudsman determines that the complaint 
19.15 	has merit or the investigation reveals a problem, the ombudsman may recommend that 
19.16 	the agency, facility, or program:
19.17 	(1) consider the matter further;
19.18 	(2) modify or cancel its actions;
19.19 	(3) alter a rule, order, or internal policy;
19.20 	(4) explain more fully the action in question; or
19.21 	(5) take other action.
19.22 	(b) At the ombudsman's request, the agency, facility, or program shall, within a 
19.23 	reasonable time, inform the ombudsman about the action taken on the recommendation 
19.24 	or the reasons for not complying with it.
19.25 		Subd. 5.Recommendations to University of Minnesota. If, after reviewing a 
19.26 	complaint or conducting an investigation and considering the response of the clinical drug 
19.27 	trial's primary investigator or the Department of Psychiatry, the ombudsman determines 
19.28 	that the complaint has merit or the investigation reveals noncompliance with the federal 
19.29 	protection of human subjects requirements or the requirements of the Institutional Review 
19.30 	Board, the ombudsman shall recommend that the Board of Regents of the University of 
19.31 	Minnesota take corrective action to remedy the violations.

19.32 	Sec. 24. Minnesota Statutes 2014, section 245.95, subdivision 1, is amended to read:
19.33 		Subdivision 1.Specific reports. The ombudsman may send conclusions and 
19.34 	suggestions concerning any matter reviewed to the governor. Before making public a 
19.35 	conclusion or recommendation that expressly or implicitly criticizes an agency, facility, 
20.1 	program, or any person, the ombudsman shall consult with the governor and the agency, 
20.2 	facility, program, or person concerning the conclusion or recommendation. When sending 
20.3 	a conclusion or recommendation to the governor that is adverse to an agency, facility, 
20.4 	program, or any person, the ombudsman shall include any statement of reasonable length 
20.5 	made by that agency, facility, program, or person in defense or mitigation of the office's 
20.6 	conclusion or recommendation. For purposes of this subdivision, "agency, facility, 
20.7 	program, or any person" includes the University of Minnesota Department of Psychiatry 
20.8 	and its employees working in clinical drug trials.

20.9 	Sec. 25. Minnesota Statutes 2014, section 245.97, subdivision 5, is amended to read:
20.10 		Subd. 5.Medical Review Subcommittee. At least five members of the committee, 
20.11 	including at least three physicians, one of whom is a psychiatrist, must be designated by 
20.12 	the governor to serve as a Medical Review Subcommittee. Terms of service, vacancies, 
20.13 	and compensation are governed by subdivision 2. The governor shall designate one of 
20.14 	the members to serve as chair of the subcommittee. The Medical Review Subcommittee 
20.15 	may have access to private and confidential data collected or created by the ombudsman 
20.16 	that are necessary to fulfill the duties of the Medical Review Subcommittee under this 
20.17 	section and may:
20.18 	(1) make a preliminary determination of whether the death of a client that has been 
20.19 	brought to its attention is unusual or reasonably appears to have resulted from causes other 
20.20 	than natural causes and warrants investigation;
20.21 	(2) review the causes of and circumstances surrounding the death;
20.22 	(3) request the county coroner or medical examiner to conduct an autopsy;
20.23 	(4) assist an agency in its investigations of unusual deaths and deaths from causes 
20.24 	other than natural causes; and
20.25 	(5) make a preliminary determination of whether the death of a participant in a 
20.26 	clinical drug trial conducted by the University of Minnesota Department of Psychiatry 
20.27 	appears to have resulted from causes other than natural causes and warrants investigation 
20.28 	and reporting as required by federal laws on the protection of human subjects; and
20.29 	(6) submit a report regarding the death of a client to the committee, the ombudsman, 
20.30 	the client's next-of-kin, and the facility where the death occurred and, where appropriate, 
20.31 	make recommendations to prevent recurrence of similar deaths to the head of each affected 
20.32 	agency or facility, or the Board of Regents of the University of Minnesota.

20.33 	Sec. 26. Laws 2015, chapter 69, article 3, section 20, subdivision 15, is amended to read:
21.1 		Subd. 15.Reporting. (a) A college must report to the commissioner the following 
21.2 	information:
21.3 	(1) the number of grantees and their race, gender, and ethnicity;
21.4 	(2) grantee persistence and completion;
21.5 	(3) employment outcomes; and
21.6 	(4) other information requested by the commissioner.
21.7 	(b) The commissioner shall report annually by January 15, 2017, and January 15, 
21.8 	2018, to the chairs and ranking minority members of the legislative committees with 
21.9 	jurisdiction over higher education finance by college and in aggregate on the information 
21.10 	submitted to the commissioner under paragraph (a). The commissioner may include in the 
21.11 	report recommendations for changes in the grant program.

21.12 	Sec. 27. Laws 2015, chapter 69, article 3, section 24, subdivision 1, is amended to read:
21.13 		Subdivision 1.Pilot program created. The commissioner of the Office of Higher 
21.14 	Education shall make a grant to a nonprofit qualified debt counseling organization to 
21.15 	provide individual student loan debt repayment counseling to borrowers who are Minnesota 
21.16 	residents concerning loans obtained to attend a Minnesota postsecondary institution. The 
21.17 	counseling shall be provided to borrowers who are 30 to 60 days delinquent when they 
21.18 	are referred to or otherwise identified by the organization as candidates for counseling. 
21.19 	The number of individuals receiving counseling may be limited to those capable of being 
21.20 	served with available appropriations for that purpose. A goal of the counseling program is 
21.21 	to provide two counseling sessions to at least 75 percent of borrowers receiving counseling.
21.22 	The purpose of the counseling is to assist borrowers to:
21.23 	(1) understand their loan and repayment options; 
21.24 	(2) manage loan repayment; and
21.25 	(3) develop a workable budget based on the borrower's full financial situation 
21.26 	regarding income, expenses, and other debt.

21.27 	EFFECTIVE DATE. This section is effective the day following final enactment 
21.28 	and is retroactive to July 1, 2015.

21.29 	Sec. 28. STATE GRANT TUITION CAPS.
 21.30 	For the purposes of the state grant program under Minnesota Statutes, section 
21.31 	136A.121, for the fiscal year ending June 30, 2017, the tuition maximum is $5,736 
21.32 	for students in two-year programs and the tuition maximum is $14,186 for students in 
21.33 	four-year programs.

22.1 	Sec. 29. MNSCU PROGRAM FOR STUDENTS WITH INTELLECTUAL AND 
22.2 	DEVELOPMENTAL DISABILITIES; PLAN REQUIRED.
 22.3 		Subdivision 1.Development of plan required. The Board of Trustees of the 
22.4 	Minnesota State Colleges and Universities must develop a plan for offering an academic 
22.5 	program for students with intellectual and developmental disabilities, consistent with the 
22.6 	principles established in subdivisions 2 to 4. 
22.7 		Subd. 2.Program locations. The plan developed must assume the program will be 
22.8 	offered at up to four college or university campuses chosen based on (1) their ability to 
22.9 	offer a robust program using existing facilities and resources and (2) a goal to provide the 
22.10 	program in diverse geographic regions of the state.
22.11 		Subd. 3.Enrollment and admission. The plan developed must assume an 
22.12 	enrollment goal for each campus's program of at least ten incoming students per academic 
22.13 	year. The plan may allow for students to be admitted based on an application process 
22.14 	that includes an in-person interview; an independent assessment of an applicant's 
22.15 	interest, motivation, and likelihood of success in the program; and any other eligibility 
22.16 	requirements established by the board. Upon successful completion, a student must be 
22.17 	awarded a certificate, diploma, or other appropriate academic credential.
22.18 		Subd. 4.Curriculum and activities. (a) The plan developed must assume a 
22.19 	program that provides an inclusive, two-year full-time residential college experience 
22.20 	for students with intellectual and developmental disabilities. The required curriculum 
22.21 	must include core courses that develop life skills, financial literacy, and the ability to 
22.22 	live independently; rigorous academic work in a student's chosen field of study; and an 
22.23 	internship, apprenticeship, or other skills-based experience to prepare for meaningful 
22.24 	employment upon completion of the program.
22.25 	(b) In addition to academic requirements, the plan developed must allow 
22.26 	participating students the opportunity to engage fully in campus life. Program activities 
22.27 	must include but are not limited to (1) the establishment of on-campus mentoring and 
22.28 	peer support communities and (2) opportunities for personal growth through leadership 
22.29 	development and other community engagement activities.
22.30 	(c) A participating campus may tailor its program curriculum and activities to 
22.31 	highlight academic programs, student and community life experiences, and employment 
22.32 	opportunities unique to that campus or the region of the state where the campus is located.
22.33 		Subd. 5.Report to legislature. The board must submit a report on the plan required 
22.34 	to be developed by this section to the chairs and ranking minority members of the 
22.35 	committees of the legislature with jurisdiction over higher education finance and policy and 
22.36 	human services finance and policy no later than January 15, 2017. The report must describe 
23.1 	program plans, including strategies for recruitment of applicants, and strategies to address 
23.2 	anticipated program needs that cannot be filled using existing campus or system resources.

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

23.4 	Sec. 30. UNIVERSITY OF MINNESOTA AND MNSCU BUDGET 
23.5 	ALLOCATION REPORTS.
 23.6 	(a) The Board of Regents of the University of Minnesota shall report by February 
23.7 	1, 2017, to the chairs and ranking minority members of the legislative committees with 
23.8 	primary jurisdiction over higher education finance on the factors it considers when 
23.9 	allocating funds to system campuses. The report must specifically, without limitation, 
23.10 	address the following questions:
23.11 	(1) what circumstances would lead the university to adopt an alternate budget model 
23.12 	to the Resource Responsibility Center (RRC) model for a system campus;
23.13 	(2) what were the rationale and factors considered for the initial base budget 
23.14 	allocation to system campuses when the RRC was first established; and
23.15 	(3) what factors would lead the university to consider adjusting the initial base 
23.16 	allocation model.
23.17 	(b) The Board of Trustees of the Minnesota State Colleges and Universities shall 
23.18 	report by February 1, 2017, to the chairs and ranking minority members of the legislative 
23.19 	committees with primary jurisdiction over higher education finance on the factors it 
23.20 	considers when allocating state funds to colleges and universities. The report must 
23.21 	specifically, without limitations, address the following areas:
23.22 	(1) the design and methodology for the allocation of state funds to the colleges 
23.23 	and universities; and
23.24 	(2) the factors considered in the allocation process.

23.25 	Sec. 31. EQUITY IN EDUCATION AND JOB CONNECTION GRANT 
23.26 	PROGRAM.
 23.27 		Subdivision 1.Grants. (a) The commissioner of the Office of Higher Education 
23.28 	shall award grants to improve postsecondary attendance, completion, and retention and 
23.29 	the obtaining of well-paying jobs for which the postsecondary education provides training 
23.30 	by providing services to historically underrepresented college students. Grants must be 
23.31 	awarded to Minnesota state colleges and universities and private organization programs 
23.32 	that help the state reach the attainment goals under Minnesota Statutes, section 135A.012. 
23.33 	Programs must provide services targeted to make the improvements including, but not 
23.34 	limited to:
24.1 	(1) academic and nonacademic counseling or advising;
24.2 	(2) mentoring in education and career opportunities;
24.3 	(3) structured tutoring;
24.4 	(4) career awareness and exploration including internships and post graduation 
24.5 	job placements;
24.6 	(5) orientation to college life;
24.7 	(6) financial aid counseling;
24.8 	(7) academic instruction programs in core curricular areas of mathematics and 
24.9 	language arts;
24.10 	(8) supplemental instruction programs for college courses with high failure and 
24.11 	withdrawal rates; and
24.12 	(9) co-requisite college course models for delivery of academic support.
24.13 	(b) The office shall structure the grants for sustainability of programs funded by a 
24.14 	grant.
24.15 	(c) To the extent there are sufficient qualified applicants, approximately 50 percent 
24.16 	of grant dollars must be awarded to private organization programs.
24.17 	(d) A grant must not be made to a private organization that is a postsecondary 
24.18 	institution.
24.19 		Subd. 2.Application process. (a) The commissioner shall develop a grant 
24.20 	application process. The commissioner shall attempt to support projects in a manner that 
24.21 	ensures that eligible students throughout the state have access to program services.
24.22 	(b) The grant application must include, at a minimum, the following information:
24.23 	(1) a description of the characteristics of the students to be served reflective of the 
24.24 	need for services listed in subdivision 1;
24.25 	(2) a description of the services to be provided and a timeline for implementation 
24.26 	of the service activities;
24.27 	(3) a description of how the services provided will foster postsecondary retention 
24.28 	and completion;
24.29 	(4) a description of how the services will be evaluated to determine whether the 
24.30 	program goals were met;
24.31 	(5) the history of the applicant in achieving successful improvements using the 
24.32 	services for which a grant is sought;
24.33 	(6) the assumed cost per student of achieving successful outcomes;
24.34 	(7) the effect of the grant on assisting students to obtain well-paying jobs; 
24.35 	(8) the proposed grant match;
24.36 	(9) the organizational commitment to program sustainability; and
25.1 	(10) other information as identified by the commissioner.
25.2 	Grant recipients must specify both program and student outcome goals, and performance 
25.3 	measures for each goal.
25.4 		Subd. 3.Advisory committee. The commissioner may establish and convene an 
25.5 	advisory committee to assist the commissioner in reviewing applications and advise the 
25.6 	commissioner on grantees and grant amounts. The members of the committee may include 
25.7 	representatives of postsecondary institutions, organizations providing postsecondary 
25.8 	academic and career services, and others deemed appropriate by the commissioner.
25.9 		Subd. 4.Outcome report. Each grant recipient must annually submit a report to 
25.10 	the Office of Higher Education identifying its program and student goals and activities 
25.11 	implemented. A report must include, but not be limited to, information on:
25.12 	(1) number of students served;
25.13 	(2) course taking and grade point average of participating students;
25.14 	(3) persistence and retention rates of participating students; 
25.15 	(4) postsecondary graduation rates of participating students;
25.16 	(5) the number of students who required postsecondary academic remediation and 
25.17 	number of remedial courses for each of those students and in the aggregate; and
25.18 	(6) jobs and wage rates of students after postsecondary graduation.
25.19 	To the extent possible, the report must breakdown outcomes by Pell grant qualification, 
25.20 	race, and ethnicity.
25.21 		Subd. 5.Legislative report. By January 15 of each year through 2021, the office 
25.22 	shall submit a report to the chairs and ranking minority members of the committees in the 
25.23 	house of representatives and the senate with jurisdiction over higher education finance 
25.24 	regarding the grant recipients and their activities. The report shall include information 
25.25 	about the students served, the organizations providing services, program activities, 
25.26 	program goals and outcomes, and program revenue sources and funding levels.

25.27 	ARTICLE 2
25.28 	AGRICULTURE

25.29	Section 1. APPROPRIATIONS.
 	
25.30 	The sums shown in the columns marked "Appropriations" are added to the 
25.31 	appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the 
25.32 	agencies and for the purposes specified in this article. The appropriations are from the 
25.33 	general fund, or another named fund, and are available for the fiscal year indicated for 
25.34 	each purpose. The figures "2016" and "2017" used in this article mean that the addition 
26.1 	to the appropriations listed under them are available for the fiscal year ending June 30, 
26.2 	2016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second 
26.3 	year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day 
26.4 	following final enactment.

26.5				APPROPRIATIONS
	
26.6				Available for the Year
	
26.7				Ending June 30
	
26.8					2016
		2017

26.9	Sec. 2. DEPARTMENT OF AGRICULTURE
 	$
	-0-
	$
	4,433,000
	
26.10 	$250,000 the second year is for the tractor 
26.11 	rollover protection pilot program under 
26.12 	Minnesota Statutes, section 17.119. This is a 
26.13 	onetime appropriation.
26.14 	$250,000 the second year is to administer 
26.15 	the industrial hemp pilot program under 
26.16 	Minnesota Statutes, section 18K.09. This is 
26.17 	a onetime appropriation.
26.18 	$1,000,000 the second year is for grants 
26.19 	to the Board of Regents of the University 
26.20 	of Minnesota to fund the Forever Green 
26.21 	Agriculture Initiative and to protect the 
26.22 	state's natural resources while increasing 
26.23 	the efficiency, profitability, and productivity 
26.24 	of Minnesota farmers by incorporating 
26.25 	perennial and winter annual crops into 
26.26 	existing agricultural practices. This is a 
26.27 	onetime appropriation and is available until 
26.28 	June 30, 2019. The appropriation in Laws 
26.29 	2015, First Special Session chapter 2, article 
26.30 	2, section 3, paragraph (i), is available until 
26.31 	June 30, 2018.
26.32 	$600,000 the second year is for a grant 
26.33 	to the Board of Regents of the University 
26.34 	of Minnesota to develop, in consultation 
26.35 	with the commissioner of agriculture and 
27.1 	the Board of Animal Health, a software 
27.2 	tool or application through the Veterinary 
27.3 	Diagnostic Laboratory that empowers 
27.4 	veterinarians and producers to understand 
27.5 	the movement of unique pathogen strains in 
27.6 	livestock and poultry production systems, 
27.7 	monitor antibiotic resistance, and implement 
27.8 	effective biosecurity measures that promote 
27.9 	animal health and limit production losses. 
27.10 	The base for fiscal year 2020 is $0.
27.11 	In addition to the amounts appropriated in 
27.12 	Laws 2015, First Special Session chapter 4, 
27.13 	article 1, section 2, subdivision 4:
27.14 	(1) $450,000 the second year is appropriated 
27.15 	for transfer to the Board of Regents of the 
27.16 	University of Minnesota for the cultivated 
27.17 	wild rice breeding project at the North 
27.18 	Central Research and Outreach Center to 
27.19 	include a tenure track/research associate 
27.20 	plant breeder; and 
27.21 	(2) $350,000 the second year is appropriated 
27.22 	for transfer to the Board of Regents of the 
27.23 	University of Minnesota for potato breeding.
27.24 	$283,000 the second year is for a grant to 
27.25 	the Board of Regents of the University of 
27.26 	Minnesota to maintain and increase animal 
27.27 	disease testing capacity through the purchase 
27.28 	of Veterinary Diagnostic Laboratory 
27.29 	equipment. This is a onetime appropriation.
27.30 	$250,000 the second year is appropriated 
27.31 	for transfer to the good food access account 
27.32 	created under Minnesota Statutes, section 
27.33 	17.1017, subdivision 3. This is a onetime 
27.34 	appropriation and is available until June 30, 
27.35 	2019.
28.1 	$1,000,000 the second year is appropriated 
28.2 	for transfer to the agricultural emergency 
28.3 	account in the agricultural fund. This is a 
28.4 	onetime transfer.

28.5 	Sec. 3. [17.041] AGRICULTURAL EMERGENCY ACCOUNT; 
28.6 	APPROPRIATION.
28.7 		Subdivision 1.Establishment; appropriation. An agricultural emergency account 
28.8 	is established in the agricultural fund. Money in the account, including interest, is 
28.9 	appropriated to the commissioner for emergency response and preparedness activities 
28.10 	for agricultural emergencies affecting producers of livestock, poultry, crops, or other 
28.11 	agricultural products. Eligible uses include, but are not limited to, purchasing necessary 
28.12 	equipment and reimbursing costs incurred by local units of government that are not 
28.13 	eligible for reimbursement from other sources.
28.14 		Subd. 2.Transfer authorized. The commissioner may transfer money in the 
28.15 	account to the Board of Animal Health, other state agencies, or the University of 
28.16 	Minnesota for purposes of subdivision 1.
28.17 		Subd. 3.Annual report. No later than February 1 each year, the commissioner 
28.18 	must report activities and expenditures under this section to the legislative committees 
28.19 	and divisions with jurisdiction over agriculture finance.

28.20 	Sec. 4. [17.1017] GOOD FOOD ACCESS PROGRAM.
28.21 		Subdivision 1.Definitions. (a) For purposes of this section, unless the language 
28.22 	or context indicates that a different meaning is intended, the following terms have the 
28.23 	meanings given them.
28.24 	(b) "Account" means the good food access account established in subdivision 3.
28.25 	(c) "Commissioner" means the commissioner of agriculture.
28.26 	(d) "Economic or community development financial institution (ECDFI)" means 
28.27 	a lender, including but not limited to a community development financial institution 
28.28 	(CDFI), an economic development district (EDD), a political subdivision of the state, a 
28.29 	microenterprise firm, or a nonprofit community lending organization that has previous 
28.30 	experience lending to a food retailer, producer, or another healthy food enterprise in an 
28.31 	underserved community in a low-income or moderate-income area, as defined in this 
28.32 	section; has been in existence and operating prior to January 1, 2014; has demonstrated 
28.33 	the ability to raise matching capital and in-kind services to leverage appropriated money; 
28.34 	has the demonstrated ability to underwrite loans and grants; and has partnered previously 
29.1 	with nonprofit healthy food access, public health, or related governmental departments or 
29.2 	community organizations.
29.3 	(e) "Farmers' market" means an association of three or more persons who assemble 
29.4 	at a defined location that is open to the public for the purpose of selling directly to the 
29.5 	consumer the products of a farm or garden occupied and cultivated by the person selling 
29.6 	the product.
29.7 	(f) "Financing" means loans, including low-interest loans, zero-interest loans, 
29.8 	forgivable loans, and other types of financial assistance other than grants.
29.9 	(g) "Food hub" means a centrally located facility with a business management 
29.10 	structure that facilitates the aggregation, storage, processing, distribution, marketing, and 
29.11 	sale of locally or regionally produced food products, and which may include a small-scale 
29.12 	retail grocery operation.
29.13 	(h) "Good Food Access Program Advisory Committee" means the Good Food 
29.14 	Access Program Advisory Committee under section 17.1018.
29.15 	(i) "Grocery store" means a for-profit, not-for-profit, or cooperative self-service retail 
29.16 	establishment that sells primarily meat, fish, seafood, fruits, vegetables, dry groceries, 
29.17 	and dairy products and may also sell household products, sundries, and other products. 
29.18 	Grocery store includes a supermarket or a large-, mid-, or small-scale retail grocery 
29.19 	establishment and may include a mobile food market or a delivery service operation.
29.20 	(j) "Low-income area" means a census tract as reported in the most recently 
29.21 	completed decennial census published by the United States Bureau of the Census that has 
29.22 	a poverty rate of at least 20 percent or in which the median family income does not exceed 
29.23 	80 percent of the greater of the statewide or metropolitan median family income.
29.24 	(k) "Moderate-income area" means a census tract as reported in the most recently 
29.25 	completed decennial census published by the United States Bureau of the Census in which 
29.26 	the median family income is between 81 percent and 95 percent of the median family 
29.27 	income for that area.
29.28 	(l) "Mobile food market" means a self-contained for-profit, not-for-profit, or 
29.29 	cooperative retail grocery operation located in a movable new or renovated truck, bus, or 
29.30 	other vehicle that is used to store, prepare, display, and sell primarily meat, fish, seafood, 
29.31 	fruits, vegetables, dry groceries, and dairy products and may also be used to sell a nominal 
29.32 	supply of cooking utensils and equipment and other household products and sundries.
29.33 	(m) "Program" means the good food access program established in this section.
29.34 	(n) "Small food retailer" means a small-scale retail food outlet, other than a grocery 
29.35 	store as defined in this section. Small food retailer includes, but is not limited to, a corner 
30.1 	store, convenience store, farmers' market, mobile food market, and a retail food outlet 
30.2 	operated by an emergency food program or food hub.
30.3 	(o) "Technical assistance" means needs-based project assistance provided through 
30.4 	the program, including sustainability-focused individualized guidance, presentations, 
30.5 	workshops, trainings, printed materials, mentorship opportunities, peer-to-peer 
30.6 	opportunities, or other guidance and resources on relevant topics such as business 
30.7 	planning, sales projections, cash flow, succession planning, financing, fund-raising, 
30.8 	marketing, food preparation demonstrations, and workforce training.
30.9 	(p) "Underserved community" means a census tract that is federally designated 
30.10 	as a food desert by the United States Department of Agriculture, or a census tract in a 
30.11 	low-income or moderate-income area that includes a substantial subpopulation such as 
30.12 	the elderly or the disabled that has low supermarket access, regardless of distance, due 
30.13 	to lack of transportation.
30.14 		Subd. 2.Program established. (a) A good food access program is established within 
30.15 	the Department of Agriculture to increase the availability of and access to affordable, 
30.16 	nutritious, and culturally appropriate food, including fresh fruits and vegetables, for 
30.17 	underserved communities in low-income and moderate-income areas by providing financial 
30.18 	support and sustainable public-private projects to open, renovate, or expand the operations 
30.19 	of grocery stores and small food retailers; expanding access to credit and reducing barriers 
30.20 	to investment in underserved communities in low- and moderate-income areas; and to 
30.21 	provide technical assistance, primarily for small food retailers with demonstrated need, 
30.22 	to increase availability and sustainable sales of affordable, nutritious, and culturally 
30.23 	appropriate food, including fresh fruits and vegetables, to underserved communities in 
30.24 	low-income and moderate-income areas. The commissioner, in cooperation with public 
30.25 	and private partners, shall establish and implement the program as provided in this section.
30.26 	(b) The good food access program shall be comprised of state or private grants, loans, 
30.27 	or other types of financial and technical assistance for the establishment, construction, 
30.28 	expansion of operations, or renovation of grocery stores and small food retailers to increase 
30.29 	the availability of and access to affordable fresh produce and other nutritious, culturally 
30.30 	appropriate food to underserved communities in low-income and moderate-income areas.
30.31 		Subd. 3.Good food access account. A good food access account is established in 
30.32 	the agricultural fund. The account consists of money appropriated by the legislature to the 
30.33 	commissioner, as provided by law, and any other money donated, allotted, transferred, 
30.34 	or otherwise provided to the account. Money in the account, including interest, is 
30.35 	appropriated to the commissioner for the purposes of this section, and shall be used, to 
31.1 	the extent practicable, to leverage other forms of public and private financing or financial 
31.2 	assistance for the projects.
31.3 		Subd. 4.Program administration. (a) The commissioner shall be the administrator 
31.4 	of the account for auditing purposes and shall establish program requirements and a 
31.5 	competitive process for projects applying for financial and technical assistance.
31.6 	(b) The commissioner may receive money or other assets from any source, including 
31.7 	but not limited to philanthropic foundations and financial investors, for deposit into the 
31.8 	account.
31.9 	(c) Through issuance of requests for proposals, the commissioner may contract 
31.10 	with one or more qualified economic or community development financial institutions 
31.11 	to manage the financing component of the program and with one or more qualified 
31.12 	organizations or public agencies with financial or other program-related expertise to 
31.13 	manage the provision of technical assistance to project grantees.
31.14 	(d) Money in the account at the close of each fiscal year shall remain in the account 
31.15 	and shall not cancel. In each biennium, the commissioner shall determine the appropriate 
31.16 	proportion of money to be allocated to loans, grants, technical assistance, and any other 
31.17 	types of financial assistance.
31.18 	(e) To encourage public-private, cross-sector collaboration and investment in the 
31.19 	account and program and to ensure that the program intent is maintained throughout 
31.20 	implementation, the commissioner shall convene and maintain the Good Food Access 
31.21 	Program Advisory Committee.
31.22 	(f) The commissioner, in cooperation with the Good Food Access Program Advisory 
31.23 	Committee, shall manage the program, establish program criteria, facilitate leveraging of 
31.24 	additional public and private investment, and promote the program statewide.
31.25 	(g) The commissioner, in cooperation with the Good Food Access Program Advisory 
31.26 	Committee, shall establish annual monitoring and accountability mechanisms for all 
31.27 	projects receiving financing or other financial or technical assistance through this program.
31.28 		Subd. 5.Eligible projects. (a) The commissioner, in cooperation with the program 
31.29 	partners and advisors, shall establish project eligibility guidelines and application 
31.30 	processes to be used to review and select project applicants for financing or other financial 
31.31 	or technical assistance. All projects must be located in an underserved community or must 
31.32 	serve primarily underserved communities in low-income and moderate-income areas.
31.33 	(b) Projects eligible for financing include, but are not limited to, new construction, 
31.34 	renovations, expansions of operations, and infrastructure upgrades of grocery stores and 
31.35 	small food retailers to improve the availability of and access to affordable, nutritious food, 
31.36 	including fresh fruits and vegetables, and build capacity in areas of greatest need.
32.1 	(c) Projects eligible for other types of financial assistance such as grants or 
32.2 	technical assistance are primarily projects throughout the state, including, but not limited 
32.3 	to, feasibility studies, new construction, renovations, expansion of operations, and 
32.4 	infrastructure upgrades of small food retailers.
32.5 		Subd. 6.Qualifications for receipt of financing and other financial or technical 
32.6 	assistance. (a) An applicant for receipt of financing through an economic or community 
32.7 	development financial institution, or an applicant for a grant or other financial or technical 
32.8 	assistance, may be a for-profit or not-for-profit entity, including, but not limited to, a sole 
32.9 	proprietorship, limited liability company, corporation, cooperative, nonprofit organization, 
32.10 	or nonprofit community development organization. Each applicant must:
32.11 	(1) demonstrate community engagement in and support for the project;
32.12 	(2) demonstrate the capacity to successfully implement the project;
32.13 	(3) demonstrate a viable plan for long-term sustainability, including the ability to 
32.14 	increase the availability of and access to affordable, nutritious, and culturally appropriate 
32.15 	food, including fresh fruits and vegetables, for underserved communities in low-income 
32.16 	and moderate-income areas; and
32.17 	(4) demonstrate the ability to repay the debt, to the extent that the financing requires 
32.18 	repayment.
32.19 	(b) Each applicant must also agree to comply with the following conditions for a 
32.20 	period of at least five years, except as otherwise specified in this section:
32.21 	(1) accept Supplemental Nutrition Assistance Program (SNAP) benefits;
32.22 	(2) apply to accept Special Supplemental Nutrition Program for Women, Infants, 
32.23 	and Children (WIC) benefits and, if approved, accept WIC benefits;
32.24 	(3) allocate at least 30 percent of retail space for the sale of affordable, nutritious, 
32.25 	and culturally appropriate foods, including fruits and vegetables, low-fat and nonfat 
32.26 	dairy, fortified dairy substitute beverages such as soy-based or nut-based dairy substitute 
32.27 	beverages, whole grain-rich staple foods, meats, poultry, fish, seafood, and other proteins, 
32.28 	consistent with nutrition standards in national guidelines described in the current United 
32.29 	States Department of Agriculture Dietary Guidelines for Americans;
32.30 	(4) comply with all data collection and reporting requirements established by the 
32.31 	commissioner; and
32.32 	(5) promote the hiring, training, and retention of local or regional residents from 
32.33 	low-income and moderate-income areas that reflect area demographics, including 
32.34 	communities of color.
32.35 	(c) A selected project that is a small food retailer is not subject to the allocation 
32.36 	agreement under paragraph (b), clause (3), and may use financing, grants, or other financial 
33.1 	or technical assistance for refrigeration, displays, or onetime capital expenditures for the 
33.2 	promotion and sale of perishable foods, including a combination of affordable, nutritious, 
33.3 	and culturally appropriate fresh or frozen dairy, dairy substitute products, produce, meats, 
33.4 	poultry, and fish, consistent with nutrition standards in national guidelines described in the 
33.5 	current United States Department of Agriculture Dietary Guidelines for Americans.
33.6 		Subd. 7.Additional selection criteria. In determining which qualified projects to 
33.7 	finance, and in determining which qualified projects to provide with grants or other types 
33.8 	of financial or technical assistance, the commissioner, in cooperation with any entities 
33.9 	with which the commissioner contracts for those purposes and the Good Food Access 
33.10 	Program Advisory Committee, shall also consider:
33.11 	(1) the level of need in the area to be served;
33.12 	(2) the degree to which the project requires an investment of public support, or 
33.13 	technical assistance where applicable, to move forward, build capacity, create community 
33.14 	impact, or be competitive;
33.15 	(3) the likelihood that the project will have positive economic and health impacts on 
33.16 	the underserved community, including creation and retention of jobs for local or regional 
33.17 	residents from low-income and moderate-income areas that reflect area demographics, 
33.18 	including communities of color;
33.19 	(4) the degree to which the project will participate in state and local health department 
33.20 	initiatives to educate consumers on nutrition, promote healthy eating and healthy weight, 
33.21 	and support locally grown food products through programs such as Minnesota Grown; and
33.22 	(5) any other criteria that the commissioner, in cooperation with public and private 
33.23 	partners, determines to be consistent with the purposes of this chapter.
33.24 		Subd. 8.Eligible costs. Financing for project loans, including low-interest, 
33.25 	zero-interest, and forgivable loans, grants, and other financial or technical assistance, may 
33.26 	be used to support one or more of the following purposes:
33.27 	(1) site acquisition and preparation;
33.28 	(2) predevelopment costs, including but not limited to feasibility studies, market 
33.29 	studies, and appraisals;
33.30 	(3) construction and build-out costs;
33.31 	(4) equipment and furnishings;
33.32 	(5) workforce or retailer training; and
33.33 	(6) working capital.
33.34 		Subd. 9.Legislative report. The commissioner, in cooperation with any economic 
33.35 	or community development financial institution and any other entity with which it 
33.36 	contracts, shall submit an annual report on the good food access program by January 15 of 
34.1 	each year to the chairs and ranking minority members of the house of representatives and 
34.2 	senate committees and divisions with jurisdiction over agriculture policy and finance. The 
34.3 	annual report shall include, but not be limited to, a summary of the following metrics:
34.4 	(1) the number and types of projects financed;
34.5 	(2) the amount of dollars leveraged or matched per project;
34.6 	(3) the geographic distribution of financed projects;
34.7 	(4) the number and types of technical assistance recipients;
34.8 	(5) any market or commodity expansion associated with increased access;
34.9 	(6) the demographics of the areas served;
34.10 	(7) the costs of the program;
34.11 	(8) the number of SNAP and WIC dollars spent;
34.12 	(9) any increase in retail square footage;
34.13 	(10) the number of loans or grants to minority-owned or female-owned businesses; 
34.14 	and
34.15 	(11) measurable economic and health outcomes, including, but not limited to, 
34.16 	increases in sales and consumption of locally sourced and other fresh fruits and vegetables, 
34.17 	the number of construction and retail jobs retained or created, and any health initiatives 
34.18 	associated with the program.

34.19 	Sec. 5. [17.1018] GOOD FOOD ACCESS PROGRAM ADVISORY 
34.20 	COMMITTEE.
34.21 		Subdivision 1.Definitions. As used in this section, the following terms have the 
34.22 	meanings given them:
34.23 	(1) "program" means the good food access program under section 17.1017; and
34.24 	(2) "commissioner" means the commissioner of agriculture.
34.25 		Subd. 2.Creation. The Good Food Access Program Advisory Committee consists 
34.26 	of the following members, appointed by the commissioner of agriculture, unless otherwise 
34.27 	specified:
34.28 	(1) the commissioners of health, employment and economic development, and 
34.29 	human services, or their respective designees;
34.30 	(2) one person representing the grocery industry;
34.31 	(3) two people representing economic or community development, one rural 
34.32 	member and one urban or suburban member;
34.33 	(4) two people representing political subdivisions of the state;
34.34 	(5) one person designated by the Council for Minnesotans of African Heritage;
34.35 	(6) one person designated by the Minnesota Indian Affairs Council;
35.1 	(7) one person designated by the Council on Asian Pacific Minnesotans;
35.2 	(8) one person designated by the Chicano Latino Affairs Council;
35.3 	(9) one person designated by the Minnesota Farmers Union;
35.4 	(10) one person representing public health experts;
35.5 	(11) one person representing philanthropic foundations;
35.6 	(12) one person representing economic or community development financial 
35.7 	institutions;
35.8 	(13) one person representing the University of Minnesota Regional Sustainable 
35.9 	Development Partnerships;
35.10 	(14) two people representing organizations engaged in addressing food security, 
35.11 	one representative from a statewide hunger relief organization and one from a 
35.12 	community-based organization;
35.13 	(15) one person representing immigrant farmer-led organizations;
35.14 	(16) one person representing small business technical assistance with experience 
35.15 	in food retail; and
35.16 	(17) up to four additional members with economic development, health equity, 
35.17 	financial, or other relevant expertise.
35.18 	At least half of the members must reside in or their organizations must serve rural 
35.19 	Minnesota. The commissioner may remove members and fill vacancies as provided in 
35.20 	section 15.059, subdivision 4.
35.21 		Subd. 3.Duties. The advisory committee must advise the commissioner of 
35.22 	agriculture on managing the program, establishing program criteria, establishing project 
35.23 	eligibility guidelines, establishing application processes and additional selection criteria, 
35.24 	establishing annual monitoring and accountability mechanisms, facilitating leveraging of 
35.25 	additional public and private investments, and promoting the program statewide. 
35.26 		Subd. 4.Meetings. The commissioner must convene the advisory committee at 
35.27 	least two times per year to achieve the committee's duties.
35.28 		Subd. 5.Administrative support. The commissioner of agriculture must provide 
35.29 	staffing, meeting space, and administrative services for the advisory committee.
35.30 		Subd. 6.Chair. The commissioner of agriculture or the commissioner's designee 
35.31 	shall serve as chair of the committee.
35.32 		Subd. 7.Compensation. The public members of the advisory committee serve 
35.33 	without compensation or payment of expenses.
35.34 		Subd. 8.Expiration. The advisory committee does not expire.

35.35 	Sec. 6. Minnesota Statutes 2014, section 17.117, subdivision 4, is amended to read:
36.1 		Subd. 4.Definitions. (a) For the purposes of this section, the terms defined in this 
36.2 	subdivision have the meanings given them.
36.3 	(b) "Agricultural and environmental revolving accounts" means accounts in the 
36.4 	agricultural fund, controlled by the commissioner, which hold funds available to the 
36.5 	program.
36.6 	(c) "Agriculture supply business" means a person, partnership, joint venture, 
36.7 	corporation, limited liability company, association, firm, public service company, 
36.8 	or cooperative that provides materials, equipment, or services to farmers or 
36.9 	agriculture-related enterprises.
36.10 	(d) "Allocation" means the funds awarded to an applicant for implementation of best 
36.11 	management practices through a competitive or noncompetitive application process.
36.12 	(e) "Applicant" means a local unit of government eligible to participate in this 
36.13 	program that requests an allocation of funds as provided in subdivision 6b.
36.14 	(f) "Best management practices" has the meaning given in sections 103F.711, 
36.15 	subdivision 3, and 103H.151, subdivision 2, or. Best management practices also means
36.16 	other practices, techniques, and measures that have been demonstrated to the satisfaction 
36.17 	of the commissioner: (1) to prevent or reduce adverse environmental impacts by using 
36.18 	the most effective and practicable means of achieving environmental goals; or (2) to 
36.19 	achieve drinking water quality standards under chapter 103H or under Code of Federal 
36.20 	Regulations, title 40, parts 141 and 143, as amended.
36.21 	(g) "Borrower" means a farmer, an agriculture supply business, or a rural landowner 
36.22 	applying for a low-interest loan.
36.23 	(h) "Commissioner" means the commissioner of agriculture, including when the 
36.24 	commissioner is acting in the capacity of chair of the Rural Finance Authority, or the 
36.25 	designee of the commissioner.
36.26 	(i) "Committed project" means an eligible project scheduled to be implemented at 
36.27 	a future date:
36.28 	(1) that has been approved and certified by the local government unit; and
36.29 	(2) for which a local lender has obligated itself to offer a loan.
36.30 	(j) "Comprehensive water management plan" means a state approved and locally 
36.31 	adopted plan authorized under section 103B.231, 103B.255, 103B.311, 103C.331, 
36.32 	103D.401, or 103D.405.
36.33 	(k) "Cost incurred" means expenses for implementation of a project accrued because 
36.34 	the borrower has agreed to purchase equipment or is obligated to pay for services or 
36.35 	materials already provided as a result of implementing an approved eligible project.
37.1 	(l) "Farmer" means a person, partnership, joint venture, corporation, limited liability 
37.2 	company, association, firm, public service company, or cooperative that regularly 
37.3 	participates in physical labor or operations management of farming and files a Schedule F 
37.4 	as part of filing United States Internal Revenue Service Form 1040 or indicates farming as 
37.5 	the primary business activity under Schedule C, K, or S, or any other applicable report to 
37.6 	the United States Internal Revenue Service.
37.7 	(m) "Lender agreement" means an agreement entered into between the commissioner 
37.8 	and a local lender which contains terms and conditions of participation in the program.
37.9 	(n) "Local government unit" means a county, soil and water conservation district, 
37.10 	or an organization formed for the joint exercise of powers under section 471.59 with 
37.11 	the authority to participate in the program.
37.12 	(o) "Local lender" means a local government unit as defined in paragraph (n), a state 
37.13 	or federally chartered bank, a savings association, a state or federal credit union, Agribank 
37.14 	and its affiliated organizations, or a nonprofit economic development organization or other 
37.15 	financial lending institution approved by the commissioner.
37.16 	(p) "Local revolving loan account" means the account held by a local government unit 
37.17 	and a local lender into which principal repayments from borrowers are deposited and new 
37.18 	loans are issued in accordance with the requirements of the program and lender agreements.
37.19 	(q) "Nonpoint source" has the meaning given in section 103F.711, subdivision 6.
37.20 	(r) "Program" means the agriculture best management practices loan program 
37.21 	in this section.
37.22 	(s) "Project" means one or more components or activities located within Minnesota 
37.23 	that are required by the local government unit to be implemented for satisfactory 
37.24 	completion of an eligible best management practice.
37.25 	(t) "Rural landowner" means the owner of record of Minnesota real estate located 
37.26 	in an area determined by the local government unit to be rural after consideration of 
37.27 	local land use patterns, zoning regulations, jurisdictional boundaries, local community 
37.28 	definitions, historical uses, and other pertinent local factors.
37.29 	(u) "Water-quality cooperative" has the meaning given in section 115.58, paragraph 
37.30 	(d), except as expressly limited in this section.

37.31 	Sec. 7. Minnesota Statutes 2014, section 17.117, subdivision 11a, is amended to read:
37.32 		Subd. 11a.Eligible projects. (a) All projects that remediate or mitigate adverse 
37.33 	environmental impacts are eligible if:
37.34 	(1) the project is eligible under the an allocation agreement and funding sources 
37.35 	designated by the local government unit to finance the project; and.
38.1 	(2) (b) A manure management projects remediate project is eligible if the project 
38.2 	remediates or mitigate mitigates impacts from facilities with less than 1,000 animal units 
38.3 	as defined in Minnesota Rules, chapter 7020, and otherwise meets the requirements of 
38.4 	this section.
38.5 	(c) A drinking water project is eligible if the project: 
38.6 	(1) remediates the adverse environmental impacts or presence of contaminants in 
38.7 	private well water;
38.8 	(2) implements best management practices to achieve drinking water standards; and
38.9 	(3) otherwise meets the requirements of this section.

38.10 	Sec. 8. [17.119] TRACTOR ROLLOVER PROTECTION PILOT GRANT 
38.11 	PROGRAM.
38.12 		Subdivision 1.Grants; eligibility. (a) The commissioner must award cost-share 
38.13 	grants to Minnesota farmers who retrofit eligible tractors and Minnesota schools that 
38.14 	retrofit eligible tractors with eligible rollover protective structures. Grants are limited to 
38.15 	70 percent of the farmer's or school's documented cost to purchase, ship, and install an 
38.16 	eligible rollover protective structure. The commissioner must increase the grant award 
38.17 	amount over the 70 percent grant limitation requirement if necessary to limit a farmer's or 
38.18 	school's cost per tractor to no more than $500.
38.19 	(b) A rollover protective structure is eligible if it meets or exceeds SAE International 
38.20 	standard J2194.
38.21 	(c) A tractor is eligible if the tractor was built before 1987.
38.22 		Subd. 2.Promotion; administration. The commissioner may spend up to 20 
38.23 	percent of total program dollars each fiscal year to promote and administer the program to 
38.24 	Minnesota farmers and schools.
38.25 		Subd. 3.Nonstate sources; appropriation. The commissioner must accept 
38.26 	contributions from nonstate sources to supplement state appropriations for this program. 
38.27 	Contributions received under this subdivision are appropriated to the commissioner for 
38.28 	purposes of this section.
38.29 		Subd. 4.Expiration. This section expires on June 30, 2019.

38.30 	Sec. 9. Minnesota Statutes 2014, section 18B.26, subdivision 3, is amended to read:
38.31 		Subd. 3.Registration application and gross sales fee. (a) For an agricultural 
38.32 	pesticide, a registrant shall pay an annual registration application fee for each agricultural 
38.33 	pesticide of $350. The fee is due by December 31 preceding the year for which the 
38.34 	application for registration is made. The fee is nonrefundable.
39.1 	(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual 
39.2 	registration application fee for each nonagricultural pesticide of $350. The fee is due by 
39.3 	December 31 preceding the year for which the application for registration is made. The fee 
39.4 	is nonrefundable. The If the registrant's annual gross sales of the nonagricultural pesticide 
39.5 	exceeded $70,000 in the previous calendar year, the registrant of a nonagricultural pesticide
39.6 	shall pay, in addition to the $350 minimum fee, a fee of equal to 0.5 percent of that portion 
39.7 	of the annual gross sales of the over $70,000. For purposes of this subdivision, gross sales 
39.8 	includes both nonagricultural pesticide sold in the state and the annual gross sales of the
39.9 	nonagricultural pesticide sold into the state for use in this state. No additional fee is 
39.10 	required if the fee due amount based on percent of annual gross sales of a nonagricultural 
39.11 	pesticide is less than $10. The registrant shall secure sufficient sales information of 
39.12 	nonagricultural pesticides distributed into this state from distributors and dealers, 
39.13 	regardless of distributor location, to make a determination. Sales of nonagricultural 
39.14 	pesticides in this state and sales of nonagricultural pesticides for use in this state by 
39.15 	out-of-state distributors are not exempt and must be included in the registrant's annual 
39.16 	report, as required under paragraph (g), and fees shall be paid by the registrant based upon 
39.17 	those reported sales. Sales of nonagricultural pesticides in the state for use outside of 
39.18 	the state are exempt from the gross sales fee in this paragraph if the registrant properly 
39.19 	documents the sale location and distributors. A registrant paying more than the minimum 
39.20 	fee shall pay the balance due by March 1 based on the gross sales of the nonagricultural 
39.21 	pesticide by the registrant for the preceding calendar year. A pesticide determined by the 
39.22 	commissioner to be a sanitizer or disinfectant is exempt from the gross sales fee.
39.23 	(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed 
39.24 	pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the 
39.25 	agricultural pesticide in the state and the annual gross sales of the agricultural pesticide 
39.26 	sold into the state for use in this state.
39.27 	(d) In those cases where a registrant first sells an agricultural pesticide in or into the 
39.28 	state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer 
39.29 	license and is responsible for payment of the annual gross sales fee under paragraph (c), 
39.30 	record keeping under paragraph (i), and all other requirements of section 18B.316.
39.31 	(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013, 
39.32 	by the commissioner on the registration and sale of pesticides is less than $6,600,000, the 
39.33 	commissioner, after a public hearing, may increase proportionally the pesticide sales and 
39.34 	product registration fees under this chapter by the amount necessary to ensure this level 
39.35 	of revenue is achieved. The authority under this section expires on June 30, 2014. The 
40.1 	commissioner shall report any fee increases under this paragraph 60 days before the fee 
40.2 	change is effective to the senate and house of representatives agriculture budget divisions.
40.3 	(f) An additional fee of 50 percent of the registration application fee must be paid by 
40.4 	the applicant for each pesticide to be registered if the application is a renewal application 
40.5 	that is submitted after December 31.
40.6 	(g) A registrant must annually report to the commissioner the amount, type and 
40.7 	annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or 
40.8 	otherwise distributed in the state. The report shall be filed by March 1 for the previous 
40.9 	year's registration. The commissioner shall specify the form of the report or approve 
40.10 	the method for submittal of the report and may require additional information deemed 
40.11 	necessary to determine the amount and type of nonagricultural pesticide annually 
40.12 	distributed in the state. The information required shall include the brand name, United 
40.13 	States Environmental Protection Agency registration number, and amount of each 
40.14 	nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but 
40.15 	the information collected, if made public, shall be reported in a manner which does not 
40.16 	identify a specific brand name in the report.
40.17 	(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually 
40.18 	report to the commissioner the amount, type, and annual gross sales of each registered 
40.19 	agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the 
40.20 	state for use in the state. The report must be filed by January 31 for the previous year's 
40.21 	sales. The commissioner shall specify the form, contents, and approved electronic method 
40.22 	for submittal of the report and may require additional information deemed necessary to 
40.23 	determine the amount and type of agricultural pesticide annually distributed within the 
40.24 	state or into the state. The information required must include the brand name, United States 
40.25 	Environmental Protection Agency registration number, and amount of each agricultural 
40.26 	pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
40.27 	(i) A person who registers a pesticide with the commissioner under paragraph (b), 
40.28 	or a registrant under paragraph (d), shall keep accurate records for five years detailing 
40.29 	all distribution or sales transactions into the state or in the state and subject to a fee and 
40.30 	surcharge under this section.
40.31 	(j) The records are subject to inspection, copying, and audit by the commissioner 
40.32 	and must clearly demonstrate proof of payment of all applicable fees and surcharges 
40.33 	for each registered pesticide product sold for use in this state. A person who is located 
40.34 	outside of this state must maintain and make available records required by this subdivision 
40.35 	in this state or pay all costs incurred by the commissioner in the inspecting, copying, or 
40.36 	auditing of the records.
41.1 	(k) The commissioner may adopt by rule regulations that require persons subject 
41.2 	to audit under this section to provide information determined by the commissioner to be 
41.3 	necessary to enable the commissioner to perform the audit.
41.4 	(l) A registrant who is required to pay more than the minimum fee for any pesticide 
41.5 	under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee 
41.6 	paid after March 1 in the year for which the license is to be issued.

41.7 	Sec. 10. Minnesota Statutes 2014, section 41A.12, subdivision 2, is amended to read:
41.8 		Subd. 2.Activities authorized. For the purposes of this program, the commissioner 
41.9 	may issue grants, loans, or other forms of financial assistance. Eligible activities include, 
41.10 	but are not limited to, grants to livestock producers under the livestock investment grant 
41.11 	program under section 17.118, bioenergy awards made by the NextGen Energy Board 
41.12 	under section 41A.105, cost-share grants for the installation of biofuel blender pumps, and 
41.13 	financial assistance to support other rural economic infrastructure activities.

41.14 	Sec. 11. Minnesota Statutes 2015 Supplement, section 41A.14, is amended to read:
41.15 	41A.14 AGRICULTURE RESEARCH, EDUCATION, EXTENSION, AND 
41.16 	TECHNOLOGY TRANSFER GRANT PROGRAM.
41.17 		Subdivision 1.Duties; grants. The agriculture research, education, extension, and 
41.18 	technology transfer grant program is created. The purpose of the grant program is to 
41.19 	provide investments that will most efficiently achieve long-term agricultural productivity 
41.20 	increases through improved infrastructure, vision, and accountability. The scope and 
41.21 	intent of the grants, to the extent possible, shall provide for a long-term base funding 
41.22 	that allows the research grantee to continue the functions of the research, education, and
41.23 	extension, and technology transfer efforts to a practical conclusion. Priority for grants 
41.24 	shall be given to human infrastructure. The commissioner shall provide grants for:
41.25 	(1) agricultural research, extension, and technology transfer needs and recipients 
41.26 	including agricultural research and extension at the University of Minnesota, research and 
41.27 	outreach centers, the College of Food, Agricultural and Natural Resource Sciences, the 
41.28 	Minnesota Agricultural Experiment Station, University of Minnesota Extension Service, 
41.29 	the University of Minnesota Veterinary School, the Veterinary Diagnostic Laboratory, 
41.30 	the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer Research and 
41.31 	Education Council; for use by any of the following:
41.32 	(i) the College of Food, Agricultural and Natural Resource Sciences;
41.33 	(ii) the Minnesota Agricultural Experiment Station;
41.34 	(iii) the University of Minnesota Extension Service;
42.1 	(iv) the University of Minnesota Veterinary School;
42.2 	(v) the Veterinary Diagnostic Laboratory; or
42.3 	(vi) the Stakman-Borlaug Center;
42.4 	(2) agriculture rapid response for plant and animal diseases and pests; and
42.5 	(3) agricultural education including but not limited to the Minnesota Agriculture 
42.6 	Education Leadership Council, farm business management, mentoring programs, graduate 
42.7 	debt forgiveness, and high school programs.
42.8 		Subd. 2.Advisory panel. (a) In awarding grants under this section, the 
42.9 	commissioner and a representative of the College of Food, Agricultural and Natural 
42.10 	Resource Sciences at the University of Minnesota must consult with an advisory panel 
42.11 	consisting of the following stakeholders:
42.12 	(1) a representative of the College of Food, Agricultural and Natural Resource 
42.13 	Sciences at the University of Minnesota;
42.14 	(2) (1) a representative of the Minnesota State Colleges and Universities system;
42.15 	(3) (2) a representative of the Minnesota Farm Bureau;
42.16 	(4) (3) a representative of the Minnesota Farmers Union;
42.17 	(5) (4) a person representing agriculture industry statewide;
42.18 	(6) (5) a representative of each of the state commodity councils organized under 
42.19 	section 17.54 and the Minnesota Pork Board;
42.20 	(7) (6) a person representing an association of primary manufacturers of forest 
42.21 	products;
42.22 	(8) (7) a person representing organic or sustainable agriculture; and
42.23 	(9) (8) a person representing statewide environment and natural resource 
42.24 	conservation organizations.
42.25 	(b) Members under paragraph (a), clauses (1) to (3) and (5), shall be chosen by their 
42.26 	respective organizations.
42.27 		Subd. 3.Account. An agriculture research, education, extension, and technology 
42.28 	transfer account is created in the agricultural fund in the state treasury. The account 
42.29 	consists of money received in the form of gifts, grants, reimbursement, or appropriations 
42.30 	from any source for any of the purposes provided in subdivision 1, and any interest or 
42.31 	earnings of the account. Money in the account is appropriated to the commissioner of 
42.32 	agriculture for the purposes under subdivision 1.

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

42.34 	Sec. 12. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a 
42.35 	subdivision to read:
43.1 		Subd. 2a.Biobased content. "Biobased content" means a chemical, polymer, 
43.2 	monomer, or plastic that is not sold primarily for use as food, feed, or fuel and that has a 
43.3 	biobased percentage of at least 51 percent as determined by testing representative samples 
43.4 	using American Society for Testing and Materials specification D6866.

43.5 	Sec. 13. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a 
43.6 	subdivision to read:
43.7 		Subd. 2b.Biobased formulated product. "Biobased formulated product" means 
43.8 	a product that is not sold primarily for use as food, feed, or fuel and that has a biobased 
43.9 	content percentage of at least ten percent as determined by testing representative samples 
43.10 	using American Society for Testing and Materials specification D6866, or that contains 
43.11 	a biobased chemical constituent that displaces a known hazardous or toxic constituent 
43.12 	previously used in the product formulation.

43.13 	Sec. 14. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a 
43.14 	subdivision to read:
43.15 		Subd. 2c.Biobutanol. "Biobutanol" means fermentation isobutyl alcohol that is 
43.16 	derived from agricultural products, including potatoes, cereal grains, cheese whey, and 
43.17 	sugar beets; forest products; or other renewable resources, including residue and waste 
43.18 	generated from the production, processing, and marketing of agricultural products, forest 
43.19 	products, and other renewable resources.

43.20 	Sec. 15. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a 
43.21 	subdivision to read:
43.22 		Subd. 2d.Biobutanol facility. "Biobutanol facility" means a facility at which 
43.23 	biobutanol is produced.

43.24 	Sec. 16. Minnesota Statutes 2015 Supplement, section 41A.15, is amended by adding a 
43.25 	subdivision to read:
43.26 		Subd. 9a.Quarterly. "Quarterly" means any of the following three-month intervals 
43.27 	in a calendar year: January through March, April through June, July through September, 
43.28 	or October through December.

43.29 	Sec. 17. Minnesota Statutes 2015 Supplement, section 41A.15, subdivision 10, is 
43.30 	amended to read:
44.1 		Subd. 10.Renewable chemical. "Renewable chemical" means a chemical with 
44.2 	biobased content as defined in section 41A.105, subdivision 1a.

44.3 	Sec. 18. Minnesota Statutes 2015 Supplement, section 41A.16, subdivision 1, is 
44.4 	amended to read:
44.5 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
44.6 	source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or 
44.7 	less from the state border, raw materials may be sourced from within a 100-mile radius. 
44.8 	Raw materials must be from agricultural or forestry sources or from solid waste. The 
44.9 	facility must be located in Minnesota, must begin production at a specific location by June 
44.10 	30, 2025, and must not begin operating above 95,000 23,750 MMbtu of annual quarterly 
44.11 	biofuel production before July 1, 2015. Eligible facilities include existing companies and 
44.12 	facilities that are adding advanced biofuel production capacity, or retrofitting existing 
44.13 	capacity, as well as new companies and facilities. Production of conventional corn ethanol 
44.14 	and conventional biodiesel is not eligible. Eligible advanced biofuel facilities must 
44.15 	produce at least 95,000 23,750 MMbtu a year of biofuel quarterly.
44.16 	(b) No payments shall be made for advanced biofuel production that occurs after 
44.17 	June 30, 2035, for those eligible biofuel producers under paragraph (a).
44.18 	(c) An eligible producer of advanced biofuel shall not transfer the producer's 
44.19 	eligibility for payments under this section to an advanced biofuel facility at a different 
44.20 	location.
44.21 	(d) A producer that ceases production for any reason is ineligible to receive 
44.22 	payments under this section until the producer resumes production.
44.23 	(e) Renewable chemical production for which payment has been received under 
44.24 	section 41A.17, and biomass thermal production for which payment has been received 
44.25 	under section 41A.18, are not eligible for payment under this section.
44.26 	(f) Biobutanol is eligible under this section.

44.27 	Sec. 19. Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 1, is 
44.28 	amended to read:
44.29 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this program 
44.30 	must source at least 80 percent biobased content, as defined in section 41A.105, 
44.31 	subdivision 1a, clause (1), from Minnesota. If a facility is sited 50 miles or less from the 
44.32 	state border, biobased content must be sourced from within a 100-mile radius. Biobased 
44.33 	content must be from agricultural or forestry sources or from solid waste. The facility must 
44.34 	be located in Minnesota, must begin production at a specific location by June 30, 2025, and 
45.1 	must not begin production of 3,000,000 750,000 pounds of chemicals annuallyquarterly
45.2 	before January 1, 2015. Eligible facilities include existing companies and facilities that are 
45.3 	adding production capacity, or retrofitting existing capacity, as well as new companies and 
45.4 	facilities. Eligible renewable chemical facilities must produce at least 3,000,000 750,000
45.5 	pounds per year of renewable chemicals quarterly. Renewable chemicals produced 
45.6 	through processes that are fully commercial before January 1, 2000, are not eligible.
45.7 	(b) No payments shall be made for renewable chemical production that occurs after 
45.8 	June 30, 2035, for those eligible renewable chemical producers under paragraph (a).
45.9 	(c) An eligible producer of renewable chemicals shall not transfer the producer's 
45.10 	eligibility for payments under this section to a renewable chemical facility at a different 
45.11 	location.
45.12 	(d) A producer that ceases production for any reason is ineligible to receive 
45.13 	payments under this section until the producer resumes production.
45.14 	(e) Advanced biofuel production for which payment has been received under section 
45.15 	41A.16, and biomass thermal production for which payment has been received under 
45.16 	section 41A.18, are not eligible for payment under this section.

45.17 	Sec. 20. Minnesota Statutes 2015 Supplement, section 41A.17, subdivision 2, is 
45.18 	amended to read:
45.19 		Subd. 2.Payment amounts; bonus; limits. (a) The commissioner shall make 
45.20 	payments to eligible producers of renewable chemicals located in the state. The amount of 
45.21 	the payment for each producer's annual production is $0.03 per pound of sugar-derived 
45.22 	renewable chemical, $0.03 per pound of cellulosic sugar, and $0.06 per pound of 
45.23 	cellulosic-derived renewable chemical produced at a specific location for ten years after 
45.24 	the start of production.
45.25 	(b) An eligible facility producing renewable chemicals using agricultural cellulosic 
45.26 	biomass is eligible for a 20 percent bonus payment for each MMbtu pound produced from 
45.27 	agricultural biomass that is derived from perennial crop or cover crop biomass.
45.28 	(c) Total payments under this section to an eligible renewable chemical producer in 
45.29 	a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable 
45.30 	chemical production. Total payments under this section to all eligible renewable chemical 
45.31 	producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of 
45.32 	renewable chemical production. The commissioner shall award payments on a first-come, 
45.33 	first-served basis within the limits of available funding.
45.34 	(d) For purposes of this section, an entity that holds a controlling interest in more 
45.35 	than one renewable chemical production facility is considered a single eligible producer.

46.1 	Sec. 21. Minnesota Statutes 2015 Supplement, section 41A.18, subdivision 1, is 
46.2 	amended to read:
46.3 		Subdivision 1.Eligibility. (a) A facility eligible for payment under this section must 
46.4 	source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles or 
46.5 	less from the state border, raw materials should be sourced from within a 100-mile radius. 
46.6 	Raw materials must be from agricultural or forestry sources. The facility must be located 
46.7 	in Minnesota, must have begun production at a specific location by June 30, 2025, and 
46.8 	must not begin before July 1, 2015. Eligible facilities include existing companies and 
46.9 	facilities that are adding production capacity, or retrofitting existing capacity, as well as 
46.10 	new companies and facilities. Eligible biomass thermal production facilities must produce 
46.11 	at least 1,000 250 MMbtu per year of biomass thermal quarterly.
46.12 	(b) No payments shall be made for biomass thermal production that occurs after June 
46.13 	30, 2035, for those eligible biomass thermal producers under paragraph (a).
46.14 	(c) An eligible producer of biomass thermal production shall not transfer the 
46.15 	producer's eligibility for payments under this section to a biomass thermal production 
46.16 	facility at a different location.
46.17 	(d) A producer that ceases production for any reason is ineligible to receive 
46.18 	payments under this section until the producer resumes production.
46.19 	(e) Biofuel production for which payment has been received under section 41A.16, 
46.20 	and renewable chemical production for which payment has been received under section 
46.21 	41A.17, are not eligible for payment under this section.

46.22 	Sec. 22. [41A.20] SIDING PRODUCTION INCENTIVE.
46.23 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in 
46.24 	this subdivision have the meanings given them.
46.25 	(b) "Commissioner" means the commissioner of agriculture.
46.26 	(c) "Forest resources" means raw wood logs and material primarily made up of 
46.27 	cellulose, hemicellulose, or lignin, or a combination of those ingredients.
46.28 		Subd. 2.Eligibility. (a) A facility eligible for payment under this section must 
46.29 	source at least 80 percent raw materials from Minnesota. If a facility is sited 50 miles 
46.30 	or less from the state border, raw materials may be sourced from within a 100-mile 
46.31 	radius. Raw materials must be from forest resources. The facility must be located in 
46.32 	Minnesota, must begin production at a specific location by June 30, 2025, and must not 
46.33 	begin operating before July 1, 2017. Eligible facilities include existing companies and 
46.34 	facilities that are adding siding production capacity, or retrofitting existing capacity, as 
47.1 	well as new companies and facilities. Eligible siding production facilities must produce at 
47.2 	least 200,000,000 siding square feet on a 3/8 inch nominal basis of siding each year.
47.3 	(b) No payments shall be made for siding production that occurs after June 30, 2035, 
47.4 	for those eligible producers under paragraph (a).
47.5 	(c) An eligible producer of siding shall not transfer the producer's eligibility for 
47.6 	payments under this section to a facility at a different location.
47.7 	(d) A producer that ceases production for any reason is ineligible to receive 
47.8 	payments under this section until the producer resumes production.
47.9 		Subd. 3.Payment amounts; limits. (a) The commissioner shall make payments 
47.10 	to eligible producers of siding. The amount of the payment for each eligible producer's 
47.11 	annual production is $7.50 per 1,000 siding square feet on a 3/8 inch nominal basis of 
47.12 	siding produced at a specific location for ten years after the start of production.
47.13 	(b) Total payments under this section to an eligible siding producer in a fiscal year 
47.14 	may not exceed the amount necessary for 400,000,000 siding square feet on a 3/8 inch 
47.15 	nominal basis of siding produced. Total payments under this section to all eligible siding 
47.16 	producers in a fiscal year may not exceed the amount necessary for 400,000,000 siding 
47.17 	square feet on a 3/8 inch nominal basis of siding produced. The commissioner shall award 
47.18 	payments on a first-come, first-served basis within the limits of available funding.
47.19 	(c) For purposes of this section, an entity that holds a controlling interest in more 
47.20 	than one siding facility is considered a single eligible producer.
47.21 		Subd. 4.Forest resources requirements. Forest resources that come from land 
47.22 	parcels greater than 160 acres must be certified by the Forest Stewardship Council, 
47.23 	Sustainable Forestry Initiative, or American Tree Farm System. Uncertified land from 
47.24 	parcels of 160 acres or less and federal land must be harvested by a logger who has 
47.25 	completed training from the Minnesota logger education program or the equivalent, and 
47.26 	have a forest stewardship plan.
47.27 		Subd. 5.Claims. (a) By the last day of October, January, April, and July, each 
47.28 	eligible siding producer shall file a claim for payment for siding production during the 
47.29 	preceding three calendar months. An eligible siding producer that files a claim under this 
47.30 	subdivision shall include a statement of the eligible producer's total board feet of siding 
47.31 	produced during the quarter covered by the claim. For each claim and statement of total 
47.32 	board feet of siding filed under this subdivision, the board feet of siding produced must 
47.33 	be examined by a certified public accounting firm with a valid permit to practice under 
47.34 	chapter 326A, in accordance with Statements on Standards for Attestation Engagements 
47.35 	established by the American Institute of Certified Public Accountants.
48.1 	(b) The commissioner must issue payments by November 15, February 15, May 15, 
48.2 	and August 15. A separate payment must be made for each claim filed.
48.3 		Subd. 6.Appropriation. A sum sufficient to make the payments required by this 
48.4 	section, not to exceed $3,000,000 in a fiscal year, is annually appropriated from the 
48.5 	general fund to the commissioner.

48.6 	Sec. 23. Minnesota Statutes 2015 Supplement, section 116D.04, subdivision 2a, 
48.7 	is amended to read:
48.8 		Subd. 2a.When prepared. Where there is potential for significant environmental 
48.9 	effects resulting from any major governmental action, the action shall be preceded by a 
48.10 	detailed environmental impact statement prepared by the responsible governmental unit. 
48.11 	The environmental impact statement shall be an analytical rather than an encyclopedic 
48.12 	document which describes the proposed action in detail, analyzes its significant 
48.13 	environmental impacts, discusses appropriate alternatives to the proposed action and 
48.14 	their impacts, and explores methods by which adverse environmental impacts of an 
48.15 	action could be mitigated. The environmental impact statement shall also analyze those 
48.16 	economic, employment, and sociological effects that cannot be avoided should the action 
48.17 	be implemented. To ensure its use in the decision-making process, the environmental 
48.18 	impact statement shall be prepared as early as practical in the formulation of an action.
48.19 	(a) The board shall by rule establish categories of actions for which environmental 
48.20 	impact statements and for which environmental assessment worksheets shall be prepared 
48.21 	as well as categories of actions for which no environmental review is required under this 
48.22 	section. A mandatory environmental assessment worksheet shall not be required for the 
48.23 	expansion of an ethanol plant, as defined in section 41A.09, subdivision 2a, paragraph 
48.24 	(b), or the conversion of an ethanol plant to a biobutanol facility or the expansion of a 
48.25 	biobutanol facility as defined in section 41A.105 41A.15, subdivision 1a 2d, based on 
48.26 	the capacity of the expanded or converted facility to produce alcohol fuel, but must be 
48.27 	required if the ethanol plant or biobutanol facility meets or exceeds thresholds of other 
48.28 	categories of actions for which environmental assessment worksheets must be prepared. 
48.29 	The responsible governmental unit for an ethanol plant or biobutanol facility project for 
48.30 	which an environmental assessment worksheet is prepared shall be the state agency with 
48.31 	the greatest responsibility for supervising or approving the project as a whole.
48.32 	A mandatory environmental impact statement shall not be required for a facility 
48.33 	or plant located outside the seven-county metropolitan area that produces less than 
48.34 	125,000,000 gallons of ethanol, biobutanol, or cellulosic biofuel annually, or produces less 
48.35 	than 400,000 tons of chemicals annually, if the facility or plant is: an ethanol plant, as 
49.1 	defined in section 41A.09, subdivision 2a, paragraph (b); a biobutanol facility, as defined 
49.2 	in section 41A.105 41A.15, subdivision 1a, clause (1) 2d; or a cellulosic biofuel facility. 
49.3 	A facility or plant that only uses a cellulosic feedstock to produce chemical products for 
49.4 	use by another facility as a feedstock shall not be considered a fuel conversion facility as 
49.5 	used in rules adopted under this chapter.
49.6 	(b) The responsible governmental unit shall promptly publish notice of the 
49.7 	completion of an environmental assessment worksheet by publishing the notice in at least 
49.8 	one newspaper of general circulation in the geographic area where the project is proposed, 
49.9 	by posting the notice on a Web site that has been designated as the official publication site 
49.10 	for publication of proceedings, public notices, and summaries of a political subdivision in 
49.11 	which the project is proposed, or in any other manner determined by the board and shall 
49.12 	provide copies of the environmental assessment worksheet to the board and its member 
49.13 	agencies. Comments on the need for an environmental impact statement may be submitted 
49.14 	to the responsible governmental unit during a 30-day period following publication of the 
49.15 	notice that an environmental assessment worksheet has been completed. The responsible 
49.16 	governmental unit's decision on the need for an environmental impact statement shall be 
49.17 	based on the environmental assessment worksheet and the comments received during the 
49.18 	comment period, and shall be made within 15 days after the close of the comment period. 
49.19 	The board's chair may extend the 15-day period by not more than 15 additional days upon 
49.20 	the request of the responsible governmental unit.
49.21 	(c) An environmental assessment worksheet shall also be prepared for a proposed 
49.22 	action whenever material evidence accompanying a petition by not less than 100 
49.23 	individuals who reside or own property in the state, submitted before the proposed 
49.24 	project has received final approval by the appropriate governmental units, demonstrates 
49.25 	that, because of the nature or location of a proposed action, there may be potential for 
49.26 	significant environmental effects. Petitions requesting the preparation of an environmental 
49.27 	assessment worksheet shall be submitted to the board. The chair of the board shall 
49.28 	determine the appropriate responsible governmental unit and forward the petition to it. 
49.29 	A decision on the need for an environmental assessment worksheet shall be made by 
49.30 	the responsible governmental unit within 15 days after the petition is received by the 
49.31 	responsible governmental unit. The board's chair may extend the 15-day period by not 
49.32 	more than 15 additional days upon request of the responsible governmental unit.
49.33 	(d) Except in an environmentally sensitive location where Minnesota Rules, part 
49.34 	4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental 
49.35 	review under this chapter and rules of the board, if:
49.36 	(1) the proposed action is:
50.1 	(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or
50.2 	(ii) an expansion of an existing animal feedlot facility with a total cumulative 
50.3 	capacity of less than 1,000 animal units;
50.4 	(2) the application for the animal feedlot facility includes a written commitment by 
50.5 	the proposer to design, construct, and operate the facility in full compliance with Pollution 
50.6 	Control Agency feedlot rules; and
50.7 	(3) the county board holds a public meeting for citizen input at least ten business 
50.8 	days prior to the Pollution Control Agency or county issuing a feedlot permit for the 
50.9 	animal feedlot facility unless another public meeting for citizen input has been held with 
50.10 	regard to the feedlot facility to be permitted. The exemption in this paragraph is in 
50.11 	addition to other exemptions provided under other law and rules of the board.
50.12 	(e) The board may, prior to final approval of a proposed project, require preparation 
50.13 	of an environmental assessment worksheet by a responsible governmental unit selected 
50.14 	by the board for any action where environmental review under this section has not been 
50.15 	specifically provided for by rule or otherwise initiated.
50.16 	(f) An early and open process shall be utilized to limit the scope of the environmental 
50.17 	impact statement to a discussion of those impacts, which, because of the nature or location 
50.18 	of the project, have the potential for significant environmental effects. The same process 
50.19 	shall be utilized to determine the form, content and level of detail of the statement as well 
50.20 	as the alternatives which are appropriate for consideration in the statement. In addition, 
50.21 	the permits which will be required for the proposed action shall be identified during the 
50.22 	scoping process. Further, the process shall identify those permits for which information 
50.23 	will be developed concurrently with the environmental impact statement. The board 
50.24 	shall provide in its rules for the expeditious completion of the scoping process. The 
50.25 	determinations reached in the process shall be incorporated into the order requiring the 
50.26 	preparation of an environmental impact statement.
50.27 	(g) The responsible governmental unit shall, to the extent practicable, avoid 
50.28 	duplication and ensure coordination between state and federal environmental review 
50.29 	and between environmental review and environmental permitting. Whenever practical, 
50.30 	information needed by a governmental unit for making final decisions on permits 
50.31 	or other actions required for a proposed project shall be developed in conjunction 
50.32 	with the preparation of an environmental impact statement. When an environmental 
50.33 	impact statement is prepared for a project requiring multiple permits for which two or 
50.34 	more agencies' decision processes include either mandatory or discretionary hearings 
50.35 	before a hearing officer prior to the agencies' decision on the permit, the agencies 
50.36 	may, notwithstanding any law or rule to the contrary, conduct the hearings in a single 
51.1 	consolidated hearing process if requested by the proposer. All agencies having jurisdiction 
51.2 	over a permit that is included in the consolidated hearing shall participate. The responsible 
51.3 	governmental unit shall establish appropriate procedures for the consolidated hearing 
51.4 	process, including procedures to ensure that the consolidated hearing process is consistent 
51.5 	with the applicable requirements for each permit regarding the rights and duties of parties to 
51.6 	the hearing, and shall utilize the earliest applicable hearing procedure to initiate the hearing.
51.7 	(h) An environmental impact statement shall be prepared and its adequacy 
51.8 	determined within 280 days after notice of its preparation unless the time is extended by 
51.9 	consent of the parties or by the governor for good cause. The responsible governmental 
51.10 	unit shall determine the adequacy of an environmental impact statement, unless within 60 
51.11 	days after notice is published that an environmental impact statement will be prepared, 
51.12 	the board chooses to determine the adequacy of an environmental impact statement. If an 
51.13 	environmental impact statement is found to be inadequate, the responsible governmental 
51.14 	unit shall have 60 days to prepare an adequate environmental impact statement.
51.15 	(i) The proposer of a specific action may include in the information submitted to the 
51.16 	responsible governmental unit a preliminary draft environmental impact statement under 
51.17 	this section on that action for review, modification, and determination of completeness and 
51.18 	adequacy by the responsible governmental unit. A preliminary draft environmental impact 
51.19 	statement prepared by the project proposer and submitted to the responsible governmental 
51.20 	unit shall identify or include as an appendix all studies and other sources of information 
51.21 	used to substantiate the analysis contained in the preliminary draft environmental impact 
51.22 	statement. The responsible governmental unit shall require additional studies, if needed, 
51.23 	and obtain from the project proposer all additional studies and information necessary for 
51.24 	the responsible governmental unit to perform its responsibility to review, modify, and 
51.25 	determine the completeness and adequacy of the environmental impact statement.

51.26 	Sec. 24. Minnesota Statutes 2015 Supplement, section 583.215, is amended to read:
51.27 	583.215 EXPIRATION.
51.28 	Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20 
51.29 	to 583.32, expire June 30, 2016 2018.

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

51.31 	Sec. 25. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 2, 
51.32 	is amended to read:

51.33	Subd. 2.Protection Services 
 		16,452,000 
		16,402,000

52.1	Appropriations by Fund
	
52.2		2016
	2017
	
52.3	General 
	15,874,000 
	15,824,000
	
52.4	Agricultural
	190,000
	190,000
	
52.5	Remediation
	388,000
	388,000
	
52.6 	$25,000 the first year and $25,000 the second 
52.7 	year are to develop and maintain cottage 
52.8 	food license exemption outreach and training 
52.9 	materials.
52.10 	$75,000 the first year is for the commissioner, 
52.11 	in consultation with the Northeast Regional 
52.12 	Corrections Center and the United Food 
52.13 	and Commercial Workers, to study and 
52.14 	provide recommendations for upgrading the 
52.15 	existing processing facility on the campus of 
52.16 	the Northeast Regional Corrections Center 
52.17 	into a USDA-certified food processing 
52.18 	facility. The commissioner shall report these 
52.19 	recommendations to the chairs of the house 
52.20 	of representatives and senate committees 
52.21 	with jurisdiction over agriculture finance by 
52.22 	March 15, 2016.
52.23 	$75,000 the second year is for a coordinator 
52.24 	for to coordinate the correctional facility 
52.25 	vocational training pilot program and to assist 
52.26 	entities that have explored the feasibility of 
52.27 	establishing a USDA-certified or state "equal 
52.28 	to" food processing facility within 30 miles of 
52.29 	the Northeast Regional Corrections Center.
52.30 	$388,000 the first year and $388,000 the 
52.31 	second year are from the remediation fund 
52.32 	for administrative funding for the voluntary 
52.33 	cleanup program.
52.34 	$225,000 the first year and $175,000 
52.35 	the second year are for compensation 
53.1 	for destroyed or crippled animals under 
53.2 	Minnesota Statutes, section 3.737. This 
53.3 	appropriation may be spent to compensate 
53.4 	for animals that were destroyed or crippled 
53.5 	during fiscal years 2014 and 2015. If the 
53.6 	amount in the first year is insufficient, the 
53.7 	amount in the second year is available in the 
53.8 	first year.
53.9 	$125,000 the first year and $125,000 the 
53.10 	second year are for compensation for crop 
53.11 	damage under Minnesota Statutes, section 
53.12 	3.7371. If the amount in the first year is 
53.13 	insufficient, the amount in the second year is 
53.14 	available in the first year. 
53.15 	If the commissioner determines that claims 
53.16 	made under Minnesota Statutes, section 
53.17 	3.737 or 3.7371, are unusually high, amounts 
53.18 	appropriated for either program may be 
53.19 	transferred to the appropriation for the other 
53.20 	program.
53.21 	$70,000 the first year and $70,000 the second 
53.22 	year are for additional cannery inspections.
53.23 	$100,000 the first year and $100,000 the 
53.24 	second year are for increased oversight of 
53.25 	delegated local health boards.
53.26 	$100,000 the first year and $100,000 the 
53.27 	second year are to decrease the turnaround 
53.28 	time for retail food handler plan reviews.
53.29 	$1,024,000 the first year and $1,024,000 the 
53.30 	second year are to streamline the retail food 
53.31 	safety regulatory and licensing experience 
53.32 	for regulated businesses and to decrease the 
53.33 	inspection delinquency rate.
54.1 	$1,350,000 the first year and $1,350,000 the 
54.2 	second year are for additional inspections of 
54.3 	food manufacturers and wholesalers.
54.4 	$150,000 the first year and $150,000 the 
54.5 	second year are for additional funding for 
54.6 	dairy inspection services.
54.7 	$150,000 the first year and $150,000 the 
54.8 	second year are for additional funding for 
54.9 	laboratory services operations.
54.10 	$250,000 the first year and $250,000 
54.11 	the second year are for additional meat 
54.12 	inspection services, including inspections 
54.13 	provided under the correctional facility 
54.14 	vocational training pilot program.
54.15 	Notwithstanding Minnesota Statutes, section 
54.16 	18B.05, $90,000 the first year and $90,000 
54.17 	the second year are from the pesticide 
54.18 	regulatory account in the agricultural fund 
54.19 	for an increase in the operating budget for 
54.20 	the Laboratory Services Division.
54.21 	$100,000 the first year and $100,000 the 
54.22 	second year are from the pesticide regulatory 
54.23 	account in the agricultural fund to update 
54.24 	and modify applicator education and training 
54.25 	materials.

54.26 	Sec. 26. Laws 2015, First Special Session chapter 4, article 1, section 2, subdivision 4, 
54.27 	is amended to read:

54.28
54.29	Subd. 4.Agriculture, Bioenergy, and 
Bioproduct Advancement
 		14,993,000  
		19,010,000
	
54.30 	$4,483,000 the first year and $8,500,000 the 
54.31 	second year are for transfer to the agriculture 
54.32 	research, education, extension, and 
54.33 	technology transfer account under Minnesota 
54.34 	Statutes, section 41A.14, subdivision 3. 
55.1 	The transfer in this paragraph includes 
55.2 	money for plant breeders at the University 
55.3 	of Minnesota for wild rice, potatoes, and 
55.4 	grapes. Of these amounts, at least $600,000 
55.5 	each year is for agriculture rapid response
55.6 	the Minnesota Agricultural Experiment 
55.7 	Station's Agriculture Rapid Response Fund 
55.8 	under Minnesota Statutes, section 41A.14, 
55.9 	subdivision 1, clause (2). Of the amount 
55.10 	appropriated in this paragraph, $1,000,000 
55.11 	each year is for transfer to the Board of 
55.12 	Regents of the University of Minnesota for 
55.13 	research to determine (1) what is causing 
55.14 	avian influenza, (2) why some fowl are more 
55.15 	susceptible, and (3) prevention measures that 
55.16 	can be taken. Of the amount appropriated 
55.17 	in this paragraph, $2,000,000 each year 
55.18 	is for grants to the Minnesota Agriculture 
55.19 	Education Leadership Council to enhance 
55.20 	agricultural education with priority given 
55.21 	to Farm Business Management challenge 
55.22 	grants. The commissioner shall transfer the 
55.23 	remaining grant funds in this appropriation 
55.24 	each year to the Board of Regents of the 
55.25 	University of Minnesota for purposes of 
55.26 	Minnesota Statutes, section 41A.14.
55.27 	To the extent practicable, funds expended 
55.28 	under Minnesota Statutes, section 41A.14, 
55.29 	subdivision 1, clauses (1) and (2), must 
55.30 	supplement and not supplant existing sources 
55.31 	and levels of funding. The commissioner may 
55.32 	use up to 4.5 percent of this appropriation 
55.33 	for costs incurred to administer the program. 
55.34 	Any unencumbered balance does not cancel 
55.35 	at the end of the first year and is available for 
55.36 	the second year.
56.1 	$10,235,000 the first year and $10,235,000 
56.2 	the second year are for the agricultural 
56.3 	growth, research, and innovation program 
56.4 	in Minnesota Statutes, section 41A.12. No 
56.5 	later than February 1, 2016, and February 
56.6 	1, 2017, the commissioner must report to 
56.7 	the legislative committees with jurisdiction 
56.8 	over agriculture policy and finance regarding 
56.9 	the commissioner's accomplishments 
56.10 	and anticipated accomplishments in 
56.11 	the following areas: facilitating the 
56.12 	start-up, modernization, or expansion of 
56.13 	livestock operations including beginning 
56.14 	and transitioning livestock operations; 
56.15 	developing new markets for Minnesota 
56.16 	farmers by providing more fruits, vegetables, 
56.17 	meat, grain, and dairy for Minnesota school 
56.18 	children; assisting value-added agricultural 
56.19 	businesses to begin or expand, access new 
56.20 	markets, or diversify products; developing 
56.21 	urban agriculture; facilitating the start-up, 
56.22 	modernization, or expansion of other 
56.23 	beginning and transitioning farms including 
56.24 	loans under Minnesota Statutes, section 
56.25 	41B.056; sustainable agriculture on farm 
56.26 	research and demonstration; development or 
56.27 	expansion of food hubs and other alternative 
56.28 	community-based food distribution systems; 
56.29 	and research on bioenergy, biobased content, 
56.30 	or biobased formulated products and other 
56.31 	renewable energy development. The 
56.32 	commissioner may use up to 4.5 percent 
56.33 	of this appropriation for costs incurred to 
56.34 	administer the program. Any unencumbered 
56.35 	balance does not cancel at the end of the first 
56.36 	year and is available for the second year. 
57.1 	Notwithstanding Minnesota Statutes, section 
57.2 	16A.28, the appropriations encumbered 
57.3 	under contract on or before June 30, 2017, for 
57.4 	agricultural growth, research, and innovation 
57.5 	grants are available until June 30, 2019.
57.6 	The commissioner may use funds 
57.7 	appropriated for the agricultural growth, 
57.8 	research, and innovation program as provided 
57.9 	in this paragraph. The commissioner may 
57.10 	award grants to owners of Minnesota 
57.11 	facilities producing bioenergy, biobased 
57.12 	content, or a biobased formulated product; 
57.13 	to organizations that provide for on-station, 
57.14 	on-farm field scale research and outreach to 
57.15 	develop and test the agronomic and economic 
57.16 	requirements of diverse strands of prairie 
57.17 	plants and other perennials for bioenergy 
57.18 	systems; or to certain nongovernmental 
57.19 	entities. For the purposes of this paragraph, 
57.20 	"bioenergy" includes transportation fuels 
57.21 	derived from cellulosic material, as well as 
57.22 	the generation of energy for commercial heat, 
57.23 	industrial process heat, or electrical power 
57.24 	from cellulosic materials via gasification or 
57.25 	other processes. Grants are limited to 50 
57.26 	percent of the cost of research, technical 
57.27 	assistance, or equipment related to bioenergy, 
57.28 	biobased content, or biobased formulated 
57.29 	product production or $500,000, whichever 
57.30 	is less. Grants to nongovernmental entities 
57.31 	for the development of business plans and 
57.32 	structures related to community ownership 
57.33 	of eligible bioenergy facilities together may 
57.34 	not exceed $150,000. The commissioner 
57.35 	shall make a good-faith effort to select 
57.36 	projects that have merit and, when taken 
58.1 	together, represent a variety of bioenergy 
58.2 	technologies, biomass feedstocks, and 
58.3 	geographic regions of the state. Projects 
58.4 	must have a qualified engineer provide 
58.5 	certification on the technology and fuel 
58.6 	source. Grantees must provide reports at the 
58.7 	request of the commissioner.
58.8 	Of the amount appropriated for the 
58.9 	agricultural growth, research, and innovation 
58.10 	program in this subdivision, $1,000,000 the 
58.11 	first year and $1,000,000 the second year 
58.12 	are for distribution in equal amounts to each 
58.13 	of the state's county fairs to preserve and 
58.14 	promote Minnesota agriculture.
58.15 	Of the amount appropriated for the 
58.16 	agricultural growth, research, and innovation 
58.17 	program in this subdivision, $500,000 in 
58.18 	fiscal year 2016 and $1,500,000 in fiscal 
58.19 	year 2017 are for incentive payments 
58.20 	under Minnesota Statutes, sections 41A.16, 
58.21 	41A.17, and 41A.18. If the appropriation 
58.22 	exceeds the total amount for which all 
58.23 	producers are eligible in a fiscal year, the 
58.24 	balance of the appropriation is available 
58.25 	to the commissioner for the agricultural 
58.26 	growth, research, and innovation program. 
58.27 	Notwithstanding Minnesota Statutes, 
58.28 	section 16A.28, the first year appropriation 
58.29 	is available until June 30, 2017, and the 
58.30 	second year appropriation is available until 
58.31 	June 30, 2018. The commissioner may use 
58.32 	up to 4.5 percent of the appropriation for 
58.33 	administration of the incentive payment 
58.34 	programs.
59.1 	Of the amount appropriated for the 
59.2 	agricultural growth, research, and innovation 
59.3 	program in this subdivision, $250,000 
59.4 	the first year is for grants to communities 
59.5 	to develop or expand food hubs and 
59.6 	other alternative community-based food 
59.7 	distribution systems. Of this amount, 
59.8 	$50,000 is for the commissioner to consult 
59.9 	with existing food hubs, alternative 
59.10 	community-based food distribution systems, 
59.11 	and University of Minnesota Extension 
59.12 	to identify best practices for use by other 
59.13 	Minnesota communities. No later than 
59.14 	December 15, 2015, the commissioner must 
59.15 	report to the legislative committees with 
59.16 	jurisdiction over agriculture and health 
59.17 	regarding the status of emerging alternative 
59.18 	community-based food distribution systems 
59.19 	in the state along with recommendations 
59.20 	to eliminate any barriers to success. Any 
59.21 	unencumbered balance does not cancel at the 
59.22 	end of the first year and is available for the 
59.23 	second year. This is a onetime appropriation.
59.24 	$250,000 the first year and $250,000 the 
59.25 	second year are for grants that enable 
59.26 	retail petroleum dispensers to dispense 
59.27 	biofuels to the public in accordance with the 
59.28 	biofuel replacement goals established under 
59.29 	Minnesota Statutes, section 239.7911. A 
59.30 	retail petroleum dispenser selling petroleum 
59.31 	for use in spark ignition engines for vehicle 
59.32 	model years after 2000 is eligible for grant 
59.33 	money under this paragraph if the retail 
59.34 	petroleum dispenser has no more than 15 
59.35 	retail petroleum dispensing sites and each 
59.36 	site is located in Minnesota. The grant 
60.1 	money received under this paragraph must 
60.2 	be used for the installation of appropriate 
60.3 	technology that uses fuel dispensing 
60.4 	equipment appropriate for at least one fuel 
60.5 	dispensing site to dispense gasoline that is 
60.6 	blended with 15 percent of agriculturally 
60.7 	derived, denatured ethanol, by volume, and 
60.8 	appropriate technical assistance related to 
60.9 	the installation. A grant award must not 
60.10 	exceed 85 percent of the cost of the technical 
60.11 	assistance and appropriate technology, 
60.12 	including remetering of and retrofits for 
60.13 	retail petroleum dispensers and replacement 
60.14 	of petroleum dispenser projects. The 
60.15 	commissioner may use up to $35,000 of this 
60.16 	appropriation for administrative expenses. 
60.17 	The commissioner shall cooperate with 
60.18 	biofuel stakeholders in the implementation 
60.19 	of the grant program. The commissioner 
60.20 	must report to the legislative committees 
60.21 	with jurisdiction over agriculture policy and 
60.22 	finance by February 1 each year, detailing 
60.23 	the number of grants awarded under this 
60.24 	paragraph and the projected effect of the grant 
60.25 	program on meeting the biofuel replacement 
60.26 	goals under Minnesota Statutes, section 
60.27 	239.7911. These are onetime appropriations.
60.28 	$25,000 the first year and $25,000 the second 
60.29 	year are for grants to the Southern Minnesota 
60.30 	Initiative Foundation to promote local foods 
60.31 	through an annual event that raises public 
60.32 	awareness of local foods and connects local 
60.33 	food producers and processors with potential 
60.34 	buyers.

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

61.1 	Sec. 27. Laws 2015, First Special Session chapter 4, article 1, section 5, is amended to 
61.2 	read:
61.3 	Sec. 5. AVIAN INFLUENZA RESPONSE ACTIVITIES; EMERGENCY 
61.4 	PREPAREDNESS; APPROPRIATIONS AND TRANSFERS.
 61.5 	(a) $3,619,000 $519,000 is appropriated from the general fund in fiscal year 2016 to 
61.6 	the commissioner of agriculture for avian influenza emergency response activities. The 
61.7 	commissioner may use money appropriated under this paragraph to purchase necessary 
61.8 	euthanasia and composting equipment and to reimburse costs incurred by local units of 
61.9 	government directly related to avian influenza emergency response activities that are not 
61.10 	eligible for federal reimbursement. This appropriation is available the day following final 
61.11 	enactment until June 30, 2017.
61.12 	(b) $1,853,000 is appropriated from the general fund in fiscal year 2016 to the 
61.13 	Board of Animal Health for avian influenza emergency response activities. The Board 
61.14 	may use money appropriated under this paragraph to purchase necessary euthanasia and 
61.15 	composting equipment. any animal disease emergency response or planning activity, 
61.16 	including but not limited to:
61.17 	(1) the retention of staff trained in disease response;
61.18 	(2) costs associated with the relocation and expansion of the Minnesota Poultry 
61.19 	Testing Laboratory;
61.20 	(3) the identification of risk factors for disease transmission; and
61.21 	(4) the implementation of strategies to prevent or reduce the risk of disease 
61.22 	introduction and transmission.
61.23 	This appropriation is available the day following final enactment until June 30, 2017 2019.
61.24 	(c) $103,000 is appropriated from the general fund in fiscal year 2016 to the 
61.25 	commissioner of health for avian influenza emergency response activities. This 
61.26 	appropriation is available the day following final enactment until June 30, 2017.
61.27 	(d) $350,000 is appropriated from the general fund in fiscal year 2016 to the 
61.28 	commissioner of natural resources for sampling wild animals to detect and monitor the 
61.29 	avian influenza virus. This appropriation may also be used to conduct serology sampling, 
61.30 	in consultation with the Board of Animal Health and the University of Minnesota Pomeroy 
61.31 	Chair in Avian Health, from birds within a control zone and outside of a control zone. 
61.32 	This appropriation is available the day following final enactment until June 30, 2017.
61.33 	(e) $544,000 is appropriated from the general fund in fiscal year 2016 to the 
61.34 	commissioner of public safety to operate the State Emergency Operation Center in 
61.35 	coordination with the statewide avian influenza response activities. Appropriations 
61.36 	under this paragraph may also be used to support a staff person at the state's agricultural 
62.1 	incident command post in Willmar. This appropriation is available the day following final 
62.2 	enactment until June 30, 2017.
62.3 	(f) The commissioner of management and budget may transfer unexpended balances 
62.4 	from the appropriations in this section to any state agency for operating expenses related 
62.5 	to avian influenza emergency response activities. The commissioner of management and 
62.6 	budget must report each transfer to the chairs and ranking minority members of the senate 
62.7 	Committee on Finance and the house of representatives Committee on Ways and Means.
62.8 	(g) In addition to the transfers required under Laws 2015, chapter 65, article 1, 
62.9 	section 17, no later than September 30, 2015, the commissioner of management and 
62.10 	budget must transfer $4,400,000 from the fiscal year 2015 closing balance in the general 
62.11 	fund to the disaster assistance contingency account in Minnesota Statutes, section 12.221, 
62.12 	subdivision 6. This amount is available for avian influenza emergency responseeligible 
62.13 	activities as provided in Laws 2015, chapter 65, article 1, section 18, as amended.

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

62.15 	Sec. 28. GOOD FOOD ACCESS ADVISORY COMMITTEE.
 62.16 	The commissioner of agriculture and designating authorities must make their initial 
62.17 	appointments and designations by July 1, 2016, for the Good Food Access Advisory 
62.18 	Committee established under Minnesota Statutes, section 17.1018. The commissioner of 
62.19 	agriculture or the commissioner's designee must convene the first meeting of the Good 
62.20 	Food Access Advisory Committee by September 1, 2016.

62.21 	Sec. 29. FARMER-LENDER MEDIATION TASK FORCE.
 62.22 	The commissioner of agriculture must convene an advisory task force to provide 
62.23 	recommendations to the legislature regarding the state's Farmer-Lender Mediation Act. 
62.24 	The task force must be comprised of 14 members, including the commissioner or the 
62.25 	commissioner's designee, one farm advocate appointed by the commissioner who is 
62.26 	responsible for mediating debt between farmers and lenders, one adult farm business 
62.27 	management instructor appointed by the commissioner, and three farmers appointed by 
62.28 	the commissioner, at least one of whom is a beginning or nontraditional farmer and at 
62.29 	least one of whom has personal experience with the farmer-lender mediation program. 
62.30 	The remaining membership of the task force consists of one member appointed by each 
62.31 	of the following entities:
62.32 	(1) Minnesota Farm Bureau;
62.33 	(2) Minnesota Farmers Union;
62.34 	(3) Minnesota Bankers Association;
63.1 	(4) Independent Community Bankers of Minnesota;
63.2 	(5) Farm Credit Services - Minnesota State Federation;
63.3 	(6) Minnesota Credit Union Network;
63.4 	(7) Minnesota-South Dakota Equipment Dealers Association; and
63.5 	(8) University of Minnesota Extension.
63.6 	No later than February 1, 2017, the commissioner must report the task force's 
63.7 	recommendations to the legislative committees with jurisdiction over agriculture policy 
63.8 	and finance.

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

63.10 	Sec. 30. TRANSFER REQUIRED.
 63.11 	Of the amount appropriated from the general fund to the commissioner of agriculture 
63.12 	for transfer to the rural finance authority revolving loan account in Laws 2015, First Special 
63.13 	Session chapter 4, article 2, section 6, the commissioner of management and budget must 
63.14 	transfer $7,713,000 back to the general fund in fiscal year 2016. This is a onetime transfer.

63.15 	Sec. 31.  REPEALER.
 63.16 	Laws 2015, First Special Session chapter 4, article 2, section 81, is repealed.

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

63.18 	ARTICLE 3
63.19 	ENVIRONMENT AND NATURAL RESOURCES

63.20	Section 1. APPROPRIATIONS.
 	
63.21 	The sums shown in the columns marked "Appropriations" are added to the 
63.22 	appropriations in Laws 2015, First Special Session chapter 4, or appropriated to the 
63.23 	agencies and for the purposes specified in this article. The appropriations are from the 
63.24 	general fund, or another named fund, and are available for the fiscal year indicated for 
63.25 	each purpose. The figures "2016" and "2017" used in this article mean that the addition 
63.26 	to the appropriations listed under them are available for the fiscal year ending June 30, 
63.27 	2016, or June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second 
63.28 	year" is fiscal year 2017. Appropriations for fiscal year 2016 are effective the day 
63.29 	following final enactment.

63.30				APPROPRIATIONS
	
63.31				Available for the Year
	
64.1				Ending June 30
	
64.2					2016
		2017

64.3	Sec. 2. POLLUTION CONTROL AGENCY

64.4	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	2,620,000

64.5	Appropriations by Fund
	
64.6		2016
	2017
	
64.7	General
	-0-
	1,918,000
	
64.8	Environmental
	-0-
	702,000

64.9	Subd. 2.Water
 		-0-
		1,038,000
	
64.10 	$437,000 the second year is from the general 
64.11 	fund and $486,000 the second year is 
64.12 	from the environmental fund to meet the 
64.13 	increased demand for technical assistance 
64.14 	and review of municipal water infrastructure 
64.15 	projects that will be generated by increased 
64.16 	grant funding through the Public Facilities 
64.17 	Authority. This is a onetime appropriation 
64.18 	and is available until June 30, 2019.
64.19 	$115,000 the second year is for the working 
64.20 	lands program feasibility study and program 
64.21 	plan. This is a onetime appropriation and is 
64.22 	available until June 30, 2018.

64.23	Subd. 3.Land
 		-0-
		432,000
	
64.24 	$216,000 the second year is from the 
64.25 	general fund and $216,000 the second year 
64.26 	is from the environmental fund to manage 
64.27 	contaminated sediment projects at multiple 
64.28 	sites identified in the St. Louis River 
64.29 	remedial action plan to restore water quality 
64.30 	in the St. Louis River area of concern. This 
64.31 	amount is added to the base for fiscal years 
64.32 	2018, 2019, and 2020 only.

64.33
64.34	Subd. 4.Environmental Assistance and 
Cross-Media
 		-0-
		1,150,000
	
65.1 	$500,000 the second year is for SCORE 
65.2 	block grants to counties. This amount is in 
65.3 	addition to the amounts appropriated in Laws 
65.4 	2015, First Special Session chapter 4, article 
65.5 	3, section 2, subdivision 5. This is a onetime 
65.6 	appropriation.
65.7 	$650,000 the second year is to design 
65.8 	remedial actions and prepare bids for the 
65.9 	Waste Disposal Engineering Landfill in the 
65.10 	city of Andover in accordance with the 
65.11 	closed landfill  program under Minnesota 
65.12 	Statutes, sections 115B.39 to 115B.42. This 
65.13 	is a onetime appropriation.

65.14	Sec. 3. NATURAL RESOURCES

65.15	Subdivision 1.Total Appropriation
 	$
	2,269,000
	$
	14,432,000

65.16	Appropriations by Fund
	
65.17		2016
	2017
	
65.18	General
	1,599,000
	9,567,000
	
65.19	Natural Resources
	-0-
	4,755,000
	
65.20	Game and Fish
	670,000
	110,000
	
65.21 	The amounts that may be spent for each 
65.22 	purpose are specified in the following 
65.23 	subdivisions.

65.24	Subd. 2.Lands and Minerals Management
 		-0-
		200,000
	
65.25 	$200,000 the second year is to initiate, 
65.26 	in consultation with the school trust 
65.27 	lands director, a valuation process 
65.28 	and representative valuations for the 
65.29 	compensation of school trust lands required 
65.30 	by Minnesota Statutes, section 84.027, 
65.31 	subdivision 18, paragraph (b). By January 15, 
65.32 	2017, the commissioner must submit a report 
65.33 	to the chairs and ranking minority members 
65.34 	of the house of representatives and senate 
65.35 	committees and divisions with jurisdiction 
66.1 	over environment and natural resources 
66.2 	and education policy and finance on the 
66.3 	Department of Natural Resources' progress in 
66.4 	developing a valuation process, a description 
66.5 	of the process to identify representative 
66.6 	sample valuations, and the results of the 
66.7 	representative valuations of school trust 
66.8 	lands identified for compensation. This is a 
66.9 	onetime appropriation.

66.10	Subd. 3.Ecological and Water Resources
 		-0-
		612,000
	
66.11 	$187,000 the second year is for a grant to the 
66.12 	Middle-Snake-Tamarac Rivers Watershed 
66.13 	District to match equal funds from the North 
66.14 	Dakota State Water Commission and North 
66.15 	Dakota water boards to conduct hydraulic 
66.16 	modeling of alternative floodway options 
66.17 	for the reach including and upstream and 
66.18 	downstream of the Minnesota and North 
66.19 	Dakota agricultural levies in the vicinity 
66.20 	of Oslo, Minnesota. The modeling must 
66.21 	include evaluating removal of floodway 
66.22 	flow obstructions, channel obstructions, 
66.23 	transportation access, and equalization of 
66.24 	agricultural levy protection. The project must 
66.25 	be conducted in partnership with the border 
66.26 	township association group representing four 
66.27 	Minnesota townships and the city of Oslo 
66.28 	and the three adjacent townships in North 
66.29 	Dakota. This is a onetime appropriation and 
66.30 	is available until June 30, 2018.
66.31 	$200,000 the second year is for a grant to 
66.32 	the Koronis Lake Association for purposes 
66.33 	of removing and preventing aquatic invasive 
66.34 	species. This is a onetime appropriation.
67.1 	$225,000 the second year is from the water 
67.2 	management account in the natural resources 
67.3 	fund for water appropriation monitoring, 
67.4 	modeling, and reporting for the Cold Spring 
67.5 	Creek area as required under this act. This 
67.6 	is a onetime appropriation and is available 
67.7 	until June 30, 2022.

67.8	Subd. 4.Forest Management
 		-0-
		3,500,000
	
67.9 	$2,500,000 the second year is for private 
67.10 	forest management assistance. The agency 
67.11 	base is increased by $2,000,000 in fiscal year 
67.12 	2018 and thereafter.
67.13 	$1,000,000 the second year is from the 
67.14 	forest management investment account in the 
67.15 	natural resources fund for reforestation on 
67.16 	state lands. This is a onetime appropriation.

67.17	Subd. 5.Parks and Trails Management
 		-0-
		6,459,000

67.18	Appropriations by Fund
	
67.19		2016
	2017
	
67.20	General
	-0-
	2,929,000
	
67.21	Natural Resources
	-0-
	3,530,000
	
67.22 	$2,800,000 the second year is a onetime 
67.23 	appropriation.
67.24 	$2,300,000 the second year is from the state 
67.25 	parks account in the natural resources fund. 
67.26 	Of this amount, $1,300,000 is onetime, 
67.27 	of which $1,150,000 is for strategic park 
67.28 	acquisition.
67.29 	$20,000 the second year is from the natural 
67.30 	resources fund to design and erect signs 
67.31 	marking the David Dill trail designated in 
67.32 	this act. Of this amount, $10,000 is from the 
67.33 	snowmobile trails and enforcement account 
67.34 	and $10,000 is from the all-terrain vehicle 
67.35 	account. This is a onetime appropriation.
68.1 	$100,000 the second year is for the 
68.2 	improvement of the infrastructure for 
68.3 	sanitary sewer service at the Woodenfrog 
68.4 	Campground in Kabetogama State Forest. 
68.5 	This is a onetime appropriation.
68.6 	$29,000 the second year is for computer 
68.7 	programming related to the transfer-on-death 
68.8 	title changes for watercraft. This is a onetime 
68.9 	appropriation.
68.10 	$210,000 the first year is from the water 
68.11 	recreation account in the natural resources 
68.12 	fund for implementation of Minnesota 
68.13 	Statutes, section 86B.532, established in this 
68.14 	act. This is a onetime appropriation. The 
68.15 	commissioner of natural resources shall seek 
68.16 	federal and other nonstate funds to reimburse 
68.17 	the department for the initial costs of 
68.18 	producing and distributing carbon monoxide 
68.19 	boat warning labels. All amounts collected 
68.20 	under this paragraph shall be deposited into 
68.21 	the water recreation account.
68.22 	$1,000,000 the second year is from the 
68.23 	natural resources fund for a grant to Lake 
68.24 	County for construction, including bridges, 
68.25 	of the Prospectors ATV Trail System 
68.26 	linking the communities of Ely, Babbitt, 
68.27 	Embarrass, and Tower; Bear Head Lake 
68.28 	and Lake Vermilion-Soudan Underground 
68.29 	Mine State Parks; the Taconite State Trail; 
68.30 	and the Lake County Regional ATV Trail 
68.31 	System. Of this amount, $900,000 is from 
68.32 	the all-terrain vehicle account, $50,000 is 
68.33 	from the off-highway motorcycle account, 
68.34 	and $50,000 is from the off-road vehicle 
68.35 	account. This is a onetime appropriation.

69.1	Subd. 6.Fish and Wildlife Management
 		-0-
		50,000
	
69.2 	$50,000 the second year is from the game 
69.3 	and fish fund for fish virus surveillance, 
69.4 	including fish testing in high-risk waters used 
69.5 	for bait production, to ensure the availability 
69.6 	of safe bait. This is a onetime appropriation.

69.7	Subd. 7.Enforcement
 		670,000
		-0-
	
69.8 	$670,000 the first year is from the game and 
69.9 	fish fund for aviation services. This is a 
69.10 	onetime appropriation.

69.11	Subd. 8.Operations Support
 		1,599,000
		3,611,000

69.12	Appropriations by Fund
	
69.13		2016
	2017
	
69.14	General
	1,599,000
	3,551,000
	
69.15	Game and Fish
	-0-
	60,000
	
69.16 	$1,599,000 the first year and $2,801,000 
69.17 	the second year are for legal costs related 
69.18 	to the NorthMet mining project. Of this 
69.19 	amount, up to $1,289,000 the second year 
69.20 	may be transferred to other agencies for legal 
69.21 	costs associated with the NorthMet mining 
69.22 	project. This is a onetime appropriation and 
69.23 	is available until June 30, 2019.
69.24 	$750,000 the second year is for a grant to 
69.25 	Wolf Ridge Environmental Learning Center 
69.26 	to construct a new dormitory, renovate an old 
69.27 	dormitory, construct a maintenance building, 
69.28 	and construct a small classroom building 
69.29 	with parking. The grant is not available 
69.30 	until the commissioner of management 
69.31 	and budget determines that an amount 
69.32 	sufficient to complete the project is available 
69.33 	from nonstate sources. This is a onetime 
70.1 	appropriation and is available until June 30, 
70.2 	2019.
70.3 	$60,000 the second year is from the 
70.4 	heritage enhancement account for the 
70.5 	department's Southeast Asian unit to 
70.6 	conduct outreach efforts to the Southeast 
70.7 	Asian community in Minnesota, including 
70.8 	outreach efforts to refugees from Burma, to 
70.9 	encourage participation in outdoor education 
70.10 	opportunities and activities. This is a onetime 
70.11 	appropriation.

70.12
70.13	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES
 	$
	-0-
	$
	479,000
	
70.14 	$479,000 the second year is for the 
70.15 	development of a detailed plan to implement 
70.16 	a working lands watershed restoration 
70.17 	program to incentivise the establishment and 
70.18 	maintenance of perennial crops that includes 
70.19 	the following:
70.20 	(1) a process for selecting pilot watersheds 
70.21 	that are expected to result in the greatest 
70.22 	water quality improvements and exhibit 
70.23 	readiness to participate in the program;
70.24 	(2) an assessment of the quantity of 
70.25 	agricultural land that is expected to be 
70.26 	eligible for the program in each watershed;
70.27 	(3) an assessment of landowner interest in 
70.28 	participating in the program;
70.29 	(4) an assessment of the contract terms and 
70.30 	any recommendations for changes to the 
70.31 	terms, including consideration of variable 
70.32 	payment rates for lands of different priority 
70.33 	or type;
71.1 	(5) an assessment of the opportunity to 
71.2 	leverage federal funds through the program 
71.3 	and recommendations on how to maximize 
71.4 	the use of federal funds for assistance to 
71.5 	establish perennial crops;
71.6 	(6) an assessment of how other state 
71.7 	programs could complement the program;
71.8 	(7) an estimate of water quality improvements 
71.9 	expected to result from implementation in 
71.10 	pilot watersheds;
71.11 	(8) an assessment of how to best integrate 
71.12 	program implementation with existing 
71.13 	conservation requirements and develop 
71.14 	recommendations on harvest practices and 
71.15 	timing to benefit wildlife production;
71.16 	(9) an assessment of the potential viability 
71.17 	and water quality benefit of cover crops used 
71.18 	in biomass processing facilities;
71.19 	(10) a timeline for implementation, 
71.20 	coordinated to the extent possible with 
71.21 	proposed biomass processing facilities; and
71.22 	(11) a projection of funding sources needed 
71.23 	to complete implementation.
71.24 	This is a onetime appropriation and is 
71.25 	available until June 30, 2018.
71.26 	The board shall coordinate development of 
71.27 	the working lands watershed restoration plan 
71.28 	with stakeholders and the commissioners 
71.29 	of natural resources, agriculture, and the 
71.30 	Pollution Control Agency. The board must 
71.31 	submit an interim report by October 15, 
71.32 	2017, and the feasibility study and program 
71.33 	plan by February 1, 2018, to the chairs and 
71.34 	ranking minority members of the legislative 
72.1 	committees and divisions with jurisdiction 
72.2 	over agriculture, natural resources, and 
72.3 	environment policy and finance and to the 
72.4 	Clean Water Council.

72.5	Sec. 5. LEGISLATURE
 	$
	25,000
	$
	-0-
	
72.6 	$25,000 the first year is from the Minnesota 
72.7 	future resources fund to the Legislative 
72.8 	Coordinating Commission for the Aggregate 
72.9 	Resources Task Force established in this 
72.10 	act. This is a onetime appropriation and is 
72.11 	available until June 30, 2018.

72.12	Sec. 6. ADMINISTRATION
 	$
	250,000
	$
	-0-
	
72.13 	$250,000 the first year is from the state forest 
72.14 	suspense account in the permanent school 
72.15 	fund for the school trust lands director to 
72.16 	initiate real estate development projects 
72.17 	on school trust lands as determined by the 
72.18 	school trust lands director. This is a onetime 
72.19 	appropriation.

72.20 	Sec. 7. Minnesota Statutes 2014, section 17.4982, subdivision 18a, is amended to read:
72.21 		Subd. 18a.Nonindigenous species. "Nonindigenous species" means a species of 
72.22 	fish or other aquatic life that is:
72.23 	(1) not known to have been historically present in the state;
72.24 	(2) not known to be naturally occurring in a particular part of the state; or
72.25 	(3) listed designated by rule as a prohibited or regulated invasive species.

72.26 	Sec. 8. Minnesota Statutes 2014, section 84.027, subdivision 13, is amended to read:
72.27 		Subd. 13.Game and fish rules. (a) The commissioner of natural resources may 
72.28 	adopt rules under sections 97A.0451 to 97A.0459 and this subdivision that are authorized 
72.29 	under:
72.30 	(1) chapters 97A, 97B, and 97C to set open seasons and areas, to close seasons and 
72.31 	areas, to select hunters for areas, to provide for tagging and registration of game and fish, to 
72.32 	prohibit or allow taking of wild animals to protect a species, to prevent or control wildlife 
73.1 	disease, to open or close bodies of water or portions of bodies of water for night bow 
73.2 	fishing, and to prohibit or allow importation, transportation, or possession of a wild animal;
73.3 	(2) sections 84.093, 84.15, and 84.152 to set seasons for harvesting wild ginseng 
73.4 	roots and wild rice and to restrict or prohibit harvesting in designated areas; and
73.5 	(3) section 84D.12 to list designate prohibited invasive species, regulated invasive 
73.6 	species, and unregulated nonnative species, and to list infested waters.
73.7 	(b) If conditions exist that do not allow the commissioner to comply with sections 
73.8 	97A.0451 to 97A.0459, including the need to adjust season variables on an annual basis 
73.9 	based upon current biological and harvest data, the commissioner may adopt a rule 
73.10 	under this subdivision by submitting the rule to the attorney general for review under 
73.11 	section 97A.0455, publishing a notice in the State Register and filing the rule with the 
73.12 	secretary of state and the Legislative Coordinating Commission, and complying with 
73.13 	section 97A.0459, and including a statement of the conditions and a copy of the rule in the 
73.14 	notice. The conditions for opening a water body or portion of a water body for night bow 
73.15 	fishing under this section may include the need to temporarily open the area to evaluate 
73.16 	compatibility of the activity on that body of water prior to permanent rulemaking. The 
73.17 	notice may be published after it is received from the attorney general or five business days 
73.18 	after it is submitted to the attorney general, whichever is earlier.
73.19 	(c) Rules adopted under paragraph (b) are effective upon publishing in the State 
73.20 	Register and may be effective up to seven days before publishing and filing under 
73.21 	paragraph (b), if:
73.22 	(1) the commissioner of natural resources determines that an emergency exists;
73.23 	(2) the attorney general approves the rule; and
73.24 	(3) for a rule that affects more than three counties the commissioner publishes the 
73.25 	rule once in a legal newspaper published in Minneapolis, St. Paul, and Duluth, or for a 
73.26 	rule that affects three or fewer counties the commissioner publishes the rule once in a legal 
73.27 	newspaper in each of the affected counties.
73.28 	(d) Except as provided in paragraph (e), a rule published under paragraph (c), clause 
73.29 	(3), may not be effective earlier than seven days after publication.
73.30 	(e) A rule published under paragraph (c), clause (3), may be effective the day the 
73.31 	rule is published if the commissioner gives notice and holds a public hearing on the rule 
73.32 	within 15 days before publication.
73.33 	(f) The commissioner shall attempt to notify persons or groups of persons affected 
73.34 	by rules adopted under paragraphs (b) and (c) by public announcements, posting, and 
73.35 	other appropriate means as determined by the commissioner.
74.1 	(g) Notwithstanding section 97A.0458, a rule adopted under this subdivision is 
74.2 	effective for the period stated in the notice but not longer than 18 months after the rule is 
74.3 	effective.

74.4 	Sec. 9. Minnesota Statutes 2015 Supplement, section 84.027, subdivision 13a, is 
74.5 	amended to read:
74.6 		Subd. 13a.Game and fish expedited permanent rules. (a) In addition to the 
74.7 	authority granted in subdivision 13, the commissioner of natural resources may adopt rules 
74.8 	under section 14.389 that are authorized under:
74.9 	(1) chapters 97A, 97B, and 97C to describe zone or permit area boundaries, to 
74.10 	designate fish spawning beds or fish preserves, to select hunters or anglers for areas, 
74.11 	to provide for registration of game or fish, to prevent or control wildlife disease, or to 
74.12 	correct errors or omissions in rules that do not have a substantive effect on the intent or 
74.13 	application of the original rule; or
74.14 	(2) section 84D.12 to list designate prohibited invasive species, regulated invasive 
74.15 	species, and unregulated nonnative species.
74.16 	(b) The commissioner of natural resources may adopt rules under section 14.389 
74.17 	that are authorized under chapters 97A, 97B, and 97C, for purposes in addition to those 
74.18 	listed in paragraph (a), clause (1), subject to the notice and public hearing provisions 
74.19 	of section 14.389, subdivision 5.

74.20 	Sec. 10. Minnesota Statutes 2014, section 84.091, subdivision 2, is amended to read:
74.21 		Subd. 2.License required; exception exemptions. (a) Except as provided in 
74.22 	paragraph (b) this subdivision, a person may not harvest, buy, sell, transport, or possess 
74.23 	aquatic plants without a license required under this chapter. A license shall be issued in 
74.24 	the same manner as provided under the game and fish laws.
74.25 	(b) A resident under the age of 18 years may harvest wild rice without a license, if 
74.26 	accompanied by a person with a wild rice license.
74.27 	(c) Tribal band members who possess a valid tribal identification card from a 
74.28 	federally recognized tribe located in Minnesota are deemed to have a license to harvest 
74.29 	wild rice under this section.

74.30 	Sec. 11. Minnesota Statutes 2014, section 84.798, subdivision 2, is amended to read:
74.31 		Subd. 2.Exemptions. Registration is not required for an off-road vehicle that is:
74.32 	(1) owned and used by the United States, an Indian tribal government, the state, 
74.33 	another state, or a political subdivision; or
75.1 	(2) registered in another state or country and has not been in this state for more than 
75.2 	30 consecutive days; or
75.3 	(3) operated with a valid state trail pass according to section 84.8035.

75.4 	EFFECTIVE DATE. This section is effective January 1, 2017.

75.5 	Sec. 12. Minnesota Statutes 2014, section 84.8035, is amended to read:
75.6 	84.8035 NONRESIDENT OFF-ROAD VEHICLE STATE TRAIL PASS.
75.7 		Subdivision 1.Pass required; fee. (a) Except as provided under paragraph (c), a 
75.8 	nonresident person may not operate an off-road vehicle on a state or grant-in-aid off-road 
75.9 	vehicle trail or use area unless the vehicle displays a nonresident an off-road vehicle state 
75.10 	trail pass sticker issued according to this section. The pass must be viewable by a peace 
75.11 	officer, a conservation officer, or an employee designated under section 84.0835.
75.12 	(b) The fee for an annual pass is $20. The pass is valid from January 1 through 
75.13 	December 31. The fee for a three-year pass is $30. The commissioner of natural resources 
75.14 	shall issue a pass upon application and payment of the fee. Fees collected under this 
75.15 	section, except for the issuing fee for licensing agents, shall be deposited in the state 
75.16 	treasury and credited to the off-road vehicle account in the natural resources fund and, 
75.17 	except for the electronic licensing system commission established by the commissioner 
75.18 	under section 84.027, subdivision 15, must be used for grants-in-aid to counties and 
75.19 	municipalities for off-road vehicle organizations to construct and maintain off-road 
75.20 	vehicle trails and use areas.
75.21 	(c) A nonresident An off-road vehicle state trail pass is not required for:
75.22 	(1) an off-road vehicle that is owned and used by the United States, another state, 
75.23 	or a political subdivision thereof that is exempt from registration under section 84.798, 
75.24 	subdivision 2;
75.25 	(2) a person operating an off-road vehicle only on the portion of a trail that is owned 
75.26 	by the person or the person's spouse, child, or parent; or
75.27 	(3) a nonresident person operating an off-road vehicle that is registered according 
75.28 	to section 84.798.
75.29 	(d) The fee for an annual nonresident off-road vehicle state trail pass is $20. The 
75.30 	nonresident pass is valid from January 1 through December 31. The fee for a nonresident 
75.31 	three-year pass is $30.
75.32 	(e) The fee for a resident off-road vehicle state trail pass is $20. The resident pass is 
75.33 	valid for 30 consecutive days after the date of issuance.
76.1 		Subd. 2.License agents. The commissioner may appoint agents to issue and 
76.2 	sell nonresident off-road vehicle state trail passes. The commissioner may revoke the 
76.3 	appointment of an agent at any time. The commissioner may adopt additional rules as 
76.4 	provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted 
76.5 	by the commissioner for accounting and handling of passes pursuant to section 97A.485, 
76.6 	subdivision 11. An agent shall promptly deposit and remit all money received from the 
76.7 	sale of the passes, exclusive of the issuing fee, to the commissioner.
76.8 		Subd. 3.Issuance of passes. The commissioner and agents shall issue and sell 
76.9 	nonresident off-road vehicle state trail passes. The commissioner shall also make the 
76.10 	passes available through the electronic licensing system established under section 84.027, 
76.11 	subdivision 15.
76.12 		Subd. 4.Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass 
76.13 	shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees for 
76.14 	passes issued by the commissioner shall be deposited in the off-road vehicle account in the 
76.15 	natural resources fund and retained for the operation of the electronic licensing system.
76.16 		Subd. 5.Duplicate passes. The commissioner and agents shall issue a duplicate 
76.17 	pass to persons whose pass is lost or destroyed using the process established under section 
76.18 	97A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate nonresident
76.19 	off-road vehicle state trail pass is $4, with an issuing fee of 50 cents.

76.20 	EFFECTIVE DATE. This section is effective January 1, 2017.

76.21 	Sec. 13. Minnesota Statutes 2014, section 84D.01, subdivision 2, is amended to read:
76.22 		Subd. 2.Aquatic macrophyte. "Aquatic macrophyte" means macro algae or a 
76.23 	macroscopic nonwoody plant, either a submerged, floating leafed, floating, or emergent 
76.24 	plant that naturally grows in water.

76.25 	Sec. 14. Minnesota Statutes 2014, section 84D.05, subdivision 1, is amended to read:
76.26 		Subdivision 1.Prohibited activities. A person may not possess, import, purchase, 
76.27 	sell, propagate, transport, or introduce a prohibited invasive species, except:
76.28 	(1) under a permit issued by the commissioner under section 84D.11;
76.29 	(2) in the case of purple loosestrife, as provided by sections 18.75 to 18.88;
76.30 	(3) under a restricted species permit issued under section 17.457;
76.31 	(4) when being transported to the department, or another destination as the 
76.32 	commissioner may direct, in a sealed container for purposes of identifying the species 
76.33 	or reporting the presence of the species;
77.1 	(5) when being transported for disposal as part of a harvest or control activity 
77.2 	when specifically authorized under a permit issued by the commissioner according to 
77.3 	section 103G.615, when being transported for disposal as specified under a commercial 
77.4 	fishing license issued by the commissioner according to section 97A.418, 97C.801, 
77.5 	97C.811, 97C.825, 97C.831, or 97C.835, or when being transported as specified by the 
77.6 	commissioner;
77.7 	(6) when the specimen has been lawfully acquired dead and, in the case of plant 
77.8 	species, all seeds are removed or are otherwise secured in a sealed container;
77.9 	(7) in the form of herbaria or other preserved specimens;
77.10 	(8) (6) when being removed from watercraft and equipment, or caught while angling, 
77.11 	and immediately returned to the water from which they came; or
77.12 	(9) (7) as the commissioner may otherwise prescribe by rule.

77.13 	Sec. 15. [84D.075] NONNATIVE SPECIES, AQUATIC PLANTS, AND 
77.14 	AQUATIC MACROPHYTES; PARTS AND LIFE STAGE.
77.15 	A law relating to a nonnative species, aquatic plant, or aquatic macrophyte applies in 
77.16 	the same manner to a part of a nonnative species, aquatic plant, or aquatic macrophyte, 
77.17 	whether alive or dead, and to any life stage or form.

77.18 	Sec. 16. Minnesota Statutes 2014, section 84D.09, subdivision 2, is amended to read:
77.19 		Subd. 2.Exceptions. Unless otherwise prohibited by law, a person may transport 
77.20 	aquatic macrophytes:
77.21 	(1) that are duckweeds in the family Lemnaceae;
77.22 	(2) for purposes of constructing shooting or observation blinds in amounts sufficient 
77.23 	for that purpose, provided that the aquatic macrophytes are emergent and cut above the 
77.24 	waterline;
77.25 	(3) when legally purchased or traded by or from commercial or hobbyist sources for 
77.26 	aquarium, wetland or lakeshore restoration, or ornamental purposes;
77.27 	(4) when harvested for personal or commercial use if in a motor vehicle;
77.28 	(5) to the department, or another destination as the commissioner may direct, in a 
77.29 	sealed container for purposes of identifying a species or reporting the presence of a species;
77.30 	(6) that are wild rice harvested under section 84.091;
77.31 	(7) in the form of fragments of emergent aquatic macrophytes incidentally transported 
77.32 	in or on watercraft or decoys used for waterfowl hunting during the waterfowl season; or
77.33 	(8) when removing water-related equipment from waters of the state for purposes of 
77.34 	cleaning off aquatic macrophytes before leaving a water access site.; or
78.1 	(9) when being transported from riparian property to a legal disposal site that is at 
78.2 	least 100 feet from any surface water, ditch, or seasonally flooded land, provided the 
78.3 	aquatic macrophytes are in a covered commercial vehicle specifically designed and used 
78.4 	for hauling trash.

78.5 	Sec. 17. Minnesota Statutes 2014, section 84D.10, subdivision 4, is amended to read:
78.6 		Subd. 4.Persons transporting water-related equipment. (a) When leaving 
78.7 	waters a water of the state, a person must drain water-related equipment holding water 
78.8 	and live wells and bilges by removing the drain plug before transporting the water-related 
78.9 	equipment off the water access site or riparian property. For the purposes of this 
78.10 	paragraph, "transporting" includes moving water-related equipment over land between 
78.11 	connected or unconnected water bodies, but does not include moving water-related 
78.12 	equipment within the immediate area required for loading and preparing the water-related 
78.13 	equipment for transport over land.
78.14 	(b) Drain plugs, bailers, valves, or other devices used to control the draining of water 
78.15 	from ballast tanks, bilges, and live wells must be removed or opened while transporting 
78.16 	water-related equipment.
78.17 	(c) Emergency response vehicles and equipment may be transported on a public road 
78.18 	with the drain plug or other similar device replaced only after all water has been drained 
78.19 	from the equipment upon leaving the water body.
78.20 	(d) Portable bait containers used by licensed aquatic farms, portable bait containers 
78.21 	when fishing through the ice except on waters listed infested for viral hemorrhagic 
78.22 	septicemia, and marine sanitary systems are exempt from this subdivision.
78.23 	(e) A person must not dispose of bait in waters of the state.
78.24 	(f) A boat lift, dock, swim raft, or associated equipment that has been removed 
78.25 	from any water body may not be placed in another water body until a minimum of 21 
78.26 	days have passed.
78.27 	(g) A person who transports water that is appropriated from noninfested surface 
78.28 	water bodies and that is transported by a commercial vehicle, excluding watercraft, or 
78.29 	commercial trailer, which vehicle or trailer is specifically designed and used for water 
78.30 	hauling, is exempt from paragraphs (a) and (b), provided that the person does not discharge 
78.31 	the transported water to other surface waters or within 100 feet of a surface water body.
78.32 	(h) A person transporting water from noninfested surface water bodies for 
78.33 	firefighting or emergencies that threaten human safety or property is exempt from 
78.34 	paragraphs (a) and (b).

79.1 	Sec. 18. Minnesota Statutes 2014, section 84D.108, is amended by adding a 
79.2 	subdivision to read:
79.3 		Subd. 2a.Lake Minnetonka pilot study. (a) The commissioner may issue an 
79.4 	additional permit to service providers to return to Lake Minnetonka water-related 
79.5 	equipment with zebra mussels attached after the equipment has been seasonally 
79.6 	stored, serviced, or repaired. The permit must include verification and documentation 
79.7 	requirements and any other conditions the commissioner deems necessary.
79.8 	(b) Water-related equipment with zebra mussels attached may be returned only 
79.9 	to Lake Minnetonka (DNR Division of Waters number 27-0133) by service providers 
79.10 	permitted under subdivision 1.
79.11 	(c) The service provider's place of business must be within the Lake Minnetonka 
79.12 	Conservation District as established according to sections 103B.601 to 103B.645.
79.13 	(d) A service provider applying for a permit under this subdivision must, if approved 
79.14 	for a permit and before the permit is valid, furnish a corporate surety bond in favor of the 
79.15 	state for $50,000 payable upon violation of this chapter.
79.16 	(e) This subdivision expires December 1, 2018.

79.17 	Sec. 19. Minnesota Statutes 2015 Supplement, section 84D.11, subdivision 1, is 
79.18 	amended to read:
79.19 		Subdivision 1.Prohibited invasive species. (a) The commissioner may issue a 
79.20 	permit for the propagation, possession, importation, purchase, or transport of a prohibited 
79.21 	invasive species for the purposes of disposal, decontamination, control, research, or 
79.22 	education.
79.23 	(b) The commissioner may issue a permit as provided under section 84D.108, 
79.24 	subdivision 2a, to a service provider to allow water-related equipment to be placed back 
79.25 	into the same body of water after being seasonally stored, serviced, or repaired by the 
79.26 	service provider. This paragraph expires December 1, 2018.

79.27 	Sec. 20. Minnesota Statutes 2014, section 84D.13, subdivision 4, is amended to read:
79.28 		Subd. 4.Warnings; civil citations. After appropriate training, conservation 
79.29 	officers, other licensed peace officers, and other department personnel designated by the 
79.30 	commissioner may issue warnings or citations to a person who:
79.31 	(1) unlawfully transports prohibited invasive species or aquatic macrophytes;
79.32 	(2) unlawfully places or attempts to place into waters of the state water-related 
79.33 	equipment that has aquatic macrophytes or prohibited invasive species attached;
80.1 	(3) intentionally damages, moves, removes, or sinks a buoy marking, as prescribed 
80.2 	by rule, Eurasian watermilfoil;
80.3 	(4) fails to remove plugs, open valves, and drain water from water-related equipment 
80.4 	before leaving waters of the state or when transporting water-related equipment as 
80.5 	provided in section 84D.10, subdivision 4; or
80.6 	(5) transports infested water, in violation of rule, off riparian property.;
80.7 	(6) fails to comply with a decontamination order when a decontamination unit 
80.8 	is available on site;
80.9 	(7) fails to complete decontamination of water-related equipment or to remove 
80.10 	invasive species from water-related equipment by the date specified on a tagging notice 
80.11 	and order; or
80.12 	(8) fails to complete the aquatic invasive species offender training course required 
80.13 	under section 86B.13.

80.14 	Sec. 21. Minnesota Statutes 2015 Supplement, section 84D.13, subdivision 5, is 
80.15 	amended to read:
80.16 		Subd. 5.Civil penalties. (a) A civil citation issued under this section must impose 
80.17 	the following penalty amounts:
80.18 	(1) for transporting aquatic macrophytes in violation of section 84D.09, $100;
80.19 	(2) for placing or attempting to place into waters of the state water-related equipment 
80.20 	that has aquatic macrophytes attached, $200;
80.21 	(3) for unlawfully possessing or transporting a prohibited invasive species other 
80.22 	than an aquatic macrophyte, $500;
80.23 	(4) for placing or attempting to place into waters of the state water-related equipment 
80.24 	that has prohibited invasive species attached when the waters are not listed by the 
80.25 	commissioner as being infested with that invasive species, $500;
80.26 	(5) for intentionally damaging, moving, removing, or sinking a buoy marking, as 
80.27 	prescribed by rule, Eurasian watermilfoil, $100;
80.28 	(6) for failing to have drain plugs or similar devices removed or opened while 
80.29 	transporting water-related equipment or for failing to remove plugs, open valves, and 
80.30 	drain water from water-related equipment, other than marine sanitary systems, before 
80.31 	leaving waters of the state, $100;
80.32 	(7) for transporting infested water off riparian property without a permit as required 
80.33 	by rule, $200; and
80.34 	(8) for failing to have aquatic invasive species affirmation displayed or available for 
80.35 	inspection as provided in sections 86B.401 and 97C.301, subdivision 2a, $25.;
81.1 	(9) for failing to comply with a decontamination order when a decontamination unit 
81.2 	is available on site, $250;
81.3 	(10) for failing to complete decontamination of water-related equipment or to 
81.4 	remove invasive species from water-related equipment by the date specified on a tagging 
81.5 	notice and order, $250; and
81.6 	(11) for failing to complete the aquatic invasive species offender training course 
81.7 	required under section 86B.13, $25.
81.8 	(b) A civil citation that is issued to a person who has one or more prior convictions 
81.9 	or final orders for violations of this chapter is subject to twice the penalty amounts listed 
81.10 	in paragraph (a).

81.11 	Sec. 22. Minnesota Statutes 2014, section 85.015, subdivision 13, is amended to read:
81.12 		Subd. 13.Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton, 
81.13 	Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St. 
81.14 	Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to 
81.15 	McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in 
81.16 	Itasca County and there terminate;
81.17 	(2) the C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County 
81.18 	and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand 
81.19 	Marais in Cook County, thence northeasterly to the international boundary in the vicinity 
81.20 	of the north shore of Lake Superior, and there terminate;
81.21 	(3) The Grand Marais to International Falls Trail shall originate in Grand Marais 
81.22 	in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area, 
81.23 	to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to 
81.24 	Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St. 
81.25 	Louis County to International Falls in Koochiching County, and there terminatethe David 
81.26 	Dill/Arrowhead Trail shall originate at International Falls in Koochiching County and 
81.27 	extend southeasterly through the Pelican Lake area in St. Louis County, intersecting with 
81.28 	the Taconite Trail west of Tower; then the David Dill/Taconite Trail continues easterly 
81.29 	to Ely in St. Louis County; then the David Dill/Tomahawk Trail extends southeasterly, 
81.30 	outside the Boundary Waters Canoe Area, to the area of Little Marais in Lake County and 
81.31 	there terminates at the intersection with the C. J. Ramstad/Northshore Trail; and
81.32 	(4) the Matthew Lourey Trail shall originate in Duluth in St. Louis County and 
81.33 	extend southerly to Chengwatana State Forest in Pine County.
81.34 	(b) The trails shall be developed primarily for riding and hiking.
82.1 	(c) In addition to the authority granted in subdivision 1, lands and interests in lands 
82.2 	for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring 
82.3 	any land or interest in land by eminent domain the commissioner of administration shall 
82.4 	obtain the approval of the governor. The governor shall consult with the Legislative 
82.5 	Advisory Commission before granting approval. Recommendations of the Legislative 
82.6 	Advisory Commission shall be advisory only. Failure or refusal of the commission to 
82.7 	make a recommendation shall be deemed a negative recommendation.

82.8 	Sec. 23. Minnesota Statutes 2014, section 86B.005, is amended by adding a 
82.9 	subdivision to read:
82.10 		Subd. 4a.Enclosed accommodation compartment. "Enclosed accommodation 
82.11 	compartment" means one contiguous space, surrounded by boat structure that contains 
82.12 	all of the following:
82.13 	(1) designated sleeping accommodations;
82.14 	(2) a galley area with sink; and
82.15 	(3) a head compartment.

82.16 	Sec. 24. Minnesota Statutes 2014, section 86B.005, is amended by adding a 
82.17 	subdivision to read:
82.18 		Subd. 4b.Enclosed occupancy compartment. "Enclosed occupancy compartment" 
82.19 	means one contiguous enclosed space surrounded by boat structure that may be occupied 
82.20 	by a person.

82.21 	Sec. 25. Minnesota Statutes 2014, section 86B.005, is amended by adding a 
82.22 	subdivision to read:
82.23 		Subd. 8a.Marine carbon monoxide detection system. "Marine carbon monoxide 
82.24 	detection system" means a device or system that meets the requirements of the American 
82.25 	Boat and Yacht Council Standard A-24, July, 2015, for carbon monoxide detection systems.

82.26 	Sec. 26. [86B.532] CARBON MONOXIDE DETECTION DEVICE 
82.27 	REQUIREMENTS.
82.28 		Subdivision 1.Requirements. (a) No motorboat that has an enclosed 
82.29 	accommodation compartment may be operated on any waters of the state unless the 
82.30 	motorboat is equipped with a functioning marine carbon monoxide detection system 
82.31 	installed according to the manufacturer's instructions.
83.1 	(b) After the effective date of this section, no new motorboat that has an enclosed 
83.2 	accommodation compartment may be sold or offered for sale in Minnesota unless the 
83.3 	motorboat is equipped with a new functioning marine carbon monoxide detection system 
83.4 	installed according to the manufacturer's instructions.
83.5 		Subd. 2.Boating safety courses. All state-sponsored boating safety courses and all 
83.6 	boating safety courses that require state approval by the commissioner must incorporate 
83.7 	information about the dangers of being overcome by carbon monoxide poisoning while on 
83.8 	or behind a motorboat and how to prevent that poisoning.
83.9 		Subd. 3.Carbon monoxide poisoning warning labels. (a) No gasoline-powered 
83.10 	motorboat that has an enclosed occupancy compartment may be operated on any waters 
83.11 	of the state unless labels warning of carbon monoxide dangers are affixed in the vicinity 
83.12 	of: the aft reboarding/stern area, the steering station, and in or at the entrance to any 
83.13 	enclosed occupancy compartment. 
83.14 	(b) For a motorboat sold by a dealer, the dealer must ensure that specified warning 
83.15 	labels have been affixed before completion of the transaction.
83.16 	(c) Warning labels approved by the American Boat and Yacht Council, National 
83.17 	Marine Manufacturers Association, or the commissioner satisfy the requirements of this 
83.18 	section when installed as specified.
83.19 		Subd. 4.License agents; distribution. The commissioner shall mail the 
83.20 	information and labels to all owners of motorboats that are 19 feet and greater in length 
83.21 	the first year. The commissioner must also provide license agents with informational 
83.22 	brochures and warning labels about the dangers of carbon monoxide poisoning while 
83.23 	boating. A license agent must make the brochure and labels available to motorboat owners 
83.24 	and make efforts to inform new owners of the requirement. The commissioner shall 
83.25 	highlight the new requirements on the watercraft renewal reminder postcard for three 
83.26 	consecutive three-year license cycles and in the Minnesota Boating Guide. The brochure 
83.27 	must instruct motorboat owners to place the labels according to subdivision 3, and inform 
83.28 	motorboat owners of carbon monoxide dangers of gasoline-powered generators.
83.29 		Subd. 5.Safety warning. A first violation of this section shall not result in a 
83.30 	penalty, but is punishable only by a safety warning. A second or subsequent violation 
83.31 	is a petty misdemeanor.

83.32 	EFFECTIVE DATE. This section is effective May 1, 2017.

83.33 	Sec. 27. [86B.841] TRANSFER-ON-DEATH TITLE TO WATERCRAFT.
83.34 		Subdivision 1.Titled as transfer-on-death. A natural person who is the owner of a 
83.35 	watercraft may have the watercraft titled in transfer-on-death or TOD form by including in 
84.1 	the application for the certificate of title a designation of a beneficiary or beneficiaries to 
84.2 	whom the watercraft must be transferred on death of the owner or the last survivor of joint 
84.3 	owners with rights of survivorship, subject to the rights of secured parties.
84.4 		Subd. 2.Designation of beneficiary. A watercraft is registered in transfer-on-death 
84.5 	form by designating on the certificate of title the name of the owner and the names 
84.6 	of joint owners with identification of rights of survivorship, followed by the words 
84.7 	"transfer-on-death to (name of beneficiary or beneficiaries)." The designation "TOD" may 
84.8 	be used instead of "transfer-on-death." A title in transfer-on-death form is not required 
84.9 	to be supported by consideration, and the certificate of title in which the designation 
84.10 	is made is not required to be delivered to the beneficiary or beneficiaries in order for 
84.11 	the designation to be effective.
84.12 		Subd. 3.Interest of beneficiary. The transfer-on-death beneficiary or beneficiaries 
84.13 	have no interest in the watercraft until the death of the owner or the last survivor of joint 
84.14 	owners with rights of survivorship. A beneficiary designation may be changed at any time 
84.15 	by the owner or by all joint owners with rights of survivorship, without the consent of the 
84.16 	beneficiary or beneficiaries, by filing an application for a new certificate of title.
84.17 		Subd. 4.Vesting of ownership in beneficiary. Ownership of a watercraft titled in 
84.18 	transfer-on-death form vests in the designated beneficiary or beneficiaries on the death of 
84.19 	the owner or the last of the joint owners with rights of survivorship, subject to the rights of 
84.20 	secured parties. The transfer-on-death beneficiary or beneficiaries who survive the owner 
84.21 	may apply for a new certificate of title to the watercraft upon submitting a certified death 
84.22 	record of the owner of the watercraft. If no transfer-on-death beneficiary or beneficiaries 
84.23 	survive the owner of a watercraft, the watercraft must be included in the probate estate 
84.24 	of the deceased owner. A transfer of a watercraft to a transfer-on-death beneficiary or 
84.25 	beneficiaries is not a testamentary transfer.
84.26 		Subd. 5.Rights of creditors. (a) This section does not limit the rights of any 
84.27 	secured party or creditor of the owner of a watercraft against a transfer-on-death 
84.28 	beneficiary or beneficiaries.
84.29 	(b) The state or a county agency with a claim or lien authorized by section 246.53, 
84.30 	256B.15, 261.04, or 270C.63, is a creditor for purposes of this subdivision. A claim 
84.31 	or lien under those sections continues to apply against the designated beneficiary or 
84.32 	beneficiaries after the transfer under this section if other assets of the deceased owner's 
84.33 	estate are insufficient to pay the amount of the claim. The claim or lien continues to apply 
84.34 	to the watercraft until the designated beneficiary sells or transfers it to a person against 
84.35 	whom the claim or lien does not apply and who did not have actual notice or knowledge 
84.36 	of the claim or lien.

85.1 	Sec. 28. Minnesota Statutes 2014, section 88.01, is amended by adding a subdivision 
85.2 	to read:
85.3 		Subd. 28.Prescribed burn. "Prescribed burn" means a fire that is intentionally 
85.4 	ignited, managed, and controlled by an entity meeting certification requirements established 
85.5 	by the commissioner for the purpose of managing vegetation. A prescribed burn that has 
85.6 	exceeded its prescribed boundaries and requires suppression action is considered a wildfire.

85.7 	Sec. 29. Minnesota Statutes 2014, section 88.22, subdivision 1, is amended to read:
85.8 		Subdivision 1.Imposition of restrictions. (a) Road closure. When the 
85.9 	commissioner of natural resources shall determine that conditions conducive to wildfire 
85.10 	hazards exist in the wildfire areas of the state and that the presence of persons in the 
85.11 	wildlife areas tends to aggravate wildfire hazards, render forest trails impassable by 
85.12 	driving thereon during wet seasons and hampers the effective enforcement of state timber 
85.13 	trespass and game laws, the commissioner may by written order, close any road or trail 
85.14 	leading into any land used for any conservation purposes, to all modes of travel except 
85.15 	that considered essential such as residents traveling to and from their homes or in other 
85.16 	cases to be determined by the authorized forest officers assigned to guard the area.
85.17 	(b) Burning ban. The commissioner may also, upon such determination, by written 
85.18 	order, suspend the issuance of permits for open fires or prescribed burns, revoke or suspend 
85.19 	the operation of a permit previously issued and, to the extent the commissioner deems 
85.20 	necessary, prohibit the building of all or some kinds of open fires or prescribed burns in all 
85.21 	or any part of a wildfire area regardless of whether a permit is otherwise required; and the 
85.22 	commissioner also may, by written order, prohibit smoking except at places of habitation 
85.23 	or automobiles or other enclosed vehicles properly equipped with an efficient ash tray.

85.24 	Sec. 30. Minnesota Statutes 2014, section 89.0385, is amended to read:
85.25 	89.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST 
85.26 	CERTIFICATION.
85.27 	(a) The commissioner shall certify the total costs incurred for forest management, 
85.28 	forest improvement, and road improvement on state-managed lands during each fiscal 
85.29 	year. The commissioner shall distribute forest management receipts credited to various 
85.30 	accounts according to this section.
85.31 	(b) The amount of the certified costs incurred for forest management activities on 
85.32 	state lands shall be transferred from the account where receipts are deposited to the forest 
85.33 	management investment account in the natural resources fund, except for those costs 
85.34 	certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and 
86.1 	revenue reports, throughout the fiscal year, with final certification and reconciliation after 
86.2 	each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.
86.3 	(c) The amount of the certified costs incurred for forest management activities 
86.4 	on nonstate lands managed under a good neighbor or joint powers agreement must be 
86.5 	transferred from the account where receipts are deposited to the forest management 
86.6 	investment account in the natural resources fund. Transfers for costs incurred may occur 
86.7 	after projects or timber permits are finalized.

86.8 	Sec. 31. Minnesota Statutes 2014, section 93.0015, subdivision 3, is amended to read:
86.9 		Subd. 3.Expiration.  The committee expires June 30, 2016 2026.

86.10 	Sec. 32. Minnesota Statutes 2014, section 93.2236, is amended to read:
86.11 	93.2236 MINERALS MANAGEMENT ACCOUNT.
86.12 	(a) The minerals management account is created as an account in the natural 
86.13 	resources fund. Interest earned on money in the account accrues to the account. Money in 
86.14 	the account may be spent or distributed only as provided in paragraphs (b) and (c).
86.15 	(b) If the balance in the minerals management account exceeds $3,000,000 on March 
86.16 	31, June 30, September 30, or December 31, the amount exceeding $3,000,000 must 
86.17 	be distributed to the permanent school fund, the permanent university fund, and taxing 
86.18 	districts as provided in section 93.22, subdivision 1, paragraph (c). The amount distributed 
86.19 	to each fund must be in the same proportion as the total mineral lease revenue received 
86.20 	in the previous biennium from school trust lands, university lands, and lands held by the 
86.21 	state in trust for taxing districts.
86.22 	(c) Subject to appropriation by the legislature, money in the minerals management 
86.23 	account may be spent by the commissioner of natural resources for mineral resource 
86.24 	management and projects to enhance future mineral income and promote new mineral 
86.25 	resource opportunities.

86.26 	Sec. 33. Minnesota Statutes 2014, section 94.3495, subdivision 2, is amended to read:
86.27 		Subd. 2.Classes of land; definitions. (a) The classes of public land that may be 
86.28 	involved in an expedited exchange under this section are:
86.29 	(1) Class 1 land, which for the purpose of this section is Class A land as defined in 
86.30 	section 94.342, subdivision 1, except for:;
86.31 	(i) school trust land as defined in section 92.025; and
86.32 	(ii) university land granted to the state by acts of Congress;
87.1 	(2) Class 2 land, which for the purpose of this section is Class B land as defined in 
87.2 	section 94.342, subdivision 2; and
87.3 	(3) Class 3 land, which for the purpose of this section is all land owned in fee by 
87.4 	a governmental subdivision of the state.
87.5 	(b) "School trust land" has the meaning given in section 92.025.
87.6 	(c) "University land" means land granted to the state by acts of Congress for 
87.7 	university purposes.

87.8 	Sec. 34. Minnesota Statutes 2014, section 94.3495, subdivision 3, is amended to read:
87.9 		Subd. 3.Valuation of land. (a) In an exchange of Class 1 land for Class 2 or 3 land, 
87.10 	the value of all the land shall be determined by the commissioner of natural resources, 
87.11 	but the county board must approve the value determined for the Class 2 land, and the 
87.12 	governmental subdivision of the state must approve the value determined for the Class 3 
87.13 	land. In an exchange of Class 2 land for Class 3 land, the value of all the land shall be 
87.14 	determined by the county board of the county in which the land lies, but the governmental 
87.15 	subdivision of the state must approve the value determined for the Class 3 land.
87.16 	(b) To determine the value of the land, the parties to the exchange may either (1) 
87.17 	cause the land to be appraised, utilize the valuation process provided under section 
87.18 	84.0272, subdivision 3, or obtain a market analysis from a qualified real estate broker or 
87.19 	(2) determine the value for each 40-acre tract or lot, or a portion thereof, using the most 
87.20 	current township or county assessment schedules for similar land types from the county 
87.21 	assessor of the county in which the lands are located. Merchantable timber value must
87.22 	should be determined and considered in finalizing valuation of the lands.
87.23 	(b) All (c) Except for school trust lands and university lands, the lands exchanged 
87.24 	under this section shall be exchanged only for lands of at least substantially equal value. 
87.25 	For the purposes of this subdivision, "substantially equal value" has the meaning given 
87.26 	under section 94.343, subdivision 3, paragraph (b). No payment is due either party if the 
87.27 	lands, other than school trust lands or university lands,  are of substantially equal value but 
87.28 	are not of the same value.
87.29 	(d) School trust lands and university lands exchanged under this section must be 
87.30 	exchanged only for lands of equal or greater value.

87.31 	Sec. 35. Minnesota Statutes 2014, section 94.3495, subdivision 7, is amended to read:
87.32 		Subd. 7.Reversionary interest; Mineral and water power rights and other 
87.33 	reservations. (a) All deeds conveying land given in an expedited land exchange under 
88.1 	this section shall include a reverter that provides that title to the land automatically reverts 
88.2 	to the conveying governmental unit if:
88.3 	(1) the receiving governmental unit sells, exchanges, or otherwise transfers title of 
88.4 	the land within 40 years of the date of the deed conveying ownership; and
88.5 	(2) there is no prior written approval for the transfer from the conveying 
88.6 	governmental unit. The authority for granting approval is the commissioner of natural 
88.7 	resources for former Class 1 land, the county board for former Class 2 land, and the 
88.8 	governing body for former Class 3 land.
88.9 	(b) Class 1 land given in exchange is subject to the reservation provisions of section 
88.10 	94.343, subdivision 4. Class 2 land given in exchange is subject to the reservation 
88.11 	provisions of section 94.344, subdivision 4. County fee land given in exchange is subject 
88.12 	to the reservation provisions of section 373.01, subdivision 1, paragraph (g).

88.13 	Sec. 36. Minnesota Statutes 2014, section 97A.075, subdivision 7, is amended to read:
88.14 		Subd. 7.Wolf licenses; account established. (a) For purposes of this subdivision, 
88.15 	"wolf license" means a license or permit issued under section 97A.475, subdivision 2, 
88.16 	clause (20); 3, paragraph (a), clause (16); or 20, paragraph (b).
88.17 	(b) A wolf management and monitoring account is created in the game and fish fund. 
88.18 	Revenue from wolf licenses must be credited to the wolf management and monitoring 
88.19 	account and is appropriated to the commissioner only for wolf management, research, 
88.20 	damage control, enforcement, and education. Notwithstanding any other law to the 
88.21 	contrary, money credited to the account may not be used to pay indirect costs or agency 
88.22 	shared services.

88.23 	Sec. 37. Minnesota Statutes 2014, section 97A.405, subdivision 2, is amended to read:
88.24 		Subd. 2.Personal possession. (a) A person acting under a license or traveling from 
88.25 	an area where a licensed activity was performed must have in personal possession either: 
88.26 	(1) the proper license, if the license has been issued to and received by the person; (2) a 
88.27 	driver's license or Minnesota identification card that bears a valid designation of the proper 
88.28 	lifetime license, as provided under section 171.07, subdivision 19; or (2) (3) the proper 
88.29 	license identification number or stamp validation, if the license has been sold to the person 
88.30 	by electronic means but the actual license has not been issued and received.
88.31 	(b) If possession of a license or a license identification number is required, a person 
88.32 	must exhibit, as requested by a conservation officer or peace officer, either: (1) the 
88.33 	proper license if the license has been issued to and received by the person; (2) a driver's 
88.34 	license or Minnesota identification card that bears a valid designation of the proper 
89.1 	lifetime license, as provided under section 171.07, subdivision 19; or (2) (3) the proper 
89.2 	license identification number or stamp validation and a valid state driver's license, state 
89.3 	identification card, or other form of identification provided by the commissioner, if the 
89.4 	license has been sold to the person by electronic means but the actual license has not been 
89.5 	issued and received. A person charged with violating the license possession requirement 
89.6 	shall not be convicted if the person produces in court or the office of the arresting officer, 
89.7 	the actual license previously issued to that person, which was valid at the time of arrest, 
89.8 	or satisfactory proof that at the time of the arrest the person was validly licensed. Upon 
89.9 	request of a conservation officer or peace officer, a licensee shall write the licensee's name 
89.10 	in the presence of the officer to determine the identity of the licensee.
89.11 	(c) Except as provided in paragraph (a), clause (2), if the actual license has been 
89.12 	issued and received, a receipt for license fees, a copy of a license, or evidence showing the 
89.13 	issuance of a license, including the license identification number or stamp validation, does 
89.14 	not entitle a licensee to exercise the rights or privileges conferred by a license.
89.15 	(d) A license issued electronically and not immediately provided to the licensee shall 
89.16 	be mailed to the licensee within 30 days of purchase of the license. A pictorial migratory 
89.17 	waterfowl, pheasant, trout and salmon, or walleye stamp shall be provided to the licensee 
89.18 	after purchase of a stamp validation only if the licensee pays an additional fee that covers 
89.19 	the costs of producing and mailing a pictorial stamp. A pictorial turkey stamp may be 
89.20 	purchased for a fee that covers the costs of producing and mailing the pictorial stamp. 
89.21 	Notwithstanding section 16A.1283, the commissioner may, by written order published in 
89.22 	the State Register, establish fees for providing the pictorial stamps. The fees must be set in 
89.23 	an amount that does not recover significantly more or less than the cost of producing and 
89.24 	mailing the stamps. The fees are not subject to the rulemaking provisions of chapter 14, 
89.25 	and section 14.386 does not apply.

89.26 	EFFECTIVE DATE. This section is effective January 1, 2018, or on the date 
89.27 	the Department of Public Safety implements the Minnesota Licensing and Registration 
89.28 	System (MNLARS), whichever occurs first.

89.29 	Sec. 38. Minnesota Statutes 2014, section 97A.465, is amended by adding a 
89.30 	subdivision to read:
89.31 		Subd. 8.Nonresident active members of National Guard. A nonresident that is 
89.32 	an active member of the state's National Guard may obtain a resident license to take fish or 
89.33 	game. This subdivision does not apply to the taking of moose or elk.

90.1 	Sec. 39. Minnesota Statutes 2014, section 171.07, is amended by adding a subdivision 
90.2 	to read:
90.3 		Subd. 19.Resident lifetime game and fish license. (a) The department shall 
90.4 	maintain in its records information transmitted electronically from the commissioner of 
90.5 	natural resources identifying each person to whom the commissioner has issued a resident 
90.6 	lifetime license under section 97A.473. The records transmitted from the Department of 
90.7 	Natural Resources must contain:
90.8 	(1) the full name and date of birth as required for the driver's license or identification 
90.9 	card;
90.10 	(2) the person's driver's license or identification card number;
90.11 	(3) the category of lifetime license issued under section 97A.473; and
90.12 	(4) the Department of Natural Resources customer identification number.
90.13 	(b) The department may delete records described in paragraph (a) if they have not 
90.14 	been matched to a driver's license or identification card record within seven years after 
90.15 	transmission to the department.
90.16 	(c) Except as provided in paragraph (b), the department shall include, on all drivers' 
90.17 	licenses or Minnesota identification cards issued to a person who holds a lifetime license, 
90.18 	a graphic or written designation of the lifetime license, and the category of the lifetime 
90.19 	license.
90.20 	(d) If a person with a lifetime license under section 97A.473 applies for a driver's 
90.21 	license or Minnesota identification card before that information has been transmitted to the 
90.22 	department, the department may accept a copy of the license issued under section 97A.473 
90.23 	as proof of its issuance and shall then follow the procedures in paragraph (c).

90.24 	EFFECTIVE DATE. This section is effective January 1, 2018, or on the date 
90.25 	the Department of Public Safety implements the Minnesota Licensing and Registration 
90.26 	System (MNLARS), whichever occurs first.

90.27 	Sec. 40. Laws 2014, chapter 312, article 12, section 6, subdivision 5, as amended by 
90.28 	Laws 2015, First Special Session chapter 4, article 3, section 11, is amended to read:

90.29
90.30	Subd. 5.Fish and Wildlife 
Management
 				-0-
		2,412,000
	
90.31 	$3,000 in 2015 is from the heritage 
90.32 	enhancement account in the game and fish 
90.33 	fund for a report on aquatic plant management 
90.34 	permitting policies for the management 
90.35 	of narrow-leaved and hybrid cattail in a 
91.1 	range of basin types across the state. The 
91.2 	report shall be submitted to the chairs and 
91.3 	ranking minority members of the house of 
91.4 	representatives and senate committees with 
91.5 	jurisdiction over environment and natural 
91.6 	resources by December 15, 2014, and include 
91.7 	recommendations for any necessary changes 
91.8 	in statutes, rules, or permitting procedures. 
91.9 	This is a onetime appropriation.
91.10 	$9,000 in 2015 is from the game and fish 
91.11 	fund for the commissioner, in consultation 
91.12 	with interested parties, agencies, and other 
91.13 	states, to develop a detailed restoration plan 
91.14 	to recover the historical native population of 
91.15 	bobwhite quail in Minnesota for its ecological 
91.16 	and recreational benefits to the citizens of the 
91.17 	state. The commissioner shall conduct public 
91.18 	meetings in developing the plan. No later 
91.19 	than January 15, 2015, the commissioner 
91.20 	must report on the plan's progress to the 
91.21 	legislative committees with jurisdiction over 
91.22 	environment and natural resources policy 
91.23 	and finance. This is a onetime appropriation.
91.24 	$2,000,000 in 2015 is from the game and 
91.25 	fish fund for shooting sports facility grants 
91.26 	under Minnesota Statutes, section 87A.10. 
91.27 	The commissioner may spend up to $50,000 
91.28 	of this appropriation to administer the grant. 
91.29 	This is a onetime appropriation and is 
91.30 	available until June 30, 2017.
91.31 	$400,000 in 2015 is from the heritage 
91.32 	enhancement account in the game and fish 
91.33 	fund for hunter and angler recruitment 
91.34 	and retention activities and grants to local 
91.35 	chapters of Let's Go Fishing of Minnesota 
92.1 	to provide community outreach to senior 
92.2 	citizens, youth, and veterans and for the costs 
92.3 	associated with establishing and recruiting 
92.4 	new chapters. The grants must be matched 
92.5 	with cash or in-kind contributions from 
92.6 	nonstate sources. Of this amount, $25,000 
92.7 	is for Asian Outdoor Heritage for youth 
92.8 	fishing recruitment efforts and outreach in 
92.9 	the metropolitan area. The commissioner 
92.10 	shall establish a grant application process 
92.11 	that includes a standard for ownership 
92.12 	of equipment purchased under the grant 
92.13 	program and contract requirements that 
92.14 	cover the disposition of purchased equipment 
92.15 	if the grantee no longer exists. Any 
92.16 	equipment purchased with state grant money 
92.17 	must be specified on the grant application 
92.18 	and approved by the commissioner. The 
92.19 	commissioner may spend up to three percent 
92.20 	of the appropriation to administer the grant. 
92.21 	This is a onetime appropriation and is 
92.22 	available until June 30, 2016 2017.

92.23 	Sec. 41. Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 2, 
92.24 	is amended to read:

92.25
92.26	Subd. 2.Land and Mineral Resources 
Management
 		6,461,000
		5,521,000

92.27	Appropriations by Fund
	
92.28		2016
	2017
	
92.29	General
	1,585,000
	1,585,000
	
92.30	Natural Resources
	3,332,000
	3,392,000
	
92.31	Game and Fish
	344,000
	344,000
	
92.32	Remediation
	1,000,000
	-0-
	
92.33	Permanent School
	200,000
	200,000
	
92.34 	$68,000 the first year and $68,000 the 
92.35 	second year are for minerals cooperative 
92.36 	environmental research, of which $34,000 
93.1 	the first year and $34,000 the second year are 
93.2 	available only as matched by $1 of nonstate 
93.3 	money for each $1 of state money. The 
93.4 	match may be cash or in-kind.
93.5 	$251,000 the first year and $251,000 the 
93.6 	second year are for iron ore cooperative 
93.7 	research. Of this amount, $200,000 each year 
93.8 	is from the minerals management account 
93.9 	in the natural resources fund. $175,000 the 
93.10 	first year and $175,000 the second year are 
93.11 	available only as matched by $1 of nonstate 
93.12 	money for each $1 of state money. The match 
93.13 	may be cash or in-kind. Any unencumbered 
93.14 	balance from the first year does not cancel 
93.15 	and is available in the second year.
93.16 	$2,755,000 the first year and $2,815,000 
93.17 	the second year are from the minerals 
93.18 	management account in the natural resources 
93.19 	fund for use as provided in Minnesota 
93.20 	Statutes, section 93.2236, paragraph (c), 
93.21 	for mineral resource management, projects 
93.22 	to enhance future mineral income, and 
93.23 	projects to promote new mineral resource 
93.24 	opportunities.
93.25 	$200,000 the first year and $200,000 the 
93.26 	second year are from the state forest suspense 
93.27 	account in the permanent school fund to 
93.28 	accelerate land exchanges, land sales, and 
93.29 	commercial leasing of school trust lands and 
93.30 	to identify, evaluate, and lease construction 
93.31 	aggregate located on school trust lands. This 
93.32 	appropriation is to be used for securing 
93.33 	long-term economic return from the 
93.34 	school trust lands consistent with fiduciary 
94.1 	responsibilities and sound natural resources 
94.2 	conservation and management principles.
94.3 	Notwithstanding Minnesota Statutes, section 
94.4 	115B.20, $1,000,000 the first year is from 
94.5 	the dedicated account within the remediation 
94.6 	fund for the purposes of Minnesota Statutes, 
94.7 	section 115B.20, subdivision 2, clause (4), 
94.8 	to acquire salt lands as described under 
94.9 	Minnesota Statutes, section 92.05, within 
94.10 	Bear Head Lake State Park. This is a onetime 
94.11 	appropriation and is available until June 30, 
94.12 	2018.

94.13 	Sec. 42. Laws 2015, First Special Session chapter 4, article 3, section 3, subdivision 5, 
94.14 	is amended to read:

94.15	Subd. 5.Parks and Trails Management
 		74,064,000
		73,650,000

94.16	Appropriations by Fund
	
94.17		2016
	2017
	
94.18	General
	24,967,000
	24,427,000
	
94.19	Natural Resources
	46,831,000
	46,950,000
	
94.20	Game and Fish
	2,266,000
	2,273,000
	
94.21 	$1,075,000 the first year and $1,075,000 the 
94.22 	second year are from the water recreation 
94.23 	account in the natural resources fund for 
94.24 	enhancing public water access facilities.
94.25 	$5,740,000 the first year and $5,740,000 the 
94.26 	second year are from the natural resources 
94.27 	fund for state trail, park, and recreation area 
94.28 	operations. This appropriation is from the 
94.29 	revenue deposited in the natural resources 
94.30 	fund under Minnesota Statutes, section 
94.31 	297A.94, paragraph (e), clause (2).
94.32 	$1,005,000 the first year and $1,005,000 the 
94.33 	second year are from the natural resources 
94.34 	fund for park and trail grants to local units of 
95.1 	government on land to be maintained for at 
95.2 	least 20 years for the purposes of the grants. 
95.3 	This appropriation is from the revenue 
95.4 	deposited in the natural resources fund 
95.5 	under Minnesota Statutes, section 297A.94, 
95.6 	paragraph (e), clause (4). Any unencumbered 
95.7 	balance does not cancel at the end of the first 
95.8 	year and is available for the second year. Up 
95.9 	to 2.5 percent of this appropriation may be 
95.10 	used to administer the grants.
95.11 	$8,424,000 the first year and $8,424,000 
95.12 	the second year are from the snowmobile 
95.13 	trails and enforcement account in the 
95.14 	natural resources fund for the snowmobile 
95.15 	grants-in-aid program. Any unencumbered 
95.16 	balance does not cancel at the end of the first 
95.17 	year and is available for the second year.
95.18 	$1,360,000 the first year and $1,360,000 
95.19 	the second year are from the natural 
95.20 	resources fund for the off-highway vehicle 
95.21 	grants-in-aid program. Of this amount, 
95.22 	$1,210,000 each year is from the all-terrain 
95.23 	vehicle account; and $150,000 each year is 
95.24 	from the off-highway motorcycle account. 
95.25 	Any unencumbered balance does not cancel 
95.26 	at the end of the first year and is available for 
95.27 	the second year.
95.28 	$75,000 the first year and $75,000 the second 
95.29 	year are from the cross-country ski account 
95.30 	in the natural resources fund for grooming 
95.31 	and maintaining cross-country ski trails in 
95.32 	state parks, trails, and recreation areas.
95.33 	$250,000 the first year and $250,000 the 
95.34 	second year are from the state land and 
95.35 	water conservation account (LAWCON) 
96.1 	in the natural resources fund for priorities 
96.2 	established by the commissioner for eligible 
96.3 	state projects and administrative and 
96.4 	planning activities consistent with Minnesota 
96.5 	Statutes, section 84.0264, and the federal 
96.6 	Land and Water Conservation Fund Act. 
96.7 	Any unencumbered balance does not cancel 
96.8 	at the end of the first year and is available for 
96.9 	the second year.
96.10 	$968,000 the first year and $968,000 the 
96.11 	second year are from the off-road vehicle 
96.12 	account in the natural resources fund. Of 
96.13 	this amount, $568,000 each year is for parks 
96.14 	and trails management for off-road vehicle 
96.15 	purposes; $325,000 each year is for the 
96.16 	off-road vehicle grant in aid program; and 
96.17 	$75,000 each year is for a new full-time 
96.18 	employee position or contract in northern 
96.19 	Minnesota to work in conjunction with the 
96.20 	Minnesota Four-Wheel Drive Association 
96.21 	to address off-road vehicle touring routes 
96.22 	and other issues related to off-road vehicle 
96.23 	activities. Of this appropriation, the $325,000 
96.24 	each year is onetime.
96.25 	$65,000 the first year is from the water 
96.26 	recreation account in the natural resources 
96.27 	fund to cooperate with local units of 
96.28 	government in marking routes and 
96.29 	designating river accesses and campsites 
96.30 	under Minnesota Statutes, section 85.32. 
96.31 	This is a onetime appropriation and is 
96.32 	available until June 30, 2019.
96.33 	$190,000 the first year is for a grant to the 
96.34 	city of Virginia for the additional cost of 
96.35 	supporting a trail due to the rerouting of 
97.1 	U.S. Highway No. 53. This is a onetime 
97.2 	appropriation and is available until June 30, 
97.3 	2019.
97.4 	$50,000 the first year is for development of 
97.5 	a master plan for the Mississippi Blufflands 
97.6 	Trail, including work on possible extensions 
97.7 	or connections to other state or regional 
97.8 	trails. This is a onetime appropriation that is 
97.9 	available until June 30, 2017.
97.10 	$61,000 from the natural resources fund the 
97.11 	first year is for a grant to the city of East 
97.12 	Grand Forks for payment under a reciprocity 
97.13 	agreement for the Red River State Recreation 
97.14 	Area.
97.15 	$500,000 the first year is for restoration or 
97.16 	replacement of a historic trestle bridge in 
97.17 	Blackduck. This is a onetime appropriation 
97.18 	and is available until June 30, 2019.
97.19 	The base for parks and trails operations in 
97.20 	the natural resources fund in fiscal year 2018 
97.21 	and thereafter is $46,450,000.

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

97.23 	Sec. 43. Laws 2015, First Special Session chapter 4, article 4, section 131, is amended 
97.24 	to read:
97.25 	Sec. 131. SURPLUS STATE LAND SALES.
 97.26 	The school trust lands director shall identify, in consultation with the commissioner 
97.27 	of natural resources, at least $5,000,000 in state-owned lands suitable for sale or exchange 
97.28 	with school trust lands. The lands identified shall not be within a unit of the outdoor 
97.29 	recreation system under Minnesota Statutes, section 86A.05, an administrative site, or 
97.30 	trust land. The commissioner shall sell or exchange at least $3,000,000 worth of lands 
97.31 	identified under this section by June 30, 2017. Land exchanged under this section may 
97.32 	be exchanged in accordance with Minnesota Statutes, section 94.3495. The value of 
97.33 	the surplus land exchanged shall serve as compensation to the permanent school fund 
97.34 	as provided under Minnesota Statutes, section 84.027, subdivision 18, paragraph (b). 
98.1 	Notwithstanding the restrictions on sale of riparian land and the public sale provisions 
98.2 	under Minnesota Statutes, sections 92.45, 94.09, and 94.10, the commissioner may 
98.3 	offer the surplus land, including land bordering public water, for public or private sale. 
98.4 	Notwithstanding Minnesota Statutes, section 94.16, subdivision 3, or any other law to the 
98.5 	contrary, the amount an amount equal to 90 percent of the proceeds from the sale of lands 
98.6 	that exceeds the actual expenses of selling the lands must be deposited in the school trust 
98.7 	lands account and used to extinguish the school trust interest as provided under Minnesota 
98.8 	Statutes, section 92.83, on school trust lands that have public water access sites or old 
98.9 	growth forests located on them. Notwithstanding Minnesota Statutes, section 92.83, the 
98.10 	remaining ten percent of the proceeds must be used to fund transactional and legal work 
98.11 	associated with the Boundary Waters Canoe Area Wilderness land exchange and sale 
98.12 	projects under Minnesota Statutes, sections 92.80 and 92.82.

98.13 	Sec. 44. COLD SPRING WATER APPROPRIATION PERMITS; REPORT.
 98.14 	(a) The commissioner of natural resources shall amend the city of Cold Spring's 
98.15 	water appropriation permit to allow an increase in the city's water withdrawal of 100 
98.16 	million gallons per year from city wells 4, 5, and 6, provided a combined reduction of 
98.17 	ten million gallons per year is made from city well 3 or water appropriations under any 
98.18 	permits held by brewing companies in the Cold Spring Creek area. The city and any other 
98.19 	permit holder with permit modifications made under this section must comply with all 
98.20 	existing reporting requirements and demonstrate that increased pumping does not result in 
98.21 	violations of the Safe Drinking Water Act. The increases under this section are available 
98.22 	on an interim basis, not to exceed five years, to allow the city to establish a long-term 
98.23 	water supply solution for the city and area businesses.
98.24 	(b) The commissioner must conduct necessary monitoring of stream flow and water  
98.25 	levels and develop a groundwater model to determine the amount of water that can be  
98.26 	sustainably pumped in the area of Cold Spring Creek for area businesses, agriculture, and  
98.27 	city needs. Beginning July 1, 2017, the commissioner must submit an annual progress  
98.28 	report to the chairs and ranking minority members of the house of representatives and  
98.29 	senate committees and divisions with jurisdiction over environment and natural resources.  
98.30 	The commissioner must submit a final report by January 15, 2022.

98.31 	Sec. 45. MARINE CARBON MONOXIDE DETECTORS; REPORT.
 98.32 	The commissioner of natural resources shall submit a report to the legislature 
98.33 	by November 1, 2017. The report must outline any issues encountered relating 
98.34 	to implementation of Minnesota Statutes, section 86B.532, any changes to marine 
99.1 	manufacturing industry standards relating to carbon monoxide, the availability of plug-in 
99.2 	or battery-powered marine certified carbon monoxide detectors, and best practices in 
99.3 	preventing carbon monoxide poisoning relating to motorboat operation, including the 
99.4 	feasibility of requiring carbon monoxide detectors that are more sensitive in measuring 
99.5 	carbon monoxide than required in this act.

99.6 	Sec. 46. PRESCRIBED BURN REQUIREMENTS; REPORT.
 99.7 	The commissioner of natural resources, in cooperation with prescribed burning 
99.8 	professionals, nongovernmental organizations, and local and federal governments, must 
99.9 	develop criteria for certifying an entity to conduct a prescribed burn under a general 
99.10 	permit. The certification requirements must include training, equipment, and experience 
99.11 	requirements and include an apprentice program to allow entities without experience to 
99.12 	become certified. The commissioner must establish provisions for decertifying entities. 
99.13 	The commissioner must not require additional certification or requirements for burns 
99.14 	conducted as part of normal agricultural practices not currently subject to prescribed burn 
99.15 	specifications. The commissioner must submit a report with recommendations and any 
99.16 	legislative changes needed to the chairs and ranking minority members of the house of 
99.17 	representatives and senate committees and divisions with jurisdiction over environment 
99.18 	and natural resources by January 15, 2017.

99.19 	Sec. 47. SAND DUNES STATE FOREST; REPORT.
 99.20 	(a) Until July 1, 2017, the commissioner of natural resources shall not log, enter into 
99.21 	a logging contract, or otherwise remove trees for purposes of creating oak savanna in the 
99.22 	Sand Dunes State Forest. This paragraph does not prohibit work done under contracts 
99.23 	entered into before the effective date of this section or work on school trust lands.
99.24 	(b) By January 15, 2017, the commissioner must submit a report, prepared by 
99.25 	the Division of Forestry, to the chairs and ranking minority members of the house of 
99.26 	representatives and senate committees and divisions with jurisdiction over environment 
99.27 	and natural resources with the Division of Forestry's progress on collaborating with local 
99.28 	citizens and other stakeholders over the past year when making decisions that impact 
99.29 	the landscape, including forest conversions and other clear-cutting activities, and the 
99.30 	division's progress on other citizen engagement activities.

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

99.32 	Sec. 48. LAKE SERVICE PROVIDER FEASIBILITY REPORT.
 100.1 	The commissioner of natural resources shall report to the chairs of the house of 
100.2 	representatives and senate committees with jurisdiction over natural resources by January 
100.3 	15, 2019, regarding the feasibility of expanding permitting to service providers as 
100.4 	described in Minnesota Statutes, section 84D.108, subdivision 2a, to other water bodies in 
100.5 	the state. The report must:
100.6 	(1) include recommendations for state and local resources needed to implement the 
100.7 	program;
100.8 	(2) assess local government inspection roles under Minnesota Statutes, section 
100.9 	84D.105, subdivision 2, paragraph (g); and
100.10 	(3) assess whether mechanisms to ensure that water-related equipment placed back 
100.11 	into the same body of water from which it was removed can adequately protect other 
100.12 	water bodies.

100.13 	Sec. 49. WORKERS' COMPENSATION FOR VOLUNTEERS; REPORT.
 100.14 	By January 15, 2017, the commissioner of natural resources, in coordination with 
100.15 	the commissioner of labor and industry and the Workers' Compensation Advisory Council, 
100.16 	shall make recommendations to the chairs of the house of representatives and senate 
100.17 	committees and divisions with jurisdiction over the environment and natural resources on 
100.18 	how to clarify the state's liability for workers' compensation in relation to volunteers of 
100.19 	nonprofit organizations assisting with providing public services on lands administered 
100.20 	by the commissioner of natural resources subject to Minnesota Statutes, section 175.007, 
100.21 	subdivision 2.

100.22 	Sec. 50. AGGREGATE RESOURCES TASK FORCE.
 100.23 		Subdivision 1.Creation; membership. (a) The Aggregate Resources Task Force 
100.24 	consists of eight members appointed as follows:
100.25 	(1) the speaker of the house shall appoint four members of the house of representatives 
100.26 	to include two members of the majority party and two members of the minority party, with 
100.27 	one member being the chair of the committee with jurisdiction over aggregate mining; and
100.28 	(2) the senate Subcommittee on Committees of the Committee on Rules and 
100.29 	Administration shall appoint four members of the senate to include two members of the 
100.30 	majority party and two members of the minority party, with one member being the chair of 
100.31 	the committee or division with jurisdiction over natural resources finance.
100.32 	(b) The appointing authorities must make their respective appointments no later 
100.33 	than July 15, 2016.
101.1 	(c) The first meeting of the task force must be convened by the chairs of the house 
101.2 	of representatives and senate committees specified in paragraph (a) who will serve as 
101.3 	cochairs of the task force.
101.4 		Subd. 2.Duties. The task force must study and provide recommendations on:
101.5 	(1) the Department of Natural Resources' and Metropolitan Council's aggregate 
101.6 	mapping progress and needs;
101.7 	(2) the effectiveness of recent aggregate tax legislation and the use of the revenues 
101.8 	collected by counties;
101.9 	(3) the use of state funds to preserve aggregate reserves; and
101.10 	(4) local land use and permitting issues, environmental review requirements, and the 
101.11 	impacts of other state regulations on aggregate reserves.
101.12 		Subd. 3.Report.  No later than January 15, 2018, the task force shall submit a 
101.13 	report to the chairs of the house of representatives and senate committees and divisions 
101.14 	with jurisdiction over aggregate mining and natural resources finance containing the 
101.15 	findings of the study.
101.16 		Subd. 4.Expiration.  The Aggregate Resources Task Force expires 45 days after 
101.17 	the report and recommendations are delivered to the legislature or on June 30, 2018, 
101.18 	whichever date is earlier.

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

101.20 	Sec. 51. APPROPRIATION REALLOCATION.
 101.21 	Notwithstanding Laws 2013, chapter 137, article 3, section 4, paragraph (o), and 
101.22 	Laws 2015, First Special Session chapter 2, article 3, section 4, paragraph (b), the 
101.23 	Minneapolis Park and Recreation Board may allocate its share of the distribution of fiscal 
101.24 	years 2016 and 2017 funds under Minnesota Statutes, section 85.53, subdivision 3, to the 
101.25 	Minneapolis Chain of Lakes, Mississippi Gorge, Above the Falls, and Central Mississippi 
101.26 	Riverfront Regional Parks in accordance with the most recent priority rankings that the 
101.27 	Minneapolis Park and Recreation Board has submitted to the Metropolitan Council. This 
101.28 	reallocation of funds is anticipated to result in $500,000 in federal funds to match extant 
101.29 	parks and trails fund appropriations.

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

101.31 	Sec. 52. CITATION.
 101.32 	Sections 23, 24, 25, 26, and 45 may be known and cited as "Sophia's Law."

102.1 	Sec. 53. REPEALER.
 102.2 	Minnesota Statutes 2014, section 116P.13, is repealed.

102.3 	EFFECTIVE DATE. This section is effective July 1, 2018, and any funds remaining 
102.4 	in the Minnesota future resources fund on July 1, 2018, are transferred to the general fund.

102.5 	ARTICLE 4
102.6 	PUBLIC SAFETY AND CORRECTIONS

102.7	Section 1. APPROPRIATIONS.
 	
102.8 	The sums shown in the column under "Appropriations" are added to the 
102.9 	appropriations in Laws 2015, chapter 65, article 1, to the agencies and for the purposes 
102.10 	specified in this article. The appropriations are from the general fund, or another named 
102.11 	fund, and are available for the fiscal years indicated for each purpose. The figures "2016" 
102.12 	and "2017" used in this article mean that the addition to the appropriation listed under 
102.13 	them is available for the fiscal year ending June 30, 2016, or June 30, 2017, respectively. 
102.14 	Supplemental appropriations for the fiscal year ending June 30, 2016, are effective the 
102.15 	day following final enactment.

102.16				APPROPRIATIONS
	
102.17				Available for the Year
	
102.18				Ending June 30
	
102.19					2016
		2017

102.20	Sec. 2. SUPREME COURT
 	$
	-0-
	$
	1,000,000
	
102.21 	For a competitive grant program established 
102.22 	by the chief justice for the distribution of 
102.23 	safe and secure courthouse fund grants to 
102.24 	government entities responsible for providing 
102.25 	or maintaining a courthouse or other facility 
102.26 	where court proceedings are held. Grant 
102.27 	recipients must provide a 50 percent nonstate 
102.28 	match. This is a onetime appropriation and is 
102.29 	available until June 30, 2019.

102.30	Sec. 3. DISTRICT COURTS
 	$
	-0-
	$
	1,547,000
	
102.31 	To increase the juror per diem to $20 and the 
102.32 	juror mileage reimbursement rate to 54 cents 
102.33 	per mile.

103.1	Sec. 4. GUARDIAN AD LITEM BOARD
 	$
	-0-
	$
	878,000
	
103.2 	To hire additional guardians ad litem to 
103.3 	comply with federal and state mandates, 
103.4 	and court orders for representing the best 
103.5 	interests of children in juvenile and family 
103.6 	court proceedings.

103.7	Sec. 5. HUMAN RIGHTS
 	$
	-0-
	$
	180,000
	
103.8 	For a St. Cloud office.

103.9	Sec. 6. CORRECTIONS

103.10	Subdivision 1.Total Appropriation
 	$
	4,341,000
	$
	15,426,000
	
103.11 	The amounts that may be spent for each 
103.12 	purpose are specified in the following 
103.13 	subdivisions.

103.14	Subd. 2.Correctional Institutions
 		4,037,000
		10,671,000
	
103.15 	(a) Employee Compensation
103.16 	$1,427,000 in fiscal year 2016 and 
103.17 	$7,512,000 in fiscal year 2017 are for 
103.18 	employee compensation.
103.19 	(b) Challenge Incarceration Expansion
103.20 	$2,610,000 in fiscal year 2016 and $2,757,000 
103.21 	in fiscal year 2017 are to increase capacity 
103.22 	in the challenge incarceration program. The 
103.23 	base for this activity is $3,263,000 in fiscal 
103.24 	year 2018 and $3,623,000 in fiscal year 2019.
103.25 	(c) 24-Hour Nursing
103.26 	$375,000 in fiscal year 2017 is for 24-hour 
103.27 	nursing coverage seven days a week at 
103.28 	MCF-Shakopee.

103.29	Subd. 3.Community Services
 		241,000
		2,566,000
	
103.30 	(a) Employee Compensation
104.1 	$241,000 in fiscal year 2016 and $860,000 
104.2 	in fiscal year 2017 are for employee 
104.3 	compensation.
104.4 	(b) Challenge Incarceration Expansion
104.5 	$406,000 in fiscal year 2017 is to increase 
104.6 	capacity in the challenge incarceration 
104.7 	program.
104.8 	(c) Reentry and Halfway Houses
104.9 	$300,000 in fiscal year 2017 is for grants to 
104.10 	counties or groups of counties for reentry and 
104.11 	halfway house services. Eligible programs 
104.12 	must be proven to reduce recidivism. Grant 
104.13 	recipients must provide a 50 percent nonstate 
104.14 	match.
104.15 	(d) High-Risk Revocation Reduction 
104.16 	Program
104.17 	$1,000,000 in fiscal year 2017 is to establish 
104.18 	a high-risk revocation reduction program in 
104.19 	the metropolitan area. The program shall 
104.20 	provide sustained case planning, housing 
104.21 	assistance, employment assistance, group 
104.22 	mentoring, life skills programming, and 
104.23 	transportation assistance to adult release 
104.24 	violators who are being released from prison.

104.25	Subd. 4.Operations Support
 		63,000
		2,189,000
	
104.26 	(a) Employee Compensation
104.27 	$63,000 in fiscal year 2016 and $339,000 
104.28 	in fiscal year 2017 are for employee 
104.29 	compensation.
104.30 	(b) Information Technology Critical 
104.31 	Updates
105.1 	$1,850,000 in fiscal year 2017 is for 
105.2 	information technology upgrades and 
105.3 	staffing. This is a onetime appropriation.

105.4	Sec. 7. PUBLIC SAFETY
 	$
	-0-
	$
	6,100,000

105.5	Appropriations by Fund
	
105.6	General
	-0-
	1,600,000
	
105.7	Trunk Highway
	-0-
	4,500,000
	
105.8 	The amounts that may be spent for each 
105.9 	purpose are specified in the following 
105.10 	paragraphs.
105.11 	(a) DNA Laboratory
105.12 	$630,000 is for the Bureau of Criminal 
105.13 	Apprehension DNA laboratory, including the 
105.14 	addition of six forensic scientists. The base 
105.15 	for this activity is $1,000,000 in each of the 
105.16 	fiscal years 2018 and 2019 for eight forensic 
105.17 	scientists.
105.18 	(b) Children In Need of Services or in 
105.19 	Out-Of-Home Placement
105.20 	$150,000 is for a grant to an organization 
105.21 	that provides legal representation to children 
105.22 	in need of protection or services and children 
105.23 	in out-of-home placement. The grant is 
105.24 	contingent upon a match in an equal amount 
105.25 	from nonstate funds. The match may be 
105.26 	in kind, including the value of volunteer 
105.27 	attorney time, or in cash, or in a combination 
105.28 	of the two.
105.29 	(c) Sex Trafficking
105.30 	$820,000 is for grants to state and local units 
105.31 	of government for the following purposes:
106.1 	(1) to support new or existing 
106.2 	multijurisdictional entities to investigate sex 
106.3 	trafficking crimes; and
106.4 	(2) to provide technical assistance for 
106.5 	sex trafficking crimes, including training 
106.6 	and case consultation, to law enforcement 
106.7 	agencies statewide.
106.8 	(d) State Patrol
106.9 	$4,500,000 is from the trunk highway fund 
106.10 	to recruit, hire, train, and equip a State 
106.11 	Patrol Academy. This amount is added to 
106.12 	the appropriation in Laws 2015, chapter 75, 
106.13 	article 1, section 5, subdivision 3. The base 
106.14 	appropriation from the trunk highway fund 
106.15 	for patrolling highways in each of fiscal 
106.16 	years 2018 and 2019 is $87,492,000, which 
106.17 	includes $4,500,000 each year for a State 
106.18 	Patrol Academy.

106.19 	Sec. 8. Minnesota Statutes 2014, section 171.07, subdivision 6, is amended to read:
106.20 		Subd. 6.Medical alert identifier. Upon the written request of the applicant, the 
106.21 	department shall issue a driver's license or Minnesota identification card bearing a graphic 
106.22 	or written medical alert identifier. The applicant must request the medical alert identifier at 
106.23 	the time the photograph or electronically produced image is taken. No specific medical 
106.24 	information will be contained on the driver's license or Minnesota identification card.

106.25 	Sec. 9. Minnesota Statutes 2014, section 171.07, subdivision 7, is amended to read:
106.26 		Subd. 7.Living Will/Health Care Directive designation. (a) At the written request 
106.27 	of the applicant and on payment of the required fee, the department shall issue, renew, or 
106.28 	reissue a driver's license or Minnesota identification card bearing the graphic or written 
106.29 	designation of a "Living Will/Health Care Directive" or an abbreviation thereof. The 
106.30 	designation does not constitute delivery of a health care declaration under section 145B.05.
106.31 	(b) On payment of the required fee, the department shall issue a replacement or 
106.32 	renewal license or identification card without the designation if requested by the applicant.
107.1 	(c) This subdivision does not impose any additional duty on a health care provider, 
107.2 	as defined in section 145B.02, subdivision 6, or 145C.01, subdivision 6, beyond the duties 
107.3 	imposed in chapter 145B or 145C.
107.4 	(d) For the purposes of this subdivision:
107.5 	(1) "living will" means a declaration made under section 145B.03; and
107.6 	(2) "health care directive" means a durable power of attorney for health care under 
107.7 	section 145C.02, or any other written advance health care directive of the applicant that is 
107.8 	authorized by statute or not prohibited by law.

107.9 	Sec. 10. Minnesota Statutes 2014, section 171.07, subdivision 15, is amended to read:
107.10 		Subd. 15.Veteran designation. (a) At the request of an eligible applicant and on 
107.11 	payment of the required fee, the department shall issue, renew, or reissue to the applicant a 
107.12 	driver's license or Minnesota identification card bearing a graphic or written designation of:
107.13 	(1) "Veteran"; or
107.14 	(2) "Veteran 100% T&P."
107.15 	(b) At the time of the initial application for the designation provided under this 
107.16 	subdivision, the applicant must:
107.17 	(1) be a veteran, as defined in section 197.447;
107.18 	(2) have a certified copy of the veteran's discharge papers; and
107.19 	(3) if the applicant is seeking the disability designation under paragraph (a), clause 
107.20 	(2), provide satisfactory evidence of a 100 percent total and permanent service-connected 
107.21 	disability as determined by the United States Department of Veterans Affairs.
107.22 	(c) The commissioner of public safety is required to issue drivers' licenses and 
107.23 	Minnesota identification cards with the veteran designation only after entering a new 
107.24 	contract or in coordination with producing a new card design with modifications made 
107.25 	as required by law.

107.26 	Sec. 11. Minnesota Statutes 2014, section 243.166, subdivision 1b, is amended to read:
107.27 		Subd. 1b.Registration required. (a) A person shall register under this section if:
107.28 	(1) the person was charged with or petitioned for a felony violation of or attempt to 
107.29 	violate, or aiding, abetting, or conspiracy to commit, any of the following, and convicted 
107.30 	of or adjudicated delinquent for that offense or another offense arising out of the same 
107.31 	set of circumstances:
107.32 	(i) murder under section 609.185, paragraph (a), clause (2);
107.33 	(ii) kidnapping under section 609.25;
108.1 	(iii) criminal sexual conduct under section 609.342; 609.343; 609.344; 609.345; 
108.2 	609.3451, subdivision 3; or 609.3453; or
108.3 	(iv) indecent exposure under section 617.23, subdivision 3;
108.4 	(2) the person was charged with or petitioned for a violation of, or attempt to 
108.5 	violate, or aiding, abetting, or conspiring to commit criminal abuse in violation of section 
108.6 	609.2325, subdivision 1, paragraph (b); false imprisonment in violation of section 
108.7 	609.255, subdivision 2; solicitation, inducement, or promotion of the prostitution of a 
108.8 	minor or engaging in the sex trafficking of a minor in violation of section 609.322; a 
108.9 	prostitution offense involving a minor under the age of 13 years in violation of section 
108.10 	609.324, subdivision 1, paragraph (a); soliciting a minor to engage in sexual conduct in 
108.11 	violation of section 609.352, subdivision 2 or 2a, clause (1); using a minor in a sexual 
108.12 	performance in violation of section 617.246; or possessing pornographic work involving a 
108.13 	minor in violation of section 617.247, and convicted of or adjudicated delinquent for that 
108.14 	offense or another offense arising out of the same set of circumstances;
108.15 	(3) the person was sentenced as a patterned sex offender under section 609.3455, 
108.16 	subdivision 3a; or
108.17 	(4) the person was charged with or petitioned for, including pursuant to a court 
108.18 	martial, violating a law of the United States, including the Uniform Code of Military Justice, 
108.19 	similar to the offenses described in clause (1), (2), or (3), and convicted of or adjudicated 
108.20 	delinquent for that offense or another offense arising out of the same set of circumstances.
108.21 	(b) A person also shall register under this section if:
108.22 	(1) the person was charged with or petitioned for an offense in another state that 
108.23 	would be a violation of a law described in paragraph (a) if committed in this state and 
108.24 	convicted of or adjudicated delinquent for that offense or another offense arising out 
108.25 	of the same set of circumstances;
108.26 	(2) the person enters this state to reside, work, or attend school, or enters this state 
108.27 	and remains for 14 days or longer; and
108.28 	(3) ten years have not elapsed since the person was released from confinement 
108.29 	or, if the person was not confined, since the person was convicted of or adjudicated 
108.30 	delinquent for the offense that triggers registration, unless the person is subject to a longer 
108.31 	registration period under the laws of another state in which the person has been convicted 
108.32 	or adjudicated, or is subject to lifetime registration.
108.33 	If a person described in this paragraph is subject to a longer registration period 
108.34 	in another state or is subject to lifetime registration, the person shall register for that 
108.35 	time period regardless of when the person was released from confinement, convicted, or 
108.36 	adjudicated delinquent.
109.1 	(c) A person also shall register under this section if the person was committed 
109.2 	pursuant to a court commitment order under Minnesota Statutes 2012, section 253B.185, 
109.3 	chapter 253D, Minnesota Statutes 1992, section 526.10, or a similar law of another state 
109.4 	or the United States, regardless of whether the person was convicted of any offense.
109.5 	(d) A person also shall register under this section if:
109.6 	(1) the person was charged with or petitioned for a felony violation or attempt to 
109.7 	violate any of the offenses listed in paragraph (a), clause (1), or a similar law of another 
109.8 	state or the United States, or the person was charged with or petitioned for a violation of 
109.9 	any of the offenses listed in paragraph (a), clause (2), or a similar law of another state or 
109.10 	the United States;
109.11 	(2) the person was found not guilty by reason of mental illness or mental deficiency 
109.12 	after a trial for that offense, or found guilty but mentally ill after a trial for that offense, in 
109.13 	states with a guilty but mentally ill verdict; and
109.14 	(3) the person was committed pursuant to a court commitment order under section 
109.15 	253B.18 or a similar law of another state or the United States.

109.16 	EFFECTIVE DATE. This section is effective August 1, 2016, and applies to crimes 
109.17 	committed on or after that date.

109.18 	Sec. 12. [325E.041] SENSORY TESTING RESEARCH.
109.19 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
109.20 	the meanings given:
109.21 	(1) "sensory testing firm" means a business that tests consumer reaction to physical 
109.22 	aspects of products for a third-party client;
109.23 	(2) "trained sensory assessors" means members of the public at least 21 years of age 
109.24 	selected by sensory testing firms and trained for a minimum of one hour to test products;
109.25 	(3) "sensory testing facility" means a facility specifically designed as a controlled 
109.26 	environment for testing; and
109.27 	(4) "department" means the Department of Public Safety.
109.28 		Subd. 2.Allowed activities. Notwithstanding any law to the contrary, a sensory 
109.29 	testing firm may possess and may purchase alcohol at retail or wholesale, and may allow 
109.30 	consumption of that alcohol, by trained sensory assessors for testing purposes at their 
109.31 	facility, provided that:
109.32 	(1) the firm must comply with section 340A.409 and all other state laws that do not 
109.33 	conflict with this section;
109.34 	(2) firms choosing to serve alcohol must be licensed by the department, which may 
109.35 	assess a fee sufficient to cover costs; and
110.1 	(3) records of testing protocols must be retained by the firm for at least one year.

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

110.3 	Sec. 13. Minnesota Statutes 2014, section 484.90, subdivision 6, is amended to read:
110.4 		Subd. 6.Allocation. (a) In all cases prosecuted in district court by an attorney for a 
110.5 	municipality or other subdivision of government within the county for violations of state 
110.6 	statute, or of an ordinance; or charter provision, rule, or regulation of a city; all fines, 
110.7 	penalties, and forfeitures collected shall be deposited in the state treasury and distributed 
110.8 	according to this paragraph. For the purpose of this section, the county attorney shall be 
110.9 	considered the attorney for any town in which a violation occurs. Except where a different 
110.10 	disposition is provided by section 299D.03, subdivision 5, 484.841, 484.85, or other law, 
110.11 	on or before the last day of each month, the courts shall pay over all fines, penalties, and 
110.12 	forfeitures collected by the court administrator during the previous month as follows:
110.13 	(1) 100 percent of all fines or penalties for parking violations for which complaints 
110.14 	and warrants have not been issued to the treasurer of the city or town in which the offense 
110.15 	was committed; and
110.16 	(2) two-thirds of all other fines to the treasurer of the city or town in which the 
110.17 	offense was committed and one-third credited to the state general fund.
110.18 	All other fines, penalties, and forfeitures collected by the court administrator shall be 
110.19 	distributed by the courts as provided by law.
110.20 	(b) Fines, penalties, and forfeitures shall be distributed as provided in paragraph 
110.21 	(a) when:
110.22 	(1) a city contracts with the county attorney for prosecutorial services under section 
110.23 	484.87, subdivision 3;
110.24 	(2) a city has a population of 600 or less and has given the duty to prosecute cases to 
110.25 	the county attorney under section 484.87; or
110.26 	(3) the attorney general provides assistance to the county attorney as permitted by law.

110.27 	Sec. 14. [609.2233] FELONY ASSAULT MOTIVATED BY BIAS; INCREASED 
110.28 	STATUTORY MAXIMUM SENTENCE.
110.29 	A person who violates section 609.221, 609.222, or 609.223 because of the victim's 
110.30 	or another person's actual or perceived race, color, religion, sex, sexual orientation, 
110.31 	disability as defined in section 363A.03, age, or national origin is subject to a statutory 
110.32 	maximum penalty of 25 percent longer than the maximum penalty otherwise applicable.

111.1 	EFFECTIVE DATE. This section is effective August 1, 2016, and applies to crimes 
111.2 	committed on or after that date.

111.3 	Sec. 15. Minnesota Statutes 2015 Supplement, section 609.324, subdivision 1, is 
111.4 	amended to read:
111.5 		Subdivision 1.Engaging in, hiring, or agreeing to hire minor to engage in 
111.6 	prostitution; penalties. (a) Whoever intentionally does any of the following may be 
111.7 	sentenced to imprisonment for not more than 20 years or to payment of a fine of not 
111.8 	more than $40,000, or both:
111.9 	(1) engages in prostitution with an individual under the age of 13 years; or
111.10 	(2) hires or offers or agrees to hire an individual under the age of 13 years to engage 
111.11 	in sexual penetration or sexual contact; or
111.12 	(3) hires or offers or agrees to hire an individual who the actor reasonably believes 
111.13 	to be under the age of 13 years to engage in sexual penetration or sexual contact.
111.14 	(b) Whoever intentionally does any of the following may be sentenced to 
111.15 	imprisonment for not more than ten years or to payment of a fine of not more than 
111.16 	$20,000, or both:
111.17 	(1) engages in prostitution with an individual under the age of 16 years but at least 
111.18 	13 years; or
111.19 	(2) hires or offers or agrees to hire an individual under the age of 16 years but at 
111.20 	least 13 years to engage in sexual penetration or sexual contact; or
111.21 	(3) hires or offers or agrees to hire an individual who the actor reasonably believes 
111.22 	to be under the age of 16 years but at least 13 years to engage in sexual penetration or 
111.23 	sexual contact.
111.24 	(c) Whoever intentionally does any of the following may be sentenced to 
111.25 	imprisonment for not more than five years or to payment of a fine of not more than 
111.26 	$10,000, or both:
111.27 	(1) engages in prostitution with an individual under the age of 18 years but at least 
111.28 	16 years;
111.29 	(2) hires or offers or agrees to hire an individual under the age of 18 years but at 
111.30 	least 16 years to engage in sexual penetration or sexual contact; or
111.31 	(3) hires or offers or agrees to hire an individual who the actor reasonably believes 
111.32 	to be under the age of 18 years but at least 16 years to engage in sexual penetration or 
111.33 	sexual contact.

111.34 	EFFECTIVE DATE. This section is effective August 1, 2016, and applies to crimes 
111.35 	committed on or after that date.

112.1 	Sec. 16. Laws 2015, chapter 65, article 1, section 18, is amended to read:

112.2
112.3
112.4	Sec. 18. AVIAN INFLUENZA AND 
AGRICULTURAL EMERGENCY 
RESPONSE.
 					
112.5 	Notwithstanding Minnesota Statutes, section 
112.6 	12.221, subdivision 6, for fiscal years 
112.7 	2016 and 2017 through June 30, 2019,
112.8 	only, the disaster contingency account, 
112.9 	under Minnesota Statutes, section 12.221, 
112.10 	subdivision 6, may be used to pay for 
112.11 	costs of eligible avian influenza emergency 
112.12 	response activities for avian influenza and 
112.13 	any agricultural emergency. By January 15, 
112.14 	2018, and again by January 15, 2020, the 
112.15 	commissioner of management and budget 
112.16 	must report to the chairs and ranking minority 
112.17 	members of the senate Finance Committee 
112.18 	and the house of representatives Committee 
112.19 	on Ways and Means on any amount used 
112.20 	for avian influenza the purposes authorized
112.21 	under this section.

112.22 	Sec. 17. ST. CLOUD STATE UNIVERSITY; SPECIAL LICENSE.
 112.23 	Notwithstanding any other law, local ordinance, or charter provision to the contrary, 
112.24 	the city of St. Cloud may issue an on-sale wine and malt liquor intoxicating liquor license 
112.25 	to St. Cloud State University. A license authorized by this section may be issued for space 
112.26 	that is not compact and contiguous, provided that all the space is within the boundaries of 
112.27 	the campus of St. Cloud State University and is included in the description of the licensed 
112.28 	premises on the approved license application. The license under this section authorizes 
112.29 	sales on all days of the week to persons attending events at Herb Brooks National Hockey 
112.30 	Center, subject to the hours and days of sale restrictions in Minnesota Statutes, and any 
112.31 	reasonable license conditions or restrictions imposed by the licensing authority. All other 
112.32 	provisions of Minnesota Statutes not inconsistent with this section apply to the license 
112.33 	authorized under this section.

113.1 	EFFECTIVE DATE. This section is effective upon approval by the St. Cloud City 
113.2 	Council in the manner provided by Minnesota Statutes, section 645.021, subdivisions 
113.3 	2 and 3.

113.4 	Sec. 18. INDIAFEST; SPECIAL LICENSE.
 113.5 	Notwithstanding any other law, local ordinance, or charter provision to the contrary, 
113.6 	the city of St. Paul may issue a temporary on-sale intoxicating liquor license to the India 
113.7 	Association of Minnesota, a nonprofit 501(c)(3) organization, for Indiafest on the grounds 
113.8 	of the State Capitol. The license may authorize only the sale of intoxicating malt liquor 
113.9 	and wine. All provisions of Minnesota Statutes not inconsistent with this section apply 
113.10 	to the license authorized by this section.

113.11 	EFFECTIVE DATE. This section is effective upon approval by the St. Paul City 
113.12 	Council and compliance with Minnesota Statutes, section 645.021.

113.13 	Sec. 19. MAJOR LEAGUE SOCCER STADIUM; SPECIAL LICENSE.
 113.14 	Notwithstanding any other law, local ordinance, or charter provision to the contrary, 
113.15 	the city of St. Paul may issue an on-sale intoxicating liquor license to the operator of the 
113.16 	Major League Soccer stadium located in the city of St. Paul or to entities affiliated with it 
113.17 	for operation of food and beverage concessions at the stadium. The license may authorize 
113.18 	sales both to persons attending any and all events, and sales in a restaurant, bar, or banquet 
113.19 	facility at the stadium. The license authorizes sales on all days of the week. All provisions 
113.20 	of Minnesota Statutes not inconsistent with this section apply to the license under this 
113.21 	section. The license may be issued for a space that is not compact and contiguous, 
113.22 	provided that the licensed premises may include only the space within the stadium or on 
113.23 	stadium premises or grounds, as described in the approved license application.

113.24 	EFFECTIVE DATE. This section is effective upon approval by the St. Paul City 
113.25 	Council and compliance with Minnesota Statutes, section 645.021.

113.26 	Sec. 20. JANESVILLE; SPECIAL LICENSE.
 113.27 	Notwithstanding any law or ordinance to the contrary, the city of Janesville may 
113.28 	issue an on-sale intoxicating liquor license for the Prairie Ridge Golf Club that is located 
113.29 	at 2000 North Main Street and is owned by the city. The provisions of Minnesota Statutes 
113.30 	not inconsistent with this section apply to the license issued under this section. The city 
113.31 	of Janesville is deemed the licensee under this section, and the relevant provisions of 
114.1 	Minnesota Statutes apply to the licensee as if the establishment were a municipal liquor 
114.2 	store.

114.3 	EFFECTIVE DATE. This section is effective upon approval by the Janesville City 
114.4 	Council and compliance with Minnesota Statutes, section 645.021.

114.5 	Sec. 21. CITY OF MINNEAPOLIS; SPECIAL LICENSE. 
114.6 	The city of Minneapolis may issue an on-sale intoxicating liquor license to a 
114.7 	restaurant located at 5000 Hiawatha Avenue, notwithstanding any law or local ordinance 
114.8 	or charter provision to the contrary.

114.9 	EFFECTIVE DATE. This section is effective upon approval by the Minneapolis 
114.10 	City Council and compliance with Minnesota Statutes, section 645.021.

114.11 	Sec. 22. REPEALER.
 114.12 	Special Laws 1891, chapter 57, chapter XII, section 5, is repealed.

114.13 	EFFECTIVE DATE. This section is effective upon approval by the Duluth City 
114.14 	Council and compliance with Minnesota Statutes, section 645.021.

114.15 	ARTICLE 5
114.16 	BROADBAND DEVELOPMENT

114.17
114.18
114.19	Section 1. DEPARTMENT OF 
EMPLOYMENT AND ECONOMIC 
DEVELOPMENT
 	$
	-0-
	$
	35,000,000
	
114.20 	Border-To-Border Broadband 
114.21 	Development Program. (a) $35,000,000 in 
114.22 	fiscal year 2017 is from the general fund for 
114.23 	deposit in the border-to-border broadband 
114.24 	fund account under Minnesota Statutes, 
114.25 	section 116J.396, to award grants under 
114.26 	that section. Of this appropriation, no more 
114.27 	than $5,000,000 may be used for grants to 
114.28 	underserved areas. Of this appropriation, up 
114.29 	to $1,000,000 may be used for administrative 
114.30 	costs, including mapping. This is a onetime 
114.31 	appropriation.
115.1 	(b) $500,000 may be awarded to projects 
115.2 	that propose to expand the availability and 
115.3 	adoption of broadband service to areas 
115.4 	that contain a significant proportion of 
115.5 	low-income households. For the purposes 
115.6 	of this paragraph, "low-income households" 
115.7 	means households whose household income 
115.8 	is less than or equal to 200 percent of the 
115.9 	most recent calculation of the United States 
115.10 	federal poverty guidelines published by the 
115.11 	United States Department of Health and 
115.12 	Human Services, adjusted for family size.
115.13 	(c) If grant awards in any area are insufficient 
115.14 	to fully expend the funds available for 
115.15 	that area, the commissioner may reallocate 
115.16 	unexpended funds to other areas.

115.17 	Sec. 2. Minnesota Statutes 2015 Supplement, section 116J.394, is amended to read:
115.18 	116J.394 DEFINITIONS.
115.19 	(a) For the purposes of sections 116J.394 to 116J.396 116J.398, the following terms 
115.20 	have the meanings given them.
115.21 	(b) "Broadband" or "broadband service" has the meaning given in section 116J.39, 
115.22 	subdivision 1, paragraph (b).
115.23 	(c) "Broadband infrastructure" means networks of deployed telecommunications 
115.24 	equipment and technologies necessary to provide high-speed Internet access and other 
115.25 	advanced telecommunications services for end users.
115.26 	(d) "Commissioner" means the commissioner of employment and economic 
115.27 	development.
115.28 	(e) "Last-mile infrastructure" means broadband infrastructure that serves as the 
115.29 	final leg connecting the broadband service provider's network to the end-use customer's 
115.30 	on-premises telecommunications equipment.
115.31 	(f) "Middle-mile infrastructure" means broadband infrastructure that links a 
115.32 	broadband service provider's core network infrastructure to last-mile infrastructure.
115.33 	(g) "Political subdivision" means any county, city, town, school district, special 
115.34 	district or other political subdivision, or public corporation.
116.1 	(h) "Underserved areas" means areas of Minnesota in which households or 
116.2 	businesses lack access to wire-line broadband service at speeds that meet the state 
116.3 	broadband goals of ten to 20at least 100 megabits per second download and five to ten 
116.4 	at least 20 megabits per second upload.
116.5 	(i) "Unserved areas" means areas of Minnesota in which households or businesses 
116.6 	lack access to wire-line broadband service, as defined in section 116J.39.

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

116.8 	Sec. 3. Minnesota Statutes 2014, section 116J.395, subdivision 4, is amended to read:
116.9 		Subd. 4.Application process. (a) An eligible applicant must submit an application 
116.10 	to the commissioner on a form prescribed by the commissioner. The commissioner shall 
116.11 	develop administrative procedures governing the application and grant award process. 
116.12 	The commissioner shall act as fiscal agent for the grant program and shall be responsible 
116.13 	for receiving and reviewing grant applications and awarding grants under this section.
116.14 	(b) At least 30 days prior to the first day applications may be submitted each fiscal 
116.15 	year, the commissioner must publish on the department's Web site the specific criteria 
116.16 	and any quantitative weighting scheme or scoring system the commissioner will use to 
116.17 	evaluate or rank applications and award grants under subdivision 6.

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

116.19 	Sec. 4. Minnesota Statutes 2014, section 116J.395, subdivision 5, is amended to read:
116.20 		Subd. 5.Application contents. An applicant for a grant under this section shall 
116.21 	provide the following information on the application:
116.22 	(1) the location of the project;
116.23 	(2) the kind and amount of broadband infrastructure to be purchased for the project;
116.24 	(3) evidence regarding the unserved or underserved nature of the community in 
116.25 	which the project is to be located;
116.26 	(4) the number of households passed that will have access to broadband service as a 
116.27 	result of the project, or whose broadband service will be upgraded as a result of the project;
116.28 	(5) significant community institutions that will benefit from the proposed project;
116.29 	(6) evidence of community support for the project;
116.30 	(7) the total cost of the project;
116.31 	(8) sources of funding or in-kind contributions for the project that will supplement 
116.32 	any grant award; and
117.1 	(9) evidence that no later than six weeks before submission of the application the 
117.2 	applicant contacted, in writing, all entities providing broadband service in the proposed 
117.3 	project area to ask for each broadband service provider's plan to upgrade broadband service 
117.4 	in the project area to speeds that meet or exceed the state's broadband speed goals in section 
117.5 	237.012, subdivision 1, within the time frame specified in the proposed grant activities;
117.6 	(10) the broadband service providers' written responses to the inquiry made under 
117.7 	clause (9); and
117.8 	(11) any additional information requested by the commissioner.

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

117.10 	Sec. 5. Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision 
117.11 	to read:
117.12 		Subd. 5a.Challenge process. (a) Within three days of the close of the grant 
117.13 	application process, the office shall publish on its Web site the proposed geographic 
117.14 	broadband service area and the proposed broadband service speeds for each application 
117.15 	submitted.
117.16 	(b) An existing broadband service provider in or proximate to the proposed project 
117.17 	area may, within 30 days of publication of the information under paragraph (a), submit 
117.18 	in writing to the commissioner a challenge to an application.  A challenge must contain 
117.19 	information demonstrating that:
117.20 	(1) the provider currently provides or has begun construction to provide broadband 
117.21 	service to the proposed project area at speeds equal to or greater than the state speed goal 
117.22 	contained in section 237.012, subdivision 1; or
117.23 	(2) the provider commits to complete construction of broadband infrastructure and 
117.24 	provide broadband service in the proposed project area at speeds equal to or greater than 
117.25 	the state speed goal contained in section 237.012, subdivision 1, no later than 18 months 
117.26 	after the date grant awards are made under this section for the grant cycle under which the 
117.27 	application was submitted.
117.28 	(c) The commissioner must evaluate the information submitted in a provider's 
117.29 	challenge under this section, and is prohibited from funding a project if the commissioner 
117.30 	determines that the provider's commitment to provide broadband service that meets the 
117.31 	requirements of paragraph (b) in the proposed project area is credible.
117.32 	(d) If the commissioner denies funding to an applicant as a result of a broadband 
117.33 	service provider's challenge made under this section, and the broadband service provider 
117.34 	does not fulfill the provider's commitment to provide broadband service in the project 
117.35 	area, the commissioner is prohibited from denying funding to an applicant as a result of 
118.1 	a challenge by the same broadband service provider for the following two grant cycles, 
118.2 	unless the commissioner determines that the broadband service provider's failure to 
118.3 	fulfill the provider's commitment was the result of factors beyond the broadband service 
118.4 	provider's control. 

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

118.6 	Sec. 6. Minnesota Statutes 2014, section 116J.395, is amended by adding a subdivision 
118.7 	to read:
118.8 		Subd. 8.Application evaluation report. By June 30 of each year, the Office of 
118.9 	Broadband Development shall publish on the Department of Employment and Economic 
118.10 	Development's Web site and provide to the chairs and ranking minority members of the 
118.11 	senate and house of representatives committees with primary jurisdiction over broadband 
118.12 	a list of all applications for grants under this section received during the previous year 
118.13 	and, for each application:
118.14 	(1) the results of any quantitative weighting scheme or scoring system the 
118.15 	commissioner used to award grants or rank the applications;
118.16 	(2) the grant amount requested; and
118.17 	(3) the grant amount awarded, if any.

118.18 	EFFECTIVE DATE. This section is effective the day following final enactment. 
118.19 	The initial report submission required under this section is due June 30, 2016.

118.20 	Sec. 7. [116J.397] UPDATED BROADBAND DEPLOYMENT DATA AND MAPS.
118.21 	(a) Beginning in 2016 and continuing each year thereafter, the Office of Broadband 
118.22 	Development shall contract with one or more independent organizations that have 
118.23 	extensive experience working with Minnesota broadband providers to:
118.24 	(1) collect broadband deployment data from Minnesota providers, verify its accuracy 
118.25 	through on-the-ground testing, and create state and county maps available to the public by 
118.26 	April 15, 2017, and each April 15 thereafter, showing the availability of broadband service 
118.27 	at various upload and download speeds throughout Minnesota;
118.28 	(2) analyze the deployment data collected to help inform future investments in 
118.29 	broadband infrastructure; and
118.30 	(3) conduct business and residential surveys that measure broadband adoption and 
118.31 	use in the state.
119.1 	(b) Data provided by a broadband provider under this section is nonpublic data 
119.2 	under section 13.02, subdivision 9. Maps produced under this paragraph are public data 
119.3 	under section 13.03.

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

119.5 	Sec. 8. [116J.398] BROADBAND PREVAILING WAGE EXEMPTION.
119.6 	Notwithstanding any other law to the contrary, section 116J.871 does not apply 
119.7 	to a project receiving a grant under section 116J.395 for the construction, installation, 
119.8 	remodeling, and repair of last-mile infrastructure, as defined under section 116J.394, 
119.9 	paragraph (e).

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

119.11 	Sec. 9. Minnesota Statutes 2014, section 237.012, is amended to read:
119.12 	237.012 BROADBAND GOALS.
119.13 		Subdivision 1.Universal access and high-speed goal. It is a state goal that as 
119.14 	soon as possible, but no later than 2015, all state residents and businesses have access to 
119.15 	high-speed broadband that provides minimum download speeds of ten to 20 megabits per 
119.16 	second and minimum upload speeds of five to ten megabits per second.:
119.17 	(1) no later than 2022, all Minnesota businesses and homes have access to 
119.18 	high-speed broadband that provides minimum download speeds of at least 25 megabits 
119.19 	per second and minimum upload speeds of at least three megabits per second; and
119.20 	(2) no later than 2026, all Minnesota businesses and homes have access to at least 
119.21 	one provider of broadband with download speeds of at least 100 megabits per second and 
119.22 	upload speeds of at least 20 megabits per second.
119.23 		Subd. 2.State broadband leadership position. It is a goal of the state that by 
119.24 	2015 2022 and thereafter, the state be in:
119.25 	(1) the top five states of the United States for broadband speed universally accessible 
119.26 	to residents and businesses;
119.27 	(2) the top five states for broadband access; and
119.28 	(3) the top 15 when compared to countries globally for broadband penetration.

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

120.1 	ARTICLE 6
120.2 	ENERGY

120.3 	Section 1. Minnesota Statutes 2014, section 115C.09, subdivision 1, is amended to read:
120.4 		Subdivision 1.Reimbursable costs. (a) The board shall provide reimbursement to 
120.5 	eligible applicants for reimbursable costs.
120.6 	(b) The following costs are reimbursable for purposes of this chapter:
120.7 	(1) corrective action costs incurred by the applicant and documented in a form 
120.8 	prescribed by the board, except the costs related to the physical removal of a tank. 
120.9 	Corrective action costs incurred by the applicant include costs for physical removal of 
120.10 	a tank when the physical removal is part of a corrective action, regardless of whether 
120.11 	the tank is leaking at the time of removal, and the removal is directed or approved by 
120.12 	the commissioner;
120.13 	(2) costs that the responsible person is legally obligated to pay as damages to third 
120.14 	parties for bodily injury, property damage, or corrective action costs incurred by a third 
120.15 	party caused by a release where the responsible person's liability for the costs has been 
120.16 	established by a court order or court-approved settlement; and
120.17 	(3) up to 180 days of interest costs associated with the financing of corrective action 
120.18 	and incurred by the applicant in a written extension of credit or loan that has been signed by 
120.19 	the applicant and executed after July 1, 2002, provided that the applicant documents that:
120.20 	(i) the interest costs are incurred as a result of an extension of credit or loan from a 
120.21 	financial institution; and
120.22 	(ii) the board has not considered the application within the applicable time frame 
120.23 	specified in subdivision 2a, paragraph (c).
120.24 	Interest costs meeting the requirements of this clause are eligible only when they are 
120.25 	incurred between the date a complete initial application is received by the board, or the 
120.26 	date a complete supplemental application is received by the board, and the date that the 
120.27 	board first notifies the applicant of its reimbursement determination. An application is 
120.28 	complete when the information reasonably required or requested by the board's staff 
120.29 	from the applicant has been received by the board's staff. Interest costs are not eligible 
120.30 	for reimbursement to the extent they exceed two percentage points above the adjusted 
120.31 	prime rate charged by banks, as defined in section 270C.40, subdivision 5, at the time the 
120.32 	extension of credit or loan was executed.
120.33 	(c) A cost for liability to a third party is incurred by the responsible person when an 
120.34 	order or court-approved settlement is entered that sets forth the specific costs attributed 
120.35 	to the liability. Except as provided in this paragraph, reimbursement may not be made 
121.1 	for costs of liability to third parties until all eligible corrective action costs have been 
121.2 	reimbursed. If a corrective action is expected to continue in operation for more than one 
121.3 	year after it has been fully constructed or installed, the board may estimate the future 
121.4 	expense of completing the corrective action and, after subtracting this estimate from the 
121.5 	total reimbursement available under subdivision 3, reimburse the costs for liability to third 
121.6 	parties. The total reimbursement may not exceed the limit set forth in subdivision 3.

121.7 	Sec. 2. Minnesota Statutes 2014, section 115C.09, subdivision 3, is amended to read:
121.8 		Subd. 3.Reimbursements; subrogation; appropriation. (a) The board shall 
121.9 	reimburse an eligible applicant from the fund for 90 percent of the total reimbursable costs 
121.10 	incurred at the site, except that the board may reimburse an eligible applicant from the 
121.11 	fund for greater than 90 percent of the total reimbursable costs, if the applicant previously 
121.12 	qualified for a higher reimbursement rate. For costs associated with a release from a tank 
121.13 	in transport, the board may reimburse a maximum of $100,000.
121.14 	Not more than $1,000,000 may be reimbursed for costs associated with a single 
121.15 	release, regardless of the number of persons eligible for reimbursement, and not more than
121.16 	$2,000,000 may be reimbursed for costs associated with a single tank facility release.
121.17 	(b) A reimbursement may not be made from the fund under this chapter until the 
121.18 	board has determined that the costs for which reimbursement is requested were actually 
121.19 	incurred and were reasonable.
121.20 	(c) When an applicant has obtained responsible competitive bids or proposals 
121.21 	according to rules promulgated under this chapter prior to June 1, 1995, the eligible costs 
121.22 	for the tasks, procedures, services, materials, equipment, and tests of the low bid or proposal 
121.23 	are presumed to be reasonable by the board, unless the costs of the low bid or proposal are 
121.24 	substantially in excess of the average costs charged for similar tasks, procedures, services, 
121.25 	materials, equipment, and tests in the same geographical area during the same time period.
121.26 	(d) When an applicant has obtained a minimum of two responsible competitive bids or 
121.27 	proposals on forms prescribed by the board and where the rules promulgated adopted under 
121.28 	this chapter after June 1, 1995, designate maximum costs for specific tasks, procedures, 
121.29 	services, materials, equipment and tests, the eligible costs of the low bid or proposal are 
121.30 	deemed reasonable if the costs are at or below the maximums set forth in the rules.
121.31 	(e) Costs incurred for change orders executed as prescribed in rules promulgated
121.32 	adopted under this chapter after June 1, 1995, are presumed reasonable if the costs are 
121.33 	at or below the maximums set forth in the rules, unless the costs in the change order are 
121.34 	above those in the original bid or proposal or are unsubstantiated and inconsistent with the 
121.35 	process and standards required by the rules.
122.1 	(f) A reimbursement may not be made from the fund in response to either an initial 
122.2 	or supplemental application for costs incurred after June 4, 1987, that are payable under 
122.3 	an applicable insurance policy, except that if the board finds that the applicant has made 
122.4 	reasonable efforts to collect from an insurer and failed, the board shall reimburse the 
122.5 	applicant.
122.6 	(g) If the board reimburses an applicant for costs for which the applicant has 
122.7 	insurance coverage, the board is subrogated to the rights of the applicant with respect to 
122.8 	that insurance coverage, to the extent of the reimbursement by the board. The board may 
122.9 	request the attorney general to bring an action in district court against the insurer to enforce 
122.10 	the board's subrogation rights. Acceptance by an applicant of reimbursement constitutes 
122.11 	an assignment by the applicant to the board of any rights of the applicant with respect to 
122.12 	any insurance coverage applicable to the costs that are reimbursed. Notwithstanding this 
122.13 	paragraph, the board may instead request a return of the reimbursement under subdivision 
122.14 	5 and may employ against the applicant the remedies provided in that subdivision, except 
122.15 	where the board has knowingly provided reimbursement because the applicant was denied 
122.16 	coverage by the insurer.
122.17 	(h) Money in the fund is appropriated to the board to make reimbursements under 
122.18 	this chapter. A reimbursement to a state agency must be credited to the appropriation 
122.19 	account or accounts from which the reimbursed costs were paid.
122.20 	(i) The board may reduce the amount of reimbursement to be made under this 
122.21 	chapter if it finds that the applicant has not complied with a provision of this chapter, a 
122.22 	rule or order issued under this chapter, or one or more of the following requirements:
122.23 	(1) the agency was given notice of the release as required by section 115.061;
122.24 	(2) the applicant, to the extent possible, fully cooperated with the agency in 
122.25 	responding to the release;
122.26 	(3) the state rules applicable after December 22, 1993, to operating an underground 
122.27 	storage tank and appurtenances without leak detection;
122.28 	(4) the state rules applicable after December 22, 1998, to operating an underground 
122.29 	storage tank and appurtenances without corrosion protection or spill and overfill 
122.30 	protection; and
122.31 	(5) the state rule applicable after November 1, 1998, to operating an aboveground 
122.32 	tank without a dike or other structure that would contain a spill at the aboveground tank site.
122.33 	(j) The reimbursement may be reduced as much as 100 percent for failure by 
122.34 	the applicant to comply with the requirements in paragraph (i), clauses (1) to (5). In 
122.35 	determining the amount of the reimbursement reduction, the board shall consider:
123.1 	(1) the reasonable determination by the agency that the noncompliance poses a 
123.2 	threat to the environment;
123.3 	(2) whether the noncompliance was negligent, knowing, or willful;
123.4 	(3) the deterrent effect of the award reduction on other tank owners and operators;
123.5 	(4) the amount of reimbursement reduction recommended by the commissioner; and
123.6 	(5) the documentation of noncompliance provided by the commissioner.
123.7 	(k) An applicant may request that the board issue a multiparty check that includes each 
123.8 	lender who advanced funds to pay the costs of the corrective action or to each contractor 
123.9 	or consultant who provided corrective action services. This request must be made by filing 
123.10 	with the board a document, in a form prescribed by the board, indicating the identity of the 
123.11 	applicant, the identity of the lender, contractor, or consultant, the dollar amount, and the 
123.12 	location of the corrective action. The applicant must submit a request for the issuance 
123.13 	of a multiparty check for each application submitted to the board. Payment under this 
123.14 	paragraph does not constitute the assignment of the applicant's right to reimbursement 
123.15 	to the consultant, contractor, or lender. The board has no liability to an applicant for a 
123.16 	payment issued as a multiparty check that meets the requirements of this paragraph.

123.17 	Sec. 3. Minnesota Statutes 2014, section 115C.13, is amended to read:
123.18 	115C.13 REPEALER.
123.19 	Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05, 
123.20 	115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 115C.093, 115C.094, 115C.10, 115C.11, 
123.21 	115C.112, 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 2017 2022.

123.22 	Sec. 4. Minnesota Statutes 2014, section 216B.16, subdivision 12, is amended to read:
123.23 		Subd. 12.Exemption for small gas utility franchise. (a) A municipality may file 
123.24 	with the commission a resolution of its governing body requesting exemption from the 
123.25 	provisions of this section for a public utility that is under a franchise with the municipality 
123.26 	to supply natural, manufactured, or mixed gas and that serves 650 or fewer customers in 
123.27 	the municipality as long as the public utility serves no more than a total of 2,000 5,000 
123.28 	customers.
123.29 	(b) The commission shall grant an exemption from this section for that portion of 
123.30 	a public utility's business that is requested by each municipality it serves. Furthermore, 
123.31 	the commission shall also grant the public utility an exemption from this section for any 
123.32 	service provided outside of a municipality's border that is considered by the commission 
123.33 	to be incidental. The public utility shall file with the commission and the department 
124.1 	all initial and subsequent changes in rates, tariffs, and contracts for service outside the 
124.2 	municipality at least 30 days in advance of implementation.
124.3 	(c) However, the commission shall require the utility to adopt the commission's 
124.4 	policies and procedures governing disconnection during cold weather. The utility shall 
124.5 	annually submit a copy of its municipally approved rates to the commission.
124.6 	(d) In all cases covered by this subdivision in which an exemption for service outside 
124.7 	of a municipality is granted, the commission may initiate an investigation under section 
124.8 	216B.17, on its own motion or upon complaint from a customer.
124.9 	(e) If a municipality files with the commission a resolution of its governing body 
124.10 	rescinding the request for exemption, the commission shall regulate the public utility's 
124.11 	business in that municipality under this section.

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

124.13 	Sec. 5. [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE 
124.14 	ASSOCIATION.
124.15 	A cooperative electric association that has elected to be subject to rate regulation 
124.16 	under section 216B.026 is eligible to file with the commission for approval an adjustment 
124.17 	for real and personal property taxes, fees, and permits.

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

124.19 	Sec. 6. Minnesota Statutes 2014, section 216B.1691, subdivision 10, is amended to read:
124.20 		Subd. 10.Utility acquisition of resources. A competitive resource acquisition 
124.21 	process established by the commission prior to June 1, 2007, shall not apply to a utility 
124.22 	for the construction, ownership, and operation of generation facilities used to satisfy the 
124.23 	requirements of this section unless, upon a finding that it is in the public interest, the 
124.24 	commission issues an order on or after June 1, 2007, that requires compliance by a utility 
124.25 	with a competitive resource acquisition process. A utility that owns a nuclear generation 
124.26 	facility and intends to construct, own, or operate facilities under this section shall file with 
124.27 	the commission on or before March 1, 2008, a renewable energy plan setting forth the 
124.28 	manner in which the utility proposes to meet the requirements of this section, including 
124.29 	a proposed schedule for purchasing renewable energy from C-BED and non-C-BED 
124.30 	projects. The utility shall update the plan as necessary in its filing under section 216B.2422. 
124.31 	The commission shall approve the plan unless it determines, after public hearing and 
124.32 	comment, that the plan is not in the public interest. As part of its determination of public 
125.1 	interest, the commission shall consider the plan's allocation of projects among C-BED, 
125.2 	non-C-BED, and utility-owned projects, impact on balancing the state's interest in:
125.3 	(1) promoting the policy of economic development in rural areas through the 
125.4 	development of renewable energy projects, as expressed in subdivision 9;
125.5 	(2) maintaining the reliability of the state's electric power grid; and
125.6 	(3) minimizing cost impacts on ratepayers.

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

125.8 	Sec. 7. Minnesota Statutes 2014, section 216B.241, subdivision 1c, is amended to read:
125.9 		Subd. 1c.Energy-saving goals. (a) The commissioner shall establish energy-saving 
125.10 	goals for energy conservation improvement expenditures and shall evaluate an energy 
125.11 	conservation improvement program on how well it meets the goals set.
125.12 	(b) Each individual utility and association shall have an annual energy-savings 
125.13 	goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the 
125.14 	commissioner under paragraph (d). The savings goals must be calculated based on the 
125.15 	most recent three-year weather-normalized average. A utility or association may elect to 
125.16 	carry forward energy savings in excess of 1.5 percent for a year to the succeeding three 
125.17 	calendar years, except that savings from electric utility infrastructure projects allowed 
125.18 	under paragraph (d) may be carried forward for five years. A particular energy savings can 
125.19 	be used only for one year's goal.
125.20 	(c) The commissioner must adopt a filing schedule that is designed to have all 
125.21 	utilities and associations operating under an energy-savings plan by calendar year 2010.
125.22 	(d) In its energy conservation improvement plan filing, a utility or association may 
125.23 	request the commissioner to adjust its annual energy-savings percentage goal based on 
125.24 	its historical conservation investment experience, customer class makeup, load growth, a 
125.25 	conservation potential study, or other factors the commissioner determines warrants an 
125.26 	adjustment. The commissioner may not approve a plan of a public utility that provides for 
125.27 	an annual energy-savings goal of less than one percent of gross annual retail energy sales 
125.28 	from energy conservation improvements.
125.29 	A utility or association may include in its energy conservation plan energy savings 
125.30 	from electric utility infrastructure projects approved by the commission under section 
125.31 	216B.1636 or waste heat recovery converted into electricity projects that may count as 
125.32 	energy savings in addition to a minimum energy-savings goal of at least one percent for 
125.33 	energy conservation improvements. Energy savings from electric utility infrastructure 
125.34 	projects, as defined in section 216B.1636, may be included in the energy conservation 
125.35 	plan of a municipal utility or cooperative electric association. Electric utility infrastructure 
126.1 	projects must result in increased energy efficiency greater than that which would have 
126.2 	occurred through normal maintenance activity.
126.3 	(e) An energy-savings goal is not satisfied by attaining the revenue expenditure 
126.4 	requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the 
126.5 	energy-savings goal established in this subdivision.
126.6 	(f) An association or utility is not required to make energy conservation investments 
126.7 	to attain the energy-savings goals of this subdivision that are not cost-effective even 
126.8 	if the investment is necessary to attain the energy-savings goals. For the purpose of 
126.9 	this paragraph, in determining cost-effectiveness, the commissioner shall consider the 
126.10 	costs and benefits to ratepayers, the utility, participants, and society. In addition, the 
126.11 	commissioner shall consider the rate at which an association or municipal utility is 
126.12 	increasing its energy savings and its expenditures on energy conservation.
126.13 	(g) On an annual basis, the commissioner shall produce and make publicly available 
126.14 	a report on the annual energy savings and estimated carbon dioxide reductions achieved 
126.15 	by the energy conservation improvement programs for the two most recent years for 
126.16 	which data is available. The commissioner shall report on program performance both in 
126.17 	the aggregate and for each entity filing an energy conservation improvement plan for 
126.18 	approval or review by the commissioner.
126.19 	(h) By January 15, 2010, the commissioner shall report to the legislature whether 
126.20 	the spending requirements under subdivisions 1a and 1b are necessary to achieve the 
126.21 	energy-savings goals established in this subdivision.

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

126.23 	Sec. 8. Minnesota Statutes 2014, section 216B.243, subdivision 8, is amended to read:
126.24 		Subd. 8.Exemptions. (a) This section does not apply to:
126.25 	(1) cogeneration or small power production facilities as defined in the Federal Power 
126.26 	Act, United States Code, title 16, section 796, paragraph (17), subparagraph (A), and 
126.27 	paragraph (18), subparagraph (A), and having a combined capacity at a single site of less 
126.28 	than 80,000 kilowatts; plants or facilities for the production of ethanol or fuel alcohol; or 
126.29 	any case where the commission has determined after being advised by the attorney general 
126.30 	that its application has been preempted by federal law;
126.31 	(2) a high-voltage transmission line proposed primarily to distribute electricity to 
126.32 	serve the demand of a single customer at a single location, unless the applicant opts to 
126.33 	request that the commission determine need under this section or section 216B.2425;
127.1 	(3) the upgrade to a higher voltage of an existing transmission line that serves the 
127.2 	demand of a single customer that primarily uses existing rights-of-way, unless the applicant 
127.3 	opts to request that the commission determine need under this section or section 216B.2425;
127.4 	(4) a high-voltage transmission line of one mile or less required to connect a new or 
127.5 	upgraded substation to an existing, new, or upgraded high-voltage transmission line;
127.6 	(5) conversion of the fuel source of an existing electric generating plant to using 
127.7 	natural gas;
127.8 	(6) the modification of an existing electric generating plant to increase efficiency, 
127.9 	as long as the capacity of the plant is not increased more than ten percent or more than 
127.10 	100 megawatts, whichever is greater; or
127.11 	(7) a wind energy conversion system or solar electric generation facility if the system 
127.12 	or facility is owned and operated by an independent power producer and the electric output 
127.13 	of the system or facility is not sold to an entity that provides retail service in Minnesota 
127.14 	or wholesale electric service to another entity in Minnesota other than an entity that is a 
127.15 	federally recognized regional transmission organization or independent system operator; or
127.16 	(8) a large wind energy conversion system, as defined in section 216F.01, subdivision 
127.17 	2, or a solar energy generating large energy facility, as defined in section 216B.2421, 
127.18 	subdivision 2, engaging in a repowering project that:
127.19 	(i) will not result in the facility exceeding the nameplate capacity under its most 
127.20 	recent interconnection agreement; or
127.21 	(ii) will result in the facility exceeding the nameplate capacity under its most recent 
127.22 	interconnection agreement, provided that the Midcontinent Independent System Operator 
127.23 	has provided a signed generator interconnection agreement that reflects the expected 
127.24 	net power increase.
127.25 	(b) For the purpose of this subdivision, "repowering project" means:
127.26 	(1) modifying a large wind energy conversion system or a solar energy generating 
127.27 	large energy facility to increase its efficiency without increasing its nameplate capacity;
127.28 	(2) replacing turbines in a large wind energy conversion system without increasing 
127.29 	the nameplate capacity of the system; or
127.30 	(3) increasing the nameplate capacity of a large wind energy conversion system.

127.31 	Sec. 9. Minnesota Statutes 2014, section 216C.20, subdivision 3, is amended to read:
127.32 		Subd. 3.Parking ramp. No enclosed structure or portion of an enclosed structure 
127.33 	constructed after January 1, 1978, and used primarily as a commercial parking facility for 
127.34 	three or more motor vehicles shall be heated. Incidental heating resulting from building 
127.35 	exhaust air passing through a parking facility shall not be prohibited, provided that 
128.1 	substantially all useful heat has previously been removed from the air. The commissioner 
128.2 	of commerce may grant an exemption from this subdivision if the commercial parking 
128.3 	is integrated within a facility that has both public and private uses, the benefits of the 
128.4 	exemption to taxpayers exceed the costs, and all appropriate energy efficiency measures 
128.5 	have been considered.

128.6 	Sec. 10. Minnesota Statutes 2014, section 216E.03, subdivision 5, is amended to read:
128.7 		Subd. 5.Environmental review. (a) The commissioner of the Department of 
128.8 	Commerce shall prepare for the commission an environmental impact statement on each 
128.9 	proposed large electric generating plant or high-voltage transmission line for which a 
128.10 	complete application has been submitted. The commissioner shall not consider whether 
128.11 	or not the project is needed. No other state environmental review documents shall be 
128.12 	required. The commissioner shall study and evaluate any site or route proposed by an 
128.13 	applicant and any other site or route the commission deems necessary that was proposed in 
128.14 	a manner consistent with rules concerning the form, content, and timeliness of proposals 
128.15 	for alternate sites or routes.
128.16 	(b) For a cogeneration facility as defined in section 216H.01, subdivision 1a, that is 
128.17 	a large electric power generating plant and is not proposed by a utility, the commissioner 
128.18 	must make a finding in the environmental impact statement whether the project is likely to 
128.19 	result in a net reduction of carbon dioxide emissions, considering both the utility providing 
128.20 	electric service to the proposed cogeneration facility and any reduction in carbon dioxide 
128.21 	emissions as a result of increased efficiency from the production of thermal energy on the 
128.22 	part of the customer operating or owning the proposed cogeneration facility.

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

128.24 	Sec. 11. Minnesota Statutes 2014, section 216H.01, is amended by adding a 
128.25 	subdivision to read:
128.26 		Subd. 1a.Cogeneration facility or combined heat and power facility.
 128.27 	"Cogeneration facility" or "combined heat and power facility" means a facility that:
128.28 	(1) has the meaning given in United States Code, title 16, section 796, clause (18), 
128.29 	paragraph (A); and
128.30 	(2) meets the applicable operating and efficiency standards contained in Code of 
128.31 	Federal Regulations, title 18, part 292.205.

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

129.1 	Sec. 12. Minnesota Statutes 2014, section 216H.03, subdivision 1, is amended to read:
129.2 		Subdivision 1.Definition; new large energy facility. For the purpose of this 
129.3 	section, "new large energy facility" means a large energy facility, as defined in section 
129.4 	216B.2421, subdivision 2, clause (1), that is not in operation as of January 1, 2007, but 
129.5 	does not include a facility that (1) uses natural gas as a primary fuel, (2) is a cogeneration 
129.6 	facility or combined heat and power facility located in the electric service area of a public 
129.7 	utility, as defined in section 216B.02, subdivision 4, or is designed to provide peaking, 
129.8 	intermediate, emergency backup, or contingency services, (3) uses a simple cycle or 
129.9 	combined cycle turbine technology, and (4) is capable of achieving full load operations 
129.10 	within 45 minutes of startup for a simple cycle facility, or is capable of achieving 
129.11 	minimum load operations within 185 minutes of startup for a combined cycle facility.

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

129.13 	Sec. 13. Minnesota Statutes 2014, section 373.48, subdivision 3, is amended to read:
129.14 		Subd. 3.Joint purchase of energy and acquisition of generation projects; 
129.15 	financing. (a) A county may enter into agreements under section 471.59 with other 
129.16 	counties for joint purchase of energy or joint acquisition of interests in projects. A county 
129.17 	that enters into a multiyear agreement for purchase of energy or acquires an interest in 
129.18 	a project, including C-BED projects pursuant to section 216B.1612, subdivision 9, may 
129.19 	finance the estimated cost of the energy to be purchased during the term of the agreement 
129.20 	or the cost to the county of the interest in the project by the issuance of revenue bonds of 
129.21 	the county, including clean renewable energy revenue bonds, provided that the annual debt 
129.22 	service on all bonds issued under this section, together with the amounts to be paid by the 
129.23 	county in any year for the purchase of energy under agreements entered into under this 
129.24 	section, must not exceed the estimated revenues of the project.
129.25 	(b) An agreement entered into under section 471.59 as provided by this section 
129.26 	may provide that:
129.27 	(1) each county issues bonds to pay their respective shares of the cost of the projects;
129.28 	(2) one of the counties issues bonds to pay the full costs of the project and that the 
129.29 	other participating counties pay any available revenues of the project and pledge the 
129.30 	revenues to the county that issues the bonds; or
129.31 	(3) the joint powers board issues revenue bonds to pay the full costs of the project 
129.32 	and that the participating counties pay any available revenues of the project under this 
129.33 	subdivision and pledge the revenues to the joint powers entity for payment of the revenue 
129.34 	bonds.

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

130.2 	Sec. 14. Laws 2001, chapter 130, section 3, is amended to read:
130.3 	Sec. 3. ASSESSMENT.
 130.4 	A propane education and research council, established and certified pursuant to 
130.5 	section 2, may assess propane producers and retail marketers an amount not to exceed one 
130.6 	millthe maximum assessment authorized in United States Code, title 15, section 6405(a), 
130.7 	per gallon of odorized propane in a manner established by the council in compliance with 
130.8 	United States Code, title 15, section 6405, subsections (a) to (c). Propane producers and 
130.9 	retail marketers shall be responsible for the amounts assessed.

130.10 	Sec. 15. Laws 2014, chapter 198, article 2, section 2, the effective date, is amended to 
130.11 	read:

130.12 	EFFECTIVE DATE; APPLICATION. This section is effective July 1, 2015
130.13 	January 1, 2016, and applies to applications for reimbursement on or after that date.

130.14 	EFFECTIVE DATE. This section is effective retroactively from May 5, 2014.

130.15 	Sec. 16.  REPEALER.
 130.16 	Minnesota Statutes 2014, sections 216B.1612; and 216C.39, are repealed.

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

130.18 	ARTICLE 7
130.19 	ECONOMIC DEVELOPMENT

130.20	Section 1. APPROPRIATIONS
 	
130.21 	The sums shown in the columns under "Appropriations" are added to or, if shown 
130.22 	in parentheses, subtracted from the appropriations in Laws 2015, First Special Session, 
130.23 	chapter 1, or other law to the specified agencies. The appropriations are from the general 
130.24 	fund, or another named fund, and are available for the fiscal years indicated for each 
130.25 	purpose. The figures "2016" and "2017" used in this article mean that the appropriations 
130.26 	listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017, 
130.27 	respectively. Appropriations for the fiscal year ending June 30, 2016, are effective the day 
130.28 	following final enactment. Reductions may be taken in either fiscal year.

130.29				APPROPRIATIONS
	
130.30				Available for the Year
	
131.1				Ending June 30
	
131.2					2016
		2017

131.3
131.4	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

131.5	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	11,721,000

131.6	Appropriations by Fund
	
131.7	General
	-0-
	7,271,000
	
131.8
131.9	Workforce 
Development
	-0-
	4,450,000
	
131.10 	The amounts that may be spent for each 
131.11 	purpose are specified in the following 
131.12 	subdivisions.

131.13
131.14	Subd. 2.Business and Community 
Development
 		-0-
		8,021,000

131.15	Appropriations by Fund
	
131.16	General
	-0-
	7,271,000
	
131.17
131.18	Workforce 
Development
	-0-
	750,000
	
131.19 	(a) $9,000,000 in fiscal year 2017 is a 
131.20 	onetime reduction in the general fund 
131.21 	appropriation for the Minnesota investment 
131.22 	fund under Minnesota Statutes, section 
131.23 	116J.8731. The base funding for this purpose 
131.24 	is $11,000,000 in fiscal year 2018 and each 
131.25 	fiscal year thereafter.
131.26 	(b) $11,500,000 in fiscal year 2017 is a 
131.27 	onetime reduction in the general fund 
131.28 	appropriation for the Minnesota job creation 
131.29 	fund under Minnesota Statutes, section 
131.30 	116J.8748. The base funding for this 
131.31 	program is $6,500,000 in fiscal year 2018 
131.32 	and each fiscal year thereafter.
131.33 	(c) $2,000,000 in fiscal year 2017 is for the 
131.34 	redevelopment program under Minnesota 
131.35 	Statutes, section 116J.571. This is a onetime 
131.36 	appropriation.
132.1 	(d) $1,220,000 in fiscal year 2017 is for a 
132.2 	grant to the Duluth North Shore Sanitary 
132.3 	District to retire debt of the district in order 
132.4 	to bring the district's monthly wastewater 
132.5 	rates in line with those of similarly situated 
132.6 	facilities across the state. This is a onetime 
132.7 	appropriation.
132.8 	(e) $300,000 in fiscal year 2017 is from the 
132.9 	workforce development fund for expansion 
132.10 	of business assistance services provided by 
132.11 	business development specialists located in 
132.12 	the Northwest Region, Northeast Region, 
132.13 	West Central Region, Southwest Region, 
132.14 	Southeast Region, and Twin Cites Metro 
132.15 	Region offices established throughout the 
132.16 	state. Funds under this section may be used 
132.17 	to provide services including, but not limited 
132.18 	to, business start-ups; expansion; location or 
132.19 	relocation; finance; regulatory and permitting 
132.20 	assistance; and other services determined 
132.21 	by the commissioner. The commissioner 
132.22 	may also use funds under this section to 
132.23 	increase the number of business development 
132.24 	specialists in each region of the state, 
132.25 	increase and expand the services provided 
132.26 	through each regional office, and publicize 
132.27 	the services available and provide outreach 
132.28 	to communities in each region regarding 
132.29 	services and assistance available through the 
132.30 	business development specialist program. 
132.31 	This is a onetime appropriation.
132.32 	(f) $50,000 in fiscal year 2017 is from the 
132.33 	workforce development fund to enhance 
132.34 	the outreach and public awareness activities 
132.35 	of the Bureau of Small Business under 
133.1 	Minnesota Statutes, section 116J.68. This is 
133.2 	a onetime appropriation.
133.3 	(g) $100,000 in fiscal year 2017 is from 
133.4 	the general fund for an easy-to-understand 
133.5 	manual to instruct aspiring business owners 
133.6 	in how to start a child care business. The 
133.7 	commissioner shall work in consultation 
133.8 	with relevant state and local agencies 
133.9 	and affected stakeholders to produce the 
133.10 	manual. The manual must be made available 
133.11 	electronically to interested persons. This is a 
133.12 	onetime appropriation and is available until 
133.13 	June 30, 2019.
133.14 	(h) $2,500,000 in fiscal year 2017 is for 
133.15 	grants to initiative foundations to provide 
133.16 	financing for business startups, expansions, 
133.17 	and maintenance; and for business ownership 
133.18 	transition and succession. This is a onetime 
133.19 	appropriation. Of the amount appropriated:
133.20 	(1) $357,000 is for a grant to the Southwest 
133.21 	Initiative Foundation;
133.22 	(2) $357,000 is for a grant to the West Central 
133.23 	Initiative Foundation;
133.24 	(3) $357,000 is for a grant to the Southern 
133.25 	Minnesota Initiative Foundation;
133.26 	(4) $357,000 is for a grant to the Northwest 
133.27 	Minnesota Foundation;
133.28 	(5) $357,000 is for a grant to the Initiative 
133.29 	Foundation;
133.30 	(6) $357,000 is for a grant to the Northland 
133.31 	Foundation; and
133.32 	(7) $357,000 is for a grant for the Minnesota 
133.33 	emerging entrepreneur program under 
133.34 	Minnesota Statutes, chapter 116M. Funds 
134.1 	available under this clause must be allocated 
134.2 	as follows:
134.3 	(i) 50 percent of the funds must be allocated 
134.4 	for projects in the counties of Dakota, 
134.5 	Ramsey, and Washington; and
134.6 	(ii) 50 percent of the funds must be allocated 
134.7 	for projects in the counties of Anoka, Carver, 
134.8 	Hennepin, and Scott.
134.9 	(i) $600,000 in fiscal year 2017 is for a grant 
134.10 	to a city of the second class that is designated 
134.11 	as an economically depressed area by the 
134.12 	United States Department of Commerce for 
134.13 	economic development, redevelopment, and 
134.14 	job creation programs and projects. This is a 
134.15 	onetime appropriation and is available until 
134.16 	June 30, 2019.
134.17 	(j) $4,500,000 in fiscal year 2017 is 
134.18 	for a grant to the Minnesota Film and 
134.19 	TV Board for the film production jobs 
134.20 	program under Minnesota Statutes, section 
134.21 	116U.26. This appropriation is in addition 
134.22 	to the appropriation in Laws 2015, First 
134.23 	Special Session chapter 1, article 1, 
134.24 	section 2, subdivision 2. This is a onetime 
134.25 	appropriation.
134.26 	(k) $3,651,000 in fiscal year 2017 is from the 
134.27 	general fund for a grant to Mille Lacs County 
134.28 	to develop and operate the Lake Mille Lacs 
134.29 	area economic relief program established in 
134.30 	section 45. This is a onetime appropriation.
134.31 	(l) $500,000 in fiscal year 2017 is from the 
134.32 	general fund for grants to local communities 
134.33 	outside of the metropolitan area as defined 
134.34 	under Minnesota Statutes, section 473.121, 
134.35 	subdivision 2, to increase the supply of 
135.1 	quality child care providers in order to 
135.2 	support regional economic development. 
135.3 	Grant recipients must match state funds on a 
135.4 	dollar-for-dollar basis. Grant funds available 
135.5 	under this section must be used to implement 
135.6 	solutions to reduce the child care shortage 
135.7 	in the state, including but not limited to 
135.8 	funding for child care business start-up or 
135.9 	expansion, training, facility modifications 
135.10 	or improvements required for licensing, 
135.11 	and assistance with licensing and other 
135.12 	regulatory requirements. In awarding grants, 
135.13 	the commissioner must give priority to 
135.14 	communities in greater Minnesota that have 
135.15 	documented a shortage of child care providers 
135.16 	in the area. This is a onetime appropriation 
135.17 	and is available until June 30, 2019.
135.18 	By September 30, 2017, grant recipients must 
135.19 	report to the commissioner on the outcomes 
135.20 	of the grant program, including but not 
135.21 	limited to the number of new providers, the 
135.22 	number of additional child care provider jobs 
135.23 	created, the number of additional child care 
135.24 	slots, and the amount of local funds invested.
135.25 	By January 1, 2018, the commissioner must 
135.26 	report to the standing committees of the 
135.27 	legislature having jurisdiction over child care 
135.28 	and economic development on the outcomes 
135.29 	of the program to date.
135.30 	(m) $100,000 in fiscal year 2017 is from 
135.31 	the general fund for a grant to the city of 
135.32 	Madelia to provide match funding for a 
135.33 	federal Economic Development Agency 
135.34 	technical assistance grant. This is a onetime 
135.35 	appropriation.
136.1 	(n) $10,000,000 in fiscal year 2017 is for 
136.2 	deposit in the Minnesota 21st century fund. 
136.3 	This is a onetime appropriation.
136.4 	(o) $400,000 in fiscal year 2017 is from the 
136.5 	workforce development fund for grants to 
136.6 	small business development centers under 
136.7 	Minnesota Statutes, section 116J.68. Funds 
136.8 	made available under this section may be 
136.9 	used to match funds under the federal Small 
136.10 	Business Development Center (SBDC) 
136.11 	program under United States Code, title 15, 
136.12 	section 648, provide consulting and technical 
136.13 	services, or to build additional SBDC 
136.14 	network capacity to serve entrepreneurs 
136.15 	and small businesses. The commissioner 
136.16 	shall allocate funds equally among the nine 
136.17 	regional centers and lead center. This is a 
136.18 	onetime appropriation.
136.19 	(p) $2,600,000 in fiscal year 2017 is for 
136.20 	a transfer to the Board of Regents of the 
136.21 	University of Minnesota for academic and 
136.22 	applied research through MnDRIVE at the 
136.23 	Natural Resources Research Institute to 
136.24 	develop new technologies that enhance the 
136.25 	long-term viability of the Minnesota mining 
136.26 	industry. The research must be done in 
136.27 	consultation with the Mineral Coordinating 
136.28 	Committee established by Minnesota 
136.29 	Statutes, section 93.0015. This is a onetime 
136.30 	transfer.
136.31 	(q) Of the amount appropriated in fiscal 
136.32 	year 2017 for the Minnesota Investment 
136.33 	Fund in Laws 2015, First Special Session 
136.34 	chapter 1, article 1, section 2, subdivision 2, 
136.35 	paragraph (a), $450,000 is for a grant to the 
137.1 	Lake Superior-Poplar River Water District to 
137.2 	acquire interests in real property, engineer, 
137.3 	design, permit, and construct infrastructure 
137.4 	to transport and treat water from Lake 
137.5 	Superior through the Poplar River Valley to 
137.6 	serve domestic, irrigation, commercial, stock 
137.7 	watering, and industrial water users. This 
137.8 	grant does not require a local match. This 
137.9 	is a onetime appropriation. This amount is 
137.10 	available until June 30, 2019.

137.11	Subd. 3.Workforce Development
 		-0-
		1,900,000
	
137.12 	This appropriation is from the workforce 
137.13 	development fund.
137.14 	(a) $500,000 in fiscal year 2017 is from the 
137.15 	workforce development fund for rural career 
137.16 	counseling coordinators in the workforce 
137.17 	service areas and for the purposes specified 
137.18 	in Minnesota Statutes, section 116L.667. 
137.19 	This appropriation is for increases to existing 
137.20 	applicants who were awarded grants in fiscal 
137.21 	years 2016 and 2017.
137.22 	(b) $500,000 in fiscal year 2017 is from the 
137.23 	workforce development fund for a grant to 
137.24 	Occupational Development Corporation, Inc. 
137.25 	in the city of Buhl to provide training and 
137.26 	employment opportunities for people with 
137.27 	disabilities and disadvantaged workers. This 
137.28 	is a onetime appropriation.
137.29 	(c) $400,000 in fiscal year 2017 is from 
137.30 	the workforce development fund for 
137.31 	a grant to Northern Bedrock Historic 
137.32 	Preservation Corps for the pathway to the 
137.33 	preservation trades program for recruitment 
137.34 	of corps members, engagement of technical 
137.35 	specialists, development of a certificate 
138.1 	program, and skill development in historic 
138.2 	preservation for youth ages 18 to 25. This is 
138.3 	a onetime appropriation.
138.4 	(d) $500,000 in fiscal year 2017 is from the 
138.5 	workforce development fund for a grant to 
138.6 	the North East Higher Education District to 
138.7 	purchase equipment for training programs 
138.8 	due to increased demand for job training 
138.9 	under the state dislocated worker program. 
138.10 	This is a onetime appropriation and is 
138.11 	available until June 30, 2018.

138.12	Subd. 4.Vocational rehabilitation
 		-0-
		1,800,000
	
138.13 	This appropriation is from the workforce 
138.14 	development fund.
138.15 	(a) $800,000 in fiscal year 2017 is from 
138.16 	the workforce development fund for grants 
138.17 	to day training and habilitation providers 
138.18 	to provide innovative employment options 
138.19 	and to advance community integration for 
138.20 	persons with disabilities as required under 
138.21 	the Minnesota Olmstead Plan. Eligible 
138.22 	day training and habilitation providers are 
138.23 	those who certify that they do not possess 
138.24 	a certification as provided by section 14(c) 
138.25 	of the Fair Labor Standards Act. Of this 
138.26 	amount, $250,000 is for a pilot program 
138.27 	for home-based, technology-enhanced 
138.28 	monitoring of persons with disabilities. This 
138.29 	is a onetime appropriation and is available 
138.30 	until June 30, 2018.
138.31 	(b) $1,000,000 in fiscal year 2017 is 
138.32 	from the workforce development fund for 
138.33 	rate increases to providers of extended 
138.34 	employment services for persons with severe 
139.1 	disabilities under Minnesota Statutes, section 
139.2 	268A.15. This is a onetime appropriation.

139.3
139.4	Sec. 3. DEPARTMENT OF LABOR AND 
INDUSTRY
 	$
	-0-
	$
	350,000

139.5	Appropriations by Fund
	
139.6	General
		100,000
	
139.7
139.8	Workforce 
Development
		250,000
	
139.9 	(a) $250,000 in fiscal year 2017 is from 
139.10 	the workforce development fund for the 
139.11 	apprenticeship program under Minnesota 
139.12 	Statutes, chapter 178. This amount is added 
139.13 	to the base appropriation for this purpose.
139.14 	(b) $100,000 in fiscal year 2017 is to 
139.15 	provide outreach and education concerning 
139.16 	requirements under state or federal law 
139.17 	governing removal of architectural barriers 
139.18 	that limit access to public accommodations 
139.19 	by persons with disabilities and resources 
139.20 	that are available to comply with 
139.21 	those requirements. This is a onetime 
139.22 	appropriation.

139.23	Sec. 4. EXPLORE MINNESOTA TOURISM
 	$
	-0-
	$
	1,073,000
	
139.24 	(a) $300,000 in fiscal year 2017 is for a 
139.25 	grant to the Mille Lacs Tourism Council 
139.26 	to enhance marketing activities related to 
139.27 	tourism promotion in the Mille Lacs Lake 
139.28 	area. This is a onetime appropriation.
139.29 	(b) $773,000 in fiscal year 2017 is to 
139.30 	establish a pilot project to assist in funding 
139.31 	and securing major events benefiting 
139.32 	communities throughout the state. The pilot 
139.33 	project must measure the economic impact 
139.34 	of visitors on state and local economies, 
140.1 	increased lodging and nonlodging sales taxes 
140.2 	in addition to visitor spending, and increased 
140.3 	media awareness of the state as an event 
140.4 	destination. This is a onetime appropriation. 
140.5 	Of this amount, $100,000 is for a grant to 
140.6 	the St. Louis County Historical Society for a 
140.7 	project, in collaboration with the Erie Mining 
140.8 	history book project team, to research, 
140.9 	document, publish, preserve, and exhibit the 
140.10 	history of taconite mining in Minnesota.

140.11	Sec. 5. HOUSING FINANCE AGENCY
 	$
	-0-
	$
	1,750,000
	
140.12 	(a) $500,000 in fiscal year 2017 is to establish 
140.13 	a grant program within the housing trust fund 
140.14 	for the exploited families rental assistance 
140.15 	program. This is a onetime appropriation and 
140.16 	is available until June 30, 2019.
140.17 	(b) $500,000 in fiscal year 2017 is for a 
140.18 	competitive grant program to fund a housing 
140.19 	project or projects in a community or 
140.20 	communities: (1) that have low housing 
140.21 	vacancy rates; and (2) that have an education 
140.22 	and training center for jobs in agriculture, 
140.23 	farm business management, health care 
140.24 	fields, or other fields with anticipated 
140.25 	significant job growth potential. A grant or 
140.26 	grants must be no more than 50 percent of 
140.27 	the total development costs for the project. 
140.28 	Funds for a grant or grants made in this 
140.29 	section must be to a housing project or 
140.30 	projects that have financial and in-kind 
140.31 	contributions from nonagency sources 
140.32 	that when combined with a grant under 
140.33 	this section are sufficient to complete the 
140.34 	housing project. Funds must be used to 
140.35 	create new housing units either through 
141.1 	new construction or through acquisition and 
141.2 	rehabilitation of a building or buildings not 
141.3 	currently used for housing. If funds remain 
141.4 	uncommitted at the end of fiscal year 2017, 
141.5 	the agency may transfer the uncommitted 
141.6 	funds to the housing development fund and 
141.7 	use the funds for the economic development 
141.8 	and housing challenge program under 
141.9 	Minnesota Statutes, section 462A.33. This is 
141.10 	a onetime appropriation.
141.11 	(c) $750,000 in fiscal year 2017 is for the 
141.12 	Workforce and Affordable Homeownership 
141.13 	Development Program under Minnesota 
141.14 	Statutes, section 462A.38. This is a onetime 
141.15 	appropriation and is available until June 30, 
141.16 	2019.

141.17	Sec. 6. COMMERCE
 	$
	-0-
	$
	1,332,000
	
141.18 	(a) $832,000 in fiscal year 2017 is for energy 
141.19 	regulation and planning unit staff.
141.20 	(b) $500,000 in fiscal year 2017 is for 
141.21 	additional actuarial work to prepare for 
141.22 	implementation of principle-based reserves. 
141.23 	This appropriation is contingent on 
141.24 	enactment of 2016 HF No. 3384. The base 
141.25 	appropriation for this purpose is $412,000.

141.26	Sec. 7. PUBLIC UTILITIES COMMISSION
 	$
	225,000
	$
	577,000
	
141.27 	The amounts appropriated are in addition 
141.28 	to those appropriated in Laws 2015, First 
141.29 	Special Session chapter 1. The base 
141.30 	amount for fiscal year 2018 and thereafter 
141.31 	is $514,000.

141.32 	Sec. 8. Laws 2014, chapter 312, article 2, section 14, is amended to read:
141.33 	Sec. 14. ASSIGNED RISK TRANSFER.
 142.1 	(a) By June 30, 2015, if the commissioner of commerce determines on the basis of 
142.2 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
142.3 	Statutes, section 79.252, the commissioner of management and budget shall transfer 
142.4 	the amount of the excess surplus, not to exceed $10,500,000, to the general fund. This 
142.5 	transfer occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 
142.6 	1, paragraph (a), clause (1). This is a onetime transfer.
142.7 	(b) By June 30, 2015, and each year thereafter, if the commissioner of commerce 
142.8 	determines on the basis of an audit that there is an excess surplus in the assigned risk plan 
142.9 	created under Minnesota Statutes, section 79.252, the commissioner of management and 
142.10 	budget shall transfer the amount of the excess surplus, not to exceed $4,820,000 each 
142.11 	year, to the Minnesota minerals 21st century fund under Minnesota Statutes, section 
142.12 	116J.423. This transfer occurs prior to any transfer under Minnesota Statutes, section 
142.13 	79.251, subdivision 1, paragraph (a), clause (1), but after the transfer authorized in 
142.14 	paragraph (a). The total amount authorized for all transfers under this paragraph must not 
142.15 	exceed $24,100,000. This paragraph expires the day following the transfer in which the 
142.16 	total amount transferred under this paragraph to the Minnesota minerals 21st century 
142.17 	fund equals $24,100,000.
142.18 	(c) By June 30, 2015, if the commissioner of commerce determines on the basis of 
142.19 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
142.20 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
142.21 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
142.22 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
142.23 	paragraph (a), clause (1), but after any transfers authorized in paragraphs (a) and (b). If 
142.24 	a transfer occurs under this paragraph, the amount transferred is appropriated from the 
142.25 	general fund in fiscal year 2015 to the commissioner of labor and industry for the purposes 
142.26 	of section 15. Both the transfer and appropriation under this paragraph are onetime.
142.27 	(d) By June 30, 2016, if the commissioner of commerce determines on the basis of 
142.28 	an audit that there is an excess surplus in the assigned risk plan created under Minnesota 
142.29 	Statutes, section 79.252, the commissioner of management and budget shall transfer the 
142.30 	amount of the excess surplus, not to exceed $4,820,000, to the general fund. This transfer 
142.31 	occurs prior to any transfer under Minnesota Statutes, section 79.251, subdivision 1, 
142.32 	paragraph (a), clause (1), but after the transfers authorized in paragraphs (a) and (b). If 
142.33 	a transfer occurs under this paragraph, the amount transferred is appropriated from the 
142.34 	general fund in fiscal year 2016 to the commissioner of labor and industry for the purposes 
142.35 	of section 15. Both the transfer and appropriation under this paragraph are onetime.
143.1 	(e) Notwithstanding Minnesota Statutes, section 16A.28, the commissioner 
143.2 	of management and budget shall transfer to the assigned risk plan under Minnesota 
143.3 	Statutes, section 79.252 general fund, any unencumbered or unexpended balance of the 
143.4 	appropriations under paragraphs (c) and (d) remaining on June 30, 2017 2016, or the date 
143.5 	the commissioner of commerce determines that an excess surplus in the assigned risk plan 
143.6 	does not exist, whichever occurs earlier.

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

143.8 	Sec. 9. Laws 2014, chapter 312, article 2, section 15, is amended to read:
143.9 	Sec. 15. WORKERS' COMPENSATION SYSTEM REFORM; USE OF 
143.10 	FUNDS.
 143.11 	(a) The appropriations under section 14 to the commissioner of labor and industry 
143.12 	are for reform of the workers' compensation system. Funds appropriated under section 
143.13 	14, paragraphs (c) and (d), may be expended by the commissioner only after the advisory 
143.14 	council on workers' compensation created under Minnesota Statutes, section 175.007, has 
143.15 	approved a new system including, but not limited to: a Medicare-based diagnosis-related 
143.16 	group (MS-DRG) or similar system for payment of workers' compensation inpatient 
143.17 	hospital services. Of the amount appropriated under section 14, paragraphs (c) and (d), up 
143.18 	to $100,000 may be used by the commissioner to develop and implement the new system 
143.19 	approved by the advisory council on workers' compensation.
143.20 	(b) Funds available for expenditure under paragraph (a) may be used by the 
143.21 	commissioner for reimbursement of expenditures that are reasonable and necessary to 
143.22 	defray the costs of the implementation by hospitals, insurers, and self-insured employers 
143.23 	of the new system including, but not limited to: a Medicare-based diagnosis-related group 
143.24 	(MS-DRG) or similar system for payment of workers' compensation inpatient hospital 
143.25 	services, litigation expense reform, worker safety training, administrative costs, or other 
143.26 	related system reform. 
143.27 	(c) For the purposes of this section, reasonable and necessary system reform and 
143.28 	implementation costs include, but are not limited to:
143.29 	(1) the cost of analyzing data to determine the anticipated costs and savings of 
143.30 	implementing the new system;
143.31 	(2) the cost of analyzing system or organizational changes necessary for 
143.32 	implementation;
143.33 	(3) the cost of determining how an organization would implement group or other 
143.34 	software;
144.1 	(4) the cost of upgrading existing software or purchasing new software and other 
144.2 	technology upgrades needed for implementation;
144.3 	(5) the cost of educating and training staff about the new system as applied to 
144.4 	workers' compensation; and 
144.5 	(6) the cost of integrating the new system with electronic billing and remittance 
144.6 	systems.
144.7 	(d) This section expires June 30, 2016.

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

144.9 	Sec. 10. Laws 2015, First Special Session chapter 1, article 1, section 2, subdivision 3, 
144.10 	is amended to read:

144.11	Subd. 3.Workforce Development

144.12	Appropriations by Fund
	
144.13	General
	2,189,000
	1,789,000
	
144.14
144.15	Workforce 
Development
	17,567,000
	16,767,000
	
144.16 	(a) $1,039,000 each year from the general 
144.17 	fund and $3,104,000 each year from the 
144.18 	workforce development fund are for the adult 
144.19 	workforce development competitive grant 
144.20 	program. Of this amount, up to five percent 
144.21 	is for administration and monitoring of the 
144.22 	adult workforce development competitive 
144.23 	grant program. All grant awards shall be 
144.24 	for two consecutive years. Grants shall be 
144.25 	awarded in the first year.
144.26 	(b) $4,050,000 each year is from the 
144.27 	workforce development fund for the 
144.28 	Minnesota youth program under Minnesota 
144.29 	Statutes, sections 116L.56 and 116L.561, to 
144.30 	provide employment and career advising to 
144.31 	youth, including career guidance in secondary 
144.32 	schools, to address the youth career advising 
144.33 	deficiency, to carry out activities outlined 
144.34 	in Minnesota Statutes, section 116L.561, 
145.1 	to provide support services, and to provide 
145.2 	work experience to youth in the workforce 
145.3 	service areas. The funds in this paragraph 
145.4 	may be used for expansion of the pilot 
145.5 	program combining career and higher 
145.6 	education advising in Laws 2013, chapter 85, 
145.7 	article 3, section 27. Activities in workforce 
145.8 	services areas under this paragraph may 
145.9 	serve all youth up to age 24.
145.10 	(c) $1,000,000 each year is from the 
145.11 	workforce development fund for the 
145.12 	youthbuild program under Minnesota 
145.13 	Statutes, sections 116L.361 to 116L.366.
145.14 	(d) $450,000 each year is from the workforce 
145.15 	development fund for a grant to Minnesota 
145.16 	Diversified Industries, Inc., to provide 
145.17 	progressive development and employment 
145.18 	opportunities for people with disabilities.
145.19 	(e) $3,348,000 each year is from the 
145.20 	workforce development fund for the "Youth 
145.21 	at Work" youth workforce development 
145.22 	competitive grant program. Of this amount, 
145.23 	up to five percent is for administration 
145.24 	and monitoring of the youth workforce 
145.25 	development competitive grant program. All 
145.26 	grant awards shall be for two consecutive 
145.27 	years. Grants shall be awarded in the first 
145.28 	year.
145.29 	(f) $500,000 each year is from the workforce 
145.30 	development fund for the Opportunities 
145.31 	Industrialization Center programs.
145.32 	(g) $750,000 each year is from the workforce 
145.33 	development fund for a grant to the 
145.34 	Minnesota Alliance of Boys and Girls 
145.35 	Clubs to administer a statewide project 
146.1 	of youth jobs skills development. This 
146.2 	project, which may have career guidance 
146.3 	components, including health and life skills, 
146.4 	is to encourage, train, and assist youth in 
146.5 	job-seeking skills, workplace orientation, 
146.6 	and job-site knowledge through coaching. 
146.7 	This grant requires a 25 percent match from 
146.8 	nonstate resources.
146.9 	(h) $250,000 the first year and $250,000 the 
146.10 	second year are for pilot programs in the 
146.11 	workforce service areas to combine career 
146.12 	and higher education advising.
146.13 	(i) $215,000 each year is from the workforce 
146.14 	development fund for a grant to Big 
146.15 	Brothers, Big Sisters of the Greater Twin 
146.16 	Cities for workforce readiness, employment 
146.17 	exploration, and skills development for 
146.18 	youth ages 12 to 21. The grant must serve 
146.19 	youth in the Twin Cities, Central Minnesota 
146.20 	and Southern Minnesota Big Brothers, Big 
146.21 	Sisters chapters.
146.22 	(j) $900,000 in fiscal year 2016 and 
146.23 	$1,100,000 in fiscal year 2017 are from the 
146.24 	workforce development fund for a grant to the 
146.25 	Minnesota High Tech Association to support 
146.26 	SciTechsperience, a program that supports 
146.27 	science, technology, engineering, and math 
146.28 	(STEM) internship opportunities for two- 
146.29 	and four-year college students in their field 
146.30 	of study. The internship opportunities 
146.31 	must match students with paid internships 
146.32 	within STEM disciplines at small, for-profit 
146.33 	companies located in the seven-county 
146.34 	metropolitan area, having fewer than 150 
146.35 	total employees; or at small or medium, 
147.1 	for-profit companies located outside of the 
147.2 	seven-county metropolitan area, having 
147.3 	fewer than 250 total employees. At least 200 
147.4 	students must be matched in the first year 
147.5 	and at least 250 students must be matched in 
147.6 	the second year. Selected hiring companies 
147.7 	shall receive from the grant 50 percent of the 
147.8 	wages paid to the intern, capped at $2,500 
147.9 	per intern. The program must work toward 
147.10 	increasing the participation among women or 
147.11 	other underserved populations.
147.12 	(k) $50,000 each year is from the workforce 
147.13 	development fund for a grant to the St. Cloud 
147.14 	Area Somali Salvation Youth Organization 
147.15 	for youth development and crime prevention 
147.16 	activities. Grant funds may be used to 
147.17 	train and place mentors in elementary and 
147.18 	secondary schools; for athletic, social, 
147.19 	and other activities to foster leadership 
147.20 	development; to provide a safe place for 
147.21 	participating youth to gather after school, on 
147.22 	weekends, and on holidays; and activities to 
147.23 	improve the organizational and job readiness 
147.24 	skills of participating youth. This is a 
147.25 	onetime appropriation and is available until 
147.26 	June 30, 2019. Funds appropriated the first 
147.27 	year are available for use in the second year 
147.28 	of the biennium.
147.29 	(l) $500,000 each year is for rural career 
147.30 	counseling coordinator positions in the 
147.31 	workforce service areas and for the purposes 
147.32 	specified in Minnesota Statutes, section 
147.33 	116L.667. The commissioner, in consultation 
147.34 	with local workforce investment boards and 
147.35 	local elected officials in each of the service 
147.36 	areas receiving funds, shall develop a method 
148.1 	of distributing funds to provide equitable 
148.2 	services across workforce service areas.
148.3 	(m) $400,000 in fiscal year 2016 is for a grant 
148.4 	to YWCA Saint Paul for training and job 
148.5 	placement assistance, including commercial 
148.6 	driver's license training, through the job 
148.7 	placement and retention program. This is a 
148.8 	onetime appropriation.
148.9 	(n) $800,000 in fiscal year 2016 is from 
148.10 	the workforce development fund for 
148.11 	the customized training program for 
148.12 	manufacturing industries under article 2, 
148.13 	section 24. This is a onetime appropriation 
148.14 	and is available in either year of the 
148.15 	biennium. Of this amount:
148.16 	(1) $350,000 is for a grant to Central Lakes 
148.17 	College for the purposes of this paragraph;
148.18 	(2) $250,000 is for Minnesota West 
148.19 	Community and Technical College for the 
148.20 	purposes of this paragraph; and
148.21 	(3) $200,000 is for South Central College for 
148.22 	the purposes of this paragraph.
148.23 	(o) $500,000 each year is from the workforce 
148.24 	development fund for a grant to Resource, 
148.25 	Inc. to provide low-income individuals 
148.26 	career education and job skills training that 
148.27 	are fully integrated with chemical and mental 
148.28 	health services.
148.29 	(p) $200,000 in fiscal year 2016 and $200,000 
148.30 	in fiscal year 2017 are from the workforce 
148.31 	development fund for performance grants 
148.32 	under Minnesota Statutes, section 116J.8747, 
148.33 	to Twin Cities RISE! to provide training to 
149.1 	hard-to-train individuals. This is a onetime 
149.2 	appropriation.
149.3 	(q) $200,000 in fiscal year 2016 is from 
149.4 	the workforce development fund for the 
149.5 	foreign-trained health care professionals 
149.6 	grant program modeled after the pilot 
149.7 	program conducted under Laws 2006, 
149.8 	chapter 282, article 11, section 2, subdivision 
149.9 	12, to encourage state licensure of 
149.10 	foreign-trained health care professionals, 
149.11 	including: physicians, with preference given 
149.12 	to primary care physicians who commit 
149.13 	to practicing for at least five years after 
149.14 	licensure in underserved areas of the state; 
149.15 	nurses; dentists; pharmacists; mental health 
149.16 	professionals; and other allied health care 
149.17 	professionals. The commissioner must 
149.18 	collaborate with health-related licensing 
149.19 	boards and Minnesota workforce centers to 
149.20 	award grants to foreign-trained health care 
149.21 	professionals sufficient to cover the actual 
149.22 	costs of taking a course to prepare health 
149.23 	care professionals for required licensing 
149.24 	examinations and the fee for the state 
149.25 	licensing examinations. When awarding 
149.26 	grants, the commissioner must consider the 
149.27 	following factors:
149.28 	(1) whether the recipient's training involves 
149.29 	a medical specialty that is in high demand in 
149.30 	one or more communities in the state;
149.31 	(2) whether the recipient commits to 
149.32 	practicing in a designated rural area or an 
149.33 	underserved urban community, as defined in 
149.34 	Minnesota Statutes, section 144.1501;
150.1 	(3) whether the recipient's language skills 
150.2 	provide an opportunity for needed health care 
150.3 	access for underserved Minnesotans; and
150.4 	(4) any additional criteria established by the 
150.5 	commissioner.
150.6 	This is a onetime appropriation and is 
150.7 	available until June 30, 2019.

150.8 	Sec. 11. Laws 2015, First Special Session chapter 1, article 1, section 6, is amended to 
150.9 	read:

150.10
150.11	Sec. 6. BUREAU OF MEDIATION 
SERVICES
 	$
	2,208,000
	$
	2,234,000
2,622,000
	
150.12 	(a) $68,000 each year is for grants to area 
150.13 	labor management committees. Grants may 
150.14 	be awarded for a 12-month period beginning 
150.15 	July 1 each year. Any unencumbered balance 
150.16 	remaining at the end of the first year does not 
150.17 	cancel but is available for the second year.
150.18 	(b) $125,000 each year is for purposes of the 
150.19 	Public Employment Relations Board under 
150.20 	Minnesota Statutes, section 179A.041.
150.21 	(c) $256,000 each year is in fiscal year 
150.22 	2016 and $394,000 in fiscal year 2017 are
150.23 	for the Office of Collaboration and Dispute 
150.24 	Resolution under Minnesota Statutes, section 
150.25 	179.90. The base appropriation for this 
150.26 	purpose is $394,000 in fiscal year 2018 and 
150.27 	$394,000 in fiscal year 2019. Of this amount, 
150.28 	$160,000 each year is for grants under 
150.29 	Minnesota Statutes, section 179.91, and 
150.30 	$96,000 each year is for intergovernmental 
150.31 	and public policy collaboration and operation 
150.32 	of the office.
151.1 	(d) $250,000 is to complete the Case 
151.2 	Management System-Database Project Phase 
151.3 	II. This is a onetime appropriation.

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

151.5 	Sec. 12. Minnesota Statutes 2014, section 61A.24, is amended by adding a subdivision 
151.6 	to read:
151.7 		Subd. 12b.Mortality table; exception. Notwithstanding subdivisions 12, 12a, or 
151.8 	any other law to the contrary, a company may use the Commissioners 2017 Standard 
151.9 	Ordinary Mortality Table in determining the minimum nonforfeiture standard for policies 
151.10 	issued on or after January 1, 2017.

151.11 	Sec. 13. Minnesota Statutes 2014, section 61A.25, is amended by adding a subdivision 
151.12 	to read:
151.13 		Subd. 10.Mortality table; exception. Notwithstanding anything in this section, 
151.14 	or any other law to the contrary, a company may use the Commissioners 2017 Standard 
151.15 	Ordinary Mortality Table in determining the minimum valuation standard for policies 
151.16 	issued on or after January 1, 2017.

151.17 	Sec. 14. Minnesota Statutes 2014, section 116J.423, is amended to read:
151.18 	116J.423 MINNESOTA MINERALS 21ST CENTURY FUND.
151.19 		Subdivision 1.Created. The Minnesota minerals 21st century fund is created 
151.20 	as a separate account in the treasury. Money in the account is appropriated to the 
151.21 	commissioner of employment and economic development for the purposes of this section. 
151.22 	All money earned by the account, loan repayments of principal and interest, and earnings 
151.23 	on investments must be credited to the account. For the purpose of this section, "fund" 
151.24 	means the Minnesota minerals 21st century fund. The commissioner shall operate the 
151.25 	account as a revolving account.
151.26 		Subd. 2.Use of fund. The commissioner shall use money in the fund to make loans 
151.27 	or equity investments in mineral, steel, or taconiteany other industry processing facilities, 
151.28 	steel production facilities, facilities for the manufacturing of renewable energy products, 
151.29 	or facilities for the manufacturing of biobased or biomass products,manufacturing, or 
151.30 	technology project that would enhance the economic diversification and that areis located 
151.31 	within the taconite relief tax area as defined under section 273.134. The commissioner 
151.32 	must, prior to making any loans or equity investments and after consultation with industry 
152.1 	and public officials, develop a strategy for making loans and equity investments that 
152.2 	assists the Minnesota mineral industry in becoming globally competitive taconite relief 
152.3 	area in retaining and enhancing its economic competitiveness. Money in the fund may 
152.4 	also be used to pay for the costs of carrying out the commissioner's due diligence duties 
152.5 	under this section.
152.6 		Subd. 2a.Grants authorized. Notwithstanding subdivision 2, the commissioner 
152.7 	may use money in the fund to make grants to a municipality or county, or to a county 
152.8 	regional rail authority as appropriate, for public infrastructure needed to support an 
152.9 	eligible project under this section. Grant money may be used by the municipality, county, 
152.10 	or regional rail authority to acquire right-of-way and mitigate loss of wetlands and runoff 
152.11 	of storm water; to predesign, design, construct, and equip roads and rail lines; and, in 
152.12 	cooperation with municipal utilities, to predesign, design, construct, and equip natural 
152.13 	gas pipelines, electric infrastructure, water supply systems, and wastewater collection and 
152.14 	treatment systems. Grants made under this subdivision are available until expended.
152.15 		Subd. 3.Requirements prior to committing funds. The commissioner, prior to 
152.16 	making a commitment for a loan or equity investment must, at a minimum, conduct due 
152.17 	diligence research regarding the proposed loan or equity investment, including contracting 
152.18 	with professionals as needed to assist in the due diligence.
152.19 		Subd. 4.Requirements for fund disbursements. The commissioner may make 
152.20 	conditional commitments for loans or equity investments but disbursements of funds 
152.21 	pursuant to a commitment may not be made until commitments for the remainder of a 
152.22 	project's funding are made that are satisfactory to the commissioner and disbursements 
152.23 	made from the other commitments sufficient to protect the interests of the state in its 
152.24 	loan or investment.
152.25 		Subd. 5.Company contribution. The commissioner may provide loans or equity 
152.26 	investments that match, in a proportion determined by the commissioner, an investment 
152.27 	made by the owner of a facility.

152.28 	Sec. 15. Minnesota Statutes 2014, section 116J.424, is amended to read:
152.29 	116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD 
152.30 	CONTRIBUTION.
152.31 	The commissioner of the Iron Range Resources and Rehabilitation Board with 
152.32 	approval by the board, shallmay provide an equal match for any loan or equity investment 
152.33 	made for a facilityproject located in the tax relief area defined in section 273.134, 
152.34 	paragraph (b), by the Minnesota minerals 21st century fund created by section 116J.423. 
152.35 	The match may be in the form of a loan or equity investment, notwithstanding whether 
153.1 	the fund makes a loan or equity investment. The state shall not acquire an equity interest 
153.2 	because of an equity investment or loan by the board and the board at its sole discretion 
153.3 	shall decide what interest it acquires in a project. The commissioner of employment and 
153.4 	economic development may require a commitment from the board to make the match 
153.5 	prior to disbursing money from the fund.

153.6 	Sec. 16. Minnesota Statutes 2014, section 116J.431, subdivision 1, is amended to read:
153.7 		Subdivision 1.Grant program established; purpose. (a) The commissioner shall 
153.8 	make grants to counties or cities to provide up to 50 percent of the capital costs of public 
153.9 	infrastructure necessary for an eligible economic development project. The county or city 
153.10 	receiving a grant must provide for the remainder of the costs of the project, either in cash 
153.11 	or in kind. In-kind contributions may include the value of site preparation other than the 
153.12 	public infrastructure needed for the project.
153.13 	(b) The purpose of the grants made under this section is to keep or enhance jobs in 
153.14 	the area, increase the tax base, or to expand or create new economic development.
153.15 	(c) In awarding grants under this section, the commissioner must adhere to the 
153.16 	criteria under subdivision 4.
153.17 	(d) If the commissioner awards a grant for less than 50 percent of the project, the 
153.18 	commissioner shall provide the applicant and the chairs and ranking minority members 
153.19 	of the senate and house of representatives committees with jurisdiction over economic 
153.20 	development finance a written explanation of the reason less than 50 percent of the capital 
153.21 	costs were awarded in the grant.

153.22 	Sec. 17. Minnesota Statutes 2014, section 116J.431, subdivision 2, is amended to read:
153.23 		Subd. 2.Eligible projects. An economic development project for which a county or 
153.24 	city may be eligible to receive a grant under this section includes:
153.25 	(1) manufacturing;
153.26 	(2) technology;
153.27 	(3) warehousing and distribution;
153.28 	(4) research and development;
153.29 	(5) agricultural processing, defined as transforming, packaging, sorting, or grading 
153.30 	livestock or livestock products into goods that are used for intermediate or final 
153.31 	consumption, including goods for nonfood use; or
153.32 	(6) industrial park development that would be used by any other business listed in 
153.33 	this subdivision even if no business has committed to locate in the industrial park at the 
153.34 	time the grant application is made.

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

154.2 	Sec. 18. Minnesota Statutes 2014, section 116J.431, subdivision 4, is amended to read:
154.3 		Subd. 4.Application. (a) The commissioner must develop forms and procedures 
154.4 	for soliciting and reviewing applications for grants under this section. At a minimum, a 
154.5 	county or city must include in its application a resolution of the county or city council 
154.6 	certifying that the required local match is available. The commissioner must evaluate 
154.7 	complete applications for eligible projects using the following criteria:
154.8 	(1) the project is an eligible project as defined under subdivision 2;
154.9 	(2) the project will is expected to  result in or will attract substantial public and 
154.10 	private capital investment and provide substantial economic benefit to the county or city in 
154.11 	which the project would be located;
154.12 	(3) the project is not relocating substantially the same operation from another 
154.13 	location in the state, unless the commissioner determines the project cannot be reasonably 
154.14 	accommodated within the county or city in which the business is currently located, or the 
154.15 	business would otherwise relocate to another state; and
154.16 	(4) the project is expected to or will create or maintain retain full-time jobs.
154.17 	(b) The determination of whether to make a grant for a site is within the discretion of 
154.18 	the commissioner, subject to this section. The commissioner's decisions and application of 
154.19 	the priorities criteria are not subject to judicial review, except for abuse of discretion.

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

154.21 	Sec. 19. Minnesota Statutes 2014, section 116J.431, subdivision 6, is amended to read:
154.22 		Subd. 6.Maximum grant amount. A county or city may receive no more than 
154.23 	$1,000,000 $2,000,000 in two years for one or more projects.

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

154.25 	Sec. 20. Minnesota Statutes 2014, section 116J.68, is amended to read:
154.26 	116J.68 BUREAU OF SMALL BUSINESS.
154.27 		Subdivision 1.Generally. The Bureau of Small Business within the business 
154.28 	assistance center shall serve as a clearinghouse, technical assistance center, and referral 
154.29 	service for information and other assistance needed by small businesses including small 
154.30 	targeted group businesses and small businesses located in an economically disadvantaged 
154.31 	area.
154.32 		Subd. 2.Duties. The bureau shall:
155.1 	(1) provide information and assistance with respect to all aspects of business 
155.2 	planning, business finance, and business management related to the start-up, operation, or 
155.3 	expansion of a small business in Minnesota;
155.4 	(2) refer persons interested in the start-up, operation, or expansion of a small 
155.5 	business in Minnesota to assistance programs sponsored by federal agencies, state 
155.6 	agencies, educational institutions, chambers of commerce, civic organizations, community 
155.7 	development groups, private industry associations, and other organizations;
155.8 	(3) plan, develop, and implement a master file of information on small business 
155.9 	assistance programs of federal, state, and local governments, and other public and private 
155.10 	organizations so as to provide comprehensive, timely information to the bureau's clients;
155.11 	(4) employ staff with adequate and appropriate skills and education and training for 
155.12 	the delivery of information and assistance;
155.13 	(5) seek out and utilize, to the extent practicable, contributed expertise and services 
155.14 	of federal, state, and local governments, educational institutions, and other public and 
155.15 	private organizations;
155.16 	(6) maintain a close and continued relationship with the director of the procurement 
155.17 	program within the Department of Administration so as to facilitate the department's 
155.18 	duties and responsibilities under sections 16C.16 to 16C.19 relating to the small targeted 
155.19 	group business and economically disadvantaged business program of the state;
155.20 	(7) develop an information system which will enable the commissioner and other 
155.21 	state agencies to efficiently store, retrieve, analyze, and exchange data regarding small 
155.22 	business development and growth in the state. All executive branch agencies of state 
155.23 	government and the secretary of state shall to the extent practicable, assist the bureau in 
155.24 	the development and implementation of the information system;
155.25 	(8) establish and maintain a toll-free telephone number, e-mail account, and other 
155.26 	electronic contact mediums determined by the commissioner so that all small business 
155.27 	persons anywhere in the state can call may contact the bureau office for assistance. 
155.28 	An outreach program shall be established to make the existence of the bureau and the 
155.29 	assistance and services the bureau may provide to small businesses well known to its 
155.30 	potential clientele throughout the state. If the small business person requires a referral to 
155.31 	another provider the bureau may use the business assistance referral system established by 
155.32 	the Minnesota Project Outreach Corporation;
155.33 	(9) conduct research and provide data as required by the state legislature;
155.34 	(10) develop and publish material on all aspects of the start-up, operation, or 
155.35 	expansion of a small business in Minnesota;
156.1 	(11) collect and disseminate information on state procurement opportunities, 
156.2 	including information on the procurement process;
156.3 	(12) develop a public awareness program through the use of regarding state 
156.4 	assistance programs for small businesses, including those programs specifically for 
156.5 	socially disadvantaged small business persons. The commissioner may utilize print and 
156.6 	electronic newsletters, personal contacts, and advertising devices as defined in section 
156.7 	173.02, subdivision 16, social media, other electronic and print news media advertising 
156.8 	about state assistance programs for small businesses, including those programs specifically 
156.9 	for socially disadvantaged small business persons, and any other means determined by 
156.10 	the commissioner;
156.11 	(13) enter into agreements with the federal government and other public and private 
156.12 	entities to serve as the statewide coordinator or host agency for the federal small business 
156.13 	development center program under United States Code, title 15, section 648; and
156.14 	(14) assist providers in the evaluation of their programs and the assessment of 
156.15 	their service area needs. The bureau may establish model evaluation techniques and 
156.16 	performance standards for providers to use.

156.17 	Sec. 21. Minnesota Statutes 2014, section 116J.8737, subdivision 3, is amended to read:
156.18 		Subd. 3.Certification of qualified investors. (a) Investors may apply to the 
156.19 	commissioner for certification as a qualified investor for a taxable year. The application 
156.20 	must be in the form and be made under the procedures specified by the commissioner, 
156.21 	accompanied by an application fee of $350. Application fees are deposited in the small 
156.22 	business investment tax credit administration account in the special revenue fund. The 
156.23 	application for certification for 2010 must be made available on the department's Web 
156.24 	site by August 1, 2010. Applications for subsequent years' certification must be made 
156.25 	available on the department's Web site by November 1 of the preceding year.
156.26 	(b) Within 30 days of receiving an application for certification under this subdivision, 
156.27 	the commissioner must either certify the investor as satisfying the conditions required 
156.28 	of a qualified investor, request additional information from the investor, or reject the 
156.29 	application for certification. If the commissioner requests additional information from the 
156.30 	investor, the commissioner must either certify the investor or reject the application within 
156.31 	30 days of receiving the additional information. If the commissioner neither certifies the 
156.32 	investor nor rejects the application within 30 days of receiving the original application or 
156.33 	within 30 days of receiving the additional information requested, whichever is later, then 
156.34 	the application is deemed rejected, and the commissioner must refund the $350 application 
156.35 	fee. An investor who applies for certification and is rejected may reapply.
157.1 	(c) To receive certification, an investor must (1) be a natural person; and (2) certify 
157.2 	to the commissioner that the investor will only invest in a transaction that is exempt under 
157.3 	section 80A.46, clause (13) or (14), in a security exempt under section 80A.461, or in a 
157.4 	security registered under section 80A.50, paragraph (b).
157.5 	(d) In order for a qualified investment in a qualified small business to be eligible 
157.6 	for tax credits, a qualified investor who makes the investment must have applied for 
157.7 	and received certification for the calendar year prior to making the qualified investment, 
157.8 	except in the case of an investor who is not an accredited investor, within the meaning of 
157.9 	Regulation D of the Securities and Exchange Commission, Code of Federal Regulations, 
157.10 	title 17, section 230.501, paragraph (a), application for certification may be made within 
157.11 	30 days after making the qualified investment.

157.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
157.13 	December 31, 2015.

157.14 	Sec. 22. Minnesota Statutes 2014, section 116J.8747, subdivision 1, is amended to read:
157.15 		Subdivision 1.Grant allowed. The commissioner may provide a grant to a qualified 
157.16 	job training program from money appropriated for the purposes of this section as follows:
157.17 	(1) a $9,000an $11,000 placement grant paid to a job training program upon 
157.18 	placement in employment of a qualified graduate of the program; and
157.19 	(2) a $9,000an $11,000 retention grant paid to a job training program upon retention 
157.20 	in employment of a qualified graduate of the program for at least one year.

157.21 	Sec. 23. Minnesota Statutes 2014, section 116J.8747, subdivision 2, is amended to read:
157.22 		Subd. 2.Qualified job training program. To qualify for grants under this section, 
157.23 	a job training program must satisfy the following requirements:
157.24 	(1) the program must be operated by a nonprofit corporation that qualifies under 
157.25 	section 501(c)(3) of the Internal Revenue Code;
157.26 	(2) the program must spend at least, on average, $15,000 or more per graduate 
157.27 	of the program;
157.28 	(3) the program must provide education and training in:
157.29 	(i) basic skills, such as reading, writing, mathematics, and communications;
157.30 	(ii) thinking skills, such as reasoning, creative thinking, decision making, and 
157.31 	problem solving; and
157.32 	(iii) personal qualities, such as responsibility, self-esteem, self-management, 
157.33 	honesty, and integrity;
158.1 	(4) the program mustmay provide income supplements, when needed, to participants 
158.2 	for housing, counseling, tuition, and other basic needs;
158.3 	(5) the program's education and training course must last for an average of at least 
158.4 	six months;
158.5 	(6) individuals served by the program must:
158.6 	(i) be 18 years of age or older;
158.7 	(ii) have federal adjusted gross income of no more than $11,000$12,000 per year in 
158.8 	the calendar year immediately before entering the program;
158.9 	(iii) have assets of no more than $7,000 $10,000, excluding the value of a 
158.10 	homestead; and
158.11 	(iv) not have been claimed as a dependent on the federal tax return of another person 
158.12 	in the previous taxable year; and
158.13 	(7) the program must be certified by the commissioner of employment and economic 
158.14 	development as meeting the requirements of this subdivision.

158.15 	Sec. 24. Minnesota Statutes 2014, section 116M.14, subdivision 2, is amended to read:
158.16 		Subd. 2.Board. "Board" means the Urban Initiative Board. Minnesota emerging 
158.17 	entrepreneur program.

158.18 	EFFECTIVE DATE. This section is effective July 1, 2016.

158.19 	Sec. 25. Minnesota Statutes 2014, section 116M.14, is amended by adding a 
158.20 	subdivision to read:
158.21 		Subd. 3a.Department. "Department" means the Department of Employment and 
158.22 	Economic Development.

158.23 	EFFECTIVE DATE. This section is effective July 1, 2016.

158.24 	Sec. 26. Minnesota Statutes 2014, section 116M.14, subdivision 4, is amended to read:
158.25 		Subd. 4.Low-income area. "Low-income area" means:
158.26 	(1) Minneapolis, St. Paul;
158.27 	(2) those cities in the metropolitan area as defined in section 473.121, subdivision 
158.28 	2, that have an average income that is below 80 percent of the median income for a 
158.29 	four-person family as of the latest report by the United States Census Bureau; and
158.30 	(3) those cities in the metropolitan area, which contain two or more contiguous 
158.31 	census tracts in which the average family income is less than 80 percent of the median 
158.32 	family income for the Twin Citiesthe area outside the metropolitan area.

159.1 	EFFECTIVE DATE. This section is effective July 1, 2016.

159.2 	Sec. 27. Minnesota Statutes 2014, section 116M.14, is amended by adding a 
159.3 	subdivision to read:
159.4 		Subd. 4a.Low-income person. "Low-income person" means a person who has 
159.5 	an annual income, adjusted for family size, of not more than 80 percent of the area 
159.6 	median family income for the county of residence as of the latest report by the United 
159.7 	States Census Bureau.

159.8 	EFFECTIVE DATE. This section is effective July 1, 2016.

159.9 	Sec. 28. Minnesota Statutes 2014, section 116M.14, is amended by adding a 
159.10 	subdivision to read:
159.11 		Subd. 4b.Metropolitan area. "Metropolitan area" has the meaning given in section 
159.12 	473.121, subdivision 2.

159.13 	EFFECTIVE DATE. This section is effective July 1, 2016.

159.14 	Sec. 29. Minnesota Statutes 2014, section 116M.14, is amended by adding a 
159.15 	subdivision to read:
159.16 		Subd. 6.Minority person. "Minority person" means a person belonging to a racial 
159.17 	or ethnic minority as defined in Code of Federal Regulations, title 49, section 23.5.

159.18 	EFFECTIVE DATE. This section is effective July 1, 2016.

159.19 	Sec. 30. Minnesota Statutes 2014, section 116M.14, is amended by adding a 
159.20 	subdivision to read:
159.21 		Subd. 7.Program. "Program" means the Minnesota emerging entrepreneur 
159.22 	program created by this chapter.

159.23 	EFFECTIVE DATE. This section is effective July 1, 2016.

159.24 	Sec. 31. Minnesota Statutes 2014, section 116M.14, is amended by adding a 
159.25 	subdivision to read:
159.26 		Subd. 8.Veteran. "Veteran" means a veteran as defined in section 197.447.

159.27 	EFFECTIVE DATE. This section is effective July 1, 2016.

160.1 	Sec. 32. Minnesota Statutes 2014, section 116M.14, is amended by adding a 
160.2 	subdivision to read:
160.3 		Subd. 9.Persons with disabilities. "Persons with disabilities" means an individual 
160.4 	with a disability, as defined under the Americans with Disabilities Act, United States 
160.5 	Code, title 42, section 12102.

160.6 	EFFECTIVE DATE. This section is effective July 1, 2016.

160.7 	Sec. 33. Minnesota Statutes 2014, section 116M.15, subdivision 1, is amended to read:
160.8 		Subdivision 1.Creation; Membership. The Urban InitiativeMinnesota Emerging 
160.9 	Entrepreneur Board is created and consists of the commissioner of employment and 
160.10 	economic development, the commissioner of human rights, the chair of the Metropolitan 
160.11 	Council, and eight12 members from the general public appointed by the governor. Six
160.12 	Nine of the public members must be representatives from minority business enterprises. 
160.13 	No more than foursix of the public members may be of one gender. At least one member 
160.14 	must be a representative from a veteran-owned business, and at least one member must 
160.15 	be a representative from a business owned by a person with disabilities. Appointments 
160.16 	must ensure balanced geographic representation. At least half of the public members must 
160.17 	have experience working to address racial income disparities. All public members must be 
160.18 	experienced in business or economic development.

160.19 	EFFECTIVE DATE. This section is effective July 1, 2016.

160.20 	Sec. 34. Minnesota Statutes 2014, section 116M.15, is amended by adding a 
160.21 	subdivision to read:
160.22 		Subd. 1a.Board responsibilities. The board shall:
160.23 	(1) submit a report to the commissioner by February 1 of each year describing 
160.24 	the condition of Minnesota small businesses that are majority owned and operated by a 
160.25 	racial or ethnic minority, woman, veteran, or a person with disabilities, along with any 
160.26 	policy recommendations;
160.27 	(2) act as a liaison between the department and nonprofit corporations engaged in 
160.28 	small business development support activities; and
160.29 	(3) assist the department in informational outreach about the program.

160.30 	EFFECTIVE DATE. This section is effective July 1, 2016.

160.31 	Sec. 35. Minnesota Statutes 2014, section 116M.17, subdivision 2, is amended to read:
161.1 		Subd. 2.Technical assistance. The board through the department, shall provide 
161.2 	technical assistance and development information services to state agencies, regional 
161.3 	agencies, special districts, local governments, and the public, with special emphasis on 
161.4 	minority communities informational outreach about the program to lenders, nonprofit 
161.5 	corporations, and low-income and minority communities throughout the state that support 
161.6 	the development of business enterprises and entrepreneurs.

161.7 	EFFECTIVE DATE. This section is effective July 1, 2016.

161.8 	Sec. 36. Minnesota Statutes 2014, section 116M.17, subdivision 4, is amended to read:
161.9 		Subd. 4.Reports. The board shall submit an annual report to the legislature of an 
161.10 	accounting of loans made under section 116M.18, including information on loans to 
161.11 	minority business enterprises made,  the number of jobs created by the program, the impact 
161.12 	on low-income areas, and recommendations concerning minority business development 
161.13 	and jobs for persons in low-income areas.

161.14 	EFFECTIVE DATE. This section is effective July 1, 2016.

161.15 	Sec. 37. Minnesota Statutes 2014, section 116M.18, is amended to read:
161.16 	116M.18 URBAN CHALLENGE GRANTSMINNESOTA EMERGING 
161.17 	ENTREPRENEUR PROGRAM.
161.18 		Subdivision 1.Establishment. The Minnesota emerging entrepreneur program is 
161.19 	established to award grants to nonprofit corporations to fund loans to businesses owned by 
161.20 	minority or low-income persons, women, veterans, or people with disabilities.
161.21 		Subd. 1a.Statewide loans. To the extent there is sufficient eligible demand, 
161.22 	loans shall be made so that an approximately equal dollar amount of loans are made to 
161.23 	businesses in the metropolitan area as in the nonmetropolitan area. After September 
161.24 	30 of each calendar year, the department may allow loans to be made anywhere in the 
161.25 	state without regard to geographic area.
161.26 		Subdivision 1 Subd. 1b.Eligibility rules Grants. The boarddepartment shall 
161.27 	make urban challenge  grants for use in low-income areas to nonprofit corporations to 
161.28 	fund loans to businesses owned by minority or low-income persons, women, veterans, or 
161.29 	people with disabilities  to encourage private investment, to provide jobs for minority and 
161.30 	low-income persons and others in low-income areas, to create and strengthen minority 
161.31 	business enterprises, and to promote economic development in a low-income area. The 
161.32 	board shall adopt rules to establish criteria for determining loan eligibility.
162.1 		Subd. 2.Challenge Grant eligibility; nonprofit corporation. (a) The board
162.2 	department may enter into agreements with nonprofit corporations to fund and guarantee
162.3 	loans the nonprofit corporation makes in low-income areas under subdivision 4. A 
162.4 	corporation must demonstrate that to businesses owned by minority or low-income 
162.5 	persons, women, veterans, or people with disabilities. The department shall evaluate 
162.6 	applications from nonprofit corporations. In evaluating applications, the department must 
162.7 	consider, among other things, whether the nonprofit corporation:
162.8 	(1) its has a board of directors that includes citizens experienced in business 
162.9 	and community development, minority business enterprises, addressing racial income 
162.10 	disparities, and creating jobs in low-income areas for low-income and minority persons;
162.11 	(2) it has the technical skills to analyze projects;
162.12 	(3) it is familiar with other available public and private funding sources and 
162.13 	economic development programs;
162.14 	(4) it can initiate and implement economic development projects;
162.15 	(5) it can establish and administer a revolving loan account or has operated a 
162.16 	revolving loan account; and
162.17 	(6) it can work with job referral networks which assist minority and other persons in 
162.18 	low-income areas low-income persons; and
162.19 	(7) has established relationships with minority communities.
162.20 	(b) The department shall review existing agreements with nonprofit corporations 
162.21 	every five years and may renew or terminate the agreement based on the review. In making 
162.22 	its review, the department shall consider, among other criteria, the criteria in paragraph (a).
162.23 		Subd. 3.Revolving loan fund. (a) The boarddepartment shall establish a revolving 
162.24 	loan fund to make grants to nonprofit corporations for the purpose of making loans and 
162.25 	loan guarantees to new and expanding businesses in a low-income area to promote owned 
162.26 	by minority or low-income persons, women, veterans, or people with disabilities, and to 
162.27 	support minority business enterprises and job creation for minority and other persons 
162.28 	in low-income areas low-income persons.
162.29 	(b) Nonprofit corporations that receive grants from the department under the 
162.30 	program must establish a commissioner-certified revolving loan fund for the purpose 
162.31 	of making eligible loans.
162.32 	(c) Eligible business enterprises include, but are not limited to, technologically 
162.33 	innovative industries, value-added manufacturing, and information industries. 
162.34 	(d) Loan applications given preliminary approval by the nonprofit corporation must 
162.35 	be forwarded to the boarddepartment for approval. The commissioner must give final 
162.36 	approval for each loan or loan guarantee made by the nonprofit corporation. The amount 
163.1 	of the state funds contributed to any loan or loan guarantee may not exceed 50 percent 
163.2 	of each loan.
163.3 		Subd. 4.Business loan criteria. (a) The criteria in this subdivision apply to loans 
163.4 	made or guaranteed by nonprofit corporations under the urban challenge grant program.
163.5 	(b) Loans or guarantees must be made to businesses that are not likely to undertake 
163.6 	a project for which loans are sought without assistance from the urban challenge grant 
163.7 	program.
163.8 	(c) A loan or guarantee must be used for a project designed to benefit persons in 
163.9 	low-income areas through the creation of job or business opportunities for them to support 
163.10 	a business owned by a minority or a low-income person, woman, veteran, or a person with 
163.11 	disabilities. Priority must be given for loans to the lowest income areas.
163.12 	(d) The minimum state contribution to a loan or guarantee is $5,000 and the 
163.13 	maximum is $150,000.
163.14 	(e) The state contribution must be matched by at least an equal amount of new 
163.15 	private investment.
163.16 	(f) A loan may not be used for a retail development project.
163.17 	(g) The business must agree to work with job referral networks that focus on 
163.18 	minority and low-income applicants from low-income areas.
163.19 		Subd. 4a.Microenterprise loan. Urban challenge Program grants may be 
163.20 	used to make microenterprise loans to small, beginning businesses, including a sole 
163.21 	proprietorship. Microenterprise loans are subject to this section except that:
163.22 	(1) they may also be made to qualified retail businesses;
163.23 	(2) they may be made for a minimum of $1,000 $5,000 and a maximum of $25,000 
163.24 	$35,000; and
163.25 	(3) in a low-income area, they may be made for a minimum of $5,000 and a 
163.26 	maximum of $50,000; and
163.27 	(3) (4) they do not require a match.
163.28 		Subd. 5.Revolving fund administration; rules. (a) The boarddepartment shall 
163.29 	establish a minimum interest rate for loans or guarantees to ensure that necessary loan 
163.30 	administration costs are covered. The interest rate charged by a nonprofit corporation for 
163.31 	a loan under this subdivision must not exceed the Wall Street Journal prime rate plus 
163.32 	four percent. For a loan under this subdivision, the nonprofit corporation may charge a 
163.33 	loan origination fee equal to or less than one percent of the loan value. The nonprofit 
163.34 	corporation may retain the amount of the origination fee.
163.35 	(b) Loan repayment amounts equal to one-half of the principal and interest must be 
163.36 	deposited in a revolving fund created by the board for challenge grants. The remaining 
164.1 	amount of the loan repayment may be paid to the department for deposit in the revolving 
164.2 	loan fund. Loan interest payments must be deposited in a revolving loan fund created by 
164.3 	the nonprofit corporation originating the loan being repaid for further distribution or use, 
164.4 	consistent with the loan criteria specified in subdivision 4of this section.
164.5 	(c) Administrative expenses of the board and nonprofit corporations with whom the 
164.6 	boarddepartment enters into agreements under subdivision 2, including expenses incurred 
164.7 	by a nonprofit corporation in providing financial, technical, managerial, and marketing 
164.8 	assistance to a business enterprise receiving a loan under subdivision 4, may be paid out 
164.9 	of the interest earned on loans and out of interest earned on money invested by the state 
164.10 	Board of Investment under section 116M.16, subdivision 2, as may be provided by the 
164.11 	board department.
164.12 		Subd. 6.Rules. The board shall adopt rules to implement this section.
164.13 		Subd. 6a.Nonprofit corporation loans. The board may make loans to a nonprofit 
164.14 	corporation with which it has entered into an agreement under subdivision 1 . These 
164.15 	loans must be used to support a new or expanding business. This support may include 
164.16 	such forms of financing as the sale of goods to the business on installment or deferred 
164.17 	payments, lease purchase agreements, or royalty investments in the business. The interest 
164.18 	rate charged by a nonprofit corporation for a loan under this subdivision must not exceed 
164.19 	the Wall Street Journal prime rate plus four percent. For a loan under this subdivision, the 
164.20 	nonprofit corporation may charge a loan origination fee equal to or less than one percent 
164.21 	of the loan value. The nonprofit corporation may retain the amount of the origination fee. 
164.22 	The nonprofit corporation must provide at least an equal match to the loan received by the 
164.23 	board. The maximum loan available to the nonprofit corporation under this subdivision is 
164.24 	$50,000. Loans made to the nonprofit corporation under this subdivision may be made 
164.25 	without interest. Repayments made by the nonprofit corporation must be deposited in the 
164.26 	revolving fund created for urban initiative grants.
164.27 		Subd. 7.Cooperation. A nonprofit corporation that receives an urban challengea 
164.28 	program grant shall cooperate with other organizations, including but not limited to, 
164.29 	community development corporations, community action agencies, and the Minnesota 
164.30 	small business development centers.
164.31 		Subd. 8.Reporting requirements. A nonprofit corporation that receives a 
164.32 	challenge program grant shall:
164.33 	(1) submit an annual report to the board and department by September March
164.34 	30 of each year that includes a description of projects businesses supported by the 
164.35 	urban challenge grant program, an account of loans made during the calendar year, the 
164.36 	program's impact on minority business enterprises and job creation for minority persons 
165.1 	and low-income persons in low-income areas, the source and amount of money collected 
165.2 	and distributed by the urban challenge grant program, the program's assets and liabilities, 
165.3 	and an explanation of administrative expenses; and
165.4 	(2) provide for an independent annual audit to be performed in accordance with 
165.5 	generally accepted accounting practices and auditing standards and submit a copy of each 
165.6 	annual audit report to the board department.

165.7 	EFFECTIVE DATE. This section is effective July 1, 2016.

165.8 	Sec. 38. Minnesota Statutes 2015 Supplement, section 326B.988, is amended to read:
165.9 	326B.988 EXCEPTIONS.
165.10 	(a) The provisions of sections 326B.95 to 326B.998 shall not apply to:
165.11 	(1) boilers and pressure vessels in buildings occupied solely for residence purposes 
165.12 	with accommodations for not more than five families;
165.13 	(2) railroad locomotives operated by railroad companies for transportation purposes;
165.14 	(3) air tanks installed on the right-of-way of railroads and used directly in the 
165.15 	operation of trains;
165.16 	(4) boilers and pressure vessels under the direct jurisdiction of the United States;
165.17 	(5) unfired pressure vessels having an internal or external working pressure not 
165.18 	exceeding 15 psig with no limit on size;
165.19 	(6) pressure vessels used for storage of compressed air not exceeding five cubic feet 
165.20 	in volume and equipped with an ASME code stamped safety valve set at a maximum of 
165.21 	100 psig;
165.22 	(7) pressure vessels having an inside diameter not exceeding six inches;
165.23 	(8) every vessel that contains water under pressure, including those containing air 
165.24 	that serves only as a cushion, whose design pressure does not exceed 300 psig and whose 
165.25 	design temperature does not exceed 210 degrees Fahrenheit;
165.26 	(9) boiler or pressure vessels located on farms used solely for agricultural or 
165.27 	horticultural purposes; for purposes of this section, boilers used for mint oil extraction 
165.28 	are considered used for agricultural or horticultural purposes, provided that the owner or 
165.29 	lessee complies with the inspection requirements contained in section 326B.958;
165.30 	(10) tanks or cylinders used for storage or transfer of liquefied petroleum gases;
165.31 	(11) unfired pressure vessels in petroleum refineries;
165.32 	(12) an air tank or pressure vessel which is an integral part of a passenger motor 
165.33 	bus, truck, or trailer;
166.1 	(13) hot water heating and other hot liquid boilers not exceeding a heat input of 
166.2 	750,000 BTU per hour;
166.3 	(14) hot water supply boilers (water heaters) not exceeding a heat input of 500,000 
166.4 	BTU per hour, a water temperature of 210 degrees Fahrenheit, a nominal water capacity 
166.5 	of 120 gallons, or a pressure of 160 psig;
166.6 	(15) a laundry and dry cleaning press not exceeding five cubic feet of steam volume;
166.7 	(16) pressure vessels operated full of water or other liquid not materially more 
166.8 	hazardous than water, if the vessel's contents' temperature does not exceed 210 degrees 
166.9 	Fahrenheit or a pressure of 200 psig;
166.10 	(17) steam-powered turbines at papermaking facilities which are powered by steam 
166.11 	generated by steam facilities at a remote location;
166.12 	(18) manually fired boilers for model locomotive, boat, tractor, stationary engine, 
166.13 	or antique motor vehicles constructed or maintained only as a hobby for exhibition, 
166.14 	educational or historical purposes and not for commercial use, if the boilers have an 
166.15 	inside diameter of 12 inches or less, or a grate area of two square feet or less, and are 
166.16 	equipped with an ASME stamped safety valve of adequate size, a water level indicator, 
166.17 	and a pressure gauge;
166.18 	(19) any pressure vessel used as an integral part of an electrical circuit breaker;
166.19 	(20) pressure vessels used for the storage of refrigerant if they are built to ASME 
166.20 	code specifications, registered with the national board, and equipped with an ASME 
166.21 	code-stamped pressure-relieving device set no higher than the maximum allowable 
166.22 	working pressure of the vessel. This does not include pressure vessels used in ammonia 
166.23 	refrigeration systems;
166.24 	(21) pressure vessels used for the storage of oxygen, nitrogen, helium, carbon dioxide, 
166.25 	argon, nitrous oxide, or other medical gas, provided the vessel is constructed to ASME 
166.26 	or Minnesota Department of Transportation specifications and equipped with an ASME 
166.27 	code-stamped pressure-relieving device. The owner of the vessels shall perform annual 
166.28 	visual inspections and planned maintenance on these vessels to ensure vessel integrity;
166.29 	(22) pressure vessels used for the storage of compressed air for self-contained 
166.30 	breathing apparatuses;
166.31 	(23) hot water heating or other hot liquid boilers vented directly to the atmosphere; 
166.32 	and
166.33 	(24) pressure vessels used for the storage of compressed air not exceeding 1.5 cubic 
166.34 	feet (11.22 gallons) in volume with a maximum allowable working pressure of 600 psi or 
166.35 	less.
166.36 	(b) An engineer's license is not required for hot water supply boilers.
167.1 	(c) An engineer's license and annual inspection by the department is not required 
167.2 	for boilers, steam cookers, steam kettles, steam sterilizers or other steam generators not 
167.3 	exceeding 100,000 BTU per hour input, 25 kilowatt, and a pressure of 15 psig.
167.4 	(d) Electric boilers not exceeding a maximum working pressure of 50 psig, 
167.5 	maximum of 30 kilowatt input or three horsepower rating shall be inspected as pressure 
167.6 	vessels and shall not require an engineer license to operate.
167.7 	(e) Sawmills, located in a county with a population of less than 8,000 according to 
167.8 	the last federal census and that utilize steam for the drying of lumber, are not required to 
167.9 	meet the high pressure boiler attendance requirements set forth in Minnesota Rules, part 
167.10 	5225.1180, only if all of the following conditions are met:
167.11 	(1) the owner complies with the inspection requirements under section 326B.958, 
167.12 	and the licensing requirements under section 326B.972; and
167.13 	(2) the boiler:
167.14 	(i) is equipped with electronic control systems that are remotely operated but which 
167.15 	require on-site manual reset of system faults;
167.16 	(ii) is remotely monitored for log water levels, boiler pressure, and steam flow;
167.17 	(iii) has automatic safety mechanisms built into the remote monitoring systems that 
167.18 	send an alarm upon detection of a fault condition, and an on-site alarm that will sound 
167.19 	upon detection of a fault condition and which may be heard at a distance of 500 feet;
167.20 	(iv) has a water treatment program that is supervised by a third party water treatment 
167.21 	company; and
167.22 	(v) is attended on site by a licensed boiler operator at least two times in a 24-hour 
167.23 	period. If the boiler is not attended more than twice in a 24-hour period, the period 
167.24 	between checks must not be less than eight hours.
167.25 	This paragraph expires August 1, 2016. This paragraph expires the sooner of August 
167.26 	1, 2018, or upon the effective date of a rule regulating high pressure boiler attendance 
167.27 	requirements at a sawmill described in this paragraph adopted after the effective date 
167.28 	of this act.

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

167.30 	Sec. 39. Minnesota Statutes 2014, section 462A.204, subdivision 1, is amended to read:
167.31 		Subdivision 1.Establishment. The agency may establish a family homeless 
167.32 	prevention and assistance program to assist families who are homeless or are at imminent 
167.33 	risk of homelessness. The term "family" may include single individuals. The agency may 
167.34 	make grants to develop and implement family homeless prevention and assistance projects 
168.1 	under the program. For purposes of this section, "families" means families and persons 
168.2 	under the age of 22 24 years of age or younger.

168.3 	Sec. 40. Minnesota Statutes 2014, section 462A.204, subdivision 3, is amended to read:
168.4 		Subd. 3.Set aside. At least one grant must be awarded in an area located outside of 
168.5 	the metropolitan area. A county, a group of contiguous counties jointly acting together, a 
168.6 	tribe, a group of tribes, or a community-based nonprofit organization with a sponsoring 
168.7 	resolution from each of the county boards of the counties located within its operating 
168.8 	jurisdiction may apply for and receive grants for areas located outside the metropolitan area.

168.9 	Sec. 41. [462A.38] WORKFORCE AND AFFORDABLE HOMEOWNERSHIP 
168.10 	DEVELOPMENT PROGRAM.
168.11 		Subdivision 1.Establishment. A workforce and affordable homeownership 
168.12 	development program is established to award homeownership development grants 
168.13 	to nonprofit organizations, cooperatives created under chapter 308A or 308B, and 
168.14 	community land trusts created for the purposes outlined in section 462A.31, subdivision 
168.15 	1, for development of workforce and affordable homeownership projects. The purpose 
168.16 	of the program is to increase the supply of workforce and affordable, owner-occupied 
168.17 	multifamily or single-family housing throughout Minnesota.
168.18 		Subd. 2.Use of funds. (a) Grant funds awarded under this program may be used for:
168.19 	(1) development costs;
168.20 	(2) rehabilitation;
168.21 	(3) land development; and
168.22 	(4) residential housing, including storm shelters and related community facilities.
168.23 	(b) A project funded through the grant program shall serve households that meet the 
168.24 	income limits as provided in section 462A.33, subdivision 5, unless a project is intended 
168.25 	for the purpose outlined in section 462A.02, subdivision 6.
168.26 		Subd. 3.Application. The commissioner shall develop forms and procedures for 
168.27 	soliciting and reviewing applications for grants under this section. The commissioner shall 
168.28 	consult with interested stakeholders when developing the guidelines and procedures for 
168.29 	the program. In making grants, the commissioner shall establish semiannual application 
168.30 	deadlines in which grants will be authorized from all or part of the available appropriations.
168.31 		Subd. 4.Awarding grants. Among comparable proposals, preference must be 
168.32 	given to proposals that include contributions from nonstate resources for the greatest 
168.33 	portion of the total development cost.
169.1 		Subd. 5.Statewide program. The agency shall attempt to make grants in 
169.2 	approximately equal amounts to applicants outside and within the metropolitan area.
169.3 		Subd. 6.Report. Beginning January 15, 2018, the commissioner must annually 
169.4 	submit a report to the chairs and ranking minority members of the senate and house of 
169.5 	representatives committees having jurisdiction over housing and workforce development 
169.6 	specifying the projects that received grants under this section and the specific purposes for 
169.7 	which the grant funds were used.

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

169.9 	Sec. 42. Laws 2014, chapter 211, section 13, as amended by Laws 2015, First Special 
169.10 	Session chapter 1, article 7, section 1, is amended to read:
169.11 	Sec. 13. EFFECTIVE DATE.
 169.12 	Sections 1 to 3 and 6 to 11 are effective July 1, 2016 2017. Sections 4, 5, and 12 
169.13 	are effective July 1, 2014.

169.14 	EFFECTIVE DATE. This section is effective the day following final enactment. 
169.15 	Until July 1, 2016 2017, any employee, employer, employee or employer organization, 
169.16 	exclusive representative, or any other person or organization aggrieved by an unfair labor 
169.17 	practice as defined in Minnesota Statutes, section 179A.13, may bring an action for 
169.18 	injunctive relief and for damages caused by the unfair labor practice in the district court of 
169.19 	the county in which the practice is alleged to have occurred.

169.20 	Sec. 43. Laws 2015, First Special Session chapter 1, article 1, section 4, is amended to 
169.21 	read:

169.22	Sec. 4. EXPLORE MINNESOTA TOURISM
 	$
	14,118,000
	$
	14,248,000
	
169.23 	(a) To develop maximum private sector 
169.24 	involvement in tourism, $500,000 in fiscal 
169.25 	year 2016 and $500,000 in fiscal year 2017 
169.26 	must be matched by Explore Minnesota 
169.27 	Tourism from nonstate sources. Each $1 of 
169.28 	state incentive must be matched with $6 of 
169.29 	private sector funding. Cash match is defined 
169.30 	as revenue to the state or documented cash 
169.31 	expenditures directly expended to support 
169.32 	Explore Minnesota Tourism programs. Up 
169.33 	to one-half of the private sector contribution 
170.1 	may be in-kind or soft match. The incentive 
170.2 	in fiscal year 2016 shall be based on fiscal 
170.3 	year 2015 private sector contributions. The 
170.4 	incentive in fiscal year 2017 shall be based on 
170.5 	fiscal year 2016 private sector contributions. 
170.6 	This incentive is ongoing. Of this amount, 
170.7 	$100,000 is for a grant to the Northern Lights 
170.8 	International Music festival.
170.9 	(b) Funding for the marketing grants is 
170.10 	available either year of the biennium. 
170.11 	Unexpended grant funds from the first year 
170.12 	are available in the second year.
170.13 	(c) $30,000 in fiscal year 2016 is for Mille 
170.14 	Lacs Lake tourism promotion. This is a 
170.15 	onetime appropriation.

170.16 	Sec. 44. DAY TRAINING AND HABILITATION GRANT PROGRAM.
 170.17 		Subdivision 1.Establishment. The commissioner of employment and economic 
170.18 	development shall establish a day training and habilitation grant program in fulfillment 
170.19 	of the Olmstead Plan purpose of ensuring that people with disabilities have choices for 
170.20 	competitive, meaningful, and sustained employment in the most integrated setting.
170.21 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms 
170.22 	have the meanings given them. 
170.23 	(b) "Day training and habilitation providers" means those organizations whose 
170.24 	names are listed as Department of Human Services providers in the Minnesota Department 
170.25 	of Administration, Materials Management Division, ALP Manual, Appendix J, without 
170.26 	regard to whether they are listed as approved vendors with the Minnesota Department 
170.27 	of Employment and Economic Development, Division of Rehabilitation Services as a 
170.28 	community rehabilitation provider, limited-use vendor, or center for independent living, 
170.29 	and irrespective as to whether they are accredited by CARF International.
170.30 	(c) "Competitive employment" means full-time or part-time employment, with or 
170.31 	without support, in an integrated setting in the community that pays at least minimum 
170.32 	wage, as defined by the Fair Labor Standards Act, but not less than the customary wage 
170.33 	and level of benefits paid by the employer for the same or similar work performed by 
170.34 	workers without a disability.
171.1 	(d) "Olmstead Plan" means Minnesota's 2013 Olmstead Plan, dated November 1, 
171.2 	2013, and all subsequent modifications approved by the United States District Court.
171.3 		Subd. 3.Competitive process. The commissioner shall issue a request for proposals 
171.4 	to day training and habilitation providers seeking proposals to assist the Department 
171.5 	of Employment and Economic Development in achieving its goals as provided in the 
171.6 	Olmstead Plan. Grant funds shall be used to improve individual employment outcomes 
171.7 	by aligning programs, funding, and policies to support people with disabilities to choose, 
171.8 	secure, and maintain competitive employment and self-employment, including, but not 
171.9 	limited to, the following activities:
171.10 	(1) implementing policies and initiating processes that improve the employment 
171.11 	outcomes of working adults with disabilities;
171.12 	(2) offering incentives for innovation that increase competitive employment in 
171.13 	the general work force;
171.14 	(3) expanding the flexibility in current funding and services to increase competitive 
171.15 	employment outcomes;
171.16 	(4) providing evidence of partnerships with private sector businesses and public 
171.17 	sector employment; and
171.18 	(5) submitting outcome data, required by the department, according to the 
171.19 	stipulations of the Olmstead Plan.
171.20 		Subd. 4.Eligibility. Any person who has a disability as determined by the Social 
171.21 	Security Administration or state medical review team is eligible to receive services 
171.22 	provided with grant funds.
171.23 		Subd. 5.Consultation required. The commissioner shall consult with the 
171.24 	governor's Workforce Development Council, the Commission of Deaf, DeafBlind, and 
171.25 	Hard-of-Hearing Minnesotans, the governor's Council on Developmental Disabilities, and 
171.26 	other governor-appointed disability councils in designing, implementing, and evaluating 
171.27 	the competitive grant program.
171.28 		Subd. 6.Report. On or before February 1, 2017, and annually thereafter, the 
171.29 	commissioner shall report to the chairs and ranking minority members of the senate and 
171.30 	house of representatives committees having jurisdiction over employment and economic 
171.31 	development policy and finance on the amount of funds awarded and the outcomes 
171.32 	reported by grantees.

171.33 	Sec. 45. EXPLOITED FAMILIES RENTAL ASSISTANCE PILOT PROGRAM.
 171.34 		Subdivision 1.Rental assistance program. (a) The commissioner of housing finance 
171.35 	shall establish a grant pilot program within the housing trust fund to serve individuals or 
172.1 	families from emerging communities at risk of being homeless and who have been victims 
172.2 	of gender-based violence, including but not limited to domestic violence, sexual assault, 
172.3 	trafficking, international abusive marriage, or forced marriage. For the purposes of this 
172.4 	section, the term "emerging communities" is defined as communities that are unfamiliar 
172.5 	with mainstream government services and that have limited English proficiency. The 
172.6 	commissioner shall award grants to organizations that can provide or partner with an 
172.7 	organization that can provide linguistically and culturally appropriate services and that 
172.8 	have the capacity to serve individuals or families from emerging communities who have 
172.9 	experienced gender-based violence. The commissioner may consult with the Departments 
172.10 	of Human Services and Public Safety when establishing the grant program.
172.11 	(b) The pilot program must:
172.12 	(1) provide rental assistance to individuals or families with a minor child;
172.13 	(2) require the participants to pay at least 30 percent of the participant's income 
172.14 	toward the rent;
172.15 	(3) allow the families to choose their own housing, including single-family homes, 
172.16 	townhomes, and apartments; and
172.17 	(4) give priority to individuals or families who experience barriers in accessing 
172.18 	housing, including having limited English proficiency, lack of positive rental history, 
172.19 	employment history, and financial history.
172.20 		Subd. 2.Program evaluation. All grant recipients must collect and make 
172.21 	available to the commissioner of housing finance aggregate data to assist the agency in 
172.22 	the evaluation of the program. The commissioner of housing finance shall evaluate the 
172.23 	program and measure the number of families served from emerging communities and the 
172.24 	housing status of the participants.

172.25 	Sec. 46. LAKE MILLE LACS AREA ECONOMIC RELIEF PROGRAM.
 172.26 		Subdivision 1.Relief program established. Mille Lacs County must develop and 
172.27 	implement a Lake Mille Lacs area economic relief program to assist businesses adversely 
172.28 	affected by a decline in walleye fishing on Lake Mille Lacs.
172.29 		Subd. 2.Available relief. (a) The economic relief program established under this 
172.30 	section may include grants or loans as provided in this section to the extent that funds are 
172.31 	available. Prior to awarding a grant to Mille Lacs County for the relief program under 
172.32 	this section:
172.33 	(1) the county must develop criteria, procedures, and requirements for:
172.34 	(i) determining eligibility for assistance;
173.1 	(ii) the duration, terms, underwriting and security requirements, and repayment 
173.2 	requirements for loans;
173.3 	(iii) evaluating applications for assistance;
173.4 	(iv) awarding assistance; and
173.5 	(v) administering the grant and loan program authorized under this section;
173.6 	(2) the county must submit its criteria, procedures, and requirements developed 
173.7 	pursuant to clause (1) to the commissioner of employment and economic development 
173.8 	for review; and
173.9 	(3) the commissioner must approve the criteria, procedures, and requirements as 
173.10 	developed pursuant to clause (1) to be used by the county in determining eligibility for 
173.11 	assistance, evaluating, awarding, and administering the grant and loan program.
173.12 	(b) The relief authorized under this section includes:
173.13 	(1) grants not to exceed $50,000 per business. Grants may be awarded to applicants 
173.14 	only when the county determines that a loan is not appropriate to address the needs of 
173.15 	the applicant; and
173.16 	(2) loans, with or without interest, and deferred or forgivable loans. The maximum 
173.17 	loan amount under this subdivision is $100,000 per business. The lending criteria adopted 
173.18 	by the county for loans under this subdivision must:
173.19 	(i) specify that an entity receiving a deferred or forgivable loan must remain in 
173.20 	the local community a minimum of five years after the date of the loan. The maximum 
173.21 	loan deferral period must not exceed five years from the date the loan is approved. The 
173.22 	maximum amount of a loan that may be forgiven must not exceed 50 percent of the 
173.23 	principle amount and may be forgiven only if the business has remained in operation in 
173.24 	the community for at least ten years after the loan is approved; and
173.25 	(ii) require submission of a business plan for continued operation until the walleye 
173.26 	fishing resource recovers. The plan must document the probable success of the applicant's 
173.27 	business plan and probable success in repaying the loan according to the terms established 
173.28 	for the loan program; and
173.29 	(3) tourism promotion grants to the Mille Lacs Tourism Council.
173.30 	(c) All loan repayment funds under this subdivision must be paid to the commissioner 
173.31 	of employment and economic development for deposit in the Minnesota investment fund 
173.32 	disaster contingency account under Minnesota Statutes, section 116J.8731.
173.33 		Subd. 3.Qualification requirements. To qualify for assistance under this section, a 
173.34 	business must:
173.35 	(1) be located within one of the following municipalities surrounding Lake Mille 
173.36 	Lacs:
174.1 	(i) in Crow Wing County, the city of Garrison, township of Garrison, or township 
174.2 	of Roosevelt;
174.3 	(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township 
174.4 	of Malmo, or township of Lakeside; or
174.5 	(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township 
174.6 	of East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
174.7 	(2) document a reduction of at least ten percent in gross receipts in any two-year 
174.8 	period since 2010; and
174.9 	(3) be a business in one of the following industries, as defined within the 
174.10 	North American Industry Classification System: accommodation, restaurants, bars, 
174.11 	amusement and recreation, food and beverages retail, sporting goods, miscellaneous retail, 
174.12 	general retail, museums, historical sites, health and personal care, gas station, general 
174.13 	merchandise, business and professional membership, movies, or nonstore retailer, as 
174.14 	determined by Mille Lacs County in consultation with the commissioner of employment 
174.15 	and economic development.
174.16 		Subd. 4.Monitoring. (a) Mille Lacs County must establish performance measures 
174.17 	that include, but are not limited to, the following components:
174.18 	(1) the number of loans approved and the amounts and terms of the loans;
174.19 	(2) the number of grants awarded, award amounts, and the reason that a grant award 
174.20 	was made in lieu of a loan;
174.21 	(3) the loan default rate;
174.22 	(4) the number of jobs created or retained as a result of the assistance, including 
174.23 	information on the wages and benefit levels, the status of the jobs as full-time or part-time, 
174.24 	and the status of the jobs as temporary or permanent;
174.25 	(5) the amount of business activity and changes in gross revenues of the grant or 
174.26 	loan recipient as a result of the assistance; and
174.27 	(6) the new tax revenue generated as a result of the assistance.
174.28 	(b) The commissioner of employment and economic development must monitor 
174.29 	Mille Lacs County's compliance with this section and the performance measures 
174.30 	developed under paragraph (a).
174.31 	(c) Mille Lacs County must comply with all requests made by the commissioner 
174.32 	under this section.
174.33 		Subd. 5.Business subsidy requirements. Sections 116J.993 to 116J.995 do not 
174.34 	apply to assistance under this section. Businesses in receipt of assistance under this section 
174.35 	must provide for job creation and retention goals, and wage and benefit goals.
175.1 		Subd. 6. Administrative costs. The commissioner of employment and economic 
175.2 	development may use up to one percent of the appropriation made for this section for 
175.3 	administrative expenses of the department.

175.4 	EFFECTIVE DATE. This section, except for subdivision 4, is effective July 1, 
175.5 	2016, and expires June 30, 2017. Subdivision 4 is effective July 1, 2016, and expires on 
175.6 	the date the last loan is repaid or forgiven as provided under this section.

175.7 	Sec. 47. REVISOR'S INSTRUCTION.
 175.8 	In the next editions of Minnesota Statutes and Minnesota Rules, the revisor of 
175.9 	statutes shall change the term "Urban Initiative Board" or similar to "Minnesota emerging 
175.10 	entrepreneur program," "program," or similar terms as the context requires.

175.11 	ARTICLE 8
175.12 	LABOR AND INDUSTRY
175.13 	HOUSEKEEPING

175.14 	Section 1. Minnesota Statutes 2015 Supplement, section 326B.13, subdivision 8, is 
175.15 	amended to read:
175.16 		Subd. 8.Effective date of rules. A rule to adopt or amend the State Building Code 
175.17 	is effective 270 days after publication of the rule's notice of adoption in the State Register. 
175.18 	The rule may provide for a later effective date. The rule may provide for an earlier effective 
175.19 	date if the commissioner or board proposing the rule finds that an earlier effective date is 
175.20 	necessary to protect public health and safety after considering, among other things, the need 
175.21 	for time for training of individuals to comply with and enforce the rule. The commissioner 
175.22 	must publish an electronic version of the entire adopted rule chapter on the department's 
175.23 	Web site within ten days of receipt from the revisor of statutes. The commissioner shall 
175.24 	clearly indicate the effective date of the rule on the department's Web site.

175.25 	Sec. 2. Minnesota Statutes 2014, section 326B.439, is amended to read:
175.26 	326B.439 BAN ON LEAD IN PLUMBING.
175.27 	Lead pipe, Solders and flux containing more than 0.2 percent lead, and pipes and 
175.28 	pipe fittings containing not more than eight a weighted average of 0.25 percent lead when 
175.29 	used with respect to the wetted surfaces of pipes, pipe fittings, plumbing fittings, and 
175.30 	fixtures shall not be used in any plumbing installation which conveys a potable water 
175.31 	supply. A Minnesota seller of lead solder, except for a seller whose primary business is 
176.1 	contracting in plumbing, heating, and air conditioning, shall not sell any solder containing 
176.2 	0.2 percent lead unless the seller displays a sign which states,
176.3 	"Contains Lead
176.4 	Minnesota law prohibits the use of this solder in any
176.5 	plumbing installation which is connected to a potable water
176.6 	supply."

176.7 	Sec. 3. Minnesota Statutes 2014, section 326B.49, subdivision 1, is amended to read:
176.8 		Subdivision 1.Application, examination, and license fees. (a) Applications for 
176.9 	master and journeyman plumber's licenses shall be made to the commissioner, with 
176.10 	all fees required by section 326B.092. Unless the applicant is entitled to a renewal, 
176.11 	the applicant shall be licensed by the commissioner only after passing a satisfactory 
176.12 	examination developed and administered by the commissioner, based upon rules adopted 
176.13 	by the Plumbing Board, showing fitness.
176.14 	(b) All initial journeyman plumber's licenses shall be effective for more than one 
176.15 	calendar year and shall expire on December 31 of the year after the year in which 
176.16 	the application is made each odd-numbered year after issuance or renewal. All master 
176.17 	plumber's licenses shall expire on December 31 of each even-numbered year after issuance 
176.18 	or renewal. The commissioner shall in a manner determined by the commissioner, without 
176.19 	the need for any rulemaking under chapter 14, phase in the renewal of master and 
176.20 	journeyman plumber's licenses from one year to two years. By June 30, 2011, All renewed 
176.21 	master and journeyman plumber's licenses shall be two-year licenses.
176.22 	(c) Applications for contractor licenses shall be made to the commissioner, with all 
176.23 	fees required by section 326B.092. All contractor licenses shall expire on December 31 of 
176.24 	each odd-numbered year after issuance or renewal.
176.25 	(d) For purposes of calculating license fees and renewal license fees required under 
176.26 	section 326B.092:
176.27 	(1) the following licenses shall be considered business licenses: plumbing contractor 
176.28 	and restricted plumbing contractor;
176.29 	(2) the following licenses shall be considered master licenses: master plumber and 
176.30 	restricted master plumber;
176.31 	(3) the following licenses shall be considered journeyman licenses: journeyman 
176.32 	plumber and restricted journeyman plumber; and
176.33 	(4) the registration of an unlicensed individual under section 326B.47, subdivision 3, 
176.34 	shall be considered an entry level license.
177.1 	(e) For each filing of a certificate of responsible individual by an employer, the 
177.2 	fee is $100.
177.3 	(f) The commissioner shall charge each person giving bond under section 326B.46, 
177.4 	subdivision 2, paragraph (b), a biennial bond filing fee of $100, unless the person is a 
177.5 	licensed contractor.

177.6 	ARTICLE 9
177.7 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL HOUSEKEEPING

177.8 	Section 1. Minnesota Statutes 2014, section 268.035, subdivision 12, is amended to read:
177.9 		Subd. 12.Covered employment. (a) "Covered employment" means the following 
177.10 	unless excluded as "noncovered employment" under subdivision 20:
177.11 	(1) an employee's entire employment during the calendar quarter if:
177.12 	(i) the employment during the quarter is performed primarily in Minnesota;
177.13 	(ii) the employment during the quarter is not performed primarily in Minnesota or 
177.14 	any other state but some of the employment is performed in Minnesota and the base 
177.15 	of operations or the place from which the employment is directed or controlled is in 
177.16 	Minnesota; or
177.17 	(iii) the employment during the quarter is not performed primarily in Minnesota 
177.18 	or any other state and the base of operations or place from which the employment is 
177.19 	directed or controlled is not in any state where part of the employment is performed, but 
177.20 	the employee's residence is in Minnesota;
177.21 	(2) an employee's entire employment during the calendar quarter performed within 
177.22 	the United States or Canada, if:
177.23 	(i) the employment is not considered covered employment under the unemployment 
177.24 	insurance program of any other state, federal law, or the law of Canada; and
177.25 	(ii) the place from which the employment is directed or controlled is in Minnesota;
177.26 	(3) the employment during the calendar quarter, performed entirely outside of the 
177.27 	United States and Canada, by an employee who is a United States citizen in the employ of 
177.28 	an American employer if the employer's principal place of business in the United States is 
177.29 	located in Minnesota. An "American employer," for the purposes of this clause, means a 
177.30 	corporation organized under the laws of any state, an individual who is a resident of the 
177.31 	United States, or a partnership if two-thirds or more of the partners are residents of the 
177.32 	United States, or a trust, if all of the trustees are residents of the United States; and
177.33 	(4) all employment during the calendar quarter performed by an officer or member 
177.34 	of the crew of an American vessel on or in connection with the vessel, if the operating 
177.35 	office from which the operations of the vessel operating on navigable waters within, or 
178.1 	within and without, the United States are ordinarily and regularly supervised, managed, 
178.2 	directed, and controlled is in Minnesota.
178.3 	(b) "Covered employment" includes covered agricultural employment under 
178.4 	subdivision 11.
178.5 	(c) For the purposes of satisfying the period of ineligibility under section 268.095, 
178.6 	subdivision 10, "covered employment" includes covered employment covered under an 
178.7 	unemployment insurance program:
178.8 	(1) of any other state; or
178.9 	(2) established by an act of Congress.

178.10 	EFFECTIVE DATE. This section is effective July 31, 2016, and applies to all 
178.11 	matters pending a determination or a decision by an unemployment law judge

178.12 	Sec. 2. Minnesota Statutes 2014, section 268.035, subdivision 29, is amended to read:
178.13 		Subd. 29.Wages. (a) "Wages" means all compensation for employment, including 
178.14 	commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and 
178.15 	holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by 
178.16 	a customer of an employer and accounted for by the employee to the employer; sickness 
178.17 	and accident disability payments, except as otherwise provided in this subdivision; and 
178.18 	the cash value of housing, utilities, meals, exchanges of services, and any other goods 
178.19 	and services provided to compensate an employee, except:
178.20 	(1) the amount of any payment made to, or on behalf of, an employee under a plan 
178.21 	established by an employer that makes provision for employees generally or for a class or 
178.22 	classes of employees, including any amount paid by an employer for insurance or annuities, 
178.23 	or into a plan, to provide for a payment, on account of (i) retirement or (ii) medical and 
178.24 	hospitalization expenses in connection with sickness or accident disability, or (iii) death;
178.25 	(2) the payment by an employer of the tax imposed upon an employee under United 
178.26 	States Code, title 26, section 3101 of the Federal Insurance Contribution Act, with respect 
178.27 	to compensation paid to an employee for domestic employment in a private household of 
178.28 	the employer or for agricultural employment;
178.29 	(3) any payment made to, or on behalf of, an employee or beneficiary (i) from or 
178.30 	to a trust described in United States Code, title 26, section 401(a) of the federal Internal 
178.31 	Revenue Code, that is exempt from tax under section 501(a) at the time of the payment 
178.32 	unless the payment is made to an employee of the trust as compensation for services as an 
178.33 	employee and not as a beneficiary of the trust, or (ii) under or to an annuity plan that, at 
178.34 	the time of the payment, is a plan described in section 403(a);
179.1 	(4) the value of any special discount or markdown allowed to an employee on goods 
179.2 	purchased from or services supplied by the employer where the purchases are optional and 
179.3 	do not constitute regular or systematic payment for services;
179.4 	(5) customary and reasonable directors' fees paid to individuals who are not 
179.5 	otherwise employed by the corporation of which they are directors;
179.6 	(6) the payment to employees for reimbursement of meal expenses when employees 
179.7 	are required to perform work after their regular hours;
179.8 	(7) the payment into a trust or plan for purposes of providing legal or dental services 
179.9 	if provided for all employees generally or for a class or classes of employees;
179.10 	(8) the value of parking facilities provided or paid for by an employer, in whole or in 
179.11 	part, if provided for all employees generally or for a class or classes of employees;
179.12 	(9) royalties to an owner of a franchise, license, copyright, patent, oil, mineral, 
179.13 	or other right;
179.14 	(10) advances or reimbursements for traveling or other bona fide ordinary and 
179.15 	necessary expenses incurred or reasonably expected to be incurred in the business of the 
179.16 	employer. Traveling and other reimbursed expenses must be identified either by making 
179.17 	separate payments or by specifically indicating the separate amounts where both wages 
179.18 	and expense allowances are combined in a single payment;
179.19 	(11) residual payments to radio, television, and similar artists that accrue after 
179.20 	the production of television commercials, musical jingles, spot announcements, radio 
179.21 	transcriptions, film sound tracks, and similar activities;
179.22 	(12) the income to a former employee resulting from the exercise of a nonqualified 
179.23 	stock option;
179.24 	(13) payments made to supplement supplemental unemployment benefits benefit 
179.25 	payments under a plan established by an employer, that makes provisions for employees 
179.26 	generally or for a class or classes of employees under the written terms of an agreement, 
179.27 	contract, trust arrangement, or other instrument if the payment is not wages under the 
179.28 	Federal Unemployment Tax Act. The plan must provide supplemental payments are 
179.29 	wages unless made solely for the supplementing of weekly state or federal unemployment 
179.30 	benefits. The plan must provide supplemental payments only for those weeks the applicant 
179.31 	has been paid regular, extended, or additional unemployment benefits. The supplemental 
179.32 	payments, when combined with the applicant's weekly unemployment benefits paid, may 
179.33 	not exceed the applicant's regular weekly pay. The plan must not allow the assignment 
179.34 	of Supplemental unemployment benefit payments or provide for any type of additional 
179.35 	payment. The plan must not require may not be assigned, nor may any consideration be 
179.36 	required from the applicant, other than a release of claims, and must not be designed for 
180.1 	the purpose of avoiding the payment of Social Security obligations, or unemployment 
180.2 	taxes on money disbursed from the plan in order to be excluded from wages;
180.3 	(14) sickness or accident disability payments made by the employer after the 
180.4 	expiration of six calendar months following the last calendar month that the individual 
180.5 	worked for the employer;
180.6 	(15) disability payments made under the provisions of any workers' compensation 
180.7 	law;
180.8 	(16) sickness or accident disability payments made by a third-party payer such as 
180.9 	an insurance company; or
180.10 	(17) payments made into a trust fund, or for the purchase of insurance or an annuity, 
180.11 	to provide for sickness or accident disability payments to employees under a plan or 
180.12 	system established by the employer that provides for the employer's employees generally 
180.13 	or for a class or classes of employees.
180.14 	(b) Nothing in this subdivision excludes from the term "wages" any payment 
180.15 	made under any type of salary reduction agreement, including payments made under a 
180.16 	cash or deferred arrangement and cafeteria plan, as defined in United States Code, title 
180.17 	26, sections 401(k) and 125 of the federal Internal Revenue Code, to the extent that the 
180.18 	employee has the option to receive the payment in cash.
180.19 	(c) Wages includes the total payment to the operator and supplier of a vehicle or 
180.20 	other equipment where the payment combines compensation for personal services as well 
180.21 	as compensation for the cost of operating and hiring the equipment in a single payment. 
180.22 	This paragraph does not apply if:
180.23 	(1) there is a preexisting written agreement providing for allocation of specific 
180.24 	amounts; or
180.25 	(2) at the time of each payment there is a written acknowledgement acknowledgment 
180.26 	indicating the separate allocated amounts.
180.27 	(d) Wages includes payments made for services as a caretaker. Unless there is a 
180.28 	contract or other proof to the contrary, compensation is considered as being equally 
180.29 	received by a married couple where the employer makes payment to only one spouse, or 
180.30 	by all tenants of a household who perform services where two or more individuals share 
180.31 	the same dwelling and the employer makes payment to only one individual.
180.32 	(e) Wages includes payments made for services by a migrant family. Where services 
180.33 	are performed by a married couple or a family and an employer makes payment to only 
180.34 	one individual, each worker is considered as having received an equal share of the 
180.35 	compensation unless there is a contract or other proof to the contrary.
181.1 	(f) Wages includes advances or draws against future earnings, when paid, unless 
181.2 	the payments are designated as a loan or return of capital on the books of the employer 
181.3 	at the time of payment.
181.4 	(g) Wages includes payments made by a subchapter "S" corporation, as organized 
181.5 	under the Internal Revenue Code, to or on behalf of officers and shareholders that are 
181.6 	reasonable compensation for services performed for the corporation.
181.7 	For a subchapter "S" corporation, wages does not include:
181.8 	(1) a loan for business purposes to an officer or shareholder evidenced by a 
181.9 	promissory note signed by an officer before the payment of the loan proceeds and recorded 
181.10 	on the books and records of the corporation as a loan to an officer or shareholder;
181.11 	(2) a repayment of a loan or payment of interest on a loan made by an officer to the 
181.12 	corporation and recorded on the books and records of the corporation as a liability;
181.13 	(3) a reimbursement of reasonable corporation expenses incurred by an officer and 
181.14 	documented by a written expense voucher and recorded on the books and records of 
181.15 	the corporation as corporate expenses; and
181.16 	(4) a reasonable lease or rental payment to an officer who owns property that is 
181.17 	leased or rented to the corporation.

181.18 	Sec. 3. Minnesota Statutes 2015 Supplement, section 268.085, subdivision 2, is 
181.19 	amended to read:
181.20 		Subd. 2.Not eligible. An applicant is ineligible for unemployment benefits for 
181.21 	any week:
181.22 	(1) that occurs before the effective date of a benefit account;
181.23 	(2) that the applicant, at the beginning of any time during the week, has an 
181.24 	outstanding fraud overpayment balance under section 268.18, subdivision 2, including 
181.25 	any penalties and interest;
181.26 	(3) that occurs in a period when the applicant is a student in attendance at, or on 
181.27 	vacation from a secondary school including the period between academic years or terms;
181.28 	(4) that the applicant is incarcerated or performing court-ordered community service. 
181.29 	The applicant's weekly unemployment benefit amount is reduced by one-fifth for each day 
181.30 	the applicant is incarcerated or performing court-ordered community service;
181.31 	(5) that the applicant fails or refuses to provide information on an issue of 
181.32 	ineligibility required under section 268.101;
181.33 	(6) that the applicant is performing services 32 hours or more, in employment, 
181.34 	covered employment, noncovered employment, volunteer work, or self-employment 
181.35 	regardless of the amount of any earnings; or
182.1 	(7) with respect to which the applicant has filed an application for unemployment 
182.2 	benefits under any federal law or the law of any other state. If the appropriate agency 
182.3 	finally determines that the applicant is not entitled to establish a benefit account under 
182.4 	federal law or the law of any other state, this clause does not apply.

182.5 	Sec. 4. Minnesota Statutes 2014, section 268.0865, subdivision 3, is amended to read:
182.6 		Subd. 3.Continued request for unemployment benefits by electronic 
182.7 	transmission. (a) A continued request for unemployment benefits by electronic 
182.8 	transmission must be filed to that electronic mail address, telephone number, or Internet 
182.9 	address prescribed by the commissioner for that applicant. In order to constitute a 
182.10 	continued request, all information asked for, including information authenticating that the 
182.11 	applicant is sending the transmission, must be provided in the format required. If all of the 
182.12 	information asked for is not provided, the communication does not constitute a continued 
182.13 	request for unemployment benefits.
182.14 	(b) The continued request by electronic transmission communication must be filed 
182.15 	within four calendar weeks following the week for which payment is requested on the 
182.16 	date day of the week and during the time of day designated for the applicant for filing a 
182.17 	continued request by electronic transmission.
182.18 	(c) If the electronic transmission continued request is not filed as required under 
182.19 	paragraph (b), a continued request by electronic transmission must be accepted if the 
182.20 	applicant files the continued request by electronic transmission within three calendar 
182.21 	weeks following the week for which payment is requested. If the continued request by 
182.22 	electronic transmission is not filed within three four calendar weeks following the week 
182.23 	for which payment is requested, the electronic continued request will not be accepted 
182.24 	and the applicant is ineligible for unemployment benefits for the period covered by the 
182.25 	continued request, unless the applicant shows good cause for failing to file the continued 
182.26 	request by electronic transmission within the time period required.

182.27 	Sec. 5. Minnesota Statutes 2014, section 268.0865, subdivision 4, is amended to read:
182.28 		Subd. 4.Continued request for unemployment benefits by mail. (a) A 
182.29 	continued request for unemployment benefits by mail must be on a form prescribed by 
182.30 	the commissioner. The form, in order to constitute a continued request, must be totally 
182.31 	completed and signed by the applicant. The form must be filed by mail, in an envelope 
182.32 	with postage prepaid, and sent to the address designated during the week following the 
182.33 	week for which payment is requested.
183.1 	(b) If the mail continued request for unemployment benefits is not filed as required 
183.2 	under paragraph (a), a continued request must be accepted if the form is filed by mail 
183.3 	within three four calendar weeks following the week for which payment is requested. 
183.4 	(b) If the continued request form is not filed within three four calendar weeks 
183.5 	following the week for which payment is requested, the form will not be accepted and the 
183.6 	applicant is ineligible for unemployment benefits for the period covered by the continued 
183.7 	request for unemployment benefits, unless the applicant shows good cause for failing to 
183.8 	file the form by mail within the time period required.
183.9 	(c) If the applicant has been designated to file a continued request for unemployment 
183.10 	benefits by mail, an applicant may submit the form by facsimile transmission within 
183.11 	three four calendar weeks following the week for which payment is requested. A form 
183.12 	submitted by facsimile transmission must be sent only to the telephone number assigned 
183.13 	for that purpose.
183.14 	(d) An applicant who has been designated to file a continued request by mail may 
183.15 	personally deliver a continued request form only to the location to which the form was 
183.16 	otherwise designated to be mailed.

183.17 	Sec. 6. Minnesota Statutes 2014, section 268.095, subdivision 2, is amended to read:
183.18 		Subd. 2.Quit defined. (a) A quit from employment occurs when the decision to end 
183.19 	the employment was, at the time the employment ended, the employee's.
183.20 	(b) When determining if an applicant quit, the theory of a constructive quit does 
183.21 	not apply.
183.22 	(b) (c) An employee who has been notified that the employee will be discharged in 
183.23 	the future, who chooses to end the employment while employment in any capacity is still 
183.24 	available, is considered to have has quit the employment.
183.25 	(c) (d) An employee who seeks to withdraw a previously submitted notice of quitting 
183.26 	is considered to have has quit the employment, as of the intended date of quitting, if the 
183.27 	employer does not agree that the notice may be withdrawn.
183.28 	(d) (e) An applicant who has quit employment with a staffing service if, within 
183.29 	five calendar days after completion of a suitable job assignment from a staffing service, 
183.30 	the applicant:
183.31 	(1) fails without good cause to affirmatively request an additional suitable job 
183.32 	assignment,;
183.33 	(2) refuses without good cause an additional suitable job assignment offered,; or
183.34 	(3) accepts employment with the client of the staffing service, is considered to have 
183.35 	quit employment with the staffing service. Accepting employment with the client of the 
184.1 	staffing service meets the requirements of the exception to ineligibility under subdivision 
184.2 	1, clause (2).
184.3 	This paragraph applies only if, at the time of beginning of employment with the 
184.4 	staffing service, the applicant signed and was provided a copy of a separate document 
184.5 	written in clear and concise language that informed the applicant of this paragraph and 
184.6 	that unemployment benefits may be affected.
184.7 	For purposes of this paragraph, "good cause" is a reason that is significant and would 
184.8 	compel an average, reasonable worker, who would otherwise want an additional suitable 
184.9 	job assignment with the staffing service (1) to fail to contact the staffing service, or (2) 
184.10 	to refuse an offered assignment.

184.11 	Sec. 7. Minnesota Statutes 2014, section 268.095, subdivision 5, is amended to read:
184.12 		Subd. 5.Discharge defined. (a) A discharge from employment occurs when any 
184.13 	words or actions by an employer would lead a reasonable employee to believe that the 
184.14 	employer will no longer allow the employee to work for the employer in any capacity. A 
184.15 	layoff because of lack of work is considered a discharge. A suspension from employment 
184.16 	without pay of more than 30 calendar days is considered a discharge.
184.17 	(b) When determining if an applicant was discharged, the theory of a constructive 
184.18 	discharge does not apply.
184.19 	(b) (c) An employee who gives notice of intention to quit the employment and is not 
184.20 	allowed by the employer to work the entire notice period is considered discharged from 
184.21 	the employment as of the date the employer will no longer allow the employee to work. If 
184.22 	the discharge occurs within 30 calendar days before the intended date of quitting, then, 
184.23 	as of the intended date of quitting, the separation from employment is considered a quit 
184.24 	from employment subject to subdivision 1.
184.25 	(c) (d) The end of a job assignment with the client of a staffing service is considered 
184.26 	a discharge from employment with the staffing service unless subdivision 2, paragraph 
184.27 	(d), applies.

184.28 	Sec. 8. Minnesota Statutes 2014, section 268.18, is amended to read:
184.29 	268.18 UNEMPLOYMENT BENEFIT OVERPAYMENTS.
184.30 		Subdivision 1.Nonfraud Repaying an overpayment. (a) Any applicant who (1) 
184.31 	because of a determination or amended determination issued under section 268.07 or 
184.32 	268.101, or any other section of this chapter, or (2) because of an unemployment law 
184.33 	judge's decision under section 268.105, has received any unemployment benefits that the 
185.1 	applicant was held not entitled to, is overpaid the benefits, and must promptly repay the 
185.2 	unemployment benefits to the trust fund.
185.3 	(b) If the applicant fails to repay the unemployment benefits overpaid, the 
185.4 	commissioner may offset from any future unemployment benefits otherwise payable the 
185.5 	amount of the overpayment. Except when the overpayment resulted because the applicant 
185.6 	failed to report deductible earnings or deductible or benefit delaying payments, no single 
185.7 	offset may exceed 50 percent of the amount of the payment from which the offset is made. 
185.8 	The overpayment may also including any penalty and interest assessed under subdivisions 
185.9 	2 and 2b, the total due may be collected by the methods allowed under state and federal law.
185.10 	(c) If an applicant has been overpaid unemployment benefits under the law of 
185.11 	another state, because of a reason other than fraud, and that state certifies that the applicant 
185.12 	is liable under its law to repay the unemployment benefits and requests the commissioner 
185.13 	to recover the overpayment, the commissioner may offset from future unemployment 
185.14 	benefits otherwise payable the amount of overpayment, except that no single offset may 
185.15 	exceed 50 percent of the amount of the payment from which the offset is made.
185.16 		Subd. 2.Overpayment because of fraud. (a) Any An applicant who receives has 
185.17 	committed fraud if the applicant is overpaid unemployment benefits by:
185.18 	(1) knowingly misrepresenting, misstating, or failing to disclose any material fact,; 
185.19 	or who makes
185.20 	(2) making a false statement or representation without a good faith belief as to the 
185.21 	correctness of the statement or representation, has committed fraud. 
185.22 	After the discovery of facts indicating fraud, the commissioner must make issue a 
185.23 	determination that the applicant obtained unemployment benefits by fraud and that the 
185.24 	applicant must promptly repay the unemployment benefits to the trust fund. In addition, the 
185.25 	commissioner must assess of overpayment penalty assessing a penalty equal to 40 percent 
185.26 	of the amount fraudulently obtained overpaid. This penalty is in addition to penalties under 
185.27 	section 268.182. The determination is effective the Sunday of the week that it was issued.
185.28 	(b) Unless the applicant files an appeal within 20 calendar days after the sending of 
185.29 	the a determination of overpayment by fraud penalty to the applicant by mail or electronic 
185.30 	transmission, the determination is final. Proceedings on the appeal are conducted in 
185.31 	accordance with section 268.105.
185.32 	(c) If the applicant fails to repay the unemployment benefits, penalty, and interest 
185.33 	assessed, the total due may be collected by the methods allowed under state and federal 
185.34 	law. A determination of overpayment by fraud penalty must state the methods of collection 
185.35 	the commissioner may use to recover the overpayment, penalty, and interest assessed. 
185.36 	Money received in repayment of fraudulently obtained overpaid unemployment benefits, 
186.1 	penalties, and interest is first applied to the unemployment benefits overpaid, then to the 
186.2 	penalty amount due, then to any interest due. 62.5 percent of the payments made toward the 
186.3 	penalty are credited to the contingent account and 37.5 percent credited to the trust fund.
186.4 	(d) If an applicant has been overpaid unemployment benefits under the law of 
186.5 	another state because of fraud and that state certifies that the applicant is liable to repay 
186.6 	the unemployment benefits and requests the commissioner to recover the overpayment, 
186.7 	the commissioner may offset from future unemployment benefits otherwise payable the 
186.8 	amount of overpayment.
186.9 	(e) Regardless of the limitations in section 268.101, subdivision 2, paragraph 
186.10 	(e), unemployment benefits paid for weeks more than four years before the date of (d)
186.11 	A determination of overpayment by fraud issued penalty under this subdivision are 
186.12 	not considered overpaid unemployment benefits may be issued within 48 months of 
186.13 	the establishment of the benefit account upon which the unemployment benefits were 
186.14 	obtained through fraud.
186.15 		Subd. 2b.Interest.  On any unemployment benefits fraudulently obtained, and any 
186.16 	penalty amounts assessed under subdivision 2, the commissioner must assess interest at the 
186.17 	rate of one percent per month on any amount that remains unpaid beginning 30 calendar 
186.18 	days after the date of the a determination of overpayment by fraud penalty. A determination 
186.19 	of overpayment by fraud penalty must state that interest will be assessed. Interest is 
186.20 	assessed in the same manner as on employer debt under section 268.057, subdivision 5. 
186.21 	Interest payments collected under this subdivision are credited to the trust fund.
186.22 		Subd. 3a.Offset of federal unemployment benefits. The commissioner is 
186.23 	authorized to enter into reciprocal agreements with the United States Secretary of Labor, 
186.24 	whereby, (a) The commissioner may offset from any future unemployment benefits 
186.25 	otherwise payable the amount of a nonfraud overpayment. Except when the nonfraud 
186.26 	overpayment resulted because the applicant failed to report deductible earnings or 
186.27 	deductible or benefit delaying payments, no single offset may exceed 50 percent of the 
186.28 	amount of the payment from which the offset is made.
186.29 	(b) Overpayments of unemployment benefits as determined under a federal law 
186.30 	program, may be recovered by offset from unemployment future benefits otherwise 
186.31 	payable and.
186.32 	(c) If an applicant has been overpaid unemployment benefits under the law of 
186.33 	another state, the commissioner may offset from future benefits otherwise payable the 
186.34 	amount of overpayment.
187.1 	(d) Nonfraud unemployment benefit overpayments under subdivisions 1 and 2 
187.2 	may be recovered by offset from unemployment future benefits otherwise payable under 
187.3 	a federal program.
187.4 		Subd. 4.Cancellation of overpayments. (a) If unemployment benefits overpaid 
187.5 	under subdivision 1 for reasons other than fraud are not repaid or offset from subsequent 
187.6 	unemployment benefits as provided for in subdivision 1 within six years after the date 
187.7 	of the determination or decision holding the applicant overpaid, the commissioner must 
187.8 	cancel the overpayment balance, and no administrative or legal proceedings may be used 
187.9 	to enforce collection of those amounts.
187.10 	(b) If unemployment benefits determined overpaid under subdivision 2 because of 
187.11 	fraud including penalties and interest are not repaid within ten years after the date of 
187.12 	the determination of overpayment by fraud penalty, the commissioner must cancel the 
187.13 	overpayment balance and any penalties and interest due, and no administrative or legal 
187.14 	proceeding may be used to enforce collection of those amounts.
187.15 	(c) The commissioner may cancel at any time any overpayment, including penalties 
187.16 	and interest, that the commissioner determines is uncollectible because of death or 
187.17 	bankruptcy.
187.18 		Subd. 4a.Court fees; collection fees. (a) If the commissioner department 
187.19 	is required to pay any court fees in an attempt to enforce collection of overpaid 
187.20 	unemployment benefits, penalties, or interest, the commissioner may add the amount of 
187.21 	the court fees may be added to the total amount due.
187.22 	(b) If an applicant who has been determined overpaid unemployment benefits 
187.23 	because of fraud seeks to have any portion of the debt discharged under the federal 
187.24 	bankruptcy code, and the commissioner department files an objection in bankruptcy court 
187.25 	to the discharge, the commissioner may add the commissioner's cost of any court fees may 
187.26 	be added to the debt if the bankruptcy court does not discharge the debt.
187.27 	(c) If the Internal Revenue Service assesses the commissioner department a fee for 
187.28 	offsetting from a federal tax refund the amount of any overpayment, including penalties 
187.29 	and interest, the amount of the fee may be added to the total amount due. The offset 
187.30 	amount must be put in the trust fund and that amount credited to the total amount due 
187.31 	from the applicant.
187.32 		Subd. 5.Remedies. (a) Any method undertaken to recover an overpayment of 
187.33 	unemployment benefits, including any penalties and interest, is not considered an election 
187.34 	of a method of recovery.
187.35 	(b) Intervention or lack thereof, in whole or in part, in a workers' compensation 
187.36 	matter under section 176.361 is not considered an election of a remedy and does not 
188.1 	prevent the commissioner from determining any unemployment benefits overpaid under 
188.2 	subdivision 1 or 2 or taking action under section 268.182.
188.3 		Subd. 6.Collection of overpayments. (a) The commissioner may not compromise 
188.4 	the amount that has been determined of any overpaid under this section unemployment 
188.5 	benefits including penalties and interest.
188.6 	(b) The commissioner has discretion regarding the recovery of any overpayment 
188.7 	under subdivision 1 for reasons other than fraud. Regardless of any law to the contrary, the 
188.8 	commissioner is not required to refer any amount determined overpaid under subdivision 
188.9 	1 overpayment for reasons other than fraud to a public or private collection agency, 
188.10 	including agencies of this state.
188.11 	(c) Amounts determined overpaid under subdivision 1 for reasons other than fraud 
188.12 	are not considered a "debt" to the state of Minnesota for purposes of any reporting 
188.13 	requirements to the commissioner of management and budget.
188.14 	(d) A pending appeal under section 268.105 does not suspend the assessment of 
188.15 	interest, penalties, or collection of an overpayment under this section.
188.16 	(e) Section 16A.626 applies to the repayment by an applicant of any overpayment, 
188.17 	penalty, or interest under this section.

188.18 	Sec. 9. Laws 2015, First Special Session chapter 1, article 6, section 16, the effective 
188.19 	date, is amended to read:

188.20 	EFFECTIVE DATE. This section is effective the day following final enactment and 
188.21 	is retroactive to March 1, 2015. This section expires on June 1, 2016 December 1, 2016.

188.22 	EFFECTIVE DATE. This section is effective the day following final enactment 
188.23 	and applies retroactively to March 1, 2015.

188.24 	Sec. 10. EFFECTIVE DATE.
 188.25 	This article is effective July 31, 2016, unless indicated otherwise.

188.26 	ARTICLE 10
188.27 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL TECHNICAL

188.28 	Section 1. Minnesota Statutes 2014, section 268.035, is amended by adding a 
188.29 	subdivision to read:
188.30 		Subd. 12e.Earnings. "Earnings" means all compensation to which the applicant has 
188.31 	a legal claim and is earned income under state and federal law for income tax purposes.

189.1 	Sec. 2. Minnesota Statutes 2014, section 268.035, subdivision 20, is amended to read:
189.2 		Subd. 20.Noncovered employment. "Noncovered employment" means:
189.3 	(1) employment for the United States government or an instrumentality thereof, 
189.4 	including military service;
189.5 	(2) employment for a state, other than Minnesota, or a political subdivision or 
189.6 	instrumentality thereof;
189.7 	(3) employment for a foreign government;
189.8 	(4) employment for an instrumentality wholly owned by a foreign government, 
189.9 	if the employment is of a character similar to that performed in foreign countries by 
189.10 	employees of the United States government or an instrumentality thereof and the United 
189.11 	States Secretary of State has certified that the foreign government grants an equivalent 
189.12 	exemption to similar employment performed in the foreign country by employees of the 
189.13 	United States government and instrumentalities thereof;
189.14 	(5) (4) employment covered under United States Code, title 45, section 351, the 
189.15 	federal Railroad Unemployment Insurance Act;
189.16 	(6) employment covered by a reciprocal arrangement between the commissioner and 
189.17 	another state or the federal government that provides that all employment performed by an 
189.18 	individual for an employer during the period covered by the reciprocal arrangement is 
189.19 	considered performed entirely within another state;
189.20 	(7) (5) employment for a church or convention or association of churches, or an 
189.21 	a nonprofit organization operated primarily for religious purposes that is operated, 
189.22 	supervised, controlled, or principally supported by a church or convention or association 
189.23 	of churches described in United States Code, title 26, section 501(c)(3) of the federal 
189.24 	Internal Revenue Code and exempt from income tax under section 501(a);
189.25 	(8) (6) employment for Minnesota or a political subdivision, or a nonprofit 
189.26 	organization, of a duly ordained or licensed minister of a church in the exercise of a 
189.27 	ministry or by a member of a religious order in the exercise of duties required by the order, 
189.28 	for Minnesota or a political subdivision or an organization described in United States 
189.29 	Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from 
189.30 	income tax under section 501(a);
189.31 	(9) (7) employment for Minnesota or a political subdivision, or a nonprofit 
189.32 	organization, of an individual receiving rehabilitation of "sheltered" work in a facility 
189.33 	conducted for the purpose of carrying out a program of rehabilitation for individuals 
189.34 	whose earning capacity is impaired by age or physical or mental deficiency or injury or a 
189.35 	program providing "sheltered" work for individuals who because of an impaired physical 
189.36 	or mental capacity cannot be readily absorbed in the competitive labor market. This 
190.1 	clause applies only to services performed for Minnesota or a political subdivision or an 
190.2 	organization described in United States Code, title 26, section 501(c)(3) of the federal 
190.3 	Internal Revenue Code and exempt from income tax under section 501(a) in a facility 
190.4 	certified by the Rehabilitation Services Branch of the department or in a day training or 
190.5 	habilitation program licensed by the Department of Human Services;
190.6 	(10) (8) employment for Minnesota or a political subdivision, or a nonprofit 
190.7 	organization, of an individual receiving work relief or work training as part of an 
190.8 	unemployment work relief or work training program assisted or financed in whole or 
190.9 	in part by any federal agency or an agency of a state or political subdivision thereof. 
190.10 	This clause applies only to employment for Minnesota or a political subdivision or an 
190.11 	organization described in United States Code, title 26, section 501(c)(3) of the federal 
190.12 	Internal Revenue Code and exempt from income tax under section 501(a). This clause does 
190.13 	not apply to programs that require unemployment benefit coverage for the participants;
190.14 	(11) (9) employment for Minnesota or a political subdivision, as an elected official, a 
190.15 	member of a legislative body, or a member of the judiciary;
190.16 	(12) (10) employment as a member of the Minnesota National Guard or Air National 
190.17 	Guard;
190.18 	(13) (11) employment for Minnesota, or a political subdivision, or instrumentality 
190.19 	thereof, as an employee of an individual serving only on a temporary basis in case of 
190.20 	fire, flood, tornado, or similar emergency;
190.21 	(14) (12) employment as an election official or election worker for Minnesota or 
190.22 	a political subdivision, but only if the compensation for that employment was less than 
190.23 	$1,000 in a calendar year;
190.24 	(15) (13) employment for Minnesota that is a major policy-making or advisory 
190.25 	position in the unclassified service;
190.26 	(16) (14) employment for Minnesota in an unclassified position established under 
190.27 	section 43A.08, subdivision 1a;
190.28 	(17) (15) employment for a political subdivision of Minnesota that is a nontenured 
190.29 	major policy making or advisory position;
190.30 	(18) (16) domestic employment in a private household, local college club, or local 
190.31 	chapter of a college fraternity or sorority performed for a person, only, if the wages paid 
190.32 	in any calendar quarter in either the current or prior calendar year to all individuals in 
190.33 	domestic employment totaled less than $1,000.
190.34 	"Domestic employment" includes all service in the operation and maintenance of a 
190.35 	private household, for a local college club, or local chapter of a college fraternity or 
191.1 	sorority as distinguished from service as an employee in the pursuit of an employer's 
191.2 	trade or business;
191.3 	(19) (17) employment of an individual by a son, daughter, or spouse, and 
191.4 	employment of a child under the age of 18 by the child's father or mother;
191.5 	(20) (18) employment of an inmate of a custodial or penal institution;
191.6 	(21) (19) employment for a school, college, or university, by a student who is 
191.7 	enrolled and whose primary relation to the school, college, or university is as a student. 
191.8 	This does not include an individual whose primary relation to the school, college, or 
191.9 	university is as an employee who also takes courses;
191.10 	(22) (20) employment of an individual who is enrolled as a student in a full-time 
191.11 	program at a nonprofit or public educational institution that maintains a regular faculty 
191.12 	and curriculum and has a regularly organized body of students in attendance at the place 
191.13 	where its educational activities are carried on, taken for credit at the institution, that 
191.14 	combines academic instruction with work experience, if the employment is an integral 
191.15 	part of the program, and the institution has so certified to the employer, except that this 
191.16 	clause does not apply to employment in a program established for or on behalf of an 
191.17 	employer or group of employers;
191.18 	(23) (21) employment of university, college, or professional school students in an 
191.19 	internship or other training program with the city of St. Paul or the city of Minneapolis 
191.20 	under Laws 1990, chapter 570, article 6, section 3;
191.21 	(24) (22) employment for a hospital by a patient of the hospital. "Hospital" means 
191.22 	an institution that has been licensed by the Department of Health as a hospital;
191.23 	(25) (23) employment as a student nurse for a hospital or a nurses' training school by 
191.24 	an individual who is enrolled and is regularly attending classes in an accredited nurses' 
191.25 	training school;
191.26 	(26) (24) employment as an intern for a hospital by an individual who has completed 
191.27 	a four-year course in an accredited medical school;
191.28 	(27) (25) employment as an insurance salesperson, by other than a corporate 
191.29 	officer, if all the wages from the employment is solely by way of commission. The word 
191.30 	"insurance" includes an annuity and an optional annuity;
191.31 	(28) (26) employment as an officer of a township mutual insurance company or 
191.32 	farmer's mutual insurance company operating under chapter 67A;
191.33 	(29) (27) employment of a corporate officer, if the officer directly or indirectly, 
191.34 	including through a subsidiary or holding company, owns 25 percent or more of the 
191.35 	employer corporation, and employment of a member of a limited liability company, if the 
192.1 	member directly or indirectly, including through a subsidiary or holding company, owns 
192.2 	25 percent or more of the employer limited liability company;
192.3 	(30) (28) employment as a real estate salesperson, by other than a corporate officer, 
192.4 	if all the wages from the employment is solely by way of commission;
192.5 	(31) (29) employment as a direct seller as defined in United States Code, title 26, 
192.6 	section 3508;
192.7 	(32) (30) employment of an individual under the age of 18 in the delivery or 
192.8 	distribution of newspapers or shopping news, not including delivery or distribution to any 
192.9 	point for subsequent delivery or distribution;
192.10 	(33) (31) casual employment performed for an individual, other than domestic 
192.11 	employment under clause (18) (16), that does not promote or advance that employer's 
192.12 	trade or business;
192.13 	(34) (32) employment in "agricultural employment" unless considered it is "covered 
192.14 	agricultural employment" under subdivision 11; or
192.15 	(35) (33) if employment during one-half or more of any pay period was covered 
192.16 	employment, all the employment for the pay period is considered covered employment; 
192.17 	but if during more than one-half of any pay period the employment was noncovered 
192.18 	employment, then all of the employment for the pay period is considered noncovered 
192.19 	employment. "Pay period" means a period of not more than a calendar month for which a 
192.20 	payment or compensation is ordinarily made to the employee by the employer.

192.21 	Sec. 3. Minnesota Statutes 2014, section 268.035, is amended by adding a subdivision 
192.22 	to read:
192.23 		Subd. 20b.Nonprofit organization. "Nonprofit organization" means an 
192.24 	organization described in United States Code, title 26, section 501(c)(3), and is exempt 
192.25 	from income tax under section 501(a).

192.26 	Sec. 4. Minnesota Statutes 2014, section 268.035, subdivision 23a, is amended to read:
192.27 		Subd. 23a.Suitable employment. (a) Suitable employment means employment in 
192.28 	the applicant's labor market area that is reasonably related to the applicant's qualifications. 
192.29 	In determining whether any employment is suitable for an applicant, the degree of risk 
192.30 	involved to the health and safety, physical fitness, prior training, experience, length 
192.31 	of unemployment, prospects for securing employment in the applicant's customary 
192.32 	occupation, and the distance of the employment from the applicant's residence is 
192.33 	considered.
193.1 	(b) In determining what is suitable employment, primary consideration is given to the 
193.2 	temporary or permanent nature of the applicant's separation from employment and whether 
193.3 	the applicant has favorable prospects of finding employment in the applicant's usual or 
193.4 	customary occupation at the applicant's past wage level within a reasonable period of time.
193.5 	If prospects are unfavorable, employment at lower skill or wage levels is suitable 
193.6 	if the applicant is reasonably suited for the employment considering the applicant's 
193.7 	education, training, work experience, and current physical and mental ability.
193.8 	The total compensation must be considered, including the wage rate, hours of 
193.9 	employment, method of payment, overtime practices, bonuses, incentive payments, and 
193.10 	fringe benefits.
193.11 	(c) When potential employment is at a rate of pay lower than the applicant's former 
193.12 	rate, consideration must be given to the length of the applicant's unemployment and the 
193.13 	proportion of difference in the rates. Employment that may not be suitable because of 
193.14 	lower wages during the early weeks of the applicant's unemployment may become suitable 
193.15 	as the duration of unemployment lengthens.
193.16 	(d) For an applicant seasonally unemployed, suitable employment includes 
193.17 	temporary work in a lower skilled occupation that pays average gross weekly wages equal 
193.18 	to or more than 150 percent of the applicant's weekly unemployment benefit amount.
193.19 	(e) If a majority of the applicant's weeks of employment in the base period includes 
193.20 	part-time employment, part-time employment in a position with comparable skills and 
193.21 	comparable hours that pays comparable wages is considered suitable employment.
193.22 	Full-time employment is not considered suitable employment for an applicant if a 
193.23 	majority of the applicant's weeks of employment in the base period includes part-time 
193.24 	employment.
193.25 	(f) To determine suitability of employment in terms of shifts, the arrangement of 
193.26 	hours in addition to the total number of hours is to be considered. Employment on a 
193.27 	second, third, rotating, or split shift is suitable employment if it is customary in the 
193.28 	occupation in the labor market area.
193.29 	(g) Employment is not considered suitable if:
193.30 	(1) the position offered is vacant because of a labor dispute;
193.31 	(2) the wages, hours, or other conditions of employment are substantially less 
193.32 	favorable than those prevailing for similar employment in the labor market area; or
193.33 	(3) as a condition of becoming employed, the applicant would be required to join a 
193.34 	company union or to resign from or refrain from joining any bona fide labor organization; or
193.35 	(4) the employment is with a staffing service and less than 25 percent of the 
193.36 	applicant's wage credits are from a job assignment with the client of a staffing service.
194.1 	(h) A job assignment with a staffing service is considered suitable only if 25 
194.2 	percent or more of the applicant's wage credits are from job assignments with clients of 
194.3 	a staffing service and the job assignment meets the definition of suitable employment 
194.4 	under paragraph (a).

194.5 	Sec. 5. Minnesota Statutes 2014, section 268.085, subdivision 4, is amended to read:
194.6 		Subd. 4.Social Security old age insurance benefits. (a) Any applicant aged 62 or 
194.7 	over is required to state when filing an application for unemployment benefits and when 
194.8 	filing continued requests for unemployment benefits if the applicant is receiving, has filed 
194.9 	for, or intends to file for, primary Social Security old age benefits.
194.10 	(b) Unless paragraph (b) (c) applies, 50 percent of the weekly equivalent of the 
194.11 	primary Social Security old age benefit the applicant has received, has filed for, or 
194.12 	intends to file for, with respect to that week must be deducted from an applicant's weekly 
194.13 	unemployment benefit amount.
194.14 	(b) (c) If all of the applicant's wage credits were earned while the applicant was 
194.15 	claiming Social Security old age benefits, there is no deduction of the Social Security 
194.16 	benefits from the applicant's weekly unemployment benefit amount.
194.17 	(c) (d) Information from the Social Security Administration is considered conclusive, 
194.18 	absent specific evidence showing that the information was erroneous.
194.19 	(d) (e) This subdivision does not apply to Social Security survivor benefits.

194.20 	Sec. 6. Minnesota Statutes 2014, section 268.085, subdivision 5, is amended to read:
194.21 		Subd. 5.Deductible earnings. (a) If the applicant has earnings, including holiday 
194.22 	pay, with respect to any week, from employment, covered employment, noncovered 
194.23 	employment, self-employment, or volunteer work, equal to or in excess of the applicant's 
194.24 	weekly unemployment benefit amount, the applicant is ineligible for unemployment 
194.25 	benefits for that week.
194.26 	(b) If the applicant has earnings, including holiday pay, with respect to any week, 
194.27 	that is less than the applicant's weekly unemployment benefit amount, from employment, 
194.28 	covered employment, noncovered employment, self-employment, or volunteer work, 50 
194.29 	percent of the earnings are deducted from the weekly unemployment benefit amount.
194.30 	(c) No deduction is made from an applicant's weekly unemployment benefit amount 
194.31 	for earnings from service in the National Guard or a United States military reserve unit or 
194.32 	from direct service as a volunteer firefighter or volunteer ambulance service personnel. 
194.33 	This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided 
195.1 	to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made 
195.2 	for jury duty pay or for pay as an election judge.
195.3 	(d) The applicant may report deductible earnings on continued requests for 
195.4 	unemployment benefits at the next lower whole dollar amount.
195.5 	(e) Deductible earnings does not include any money considered that is a deductible 
195.6 	payment under subdivision 3, but includes all compensation considered wages under 
195.7 	section 268.035, subdivision 29, and any other compensation considered earned income 
195.8 	under state and federal law for income tax purposes.

195.9 	Sec. 7. REVISOR'S INSTRUCTION.
 195.10 	(a) The revisor of statutes shall change "liability" to "liability for damages" in 
195.11 	Minnesota Rules, part 3315.0555, subpart 1.
195.12 	(b) The revisor of statutes shall change "entitled to" to "eligible for" in Minnesota 
195.13 	Statutes, section 268.085, subdivision 1, clause (6).
195.14 	(c) The revisor of statutes shall change "shall calculate" to "must calculate" in 
195.15 	Minnesota Statutes, section 268.035, subdivision 23.
195.16 	(d) The revisor of statutes shall renumber Minnesota Statutes, section 268.035, 
195.17 	subdivision 12d, to subdivision 12f.
195.18 	(e) The revisor of statutes shall reletter the paragraphs in Minnesota Statutes, section 
195.19 	268.085, subdivision 4, as follows:
195.20 	(1) paragraph (a) shall be relettered paragraph (c); and
195.21 	(2) paragraph (c) shall be relettered paragraph (a).
195.22 	(f) The revisor of statutes shall renumber the reference to "clause (29)" to "clause 
195.23 	(27)" in Minnesota Statutes, section 268.046, subdivision 1.
195.24 	(g) The revisor of statutes shall renumber the reference to "clause (10)" to "clause 
195.25 	(8)" in Minnesota Statutes, section 383C.19.

195.26 	Sec. 8. EFFECTIVE DATE.
 195.27 	This article is effective July 31, 2016, and applies to all matters pending a 
195.28 	determination or a decision by an unemployment law judge.

195.29 	ARTICLE 11
195.30 	UNEMPLOYMENT INSURANCE ADVISORY COUNCIL POLICY

195.31 	Section 1. Minnesota Statutes 2014, section 268.051, subdivision 5, is amended to read:
195.32 		Subd. 5.Tax rate for new employers. (a) Each new taxpaying employer that does 
195.33 	not qualify for an experience rating under subdivision 3, except new employers in a high 
196.1 	experience rating industry, must be assigned, for a calendar year, a tax rate the higher of 
196.2 	(1) one percent, or (2) the tax rate computed, to the nearest 1/100 of a percent, by dividing 
196.3 	the total amount of unemployment benefits paid all applicants during the 48 calendar 
196.4 	months ending on June 30 of the prior calendar year by the total taxable wages of all 
196.5 	taxpaying employers during the same period, plus the applicable base tax rate and any 
196.6 	additional assessments under subdivision 2, paragraph (c).
196.7 	(b) Each new taxpaying employer in a high experience rating industry that does not 
196.8 	qualify for an experience rating under subdivision 3, must be assigned, for a calendar year, 
196.9 	a tax rate the higher of (1) that assigned under paragraph (a), or (2) the tax rate, computed 
196.10 	to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits 
196.11 	paid to all applicants from high experience rating industry employers during the 48 
196.12 	calendar months ending on June 30 of the prior calendar year by the total taxable wages 
196.13 	of all high experience rating industry employers during the same period, to a maximum 
196.14 	provided for under subdivision 3, paragraph (b), plus the applicable base tax rate and any 
196.15 	additional assessments under subdivision 2, paragraph (c).
196.16 	(c) An employer is considered to be in a high experience rating industry if:
196.17 	(1) the employer is engaged in residential, commercial, or industrial construction, 
196.18 	including general contractors;
196.19 	(2) the employer is engaged in sand, gravel, or limestone mining;
196.20 	(3) the employer is engaged in the manufacturing of concrete, concrete products, 
196.21 	or asphalt; or
196.22 	(4) the employer is engaged in road building, repair, or resurfacing, including bridge 
196.23 	and tunnels and residential and commercial driveways and parking lots.
196.24 	(a) Each new taxpaying employer that does not qualify for an experience rating 
196.25 	under subdivision 3 must be assigned, for the calendar year, a tax rate equal to the average 
196.26 	experience rating for the employer's industry, plus the applicable base tax rate and any 
196.27 	additional assessments under subdivision 2, paragraph (c). The tax rate assigned may not 
196.28 	be less than one percent.
196.29 	(b) The employer's industry, except for construction, is determined by the first two 
196.30 	digits of the North American Industrial Classification System (NAICS). The construction 
196.31 	industry is determined to five digits. For each calendar year the commissioner must 
196.32 	compute, in accordance with subdivision 3, the average industry experience rating for 
196.33 	the employer's industry.
196.34 	(d) (c) Regardless of any law to the contrary, a taxpaying employer must be 
196.35 	assigned a tax rate under this subdivision if the employer had no taxable wages during the 
196.36 	experience rating period under subdivision 3.
197.1 	(e) (d) The commissioner must send to the new employer, by mail or electronic 
197.2 	transmission, a determination of tax rate. An employer may appeal the determination of 
197.3 	tax rate in accordance with the procedures in subdivision 6, paragraph (c).

197.4 	EFFECTIVE DATE. This section is effective January 1, 2018, and applies to tax 
197.5 	rates assigned for the calendar year 2018 and thereafter.

197.6 	Sec. 2. Minnesota Statutes 2015 Supplement, section 268.07, subdivision 3b, is 
197.7 	amended to read:
197.8 		Subd. 3b.Limitations on applications and benefit accounts. (a) An application for 
197.9 	unemployment benefits is effective the Sunday of the calendar week that the application 
197.10 	was filed. An application for unemployment benefits may be backdated one calendar week 
197.11 	before the Sunday of the week the application was actually filed if the applicant requests 
197.12 	the backdating at within seven calendar days of  the time date the application is filed. An 
197.13 	application may be backdated only if the applicant was unemployed during the period of 
197.14 	the backdating. If an individual attempted to file an application for unemployment benefits, 
197.15 	but was prevented from filing an application by the department, the application is effective 
197.16 	the Sunday of the calendar week the individual first attempted to file an application.
197.17 	(b) A benefit account established under subdivision 2 is effective the date the 
197.18 	application for unemployment benefits was effective.
197.19 	(c) A benefit account, once established, may later be withdrawn only if:
197.20 	(1) the applicant has not been paid any unemployment benefits on that benefit 
197.21 	account; and
197.22 	(2) a new application for unemployment benefits is filed and a new benefit account is 
197.23 	established at the time of the withdrawal.
197.24 	A determination or amended determination of eligibility or ineligibility issued under 
197.25 	section 268.101, that was sent before the withdrawal of the benefit account, remains in 
197.26 	effect and is not voided by the withdrawal of the benefit account.
197.27 	(d) An application for unemployment benefits is not allowed before the Sunday 
197.28 	following the expiration of the benefit year on a prior benefit account. Except as allowed 
197.29 	under paragraph (c), an applicant may establish only one benefit account each 52 calendar 
197.30 	weeks. This paragraph applies to benefit accounts established under any federal law or 
197.31 	the law of any other state.

197.32 	EFFECTIVE DATE. This section is effective July 31, 2016, and applies to 
197.33 	applications for unemployment benefits filed after that date.

198.1 	Sec. 3. Minnesota Statutes 2014, section 268.095, subdivision 1, is amended to read:
198.2 		Subdivision 1.Quit. An applicant who quit employment is ineligible for all 
198.3 	unemployment benefits according to subdivision 10 except when:
198.4 	(1) the applicant quit the employment because of a good reason caused by the 
198.5 	employer as defined in subdivision 3;
198.6 	(2) the applicant quit the employment to accept other covered employment that 
198.7 	provided substantially equal to or  better terms and conditions of employment, but 
198.8 	the applicant did not work long enough at the second employment to have sufficient 
198.9 	subsequent earnings wages paid to satisfy the period of ineligibility that would otherwise 
198.10 	be imposed under subdivision 10 for quitting the first employment;
198.11 	(3) the applicant quit the employment within 30 calendar days of beginning the 
198.12 	employment because and the employment was unsuitable for the applicant;
198.13 	(4) the employment was unsuitable for the applicant and the applicant quit to enter 
198.14 	reemployment assistance training;
198.15 	(5) the employment was part time and the applicant also had full-time employment 
198.16 	in the base period, from which full-time employment the applicant separated because of 
198.17 	reasons for which the applicant was held is not to be ineligible, and the wage credits from 
198.18 	the full-time employment are sufficient to meet the minimum requirements to establish a 
198.19 	benefit account under section 268.07;
198.20 	(6) the applicant quit because the employer notified the applicant that the applicant 
198.21 	was going to be laid off because of lack of work within 30 calendar days. An applicant 
198.22 	who quit employment within 30 calendar days of a notified date of layoff because of lack 
198.23 	of work is ineligible for unemployment benefits through the end of the week that includes 
198.24 	the scheduled date of layoff;
198.25 	(7) the applicant quit the employment (i) because the applicant's serious illness or 
198.26 	injury made it medically necessary that the applicant quit; or (ii) in order to provide 
198.27 	necessary care because of the illness, injury, or disability of an immediate family member 
198.28 	of the applicant. This exception only applies if the applicant informs the employer of 
198.29 	the medical problem and requests accommodation and no reasonable accommodation 
198.30 	is made available.
198.31 	If the applicant's serious illness is chemical dependency, this exception does not 
198.32 	apply if the applicant was previously diagnosed as chemically dependent or had treatment 
198.33 	for chemical dependency, and since that diagnosis or treatment has failed to make 
198.34 	consistent efforts to control the chemical dependency.
198.35 	This exception raises an issue of the applicant's being available for suitable 
198.36 	employment under section 268.085, subdivision 1, that the commissioner must determine;
199.1 	(8) the applicant's loss of child care for the applicant's minor child caused the 
199.2 	applicant to quit the employment, provided the applicant made reasonable effort to obtain 
199.3 	other child care and requested time off or other accommodation from the employer and no 
199.4 	reasonable accommodation is available.
199.5 	This exception raises an issue of the applicant's being available for suitable 
199.6 	employment under section 268.085, subdivision 1, that the commissioner must determine;
199.7 	(9) the applicant quit because domestic abuse, sexual assault, or stalking of the 
199.8 	applicant or an immediate family member of the applicant, necessitated the applicant's 
199.9 	quitting the employment.
199.10 	For purposes of this subdivision:
199.11 	(i) "domestic abuse" has the meaning given in section 518B.01;
199.12 	(ii) "sexual assault" means an act that would constitute a violation of sections 
199.13 	609.342 to 609.3453 or 609.352; and
199.14 	(iii) "stalking" means an act that would constitute a violation of section 609.749; or
199.15 	(10) the applicant quit in order to relocate to accompany a spouse:
199.16 	(1) who is in the military; or
199.17 	(2) whose job was transferred by the spouse's employer to a new location changed 
199.18 	making it impractical for the applicant to commute.

199.19 	EFFECTIVE DATE. This section is effective July 31, 2016, and applies to all 
199.20 	matters pending a determination or a decision by an unemployment law judge.

199.21 	Sec. 4. Minnesota Statutes 2014, section 268.101, subdivision 2, is amended to read:
199.22 		Subd. 2.Determination. (a) The commissioner must determine any issue of 
199.23 	ineligibility raised by information required from an applicant under subdivision 1, 
199.24 	paragraph (a) or (c), and send to the applicant and any involved employer, by mail or 
199.25 	electronic transmission, a document titled a determination of eligibility or a determination 
199.26 	of ineligibility, as is appropriate. The determination on an issue of ineligibility as a result 
199.27 	of a quit or a discharge of the applicant must state the effect on the employer under section 
199.28 	268.047. A determination must be made in accordance with this paragraph even if a 
199.29 	notified employer has not raised the issue of ineligibility.
199.30 	(b) The commissioner must determine any issue of ineligibility raised by an 
199.31 	employer and send to the applicant and that employer, by mail or electronic transmission, 
199.32 	a document titled a determination of eligibility or a determination of ineligibility as is 
199.33 	appropriate. The determination on an issue of ineligibility as a result of a quit or discharge 
199.34 	of the applicant must state the effect on the employer under section 268.047.
199.35 	If a base period employer:
200.1 	(1) was not the applicant's most recent employer before the application for 
200.2 	unemployment benefits;
200.3 	(2) did not employ the applicant during the six calendar months before the 
200.4 	application for unemployment benefits; and
200.5 	(3) did not raise an issue of ineligibility as a result of a quit or discharge of the 
200.6 	applicant within ten calendar days of notification under subdivision 1, paragraph (b);
200.7 	then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two 
200.8 	weeks following the week that the issue of ineligibility as a result of a quit or discharge of 
200.9 	the applicant was raised by the employer.
200.10 	A communication from an employer must specifically set out why the applicant 
200.11 	should be determined ineligible for unemployment benefits for that communication to be 
200.12 	considered to have raised an issue of ineligibility for purposes of this section. A statement 
200.13 	of "protest" or a similar term without more information does not constitute raising an issue 
200.14 	of ineligibility for purposes of this section.
200.15 	(c) Subject to section 268.031, an issue of ineligibility is determined based upon 
200.16 	that information required of an applicant, any information that may be obtained from an 
200.17 	applicant or employer, and information from any other source.
200.18 	(d) Regardless of the requirements of this subdivision, the commissioner is not 
200.19 	required to send to an applicant a copy of the determination where the applicant has 
200.20 	satisfied a period of ineligibility because of a quit or a discharge under section 268.095, 
200.21 	subdivision 10.
200.22 	(e) The commissioner may issue a determination on an issue of ineligibility at any 
200.23 	time within 24 months from the establishment of a benefit account based upon information 
200.24 	from any source, even if the issue of ineligibility was not raised by the applicant or an 
200.25 	employer. This paragraph does not prevent the imposition of a penalty on
200.26 	If an applicant obtained unemployment benefits through fraud under section 268.18, 
200.27 	subdivision 2, or 268.182 a determination of ineligibility may be issued within 48 months 
200.28 	of the establishment of the benefit account.
200.29 	(f) A determination of eligibility or determination of ineligibility is final unless an 
200.30 	appeal is filed by the applicant or notified employer within 20 calendar days after sending. 
200.31 	The determination must contain a prominent statement indicating the consequences of not 
200.32 	appealing. Proceedings on the appeal are conducted in accordance with section 268.105.
200.33 	(g) An issue of ineligibility required to be determined under this section includes 
200.34 	any question regarding the denial or allowing of unemployment benefits under this chapter 
200.35 	except for issues under section 268.07. An issue of ineligibility for purposes of this section 
200.36 	includes any question of effect on an employer under section 268.047.
201.1 	(h) Except for issues of ineligibility as a result of a quit or discharge of the applicant, 
201.2 	the employer will be (1) sent a copy of the determination of eligibility or a determination 
201.3 	of ineligibility, or (2) considered an involved employer for purposes of an appeal under 
201.4 	section 268.105, only if the employer raised the issue of ineligibility.

201.5 	EFFECTIVE DATE. This section is effective July 31, 2016, and applies to all 
201.6 	matters pending a determination.

201.7 	Sec. 5. Minnesota Statutes 2014, section 268.182, subdivision 2, is amended to read:
201.8 		Subd. 2.Administrative penalties. (a) Any applicant who knowingly makes a false 
201.9 	statement or representation, who knowingly fails to disclose a material fact, or who makes 
201.10 	a false statement or representation without a good faith belief as to the correctness of the 
201.11 	statement or representation, in order to obtain or in an attempt to obtain unemployment 
201.12 	benefits may be assessed, in addition to any other penalties, an administrative penalty of 
201.13 	being ineligible for unemployment benefits for 13 to 104 weeks.
201.14 	(b) A determination of ineligibility setting out the weeks the applicant is ineligible 
201.15 	must be sent to the applicant by mail or electronic transmission. A determination of 
201.16 	ineligibility under this subdivision may be issued within 48 months of the establishment of 
201.17 	the benefit account upon which the unemployment benefits were obtained, or attempted to 
201.18 	be obtained. Unless an appeal is filed within 20 calendar days of sending, the determination 
201.19 	is final. Proceedings on the appeal are conducted in accordance with section 268.105.

201.20 	EFFECTIVE DATE. This section is effective July 31, 2016 and applies to all 
201.21 	matters pending a determination. 

201.22 	ARTICLE 12
201.23 	EQUITY

201.24	Section 1. APPROPRIATIONS.
 	
201.25 	The sums shown in the columns marked "Appropriations" are appropriated to the 
201.26 	agencies and for the purposes specified in this article. The appropriations are from the 
201.27 	general fund, or another named fund, and are available for the fiscal year indicated 
201.28 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
201.29 	appropriations listed under them are available for the fiscal year ending June 30, 2016, 
201.30 	or June 30, 2017, respectively.

201.31				APPROPRIATIONS
	
201.32				Available for the Year
	
202.1				Ending June 30
	
202.2					2016
		2017

202.3	Sec. 2. EQUITY APPROPRIATIONS

202.4	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	35,000,000

202.5
202.6	Subd. 2.Department of Employment and 
Economic Development
 		-0-
		34,250,000
	
202.7 	(a) $1,500,000 in fiscal year 2017 is for 
202.8 	grants to the Neighborhood Development 
202.9 	Center for small business programs. For 
202.10 	fiscal year 2018 and thereafter, the base 
202.11 	amount is $750,000 per year.
202.12 	Of this amount, $810,000 is for the small 
202.13 	business development program, including:
202.14 	(1) $620,000 for training, lending, and 
202.15 	business services for aspiring business 
202.16 	owners, and expansion of services for 
202.17 	immigrants in suburban communities; and
202.18 	(2) $190,000 is for Neighborhood 
202.19 	Development Center model outreach and 
202.20 	training activities in greater Minnesota. 
202.21 	Of this amount, $690,000 is for grants for the 
202.22 	small business incubator program, including: 
202.23 	(1) $420,000 for capital improvements to 
202.24 	existing small business incubators; and
202.25 	(2) $270,000 for the creation of two 
202.26 	additional small business incubators.
202.27 	(b) $2,000,000 in fiscal year 2017 is for 
202.28 	a competitive grant program to provide 
202.29 	grants to organizations that provide support 
202.30 	services for individuals, such as job training, 
202.31 	employment preparation, internships, job 
202.32 	assistance to fathers, financial literacy, 
202.33 	academic and behavioral interventions 
202.34 	for low-performing students, and youth 
203.1 	intervention. Grants made under this section 
203.2 	must focus on low-income communities, 
203.3 	young adults from families with a history of 
203.4 	intergenerational poverty, and communities 
203.5 	of color. All grant recipients are subject to the 
203.6 	requirements of section 11. Of this amount, 
203.7 	up to five percent is for administration and 
203.8 	monitoring of the program. For fiscal year 
203.9 	2018 and thereafter, the base amount is 
203.10 	$1,500,000 per year.
203.11 	(c) $1,000,000 in fiscal year 2017 is for a 
203.12 	grant to YWCA St. Paul to provide job 
203.13 	training services and workforce development 
203.14 	programs and services, including job skills 
203.15 	training and counseling. For fiscal year 2018 
203.16 	and thereafter, the base amount is $250,000 
203.17 	per year.
203.18 	(d) $750,000 in fiscal year 2017 is for a grant 
203.19 	to the YWCA of Minneapolis to provide 
203.20 	economically challenged individuals the jobs 
203.21 	skills training, career counseling, and job 
203.22 	placement assistance necessary to secure 
203.23 	a child development associate credential 
203.24 	and to have a career path in early childhood 
203.25 	education. For fiscal year 2018 and thereafter, 
203.26 	the base amount is $375,000 per year.
203.27 	(e) $4,250,000 in fiscal year 2017 is for a 
203.28 	grant to EMERGE Community Development, 
203.29 	in collaboration with community partners, for 
203.30 	services targeting Minnesota communities 
203.31 	with the highest concentrations of African 
203.32 	and African-American joblessness, based on 
203.33 	the most recent census tract data, to provide 
203.34 	employment readiness training, credentialed 
203.35 	training placement, job placement and 
204.1 	retention services, supportive services for 
204.2 	hard-to-employ individuals, and a general 
204.3 	education development fast track and adult 
204.4 	diploma program. For fiscal year 2018 and 
204.5 	thereafter, the base amount is $1,000,000 per 
204.6 	year.
204.7 	(f) $2,500,000 in fiscal year 2017 is for a grant 
204.8 	to the Metropolitan Economic Development 
204.9 	Association (MEDA) for statewide business 
204.10 	development and assistance services, 
204.11 	including services to entrepreneurs with 
204.12 	businesses that have the potential to create 
204.13 	job opportunities for unemployed and 
204.14 	underemployed people, with an emphasis 
204.15 	on minority-owned businesses. For fiscal 
204.16 	year 2018 and thereafter, the base amount is 
204.17 	$1,175,000 per year.
204.18 	Of this appropriation, $1,600,000 is for a 
204.19 	revolving loan fund to provide additional 
204.20 	minority-owned businesses with access to 
204.21 	capital.
204.22 	(g) $1,000,000 in fiscal year 2017 is for a 
204.23 	grant to the Minneapolis Foundation for 
204.24 	a strategic intervention program designed 
204.25 	to target and connect program participants 
204.26 	to meaningful, sustainable living-wage 
204.27 	employment.
204.28 	(h) $1,200,000 in fiscal year 2017 is 
204.29 	for performance grants under Minnesota 
204.30 	Statutes, section 116J.8747, to Twin Cities 
204.31 	R!SE to provide training to hard-to-train 
204.32 	individuals. For fiscal year 2018 and 
204.33 	thereafter, the base amount is $600,000 per 
204.34 	year. Of the amount appropriated in fiscal 
204.35 	year 2017, $407,000 is for a grant to Twin 
205.1 	Cities R!SE, in collaboration with Metro 
205.2 	Transit and Hennepin Technical College, 
205.3 	for the Metro Transit technician training 
205.4 	program. This is a onetime appropriation and 
205.5 	is available until June 30, 2019.
205.6 	(i) $2,500,000 in fiscal year 2017 is for 
205.7 	the creation of additional multiemployer, 
205.8 	sector-based career connections pathways. 
205.9 	This is a onetime appropriation and is 
205.10 	available until June 30, 2019. $2,200,000 of 
205.11 	this amount is for a grant to Hennepin County 
205.12 	to establish pathways using the Hennepin 
205.13 	Career Connections framework. $300,000 
205.14 	of this amount is for a grant to Hennepin 
205.15 	County to establish a pilot program based on 
205.16 	the career connections pathways framework 
205.17 	outside the seven-county metropolitan area, 
205.18 	in collaboration with another local unit of 
205.19 	government.
205.20 	(j) $1,500,000 in fiscal year 2017 is for the 
205.21 	high-wage, high-demand, nontraditional jobs 
205.22 	grant program under Minnesota Statutes, 
205.23 	section 116L.99. Of this amount, up to five 
205.24 	percent is for administration and monitoring 
205.25 	of the program. For fiscal year 2018 and 
205.26 	thereafter, the base amount is $1,000,000 per 
205.27 	year.
205.28 	(k) $1,000,000 in fiscal year 2017 is for the 
205.29 	youth-at-work competitive grant program 
205.30 	under Minnesota Statutes, section 116L.562, 
205.31 	subdivision 3. Of this amount, up to five 
205.32 	percent is for administration and monitoring 
205.33 	of the program.
205.34 	(l) $2,000,000 in fiscal year 2017 is for a 
205.35 	competitive grant program for grants to 
206.1 	organizations providing services to relieve 
206.2 	economic disparities in the Southeast Asian 
206.3 	community through workforce recruitment, 
206.4 	development, job creation, assistance of 
206.5 	smaller organizations to increase capacity, 
206.6 	and outreach. Grant recipients under this 
206.7 	paragraph are subject to the requirements of 
206.8 	section 11. Of this amount, up to five percent 
206.9 	is for administration and monitoring of the 
206.10 	program. For fiscal year 2018 and thereafter, 
206.11 	the base amount is $1,000,000 per year.
206.12 	(m) $1,500,000 in fiscal year 2017 is for 
206.13 	a grant to Latino Communities United 
206.14 	in Service (CLUES) to expand culturally 
206.15 	tailored programs that address employment 
206.16 	and education skill gaps for working parents 
206.17 	and underserved youth by providing new 
206.18 	job skills training to stimulate higher wages 
206.19 	for low-income people, family support 
206.20 	systems designed to reduce intergenerational 
206.21 	poverty, and youth programming to promote 
206.22 	educational advancement and career 
206.23 	pathways. At least 50 percent of this amount 
206.24 	must be used for programming targeted at 
206.25 	greater Minnesota. For fiscal year 2018 and 
206.26 	thereafter, the base amount is $750,000 per 
206.27 	year.
206.28 	(n) $880,000 in fiscal year 2017 is for a grant 
206.29 	to the American Indian Opportunities and 
206.30 	Industrialization Center, in collaboration 
206.31 	with the Northwest Indian Community 
206.32 	Development Center, to reduce academic 
206.33 	disparities for American Indian students 
206.34 	and adults. The grant funds may be used to 
206.35 	provide:
207.1 	(1) student tutoring and testing support 
207.2 	services;
207.3 	(2) training in information technology;
207.4 	(3) assistance in obtaining a GED;
207.5 	(4) remedial training leading to enrollment in 
207.6 	a postsecondary higher education institution; 
207.7 	(5) real-time work experience in information 
207.8 	technology fields; and
207.9 	(6) contextualized adult basic education.
207.10 	After notification to the legislature, the 
207.11 	commissioner may transfer this appropriation 
207.12 	to the commissioner of education. For fiscal 
207.13 	year 2018 and thereafter, the base amount is 
207.14 	$250,000 per year.
207.15 	(o) $500,000 in fiscal year 2017 is for a 
207.16 	grant to the White Earth Nation for the 
207.17 	White Earth Nation Integrated Business 
207.18 	Development System to provide business 
207.19 	assistance with workforce development, 
207.20 	outreach, technical assistance, infrastructure 
207.21 	and operational support, financing, and other 
207.22 	business development activities. For fiscal 
207.23 	year 2018 and thereafter, the base amount is 
207.24 	$125,000 per year.
207.25 	(p) $500,000 is for the Minnesota emerging 
207.26 	entrepreneur program under Minnesota 
207.27 	Statutes, section 116M.18. Of this amount, 
207.28 	up to five percent is for administration and 
207.29 	monitoring of the program. For fiscal year 
207.30 	2018 and thereafter, the base amount is 
207.31 	$750,000 per year.
207.32 	(q) $1,000,000 is for the Pathways to 
207.33 	Prosperity adult workforce development 
207.34 	competitive grant program. When 
208.1 	awarding grants under this paragraph, 
208.2 	the commissioner may give preference to 
208.3 	any previous grantee with demonstrated 
208.4 	success in job training and placement for 
208.5 	hard-to-train individuals. A portion of the 
208.6 	grants may provide year-end educational 
208.7 	and experiential learning opportunities for 
208.8 	teens and young adults that provide careers 
208.9 	in the construction industry. Of this amount, 
208.10 	up to five percent is for administration and 
208.11 	monitoring of the program.
208.12 	(r) $320,000 is for the capacity building grant 
208.13 	program to assist nonprofit organizations 
208.14 	offering or seeking to offer workforce 
208.15 	development and economic development 
208.16 	programming. For fiscal year 2018 and 
208.17 	thereafter, the base amount is $1,000,000 per 
208.18 	year.
208.19 	(s) $2,000,000 in fiscal year 2017 is for grants 
208.20 	for positive youth development, community 
208.21 	engagement, legal services, and capacity 
208.22 	building for community-based organizations 
208.23 	serving Somali youth, including youth 
208.24 	engagement, prevention, and intervention 
208.25 	activities that help build the resiliency of 
208.26 	the Somali Minnesotan community and 
208.27 	address challenges facing Somali youth. 
208.28 	Of this amount, $1,000,000 is for a grant 
208.29 	to Youthprise for activities provided in this 
208.30 	paragraph. Funded projects must provide 
208.31 	culturally and linguistically relevant services. 
208.32 	To the maximum extent possible, 50 percent 
208.33 	of the funding must be distributed in greater 
208.34 	Minnesota, and 50 percent of funding must 
208.35 	be distributed within the metropolitan area, 
208.36 	as defined in Minnesota Statutes, section 
209.1 	473.121, subdivision 2. Of the amount 
209.2 	appropriated for grants to be awarded by 
209.3 	the commissioner, up to five percent is 
209.4 	for administration and monitoring of the 
209.5 	program. This is a onetime appropriation  and 
209.6 	is available until June 30, 2019.
209.7 	(t) $600,000 in fiscal year 2017 is for a grant 
209.8 	to Ujamaa Place for job training, employment 
209.9 	preparation, internships, education, training 
209.10 	in the construction trades, housing, and 
209.11 	organizational capacity building.
209.12 	(u) $1,750,000 in fiscal year 2017 is for 
209.13 	a grant to Enterprise Minnesota, Inc. Of 
209.14 	this amount, $875,000 is for the small 
209.15 	business growth acceleration program under 
209.16 	Minnesota Statutes, section 116O.115, and 
209.17 	$875,000 is for operations under Minnesota 
209.18 	Statutes, sections 116O.01 to 116O.061. 
209.19 	For fiscal year 2018 and thereafter, the base 
209.20 	amount is $875,000 per year.
209.21 	(v) $1,000,000 in fiscal year 2017 is for 
209.22 	grants to centers for independent living 
209.23 	under Minnesota Statutes, section 268A.11. 
209.24 	For fiscal year 2018 and thereafter, the base 
209.25 	amount is $500,000 per year.
209.26 	(w) $1,000,000 in fiscal year 2017 is from the 
209.27 	general fund for State Services for the Blind. 
209.28 	Funds appropriated must be used to provide 
209.29 	services for senior citizens who are becoming 
209.30 	blind. At least half of the funds appropriated 
209.31 	must be used to provide training services for 
209.32 	seniors who are becoming blind. Training 
209.33 	services must provide independent living 
209.34 	skills to seniors who are becoming blind to 
209.35 	allow them to continue to live independently 
210.1 	in their homes. For fiscal year 2018 and 
210.2 	thereafter, the base amount is $500,000 per 
210.3 	year.
210.4 	(x) $2,000,000 in fiscal year 2017 is from the 
210.5 	general fund for a grant to the Construction 
210.6 	Careers Foundation for the construction 
210.7 	career pathway initiative to provide 
210.8 	year-round educational and experiential 
210.9 	learning opportunities for teens and young 
210.10 	adults under the age of 21 that lead to careers 
210.11 	in the construction industry. For fiscal year 
210.12 	2018 and thereafter, the base amount is 
210.13 	$1,000,000 per year. Grant funds must be 
210.14 	used to:
210.15 	(1) increase construction industry exposure 
210.16 	activities for middle school and high school 
210.17 	youth, parents, and counselors to reach a more 
210.18 	diverse demographic and broader statewide 
210.19 	audience. This requirement includes, but 
210.20 	is not limited to, an expansion of programs 
210.21 	to provide experience in different crafts to 
210.22 	youth and young adults throughout the state;
210.23 	(2) increase the number of high schools 
210.24 	in Minnesota offering construction classes 
210.25 	during the academic year that utilize a 
210.26 	multicraft curriculum;
210.27 	(3) increase the number of summer internship 
210.28 	opportunities;
210.29 	(4) enhance activities to support graduating 
210.30 	seniors in their efforts to obtain employment 
210.31 	in the construction industry;
210.32 	(5) increase the number of young adults 
210.33 	employed in the construction industry and 
210.34 	ensure that they reflect Minnesota's diverse 
210.35 	workforce; and
211.1 	(6) enhance an industrywide marketing 
211.2 	campaign targeted to youth and young adults 
211.3 	about the depth and breadth of careers within 
211.4 	the construction industry.
211.5 	Programs and services supported by grant 
211.6 	funds must give priority to individuals and 
211.7 	groups that are economically disadvantaged 
211.8 	or historically underrepresented in the 
211.9 	construction industry, including but not 
211.10 	limited to women, veterans, and members of 
211.11 	minority and immigrant groups.

211.12	Subd. 3.Minnesota Housing Finance Agency
 		-0-
		750,000
	
211.13 	$500,000 is for a grant to Build Wealth MN to 
211.14 	provide a family stabilization plan program 
211.15 	including program outreach, financial literacy 
211.16 	education, and budget and debt counseling.
211.17 	$250,000 is a onetime appropriation for 
211.18 	grants to eligible applicants to create or 
211.19 	expand risk mitigation programs to reduce 
211.20 	landlord financial risks for renting to persons 
211.21 	eligible under Minnesota Statutes, section 
211.22 	462A.204. Eligible programs may reimburse 
211.23 	landlords for costs including but not limited 
211.24 	to nonpayment of rent, or damage costs above 
211.25 	those costs covered by security deposits. The 
211.26 	agency may give higher priority to applicants 
211.27 	that can demonstrate a matching amount 
211.28 	of money by a local unit of government, 
211.29 	business, or nonprofit organization. Grantees 
211.30 	must establish a procedure to review and 
211.31 	validate claims and reimbursements under 
211.32 	this grant program.

211.33 	Sec. 3. Minnesota Statutes 2014, section 16C.10, subdivision 6, is amended to read:
212.1 		Subd. 6.Expenditures under specified amounts. A competitive solicitation 
212.2 	process described in this chapter is not required for the acquisition of goods, services, 
212.3 	construction, and utilities in an amount of $5,000 or less or as authorized by section 
212.4 	16C.16, subdivisions 6, paragraph (b), 6a, paragraph (b), and 7, paragraph (b).

212.5 	Sec. 4. Minnesota Statutes 2014, section 16C.16, subdivision 6, is amended to read:
212.6 		Subd. 6.Purchasing methods. (a) The commissioner may award up to a six 
212.7 	percent preference in the amount bid for specified goods or services to small targeted 
212.8 	group businesses.
212.9 	(b) The commissioner may award a contract for goods, services, or construction 
212.10 	directly to a small business or small targeted group business without going through a 
212.11 	competitive solicitation process up to a total contract award value, including extension 
212.12 	options, of $25,000.
212.13 	(b) (c) The commissioner may designate a purchase of goods or services for 
212.14 	award only to small businesses or small targeted group businesses if the commissioner 
212.15 	determines that at least three small businesses or small targeted group businesses are likely 
212.16 	to bid respond to a solicitation.
212.17 	(c) (d) The commissioner, as a condition of awarding a construction contract or 
212.18 	approving a contract for professional or technical services, may set goals that require 
212.19 	the prime contractor to subcontract a portion of the contract to small businesses or 
212.20 	small targeted group businesses. The commissioner must establish a procedure for 
212.21 	granting waivers from the subcontracting requirement when qualified small businesses 
212.22 	or small targeted group businesses are not reasonably available. The commissioner may 
212.23 	establish financial incentives for prime contractors who exceed the goals for use of small 
212.24 	business or small targeted group business subcontractors and financial penalties for prime 
212.25 	contractors who fail to meet goals under this paragraph. The subcontracting requirements 
212.26 	of this paragraph do not apply to prime contractors who are small businesses or small 
212.27 	targeted group businesses.

212.28 	Sec. 5. Minnesota Statutes 2015 Supplement, section 16C.16, subdivision 6a, is 
212.29 	amended to read:
212.30 		Subd. 6a.Veteran-owned small businesses. (a) Except when mandated by the 
212.31 	federal government as a condition of receiving federal funds, the commissioner shall 
212.32 	award up to a six percent preference, but no less than the percentage awarded to any 
212.33 	other group under this section, in the amount bid on state procurement to certified small 
212.34 	businesses that are majority-owned and operated by veterans.
213.1 	(b) The commissioner may award a contract for goods, services, or construction 
213.2 	directly to a veteran-owned small business without going through a competitive solicitation 
213.3 	process up to a total contract award value, including extension options, of $25,000.
213.4 	(c) The commissioner may designate a purchase of goods or services for award only 
213.5 	to a veteran-owned small business if the commissioner determines that at least three 
213.6 	veteran-owned small businesses are likely to respond to a solicitation.
213.7 	(d) The commissioner, as a condition of awarding a construction contract or 
213.8 	approving a contract for professional or technical services, may set goals that require 
213.9 	the prime contractor to subcontract a portion of the contract to a veteran-owned small 
213.10 	business. The commissioner must establish a procedure for granting waivers from the 
213.11 	subcontracting requirement when qualified veteran-owned small businesses are not 
213.12 	reasonably available. The commissioner may establish financial incentives for prime 
213.13 	contractors who exceed the goals for use of veteran-owned small business subcontractors 
213.14 	and financial penalties for prime contractors who fail to meet goals under this paragraph. 
213.15 	The subcontracting requirements of this paragraph do not apply to prime contractors 
213.16 	who are veteran-owned small businesses.
213.17 	(b) (e) The purpose of this designation is to facilitate the transition of veterans from 
213.18 	military to civilian life, and to help compensate veterans for their sacrifices, including but 
213.19 	not limited to their sacrifice of health and time, to the state and nation during their military 
213.20 	service, as well as to enhance economic development within Minnesota.
213.21 	(c) (f) Before the commissioner certifies that a small business is majority-owned and 
213.22 	operated by a veteran, the commissioner of veterans affairs must verify that the owner of 
213.23 	the small business is a veteran, as defined in section 197.447.

213.24 	Sec. 6. Minnesota Statutes 2014, section 16C.16, subdivision 7, is amended to read:
213.25 		Subd. 7.Economically disadvantaged areas. (a) Except as otherwise provided in 
213.26 	paragraph (b), The commissioner may award up to a six percent preference in the amount 
213.27 	bid on state procurement to small businesses located in an economically disadvantaged area.
213.28 	(b) The commissioner may award up to a four percent preference in the amount bid 
213.29 	on state construction to small businesses located in an economically disadvantaged area.
213.30 	(b) The commissioner may award a contract for goods, services, or construction 
213.31 	directly to a small business located in an economically disadvantaged area without going 
213.32 	through a competitive solicitation process up to a total contract award value, including 
213.33 	extension options, of $25,000.
213.34 	(c) The commissioner may designate a purchase of goods or services for award only 
213.35 	to a small business located in an economically disadvantaged area if the commissioner 
214.1 	determines that at least three small businesses located in an economically disadvantaged 
214.2 	area are likely to respond to a solicitation.
214.3 	(d) The commissioner, as a condition of awarding a construction contract or 
214.4 	approving a contract for professional or technical services, may set goals that require the 
214.5 	prime contractor to subcontract a portion of the contract to a small business located in 
214.6 	an economically disadvantaged area. The commissioner must establish a procedure for 
214.7 	granting waivers from the subcontracting requirement when qualified small businesses 
214.8 	located in an economically disadvantaged area are not reasonably available. The 
214.9 	commissioner may establish financial incentives for prime contractors who exceed the 
214.10 	goals for use of subcontractors that are small businesses located in an economically 
214.11 	disadvantaged area and financial penalties for prime contractors who fail to meet goals 
214.12 	under this paragraph. The subcontracting requirements of this paragraph do not apply to 
214.13 	prime contractors who are small businesses located in an economically disadvantaged area.
214.14 	(c) (e) A business is located in an economically disadvantaged area if:
214.15 	(1) the owner resides in or the business is located in a county in which the median 
214.16 	income for married couples is less than 70 percent of the state median income for married 
214.17 	couples;
214.18 	(2) the owner resides in or the business is located in an area designated a labor 
214.19 	surplus area by the United States Department of Labor; or
214.20 	(3) the business is a certified rehabilitation facility or extended employment provider 
214.21 	as described in chapter 268A.
214.22 	(d) (f) The commissioner may designate one or more areas designated as targeted 
214.23 	neighborhoods under section 469.202 or as border city enterprise zones under section 
214.24 	469.166 as economically disadvantaged areas for purposes of this subdivision if the 
214.25 	commissioner determines that this designation would further the purposes of this section. 
214.26 	If the owner of a small business resides or is employed in a designated area, the small 
214.27 	business is eligible for any preference provided under this subdivision.
214.28 	(e) (g) The Department of Revenue shall gather data necessary to make the 
214.29 	determinations required by paragraph (c) (e), clause (1), and shall annually certify counties 
214.30 	that qualify under paragraph (c) (e), clause (1). An area designated a labor surplus area 
214.31 	retains that status for 120 days after certified small businesses in the area are notified of 
214.32 	the termination of the designation by the United States Department of Labor.

214.33 	Sec. 7. Minnesota Statutes 2014, section 16C.16, is amended by adding a subdivision 
214.34 	to read:
215.1 		Subd. 7a.Designated purchases and subcontractor goals. (a) When designating 
215.2 	purchases directly to a business in accordance with this section, the commissioner may 
215.3 	also designate a purchase of goods or services directly to any combination of small 
215.4 	businesses, small targeted group businesses, veteran-owned small businesses or small 
215.5 	businesses located in an economically disadvantaged area if the commissioner determines 
215.6 	that at least three businesses in two or more of the disadvantaged business categories 
215.7 	are likely to respond.
215.8 	(b) When establishing subcontractor goals under this section, the commissioner may 
215.9 	set goals that require the prime contractor to subcontract a portion of the contract to any 
215.10 	combination of a small business, small targeted group business, veteran-owned small 
215.11 	business, or small business located in an economically disadvantaged area.

215.12 	Sec. 8. Minnesota Statutes 2014, section 16C.16, subdivision 11, is amended to read:
215.13 		Subd. 11.Procurement procedures. All laws and rules pertaining to solicitations, 
215.14 	bid evaluations, contract awards, and other procurement matters apply equally to 
215.15 	procurements designated for small businesses or small targeted group businesses involving 
215.16 	any small business, small targeted group business, veteran-owned business, or small 
215.17 	business located in an economically disadvantaged area. In the event of conflict with other 
215.18 	rules, section 16C.15 and rules adopted under it govern, if section 16C.15 applies. If it 
215.19 	does not apply, sections 16C.16 to 16C.21 and rules adopted under those sections govern.

215.20 	Sec. 9. [116L.562] YOUTH-AT-WORK GRANT PROGRAM.
215.21 		Subdivision 1.Establishment. The commissioner shall award grants to eligible 
215.22 	organizations for the purpose of providing workforce development and training 
215.23 	opportunities to economically disadvantaged or at-risk youth ages 14 to 24.
215.24 		Subd. 2.Definitions. For purposes of this section:
215.25 	(1) "eligible organization" or "eligible applicant" means a local government unit, 
215.26 	nonprofit organization, community action agency, or a public school district; 
215.27 	(2) "at-risk youth" means youth classified as at-risk under section 116L.56, 
215.28 	subdivision 2; and
215.29 	(3) "economically disadvantaged" means youth who are economically disadvantaged 
215.30 	as defined in United States Code, title 29, section 1503.
215.31 		Subd. 3.Competitive grant awards. (a) In awarding competitive grants, priority 
215.32 	shall be given to programs that:
215.33 	(1) provide students with information about education and training requirements for 
215.34 	careers in high-growth, in-demand occupations;
216.1 	(2) serve youth from communities of color who are under represented in the 
216.2 	workforce; or
216.3 	(3) serve youth with disabilities.
216.4 	(b) Eligible organizations must have demonstrated effectiveness in administering 
216.5 	youth workforce programs and must leverage nonstate or private sector funds.
216.6 	(c) New eligible applicants must be youth-serving organizations with significant 
216.7 	capacity and demonstrable youth development experience and outcomes to operate a 
216.8 	youth workforce development project.
216.9 	(d) If a program is not operated by a local unit of government or a workforce 
216.10 	development board, the grant recipient must coordinate the program with the local 
216.11 	workforce development board.
216.12 		Subd. 4.Reports. Each grant recipient shall report to the commissioner in a format 
216.13 	to be determined by commissioner.

216.14 	Sec. 10. Minnesota Statutes 2014, section 116L.99, is amended to read:
216.15 	116L.99 WOMEN AND HIGH-WAGE, HIGH-DEMAND, 
216.16 	NONTRADITIONAL JOBS GRANT PROGRAM.
216.17 		Subdivision 1.Definitions. (a) For the purpose of this section, the following terms 
216.18 	have the meanings given.
216.19 	(b) "Commissioner" means the commissioner of employment and economic 
216.20 	development.
216.21 	(c) ''Eligible organization'' includes, but is not limited to:
216.22 	(1) community-based organizations experienced in serving women;
216.23 	(2) employers;
216.24 	(3) business and trade associations;
216.25 	(4) labor unions and employee organizations;
216.26 	(5) registered apprenticeship programs;
216.27 	(6) secondary and postsecondary education institutions located in Minnesota; and
216.28 	(7) workforce and economic development agencies.
216.29 	(d) "High-wage, high-demand" means occupations that represent at least 0.1 percent 
216.30 	of total employment in the base year, have an annual median salary which is higher than 
216.31 	the average for the current year, and are projected to have more total openings as a share 
216.32 	of employment than the average.
216.33 	(e) "Low-income" means income less than 200 percent of the federal poverty 
216.34 	guideline adjusted for a family size of four.
217.1 	(f) "Nontraditional occupations'' means those occupations in which women make 
217.2 	up less than 25 percent of the workforce as defined under United States Code, title 20, 
217.3 	section 2302.
217.4 	(g) "Registered apprenticeship program'' means a program registered under United 
217.5 	States Code, title 29, section 50.
217.6 	(h) "STEM" means science, technology, engineering, and math.
217.7 	(i) "Women of color" means females age 18 and older who are American Indian, 
217.8 	Asian, Black, or Hispanic.
217.9 	(j) "Girls of color" means females under age 18 who are American Indian, Asian, 
217.10 	Black, or Hispanic.
217.11 		Subd. 2.Grant program. The commissioner shall establish the women and 
217.12 	high-wage, high-demand, nontraditional jobs grant program to increase the number of 
217.13 	women in high-wage, high-demand, nontraditional occupations. The commissioner shall 
217.14 	make grants to eligible organizations for programs that encourage and assist women to enter 
217.15 	high-wage, high-demand, nontraditional occupations including but not limited to those in 
217.16 	the skilled trades, science, technology, engineering, and math (STEM) STEM occupations.
217.17 	The commissioner must give priority to programs that encourage and assist women of color 
217.18 	to enter high-wage, high-demand, nontraditional occupations and STEM occupations.
217.19 		Subd. 3.Use of funds. (a) Grant funds awarded under this section may be used for:
217.20 	(1) recruitment, preparation, placement, and retention of women, including women 
217.21 	of color, low-income women and women over 50 years old, in registered apprenticeships, 
217.22 	postsecondary education programs, on-the-job training, and permanent employment in 
217.23 	high-wage, high-demand, nontraditional occupations;
217.24 	(2) secondary or postsecondary education or other training to prepare women 
217.25 	to succeed in high-wage, high-demand, nontraditional occupations. Activities under 
217.26 	this clause may be conducted by the grantee or in collaboration with another institution, 
217.27 	including but not limited to a public or private secondary or postsecondary school;
217.28 	(3) innovative, hands-on, best practices that stimulate interest in high-wage, 
217.29 	high-demand, nontraditional occupations among girls, increase awareness among 
217.30 	girls about opportunities in high-wage, high-demand, nontraditional occupations, or 
217.31 	increase access to secondary programming leading to jobs in high-wage, high-demand, 
217.32 	nontraditional occupations. Best practices include but are not limited to mentoring, 
217.33 	internships, or apprenticeships for girls in high-wage, high-demand, nontraditional 
217.34 	occupations;
218.1 	(4) training and other staff development for job seeker counselors and Minnesota 
218.2 	family investment program (MFIP) caseworkers on opportunities in high-wage, 
218.3 	high-demand, nontraditional occupations;
218.4 	(5) incentives for employers and sponsors of registered apprenticeship programs 
218.5 	to retain women in high-wage, high-demand, nontraditional occupations for more than 
218.6 	one year;
218.7 	(6) training and technical assistance for employers to create a safe and healthy 
218.8 	workplace environment designed to retain and advance women, including best practices 
218.9 	for addressing sexual harassment, and to overcome gender inequity among employers 
218.10 	and registered apprenticeship programs;
218.11 	(7) public education and outreach activities to overcome stereotypes about women 
218.12 	in high-wage, high-demand, nontraditional occupations, including the development of 
218.13 	educational and marketing materials; and
218.14 	(8) services to support for women in high-wage, high-demand, nontraditional 
218.15 	occupations including but not limited to assistance with balancing work responsibilities; 
218.16 	skills training and education; family caregiving; financial assistance for child care, 
218.17 	transportation, and safe and stable housing; workplace issues resolution; and access to 
218.18 	advocacy assistance and services; and
218.19 	(9) recruitment, participation, and support of girls of color in approved training 
218.20 	programs or a valid apprenticeship program subject to section 181A.07, subdivision 7.
218.21 	(b) Grant applications must include detailed information about how the applicant 
218.22 	plans to:
218.23 	(1) increase women's participation in high-wage, high-demand occupations in which 
218.24 	women are currently underrepresented in the workforce;
218.25 	(2) comply with the requirements under subdivision 3; and
218.26 	(3) use grant funds in conjunction with funding from other public or private 
218.27 	sources.; and
218.28 	(4) collaborate with existing, successful programs for training, education, 
218.29 	recruitment, preparation, placement, and retention of women of color in high-wage, 
218.30 	high-demand, nontraditional occupations and STEM occupations.
218.31 	(c) In awarding grants under this subdivision, the commissioner shall give priority 
218.32 	to eligible organizations:
218.33 	(1) with demonstrated success in recruiting and preparing women, especially 
218.34 	low-income women, women of color, and women over 50 years old, for high-wage, 
218.35 	high-demand, nontraditional occupations; and
218.36 	(2) that leverage additional public and private resources.
219.1 	(d) At least 50 percent of total grant funds must be awarded to programs providing 
219.2 	services and activities targeted to low-income women and women of color.
219.3 	(e) The commissioner of employment and economic development in conjunction 
219.4 	with the commissioner of labor and industry shall monitor the use of funds under this 
219.5 	section, collect and compile information on the activities of other state agencies and public 
219.6 	or private entities that have purposes similar to those under this section, and identify other 
219.7 	public and private funding available for these purposes.
219.8 	(f) By January 15, 2019, and each January 15 thereafter, the commissioner must 
219.9 	submit a report to the chairs and ranking minority members of the committees of the 
219.10 	house of representatives and the senate having jurisdiction over workforce development 
219.11 	that details the use of grant funds. If data is available, the report must contain data that is 
219.12 	disaggregated by race, cultural groups, family income, age, geographical location, migrant 
219.13 	or foreign immigrant status, primary language, whether the participant is an English 
219.14 	learner under Minnesota Statutes, section 124D.59, disability, and status of homelessness.

219.15 	Sec. 11. REQUIREMENTS FOR GRANTS TO INDIVIDUALLY SPECIFIED 
219.16 	RECIPIENTS.
 219.17 	(a) Application. This section applies to any grant funded under this act where the 
219.18 	recipient of the grant is individually specified in this act. The commissioner serving as the 
219.19 	fiscal agent for the grant must ensure compliance with the requirements of this section, and 
219.20 	all applicable requirements under existing law, including applicable grants management 
219.21 	policies and procedures established by the Office of Grants Management.
219.22 	(b) Prerequisites. Before any funding is provided to the grant recipient, the 
219.23 	recipient must provide the fiscal agent with a description of the following information in 
219.24 	a grant application:
219.25 	(1) the purpose of the grant, including goals, priorities, and measurable outcomes;
219.26 	(2) eligibility requirements for individuals who will be served by the grant program;
219.27 	(3) the proposed geographic service areas for individuals served by the grant; and
219.28 	(4) the reporting requirements.
219.29 	These requirements are in addition to any requirements under existing laws and policies.
219.30 	(c) Financial Review. Office of Grants Management Operating Policy and 
219.31 	Procedure number 08-06, titled "Policy on the Financial Review of Nongovernmental 
219.32 	Organizations" applies in pertinent part to all grants covered by paragraph (a).
219.33 	(d) Reporting to Fiscal Agent. In addition to meeting any reporting requirements 
219.34 	included in the grant agreement, grant recipients subject to this section must provide the 
219.35 	following information to the commissioner serving as fiscal agent:
220.1 	(1) a detailed accounting of the use of any grant proceeds;
220.2 	(2) a description of program outcomes to date, including performance measured 
220.3 	against indicators specified in the grant agreement, including, but not limited to, job 
220.4 	creation, employment activity, wage information, business formation or expansion, and 
220.5 	academic performance; and
220.6 	(3) the portion of the grant, if any, spent on the recipient's operating expenses.
220.7 	Grant recipients must report the information required under this paragraph to the fiscal 
220.8 	agent within one year after receiving any portion of the grant, annually thereafter, and 
220.9 	within 30 days following the use of all funds provided under the grant.
220.10 	(e) Reporting to Legislature. Beginning January 15, 2017, a commissioner serving 
220.11 	as a fiscal agent for a grant subject to this section must submit a report containing the 
220.12 	information provided by the grant recipients to the chairs and ranking minority members 
220.13 	of the legislative committees and budget divisions with jurisdiction over the agency 
220.14 	serving as fiscal agent for the grant. The report submitted under this section must also 
220.15 	include the commissioner's summary of the use of grant proceeds, and an analysis of 
220.16 	the grant recipients' success in meeting the goals, priorities, and measurable outcomes 
220.17 	specified for the grant. An updated version of this report must be submitted on January 
220.18 	15 of each succeeding year until January 15 in the year following the date when all of 
220.19 	the grant funds have been spent.

220.20 	Sec. 12. ETHNIC COUNCIL REVIEW.
 220.21 	The commissioners of each agency appropriated money in this article may consult 
220.22 	with the four ethnic councils under Minnesota Statutes, sections 3.922 and 15.0145, 
220.23 	regarding implementation of the programs funded under this article. Any request for 
220.24 	proposals developed by a state agency as a result of this article may be reviewed by the 
220.25 	four ethnic councils prior to public submission.

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

220.27 	ARTICLE 13
220.28 	STATE DEPARTMENTS AND VETERANS

220.29	Section 1. APPROPRIATIONS.
 	
220.30 	The sums shown in the columns marked "Appropriations" are added to the 
220.31 	appropriations in Laws 2015, chapter 77, article 1, to the agencies and for the purposes 
220.32 	specified in this article. The appropriations are from the general fund or another named 
220.33 	fund. The figures "2016" and "2017" used in this article mean that the addition to the 
221.1 	appropriation listed under them are available for the fiscal year ending June 30, 2016, or 
221.2 	June 30, 2017, respectively. Supplemental appropriations for the fiscal year ending June 
221.3 	30, 2016, are effective the day following final enactment.

221.4				APPROPRIATIONS
	
221.5				Available for the Year
	
221.6				Ending June 30
	
221.7					2016
		2017

221.8	Sec. 2. ADMINISTRATION

221.9	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	1,198,000

221.10
221.11	Subd. 2.Government and Citizen Services - 
Olmstead Plan Increased Capacity
 		-0-
		148,000
	
221.12 	For administrative costs to expand services 
221.13 	provided under the Olmstead Plan serving 
221.14 	people with disabilities.

221.15	Subd. 3.Fiscal Agent - Veterans' Voices
 		-0-
		50,000
	
221.16 	For a grant to the Association of Minnesota 
221.17 	Public Educational Radio Stations for 
221.18 	statewide programming to promote the 
221.19 	Veterans' Voices program. This is a onetime 
221.20 	appropriation.

221.21
221.22	Subd. 4.Accounting and Procurement 
Software
 		-0-
		1,000,000
	
221.23 	$1,000,000 is to assess, upgrade, and enhance 
221.24 	accounting and procurement software to 
221.25 	facilitate targeted group business utilization 
221.26 	and data reporting. This is a onetime 
221.27 	appropriation and is available until June 30, 
221.28 	2019.

221.29
221.30	Sec. 3.  MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	-0-
	$
	2,018,000	

221.31 	Of this amount, $2,000,000 is for statewide 
221.32 	information technology systems and is 
221.33 	available until June 30, 2018. This is a 
221.34 	onetime appropriation.
222.1 	Of this amount, $18,000 is to the Office 
222.2 	of Economic Analysis for the revenue 
222.3 	uncertainty report under Minnesota Statutes, 
222.4 	section 16A.103, subdivision 1h. The base is 
222.5 	$9,000 each fiscal year beginning in fiscal 
222.6 	year 2018.

222.7	Sec. 4.  REVENUE
 	$
	-0-
	$
	1,333,000	

222.8 	Tax System Management. $500,000 is for 
222.9 	tax refund fraud protection software and 
222.10 	services. 
222.11 	$833,000 is for (1) communication and 
222.12 	outreach; and (2) technology, audit, and 
222.13 	fraud staff.
222.14 	$1,506,000 is added to the base in fiscal year 
222.15 	2018 and $1,506,000 in fiscal year 2019.

222.16	Sec. 5.  AMATEUR SPORTS COMMISSION
 	$
	-0-
	$
	10,000,000
	
222.17 	Mighty Ducks.  For the purposes of making 
222.18 	grants under Minnesota Statutes, section 
222.19 	240A.09, paragraph (b). This appropriation 
222.20 	is a onetime appropriation and is added to 
222.21 	the appropriations in Laws 2015, chapter 77, 
222.22 	article 1, section 18, and Laws 2015, First 
222.23 	Special Session chapter 5, article 1, section 9.

222.24	Sec. 6. HUMANITIES CENTER
 	$
	-0-
	$
	95,000
	
222.25 	To expand education efforts around the 
222.26 	Veterans' Voices program, and to work 
222.27 	with veterans to educate and engage the 
222.28 	community regarding veterans' contributions, 
222.29 	knowledge, skills, and experiences through 
222.30 	the Veterans' Voices program. This is a 
222.31 	onetime appropriation.

223.1
223.2	Sec. 7. MINNESOTA STATE RETIREMENT 
SYSTEM
 	$
	-0-
	$
	3,000,000
	
223.3 	Judges Retirement Plan. In fiscal year 
223.4 	2017 for transfer to the judges' retirement 
223.5 	fund defined in Minnesota Statutes, section 
223.6 	490.123. $6,000,000 each fiscal year 
223.7 	is included in the base and the transfer 
223.8 	continues each fiscal year until the judges 
223.9 	retirement plan reaches 100 percent funding 
223.10 	as determined by an actuarial valuation 
223.11 	prepared under Minnesota Statutes, section 
223.12 	356.214.

223.13	Sec. 8. MILITARY AFFAIRS
 	$
	-0-
	$
	248,000
	
223.14 	Security Improvement; General Support.
223.15 	For payroll costs and contracted costs of 
223.16 	training and testing to provide security at 
223.17 	state-owned Minnesota National Guard 
223.18 	facilities.

223.19	Sec. 9. VETERANS AFFAIRS

223.20	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	700,000

223.21	Subd. 2.Cottages of Anoka
 		-0-
		100,000
	
223.22 	$100,000 is to support nonprofit organizations 
223.23 	in providing rent subsidies for housing for 
223.24 	veterans and their families at the Cottages 
223.25 	of Anoka.

223.26	Subd. 3.State Soldiers Assistance Grant
 		-0-
		200,000
	
223.27 	$200,000 is for the state soldiers assistance 
223.28 	fund, for housing assistance and health 
223.29 	assistance to veterans.

223.30	Subd. 4.Mental Health Study
 		-0-
		150,000
	
223.31 	For the study and report in section 62. This 
223.32 	is a onetime appropriation.

224.1
224.2	Subd. 5.Disabled Veterans Interim Housing 
Study
 		-0-
		250,000
	
224.3 	For the study and report in section 63. This 
224.4 	is a onetime appropriation.

224.5	Sec. 10. PUBLIC SAFETY
 	$
	-0-
	$
	88,000
	
224.6 	$88,000 is for a grant to the Arrowhead 
224.7 	Regional Development Commission to 
224.8 	conduct an assessment of law enforcement 
224.9 	needs for detention facilities in northeast 
224.10 	Minnesota. This is a onetime appropriation.

224.11 	Sec. 11. Minnesota Statutes 2014, section 3.3005, subdivision 3, is amended to read:
224.12 		Subd. 3.State match. If a request to spend federal money is included in the 
224.13 	governor's budget or spending the money is authorized by law but the amount of federal 
224.14 	money received that has been awarded and requires a state match greater than that the 
224.15 	amount that was included in the budget request or authorized by law, the amount federal 
224.16 	funds that have been awarded that requires require an additional state match may be 
224.17 	allotted for expenditure after the requirements of subdivision 5 or 6 are met.

224.18 	Sec. 12. Minnesota Statutes 2014, section 3.3005, subdivision 3b, is amended to read:
224.19 		Subd. 3b.Increase in amount. If a request to spend federal money is included in a 
224.20 	governor's budget request and approved according to subdivision 2 or 5 and the amount of 
224.21 	money available awarded increases after the request is made and authorized, the additional 
224.22 	amount may be allotted for expenditure after a revised request is submitted according to 
224.23 	subdivision 2, or the requirements of subdivision 4, 5, or 6 are met.

224.24 	Sec. 13. Minnesota Statutes 2014, section 3.3005, subdivision 4, is amended to read:
224.25 		Subd. 4.Interim procedures; urgencies. If federal money becomes available 
224.26 	is awarded to the state for expenditure after the deadline in subdivision 2 or while the 
224.27 	legislature is not in session, and the availability of money from that source or for that 
224.28 	purpose or in that fiscal year could not reasonably have been anticipated and included in 
224.29 	the governor's budget request, and an urgency requires that all or part of the money be 
224.30 	allotted encumbered or expended before the legislature reconvenes or prior to the end of 
224.31 	the 20-day period specified in subdivision 2, it may be allotted to a state agency after 
224.32 	the requirements of subdivision 5 are met.

225.1 	Sec. 14. Minnesota Statutes 2014, section 3.3005, subdivision 5, is amended to read:
225.2 		Subd. 5.Legislative Advisory Commission review. Federal money that  is 
225.3 	awarded and becomes available under subdivision 3, 3a, 3b, or 4 may be allotted after 
225.4 	the commissioner of management and budget has submitted the request to the members 
225.5 	of the Legislative Advisory Commission for their review and recommendation for 
225.6 	further review. If a recommendation is not made within ten days, no further review by 
225.7 	the Legislative Advisory Commission is required, and the commissioner shall approve 
225.8 	or disapprove the request. If a recommendation by any member is for further review the 
225.9 	governor shall submit the request to the Legislative Advisory Commission for its review 
225.10 	and recommendation. Failure or refusal of the commission to make a recommendation 
225.11 	promptly is a negative recommendation.

225.12 	Sec. 15. Minnesota Statutes 2014, section 3.3005, subdivision 6, is amended to read:
225.13 		Subd. 6.Interim procedures; nonurgencies. If federal money becomes available 
225.14 	to the state for expenditure after the deadline in subdivision 2 or while the legislature is 
225.15 	not in session, and subdivision 4 does not apply, a request to expend the that federal 
225.16 	money may be submitted by the commissioner of management and budget to members 
225.17 	of the Legislative Advisory Commission for their review and recommendation. This 
225.18 	request must be submitted by the later of October 1 of any year or 100 days before the 
225.19 	start of the next legislative session. If any member of the commission makes a negative 
225.20 	recommendation or a recommendation for further review on a request by October 
225.21 	20 of the same year during the 20-day period beginning the day the commissioner 
225.22 	submits the request, the commissioner shall not approve expenditure of that federal 
225.23 	money. If a request to expend federal money submitted under this subdivision receives 
225.24 	a negative recommendation or a recommendation for further review, the request may 
225.25 	be submitted again under subdivision 2. If the members of the commission make a 
225.26 	positive recommendation or no recommendation, the commissioner shall may approve 
225.27 	or disapprove the request and the federal money may be allotted for expenditure. The 
225.28 	commissioner may submit the request again under subdivision 2 if the request receives a 
225.29 	negative recommendation or a recommendation for further review under this subdivision.

225.30 	Sec. 16. Minnesota Statutes 2014, section 3.3005, is amended by adding a subdivision 
225.31 	to read:
225.32 		Subd. 6a.Withdrawal of commission recommendation. A member of the 
225.33 	commission, with written notice to the commissioner, may withdraw a negative 
225.34 	recommendation or a recommendation for further review within 20 days of making the 
226.1 	recommendation. If all negative recommendations and all recommendations for further 
226.2 	review have been withdrawn, the commissioner may approve the expenditure of the 
226.3 	federal money.

226.4 	Sec. 17. Minnesota Statutes 2014, section 3.3005, is amended by adding a subdivision 
226.5 	to read:
226.6 		Subd. 9.Withdrawal of request. The commissioner of management and budget 
226.7 	may, with written notice, withdraw any request to spend federal money under this section. 
226.8 	The commissioner of an agency requesting to expend federal money under this section 
226.9 	may, with written notice, withdraw any request to spend federal money under this section 
226.10 	that was submitted by the commissioner's agency.

226.11 	Sec. 18. Minnesota Statutes 2014, section 16A.103, is amended by adding a 
226.12 	subdivision to read:
226.13 		Subd. 1h.Revenue uncertainty information. The commissioner shall report 
226.14 	to the legislature within 14 days of a forecast  under subdivision 1 on uncertainty in 
226.15 	Minnesota's general fund revenue projections. The report shall present information on: (1) 
226.16 	the estimated range of forecast error for revenues; and (2) the data and methods used to 
226.17 	construct those measurements.

226.18 	Sec. 19. Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2, is 
226.19 	amended to read:
226.20 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
226.21 	fund revenues and expenditures, the commissioner of management and budget determines 
226.22 	that there will be a positive unrestricted budgetary general fund balance at the close of 
226.23 	the biennium, the commissioner of management and budget must allocate money to the 
226.24 	following accounts and purposes in priority order:
226.25 	(1) the cash flow account established in subdivision 1 until that account reaches 
226.26 	$350,000,000;
226.27 	(2) the budget reserve account established in subdivision 1a until that account 
226.28 	reaches $810,992,000 $1,596,522,000;
226.29 	(3) the amount necessary to increase the aid payment schedule for school district 
226.30 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
226.31 	nearest tenth of a percent without exceeding the amount available and with any remaining 
226.32 	funds deposited in the budget reserve; and
227.1 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
227.2 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
227.3 	123B.75, subdivision 5, by the same amount;.
227.4 	(5) the closed landfill investment fund established in section 115B.421 until 
227.5 	$63,215,000 has been transferred into the account. This clause expires after the entire 
227.6 	amount of the transfer has been made; and
227.7 	(6) the metropolitan landfill contingency action trust account established in section 
227.8 	473.845 until $8,100,000 has been transferred into the account. This clause expires after 
227.9 	the entire amount of the transfer has been made.
227.10 	(b) The amounts necessary to meet the requirements of this section are appropriated 
227.11 	from the general fund within two weeks after the forecast is released or, in the case of 
227.12 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
227.13 	schedules otherwise established in statute.
227.14 	(c) The commissioner of management and budget shall certify the total dollar 
227.15 	amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of 
227.16 	education. The commissioner of education shall increase the aid payment percentage and 
227.17 	reduce the property tax shift percentage by these amounts and apply those reductions to 
227.18 	the current fiscal year and thereafter.

227.19 	Sec. 20. Minnesota Statutes 2015 Supplement, section 16C.073, subdivision 2, is 
227.20 	amended to read:
227.21 		Subd. 2.Purchases. (a) Whenever practicable, a public entity shall:
227.22 	(1) purchase uncoated copy paper, office paper, and printing paper;
227.23 	(2) purchase recycled content copy paper with at least 30 percent postconsumer 
227.24 	material by weight and purchase printing and office paper with at least ten percent 
227.25 	postconsumer material by weight;
227.26 	(3) purchase copy, office, and printing paper which has not been dyed with colors, 
227.27 	excluding pastel colors;
227.28 	(4) purchase recycled content copy, office, and printing paper that is manufactured 
227.29 	using little or no chlorine bleach or chlorine derivatives;
227.30 	(5) use reusable binding materials or staples and bind documents by methods that do 
227.31 	not use glue;
227.32 	(6) use soy-based inks;
227.33 	(7) purchase printer or duplication cartridges that:
227.34 	(i) have ten percent postconsumer material; or
227.35 	(ii) are purchased as remanufactured; or
228.1 	(iii) are backed by a vendor-offered program that will take back the printer cartridges 
228.2 	after their useful life, ensure that the cartridge is recycled, and comply with the definition 
228.3 	of recycling in section 115A.03, subdivision 25b;
228.4 	(7) (8) produce reports, publications, and periodicals that are readily recyclable; and
228.5 	(8) (9) purchase paper which has been made on a paper machine located in Minnesota.
228.6 	(b) Paragraph (a), clause (1), does not apply to coated paper that is made with at 
228.7 	least 50 percent postconsumer material.
228.8 	(c) A public entity shall print documents on both sides of the paper where commonly 
228.9 	accepted publishing practices allow.

228.10 	Sec. 21. Minnesota Statutes 2014, section 16E.0466, is amended to read:
228.11 	16E.0466 STATE AGENCY TECHNOLOGY PROJECTS.
228.12 	(a) Every state agency with an information or telecommunications project must 
228.13 	consult with the Office of MN.IT Services to determine the information technology cost 
228.14 	of the project. Upon agreement between the commissioner of a particular agency and 
228.15 	the chief information officer, the agency must transfer the information technology cost 
228.16 	portion of the project to the Office of MN.IT Services. Service level agreements must 
228.17 	document all project-related transfers under this section. Those agencies specified in 
228.18 	section 16E.016, paragraph (d), are exempt from the requirements of this section.
228.19 	(b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating 
228.20 	balance appropriated to a state agency may be transferred to the information and 
228.21 	telecommunications technology systems and services account for the information 
228.22 	technology cost of a specific project, subject to the review of the Legislative Advisory 
228.23 	Commission, under section 16E.21, subdivision 3.

228.24 	Sec. 22. Minnesota Statutes 2014, section 16E.21, subdivision 2, is amended to read:
228.25 		Subd. 2.Charges. Upon agreement of the participating agency, the Office of 
228.26 	MN.IT Services may collect a charge or receive a fund transfer under section 16E.0466 
228.27 	for purchases of information and telecommunications technology systems and services 
228.28 	by state agencies and other governmental entities through state contracts for purposes 
228.29 	described in subdivision 1. Charges collected under this section must be credited to the 
228.30 	information and telecommunications technology systems and services account.

228.31 	Sec. 23. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision 
228.32 	to read:
229.1 		Subd. 3.Legislative Advisory Commission review. (a) No funds may be 
229.2 	transferred to the information and telecommunications technology systems and services 
229.3 	account under subdivision 2 or section 16E.0466 until the commissioner of management 
229.4 	and budget has submitted the proposed transfer to the members of the Legislative 
229.5 	Advisory Commission for review and recommendation. If the commission makes a 
229.6 	positive recommendation or no recommendation, or if the commission has not reviewed 
229.7 	the request within 20 days after the date the request to transfer funds was submitted, 
229.8 	the commissioner of management and budget may approve the request to transfer the 
229.9 	funds. If the commission recommends further review of a request to transfer funds, the 
229.10 	commissioner shall provide additional information to the commission. If the commission 
229.11 	makes a negative recommendation on the request within ten days of receiving further 
229.12 	information, the commissioner shall not approve the fund transfer. If the commission 
229.13 	makes a positive recommendation or no recommendation within ten days of receiving 
229.14 	further information, the commissioner may approve the fund transfer.
229.15 	(b) A recommendation of the commission must be made at a meeting of the 
229.16 	commission unless a written recommendation is signed by all members entitled to vote on 
229.17 	the item as specified in section 3.30, subdivision 2. A recommendation of the commission 
229.18 	must be made by a majority of the commission.

229.19 	Sec. 24. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision 
229.20 	to read:
229.21 		Subd. 4.Lapse. Any portion of any receipt credited to the information and 
229.22 	telecommunications technology systems and services account from a fund transfer under 
229.23 	subdivision 2 that remains unexpended and unencumbered at the close of the fiscal year 
229.24 	four years after the funds were received in the account shall lapse to the fund from which 
229.25 	the receipt was transferred.

229.26 	Sec. 25. Minnesota Statutes 2014, section 16E.21, is amended by adding a subdivision 
229.27 	to read:
229.28 		Subd. 5.Report. The chief information officer shall report by September 15 of 
229.29 	each odd-numbered year to the chairs and ranking minority members of the legislative 
229.30 	committees and divisions with jurisdiction over the Office of MN.IT Services regarding 
229.31 	the receipts credited to the account. The report must include a description of projects 
229.32 	funded through the information and telecommunications technology systems and services 
229.33 	account and each project's current status.

230.1 	Sec. 26. Minnesota Statutes 2014, section 116J.8737, subdivision 2, is amended to read:
230.2 		Subd. 2.Certification of qualified small businesses. (a) Businesses may apply 
230.3 	to the commissioner for certification as a qualified small business or qualified greater 
230.4 	Minnesota small business for a calendar year. The application must be in the form 
230.5 	and be made under the procedures specified by the commissioner, accompanied by an 
230.6 	application fee of $150. Application fees are deposited in the small business investment 
230.7 	tax credit administration account in the special revenue fund. The application for 
230.8 	certification for 2010 must be made available on the department's Web site by August 1, 
230.9 	2010. Applications for subsequent years' certification must be made available on the 
230.10 	department's Web site by November 1 of the preceding year.
230.11 	(b) Within 30 days of receiving an application for certification under this subdivision, 
230.12 	the commissioner must either certify the business as satisfying the conditions required 
230.13 	of a qualified small business or qualified greater Minnesota small business, request 
230.14 	additional information from the business, or reject the application for certification. If 
230.15 	the commissioner requests additional information from the business, the commissioner 
230.16 	must either certify the business or reject the application within 30 days of receiving the 
230.17 	additional information. If the commissioner neither certifies the business nor rejects 
230.18 	the application within 30 days of receiving the original application or within 30 days of 
230.19 	receiving the additional information requested, whichever is later, then the application is 
230.20 	deemed rejected, and the commissioner must refund the $150 application fee. A business 
230.21 	that applies for certification and is rejected may reapply.
230.22 	(c) To receive certification as a qualified small business, a business must satisfy 
230.23 	all of the following conditions:
230.24 	(1) the business has its headquarters in Minnesota;
230.25 	(2) at least: (i) 51 percent of the business's employees are employed in Minnesota, 
230.26 	and; (ii) 51 percent of the business's total payroll is paid or incurred in the state; and (iii) 
230.27 	51 percent of the total value of all contractual agreements to which the business is a party 
230.28 	in connection with its primary business activity is for services performed under contract in 
230.29 	Minnesota, unless the business obtains a waiver under paragraph (i);
230.30 	(3) the business is engaged in, or is committed to engage in, innovation in Minnesota 
230.31 	in one of the following as its primary business activity:
230.32 	(i) using proprietary technology to add value to a product, process, or service in a 
230.33 	qualified high-technology field;
230.34 	(ii) researching or developing a proprietary product, process, or service in a qualified 
230.35 	high-technology field;
231.1 	(iii) researching or developing a proprietary product, process, or service in the fields 
231.2 	of agriculture, tourism, forestry, mining, manufacturing, or transportation; or
231.3 	(iv) researching, developing, or producing a new proprietary technology for use in 
231.4 	the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
231.5 	(4) other than the activities specifically listed in clause (3), the business is not 
231.6 	engaged in real estate development, insurance, banking, lending, lobbying, political 
231.7 	consulting, information technology consulting, wholesale or retail trade, leisure, 
231.8 	hospitality, transportation, construction, ethanol production from corn, or professional 
231.9 	services provided by attorneys, accountants, business consultants, physicians, or health 
231.10 	care consultants;
231.11 	(5) the business has fewer than 25 employees;
231.12 	(6) the business must pay its employees annual wages of at least 175 percent of the 
231.13 	federal poverty guideline for the year for a family of four and must pay its interns annual 
231.14 	wages of at least 175 percent of the federal minimum wage used for federally covered 
231.15 	employers, except that this requirement must be reduced proportionately for employees 
231.16 	and interns who work less than full-time, and does not apply to an executive, officer, or 
231.17 	member of the board of the business, or to any employee who owns, controls, or holds 
231.18 	power to vote more than 20 percent of the outstanding securities of the business;
231.19 	(7) the business has (i) not been in operation for more than ten years, or (ii) not 
231.20 	been in operation for more than 20 years if the business is engaged in the research, 
231.21 	development, or production of medical devices or pharmaceuticals for which United 
231.22 	States Food and Drug Administration approval is required for use in the treatment or 
231.23 	diagnosis of a disease or condition;
231.24 	(8) the business has not previously received private equity investments of more 
231.25 	than $4,000,000;
231.26 	(9) the business is not an entity disqualified under section 80A.50, paragraph (b), 
231.27 	clause (3); and
231.28 	(10) the business has not issued securities that are traded on a public exchange.
231.29 	(d) In applying the limit under paragraph (c), clause (5), the employees in all members 
231.30 	of the unitary business, as defined in section 290.17, subdivision 4, must be included.
231.31 	(e) In order for a qualified investment in a business to be eligible for tax credits:
231.32 	(1) the business must have applied for and received certification for the calendar 
231.33 	year in which the investment was made prior to the date on which the qualified investment 
231.34 	was made;
231.35 	(2) the business must not have issued securities that are traded on a public exchange;
232.1 	(3) the business must not issue securities that are traded on a public exchange within 
232.2 	180 days after the date on which the qualified investment was made; and
232.3 	(4) the business must not have a liquidation event within 180 days after the date on 
232.4 	which the qualified investment was made.
232.5 	(f) The commissioner must maintain a list of qualified small businesses and qualified 
232.6 	greater Minnesota businesses certified under this subdivision for the calendar year and 
232.7 	make the list accessible to the public on the department's Web site.
232.8 	(g) For purposes of this subdivision, the following terms have the meanings given:
232.9 	(1) "qualified high-technology field" includes aerospace, agricultural processing, 
232.10 	renewable energy, energy efficiency and conservation, environmental engineering, food 
232.11 	technology, cellulosic ethanol, information technology, materials science technology, 
232.12 	nanotechnology, telecommunications, biotechnology, medical device products, 
232.13 	pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields;
232.14 	(2) "proprietary technology" means the technical innovations that are unique and 
232.15 	legally owned or licensed by a business and includes, without limitation, those innovations 
232.16 	that are patented, patent pending, a subject of trade secrets, or copyrighted; and
232.17 	(3) "greater Minnesota" means the area of Minnesota located outside of the 
232.18 	metropolitan area as defined in section 473.121, subdivision 2.
232.19 	(h) To receive certification as a qualified greater Minnesota business, a business must 
232.20 	satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:
232.21 	(1) the business has its headquarters in greater Minnesota; and
232.22 	(2) at least: (i) 51 percent of the business's employees are employed in greater 
232.23 	Minnesota, and; (ii) 51 percent of the business's total payroll is paid or incurred in greater 
232.24 	Minnesota.; and (iii) 51 percent of the total value of all contractual agreements to which 
232.25 	the business is a party in connection with its primary business activity is for services 
232.26 	performed under contract in greater Minnesota, unless the business obtains a waiver 
232.27 	under paragraph (i).
232.28 	(i) The commissioner must exempt a business from the requirement under paragraph 
232.29 	(c), clause (2), item (iii), if the business certifies to the commissioner that the services 
232.30 	required under a contract in connection with the primary business activity cannot be 
232.31 	performed in Minnesota if the business otherwise qualifies as a qualified small business, 
232.32 	or in greater Minnesota if the business otherwise qualifies as a qualified greater Minnesota 
232.33 	business. The business must submit the certification required under this paragraph every 
232.34 	six months from the month the exemption was granted. The exemption allowed under this 
232.35 	paragraph must be submitted in a form and manner prescribed by the commissioner.

233.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
233.2 	December 31, 2015.

233.3 	Sec. 27. Minnesota Statutes 2014, section 116J.8737, subdivision 5, is amended to read:
233.4 		Subd. 5.Credit allowed. (a)(1) A qualified investor or qualified fund is eligible 
233.5 	for a credit equal to 25 percent of the qualified investment in a qualified small business. 
233.6 	Investments made by a pass-through entity qualify for a credit only if the entity is a 
233.7 	qualified fund. The commissioner must not allocate more than $15,000,000 in credits to 
233.8 	qualified investors or qualified funds for taxable years beginning after December 31, 2013, 
233.9 	and before January 1, 2017, and must not allocate more than $10,000,000 in credits to 
233.10 	qualified investors or qualified funds for taxable years beginning after December 31, 2016, 
233.11 	and before January 1, 2018; and
233.12 	(2) for taxable years beginning after December 31, 2014, and before January 1, 2017
233.13 	2018, $7,500,000 50 percent must be allocated to credits for qualifying investments in 
233.14 	qualified greater Minnesota businesses and minority- or women-owned qualified small 
233.15 	businesses in Minnesota. Any portion of a taxable year's credits that is reserved for 
233.16 	qualifying investments in greater Minnesota businesses and minority- or women-owned 
233.17 	qualified small businesses in Minnesota that is not allocated by September 30 of the taxable 
233.18 	year is available for allocation to other credit applications beginning on October 1. Any 
233.19 	portion of a taxable year's credits that is not allocated by the commissioner does not cancel 
233.20 	and may be carried forward to subsequent taxable years until all credits have been allocated.
233.21 	(b) The commissioner may not allocate more than a total maximum amount in credits 
233.22 	for a taxable year to a qualified investor for the investor's cumulative qualified investments 
233.23 	as an individual qualified investor and as an investor in a qualified fund; for married 
233.24 	couples filing joint returns the maximum is $250,000, and for all other filers the maximum 
233.25 	is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits 
233.26 	over all taxable years for qualified investments in any one qualified small business.
233.27 	(c) The commissioner may not allocate a credit to a qualified investor either as 
233.28 	an individual qualified investor or as an investor in a qualified fund if, at the time the 
233.29 	investment is proposed:
233.30 	(1) the investor is an officer or principal of the qualified small business; or
233.31 	(2) the investor, either individually or in combination with one or more members of 
233.32 	the investor's family, owns, controls, or holds the power to vote 20 percent or more of 
233.33 	the outstanding securities of the qualified small business.
233.34 	A member of the family of an individual disqualified by this paragraph is not eligible for a 
233.35 	credit under this section. For a married couple filing a joint return, the limitations in this 
234.1 	paragraph apply collectively to the investor and spouse. For purposes of determining the 
234.2 	ownership interest of an investor under this paragraph, the rules under section 267(c) and 
234.3 	267(e) of the Internal Revenue Code apply.
234.4 	(d) Applications for tax credits for 2010 must be made available on the department's 
234.5 	Web site by September 1, 2010, and the department must begin accepting applications 
234.6 	by September 1, 2010. Applications for subsequent years must be made available by 
234.7 	November 1 of the preceding year.
234.8 	(e) Qualified investors and qualified funds must apply to the commissioner for tax 
234.9 	credits. Tax credits must be allocated to qualified investors or qualified funds in the order 
234.10 	that the tax credit request applications are filed with the department. The commissioner 
234.11 	must approve or reject tax credit request applications within 15 days of receiving the 
234.12 	application. The investment specified in the application must be made within 60 days of 
234.13 	the allocation of the credits. If the investment is not made within 60 days, the credit 
234.14 	allocation is canceled and available for reallocation. A qualified investor or qualified fund 
234.15 	that fails to invest as specified in the application, within 60 days of allocation of the 
234.16 	credits, must notify the commissioner of the failure to invest within five business days of 
234.17 	the expiration of the 60-day investment period.
234.18 	(f) All tax credit request applications filed with the department on the same day must 
234.19 	be treated as having been filed contemporaneously. If two or more qualified investors or 
234.20 	qualified funds file tax credit request applications on the same day, and the aggregate 
234.21 	amount of credit allocation claims exceeds the aggregate limit of credits under this section 
234.22 	or the lesser amount of credits that remain unallocated on that day, then the credits must 
234.23 	be allocated among the qualified investors or qualified funds who filed on that day on a 
234.24 	pro rata basis with respect to the amounts claimed. The pro rata allocation for any one 
234.25 	qualified investor or qualified fund is the product obtained by multiplying a fraction, 
234.26 	the numerator of which is the amount of the credit allocation claim filed on behalf of 
234.27 	a qualified investor and the denominator of which is the total of all credit allocation 
234.28 	claims filed on behalf of all applicants on that day, by the amount of credits that remain 
234.29 	unallocated on that day for the taxable year.
234.30 	(g) A qualified investor or qualified fund, or a qualified small business acting on their 
234.31 	behalf, must notify the commissioner when an investment for which credits were allocated 
234.32 	has been made, and the taxable year in which the investment was made. A qualified fund 
234.33 	must also provide the commissioner with a statement indicating the amount invested by 
234.34 	each investor in the qualified fund based on each investor's share of the assets of the 
234.35 	qualified fund at the time of the qualified investment. After receiving notification that the 
234.36 	investment was made, the commissioner must issue credit certificates for the taxable year 
235.1 	in which the investment was made to the qualified investor or, for an investment made by 
235.2 	a qualified fund, to each qualified investor who is an investor in the fund. The certificate 
235.3 	must state that the credit is subject to revocation if the qualified investor or qualified 
235.4 	fund does not hold the investment in the qualified small business for at least three years, 
235.5 	consisting of the calendar year in which the investment was made and the two following 
235.6 	years. The three-year holding period does not apply if:
235.7 	(1) the investment by the qualified investor or qualified fund becomes worthless 
235.8 	before the end of the three-year period;
235.9 	(2) 80 percent or more of the assets of the qualified small business is sold before 
235.10 	the end of the three-year period;
235.11 	(3) the qualified small business is sold before the end of the three-year period;
235.12 	(4) the qualified small business's common stock begins trading on a public exchange 
235.13 	before the end of the three-year period; or
235.14 	(5) the qualified investor dies before the end of the three-year period.
235.15 	(h) The commissioner must notify the commissioner of revenue of credit certificates 
235.16 	issued under this section.

235.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
235.18 	December 31, 2016.

235.19 	Sec. 28. Minnesota Statutes 2014, section 116J.8737, subdivision 12, is amended to 
235.20 	read:
235.21 		Subd. 12.Sunset. This section expires for taxable years beginning after December 
235.22 	31, 2016 2017, except that reporting requirements under subdivision 6 and revocation 
235.23 	of credits under subdivision 7 remain in effect through 2018 2019 for qualified 
235.24 	investors and qualified funds, and through 2020 2021 for qualified small businesses, 
235.25 	reporting requirements under subdivision 9 remain in effect through 2021 2022, and the 
235.26 	appropriation in subdivision 11 remains in effect through 2020 2021.

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

235.28 	Sec. 29. Minnesota Statutes 2014, section 154.001, subdivision 2, is amended to read:
235.29 		Subd. 2.Board of Barber Examiners. (a) A Board of Barber Examiners is 
235.30 	established to consist of three four barber members and one public member, as defined in 
235.31 	section 214.02, appointed by the governor.
235.32 	(b) The barber members shall be persons who have practiced as registered barbers in 
235.33 	this state for at least five years immediately prior to their appointment; shall be graduates 
236.1 	from the 12th grade of a high school or have equivalent education, and shall have 
236.2 	knowledge of the matters to be taught in registered barber schools, as set forth in section 
236.3 	154.07. One of the barber members shall be a member of, or recommended by, a union of 
236.4 	journeymen barbers that has existed at least two years, and one barber member shall be a 
236.5 	member of, or recommended by, a professional organization of barbers.

236.6 	EFFECTIVE DATE. This section is effective August 1, 2016.

236.7 	Sec. 30. Minnesota Statutes 2014, section 154.002, is amended to read:
236.8 	154.002 OFFICERS; COMPENSATION; FEES; EXPENSES.
236.9 	The Board of Barber Examiners shall annually elect a chair and secretary. It shall 
236.10 	adopt and use a common seal for the authentication of its orders and records. The board 
236.11 	shall appoint an executive secretary or enter into an interagency agreement to procure the 
236.12 	services of an executive secretary. The executive secretary shall not be a member of the 
236.13 	board and shall be in the unclassified civil service. The position of executive secretary 
236.14 	may be a part-time position.
236.15 	The executive secretary shall keep a record of all proceedings of the board. The 
236.16 	expenses of administering this chapter shall be paid from the appropriations made to 
236.17 	the Board of Barber Examiners.
236.18 	Each member of the board shall take the oath provided by law for public officers.
236.19 	A majority of the board, in meeting assembled, may perform and exercise all the 
236.20 	duties and powers devolving upon the board.
236.21 	The members of the board shall receive compensation, as provided in section 
236.22 	214.09, for each day spent on board activities, but not to exceed 20 days in any calendar 
236.23 	month nor 100 days in any calendar year.
236.24 	The board shall have authority to employ such inspectors, clerks, deputies, and other 
236.25 	assistants as it may deem necessary to carry out the provisions of this chapter.

236.26 	EFFECTIVE DATE. This section is effective August 1, 2016.

236.27 	Sec. 31. Minnesota Statutes 2015 Supplement, section 154.003, is amended to read:
236.28 	154.003 FEES.
236.29 	(a) The fees collected, as required in this chapter, chapter 214, and the rules of the 
236.30 	board, shall be paid to the board. The board shall deposit the fees in the general fund 
236.31 	in the state treasury.
236.32 	(b) The board shall charge the following fees:
236.33 	(1) examination and certificate, registered barber, $85;
237.1 	(2) retake of written examination, registered barber, $10;
237.2 	(3) examination and certificate, apprentice, $80;
237.3 	(4) retake of written examination, apprentice, $10;
237.4 	(5) (3) examination and certificate, instructor, $180;
237.5 	(6) (4) certificate, instructor, $65;
237.6 	(7) (5) temporary teacher or apprentice permit, $80;
237.7 	(8) (6) temporary registered barber, military, $85;
237.8 	(9) (7) temporary barber instructor, military, $180;
237.9 	(10) temporary apprentice barber, military, $80;
237.10 	(11) (8) renewal of registration, registered barber, $80;
237.11 	(12) renewal of registration, apprentice, $70;
237.12 	(13) (9) renewal of registration, instructor, $80;
237.13 	(14) (10) renewal of temporary teacher permit, $65;
237.14 	(15) (11) student permit, $45;
237.15 	(16) (12) renewal of student permit, $25;
237.16 	(17) (13) initial shop registration, $85;
237.17 	(18) (14) initial school registration, $1,030;
237.18 	(19) (15) renewal shop registration, $85;
237.19 	(20) (16) renewal school registration, $280;
237.20 	(21) (17) restoration of registered barber registration, $95;
237.21 	(22) restoration of apprentice registration, $90;
237.22 	(23) (18) restoration of shop registration, $105;
237.23 	(24) (19) change of ownership or location, $55;
237.24 	(25) (20) duplicate registration, $40;
237.25 	(26) (21) home study course, $75;
237.26 	(27) (22) letter of registration verification, $25; and
237.27 	(28) (23) reinspection, $100.

237.28 	EFFECTIVE DATE. This section is effective August 1, 2016.

237.29 	Sec. 32. Minnesota Statutes 2014, section 154.01, is amended to read:
237.30 	154.01 REGISTRATION MANDATORY.
237.31 	(a) The registration of the practice of barbering serves the public health and safety of 
237.32 	the people of the state of Minnesota by ensuring that individuals seeking to practice the 
237.33 	profession of barbering are appropriately trained in the use of the chemicals, tools, and 
238.1 	implements of barbering and demonstrate the skills necessary to conduct barber services 
238.2 	in a safe, sanitary, and appropriate environment required for infection control.
238.3 	(a) (b) No person shall practice, offer to practice, or attempt to practice barbering 
238.4 	without a current certificate of registration as a registered barber, issued pursuant to 
238.5 	provisions of sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162, 154.19 to 
238.6 	154.21, and 154.24 to 154.26154.28 by the Board of Barber Examiners.
238.7 	(b) No person shall serve, offer to serve, or attempt to serve as an apprentice under a 
238.8 	registered barber without a current certificate of registration as a registered apprentice or 
238.9 	temporary apprentice permit issued pursuant to provisions of sections 154.001, 154.002, 
238.10 	154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 by the Board of 
238.11 	Barber Examiners. The registered apprentice shall, prior to or immediately upon issuance 
238.12 	of the apprentice's certificate of registration, and immediately after changing employment, 
238.13 	advise the board of the name, address, and certificate number of the registered barber 
238.14 	under whom the registered apprentice is working.
238.15 	(c) A registered barber must only provide barbering services in a registered barber 
238.16 	shop or barber school, unless prior authorization is given by the board.
238.17 	(c) (d) No person shall operate a barber shop unless it is at all times under the direct 
238.18 	supervision and management of a registered barber and the owner or operator of the barber 
238.19 	shop possesses a current shop registration card, issued to the barber shop establishment 
238.20 	address, under sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162, 154.19 to 
238.21 	154.21, and 154.24 to 154.26 154.28 by the Board of Barber Examiners.
238.22 	(d) (e) No person shall serve, offer to serve, or attempt to serve as an instructor 
238.23 	of barbering without a current certificate of registration as a registered instructor of 
238.24 	barbering or a temporary permit as an instructor of barbering, as provided for the board 
238.25 	by rule, issued under sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162, 
238.26 	154.19 to 154.21, and 154.24 to 154.26 154.28 by the Board of Barber Examiners. Barber 
238.27 	instruction must be provided in registered barber schools only.
238.28 	(e) (f) No person shall operate a barber school unless the owner or operator possesses 
238.29 	a current certificate of registration as a barber school, issued under sections 154.001, 
238.30 	154.002, 154.003, 154.01 to 154.161154.162, 154.19 to 154.21, and 154.24 to 154.26 
238.31 	154.28 by the Board of Barber Examiners.

238.32 	EFFECTIVE DATE. This section is effective August 1, 2016.

238.33 	Sec. 33. Minnesota Statutes 2014, section 154.02, is amended to read:
238.34 	154.02 WHAT CONSTITUTES BARBERING DEFINITIONS.
239.1 		Subdivision 1.What constitutes barbering. Any one or any combination of the 
239.2 	following practices when done upon the head, face, and neck for cosmetic purposes and 
239.3 	not for the treatment of disease or physical or mental ailments and when done for payment 
239.4 	directly or indirectly or without payment for the public generally constitutes the practice 
239.5 	of barbering within the meaning of sections 154.001, 154.002, 154.003, 154.01 to 154.161 
239.6 	154.162, 154.19 to 154.21, and 154.24 to 154.26154.28: to shave the face or neck, trim 
239.7 	the beard, clean, condition, cut or bob, color, shape, or straighten the hair of any person 
239.8 	of either sex for compensation or other reward received by the person performing such 
239.9 	service or any other person; to give facial and scalp massage or treatments with oils, 
239.10 	creams, lotions, or other preparations either by hand or mechanical appliances; to singe, 
239.11 	shampoo the hair, or apply hair tonics; or to apply cosmetic preparations, antiseptics, 
239.12 	powders, oils, clays, or lotions to hair, scalp, face, or neck.
239.13 		Subd. 2.Barber school. A "barber school" is a place that holds a registration as a 
239.14 	barber school in which barbering, as defined in subdivision 1, is practiced by registered 
239.15 	student barbers under the direction of registered barber instructors for the purpose of 
239.16 	learning and teaching barber skills.
239.17 		Subd. 3.Barber shop. A "barber shop" is a place other than a barber school that 
239.18 	holds a registration as a barber shop under this chapter in which barbering, as defined in 
239.19 	subdivision 1, is practiced.
239.20 		Subd. 4.Certificate of registration. A "certificate of registration" means the 
239.21 	certificate issued to an individual, barber shop, or barber school that is in compliance 
239.22 	with the requirements of sections 154.001, 154.002, 154.003, 154.01 to 154.162, 154.19 
239.23 	to 154.21, and 154.24 to 154.28.
239.24 		Subd. 5.Designated registered barber. The "designated registered barber" is a 
239.25 	registered barber designated as the manager of a barber shop.
239.26 		Subd. 6.Registered barber. A "registered barber" is an individual who, for 
239.27 	compensation, performs the personal services as defined in subdivision 1, in compliance 
239.28 	with this chapter.

239.29 	EFFECTIVE DATE. This section is effective August 1, 2016.

239.30 	Sec. 34. Minnesota Statutes 2014, section 154.04, is amended to read:
239.31 	154.04 PERSONS EXEMPT FROM REGISTRATION.
239.32 	The following persons are exempt from the provisions of sections 154.001, 154.002, 
239.33 	154.003, 154.01 to 154.161 154.162, 154.19 to 154.21, and 154.24 to 154.26 154.28 while 
239.34 	in the proper discharge of their professional duties:
240.1 	(1) persons authorized by the law of this state to practice medicine, surgery, 
240.2 	osteopathy, and chiropractic;
240.3 	(2) commissioned medical or surgical officers of the United States armed services;
240.4 	(3) registered nurses, licensed practical nurses, and nursing aides performing 
240.5 	services under the direction and supervision of a licensed physician or licensed registered 
240.6 	nurse, provided, however, that no additional compensation shall be paid for such service 
240.7 	and patients who are so attended shall not be charged for barbering;
240.8 	(4) licensed cosmetologists, when providing cosmetology services as defined 
240.9 	in section 155A.23, subdivision 3, provided, however, that cosmetologists shall not 
240.10 	hold themselves out as barbers or, except in the case of nail technicians, practice their 
240.11 	occupation in a barber shop; and
240.12 	(5) persons who perform barbering services for charitable purposes in nursing 
240.13 	homes, shelters, missions, individual homes, or other similar facilities, provided, however, 
240.14 	that no direct or indirect compensation is received for the services, and that persons who 
240.15 	receive barbering services are not charged for the services.

240.16 	EFFECTIVE DATE. This section is effective August 1, 2016.

240.17 	Sec. 35. Minnesota Statutes 2014, section 154.05, is amended to read:
240.18 	154.05 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A 
240.19 	REGISTERED BARBER.
240.20 	(a) A person is qualified to receive a certificate of registration as a registered barber 
240.21 	if the person:
240.22 	(1) who is qualified under the provisions of section 154.06 has successfully 
240.23 	completed ten grades of education;
240.24 	(2) who has practiced as a registered apprentice for a period of 12 months under the 
240.25 	immediate personal supervision of a registered barber; and (2) has successfully completed 
240.26 	1,500 hours of study in a board-approved barber school; and
240.27 	(3) who has passed an examination conducted by the board to determine fitness to 
240.28 	practice barbering
240.29 	(3) has passed an examination conducted by the board to determine fitness to 
240.30 	practice barbering.
240.31 	An apprentice (b) A first-time applicant for a certificate of registration to practice as a 
240.32 	registered barber who fails to pass the comprehensive examination conducted by the board 
240.33 	and who fails to pass a onetime retake of the written examination, shall continue to practice 
241.1 	as an apprentice for complete an additional 300 500 hours of barber education before being 
241.2 	eligible to retake the comprehensive examination as many times as necessary to pass.

241.3 	EFFECTIVE DATE. This section is effective August 1, 2016.

241.4 	Sec. 36. Minnesota Statutes 2014, section 154.065, subdivision 2, is amended to read:
241.5 		Subd. 2.Qualifications. A person is qualified to receive a certificate of registration 
241.6 	as an instructor of barbering who:
241.7 	(1) is a graduate of an approved high school, or its equivalent, as determined by 
241.8 	examination by the Department of Education;
241.9 	(2) has successfully completed vocational instructor training from a board-approved 
241.10 	program or accredited college or university program that includes the following courses or 
241.11 	their equivalents as determined by the board:
241.12 	(i) introduction to career and technical education training;
241.13 	(ii) philosophy and practice of career and technical education;
241.14 	(iii) course development for career and technical education;
241.15 	(iv) instructional methods for career and technical education; and
241.16 	(v) human relations;
241.17 	(3) is currently a registered barber and has at least three years experience as 
241.18 	a registered barber in this state, or its equivalent in another state or jurisdiction as 
241.19 	determined by the board; and
241.20 	(4) has passed an examination conducted by the board to determine fitness to 
241.21 	instruct in barbering.

241.22 	EFFECTIVE DATE. This section is effective August 1, 2016.

241.23 	Sec. 37. Minnesota Statutes 2014, section 154.065, subdivision 4, is amended to read:
241.24 		Subd. 4.Examinations. Examinations under this section shall be held not to exceed 
241.25 	twice a year at times and at a place or places to be determined by the board. In case of 
241.26 	an emergency, there being no registered instructor of barbering available, a temporary 
241.27 	certificate as an instructor of barbering, valid only until the results of the next examination 
241.28 	are released, may be issued upon such terms and conditions as the board may prescribe.

241.29 	EFFECTIVE DATE. This section is effective August 1, 2016.

241.30 	Sec. 38. Minnesota Statutes 2014, section 154.07, is amended to read:
241.31 	154.07 BARBER SCHOOLS; REQUIREMENTS.
242.1 		Subdivision 1.Admission requirements; course of instruction. No barber school 
242.2 	shall be approved by the board unless it requires, as a prerequisite to admission, ten grades 
242.3 	of an approved school or its equivalent, as determined by educational transcript, high 
242.4 	school diploma, high school equivalency certificate, or an examination conducted by the 
242.5 	commissioner of education, which shall issue a certificate that the student has passed the 
242.6 	required examination, and unless it requires, as a prerequisite to graduation, a course of 
242.7 	instruction of at least 1,500 hours, of not more than eight ten hours of schooling in any 
242.8 	one working day. The course of instruction must include the following subjects: scientific 
242.9 	fundamentals for barbering; hygiene; practical study of the hair, skin, muscles, and 
242.10 	nerves; structure of the head, face, and neck; elementary chemistry relating to sanitation; 
242.11 	disinfection; sterilization and antiseptics; diseases of the skin, hair, and glands; massaging 
242.12 	and manipulating the muscles of the face and neck; haircutting; shaving; trimming the 
242.13 	beard; bleaching, tinting and dyeing the hair; and the chemical waving and straightening 
242.14 	of hair.
242.15 		Subd. 3.Costs. It is permissible for barber schools to make a reasonable charge for 
242.16 	materials used and services rendered by students for work done in the schools by students.
242.17 		Subd. 3a.Number of instructors. There must be one registered instructor of 
242.18 	barbering for every 17 20 students or minor fraction in excess of 17 in attendance at the 
242.19 	same time. Instruction must not be performed by persons not possessing a certificate of 
242.20 	registration as an instructor of barbering or a temporary permit as an instructor of barbering.
242.21 		Subd. 4.Building requirements. Each barber school must be conducted and 
242.22 	operated in one building, or in connecting buildings, and a barber school must not have 
242.23 	any department or branch in a building completely separated or removed from the 
242.24 	remainder of the barber school.
242.25 		Subd. 5.Owner's requirements. Any person may own and operate a barber school 
242.26 	if the person has had six years' continuous experience as a barber, provided the person first 
242.27 	secures from the board an annual certificate of registration as a barber school, keeps it 
242.28 	prominently displayed, and before commencing business:
242.29 	(1) files with the secretary of state a bond to the state approved by the attorney 
242.30 	general in the sum of $25,000, conditioned upon the faithful compliance of the barber 
242.31 	school with sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162, 154.19 to 
242.32 	154.21, and 154.24 to 154.26 154.28, and to pay all judgments that may be obtained 
242.33 	against the school, or the owners thereof, on account of fraud, misrepresentation, or deceit 
242.34 	practiced by them or their agents; and
242.35 	(2) keeps prominently displayed on the exterior a substantial sign indicating that the 
242.36 	establishment is a barber school.
243.1 		Subd. 5a.Student permits. All barber schools upon receiving students shall 
243.2 	immediately apply to the board for student permits upon forms for that purpose furnished 
243.3 	by the board.
243.4 		Subd. 5b.Designated operator. All barber schools shall be operated by a barber 
243.5 	with no less than six years of continuous experience as a registered barber in this state or 
243.6 	another state or jurisdiction as determined by the board. When a person who owns a barber 
243.7 	school does not meet the requirements of this section to operate a barber school, the owner 
243.8 	shall notify the board in writing and under oath of the identity of the person designated to 
243.9 	operate the barber school and shall notify the board of any change of operator by telephone 
243.10 	within 24 hours of such change, exclusive of Saturdays, Sundays, and legal holidays, and 
243.11 	shall notify the board in writing and under oath within 72 hours of such change.
243.12 		Subd. 6.Operation by technical college or state institution. A public technical 
243.13 	college or a state institution may operate a barber school provided it has in its employment 
243.14 	a qualified instructor holding a current certificate of registration as a barber instructor and 
243.15 	provided that it secures from the board an annual certificate of registration and does so in 
243.16 	accordance with sections 154.001, 154.002, 154.003, 154.01 to 154.161154.162, 154.19
243.17 	to 154.21, and 154.24 to 154.26154.28 and the rules of the board for barber schools but 
243.18 	without the requirement to file a performance bond with the secretary of state.

243.19 	EFFECTIVE DATE. This section is effective August 1, 2016.

243.20 	Sec. 39. Minnesota Statutes 2014, section 154.08, is amended to read:
243.21 	154.08 APPLICATION; FEE.
243.22 	Each applicant for an examination shall:
243.23 	(1) make application to the Board of Barber Examiners on blank forms prepared and 
243.24 	furnished by it, the application to contain proof under the applicant's oath of the particular 
243.25 	qualifications and identity of the applicant;
243.26 	(2) provide all documentation required in support of the application;
243.27 	(3) pay to the board the required fee; and
243.28 	(4) present a government-issued photo identification as proof of identity upon 
243.29 	acceptance of the notarized application and present a corresponding government-issued 
243.30 	photo identification when the applicant appears for examination.

243.31 	EFFECTIVE DATE. This section is effective August 1, 2016.

243.32 	Sec. 40. Minnesota Statutes 2014, section 154.09, is amended to read:
243.33 	154.09 EXAMINATIONS, CONDUCT AND SCOPE.
244.1 	The board shall conduct examinations of applicants for certificates of registration 
244.2 	to practice as registered barbers and apprentices not more than six times each year, at 
244.3 	such time and place as the board may determine. Additional written examinations may 
244.4 	be scheduled by the board and conducted by board staff as designated by the board. The 
244.5 	proprietor of a barber school must file an affidavit with the board of hours completed by 
244.6 	students applying to take the apprentice registered barber examination. Students must 
244.7 	complete 1,500 hours the full 1,500-hour curriculum in a barber school approved by the 
244.8 	board within the past four years to be eligible for examination. Barber students who have 
244.9 	completed barber school more than four years prior to application, that have not obtained 
244.10 	a barber registration, license, or certificate in any jurisdiction must complete an additional 
244.11 	500 hours of barber school education to be eligible for the registered barber examination. 
244.12 	Registered barbers that fail to renew their registration for four or more years are required 
244.13 	to take the registered barber examination to reinstate the registration.
244.14 	The examination of applicants for certificates of registration as barbers and 
244.15 	apprentices shall include a practical demonstration and a written and oral test. The 
244.16 	examination must cover the subjects usually taught in barber schools registered with the 
244.17 	board, including applicable state statute and rule.

244.18 	EFFECTIVE DATE. This section is effective August 1, 2016.

244.19 	Sec. 41. Minnesota Statutes 2014, section 154.10, subdivision 2, is amended to read:
244.20 		Subd. 2.Certificates of registration; fees. When the provisions of this chapter 
244.21 	have been complied with, the board shall issue a certificate of registration as a registered 
244.22 	barber, as a registered apprentice, as a registered instructor of barbering, or as a registered 
244.23 	barber school, a temporary apprentice permit, a temporary permit as an instructor of 
244.24 	barbering, or a barber shop registration card upon payment of the required fee. Certificates 
244.25 	of registration, temporary permits, and shop registration cards are not transferable.

244.26 	EFFECTIVE DATE. This section is effective August 1, 2016.

244.27 	Sec. 42. Minnesota Statutes 2014, section 154.11, subdivision 1, is amended to read:
244.28 		Subdivision 1.Examination of nonresidents. (a) A person who meets all of 
244.29 	the requirements for barber registration in sections 154.001, 154.002, 154.003, 154.01
244.30 	to 154.161 154.162, 154.19 to 154.21, and 154.24 to 154.26 154.28 and either has a 
244.31 	currently active license, certificate of registration, or an equivalent as a practicing barber 
244.32 	or instructor of barbering as verified from another state or, if presenting foreign country 
244.33 	credentials as verified by a board-approved professional credential evaluation provider, 
245.1 	which in the discretion of the board has substantially the same requirements for registering 
245.2 	barbers and instructors of barbering as required by sections 154.001, 154.002, 154.003, 
245.3 	154.01 to 154.161 154.162, 154.19 to 154.21, and 154.24 to 154.26 or can prove by sworn 
245.4 	affidavits practice as a barber or instructor of barbering in another state or country for at 
245.5 	least five years immediately prior to making application in this state, 154.28 shall, upon 
245.6 	payment of the required fee, be issued a certificate of registration without examination.
245.7 	(b) Individuals without a current documented license, certificate of registration, or 
245.8 	equivalent, as verified in paragraph (a), must have a minimum of 1,500 hours of barber 
245.9 	education as verified by the barber school attended in the other state or if presenting foreign 
245.10 	country education as verified by a board-approved professional credential evaluation 
245.11 	provider, completed within the previous four years, which, in the discretion of the board, 
245.12 	has substantially the same requirements as required in sections 154.001, 154.002, 154.003, 
245.13 	154.01 to 154.162, 154.19 to 154.21, and 154.24 to 154.28 will be eligible for examination.
245.14 	(c) Individuals unable to meet the requirements in paragraph (a) or (b) shall be 
245.15 	subject to all the requirements of section 154.05.

245.16 	EFFECTIVE DATE. This section is effective August 1, 2016.

245.17 	Sec. 43. Minnesota Statutes 2015 Supplement, section 154.11, subdivision 3, is 
245.18 	amended to read:
245.19 		Subd. 3.Temporary military permits. (a) In accordance with section 197.4552, 
245.20 	the board shall issue a temporary:
245.21 	(1) permit for apprentice barbers;
245.22 	(2) (1) certificate for registered barbers; and
245.23 	(3) (2) certificate for registered barber instructors.
245.24 	(b) Fees for temporary military permits and certificates of registration under this 
245.25 	subdivision are listed under section 154.003.
245.26 	(c) Permits or certificates of registration issued under this subdivision are valid 
245.27 	for one year from the date of issuance, after which the individual must complete a full 
245.28 	application as required by section 197.4552.

245.29 	EFFECTIVE DATE. This section is effective August 1, 2016.

245.30 	Sec. 44. Minnesota Statutes 2014, section 154.14, is amended to read:
245.31 	154.14 CERTIFICATES OF REGISTRATION AND TEMPORARY PERMITS 
245.32 	TO BE DISPLAYED.
246.1 	Every holder of a certificate of registration as a registered barber or registered 
246.2 	apprentice or temporary apprentice permit shall display the certificate or permit, with a 
246.3 	photograph of the certificate or permit holder that meets the same standards as required for 
246.4 	a United States passport, in a conspicuous place adjacent to or near the chair where work 
246.5 	is performed. Every holder of a certificate of registration as an instructor of barbering or 
246.6 	a temporary permit as an instructor of barbering shall display the certificate or permit, 
246.7 	with a photograph of the certificate or permit holder that meets the same standards as 
246.8 	required for a United States passport, in a conspicuous place within the barber school that 
246.9 	is accessible to the public. Every holder of a certificate of registration as a barber school 
246.10 	and of a barber shop registration card shall display it in a conspicuous place within the 
246.11 	establishment that is accessible to the public.

246.12 	EFFECTIVE DATE. This section is effective August 1, 2016.

246.13 	Sec. 45. Minnesota Statutes 2014, section 154.15, is amended to read:
246.14 	154.15 CERTIFICATES OF REGISTRATION MUST BE RENEWED 
246.15 	ANNUALLY.
246.16 		Subdivision 1.Annual renewal required. All registered barbers, registered 
246.17 	apprentices, and registered instructors of barbering who continue in active practice or 
246.18 	service shall, on or before December 31 each year, renew their certificates of registration 
246.19 	for the following year and pay the required fee. Every certificate of registration which 
246.20 	has not been renewed during the month of December in any year shall expire on the 31st 
246.21 	day of December in that year. All shop registration cards shall be renewed on or before 
246.22 	June 30 of each year upon payment of the required fee. All certificates of registration as 
246.23 	a barber school shall be renewed on or before December 31 of each year upon payment 
246.24 	of the required fee.
246.25 		Subd. 2.Effect of failure to renew. A registered barber or a registered apprentice 
246.26 	who has not renewed a certificate of registration may be reinstated within four years of 
246.27 	such failure to renew without examination upon the payment of the required restoration 
246.28 	fee for each year the certificate is lapsed. A registered instructor of barbering who has not 
246.29 	renewed a certificate of registration may be reinstated within four years of such failure to 
246.30 	renew without examination upon payment of the required restoration fee for each year 
246.31 	the certificate is lapsed. All registered barbers and registered apprentices who allow their 
246.32 	certificates of registration to lapse for more than four years shall be required to reexamine 
246.33 	before being issued a certificate of registration. All registered instructors of barbering who 
246.34 	allow their certificates of registration to lapse for more than four years shall be required 
247.1 	to reexamine before being issued a certificate of registration. A barber shop owner who 
247.2 	has not renewed the barber shop certificate for more than one year may reinstate the 
247.3 	barber shop registration upon payment of the restoration fee for each year the shop card 
247.4 	was lapsed. If lapsed or unregistered status is discovered by the barber inspector during 
247.5 	inspection, penalties under section 154.162 shall apply.

247.6 	EFFECTIVE DATE. This section is effective August 1, 2016.

247.7 	Sec. 46. Minnesota Statutes 2015 Supplement, section 154.161, subdivision 4, is 
247.8 	amended to read:
247.9 		Subd. 4.Registration actions. (a) With respect to a person who is a holder of or 
247.10 	applicant for registration or a shop registration card under sections 154.001, 154.002, 
247.11 	154.003, 154.01 to 154.161 154.162, 154.19 to 154.21, and 154.24 to 154.26 154.28, the 
247.12 	board may by order deny, refuse to renew, suspend, temporarily suspend, or revoke the 
247.13 	application, certificate of registration, or shop registration card, censure or reprimand the 
247.14 	person, refuse to permit the person to sit for examination, or refuse to release the person's 
247.15 	examination grades, if the board finds that such an order is in the public interest and that, 
247.16 	based on a preponderance of the evidence presented, the person has:
247.17 	(1) violated a statute, rule, or order that the board has adopted or issued or is 
247.18 	empowered to enforce;
247.19 	(2) engaged in conduct or acts that are fraudulent, deceptive, or dishonest, whether 
247.20 	or not the conduct or acts relate to the practice of barbering, if the fraudulent, deceptive, or 
247.21 	dishonest conduct or acts reflect adversely on the person's ability or fitness to engage in 
247.22 	the practice of barbering;
247.23 	(3) engaged in conduct or acts that constitute malpractice, are negligent, demonstrate 
247.24 	incompetence, or are otherwise in violation of the standards in the rules of the board, 
247.25 	where the conduct or acts relate to the practice of barbering;
247.26 	(4) employed fraud or deception in obtaining a certificate of registration, shop 
247.27 	registration card, renewal, or reinstatement, or in passing all or a portion of the examination;
247.28 	(5) had a certificate of registration or shop registration card, right to examine, or 
247.29 	other similar authority revoked in another jurisdiction;
247.30 	(6) failed to meet any requirement for issuance or renewal of the person's certificate 
247.31 	of registration or shop registration card;
247.32 	(7) practiced as a barber while having an infectious or contagious disease;
247.33 	(8) advertised by means of false or deceptive statements;
247.34 	(9) demonstrated intoxication or indulgence in the use of drugs, including but not 
247.35 	limited to narcotics as defined in section 152.01 or in United States Code, title 26, section 
248.1 	4731, barbiturates, amphetamines, benzedrine, dexedrine, or other sedatives, depressants, 
248.2 	stimulants, or tranquilizers;
248.3 	(10) demonstrated unprofessional conduct or practice;
248.4 	(11) permitted an employee or other person under the person's supervision or 
248.5 	control to practice as a registered barber, registered apprentice, or registered instructor 
248.6 	of barbering unless that person has (i) a current certificate of registration as a registered 
248.7 	barber, registered apprentice, or registered instructor of barbering, (ii) a temporary 
248.8 	apprentice permit, or (iii) a temporary permit as an instructor of barbering;
248.9 	(12) practices, offered to practice, or attempted to practice by misrepresentation;
248.10 	(13) failed to display a certificate of registration as required by section 154.14;
248.11 	(14) used any room or place of barbering that is also used for any other purpose, or 
248.12 	used any room or place of barbering that violates the board's rules governing sanitation;
248.13 	(15) in the case of a barber, apprentice, or other person working in or in charge of 
248.14 	any barber shop, or any person in a barber school engaging in the practice of barbering, 
248.15 	failed to use separate and clean towels for each customer or patron, or to discard and 
248.16 	launder each towel after being used once;
248.17 	(16) in the case of a barber or other person in charge of any barber shop or barber 
248.18 	school, (i) failed to supply in a sanitary manner clean hot and cold water in quantities 
248.19 	necessary to conduct the shop or barbering service for the school, (ii) failed to have water 
248.20 	and sewer connections from the shop or barber school with municipal water and sewer 
248.21 	systems where they are available for use, or (iii) failed or refused to maintain a receptacle 
248.22 	for hot water of a capacity of at least five gallons;
248.23 	(17) refused to permit the board to make an inspection permitted or required by 
248.24 	sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162, 154.19 to 154.21, and 
248.25 	154.24 to 154.26 154.28, or failed to provide the board or the attorney general on behalf 
248.26 	of the board with any documents or records they request;
248.27 	(18) failed promptly to renew a certificate of registration or shop registration card 
248.28 	when remaining in practice, pay the required fee, or issue a worthless check;
248.29 	(19) failed to supervise a registered apprentice or temporary apprentice, or permitted 
248.30 	the practice of barbering by a person not registered with the board or not holding a 
248.31 	temporary permit;
248.32 	(20) refused to serve a customer because of race, color, creed, religion, disability, 
248.33 	national origin, or sex;
248.34 	(21) failed to comply with a provision of sections 136A.82 to 136A.834, or a 
248.35 	provision of another chapter that relates to barber schools; or
249.1 	(22) with respect to temporary suspension orders, has committed an act, engaged in 
249.2 	conduct, or committed practices that the board, or complaint committee if authorized by the 
249.3 	board, has determined may result or may have resulted in an immediate threat to the public.
249.4 	(b) In lieu of or in addition to any remedy under paragraph (a), the board may 
249.5 	as a condition of continued registration, termination of suspension, reinstatement of 
249.6 	registration, examination, or release of examination results, require that the person:
249.7 	(1) submit to a quality review of the person's ability, skills, or quality of work, 
249.8 	conducted in a manner and by a person or entity that the board determines; or
249.9 	(2) complete to the board's satisfaction continuing education as the board requires.
249.10 	(c) Service of an order under this subdivision is effective if the order is served 
249.11 	personally on, or is served by certified mail to the most recent address provided to the 
249.12 	board by the certificate holder, applicant, or counsel of record. The order must state the 
249.13 	reason for the entry of the order.
249.14 	(d) Except as provided in subdivision 5, paragraph (c), all hearings under this 
249.15 	subdivision must be conducted in accordance with the Administrative Procedure Act.

249.16 	EFFECTIVE DATE. This section is effective August 1, 2016.

249.17 	Sec. 47. Minnesota Statutes 2014, section 154.161, subdivision 7, is amended to read:
249.18 		Subd. 7.Reinstatement. The board may reinstate a suspended, revoked, or 
249.19 	surrendered certificate of registration or shop registration card, on petition of the former 
249.20 	or suspended registrant. The board may in its sole discretion place any conditions on 
249.21 	reinstatement of a suspended, revoked, or surrendered certificate of registration or shop 
249.22 	registration card that it finds appropriate and necessary to ensure that the purposes of 
249.23 	sections 154.001, 154.002, 154.003, 154.01 to 154.161 154.162, 154.19 to 154.21, and 
249.24 	154.24 to 154.26 154.28 are met. No certificate of registration or shop registration card 
249.25 	may be reinstated until the former registrant has completed at least one-half of the 
249.26 	suspension period.

249.27 	EFFECTIVE DATE. This section is effective August 1, 2016.

249.28 	Sec. 48. Minnesota Statutes 2014, section 154.162, is amended to read:
249.29 	154.162 ADMINISTRATIVE PENALTIES.
249.30 	The board shall impose and collect the following penalties:
249.31 	(1) missing or lapsed shop registration discovered upon inspection; penalty imposed 
249.32 	on shop owner: up to $500;
250.1 	(2) unregistered apprentice or registered barber, first occurrence discovered upon 
250.2 	inspection; penalty imposed on shop owner and unlicensed or unregistered individual: 
250.3 	up to $500; and
250.4 	(3) unregistered apprentice or registered barber, second occurrence discovered upon 
250.5 	inspection; penalty imposed on shop owner and unlicensed or unregistered individual: 
250.6 	up to $1,000.

250.7 	EFFECTIVE DATE. This section is effective August 1, 2016.

250.8 	Sec. 49. Minnesota Statutes 2014, section 154.19, is amended to read:
250.9 	154.19 VIOLATIONS.
250.10 	Each of the following constitutes a misdemeanor:
250.11 	(1) The violation of any of the provisions of section 154.01;
250.12 	(2) Permitting any person in one's employ, supervision, or control to practice as a 
250.13 	registered barber or registered apprentice unless that person has a certificate of registration 
250.14 	as a registered barber or registered apprentice;
250.15 	(3) Obtaining or attempting to obtain a certificate of registration for money other 
250.16 	than the required fee, or any other thing of value, or by fraudulent misrepresentation;
250.17 	(4) Practicing or attempting to practice by fraudulent misrepresentation;
250.18 	(5) The willful failure to display a certificate of registration as required by section 
250.19 	154.14;
250.20 	(6) The use of any room or place for barbering which is also used for residential or 
250.21 	business purposes, except the sale of hair tonics, lotions, creams, cutlery, toilet articles, 
250.22 	cigars, tobacco, candies in original package, and such commodities as are used and sold in 
250.23 	barber shops, and except that shoeshining and an agency for the reception and delivery of 
250.24 	laundry, or either, may be conducted in a barber shop without the same being construed 
250.25 	as a violation of this section, unless a substantial partition of ceiling height separates the 
250.26 	portion used for residential or business purposes, and where a barber shop is situated in a 
250.27 	residence, poolroom, confectionery, store, restaurant, garage, clothing store, liquor store, 
250.28 	hardware store, or soft drink parlor, there must be an outside entrance leading into the 
250.29 	barber shop independent of any entrance leading into such business establishment, except 
250.30 	that this provision as to an outside entrance shall not apply to barber shops in operation 
250.31 	at the time of the passage of this section and except that a barber shop and beauty parlor 
250.32 	cosmetology salon may be operated in conjunction, without the same being separated by 
250.33 	partition of ceiling height;
251.1 	(7) The failure or refusal of any barber or other person in charge of any barber shop, 
251.2 	or any person in barber schools or colleges doing barber service work, to use separate 
251.3 	and clean towels for each customer or patron, or to discard and launder each towel after 
251.4 	once being used;
251.5 	(8) The failure or refusal by any barber or other person in charge of any barber shop 
251.6 	or barber school or barber college to supply clean hot and cold water in such quantities as 
251.7 	may be necessary to conduct such shop, or the barbering service of such school or college, 
251.8 	in a sanitary manner, or the failure or refusal of any such person to have water and sewer 
251.9 	connections from such shop, or barber school or college, with municipal water and sewer 
251.10 	systems where the latter are available for use, or the failure or refusal of any such person 
251.11 	to maintain a receptacle for hot water of a capacity of not less than five gallons;
251.12 	(9) For the purposes of this section, barbers, students, apprentices, or the proprietor 
251.13 	or manager of a barber shop, or barber school or barber college, shall be responsible for all 
251.14 	violations of the sanitary sanitation and disinfection provisions of this section, and. If any 
251.15 	barber workstation in any barber shop, or barber school or barber college, upon inspection, 
251.16 	shall be found to be in an unsanitary condition, the person making such inspection shall 
251.17 	immediately issue an order to place the barber shop, or barber school, or barber college, in 
251.18 	a sanitary condition, in a manner and within a time satisfactory to the Board of Barber 
251.19 	Examiners, and for the failure to comply with such order the board shall immediately file a 
251.20 	complaint for the arrest of the persons upon whom the order was issued, and any registered 
251.21 	barber who shall fail to comply with the rules adopted by the Board of Barber Examiners, 
251.22 	with the approval of the state commissioner of health, or the violation or commission of 
251.23 	any of the offenses described in this section and section 154.161, subdivision 4, paragraph 
251.24 	(a), clauses (1), (3), and (4) to (12), shall be fined not less than $10 or imprisoned for ten 
251.25 	days and not more than $100 or imprisoned for 90 days.

251.26 	EFFECTIVE DATE. This section is effective August 1, 2016.

251.27 	Sec. 50. Minnesota Statutes 2014, section 154.21, is amended to read:
251.28 	154.21 PERJURY.
251.29 	The willful making of any false statement as to a material matter in any oath or 
251.30 	affidavit which is required by the provisions of sections 154.001, 154.002, 154.003, 
251.31 	154.01 to 154.161 154.162, 154.19 to 154.21, and 154.24 to 154.26 154.28 is perjury 
251.32 	and punishable as such.

251.33 	EFFECTIVE DATE. This section is effective August 1, 2016.

252.1 	Sec. 51. Minnesota Statutes 2014, section 154.24, is amended to read:
252.2 	154.24 RULES.
252.3 	The Board of Barber Examiners shall have authority to make reasonable rules for the 
252.4 	administration of the provisions of sections 154.001, 154.002, 154.003, 154.01 to 154.161 
252.5 	154.162, 154.19 to 154.21, and 154.24 to 154.26 154.28 and prescribe sanitary sanitation 
252.6 	and disinfection requirements for barber shops and barber schools, subject to the approval 
252.7 	of the state commissioner of health. Any member of the board, or its agents or assistants, 
252.8 	shall have authority to enter upon and to inspect any barber shop or barber school at any 
252.9 	time during business hours. A copy of the rules adopted by the board shall be furnished by 
252.10 	it to the owner or manager of each barber shop or barber school and such copy shall be 
252.11 	posted in a conspicuous place in such barber shop or barber school.
252.12 	The board shall keep a record of its proceedings relating to the issuance, refusal, 
252.13 	renewal, suspension, and revocation of certificates of registration. This record shall 
252.14 	contain the name, place of business, and residence of each registered barber and registered 
252.15 	apprentice, and the date and number of the certificate of registration. This record shall be 
252.16 	open to public inspection at all reasonable times.

252.17 	EFFECTIVE DATE. This section is effective August 1, 2016.

252.18 	Sec. 52. Minnesota Statutes 2014, section 154.25, is amended to read:
252.19 	154.25 NOT TO SERVE CERTAIN PERSONS.
252.20 	No person practicing the occupation of a barber in any barber shop, barber school, or 
252.21 	college in this state shall knowingly serve a person afflicted, in a dangerous or infectious 
252.22 	state of the disease, with erysipelas, eczema, impetigo, sycosis, or any other contagious or 
252.23 	infectious disease. Any person so afflicted is hereby prohibited from being served in any 
252.24 	barber shop, barber school, or college in this state. Any violation of this section shall be 
252.25 	considered a misdemeanor as provided for in sections 154.001, 154.002, 154.003, 154.01
252.26 	to 154.161 154.162, 154.19 to 154.21, and 154.24 to 154.26 154.28.

252.27 	EFFECTIVE DATE. This section is effective August 1, 2016.

252.28 	Sec. 53. Minnesota Statutes 2014, section 161.368, is amended to read:
252.29 	161.368 HIGHWAY CONTRACTS WITH TRIBAL AUTHORITIES.
252.30 	(a) On behalf of the state, the commissioner may enter into agreements with Indian 
252.31 	tribal authorities for the purpose of providing maintenance, design, and construction to 
252.32 	highways on tribal lands. These agreements may include  (1) a provision for waiver of 
253.1 	immunity from suit by a party to the contract on the part of the tribal authority with respect 
253.2 	to any controversy arising out of the contract and (2) a provision conferring jurisdiction on 
253.3 	state district courts to hear such a controversy. 
253.4 	(b) Notwithstanding section 161.32, for construction of highways on tribal lands 
253.5 	in a reservation exempt from Public Law 83-280, the commissioner may: (1) award 
253.6 	a preference for Indian-owned contractors to the same extent provided in the applicable 
253.7 	Tribal Employment Rights Ordinance, but not to exceed ten percent; or (2) negotiate 
253.8 	with the tribal authority and enter into an agreement for the tribal authority to award and 
253.9 	administer the construction contract, with the commissioner providing funding for the 
253.10 	state share of the project. If negotiating with the tribal authority, the commissioner must 
253.11 	perform an independent cost estimate and determine that the cost proposed by the tribal 
253.12 	authority is reasonable. An agreement negotiated with a tribal authority must include a 
253.13 	clause requiring conformance with plans and specifications approved by the commissioner.

253.14 	Sec. 54. Minnesota Statutes 2014, section 197.455, subdivision 1, is amended to read:
253.15 		Subdivision 1.Application. (a) This section shall govern preference of a veteran 
253.16 	under the civil service laws, charter provisions, ordinances, rules or regulations of a 
253.17 	county, home rule charter or statutory city, town, school district, or other municipality 
253.18 	or political subdivision of this state. Any provision in a law, charter, ordinance, rule or 
253.19 	regulation contrary to the applicable provisions of this section is void to the extent of 
253.20 	such inconsistency.
253.21 	(b) Sections 197.46 to 197.481 also apply to a veteran who is an incumbent in a 
253.22 	classified appointment in the state civil service and has completed the probationary period 
253.23 	for that position, as defined under section 43A.16. In matters of dismissal from such a 
253.24 	position, a qualified veteran has the irrevocable option of using the procedures described 
253.25 	in sections 197.46 to 197.481, or the procedures provided in the collective bargaining 
253.26 	agreement applicable to the person, but not both. For a qualified veteran electing to use 
253.27 	the procedures of sections 197.46 to 197.481, the matters governed by those sections must 
253.28 	not be considered grievances under a collective bargaining agreement, and if a veteran 
253.29 	elects to appeal the dispute through those sections, the veteran is precluded from making 
253.30 	an appeal under the grievance procedure of the collective bargaining agreement.
253.31 	(c) A county, home rule charter or statutory city, town, school district, or other 
253.32 	municipality or political subdivision may require a veteran to complete an initial hiring 
253.33 	probationary period, as defined under section 43A.16. In matters of dismissal, a veteran 
253.34 	employed by a county, home rule charter or statutory city, town, school district, or other 
254.1 	municipality or political subdivision is entitled to the same rights and legal protections 
254.2 	that state employees receive under paragraph (b).

254.3 	Sec. 55. Minnesota Statutes 2015 Supplement, section 197.46, is amended to read:
254.4 	197.46 VETERANS PREFERENCE ACT; REMOVAL FORBIDDEN; RIGHT 
254.5 	OF MANDAMUS.
254.6 	(a) Any person whose rights may be in any way prejudiced contrary to any of the 
254.7 	provisions of this section, shall be is entitled to a writ of mandamus to remedy the wrong. 
254.8 	After any initial hiring probationary period expires, no person holding a position  either in 
254.9 	the state civil service or by appointment or employment in the several counties any county, 
254.10 	cities home rule charter or statutory city, towns town, school districts and alldistrict, or 
254.11 	any other political subdivisions subdivision in the state, who is a veteran separated from 
254.12 	the military service under honorable conditions, shall be removed from such the position 
254.13 	or employment except for incompetency or misconduct shown after a hearing, upon 
254.14 	due notice, upon stated charges, in writing.
254.15 	(b) Any veteran who has been notified of the intent to discharge the veteran from an 
254.16 	appointed position or employment pursuant to this section shall be notified in writing of 
254.17 	such the intent to discharge and of the veteran's right to request a hearing within 60 30
254.18 	days of receipt of the notice of intent to discharge. The failure of a veteran to request a 
254.19 	hearing within the provided 60-day 30-day period shall constitute constitutes a waiver 
254.20 	of the right to a hearing. Such The failure shall also waive waives all other available 
254.21 	legal remedies for reinstatement.
254.22 	Request for a hearing concerning such a discharge shall be made in writing and 
254.23 	submitted by mail or personal service to the employment office of the concerned employer 
254.24 	or other appropriate office or person. If the veteran requests a hearing under this section, 
254.25 	such the written request must also contain the veteran's election to be heard by a civil 
254.26 	service board or commission, a merit authority, or a three-person panelan arbitrator 
254.27 	as defined in paragraph (c). If the veteran fails to identify the veteran's election, the 
254.28 	governmental subdivision may select the hearing body.
254.29 	(c) In all governmental subdivisions having an established civil service board or 
254.30 	commission, or merit system authority, suchthe veteran may elect to have the hearing for 
254.31 	removal or discharge shall be held before such the civil service board or commission or 
254.32 	merit system authority, or before an arbitrator as specified in this paragraph. Where no 
254.33 	such civil service board or commission or merit system authority exists, suchthe hearing 
254.34 	shall be held by a board of three persons appointed as follows: one by the governmental 
254.35 	subdivision, one by the veteran, and the third by the two so selected an arbitrator. In cases 
255.1 	where a hearing will be held by an arbitrator, the employer shall request from the Bureau 
255.2 	of Mediation Services a list of seven persons to serve as an arbitrator. The employer 
255.3 	shall strike the first name from the list and the parties shall alternately strike names from 
255.4 	the list until the name of one arbitrator remains. After receiving each of the employer's 
255.5 	elections to strike a person from the list, the veteran has 48 hours to strike a person from 
255.6 	the list.  The person remaining after the striking procedure must be the arbitrator. Upon the 
255.7 	selection of the arbitrator, the employer shall notify the designated arbitrator and request 
255.8 	available dates to hold the hearing. In the event that the hearing is authorized to be held 
255.9 	before a three-person board an arbitrator, the governmental subdivision's notice of intent 
255.10 	to discharge shall state that the veteran must respond within 60 30 days of receipt of the 
255.11 	notice of intent to discharge., and provide in writing to the governmental subdivision the 
255.12 	name, United States mailing address, and telephone number of the veteran's selected 
255.13 	representative for the three-person board. The failure of a veteran to submit the name, 
255.14 	address, and telephone number of the veteran's selected representative to the governmental 
255.15 	subdivision by mail or by personal service within the provided notice's 60-day period, shall 
255.16 	constitute a waiver of the veteran's right to the hearing and all other legal remedies available 
255.17 	for reinstatement of the veteran's employment position. In the event the two persons 
255.18 	selected by the veteran and governmental subdivision do not appoint the third person within 
255.19 	ten days after the appointment of the last of the two, then the judge of the district court of 
255.20 	the county wherein the proceeding is pending, or if there be more than one judge in said 
255.21 	county then any judge in chambers, shall have jurisdiction to appoint, and  Upon application 
255.22 	of either or both of the two so selected shall appoint, the third person to the board and the 
255.23 	person so appointed by the judge with the two first selected shall constitute the board.
255.24 	(d) Either the veteran or the governmental subdivision may appeal from the decision 
255.25 	of the board hearing body upon the charges to the district court by causing written notice 
255.26 	of appeal, stating the grounds thereof of the appeal, to be served upon the other party 
255.27 	within 15 days after notice of the decision and by filing the original notice of appeal 
255.28 	with proof of service thereof in the office of the court administrator of the district court 
255.29 	within ten days after service thereof. Nothing in section 197.455 or this section shall be 
255.30 	construed to apply to the position of private secretary, superintendent of schools, or one 
255.31 	chief deputy of any elected official or head of a department, or to any person holding a 
255.32 	strictly confidential relation to the appointing officer. Nothing in this section shall be 
255.33 	construed to apply to the position of teacher. The burden of establishing such relationship 
255.34 	shall be upon the appointing officer in all proceedings and actions relating thereto.
255.35 	(e) For disputes heard by a civil service board, commission or merit system 
255.36 	authority, or an arbitrator, the political governmental subdivisions shall bear all costs 
256.1 	associated with the hearing but not including attorney fees for attorneys representing the 
256.2 	veteran. For disputes heard by a three-person panel, all parties shall bear equally all costs 
256.3 	associated with the hearing, but not including attorney fees for attorneys representing the 
256.4 	veteran. If the veteran prevails in a dispute heard by a civil service board or a three-person 
256.5 	panel, commission or merit system authority, or an arbitrator and the hearing reverses all 
256.6 	aspects of the level of the alleged incompetency or misconduct requiring  discharge, the 
256.7 	governmental subdivision shall pay the veteran's reasonable attorney fees.
256.8 	(f) All officers, boards, commissions, and employees shall conform to, comply with, 
256.9 	and aid in all proper ways in carrying into effect the provisions of section 197.455 and this 
256.10 	section notwithstanding any laws, charter provisions, ordinances or rules to the contrary. 
256.11 	Any willful violation of such sections by officers, officials, or employees is a misdemeanor.

256.12 	Sec. 56. [240A.085] JAMES METZEN MIGHTY DUCKS ICE CENTER 
256.13 	DEVELOPMENT ACT.
256.14 	Sections 240A.085 to 240A.11 may be cited as the James Metzen Mighty Ducks Ice 
256.15 	Center Development Act.

256.16 	Sec. 57. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:
256.17 		Subd. 19b.Subtractions from federal taxable income. For individuals, estates, 
256.18 	and trusts, there shall be subtracted from federal taxable income:
256.19 	(1) net interest income on obligations of any authority, commission, or 
256.20 	instrumentality of the United States to the extent includable in taxable income for federal 
256.21 	income tax purposes but exempt from state income tax under the laws of the United States;
256.22 	(2) if included in federal taxable income, the amount of any overpayment of income 
256.23 	tax to Minnesota or to any other state, for any previous taxable year, whether the amount 
256.24 	is received as a refund or as a credit to another taxable year's income tax liability;
256.25 	(3) the amount paid to others, less the amount used to claim the credit allowed under 
256.26 	section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 
256.27 	to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 
256.28 	transportation of each qualifying child in attending an elementary or secondary school 
256.29 	situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 
256.30 	resident of this state may legally fulfill the state's compulsory attendance laws, which 
256.31 	is not operated for profit, and which adheres to the provisions of the Civil Rights Act 
256.32 	of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 
256.33 	tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 
256.34 	"textbooks" includes books and other instructional materials and equipment purchased 
257.1 	or leased for use in elementary and secondary schools in teaching only those subjects 
257.2 	legally and commonly taught in public elementary and secondary schools in this state. 
257.3 	Equipment expenses qualifying for deduction includes expenses as defined and limited in 
257.4 	section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 
257.5 	books and materials used in the teaching of religious tenets, doctrines, or worship, the 
257.6 	purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 
257.7 	or materials for, or transportation to, extracurricular activities including sporting events, 
257.8 	musical or dramatic events, speech activities, driver's education, or similar programs. No 
257.9 	deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 
257.10 	the qualifying child's vehicle to provide such transportation for a qualifying child. For 
257.11 	purposes of the subtraction provided by this clause, "qualifying child" has the meaning 
257.12 	given in section 32(c)(3) of the Internal Revenue Code;
257.13 	(4) income as provided under section 290.0802;
257.14 	(5) to the extent included in federal adjusted gross income, income realized on 
257.15 	disposition of property exempt from tax under section 290.491;
257.16 	(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 
257.17 	of the Internal Revenue Code in determining federal taxable income by an individual 
257.18 	who does not itemize deductions for federal income tax purposes for the taxable year, an 
257.19 	amount equal to 50 percent of the excess of charitable contributions over $500 allowable 
257.20 	as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, 
257.21 	under the provisions of Public Law 109-1 and Public Law 111-126;
257.22 	(7) for individuals who are allowed a federal foreign tax credit for taxes that do not 
257.23 	qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 
257.24 	of subnational foreign taxes for the taxable year, but not to exceed the total subnational 
257.25 	foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 
257.26 	"federal foreign tax credit" means the credit allowed under section 27 of the Internal 
257.27 	Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 
257.28 	under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 
257.29 	the extent they exceed the federal foreign tax credit;
257.30 	(8) in each of the five tax years immediately following the tax year in which an 
257.31 	addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a 
257.32 	shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
257.33 	delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount 
257.34 	of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, 
257.35 	clause (12), in the case of a shareholder of an S corporation, minus the positive value of 
258.1 	any net operating loss under section 172 of the Internal Revenue Code generated for the 
258.2 	tax year of the addition. The resulting delayed depreciation cannot be less than zero;
258.3 	(9) job opportunity building zone income as provided under section 469.316;
258.4 	(10) to the extent included in federal taxable income, the amount of compensation 
258.5 	paid to members of the Minnesota National Guard or other reserve components of the 
258.6 	United States military for active service, including compensation for services performed 
258.7 	under the Active Guard Reserve (AGR) program. For purposes of this clause, "active 
258.8 	service" means (i) state active service as defined in section 190.05, subdivision 5a, clause 
258.9 	(1); or (ii) federally funded state active service as defined in section 190.05, subdivision 
258.10 	5b, and "active service" includes service performed in accordance with section 190.08, 
258.11 	subdivision 3;
258.12 	(11) to the extent included in federal taxable income, the amount of compensation 
258.13 	paid to Minnesota residents who are members of the armed forces of the United States 
258.14 	or United Nations for active duty performed under United States Code, title 10; or the 
258.15 	authority of the United Nations;
258.16 	(12) an amount, not to exceed $10,000, equal to qualified expenses related to a 
258.17 	qualified donor's donation, while living, of one or more of the qualified donor's organs 
258.18 	to another person for human organ transplantation. For purposes of this clause, "organ" 
258.19 	means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 
258.20 	"human organ transplantation" means the medical procedure by which transfer of a human 
258.21 	organ is made from the body of one person to the body of another person; "qualified 
258.22 	expenses" means unreimbursed expenses for both the individual and the qualified donor 
258.23 	for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 
258.24 	may be subtracted under this clause only once; and "qualified donor" means the individual 
258.25 	or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 
258.26 	individual may claim the subtraction in this clause for each instance of organ donation for 
258.27 	transplantation during the taxable year in which the qualified expenses occur;
258.28 	(13) in each of the five tax years immediately following the tax year in which an 
258.29 	addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a 
258.30 	shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
258.31 	addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the 
258.32 	case of a shareholder of a corporation that is an S corporation, minus the positive value of 
258.33 	any net operating loss under section 172 of the Internal Revenue Code generated for the 
258.34 	tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 
258.35 	subtraction is not allowed under this clause;
259.1 	(14) to the extent included in the federal taxable income of a nonresident of 
259.2 	Minnesota, compensation paid to a service member as defined in United States Code, title 
259.3 	10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief 
259.4 	Act, Public Law 108-189, section 101(2);
259.5 	(15) to the extent included in federal taxable income, the amount of national service 
259.6 	educational awards received from the National Service Trust under United States Code, 
259.7 	title 42, sections 12601 to 12604, for service in an approved Americorps National Service 
259.8 	program;
259.9 	(16) to the extent included in federal taxable income, discharge of indebtedness 
259.10 	income resulting from reacquisition of business indebtedness included in federal taxable 
259.11 	income under section 108(i) of the Internal Revenue Code. This subtraction applies only 
259.12 	to the extent that the income was included in net income in a prior year as a result of the 
259.13 	addition under subdivision 19a, clause (13);
259.14 	(17) the amount of the net operating loss allowed under section 290.095, subdivision 
259.15 	11, paragraph (c);
259.16 	(18) the amount of expenses not allowed for federal income tax purposes due 
259.17 	to claiming the railroad track maintenance credit under section 45G(a) of the Internal 
259.18 	Revenue Code;
259.19 	(19) the amount of the limitation on itemized deductions under section 68(b) of the 
259.20 	Internal Revenue Code;
259.21 	(20) the amount of the phaseout of personal exemptions under section 151(d) of 
259.22 	the Internal Revenue Code; and
259.23 	(21) to the extent included in federal taxable income, the amount of qualified 
259.24 	transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal 
259.25 	Revenue Code. The subtraction is limited to the lesser of the amount of qualified 
259.26 	transportation fringe benefits received in excess of the limitations under section 
259.27 	132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the 
259.28 	maximum qualified parking benefits excludable under section 132(f)(2)(B) of the 
259.29 	Internal Revenue Code minus the amount of transit benefits excludable under section 
259.30 	132(f)(2)(A) of the Internal Revenue Code to the extent included in federal taxable 
259.31 	income, compensation received from a pension or other retirement pay from the federal 
259.32 	government for service in the military, as computed under United States Code, title 10, 
259.33 	sections 1401 to 1414, 1447 to 1455, and 12733. The subtraction must not include any 
259.34 	amount used to claim the credit allowed under section 290.0677.

259.35 	EFFECTIVE DATE. The striking of the qualified fringe benefits subtraction is 
259.36 	effective the day following final enactment, except the changes incorporated by federal 
260.1 	changes are effective retroactively at the same time as the changes were effective for 
260.2 	federal purposes. The new subtraction for pension or other military retirement pay is 
260.3 	effective for taxable years beginning after December 31, 2015.

260.4 	Sec. 58. Minnesota Statutes 2014, section 327C.03, subdivision 6, is amended to read:
260.5 		Subd. 6.Payment to the Minnesota manufactured home relocation trust fund.
 260.6 	In the event a park owner has been assessed under section 327C.095, subdivision 12, 
260.7 	paragraph (c), the park owner may collect the $12 $15 annual payment required by section 
260.8 	327C.095, subdivision 12, for participation in the relocation trust fund, as a lump sum or, 
260.9 	along with monthly lot rent, a fee of no more than $1 $1.25 per month to cover the cost of 
260.10 	participating in the relocation trust fund. The $1 $1.25 fee must be separately itemized 
260.11 	and clearly labeled "Minnesota manufactured home relocation trust fund."

260.12 	Sec. 59. Minnesota Statutes 2014, section 327C.095, subdivision 12, is amended to read:
260.13 		Subd. 12.Payment to the Minnesota manufactured home relocation trust fund.
 260.14 	(a) If a manufactured home owner is required to move due to the conversion of all or a 
260.15 	portion of a manufactured home park to another use, the closure of a park, or cessation of 
260.16 	use of the land as a manufactured home park, the manufactured park owner shall, upon 
260.17 	the change in use, pay to the commissioner of management and budget for deposit in the 
260.18 	Minnesota manufactured home relocation trust fund under section 462A.35, the lesser 
260.19 	amount of the actual costs of moving or purchasing the manufactured home approved 
260.20 	by the neutral third party and paid by the Minnesota Housing Finance Agency under 
260.21 	subdivision 13, paragraph (a) or (e), or $3,250 for each single section manufactured 
260.22 	home, and $6,000 for each multisection manufactured home, for which a manufactured 
260.23 	home owner has made application for payment of relocation costs under subdivision 13, 
260.24 	paragraph (c). The manufactured home park owner shall make payments required under 
260.25 	this section to the Minnesota manufactured home relocation trust fund within 60 days of 
260.26 	receipt of invoice from the neutral third party.
260.27 	(b) A manufactured home park owner is not required to make the payment prescribed 
260.28 	under paragraph (a), nor is a manufactured home owner entitled to compensation under 
260.29 	subdivision 13, paragraph (a) or (e), if:
260.30 	(1) the manufactured home park owner relocates the manufactured home owner to 
260.31 	another space in the manufactured home park or to another manufactured home park at 
260.32 	the park owner's expense;
261.1 	(2) the manufactured home owner is vacating the premises and has informed the 
261.2 	manufactured home park owner or manager of this prior to the mailing date of the closure 
261.3 	statement under subdivision 1;
261.4 	(3) a manufactured home owner has abandoned the manufactured home, or the 
261.5 	manufactured home owner is not current on the monthly lot rental, personal property taxes;
261.6 	(4) the manufactured home owner has a pending eviction action for nonpayment of 
261.7 	lot rental amount under section 327C.09, which was filed against the manufactured home 
261.8 	owner prior to the mailing date of the closure statement under subdivision 1, and the writ 
261.9 	of recovery has been ordered by the district court;
261.10 	(5) the conversion of all or a portion of a manufactured home park to another use, 
261.11 	the closure of a park, or cessation of use of the land as a manufactured home park is the 
261.12 	result of a taking or exercise of the power of eminent domain by a governmental entity 
261.13 	or public utility; or
261.14 	(6) the owner of the manufactured home is not a resident of the manufactured home 
261.15 	park, as defined in section 327C.01, subdivision 9, or the owner of the manufactured home 
261.16 	is a resident, but came to reside in the manufactured home park after the mailing date of 
261.17 	the closure statement under subdivision 1.
261.18 	(c) If the unencumbered fund balance in the manufactured home relocation trust 
261.19 	fund is less than $1,000,000 as of June 30 of each year, the commissioner of management 
261.20 	and budget shall assess each manufactured home park owner by mail the total amount 
261.21 	of $12 $15 for each licensed lot in their park, payable on or before September 15 of that 
261.22 	year. The commissioner of management and budget shall deposit any payments in the 
261.23 	Minnesota manufactured home relocation trust fund. On or before July 15 of each year, 
261.24 	the commissioner of management and budget shall prepare and distribute to park owners a 
261.25 	letter explaining whether funds are being collected for that year, information about the 
261.26 	collection, an invoice for all licensed lots, and a sample form for the park owners to collect 
261.27 	information on which park residents have been accounted for. If assessed under this 
261.28 	paragraph, the park owner may recoup the cost of the $12 $15 assessment as a lump sum 
261.29 	or as a monthly fee of no more than $1 $1.25 collected from park residents together with 
261.30 	monthly lot rent as provided in section 327C.03, subdivision 6. Park owners may adjust 
261.31 	payment for lots in their park that are vacant or otherwise not eligible for contribution to 
261.32 	the trust fund under section 327C.095, subdivision 12, paragraph (b), and deduct from the 
261.33 	assessment accordingly.
261.34 	(d) This subdivision and subdivision 13, paragraph (c), clause (5), are enforceable by 
261.35 	the neutral third party, on behalf of the Minnesota Housing Finance Agency, or by action 
262.1 	in a court of appropriate jurisdiction. The court may award a prevailing party reasonable 
262.2 	attorney fees, court costs, and disbursements.

262.3 	Sec. 60. Minnesota Statutes 2014, section 327C.095, subdivision 13, is amended to read:
262.4 		Subd. 13.Change in use, relocation expenses; payments by park owner. (a) 
262.5 	If a manufactured home owner is required to relocate due to the conversion of all or a 
262.6 	portion of a manufactured home park to another use, the closure of a manufactured home 
262.7 	park, or cessation of use of the land as a manufactured home park under subdivision 1, 
262.8 	and the manufactured home owner complies with the requirements of this section, the 
262.9 	manufactured home owner is entitled to payment from the Minnesota manufactured home 
262.10 	relocation trust fund equal to the manufactured home owner's actual relocation costs for 
262.11 	relocating the manufactured home to a new location within a 25-mile radius of the park 
262.12 	that is being closed, up to a maximum of $4,000 $7,000 for a single-section and $8,000 
262.13 	$12,500 for a multisection manufactured home. The actual relocation costs must include 
262.14 	the reasonable cost of taking down, moving, and setting up the manufactured home, 
262.15 	including equipment rental, utility connection and disconnection charges, minor repairs, 
262.16 	modifications necessary for transportation of the home, necessary moving permits and 
262.17 	insurance, moving costs for any appurtenances, which meet applicable local, state, and 
262.18 	federal building and construction codes.
262.19 	(b) A manufactured home owner is not entitled to compensation under paragraph (a) 
262.20 	if the manufactured home park owner is not required to make a payment to the Minnesota 
262.21 	manufactured home relocation trust fund under subdivision 12, paragraph (b).
262.22 	(c) Except as provided in paragraph (e), in order to obtain payment from the 
262.23 	Minnesota manufactured home relocation trust fund, the manufactured home owner shall 
262.24 	submit to the neutral third party and the Minnesota Housing Finance Agency, with a copy 
262.25 	to the park owner, an application for payment, which includes:
262.26 	(1) a copy of the closure statement under subdivision 1;
262.27 	(2) a copy of the contract with a moving or towing contractor, which includes the 
262.28 	relocation costs for relocating the manufactured home;
262.29 	(3) a statement with supporting materials of any additional relocation costs as 
262.30 	outlined in subdivision 1;
262.31 	(4) a statement certifying that none of the exceptions to receipt of compensation 
262.32 	under subdivision 12, paragraph (b), apply to the manufactured home owner;
262.33 	(5) a statement from the manufactured park owner that the lot rental is current 
262.34 	and that the annual $12 $15 payments to the Minnesota manufactured home relocation 
262.35 	trust fund have been paid when due; and
263.1 	(6) a statement from the county where the manufactured home is located certifying 
263.2 	that personal property taxes for the manufactured home are paid through the end of that year.
263.3 	(d) If the neutral third party has acted reasonably and does not approve or deny 
263.4 	payment within 45 days after receipt of the information set forth in paragraph (c), the 
263.5 	payment is deemed approved. Upon approval and request by the neutral third party, 
263.6 	the Minnesota Housing Finance Agency shall issue two checks in equal amount for 50 
263.7 	percent of the contract price payable to the mover and towing contractor for relocating 
263.8 	the manufactured home in the amount of the actual relocation cost, plus a check to the 
263.9 	home owner for additional certified costs associated with third-party vendors, that were 
263.10 	necessary in relocating the manufactured home. The moving or towing contractor shall 
263.11 	receive 50 percent upon execution of the contract and 50 percent upon completion of 
263.12 	the relocation and approval by the manufactured home owner. The moving or towing 
263.13 	contractor may not apply the funds to any other purpose other than relocation of the 
263.14 	manufactured home as provided in the contract. A copy of the approval must be forwarded 
263.15 	by the neutral third party to the park owner with an invoice for payment of the amount 
263.16 	specified in subdivision 12, paragraph (a).
263.17 	(e) In lieu of collecting a relocation payment from the Minnesota manufactured 
263.18 	home relocation trust fund under paragraph (a), the manufactured home owner may collect 
263.19 	an amount from the fund after reasonable efforts to relocate the manufactured home 
263.20 	have failed due to the age or condition of the manufactured home, or because there are 
263.21 	no manufactured home parks willing or able to accept the manufactured home within a 
263.22 	25-mile radius. A manufactured home owner may tender title of the manufactured home in 
263.23 	the manufactured home park to the manufactured home park owner, and collect an amount 
263.24 	to be determined by an independent appraisal. The appraiser must be agreed to by both 
263.25 	the manufactured home park owner and the manufactured home owner. If the appraised 
263.26 	market value cannot be determined, the tax market value, averaged over a period of five 
263.27 	years, can be used as a substitute. The maximum amount that may be reimbursed under 
263.28 	the fund is a maximum of $5,000 $8,000 for a single-section and $9,000 $14,500 for a 
263.29 	multisection manufactured home. The minimum amount that may be reimbursed under the 
263.30 	fund is $2,000 for a single section and $4,000 for a multisection manufactured home. The 
263.31 	manufactured home owner shall deliver to the manufactured home park owner the current 
263.32 	certificate of title to the manufactured home duly endorsed by the owner of record, and 
263.33 	valid releases of all liens shown on the certificate of title, and a statement from the county 
263.34 	where the manufactured home is located evidencing that the personal property taxes have 
263.35 	been paid. The manufactured home owner's application for funds under this paragraph 
263.36 	must include a document certifying that the manufactured home cannot be relocated, that 
264.1 	the lot rental is current, that the annual $12 $15 payments to the Minnesota manufactured 
264.2 	home relocation trust fund have been paid when due, that the manufactured home owner 
264.3 	has chosen to tender title under this section, and that the park owner agrees to make a 
264.4 	payment to the commissioner of management and budget in the amount established in 
264.5 	subdivision 12, paragraph (a), less any documented costs submitted to the neutral third 
264.6 	party, required for demolition and removal of the home, and any debris or refuse left on the 
264.7 	lot, not to exceed $1,000. The manufactured home owner must also provide a copy of the 
264.8 	certificate of title endorsed by the owner of record, and certify to the neutral third party, 
264.9 	with a copy to the park owner, that none of the exceptions to receipt of compensation under 
264.10 	subdivision 12, paragraph (b), clauses (1) to (6), apply to the manufactured home owner, 
264.11 	and that the home owner will vacate the home within 60 days after receipt of payment or the 
264.12 	date of park closure, whichever is earlier, provided that the monthly lot rent is kept current.
264.13 	(f) The Minnesota Housing Finance Agency must make a determination of the 
264.14 	amount of payment a manufactured home owner would have been entitled to under a local 
264.15 	ordinance in effect on May 26, 2007. Notwithstanding paragraph (a), the manufactured 
264.16 	home owner's compensation for relocation costs from the fund under section 462A.35, is 
264.17 	the greater of the amount provided under this subdivision, or the amount under the local 
264.18 	ordinance in effect on May 26, 2007, that is applicable to the manufactured home owner. 
264.19 	Nothing in this paragraph is intended to increase the liability of the park owner.
264.20 	(g) Neither the neutral third party nor the Minnesota Housing Finance Agency shall 
264.21 	be liable to any person for recovery if the funds in the Minnesota manufactured home 
264.22 	relocation trust fund are insufficient to pay the amounts claimed. The Minnesota Housing 
264.23 	Finance Agency shall keep a record of the time and date of its approval of payment to a 
264.24 	claimant.
264.25 	(h) The agency shall report to the chairs of the senate Finance Committee and 
264.26 	house of representatives Ways and Means Committee by January 15 of each year on 
264.27 	the Minnesota manufactured home relocation trust fund, including the account balance, 
264.28 	payments to claimants, the amount of any advances to the fund, the amount of any 
264.29 	insufficiencies encountered during the previous calendar year, and any administrative 
264.30 	charges or expenses deducted from the trust fund balance. If sufficient funds become 
264.31 	available, the Minnesota Housing Finance Agency shall pay the manufactured home 
264.32 	owner whose unpaid claim is the earliest by time and date of approval.

264.33 	Sec. 61. PLAQUE OR MARKER AUTHORIZED TO HONOR CAPITOL 
264.34 	CONSTRUCTION WORKERS.
 265.1 	(a) The commissioner of administration shall place a plaque or three-dimensional 
265.2 	marker in the State Capitol building in a space easily visible to public visitors to recognize 
265.3 	and honor the efforts and sacrifice of workers who constructed the State Capitol building, 
265.4 	as well as those who worked on subsequent projects to preserve the building. The plaque 
265.5 	or marker shall specifically honor the six workers who died during construction of the State 
265.6 	Capitol building. The Capitol Area Architectural and Planning Board and the Minnesota 
265.7 	Historical Society shall set the parameters and location for the memorial plaque or marker.
265.8 	(b) The Capitol Area Architectural and Planning Board shall conduct an opportunity 
265.9 	contest for sixth graders from across the state to submit designs for the memorial plaque 
265.10 	or marker. The board shall select a design from those submissions to be used as a basis for 
265.11 	the final production of this plaque or marker by January 1, 2017. The memorial plaque or 
265.12 	marker shall be installed during the State Capitol remodel.

265.13 	Sec. 62. STUDY ON VETERANS' UNMET NEEDS FOR BEHAVIOR AND 
265.14 	MENTAL HEALTH SERVICES.
 265.15 	The commissioner of veterans affairs shall perform a study to quantify and describe 
265.16 	unmet needs amongst Minnesota veterans for behavioral and mental health services.  The 
265.17 	study will include conducting focus groups of stakeholders, including veterans and their 
265.18 	families, representatives of the United States Veterans Administration, community referral 
265.19 	centers, and county veteran service officers.  The commissioner of veterans affairs may 
265.20 	contract with a statewide nonprofit organization to conduct the study.  The commissioner 
265.21 	of veterans affairs shall report by February 15, 2017, to the chairs and ranking minority 
265.22 	members of the committees in the house of representatives and the senate with jurisdiction 
265.23 	over veterans policy and budget with the findings of the study and with recommendations 
265.24 	about how current services provided to veterans could be expanded to better meet the 
265.25 	needs identified by the study.

265.26 	Sec. 63. FEASIBILITY STUDY ON PARTNERSHIPS TO PROVIDE INTERIM 
265.27 	HOUSING FOR DISABLED VETERANS.
 265.28 	The commissioner of veterans affairs shall study the feasibility of partnering with 
265.29 	an established nonprofit organization to provide interim housing for disabled veterans in 
265.30 	conjunction with fully integrated and customizable support services. The commissioner of 
265.31 	veterans affairs shall submit a report including its findings and recommendations regarding 
265.32 	the feasibility of such a partnership to the chairs and ranking minority members of the 
265.33 	standing committees in the house of representatives and the senate having jurisdiction 
265.34 	over veterans affairs by February 15, 2017.

266.1 	Sec. 64. MEMORIAL COMMEMORATING RECIPIENTS OF THE MEDAL 
266.2 	OF HONOR.
 266.3 		Subdivision 1.Medal of Honor Memorial on the State Capitol grounds. Subject 
266.4 	to approval by the Capitol Area Architectural and Planning Board, the commissioner of 
266.5 	administration shall place a memorial on the State Capitol grounds to honor Minnesotans 
266.6 	awarded the Medal of Honor.
266.7 		Subd. 2.Gifts and grants. The commissioner of veterans affairs may solicit gifts, 
266.8 	grants, or donations of any kind from any private or public source to carry out the purposes 
266.9 	of this section. A Medal of Honor Memorial account is created in the special revenue 
266.10 	fund. All gifts, grants, or donations received by the commissioner shall be deposited in a 
266.11 	Medal of Honor Memorial account in the special revenue fund. Money in the account is 
266.12 	appropriated to the commissioner of administration for predesign, design,  construction, 
266.13 	and ongoing maintenance of the memorial.
266.14 		Subd. 3.Restrictions. Money deposited in the Medal of Honor Memorial account 
266.15 	is not available until the commissioner of management and budget has determined an 
266.16 	amount sufficient to complete predesign of the memorial has been committed to the project 
266.17 	from nonstate sources. The commissioner of administration shall not begin construction 
266.18 	on this project until money in the account is sufficient to pay for all costs related to 
266.19 	construction and ongoing maintenance of the memorial.

266.20 	Sec. 65. LEGISLATIVE ADVISORY COMMISSION; FEDERAL FUNDS.
 266.21 	The commissioner of management and budget, in consultation with legislative 
266.22 	nonpartisan fiscal staff, shall review and recommend the federal funds that should not be 
266.23 	subject to review by the Legislative Advisory Commission, under Minnesota Statutes, 
266.24 	section 3.3005. The commissioner shall make this recommendation before the 2017 
266.25 	regular legislative session.

266.26 	Sec. 66. LEGISLATIVE SURROGACY COMMISSION.
 266.27 		Subdivision 1.Membership. The Legislative Commission on Surrogacy shall 
266.28 	consist of 15 members, appointed as follows:
266.29 	(1) three members of the senate appointed by the senate majority leader;
266.30 	(2) three members of the senate appointed by the senate minority leader;
266.31 	(3) three members of the house of representatives appointed by the speaker of the 
266.32 	house;
266.33 	(4) three members of the house of representatives appointed by the house of 
266.34 	representatives minority leader;
267.1 	(5) the commissioner of human services or the commissioner's designee;
267.2 	(6) the commissioner of health or the commissioner's designee; and
267.3 	(7) a family court referee appointed by the chief justice of the state Supreme Court.
267.4 	Appointments must be made by June 1, 2016.
267.5 		Subd. 2.Chair. The commission shall elect a chair from among its members.
267.6 		Subd. 3.Meetings. The ranking majority member of the commission who is 
267.7 	appointed by the senate majority leader shall convene the first meeting by July 1, 2016. 
267.8 	The commission shall have at least six meetings but may not have more than ten meetings.
267.9 		Subd. 4.Conflict of interest. A commission member may not participate in or 
267.10 	vote on a decision of the commission in which the member has either a direct or indirect 
267.11 	personal financial interest. A witness at a public meeting of the commission must disclose 
267.12 	any financial conflict of interest.
267.13 		Subd. 5.Duties. The commission shall develop recommendations on public policy 
267.14 	and laws regarding surrogacy. To develop the recommendations, the commission shall 
267.15 	study surrogacy through public hearings, research, and deliberation. Topics for study 
267.16 	include, but are not limited to:
267.17 	(1) potential health and psychological effects and benefits on women who serve 
267.18 	as surrogates;
267.19 	(2) potential health and psychological effects and benefits on children born of 
267.20 	surrogates;
267.21 	(3) business practices of the fertility industry, including attorneys, brokers, and 
267.22 	clinics;
267.23 	(4) considerations related to different forms of surrogacy;
267.24 	(5) considerations related to the potential exploitation of women in surrogacy 
267.25 	arrangements;
267.26 	(6) contract law implications when a surrogacy contract is breached;
267.27 	(7) potential conflicts with statutes governing private adoption and termination 
267.28 	of parental rights;
267.29 	(8) potential for legal conflicts related to third-party reproduction, including conflicts 
267.30 	between or amongst the surrogate mother, the intended parents, the child, insurance 
267.31 	companies, and medical professionals;
267.32 	(9) public policy determinations of other jurisdictions with regard to surrogacy; and
267.33 	(10) information to be provided to a child born of a surrogate about the child's 
267.34 	biological and gestational parents.
267.35 		Subd. 6.Reporting. The commission must submit a report including its 
267.36 	recommendations and may draft legislation to implement its recommendations to 
268.1 	the chairs and ranking minority members of the legislative committees with primary 
268.2 	jurisdiction over health and judiciary in the house of representatives and senate by 
268.3 	December 15, 2016. On topics where the commission fails to reach consensus, a majority 
268.4 	and minority report shall be issued.
268.5 		Subd. 7.Staffing. The Legislative Coordinating Commission shall provide staffing 
268.6 	and administrative support to the commission.
268.7 		Subd. 8.Expiration. The commission expires the day after submitting the report 
268.8 	required under subdivision 6.

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

268.10 	Sec. 67. LCPFP STUDY OF JOINT BUDGET TARGET PROCESS; TIMING.
 268.11 	The Legislative Commission on Planning and Fiscal Policy shall study and make 
268.12 	recommendations to the legislature by January 15, 2017, on the process and timing for 
268.13 	the legislature to establish joint budget targets. In preparing its recommendations, the 
268.14 	commission must take public testimony.

268.15 	Sec. 68. RULEMAKING.
 268.16 	The Board of Barber Examiners may use expedited rulemaking procedures under 
268.17 	Minnesota Statutes, section 14.389, to amend Minnesota Rules, chapter 2100, to conform 
268.18 	with sections 29 to 52 and sections 69 and 70.

268.19 	EFFECTIVE DATE. This section is effective August 1, 2016.

268.20 	Sec. 69. TRANSITIONING APPRENTICE BARBERS TO REGISTERED 
268.21 	BARBERS.
 268.22 	An apprentice barber practicing on August 1, 2016, is eligible to apply for registered 
268.23 	barber status. An apprentice barber must take the registered barber examination to become 
268.24 	a registered barber. All apprentice barber registrations will be discontinued on December 
268.25 	31, 2017.

268.26 	EFFECTIVE DATE. This section is effective August 1, 2016.

268.27 	Sec. 70.  REPEALER.
 268.28 	Minnesota Statutes 2014, sections 154.03; 154.06; 154.11, subdivision 2; and 
268.29 	154.12, are repealed effective August 1, 2016.

269.1 	ARTICLE 14
269.2 	MISCELLANEOUS

269.3 	Section 1. [290.0685] CREDIT FOR PARENTS OF STILLBORN CHILDREN.
269.4 		Subdivision 1.Credit allowed. (a) An individual is allowed a credit against the 
269.5 	tax imposed by this chapter equal to $2,000 for each birth for which a certificate of 
269.6 	birth resulting in stillbirth has been issued under section 144.2151.  The credit under 
269.7 	this section is allowed only in the taxable year in which the stillbirth occurred and if 
269.8 	the child would have been a dependent of the taxpayer as defined in section 152 of the 
269.9 	Internal Revenue Code.
269.10 	(b) For a nonresident or part-year resident, the credit must be allocated based on the 
269.11 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
269.12 		Subd. 2.Credit refundable. If the amount of credit that an individual is 
269.13 	allowed under this section exceeds the individual's tax liability under this chapter, the 
269.14 	commissioner shall refund the excess to the individual.
269.15 		Subd. 3.Appropriation. An amount sufficient to pay the refunds required by this 
269.16 	section is appropriated to the commissioner from the general fund.

269.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
269.18 	December 31, 2015.

269.19 	Sec. 2. Minnesota Statutes 2014, section 297A.62, subdivision 3, is amended to read:
269.20 		Subd. 3.Manufactured housing and park trailers; modular housing. (a) For 
269.21 	retail sales of manufactured homes as defined in section 327.31, subdivision 6, for 
269.22 	residential uses, the sales tax under subdivisions 1 and 1a is imposed on 65 percent of the 
269.23 	dealer's cost of the manufactured home. For retail sales of new or used park trailers, as 
269.24 	defined in section 168.002, subdivision 23, the sales tax under subdivisions 1 and 1a is 
269.25 	imposed on 65 percent of the sales price of the park trailer.
269.26 	(b) For retail sales of a modular home as defined in section 297A.668, subdivision 8, 
269.27 	paragraph (b), for residential uses, the sales tax under subdivisions 1 and 1a is imposed on 
269.28 	65 percent of the modular home manufacturer's sales price of the modular home.

269.29 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
269.30 	June 30, 2016.

269.31 	Sec. 3. Minnesota Statutes 2014, section 299A.41, subdivision 3, is amended to read:
270.1 		Subd. 3.Killed in the line of duty. "Killed in the line of duty" does not include 
270.2 	deaths from natural causes, except as provided in this subdivision. In the case of a peace
270.3 	public safety officer, "killed in the line of duty" includes the death of an a public safety
270.4 	officer caused by accidental means while the peacepublic safety officer is acting in the 
270.5 	course and scope of duties as a peace public safety officer. Killed in the line of duty also 
270.6 	means if a public safety officer dies as the direct and proximate result of a heart attack, 
270.7 	stroke, or vascular rupture, that officer shall be presumed to have died as the direct and 
270.8 	proximate result of a personal injury sustained in the line of duty if:
270.9 	(1) that officer, while on duty:
270.10 	(i) engaged in a situation, and that engagement involved nonroutine stressful or 
270.11 	strenuous physical law enforcement, fire suppression, rescue, hazardous material response, 
270.12 	emergency medical services, prison security, disaster relief, or other emergency response 
270.13 	activity; or
270.14 	(ii) participated in a training exercise, and that participation involved nonroutine 
270.15 	stressful or strenuous physical activity;
270.16 	(2) that officer died as a result of a heart attack, stroke, or vascular rupture suffered:
270.17 	(i) while engaging or participating under clause (1);
270.18 	(ii) while still on duty after engaging or participating under clause (1); or 
270.19 	(iii) not later than 24 hours after engaging or participating under clause (1); and 
270.20 	(3) the presumption is not overcome by competent medical evidence to the contrary.

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

270.22 	Sec. 4. Minnesota Statutes 2014, section 299A.41, subdivision 4, is amended to read:
270.23 		Subd. 4.Public safety officer. "Public safety officer" includes:
270.24 	(1) a peace officer defined in section 626.84, subdivision 1, paragraph (c) or (d);
270.25 	(2) a correction officer employed at a correctional facility and charged with 
270.26 	maintaining the safety, security, discipline, and custody of inmates at the facility;
270.27 	(3) an individual employed on a full-time basis by the state or by a fire department of 
270.28 	a governmental subdivision of the state, who is engaged in any of the following duties:
270.29 	(i) firefighting;
270.30 	(ii) emergency motor vehicle operation;
270.31 	(iii) investigation into the cause and origin of fires;
270.32 	(iv) the provision of emergency medical services; or
270.33 	(v) hazardous material responder;
270.34 	(4) a legally enrolled member of a volunteer fire department or member of an 
270.35 	independent nonprofit firefighting corporation who is engaged in the hazards of firefighting;
271.1 	(5) a good samaritan while complying with the request or direction of a public 
271.2 	safety officer to assist the officer;
271.3 	(6) a reserve police officer or a reserve deputy sheriff while acting under the 
271.4 	supervision and authority of a political subdivision;
271.5 	(7) a driver or attendant with a licensed basic or advanced life-support transportation 
271.6 	service who is engaged in providing emergency care;
271.7 	(8) a first responder who is certified by the emergency medical services regulatory 
271.8 	board to perform basic emergency skills before the arrival of a licensed ambulance service 
271.9 	and who is a member of an organized service recognized by a local political subdivision 
271.10 	to respond to medical emergencies to provide initial medical care before the arrival of 
271.11 	an ambulance; and
271.12 	(9) a person, other than a state trooper, employed by the commissioner of public 
271.13 	safety and assigned to the State Patrol, whose primary employment duty is either Capitol 
271.14 	security or the enforcement of commercial motor vehicle laws and regulations.

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

271.16 	Sec. 5. APPROPRIATION; PUBLIC SAFETY.
 271.17 	$260,000 in fiscal year 2017 is appropriated from the general fund to the 
271.18 	commissioner of public safety for payment of public safety officer survivor benefits. This 
271.19 	is added to the appropriation in Laws 2015, chapter 75, article 1, section 5, subdivision 2, 
271.20 	paragraph (b).

271.21 	ARTICLE 15
271.22 	CHILDREN AND FAMILIES

271.23 	Section 1. Minnesota Statutes 2014, section 145.4716, subdivision 2, is amended to read:
271.24 		Subd. 2.Duties of director. The director of child sex trafficking prevention is 
271.25 	responsible for the following:
271.26 	(1) developing and providing comprehensive training on sexual exploitation of 
271.27 	youth for social service professionals, medical professionals, public health workers, and 
271.28 	criminal justice professionals;
271.29 	(2) collecting, organizing, maintaining, and disseminating information on sexual 
271.30 	exploitation and services across the state, including maintaining a list of resources on the 
271.31 	Department of Health Web site;
271.32 	(3) monitoring and applying for federal funding for antitrafficking efforts that may 
271.33 	benefit victims in the state;
272.1 	(4) managing grant programs established under sections 145.4716 to 145.4718, 
272.2 	and 609.3241, paragraph (c), clause (3);
272.3 	(5) managing the request for proposals for grants for comprehensive services, 
272.4 	including trauma-informed, culturally specific services;
272.5 	(6) identifying best practices in serving sexually exploited youth, as defined in 
272.6 	section 260C.007, subdivision 31;
272.7 	(7) providing oversight of and technical support to regional navigators pursuant to 
272.8 	section 145.4717;
272.9 	(8) conducting a comprehensive evaluation of the statewide program for safe harbor 
272.10 	of sexually exploited youth; and
272.11 	(9) developing a policy consistent with the requirements of chapter 13 for sharing 
272.12 	data related to sexually exploited youth, as defined in section 260C.007, subdivision 31, 
272.13 	among regional navigators and community-based advocates.

272.14 	Sec. 2. Minnesota Statutes 2014, section 145.4716, is amended by adding a subdivision 
272.15 	to read:
272.16 		Subd. 3.Youth eligible for services. Youth 24 years of age or younger shall be 
272.17 	eligible for all services, support, and programs provided under this section and section 
272.18 	145.4717, and all shelter, housing beds, and services provided by the commissioner of 
272.19 	human services to sexually exploited youth and youth at risk of sexual exploitation.

272.20 	Sec. 3. Minnesota Statutes 2014, section 256D.051, subdivision 6b, is amended to read:
272.21 		Subd. 6b.Federal reimbursement. (a) Federal financial participation from 
272.22 	the United States Department of Agriculture for food stamp employment and training 
272.23 	expenditures that are eligible for reimbursement through the food stamp employment and 
272.24 	training program are dedicated funds and are annually appropriated to the commissioner 
272.25 	of human services for the operation of the food stamp employment and training program.
272.26 	(b) The appropriation must be used for skill attainment through employment, 
272.27 	training, and support services for food stamp participants. By February 15, 2017, the 
272.28 	commissioner shall report to the chairs and ranking minority members of the legislative 
272.29 	committees having jurisdiction over the food stamp employment and training program on 
272.30 	the progress of securing additional federal reimbursement dollars under this program.
272.31 	(c) Federal financial participation for the nonstate portion of food stamp employment 
272.32 	and training costs must be paid to the county agency or service provider that incurred 
272.33 	the costs.

272.34 	EFFECTIVE DATE. This section is effective October 1, 2016.

273.1 	Sec. 4. Minnesota Statutes 2014, section 256N.26, subdivision 3, is amended to read:
273.2 		Subd. 3.Basic monthly rate. From January 1, 2015 July 1, 2017, to June 30, 2016
273.3 	2018, the basic monthly rate must be according to the following schedule:

273.4		Ages 0-5
	$565$650 per month
	
273.5		Ages 6-12
	$670$770 per month
	
273.6		Ages 13 and older
	$790$910 per month

273.7 	Sec. 5. Minnesota Statutes 2015 Supplement, section 256P.06, subdivision 3, is 
273.8 	amended to read:
273.9 		Subd. 3.Income inclusions. The following must be included in determining the 
273.10 	income of an assistance unit:
273.11 	(1) earned income; and
273.12 	(2) unearned income, which includes:
273.13 	(i) interest and dividends from investments and savings;
273.14 	(ii) capital gains as defined by the Internal Revenue Service from any sale of real 
273.15 	property;
273.16 	(iii) proceeds from rent and contract for deed payments in excess of the principal 
273.17 	and interest portion owed on property;
273.18 	(iv) income from trusts, excluding special needs and supplemental needs trusts;
273.19 	(v) interest income from loans made by the participant or household;
273.20 	(vi) cash prizes and winnings;
273.21 	(vii) unemployment insurance income;
273.22 	(viii) retirement, survivors, and disability insurance payments;
273.23 	(ix) nonrecurring income over $60 per quarter unless earmarked and used for the 
273.24 	purpose for which it is intended. Income and use of this income is subject to verification 
273.25 	requirements under section 256P.04;
273.26 	(x) retirement benefits;
273.27 	(xi) cash assistance benefits, as defined by each program in chapters 119B, 256D, 
273.28 	256I, and 256J;
273.29 	(xii) tribal per capita payments unless excluded by federal and state law;
273.30 	(xiii) income and payments from service and rehabilitation programs that meet 
273.31 	or exceed the state's minimum wage rate;
273.32 	(xiv) income from members of the United States armed forces unless excluded from 
273.33 	income taxes according to federal or state law;
273.34 	(xv) all child support payments for programs under chapters 119B, 256D, and 256I;
274.1 	(xvi) the amount of current child support received that exceeds $100 for assistance 
274.2 	units with one child and $200 for assistance units with two or more children for programs 
274.3 	under chapter 256J; and
274.4 	(xvii) spousal support.

274.5 	Sec. 6. [260C.125] CASE TRANSFER PROCESS.
274.6 		Subdivision 1.Purpose. This section pertains to the transfer of responsibility for 
274.7 	the placement and care of an Indian child in out-of-home placement from the responsible 
274.8 	social services agency to a tribal title IV-E agency or an Indian tribe in and outside of 
274.9 	Minnesota with a title IV-E agreement.
274.10 		Subd. 2.Establishment of transfer procedures. The responsible social services 
274.11 	agency shall establish and maintain procedures, in consultation with Indian tribes, for the 
274.12 	transfer of responsibility for placement and care of a child to a tribal agency. Transfer of a 
274.13 	child's case under this section shall not affect the child's title IV-E and Medicaid eligibility. 
274.14 		Subd. 3.Title IV-E eligibility. If a child's title IV-E eligibility has not been 
274.15 	determined by the responsible social services agency by the time of transfer, it shall be 
274.16 	established at the time of the transfer by the responsible social services agency.
274.17 		Subd. 4.Documentation and information. Essential documents and information 
274.18 	shall be transferred to a tribal agency, including but not limited to:
274.19 	(1) district court judicial determinations to the effect that continuation in the home 
274.20 	from which the child was removed would be contrary to the welfare of the child and that 
274.21 	reasonable efforts were made to ensure placement prevention and family reunification 
274.22 	pursuant to section 260.012;
274.23 	(2) documentation related to the child's permanency proceeding under sections 
274.24 	260C.503 to 260C.521;
274.25 	(3) documentation from the responsible social services agency related to the child's 
274.26 	title IV-E eligibility;
274.27 	(4) documentation regarding the child's eligibility or potential eligibility for other 
274.28 	federal benefits;
274.29 	(5) the child's case plan, developed pursuant to the Social Security Act, United 
274.30 	States Code, title 42, sections 675(1) and 675a, including health and education records 
274.31 	of the child pursuant to the Social Security Act, United States Code, title 42, section 
274.32 	675(1)(c); and section 260C.212, subdivision 1, and information; and
274.33 	(6) documentation of the child's placement setting, including a copy of the most 
274.34 	recent provider's license.

275.1 	Sec. 7. Minnesota Statutes 2015 Supplement, section 260C.203, is amended to read:
275.2 	260C.203 ADMINISTRATIVE OR COURT REVIEW OF PLACEMENTS.
275.3 	(a) Unless the court is conducting the reviews required under section 260C.202, 
275.4 	there shall be an administrative review of the out-of-home placement plan of each child 
275.5 	placed in foster care no later than 180 days after the initial placement of the child in foster 
275.6 	care and at least every six months thereafter if the child is not returned to the home of the 
275.7 	parent or parents within that time. The out-of-home placement plan must be monitored and 
275.8 	updated at each administrative review. The administrative review shall be conducted by 
275.9 	the responsible social services agency using a panel of appropriate persons at least one of 
275.10 	whom is not responsible for the case management of, or the delivery of services to, either 
275.11 	the child or the parents who are the subject of the review. The administrative review shall 
275.12 	be open to participation by the parent or guardian of the child and the child, as appropriate.
275.13 	(b) As an alternative to the administrative review required in paragraph (a), the court 
275.14 	may, as part of any hearing required under the Minnesota Rules of Juvenile Protection 
275.15 	Procedure, conduct a hearing to monitor and update the out-of-home placement plan 
275.16 	pursuant to the procedure and standard in section 260C.201, subdivision 6, paragraph 
275.17 	(d). The party requesting review of the out-of-home placement plan shall give parties to 
275.18 	the proceeding notice of the request to review and update the out-of-home placement 
275.19 	plan. A court review conducted pursuant to section 260C.141, subdivision 2; 260C.193; 
275.20 	260C.201, subdivision 1; 260C.202; 260C.204; 260C.317; or 260D.06 shall satisfy the 
275.21 	requirement for the review so long as the other requirements of this section are met.
275.22 	(c) As appropriate to the stage of the proceedings and relevant court orders, the 
275.23 	responsible social services agency or the court shall review:
275.24 	(1) the safety, permanency needs, and well-being of the child;
275.25 	(2) the continuing necessity for and appropriateness of the placement;
275.26 	(3) the extent of compliance with the out-of-home placement plan;
275.27 	(4) the extent of progress that has been made toward alleviating or mitigating the 
275.28 	causes necessitating placement in foster care;
275.29 	(5) the projected date by which the child may be returned to and safely maintained in 
275.30 	the home or placed permanently away from the care of the parent or parents or guardian; and
275.31 	(6) the appropriateness of the services provided to the child.
275.32 	(d) When a child is age 14 or older,:
275.33 	(1) in addition to any administrative review conducted by the responsible social 
275.34 	services agency, at the in-court review required under section 260C.317, subdivision 
275.35 	3, clause (3), or 260C.515, subdivision 5 or 6, the court shall review the independent 
275.36 	living plan required under section 260C.212, subdivision 1, paragraph (c), clause (12), 
276.1 	and the provision of services to the child related to the well-being of the child as the 
276.2 	child prepares to leave foster care. The review shall include the actual plans related to 
276.3 	each item in the plan necessary to the child's future safety and well-being when the child 
276.4 	is no longer in foster care.; and
276.5 	(e) At the court review required under paragraph (d) for a child age 14 or older, 
276.6 	the following procedures apply:
276.7 	(1) six months before the child is expected to be discharged from foster care, the 
276.8 	responsible social services agency shall give the written notice required under section 
276.9 	260C.451, subdivision 1, regarding the right to continued access to services for certain 
276.10 	children in foster care past age 18 and of the right to appeal a denial of social services 
276.11 	under section 256.045. The agency shall file a copy of the notice, including the right to 
276.12 	appeal a denial of social services, with the court. If the agency does not file the notice by 
276.13 	the time the child is age 17-1/2, the court shall require the agency to give it;
276.14 	(2) consistent with the requirements of the independent living plan, the court shall 
276.15 	review progress toward or accomplishment of the following goals:
276.16 	(i) the child has obtained a high school diploma or its equivalent;
276.17 	(ii) the child has completed a driver's education course or has demonstrated the 
276.18 	ability to use public transportation in the child's community;
276.19 	(iii) the child is employed or enrolled in postsecondary education;
276.20 	(iv) the child has applied for and obtained postsecondary education financial aid for 
276.21 	which the child is eligible;
276.22 	(v) the child has health care coverage and health care providers to meet the child's 
276.23 	physical and mental health needs;
276.24 	(vi) the child has applied for and obtained disability income assistance for which 
276.25 	the child is eligible;
276.26 	(vii) the child has obtained affordable housing with necessary supports, which does 
276.27 	not include a homeless shelter;
276.28 	(viii) the child has saved sufficient funds to pay for the first month's rent and a 
276.29 	damage deposit;
276.30 	(ix) the child has an alternative affordable housing plan, which does not include a 
276.31 	homeless shelter, if the original housing plan is unworkable;
276.32 	(x) the child, if male, has registered for the Selective Service; and
276.33 	(xi) the child has a permanent connection to a caring adult; and.
276.34 	(3) the court shall ensure that the responsible agency in conjunction with the 
276.35 	placement provider assists the child in obtaining the following documents prior to the 
276.36 	child's leaving foster care: a Social Security card; the child's birth certificate; a state 
277.1 	identification card or driver's license, tribal enrollment identification card, green card, or 
277.2 	school visa; the child's school, medical, and dental records; a contact list of the child's 
277.3 	medical, dental, and mental health providers; and contact information for the child's 
277.4 	siblings, if the siblings are in foster care.
277.5 	(f) For a child who will be discharged from foster care at age 18 or older, the 
277.6 	responsible social services agency is required to develop a personalized transition plan as 
277.7 	directed by the youth. The transition plan must be developed during the 90-day period 
277.8 	immediately prior to the expected date of discharge. The transition plan must be as 
277.9 	detailed as the child may elect and include specific options on housing, health insurance, 
277.10 	education, local opportunities for mentors and continuing support services, and work force 
277.11 	supports and employment services. The agency shall ensure that the youth receives, at 
277.12 	no cost to the youth, a copy of the youth's consumer credit report as defined in section 
277.13 	13C.001 and assistance in interpreting and resolving any inaccuracies in the report. The 
277.14 	plan must include information on the importance of designating another individual to 
277.15 	make health care treatment decisions on behalf of the child if the child becomes unable 
277.16 	to participate in these decisions and the child does not have, or does not want, a relative 
277.17 	who would otherwise be authorized to make these decisions. The plan must provide the 
277.18 	child with the option to execute a health care directive as provided under chapter 145C. 
277.19 	The agency shall also provide the youth with appropriate contact information if the youth 
277.20 	needs more information or needs help dealing with a crisis situation through age 21.

277.21 	Sec. 8. Minnesota Statutes 2015 Supplement, section 260C.212, subdivision 1, is 
277.22 	amended to read:
277.23 		Subdivision 1.Out-of-home placement; plan. (a) An out-of-home placement plan 
277.24 	shall be prepared within 30 days after any child is placed in foster care by court order or a 
277.25 	voluntary placement agreement between the responsible social services agency and the 
277.26 	child's parent pursuant to section 260C.227 or chapter 260D.
277.27 	(b) An out-of-home placement plan means a written document which is prepared 
277.28 	by the responsible social services agency jointly with the parent or parents or guardian 
277.29 	of the child and in consultation with the child's guardian ad litem, the child's tribe, if the 
277.30 	child is an Indian child, the child's foster parent or representative of the foster care facility, 
277.31 	and, where appropriate, the child. When a child is age 14 or older, the child may include 
277.32 	two other individuals on the team preparing the child's out-of-home placement plan. The 
277.33 	child may select one member of the case planning team to be designated as the child's 
277.34 	advisor and to advocate with respect to the application of the reasonable and prudent 
277.35 	parenting standards. The responsible social services agency may reject an individual 
278.1 	selected by the child if the agency has good cause to believe that the individual would 
278.2 	not act in the best interest of the child. For a child in voluntary foster care for treatment 
278.3 	under chapter 260D, preparation of the out-of-home placement plan shall additionally 
278.4 	include the child's mental health treatment provider. For a child 18 years of age or older, 
278.5 	the responsible social services agency shall involve the child and the child's parents as 
278.6 	appropriate. As appropriate, the plan shall be:
278.7 	(1) submitted to the court for approval under section 260C.178, subdivision 7;
278.8 	(2) ordered by the court, either as presented or modified after hearing, under section 
278.9 	260C.178, subdivision 7, or 260C.201, subdivision 6; and
278.10 	(3) signed by the parent or parents or guardian of the child, the child's guardian ad 
278.11 	litem, a representative of the child's tribe, the responsible social services agency, and, if 
278.12 	possible, the child.
278.13 	(c) The out-of-home placement plan shall be explained to all persons involved in its 
278.14 	implementation, including the child who has signed the plan, and shall set forth:
278.15 	(1) a description of the foster care home or facility selected, including how the 
278.16 	out-of-home placement plan is designed to achieve a safe placement for the child in the 
278.17 	least restrictive, most family-like, setting available which is in close proximity to the home 
278.18 	of the parent or parents or guardian of the child when the case plan goal is reunification, 
278.19 	and how the placement is consistent with the best interests and special needs of the child 
278.20 	according to the factors under subdivision 2, paragraph (b);
278.21 	(2) the specific reasons for the placement of the child in foster care, and when 
278.22 	reunification is the plan, a description of the problems or conditions in the home of the 
278.23 	parent or parents which necessitated removal of the child from home and the changes the 
278.24 	parent or parents must make in order for the child to safely return home;
278.25 	(3) a description of the services offered and provided to prevent removal of the child 
278.26 	from the home and to reunify the family including:
278.27 	(i) the specific actions to be taken by the parent or parents of the child to eliminate 
278.28 	or correct the problems or conditions identified in clause (2), and the time period during 
278.29 	which the actions are to be taken; and
278.30 	(ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made 
278.31 	to achieve a safe and stable home for the child including social and other supportive 
278.32 	services to be provided or offered to the parent or parents or guardian of the child, the 
278.33 	child, and the residential facility during the period the child is in the residential facility;
278.34 	(4) a description of any services or resources that were requested by the child or the 
278.35 	child's parent, guardian, foster parent, or custodian since the date of the child's placement 
279.1 	in the residential facility, and whether those services or resources were provided and if 
279.2 	not, the basis for the denial of the services or resources;
279.3 	(5) the visitation plan for the parent or parents or guardian, other relatives as defined 
279.4 	in section 260C.007, subdivision 26b or 27, and siblings of the child if the siblings are not 
279.5 	placed together in foster care, and whether visitation is consistent with the best interest 
279.6 	of the child, during the period the child is in foster care;
279.7 	(6) when a child cannot return to or be in the care of either parent, documentation 
279.8 	of steps to finalize adoption as the permanency plan for the child through reasonable 
279.9 	efforts to place the child for adoption. At a minimum, the documentation must include 
279.10 	consideration of whether adoption is in the best interests of the child, child-specific 
279.11 	recruitment efforts such as relative search and the use of state, regional, and national 
279.12 	adoption exchanges to facilitate orderly and timely placements in and outside of the state. 
279.13 	A copy of this documentation shall be provided to the court in the review required under 
279.14 	section 260C.317, subdivision 3, paragraph (b);
279.15 	(7) when a child cannot return to or be in the care of either parent, documentation 
279.16 	of steps to finalize the transfer of permanent legal and physical custody to a relative as 
279.17 	the permanency plan for the child. This documentation must support the requirements of 
279.18 	the kinship placement agreement under section 256N.22 and must include the reasonable 
279.19 	efforts used to determine that it is not appropriate for the child to return home or be 
279.20 	adopted, and reasons why permanent placement with a relative through a Northstar kinship 
279.21 	assistance arrangement is in the child's best interest; how the child meets the eligibility 
279.22 	requirements for Northstar kinship assistance payments; agency efforts to discuss adoption 
279.23 	with the child's relative foster parent and reasons why the relative foster parent chose not 
279.24 	to pursue adoption, if applicable; and agency efforts to discuss with the child's parent or 
279.25 	parents the permanent transfer of permanent legal and physical custody or the reasons 
279.26 	why these efforts were not made;
279.27 	(8) efforts to ensure the child's educational stability while in foster care, including 
279.28 	for a child who attained the minimum age for compulsory school attendance under state 
279.29 	law and is enrolled full time in elementary or secondary school, or instructed in elementary 
279.30 	or secondary education at home, or instructed in an independent study elementary or 
279.31 	secondary program, or incapable of attending school on a full-time basis due to a medical 
279.32 	condition that is documented and supported by regularly updated information in the child's 
279.33 	case plan. Educational stability efforts include:
279.34 	(i) efforts to ensure that the child remains in the same school in which the child was 
279.35 	enrolled prior to placement or upon the child's move from one placement to another, 
280.1 	including efforts to work with the local education authorities to ensure the child's 
280.2 	educational stability and attendance; or
280.3 	(ii) if it is not in the child's best interest to remain in the same school that the child 
280.4 	was enrolled in prior to placement or move from one placement to another, efforts to 
280.5 	ensure immediate and appropriate enrollment for the child in a new school;
280.6 	(9) the educational records of the child including the most recent information 
280.7 	available regarding:
280.8 	(i) the names and addresses of the child's educational providers;
280.9 	(ii) the child's grade level performance;
280.10 	(iii) the child's school record;
280.11 	(iv) a statement about how the child's placement in foster care takes into account 
280.12 	proximity to the school in which the child is enrolled at the time of placement; and
280.13 	(v) any other relevant educational information;
280.14 	(10) the efforts by the local responsible social services agency to ensure the oversight 
280.15 	and continuity of health care services for the foster child, including:
280.16 	(i) the plan to schedule the child's initial health screens;
280.17 	(ii) how the child's known medical problems and identified needs from the screens, 
280.18 	including any known communicable diseases, as defined in section 144.4172, subdivision 
280.19 	2, willshall be monitored and treated while the child is in foster care;
280.20 	(iii) how the child's medical information willshall be updated and shared, including 
280.21 	the child's immunizations;
280.22 	(iv) who is responsible to coordinate and respond to the child's health care needs, 
280.23 	including the role of the parent, the agency, and the foster parent;
280.24 	(v) who is responsible for oversight of the child's prescription medications;
280.25 	(vi) how physicians or other appropriate medical and nonmedical professionals will 
280.26 	shall be consulted and involved in assessing the health and well-being of the child and 
280.27 	determine the appropriate medical treatment for the child; and
280.28 	(vii) the responsibility to ensure that the child has access to medical care through 
280.29 	either medical insurance or medical assistance;
280.30 	(11) the health records of the child including information available regarding:
280.31 	(i) the names and addresses of the child's health care and dental care providers;
280.32 	(ii) a record of the child's immunizations;
280.33 	(iii) the child's known medical problems, including any known communicable 
280.34 	diseases as defined in section 144.4172, subdivision 2;
280.35 	(iv) the child's medications; and
281.1 	(v) any other relevant health care information such as the child's eligibility for 
281.2 	medical insurance or medical assistance;
281.3 	(12) an independent living plan for a child age 14 years of age or older, developed in 
281.4 	consultation with the child. The child may select one member of the case planning team to 
281.5 	be designated as the child's advisor and to advocate with respect to the application of the 
281.6 	reasonable and prudent parenting standards in subdivision 14. The plan should include, 
281.7 	but not be limited to, the following objectives:
281.8 	(i) educational, vocational, or employment planning;
281.9 	(ii) health care planning and medical coverage;
281.10 	(iii) transportation including, where appropriate, assisting the child in obtaining a 
281.11 	driver's license;
281.12 	(iv) money management, including the responsibility of the responsible social 
281.13 	services agency to ensure that the youthchild annually receives, at no cost to the youth
281.14 	child, a consumer report as defined under section 13C.001 and assistance in interpreting 
281.15 	and resolving any inaccuracies in the report;
281.16 	(v) planning for housing;
281.17 	(vi) social and recreational skills;
281.18 	(vii) establishing and maintaining connections with the child's family and 
281.19 	community; and
281.20 	(viii) regular opportunities to engage in age-appropriate or developmentally 
281.21 	appropriate activities typical for the child's age group, taking into consideration the 
281.22 	capacities of the individual child; and
281.23 	(13) for a child in voluntary foster care for treatment under chapter 260D, diagnostic 
281.24 	and assessment information, specific services relating to meeting the mental health care 
281.25 	needs of the child, and treatment outcomes.; and
281.26 	(14) for a child 14 years of age or older, a signed acknowledgment that describes 
281.27 	the child's rights regarding education, health care, visitation, safety and protection from 
281.28 	exploitation, and court participation; receipt of the documents identified in section 
281.29 	260C.452; and receipt of an annual credit report. The acknowledgment shall state that the 
281.30 	rights were explained in an age-appropriate manner to the child.
281.31 	(d) The parent or parents or guardian and the child each shall have the right to legal 
281.32 	counsel in the preparation of the case plan and shall be informed of the right at the time 
281.33 	of placement of the child. The child shall also have the right to a guardian ad litem. 
281.34 	If unable to employ counsel from their own resources, the court shall appoint counsel 
281.35 	upon the request of the parent or parents or the child or the child's legal guardian. The 
282.1 	parent or parents may also receive assistance from any person or social services agency 
282.2 	in preparation of the case plan.
282.3 	After the plan has been agreed upon by the parties involved or approved or ordered 
282.4 	by the court, the foster parents shall be fully informed of the provisions of the case plan 
282.5 	and shall be provided a copy of the plan.
282.6 	Upon discharge from foster care, the parent, adoptive parent, or permanent legal and 
282.7 	physical custodian, as appropriate, and the child, if appropriate, must be provided with 
282.8 	a current copy of the child's health and education record.

282.9 	Sec. 9. Minnesota Statutes 2015 Supplement, section 260C.212, subdivision 14, 
282.10 	is amended to read:
282.11 		Subd. 14.Support age-appropriate and developmentally appropriate activities 
282.12 	for foster children. (a) Responsible social services agencies and licensed child-placing 
282.13 	agencies shall support a foster child's emotional and developmental growth by permitting 
282.14 	the child to participate in activities or events that are generally accepted as suitable 
282.15 	for children of the same chronological age or are developmentally appropriate for the 
282.16 	child. "Developmentally appropriate" means based on a child's cognitive, emotional, 
282.17 	physical, and behavioral capacities that are typical for an age or age group. Foster 
282.18 	parents and residential facility staff are permitted to allow foster children to participate in 
282.19 	extracurricular, social, or cultural activities that are typical for the child's age by applying 
282.20 	reasonable and prudent parenting standards. 
282.21 	(b) "Reasonable and prudent parenting" means the standards are characterized 
282.22 	by careful and sensible parenting decisions that maintain the child's health and safety, 
282.23 	cultural, religious, and are made in the child's tribal values, and  best interest interests 
282.24 	while encouraging the child's emotional and developmental growth.
282.25 	(c) The commissioner shall provide guidance about the childhood activities and 
282.26 	factors a foster parent and authorized residential facility staff must consider when applying 
282.27 	the reasonable and prudent parenting standards. The factors must include the:
282.28 	(1) child's age, maturity, and developmental level;
282.29 	(2) risk of activity;
282.30 	(3) best interests of the child;
282.31 	(4) importance of the experience in the child's emotional and developmental growth;
282.32 	(5) importance of a family-like experience;
282.33 	(6) behavioral history of the child; and
282.34 	(7) wishes of the child's parent or legal guardian, as appropriate.
283.1 	(d) A residential facility licensed under Minnesota Rules, chapter 2960, must have 
283.2 	at least one onsite staff person who is trained on the standards according to section 
283.3 	260C.215, subdivision 4, and authorized to apply the reasonable and prudent parenting 
283.4 	standards to decisions involving the approval of a foster child's participation in age and 
283.5 	developmentally appropriate extracurricular, social, or cultural activities. The onsite staff 
283.6 	person referenced in this paragraph is not required to be available 24 hours per day.
283.7 	(e) The foster parent or designated staff at residential facilities demonstrating 
283.8 	compliance with the reasonable and prudent parenting standards shall not incur civil 
283.9 	liability if a foster child is harmed or injured because of participating in approved 
283.10 	extracurricular, enrichment, cultural, and social activities.

283.11 	Sec. 10. Minnesota Statutes 2015 Supplement, section 260C.215, subdivision 4, 
283.12 	is amended to read:
283.13 		Subd. 4.Duties of commissioner. The commissioner of human services shall:
283.14 	(1) provide practice guidance to responsible social services agencies and licensed 
283.15 	child-placing agencies that reflect federal and state laws and policy direction on placement 
283.16 	of children;
283.17 	(2) develop criteria for determining whether a prospective adoptive or foster family 
283.18 	has the ability to understand and validate the child's cultural background;
283.19 	(3) provide a standardized training curriculum for adoption and foster care workers 
283.20 	and administrators who work with children. Training must address the following objectives:
283.21 	(i) developing and maintaining sensitivity to all cultures;
283.22 	(ii) assessing values and their cultural implications;
283.23 	(iii) making individualized placement decisions that advance the best interests of a 
283.24 	particular child under section 260C.212, subdivision 2; and
283.25 	(iv) issues related to cross-cultural placement;
283.26 	(4) provide a training curriculum for all prospective adoptive and foster families 
283.27 	that prepares them to care for the needs of adoptive and foster children taking into 
283.28 	consideration the needs of children outlined in section 260C.212, subdivision 2, paragraph 
283.29 	(b), and, as necessary, preparation is continued after placement of the child and includes 
283.30 	the knowledge and skills related to reasonable and prudent parenting standards for the 
283.31 	participation of the child in age or developmentally appropriate activities, according to 
283.32 	section 260C.212, subdivision 14;
283.33 	(5) develop and provide to responsible social services agencies and licensed 
283.34 	child-placing agencies a home study format to assess the capacities and needs of 
283.35 	prospective adoptive and foster families. The format must address problem-solving skills; 
284.1 	parenting skills; evaluate the degree to which the prospective family has the ability 
284.2 	to understand and validate the child's cultural background, and other issues needed to 
284.3 	provide sufficient information for agencies to make an individualized placement decision 
284.4 	consistent with section 260C.212, subdivision 2. For a study of a prospective foster parent, 
284.5 	the format must also address the capacity of the prospective foster parent to provide a 
284.6 	safe, healthy, smoke-free home environment. If a prospective adoptive parent has also 
284.7 	been a foster parent, any update necessary to a home study for the purpose of adoption 
284.8 	may be completed by the licensing authority responsible for the foster parent's license. 
284.9 	If a prospective adoptive parent with an approved adoptive home study also applies for 
284.10 	a foster care license, the license application may be made with the same agency which 
284.11 	provided the adoptive home study; and
284.12 	(6) consult with representatives reflecting diverse populations from the councils 
284.13 	established under sections 3.922 and 15.0145, and other state, local, and community 
284.14 	organizations.

284.15 	Sec. 11. Minnesota Statutes 2015 Supplement, section 260C.451, subdivision 6, 
284.16 	is amended to read:
284.17 		Subd. 6.Reentering foster care and accessing services after age 18 years of 
284.18 	age and up to 21 years of age. (a) Upon request of an individual between the ages of 
284.19 	18 and 21 who had been under the guardianship of the commissioner and who has left 
284.20 	foster care without being adopted, the responsible social services agency which had 
284.21 	been the commissioner's agent for purposes of the guardianship shall develop with the 
284.22 	individual a plan to increase the individual's ability to live safely and independently using 
284.23 	the plan requirements of section 260C.212, subdivision 1, paragraph (c), clause (12), and 
284.24 	to assist the individual to meet one or more of the eligibility criteria in subdivision 4 if 
284.25 	the individual wants to reenter foster care. The responsible social services agency shall 
284.26 	provide foster care as required to implement the plan. The responsible social services 
284.27 	agency shall enter into a voluntary placement agreement under section 260C.229 with the 
284.28 	individual if the plan includes foster care.
284.29 	(b) Individuals who had not been under the guardianship of the commissioner of 
284.30 	human services prior to 18 years of age 18 and are between the ages of 18 and 21 may ask 
284.31 	to reenter foster care after age 18 and, to the extent funds are available, the responsible 
284.32 	social services agency that had responsibility for planning for the individual before 
284.33 	discharge from foster care may provide foster care or other services to the individual for 
284.34 	the purpose of increasing the individual's ability to live safely and independently and to 
284.35 	meet the eligibility criteria in subdivision 3a, if the individual:
285.1 	(1) was in foster care for the six consecutive months prior to the person's 18th 
285.2 	birthday and was not discharged home, adopted, or received into a relative's home under a 
285.3 	transfer of permanent legal and physical custody under section 260C.515, subdivision 4; or
285.4 	(2) was discharged from foster care while on runaway status after age 15.
285.5 	(c) In conjunction with a qualifying and eligible individual under paragraph (b) and 
285.6 	other appropriate persons, the responsible social services agency shall develop a specific 
285.7 	plan related to that individual's vocational, educational, social, or maturational needs and, 
285.8 	to the extent funds are available, provide foster care as required to implement the plan. 
285.9 	The responsible social services agency shall enter into a voluntary placement agreement 
285.10 	with the individual if the plan includes foster care.
285.11 	(d) YouthA child who left foster care while under guardianship of the commissioner 
285.12 	of human services retain retains eligibility for foster care for placement at any time 
285.13 	between the ages of 18 and prior to  21 years of age.

285.14 	Sec. 12. Minnesota Statutes 2014, section 260C.451, is amended by adding a 
285.15 	subdivision to read:
285.16 		Subd. 9.Administrative or court review of placements. (a) The court shall 
285.17 	conduct reviews at least annually to ensure the responsible social services agency is 
285.18 	making reasonable efforts to finalize the permanency plan for the child.
285.19 	(b) The court shall find that the responsible social services agency is making 
285.20 	reasonable efforts to finalize the permanency plan for the child when the responsible 
285.21 	social services agency:
285.22 	(1) provides appropriate support to the child and foster care provider to ensure 
285.23 	continuing stability and success in placement;
285.24 	(2) works with the child to plan for transition to adulthood and assists the child in 
285.25 	demonstrating progress in achieving related goals;
285.26 	(3) works with the child to plan for independent living skills and assists the child in 
285.27 	demonstrating progress in achieving independent living goals; and
285.28 	(4) prepares the child for independence according to sections 260C.203, paragraph 
285.29 	(d), and 260C.452, subdivision 4.
285.30 	(c) The responsible social services agency must ensure that an administrative review 
285.31 	that meets the requirements of this section and section 260C.203 is completed at least six 
285.32 	months after each of the court's annual reviews.

285.33 	Sec. 13. [260C.452] SUCCESSFUL TRANSITION TO ADULTHOOD.
286.1 		Subdivision 1.Scope. This section pertains to a child who is under the guardianship 
286.2 	of the commissioner of human services, or who has a permanency disposition of 
286.3 	permanent custody to the agency, or who will leave foster care at 18 to 21 years of age.
286.4 		Subd. 2.Independent living plan. When the child is 14 years of age or older, 
286.5 	the responsible social services agency, in consultation with the child, shall complete 
286.6 	the independent living plan according to section 260C.212, subdivision 1, paragraph 
286.7 	(c), clause (12).
286.8 		Subd. 3.Notification. Six months before the child is expected to be discharged from 
286.9 	foster care, the responsible social services agency shall provide written notice to the child 
286.10 	regarding the right to continued access to services for certain children in foster care past 
286.11 	18 years of age and of the right to appeal a denial of social services under section 256.045.
286.12 		Subd. 4.Administrative or court review of placements. (a) When the child is 14 
286.13 	years of age or older, the court, in consultation with the child, shall review the independent 
286.14 	living plan according to section 260C.203, paragraph (d).
286.15 	(b) The responsible social services agency shall file a copy of the notification 
286.16 	required in subdivision 3 with the court. If the responsible social services agency does 
286.17 	not file the notice by the time the child is 17-1/2 years of age, the court shall require the 
286.18 	responsible social services agency to file the notice.
286.19 	(c) The court shall ensure that the responsible social services agency assists the child 
286.20 	in obtaining the following documents before the child leaves foster care: a Social Security 
286.21 	card; an official or certified copy of the child's birth certificate; a state identification card 
286.22 	or driver's license, tribal enrollment identification card, green card, or school visa; health 
286.23 	insurance information; the child's school, medical, and dental records; a contact list of 
286.24 	the child's medical, dental, and mental health providers; and contact information for the 
286.25 	child's siblings, if the siblings are in foster care.
286.26 	(d) For a child who will be discharged from foster care at 18 years of age or older, 
286.27 	the responsible social services agency must develop a personalized transition plan as 
286.28 	directed by the child during the 90-day period immediately prior to the expected date of 
286.29 	discharge. The transition plan must be as detailed as the child elects and include specific 
286.30 	options, including but not limited to:
286.31 	(1) affordable housing with necessary supports that does not include a homeless 
286.32 	shelter;
286.33 	(2) health insurance, including eligibility for medical assistance as defined in section 
286.34 	256B.055, subdivision 17;
286.35 	(3) education, including application to the Education and Training Voucher Program;
287.1 	(4) local opportunities for mentors and continuing support services, including the 
287.2 	Healthy Transitions and Homeless Prevention program, if available;
287.3 	(5) workforce supports and employment services;
287.4 	(6) a copy of the child's consumer credit report as defined in section 13C.001 and 
287.5 	assistance in interpreting and resolving any inaccuracies in the report, at no cost to the child;
287.6 	(7) information on executing a health care directive under chapter 145C and on the 
287.7 	importance of designating another individual to make health care decisions on behalf of 
287.8 	the child if the child becomes unable to participate in decisions; and
287.9 	(8) appropriate contact information through 21 years of age if the child needs 
287.10 	information or help dealing with a crisis situation.
287.11 		Subd. 5.Notice of termination of foster care. (a) When a child leaves foster care 
287.12 	at 18 years of age or older, the responsible social services agency shall give the child 
287.13 	written notice that foster care shall terminate 30 days from the date the notice is sent.
287.14 	(b) The child or the child's guardian ad litem may file a motion asking the court to 
287.15 	review the responsible social services agency's determination within 15 days of receiving 
287.16 	the notice. The child shall not be discharged from foster care until the motion is heard. The 
287.17 	responsible social services agency shall work with the child to transition out of foster care.
287.18 	(c) The written notice of termination of benefits shall be on a form prescribed by 
287.19 	the commissioner and shall give notice of the right to have the responsible social services 
287.20 	agency's determination reviewed by the court under this section or sections 260C.203, 
287.21 	260C.317, and 260C.515, subdivision 5 or 6. A copy of the termination notice shall 
287.22 	be sent to the child and the child's attorney, if any, the foster care provider, the child's 
287.23 	guardian ad litem, and the court. The responsible social services agency is not responsible 
287.24 	for paying foster care benefits for any period of time after the child leaves foster care.

287.25 	Sec. 14. Minnesota Statutes 2015 Supplement, section 260C.521, subdivision 1, 
287.26 	is amended to read:
287.27 		Subdivision 1.Child in permanent custody of responsible social services agency.
 287.28 	(a) Court reviews of an order for permanent custody to the responsible social services 
287.29 	agency for placement of the child in foster care must be conducted at least yearly at an 
287.30 	in-court appearance hearing.
287.31 	(b) The purpose of the review hearing is to ensure:
287.32 	(1) the responsible social services agency made intensive, ongoing, and, as of the 
287.33 	date of the hearing, unsuccessful efforts to return the child home or secure a placement for 
287.34 	the child with a fit and willing relative, custodian, or adoptive parent, and an order for 
287.35 	permanent custody to the responsible social services agency for placement of the child in 
288.1 	foster care continues to be in the best interests of the child and that no other permanency 
288.2 	disposition order is in the best interests of the child;
288.3 	(2) that the responsible social services agency is assisting the child to build 
288.4 	connections to the child's family and community; and
288.5 	(3) that the responsible social services agency is appropriately planning with the 
288.6 	child for development of independent living skills for the child and, as appropriate, for the 
288.7 	orderly and successful transition to independent living adulthood that may occur if the 
288.8 	child continues in foster care without another permanency disposition order.;
288.9 	(4) the child's foster family home or child care institution is following the reasonable 
288.10 	and prudent parenting standards; and
288.11 	(5) the child has regular, ongoing opportunities to engage in age or developmentally 
288.12 	appropriate activities by consulting with the child in an age-appropriate manner about the 
288.13 	opportunities.
288.14 	(c) The court must review the child's out-of-home placement plan and the reasonable 
288.15 	efforts of the responsible social services agency to finalize an alternative permanent plan 
288.16 	for the child including the responsible social services agency's efforts to:
288.17 	(1) ensure that permanent custody to the responsible social services agency with 
288.18 	placement of the child in foster care continues to be the most appropriate legal arrangement 
288.19 	for meeting the child's need for permanency and stability or, if not, to identify and attempt 
288.20 	to finalize another permanency disposition order under this chapter that would better serve 
288.21 	the child's needs and best interests;by reviewing the compelling reasons it continues not 
288.22 	to be in the best interest of the child to:
288.23 	(i) return home;
288.24 	(ii) be placed for adoption; or
288.25 	(iii) be placed with a fit and willing relative through an order for permanent legal 
288.26 	and physical custody under section 260C.515, subdivision 4;
288.27 	(2) identify a specific foster home for the child, if one has not already been identified;
288.28 	(3) support continued placement of the child in the identified home, if one has been 
288.29 	identified;
288.30 	(4) ensure appropriate services are provided to address the physical health, mental 
288.31 	health, and educational needs of the child during the period of foster care and also ensure 
288.32 	appropriate services or assistance to maintain relationships with appropriate family 
288.33 	members and the child's community; and
288.34 	(5) plan for the child's independence upon the child's leaving foster care living as 
288.35 	required under section 260C.212, subdivision 1.
289.1 	(d) The court may find that the responsible social services agency has made 
289.2 	reasonable efforts to finalize the permanent plan for the child when:
289.3 	(1) the responsible social services agency has made reasonable efforts to identify a 
289.4 	more legally permanent home for the child than is provided by an order for permanent 
289.5 	custody to the agency for placement in foster care;
289.6 	(2) the child has been asked about the child's desired permanency outcome; and
289.7 	(3) the responsible social services agency's engagement of the child in planning for 
289.8 	independent living a successful transition to adulthood is reasonable and appropriate.

289.9 	Sec. 15. [260D.14] SUCCESSFUL TRANSITION TO ADULTHOOD FOR 
289.10 	CHILDREN IN VOLUNTARY PLACEMENT.
289.11 		Subdivision 1.Case planning. When the child is 14 years of age or older, the 
289.12 	responsible social services agency shall ensure a child in foster care under this chapter is 
289.13 	provided with the case plan requirements in section 260C.212, subdivisions 1 and 14.
289.14 		Subd. 2.Notification. The responsible social services agency shall provide written 
289.15 	notice of the right to continued access to services for certain children in foster care past 18 
289.16 	years of age under section 260C.452, subdivision 3, and of the right to appeal a denial 
289.17 	of social services under section 256.045. The notice must be provided to the child six 
289.18 	months before the child's 18th birthday. 
289.19 		Subd. 3.Administrative or court reviews. When the child is 17 years of age or 
289.20 	older, the administrative review or court hearing must include a review of the responsible 
289.21 	social services agency's support for the child's successful transition to adulthood as 
289.22 	required in section 260C.452, subdivision 4.

289.23 	Sec. 16. Minnesota Statutes 2014, section 518.175, subdivision 5, is amended to read:
289.24 		Subd. 5.Modification of parenting plan or order for parenting time. (a) If a 
289.25 	parenting plan or an order granting parenting time cannot be used to determine the number 
289.26 	of overnights or overnight equivalents the child has with each parent, the court shall modify 
289.27 	the parenting plan or order granting parenting time so that the number of overnights or 
289.28 	overnight equivalents the child has with each parent can be determined. For purposes of this 
289.29 	section, "overnight equivalents" has the meaning given in section 518A.36, subdivision 1.
289.30 	(b) If modification would serve the best interests of the child, the court shall modify 
289.31 	the decision-making provisions of a parenting plan or an order granting or denying 
289.32 	parenting time, if the modification would not change the child's primary residence. 
289.33 	Consideration of a child's best interest includes a child's changing developmental needs.
290.1 	(b) (c) Except as provided in section 631.52, the court may not restrict parenting 
290.2 	time unless it finds that:
290.3 	(1) parenting time is likely to endanger the child's physical or emotional health or 
290.4 	impair the child's emotional development; or
290.5 	(2) the parent has chronically and unreasonably failed to comply with court-ordered 
290.6 	parenting time.
290.7 	A modification of parenting time which increases a parent's percentage of parenting time 
290.8 	to an amount that is between 45.1 to 54.9 percent parenting time is not a restriction of 
290.9 	the other parent's parenting time.
290.10 	(c) (d) If a parent makes specific allegations that parenting time by the other 
290.11 	parent places the parent or child in danger of harm, the court shall hold a hearing at 
290.12 	the earliest possible time to determine the need to modify the order granting parenting 
290.13 	time. Consistent with subdivision 1a, the court may require a third party, including the 
290.14 	local social services agency, to supervise the parenting time or may restrict a parent's 
290.15 	parenting time if necessary to protect the other parent or child from harm. If there is an 
290.16 	existing order for protection governing the parties, the court shall consider the use of an 
290.17 	independent, neutral exchange location for parenting time.

290.18 	EFFECTIVE DATE. This section is effective August 1, 2018.

290.19 	Sec. 17. Minnesota Statutes 2015 Supplement, section 518A.26, subdivision 14, 
290.20 	is amended to read:
290.21 		Subd. 14.Obligor. "Obligor" means a person obligated to pay maintenance or 
290.22 	support. For purposes of ordering medical support under section 518A.41, a parent who 
290.23 	has primary physical custody of a child may be an obligor subject to a payment agreement 
290.24 	under section 518A.69. If a parent has more than 55 percent court-ordered parenting 
290.25 	time, there is a rebuttable presumption that the parent has a zero dollar basic support 
290.26 	obligation. A party seeking to overcome this presumption must show, and the court must 
290.27 	consider, the following:
290.28 	(1) a significant income disparity, which may include potential income determined 
290.29 	under section 518A.32;
290.30 	(2) the benefit and detriment to the child and the ability of each parent to meet 
290.31 	the needs of the child; and
290.32 	(3) whether the application of the presumption would have an unjust or inappropriate 
290.33 	result.
291.1 	The presumption of a zero dollar basic support obligation does not eliminate a parent's 
291.2 	obligation to pay child support arrears under section 518A.60. The presumption of a 
291.3 	zero dollar basic support obligation does not apply to an action under section 256.87, 
291.4 	subdivision 1 or 1a.

291.5 	EFFECTIVE DATE. This section is effective August 1, 2018.

291.6 	Sec. 18. Minnesota Statutes 2014, section 518A.34, is amended to read:
291.7 	518A.34 COMPUTATION OF CHILD SUPPORT OBLIGATIONS.
291.8 	(a) To determine the presumptive child support obligation of a parent, the court shall 
291.9 	follow the procedure set forth in this section.
291.10 	(b) To determine the obligor's basic support obligation, the court shall:
291.11 	(1) determine the gross income of each parent under section 518A.29;
291.12 	(2) calculate the parental income for determining child support (PICS) of each 
291.13 	parent, by subtracting from the gross income the credit, if any, for each parent's nonjoint 
291.14 	children under section 518A.33;
291.15 	(3) determine the percentage contribution of each parent to the combined PICS by 
291.16 	dividing the combined PICS into each parent's PICS;
291.17 	(4) determine the combined basic support obligation by application of the guidelines 
291.18 	in section 518A.35;
291.19 	(5) determine the obligor'seach parent's share of the combined basic support 
291.20 	obligation by multiplying the percentage figure from clause (3) by the combined basic 
291.21 	support obligation in clause (4); and
291.22 	(6) determine the parenting expense adjustment, if any, as apply the parenting 
291.23 	expense adjustment formula  provided in section 518A.36, and adjust the obligor's basic 
291.24 	support obligation accordingly to determine the obligor's basic support obligation. If the 
291.25 	parenting time of the parties is presumed equal, section 518A.36, subdivision 3, applies 
291.26 	to the calculation of the basic support obligation and a determination of which parent 
291.27 	is the obligor.
291.28 	(c) If the parents have split custody of joint children, child support must be 
291.29 	calculated for each joint child as follows:
291.30 	(1) the court shall determine each parent's basic support obligation under paragraph 
291.31 	(b) and include the amount of each parent's obligation in the court order. If the basic 
291.32 	support calculation results in each parent owing support to the other, the court shall offset 
291.33 	the higher basic support obligation with the lower basic support obligation to determine 
291.34 	the amount to be paid by the parent with the higher obligation to the parent with the 
292.1 	lower obligation. For the purpose of the cost-of-living adjustment required under section 
292.2 	518A.75, the adjustment must be based on each parent's basic support obligation prior to 
292.3 	offset. For the purposes of this paragraph, "split custody" means that there are two or more 
292.4 	joint children and each parent has at least one joint child more than 50 percent of the time;
292.5 	(2) if each parent pays all child care expenses for at least one joint child, the court 
292.6 	shall calculate child care support for each joint child as provided in section 518A.40. The 
292.7 	court shall determine each parent's child care support obligation and include the amount of 
292.8 	each parent's obligation in the court order. If the child care support calculation results in 
292.9 	each parent owing support to the other, the court shall offset the higher child care support 
292.10 	obligation with the lower child care support obligation to determine the amount to be paid 
292.11 	by the parent with the higher obligation to the parent with the lower obligation; and
292.12 	(3) if each parent pays all medical or dental insurance expenses for at least one 
292.13 	joint child, medical support shall be calculated for each joint child as provided in section 
292.14 	518A.41. The court shall determine each parent's medical support obligation and include 
292.15 	the amount of each parent's obligation in the court order. If the medical support calculation 
292.16 	results in each parent owing support to the other, the court shall offset the higher medical 
292.17 	support obligation with the lower medical support obligation to determine the amount to 
292.18 	be paid by the parent with the higher obligation to the parent with the lower obligation. 
292.19 	Unreimbursed and uninsured medical expenses are not included in the presumptive amount 
292.20 	of support owed by a parent and are calculated and collected as provided in section 518A.41.
292.21 	(d) The court shall determine the child care support obligation for the obligor 
292.22 	as provided in section 518A.40.
292.23 	(d) (e) The court shall determine the medical support obligation for each parent as 
292.24 	provided in section 518A.41. Unreimbursed and uninsured medical expenses are not 
292.25 	included in the presumptive amount of support owed by a parent and are calculated and 
292.26 	collected as described in section 518A.41.
292.27 	(e) (f) The court shall determine each parent's total child support obligation by 
292.28 	adding together each parent's basic support, child care support, and health care coverage 
292.29 	obligations as provided in this section.
292.30 	(f) (g) If Social Security benefits or veterans' benefits are received by one parent as a 
292.31 	representative payee for a joint child based on the other parent's eligibility, the court shall 
292.32 	subtract the amount of benefits from the other parent's net child support obligation, if any.
292.33 	(g) (h) The final child support order shall separately designate the amount owed for 
292.34 	basic support, child care support, and medical support. If applicable, the court shall use 
292.35 	the self-support adjustment and minimum support adjustment under section 518A.42 to 
292.36 	determine the obligor's child support obligation.

293.1 	EFFECTIVE DATE. This section is effective August 1, 2018.

293.2 	Sec. 19. Minnesota Statutes 2014, section 518A.35, subdivision 1, is amended to read:
293.3 		Subdivision 1.Determination of support obligation. (a) The guideline in this 
293.4 	section is a rebuttable presumption and shall be used in any judicial or administrative 
293.5 	proceeding to establish or modify a support obligation under this chapter.
293.6 	(b) The basic child support obligation shall be determined by referencing the 
293.7 	guideline for the appropriate number of joint children and the combined parental income 
293.8 	for determining child support of the parents.
293.9 	(c) If a child is not in the custody of either parent and a support order is sought against 
293.10 	one or both parents, the basic child support obligation shall be determined by referencing 
293.11 	the guideline for the appropriate number of joint children, and the parent's individual 
293.12 	parental income for determining child support, not the combined parental incomes for 
293.13 	determining child support of the parents. Unless a parent has court-ordered parenting time, 
293.14 	the parenting expense adjustment formula under section 518A.34 must not be applied.
293.15 	(d) If a child is in custody of either parent and a support order is sought by the public 
293.16 	authority under section 256.87, unless the parent against whom the support order is sought 
293.17 	has court-ordered parenting time, the support obligation must be determined by referencing 
293.18 	the guideline for the appropriate number of joint children and the parent's individual income 
293.19 	without application of the parenting expense adjustment formula under section 518A.34.
293.20 	(e) For combined parental incomes for determining child support exceeding $15,000 
293.21 	per month, the presumed basic child support obligations shall be as for parents with 
293.22 	combined parental income for determining child support of $15,000 per month. A basic 
293.23 	child support obligation in excess of this level may be demonstrated for those reasons set 
293.24 	forth in section 518A.43.

293.25 	EFFECTIVE DATE. This section is effective August 1, 2018.

293.26 	Sec. 20. Minnesota Statutes 2014, section 518A.36, is amended to read:
293.27 	518A.36 PARENTING EXPENSE ADJUSTMENT.
293.28 		Subdivision 1.General. (a) The parenting expense adjustment under this section 
293.29 	reflects the presumption that while exercising parenting time, a parent is responsible 
293.30 	for and incurs costs of caring for the child, including, but not limited to, food, clothing, 
293.31 	transportation, recreation, and household expenses. Every child support order shall specify 
293.32 	the percentage of parenting time granted to or presumed for each parent. For purposes 
293.33 	of this section, the percentage of parenting time means the percentage of time a child is 
294.1 	scheduled to spend with the parent during a calendar year according to a court order 
294.2 	averaged over a two-year period. Parenting time includes time with the child whether it is 
294.3 	designated as visitation, physical custody, or parenting time. The percentage of parenting 
294.4 	time may be determined by calculating the number of overnights or overnight equivalents
294.5 	that a child parent spends with a parent, or child pursuant to a court order. For purposes of 
294.6 	this section, overnight equivalents are calculated by using a method other than overnights 
294.7 	if the parent has significant time periods on separate days where the child is in the parent's 
294.8 	physical custody and under the direct care of the parent but does not stay overnight. The 
294.9 	court may consider the age of the child in determining whether a child is with a parent 
294.10 	for a significant period of time.
294.11 	(b) If there is not a court order awarding parenting time, the court shall determine 
294.12 	the child support award without consideration of the parenting expense adjustment. If a 
294.13 	parenting time order is subsequently issued or is issued in the same proceeding, then the 
294.14 	child support order shall include application of the parenting expense adjustment.
294.15 		Subd. 2.Calculation of parenting expense adjustment. The obligor is entitled to 
294.16 	a parenting expense adjustment calculated as provided in this subdivision. The court shall:
294.17 	(1) find the adjustment percentage corresponding to the percentage of parenting 
294.18 	time allowed to the obligor below:

294.19
294.20		Percentage Range of Parenting 
Time
	Adjustment Percentage
	
294.21	(i)
	less than 10 percent
	no adjustment
	
294.22	(ii)
	10 percent to 45 percent
	12 percent
	
294.23	(iii)
	45.1 percent to 50 percent
	presume parenting time is equal
	
294.24 	(2) multiply the adjustment percentage by the obligor's basic child support obligation 
294.25 	to arrive at the parenting expense adjustment; and
294.26 	(3) subtract the parenting expense adjustment from the obligor's basic child support 
294.27 	obligation. The result is the obligor's basic support obligation after parenting expense 
294.28 	adjustment.
294.29 	(a) For the purposes of this section, the following terms have the meanings given:
294.30 	(1) "parent A" means the parent with whom the child or children will spend the least 
294.31 	number of overnights under the court order; and
294.32 	(2) "parent B" means the parent with whom the child or children will spend the 
294.33 	greatest number of overnights under the court order.
294.34 	(b) The court shall apply the following formula to determine which parent is the 
294.35 	obligor and calculate the basic support obligation:
294.36 	(1) raise to the power of three the approximate number of annual overnights the child 
294.37 	or children will likely spend with parent A;
295.1 	(2) raise to the power of three the approximate number of annual overnights the child 
295.2 	or children will likely spend with parent B;
295.3 	(3) multiply the result of clause (1) times parent B's share of the combined basic 
295.4 	support obligation as determined in section 518A.34, paragraph (b), clause (5);
295.5 	(4) multiply the result of clause (2) times parent A's share of the combined basic 
295.6 	support obligation as determined in section 518A.34, paragraph (b), clause (5);
295.7 	(5) subtract the result of clause (4) from the result of clause (3); and
295.8 	(6) divide the result of clause (5) by the sum of clauses (1) and (2).
295.9 	(c) If the result is a negative number, parent A is the obligor, the negative number 
295.10 	becomes its positive equivalent, and the result is the basic support obligation. If the result 
295.11 	is a positive number, parent B is the obligor and the result is the basic support obligation.
295.12 		Subd. 3.Calculation of basic support when parenting time presumed is equal.
 295.13 	(a) If the parenting time is equal and the parental incomes for determining child support of 
295.14 	the parents also are equal, no basic support shall be paid unless the court determines that 
295.15 	the expenses for the child are not equally shared.
295.16 	(b) If the parenting time is equal but the parents' parental incomes for determining 
295.17 	child support are not equal, the parent having the greater parental income for determining 
295.18 	child support shall be obligated for basic child support, calculated as follows:
295.19 	(1) multiply the combined basic support calculated under section 518A.34 by 0.75;
295.20 	(2) prorate the amount under clause (1) between the parents based on each parent's 
295.21 	proportionate share of the combined PICS; and
295.22 	(3) subtract the lower amount from the higher amount.
295.23 	The resulting figure is the obligation after parenting expense adjustment for the 
295.24 	parent with the greater parental income for determining child support.

295.25 	EFFECTIVE DATE. This section is effective August 1, 2018.

295.26 	Sec. 21. Minnesota Statutes 2015 Supplement, section 518A.39, subdivision 2, is 
295.27 	amended to read:
295.28 		Subd. 2.Modification. (a) The terms of an order respecting maintenance or support 
295.29 	may be modified upon a showing of one or more of the following, any of which makes 
295.30 	the terms unreasonable and unfair: (1) substantially increased or decreased gross income 
295.31 	of an obligor or obligee; (2) substantially increased or decreased need of an obligor or 
295.32 	obligee or the child or children that are the subject of these proceedings; (3) receipt of 
295.33 	assistance under the AFDC program formerly codified under sections 256.72 to 256.87 
295.34 	or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a change in the cost of living for 
295.35 	either party as measured by the Federal Bureau of Labor Statistics; (5) extraordinary 
296.1 	medical expenses of the child not provided for under section 518A.41; (6) a change in 
296.2 	the availability of appropriate health care coverage or a substantial increase or decrease 
296.3 	in health care coverage costs; (7) the addition of work-related or education-related child 
296.4 	care expenses of the obligee or a substantial increase or decrease in existing work-related 
296.5 	or education-related child care expenses; or (8) upon the emancipation of the child, as 
296.6 	provided in subdivision 5.
296.7 	(b) It is presumed that there has been a substantial change in circumstances under 
296.8 	paragraph (a) and the terms of a current support order shall be rebuttably presumed to be 
296.9 	unreasonable and unfair if:
296.10 	(1) the application of the child support guidelines in section 518A.35, to the current 
296.11 	circumstances of the parties results in a calculated court order that is at least 20 percent 
296.12 	and at least $75 per month higher or lower than the current support order or, if the current 
296.13 	support order is less than $75, it results in a calculated court order that is at least 20 
296.14 	percent per month higher or lower;
296.15 	(2) the medical support provisions of the order established under section 518A.41 
296.16 	are not enforceable by the public authority or the obligee;
296.17 	(3) health coverage ordered under section 518A.41 is not available to the child for 
296.18 	whom the order is established by the parent ordered to provide;
296.19 	(4) the existing support obligation is in the form of a statement of percentage and not 
296.20 	a specific dollar amount;
296.21 	(5) the gross income of an obligor or obligee has decreased by at least 20 percent 
296.22 	through no fault or choice of the party; or
296.23 	(6) a deviation was granted based on the factor in section 518A.43, subdivision 1, 
296.24 	clause (4), and the child no longer resides in a foreign country or the factor is otherwise no 
296.25 	longer applicable.
296.26 	(c) A child support order is not presumptively modifiable solely because an obligor 
296.27 	or obligee becomes responsible for the support of an additional nonjoint child, which is 
296.28 	born after an existing order. Section 518A.33 shall be considered if other grounds are 
296.29 	alleged which allow a modification of support.
296.30 	(d) If child support was established by applying a parenting expense adjustment 
296.31 	or presumed equal parenting time calculation under previously existing child support 
296.32 	guidelines and there is no parenting plan or order from which overnights or overnight 
296.33 	equivalents can be determined, there is a rebuttable presumption that the established 
296.34 	adjustment or calculation will continue after modification so long as the modification is 
296.35 	not based on a change in parenting time. In determining an obligation under previously 
296.36 	existing child support guidelines, it is presumed that the court shall:
297.1 	(1) if a 12 percent parenting expense adjustment was applied, multiply the obligor's 
297.2 	share of the combined basic support obligation calculated under section 518A.34, 
297.3 	paragraph (b), clause (5), by 0.88; or
297.4 	(2) if the parenting time was presumed equal but the parents' parental incomes for 
297.5 	determining child support were not equal:
297.6 	(i) multiply the combined basic support obligation under section 518A.34, paragraph 
297.7 	(b), clause (5), by 0.075;
297.8 	(ii) prorate the amount under item (i) between the parents based on each parent's 
297.9 	proportionate share of the combined PICS; and
297.10 	(iii) subtract the lower amount from the higher amount.
297.11 	(e) On a motion for modification of maintenance, including a motion for the 
297.12 	extension of the duration of a maintenance award, the court shall apply, in addition to all 
297.13 	other relevant factors, the factors for an award of maintenance under section 518.552 that 
297.14 	exist at the time of the motion. On a motion for modification of support, the court:
297.15 	(1) shall apply section 518A.35, and shall not consider the financial circumstances of 
297.16 	each party's spouse, if any; and
297.17 	(2) shall not consider compensation received by a party for employment in excess of 
297.18 	a 40-hour work week, provided that the party demonstrates, and the court finds, that:
297.19 	(i) the excess employment began after entry of the existing support order;
297.20 	(ii) the excess employment is voluntary and not a condition of employment;
297.21 	(iii) the excess employment is in the nature of additional, part-time employment, or 
297.22 	overtime employment compensable by the hour or fractions of an hour;
297.23 	(iv) the party's compensation structure has not been changed for the purpose of 
297.24 	affecting a support or maintenance obligation;
297.25 	(v) in the case of an obligor, current child support payments are at least equal to the 
297.26 	guidelines amount based on income not excluded under this clause; and
297.27 	(vi) in the case of an obligor who is in arrears in child support payments to the 
297.28 	obligee, any net income from excess employment must be used to pay the arrearages 
297.29 	until the arrearages are paid in full.
297.30 	(e) (f) A modification of support or maintenance, including interest that accrued 
297.31 	pursuant to section 548.091, may be made retroactive only with respect to any period 
297.32 	during which the petitioning party has pending a motion for modification but only from 
297.33 	the date of service of notice of the motion on the responding party and on the public 
297.34 	authority if public assistance is being furnished or the county attorney is the attorney of 
297.35 	record, unless the court adopts an alternative effective date under paragraph (l). The 
298.1 	court's adoption of an alternative effective date under paragraph (l) shall not be considered 
298.2 	a retroactive modification of maintenance or support.
298.3 	(f) (g) Except for an award of the right of occupancy of the homestead, provided 
298.4 	in section 518.63, all divisions of real and personal property provided by section 518.58 
298.5 	shall be final, and may be revoked or modified only where the court finds the existence 
298.6 	of conditions that justify reopening a judgment under the laws of this state, including 
298.7 	motions under section 518.145, subdivision 2. The court may impose a lien or charge on 
298.8 	the divided property at any time while the property, or subsequently acquired property, is 
298.9 	owned by the parties or either of them, for the payment of maintenance or support money, 
298.10 	or may sequester the property as is provided by section 518A.71.
298.11 	(g) (h) The court need not hold an evidentiary hearing on a motion for modification 
298.12 	of maintenance or support.
298.13 	(h) (i) Sections 518.14 and 518A.735 shall govern the award of attorney fees for 
298.14 	motions brought under this subdivision.
298.15 	(i) (j) Except as expressly provided, an enactment, amendment, or repeal of law does 
298.16 	not constitute a substantial change in the circumstances for purposes of modifying a 
298.17 	child support order.
298.18 	(j) MS 2006 [Expired]
298.19 	(k) On the first modification under the income shares method of calculation  
298.20 	following implementation of amended child support guidelines, the modification of 
298.21 	basic support may be limited if the amount of the full variance would create hardship 
298.22 	for either the obligor or the obligee. Hardship includes, but is not limited to, eligibility 
298.23 	for assistance under chapter 256J.
298.24 	(l) The court may select an alternative effective date for a maintenance or support 
298.25 	order if the parties enter into a binding agreement for an alternative effective date.

298.26 	EFFECTIVE DATE. This section is effective August 1, 2018.

298.27 	Sec. 22. [518A.79] CHILD SUPPORT TASK FORCE.
298.28 		Subdivision 1.Establishment; purpose. There is established the Child Support 
298.29 	Task Force for the Department of Human Services. The purpose of the task force is to 
298.30 	advise the commissioner of human services on matters relevant to maintaining effective 
298.31 	and efficient child support guidelines that will best serve the children of Minnesota and 
298.32 	take into account the changing dynamics of families.
298.33 		Subd. 2.Members.  (a) The task force must consist of:
298.34 	(1) two members of the house of representatives, one appointed by the speaker of the 
298.35 	house and one appointed by the minority leader;
299.1 	(2) two members of the senate, one appointed by the majority leader and one 
299.2 	appointed by the minority leader;
299.3 	(3) one representative from the Minnesota County Attorneys Association;
299.4 	(4) one staff member from the Department of Human Services Child Support 
299.5 	Division;
299.6 	(5) one representative from a tribe with an approved IV-D program appointed by 
299.7 	resolution of the Minnesota Indian Affairs Council;
299.8 	(6) one representative from the Minnesota Family Support Recovery Council;
299.9 	(7) one child support magistrate, family court referee, or one district court judge or 
299.10 	retired judge with experience in child support matters, appointed by the chief justice of 
299.11 	the Supreme Court;
299.12 	(8) four parents, at least two of whom represent diverse cultural and social 
299.13 	communities, appointed by the commissioner with equal representation between custodial 
299.14 	and noncustodial parents;
299.15 	(9) one representative from the Minnesota Legal Services Coalition; and
299.16 	(10) one representative from the Family Law Section of the Minnesota Bar 
299.17 	Association.
299.18 	(b) Section 15.059 governs the Child Support Task Force. 
299.19 	(c) Members of the task force shall be compensated as provided in section 15.059, 
299.20 	subdivision 3.
299.21 		Subd. 3.Organization. (a) The commissioner or the commissioner's designee shall 
299.22 	convene the first meeting of the task force.
299.23 	(b) The members of the task force shall annually elect a chair and other officers 
299.24 	as the members deem necessary.
299.25 	(c) The task force shall meet at least three times per year, with one meeting devoted 
299.26 	to collecting input from the public.
299.27 		Subd. 4.Staff. The commissioner shall provide support staff, office space, and 
299.28 	administrative services for the task force.
299.29 		Subd. 5.Duties of the task force. (a) General duties of the task force include, but 
299.30 	are not limited to:
299.31 	(1) serving in an advisory capacity to the commissioner of human services;
299.32 	(2) reviewing the effects of implementing the parenting expense adjustment enacted 
299.33 	by the 2016 legislature; 
299.34 	(3) at least every four years, preparing for and advising the commissioner on the 
299.35 	development of the quadrennial review report;
299.36 	(4) collecting and studying information and data relating to child support awards; and
300.1 	(5) conducting a comprehensive review of child support guidelines, economic 
300.2 	conditions, and other matters relevant to maintaining effective and efficient child support 
300.3 	guidelines.
300.4 	(b) The task force must review, address, and make recommendations on the 
300.5 	following priority issues: 
300.6 	(1) the self-support reserve for custodial and noncustodial parents;
300.7 	(2) simultaneous child support orders;
300.8 	(3) obligors who are subject to child support orders in multiple counties;
300.9 	(4) parents with multiple families;
300.10 	(5) non-nuclear families, such as grandparents, relatives, and foster parents who 
300.11 	are caretakers of children; 
300.12 	(6) standards to apply for modifications; and
300.13 	(7) updating section 518A.35, subdivision 2, the guideline for basic support.
300.14 		Subd. 6.Consultation. The chair of the task force must consult with the Cultural 
300.15 	and Ethnic Communities Leadership Council at least annually on the issues under 
300.16 	consideration by the task force.
300.17 		Subd. 7.Report and recommendations. Beginning February 15, 2018, and 
300.18 	biennially thereafter, if the task force is extended by the legislature, the commissioner 
300.19 	shall prepare and submit to the chairs and ranking minority members of the committees of 
300.20 	the house of representatives and the senate with jurisdiction over child support matters a 
300.21 	report that summarizes the activities of the task force, issues identified by the task force, 
300.22 	methods taken to address the issues, and recommendations for legislative action, if needed.
300.23 		Subd. 8.Expiration. The task force expires June 30, 2019, unless extended by 
300.24 	the legislature.

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

300.26 	Sec. 23. Minnesota Statutes 2014, section 609.3241, is amended to read:
300.27 	609.3241 PENALTY ASSESSMENT AUTHORIZED.
300.28 	(a) When a court sentences an adult convicted of violating section 609.322 or 
300.29 	609.324, while acting other than as a prostitute, the court shall impose an assessment of 
300.30 	not less than $500 and not more than $750 for a violation of section 609.324, subdivision 
300.31 	2, or a misdemeanor violation of section 609.324, subdivision 3; otherwise the court shall 
300.32 	impose an assessment of not less than $750 and not more than $1,000. The assessment 
300.33 	shall be distributed as provided in paragraph (c) and is in addition to the surcharge 
300.34 	required by section 357.021, subdivision 6.
301.1 	(b) The court may not waive payment of the minimum assessment required by 
301.2 	this section. If the defendant qualifies for the services of a public defender or the court 
301.3 	finds on the record that the convicted person is indigent or that immediate payment of 
301.4 	the assessment would create undue hardship for the convicted person or that person's 
301.5 	immediate family, the court may reduce the amount of the minimum assessment to not 
301.6 	less than $100. The court also may authorize payment of the assessment in installments.
301.7 	(c) The assessment collected under paragraph (a) must be distributed as follows:
301.8 	(1) 40 percent of the assessment shall be forwarded to the political subdivision that 
301.9 	employs the arresting officer for use in enforcement, training, and education activities 
301.10 	related to combating sexual exploitation of youth, or if the arresting officer is an employee 
301.11 	of the state, this portion shall be forwarded to the commissioner of public safety for those 
301.12 	purposes identified in clause (3);
301.13 	(2) 20 percent of the assessment shall be forwarded to the prosecuting agency that 
301.14 	handled the case for use in training and education activities relating to combating sexual 
301.15 	exploitation activities of youth; and
301.16 	(3) 40 percent of the assessment must be forwarded to the commissioner of public 
301.17 	safety health to be deposited in the safe harbor for youth account in the special revenue 
301.18 	fund and are appropriated to the commissioner for distribution to crime victims services 
301.19 	organizations that provide services to sexually exploited youth, as defined in section 
301.20 	260C.007, subdivision 31.
301.21 	(d) A safe harbor for youth account is established as a special account in the state 
301.22 	treasury.

301.23 	Sec. 24. Minnesota Statutes 2015 Supplement, section 626.556, subdivision 2, is 
301.24 	amended to read:
301.25 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
301.26 	given them unless the specific content indicates otherwise:
301.27 	(a) "Accidental" means a sudden, not reasonably foreseeable, and unexpected 
301.28 	occurrence or event which:
301.29 	(1) is not likely to occur and could not have been prevented by exercise of due 
301.30 	care; and
301.31 	(2) if occurring while a child is receiving services from a facility, happens when the 
301.32 	facility and the employee or person providing services in the facility are in compliance 
301.33 	with the laws and rules relevant to the occurrence or event.
301.34 	(b) "Commissioner" means the commissioner of human services.
301.35 	(c) "Facility" means:
302.1 	(1) a licensed or unlicensed day care facility, residential facility, agency, hospital, 
302.2 	sanitarium, or other facility or institution required to be licensed under sections 144.50 to 
302.3 	144.58, 241.021, or 245A.01 to 245A.16, or chapter 245D;
302.4 	(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 
302.5 	124E; or
302.6 	(3) a nonlicensed personal care provider organization as defined in section 
302.7 	256B.0625, subdivision 19a.
302.8 	(d) "Family assessment" means a comprehensive assessment of child safety, risk of 
302.9 	subsequent child maltreatment, and family strengths and needs that is applied to a child 
302.10 	maltreatment report that does not allege sexual abuse or substantial child endangerment. 
302.11 	Family assessment does not include a determination as to whether child maltreatment 
302.12 	occurred but does determine the need for services to address the safety of family members 
302.13 	and the risk of subsequent maltreatment.
302.14 	(e) "Investigation" means fact gathering related to the current safety of a child 
302.15 	and the risk of subsequent maltreatment that determines whether child maltreatment 
302.16 	occurred and whether child protective services are needed. An investigation must be used 
302.17 	when reports involve sexual abuse or substantial child endangerment, and for reports of 
302.18 	maltreatment in facilities required to be licensed under chapter 245A or 245D; under 
302.19 	sections 144.50 to 144.58 and 241.021; in a school as defined in section 120A.05, 
302.20 	subdivisions 9, 11, and 13, and chapter 124E; or in a nonlicensed personal care provider 
302.21 	association as defined in section 256B.0625, subdivision 19a.
302.22 	(f) "Mental injury" means an injury to the psychological capacity or emotional 
302.23 	stability of a child as evidenced by an observable or substantial impairment in the child's 
302.24 	ability to function within a normal range of performance and behavior with due regard to 
302.25 	the child's culture.
302.26 	(g) "Neglect" means the commission or omission of any of the acts specified under 
302.27 	clauses (1) to (9), other than by accidental means:
302.28 	(1) failure by a person responsible for a child's care to supply a child with necessary 
302.29 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
302.30 	mental health when reasonably able to do so;
302.31 	(2) failure to protect a child from conditions or actions that seriously endanger the 
302.32 	child's physical or mental health when reasonably able to do so, including a growth delay, 
302.33 	which may be referred to as a failure to thrive, that has been diagnosed by a physician and 
302.34 	is due to parental neglect;
302.35 	(3) failure to provide for necessary supervision or child care arrangements 
302.36 	appropriate for a child after considering factors as the child's age, mental ability, physical 
303.1 	condition, length of absence, or environment, when the child is unable to care for the 
303.2 	child's own basic needs or safety, or the basic needs or safety of another child in their care;
303.3 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
303.4 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
303.5 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;
303.6 	(5) nothing in this section shall be construed to mean that a child is neglected solely 
303.7 	because the child's parent, guardian, or other person responsible for the child's care in 
303.8 	good faith selects and depends upon spiritual means or prayer for treatment or care of 
303.9 	disease or remedial care of the child in lieu of medical care; except that a parent, guardian, 
303.10 	or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report 
303.11 	if a lack of medical care may cause serious danger to the child's health. This section does 
303.12 	not impose upon persons, not otherwise legally responsible for providing a child with 
303.13 	necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
303.14 	(6) prenatal exposure to a controlled substance, as defined in section 253B.02, 
303.15 	subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal 
303.16 	symptoms in the child at birth, results of a toxicology test performed on the mother at 
303.17 	delivery or the child at birth, medical effects or developmental delays during the child's 
303.18 	first year of life that medically indicate prenatal exposure to a controlled substance, or the 
303.19 	presence of a fetal alcohol spectrum disorder;
303.20 	(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
303.21 	(8) chronic and severe use of alcohol or a controlled substance by a parent or 
303.22 	person responsible for the care of the child that adversely affects the child's basic needs 
303.23 	and safety; or
303.24 	(9) emotional harm from a pattern of behavior which contributes to impaired 
303.25 	emotional functioning of the child which may be demonstrated by a substantial and 
303.26 	observable effect in the child's behavior, emotional response, or cognition that is not 
303.27 	within the normal range for the child's age and stage of development, with due regard to 
303.28 	the child's culture.
303.29 	(h) "Nonmaltreatment mistake" means:
303.30 	(1) at the time of the incident, the individual was performing duties identified in the 
303.31 	center's child care program plan required under Minnesota Rules, part 9503.0045;
303.32 	(2) the individual has not been determined responsible for a similar incident that 
303.33 	resulted in a finding of maltreatment for at least seven years;
303.34 	(3) the individual has not been determined to have committed a similar 
303.35 	nonmaltreatment mistake under this paragraph for at least four years;
304.1 	(4) any injury to a child resulting from the incident, if treated, is treated only with 
304.2 	remedies that are available over the counter, whether ordered by a medical professional or 
304.3 	not; and
304.4 	(5) except for the period when the incident occurred, the facility and the individual 
304.5 	providing services were both in compliance with all licensing requirements relevant to the 
304.6 	incident.
304.7 	This definition only applies to child care centers licensed under Minnesota 
304.8 	Rules, chapter 9503. If clauses (1) to (5) apply, rather than making a determination of 
304.9 	substantiated maltreatment by the individual, the commissioner of human services shall 
304.10 	determine that a nonmaltreatment mistake was made by the individual.
304.11 	(i) "Operator" means an operator or agency as defined in section 245A.02.
304.12 	(j) "Person responsible for the child's care" means (1) an individual functioning 
304.13 	within the family unit and having responsibilities for the care of the child such as a 
304.14 	parent, guardian, or other person having similar care responsibilities, or (2) an individual 
304.15 	functioning outside the family unit and having responsibilities for the care of the child 
304.16 	such as a teacher, school administrator, other school employees or agents, or other lawful 
304.17 	custodian of a child having either full-time or short-term care responsibilities including, 
304.18 	but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching, 
304.19 	and coaching.
304.20 	(k) "Physical abuse" means any physical injury, mental injury, or threatened injury, 
304.21 	inflicted by a person responsible for the child's care on a child other than by accidental 
304.22 	means, or any physical or mental injury that cannot reasonably be explained by the child's 
304.23 	history of injuries, or any aversive or deprivation procedures, or regulated interventions, 
304.24 	that have not been authorized under section 125A.0942 or 245.825.
304.25 	Abuse does not include reasonable and moderate physical discipline of a child 
304.26 	administered by a parent or legal guardian which does not result in an injury. Abuse does 
304.27 	not include the use of reasonable force by a teacher, principal, or school employee as 
304.28 	allowed by section 121A.582. Actions which are not reasonable and moderate include, but 
304.29 	are not limited to, any of the following:
304.30 	(1) throwing, kicking, burning, biting, or cutting a child;
304.31 	(2) striking a child with a closed fist;
304.32 	(3) shaking a child under age three;
304.33 	(4) striking or other actions which result in any nonaccidental injury to a child 
304.34 	under 18 months of age;
304.35 	(5) unreasonable interference with a child's breathing;
304.36 	(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
305.1 	(7) striking a child under age one on the face or head;
305.2 	(8) striking a child who is at least age one but under age four on the face or head, 
305.3 	which results in an injury;
305.4 	(9) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled 
305.5 	substances which were not prescribed for the child by a practitioner, in order to control or 
305.6 	punish the child; or other substances that substantially affect the child's behavior, motor 
305.7 	coordination, or judgment or that results in sickness or internal injury, or subjects the 
305.8 	child to medical procedures that would be unnecessary if the child were not exposed 
305.9 	to the substances;
305.10 	(10) unreasonable physical confinement or restraint not permitted under section 
305.11 	609.379, including but not limited to tying, caging, or chaining; or
305.12 	(11) in a school facility or school zone, an act by a person responsible for the child's 
305.13 	care that is a violation under section 121A.58.
305.14 	(l) "Practice of social services," for the purposes of subdivision 3, includes but is 
305.15 	not limited to employee assistance counseling and the provision of guardian ad litem and 
305.16 	parenting time expeditor services.
305.17 	(m) "Report" means any communication received by the local welfare agency, 
305.18 	police department, county sheriff, or agency responsible for child protection pursuant to 
305.19 	this section that describes neglect or physical or sexual abuse of a child and contains 
305.20 	sufficient content to identify the child and any person believed to be responsible for the 
305.21 	neglect or abuse, if known.
305.22 	(n) "Sexual abuse" means the subjection of a child by a person responsible for the 
305.23 	child's care, by a person who has a significant relationship to the child, as defined in section 
305.24 	609.341, or by a person in a position of authority, as defined in section 609.341, subdivision 
305.25 	10, to any act which constitutes a violation of section 609.342 (criminal sexual conduct in 
305.26 	the first degree), 609.343 (criminal sexual conduct in the second degree), 609.344 (criminal 
305.27 	sexual conduct in the third degree), 609.345 (criminal sexual conduct in the fourth degree), 
305.28 	or 609.3451 (criminal sexual conduct in the fifth degree). Sexual abuse also includes any 
305.29 	act which involves a minor which constitutes a violation of prostitution offenses under 
305.30 	sections 609.321 to 609.324 or 617.246.  Effective May 29, 2017, sexual abuse includes all 
305.31 	reports of known or suspected child sex trafficking involving a child who is identified as a 
305.32 	victim of sex trafficking. Sexual abuse includes child sex trafficking as defined in section 
305.33 	609.321, subdivisions 7a and 7b. Sexual abuse includes threatened sexual abuse which 
305.34 	includes the status of a parent or household member who has committed a violation which 
305.35 	requires registration as an offender under section 243.166, subdivision 1b, paragraph (a) 
305.36 	or (b), or required registration under section 243.166, subdivision 1b, paragraph (a) or (b).
306.1 	(o) "Substantial child endangerment" means a person responsible for a child's care, 
306.2 	by act or omission, commits or attempts to commit an act against a child under their 
306.3 	care that constitutes any of the following:
306.4 	(1) egregious harm as defined in section 260C.007, subdivision 14;
306.5 	(2) abandonment under section 260C.301, subdivision 2;
306.6 	(3) neglect as defined in paragraph (g), clause (2), that substantially endangers the 
306.7 	child's physical or mental health, including a growth delay, which may be referred to as 
306.8 	failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
306.9 	(4) murder in the first, second, or third degree under section 609.185, 609.19, or 
306.10 	609.195;
306.11 	(5) manslaughter in the first or second degree under section 609.20 or 609.205;
306.12 	(6) assault in the first, second, or third degree under section 609.221, 609.222, or 
306.13 	609.223;
306.14 	(7) solicitation, inducement, and promotion of prostitution under section 609.322;
306.15 	(8) criminal sexual conduct under sections 609.342 to 609.3451;
306.16 	(9) solicitation of children to engage in sexual conduct under section 609.352;
306.17 	(10) malicious punishment or neglect or endangerment of a child under section 
306.18 	609.377 or 609.378;
306.19 	(11) use of a minor in sexual performance under section 617.246; or
306.20 	(12) parental behavior, status, or condition which mandates that the county attorney 
306.21 	file a termination of parental rights petition under section 260C.503, subdivision 2.
306.22 	(p) "Threatened injury" means a statement, overt act, condition, or status that 
306.23 	represents a substantial risk of physical or sexual abuse or mental injury. Threatened 
306.24 	injury includes, but is not limited to, exposing a child to a person responsible for the 
306.25 	child's care, as defined in paragraph (j), clause (1), who has:
306.26 	(1) subjected a child to, or failed to protect a child from, an overt act or condition 
306.27 	that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a 
306.28 	similar law of another jurisdiction;
306.29 	(2) been found to be palpably unfit under section 260C.301, subdivision 1, paragraph 
306.30 	(b), clause (4), or a similar law of another jurisdiction;
306.31 	(3) committed an act that has resulted in an involuntary termination of parental rights 
306.32 	under section 260C.301, or a similar law of another jurisdiction; or
306.33 	(4) committed an act that has resulted in the involuntary transfer of permanent 
306.34 	legal and physical custody of a child to a relative under Minnesota Statutes 2010, section 
306.35 	260C.201, subdivision 11, paragraph (d), clause (1), section 260C.515, subdivision 4, or a 
306.36 	similar law of another jurisdiction.
307.1 	A child is the subject of a report of threatened injury when the responsible social 
307.2 	services agency receives birth match data under paragraph (q) from the Department of 
307.3 	Human Services.
307.4 	(q) Upon receiving data under section 144.225, subdivision 2b, contained in a 
307.5 	birth record or recognition of parentage identifying a child who is subject to threatened 
307.6 	injury under paragraph (p), the Department of Human Services shall send the data to the 
307.7 	responsible social services agency. The data is known as "birth match" data. Unless the 
307.8 	responsible social services agency has already begun an investigation or assessment of the 
307.9 	report due to the birth of the child or execution of the recognition of parentage and the 
307.10 	parent's previous history with child protection, the agency shall accept the birth match 
307.11 	data as a report under this section. The agency may use either a family assessment or 
307.12 	investigation to determine whether the child is safe. All of the provisions of this section 
307.13 	apply. If the child is determined to be safe, the agency shall consult with the county 
307.14 	attorney to determine the appropriateness of filing a petition alleging the child is in need 
307.15 	of protection or services under section 260C.007, subdivision 6, clause (16), in order to 
307.16 	deliver needed services. If the child is determined not to be safe, the agency and the county 
307.17 	attorney shall take appropriate action as required under section 260C.503, subdivision 2.
307.18 	(r) Persons who conduct assessments or investigations under this section shall take 
307.19 	into account accepted child-rearing practices of the culture in which a child participates 
307.20 	and accepted teacher discipline practices, which are not injurious to the child's health, 
307.21 	welfare, and safety.

307.22 	Sec. 25. Minnesota Statutes 2014, section 626.556, subdivision 3e, is amended to read:
307.23 		Subd. 3e.Agency responsible for assessing or investigating reports of sexual 
307.24 	abuse. The local welfare agency is the agency responsible for investigating allegations 
307.25 	of sexual abuse if the alleged offender is the parent, guardian, sibling, or an individual 
307.26 	functioning within the family unit as a person responsible for the child's care, or a person 
307.27 	with a significant relationship to the child if that person resides in the child's household.
307.28 	Effective May 29, 2017, the local welfare agency is also responsible for investigating 
307.29 	when a child is identified as a victim of sex trafficking.

307.30 	Sec. 26. Minnesota Statutes 2014, section 626.558, subdivision 1, is amended to read:
307.31 		Subdivision 1.Establishment of team. A county shall establish a multidisciplinary 
307.32 	child protection team that may include, but not be limited to, the director of the local 
307.33 	welfare agency or designees, the county attorney or designees, the county sheriff or 
307.34 	designees, representatives of health and education, representatives of mental health or 
308.1 	other appropriate human service or community-based agencies, and parent groups. As 
308.2 	used in this section, a "community-based agency" may include, but is not limited to, 
308.3 	schools, social service agencies, family service and mental health collaboratives, children's 
308.4 	advocacy centers, early childhood and family education programs, Head Start, or other 
308.5 	agencies serving children and families. A member of the team must be designated as the 
308.6 	lead person of the team responsible for the planning process to develop standards for its 
308.7 	activities with battered women's and domestic abuse programs and services.

308.8 	Sec. 27. Minnesota Statutes 2014, section 626.558, subdivision 2, is amended to read:
308.9 		Subd. 2.Duties of team. A multidisciplinary child protection team may provide 
308.10 	public and professional education, develop resources for prevention, intervention, and 
308.11 	treatment, and provide case consultation to the local welfare agency or other interested 
308.12 	community-based agencies. The community-based agencies may request case consultation 
308.13 	from the multidisciplinary child protection team regarding a child or family for whom the 
308.14 	community-based agency is providing services. As used in this section, "case consultation" 
308.15 	means a case review process in which recommendations are made concerning services to 
308.16 	be provided to the identified children and family. Case consultation may be performed by 
308.17 	a committee or subcommittee of members representing human services, including mental 
308.18 	health and chemical dependency; law enforcement, including probation and parole; the 
308.19 	county attorney; a children's advocacy center; health care; education; community-based 
308.20 	agencies and other necessary agencies; and persons directly involved in an individual case 
308.21 	as designated by other members performing case consultation.

308.22 	Sec. 28. Minnesota Statutes 2014, section 626.558, is amended by adding a subdivision 
308.23 	to read:
308.24 		Subd. 4.Children's advocacy center; definition. (a) For purposes of this section, 
308.25 	"children's advocacy center" means an organization, using a multidisciplinary team 
308.26 	approach, whose primary purpose is to provide children who have been the victims of 
308.27 	abuse and their nonoffending family members with:
308.28 	(1) support and advocacy;
308.29 	(2) specialized medical evaluation;
308.30 	(3) trauma-focused mental health services; and
308.31 	(4) forensic interviews.
308.32 	(b) Children's advocacy centers provide multidisciplinary case review and the 
308.33 	tracking and monitoring of case progress.

309.1 	Sec. 29. DIRECTION TO COMMISSIONERS; INCOME AND ASSET 
309.2 	EXCLUSION.
 309.3 	(a) The commissioner of human services shall not count payments made to families 
309.4 	by the income and child development in the first three years of life demonstration 
309.5 	project as income or assets for purposes of determining or redetermining eligibility for 
309.6 	child care assistance programs under Minnesota Statutes, chapter 119B; the Minnesota 
309.7 	family investment program, work benefit program, or diversionary work program under 
309.8 	Minnesota Statutes, chapter 256J, during the duration of the demonstration.
309.9 	(b) The commissioner of human services shall not count payments made to families 
309.10 	by the income and child development in the first three years of life demonstration project 
309.11 	as income for purposes of determining or redetermining eligibility for medical assistance 
309.12 	under Minnesota Statutes, chapter 256B, and MinnesotaCare under Minnesota Statutes, 
309.13 	chapter 256L.
309.14 	(c) For the purposes of this section, "income and child development in the first 
309.15 	three years of life demonstration project" means a demonstration project funded by the 
309.16 	United States Department of Health and Human Services National Institutes of Health to 
309.17 	evaluate whether the unconditional cash payments have a causal effect on the cognitive, 
309.18 	socioemotional, and brain development of infants and toddlers.
309.19 	(d) This section shall only be implemented if Minnesota is chosen as a site for 
309.20 	the child development in the first three years of life demonstration project, and expires 
309.21 	January 1, 2022.
309.22 	(e) The commissioner of human services shall provide a report to the chairs and 
309.23 	ranking minority members of the legislative committees having jurisdiction over human 
309.24 	services issues by January 1, 2023, informing the legislature on the progress and outcomes 
309.25 	of the demonstration under this section.

309.26 	EFFECTIVE DATE. Paragraph (b) is effective August 16, 2016, or upon federal 
309.27 	approval, whichever is later. The commissioner of human services shall notify the revisor 
309.28 	of statutes when federal approval is obtained.

309.29 	ARTICLE 16
309.30 	CHEMICAL AND MENTAL HEALTH

309.31 	Section 1. Minnesota Statutes 2015 Supplement, section 245.735, subdivision 3, 
309.32 	is amended to read:
309.33 		Subd. 3.Reform projects Certified community behavioral health clinics. (a) The 
309.34 	commissioner shall establish standards for a state certification of clinics as process for 
310.1 	certified community behavioral health clinics, in accordance (CCBHCs) to be eligible for 
310.2 	the prospective payment system in paragraph (f). Entities that choose to be CCBHCs must:
310.3 	(1) comply with the CCBHC criteria published on or before September 1, 2015, by 
310.4 	the United States Department of Health and Human Services. Certification standards 
310.5 	established by the commissioner shall require that:;
310.6 	(1) (2) employ or contract for clinic staff who have backgrounds in diverse 
310.7 	disciplines, include including licensed mental health professionals, and staff who are 
310.8 	culturally and linguistically trained to serve the needs of the clinic's patient population;
310.9 	(2) (3) ensure that clinic services are available and accessible to patients of all ages 
310.10 	and genders and that crisis management services are available 24 hours per day;
310.11 	(3) (4) establish fees for clinic services are established for non-medical assistance 
310.12 	patients using a sliding fee scale and that ensures that services to patients are not denied 
310.13 	or limited due to a patient's inability to pay for services;
310.14 	(4) clinics provide coordination of care across settings and providers to ensure 
310.15 	seamless transitions for patients across the full spectrum of health services, including 
310.16 	acute, chronic, and behavioral needs. Care coordination may be accomplished through 
310.17 	partnerships or formal contracts with federally qualified health centers, inpatient 
310.18 	psychiatric facilities, substance use and detoxification facilities, community-based mental 
310.19 	health providers, and other community services, supports, and providers including 
310.20 	schools, child welfare agencies, juvenile and criminal justice agencies, Indian Health 
310.21 	Services clinics, tribally licensed health care and mental health facilities, urban Indian 
310.22 	health clinics, Department of Veterans Affairs medical centers, outpatient clinics, drop-in 
310.23 	centers, acute care hospitals, and hospital outpatient clinics; (5) comply with quality 
310.24 	assurance reporting requirements and other reporting requirements, including any required 
310.25 	reporting of encounter data, clinical outcomes data, and quality data;
310.26 	(5) services provided by clinics include (6) provide crisis mental health services, 
310.27 	withdrawal management services, emergency crisis intervention services, and stabilization 
310.28 	services; screening, assessment, and diagnosis services, including risk assessments and 
310.29 	level of care determinations; patient-centered treatment planning; outpatient mental 
310.30 	health and substance use services; targeted case management; psychiatric rehabilitation 
310.31 	services; peer support and counselor services and family support services; and intensive 
310.32 	community-based mental health services, including mental health services for members of 
310.33 	the armed forces and veterans; and
310.34 	(6) clinics comply with quality assurance reporting requirements and other reporting 
310.35 	requirements, including any required reporting of encounter data, clinical outcomes data, 
310.36 	and quality data. (7) provide coordination of care across settings and providers to ensure 
311.1 	seamless transitions for patients across the full spectrum of health services, including 
311.2 	acute, chronic, and behavioral needs. Care coordination may be accomplished through 
311.3 	partnerships or formal contracts with:
311.4 	(i) counties, health plans, pharmacists, pharmacies, rural health clinics, federally 
311.5 	qualified health centers, inpatient psychiatric facilities, substance use and detoxification 
311.6 	facilities, or community-based mental health providers; and
311.7 	(ii) other community services, supports, and providers, including schools, child 
311.8 	welfare agencies, juvenile and criminal justice agencies, Indian health services clinics, 
311.9 	tribally licensed health care and mental health facilities, urban Indian health clinics, 
311.10 	Department of Veterans Affairs medical centers, outpatient clinics, drop-in centers, acute 
311.11 	care hospitals, and hospital outpatient clinics;
311.12 	(8) be certified as mental health clinics under section 245.69, subdivision 2;
311.13 	(9) be certified to provide integrated treatment for co-occurring mental illness and 
311.14 	substance use disorders in adults or children under Minnesota Rules, chapter 9533, 
311.15 	effective July 1, 2017;
311.16 	(10) comply with standards relating to mental health services in Minnesota Rules, 
311.17 	parts 9505.0370 to 9505.0372;
311.18 	(11) be licensed to provide chemical dependency treatment under Minnesota Rules, 
311.19 	parts 9530.6405 to 9530.6505;
311.20 	(12) be certified to provide children's therapeutic services and supports under 
311.21 	section 256B.0943;
311.22 	(13) be certified to provide adult rehabilitative mental health services under section 
311.23 	256B.0623;
311.24 	(14) be enrolled to provide mental health crisis response services under section 
311.25 	256B.0624;
311.26 	(15) be enrolled to provide mental health targeted case management under section 
311.27 	256B.0625, subdivision 20;
311.28 	(16) comply with standards relating to mental health case management in Minnesota 
311.29 	Rules, parts 9520.0900 to 9520.0926; and
311.30 	(17) provide services that comply with the evidence-based practices described in 
311.31 	paragraph (e).
311.32 	(b) If an entity is unable to provide one or more of the services listed in paragraph 
311.33 	(a), clauses (6) to (17), the commissioner may certify the entity as a CCBHC, if the entity 
311.34 	has a current contract with another entity that has the required authority to provide that 
311.35 	service and that meets federal CCBHC criteria as a designated collaborating organization, 
311.36 	or, to the extent allowed by the federal CCBHC criteria, the commissioner may approve a 
312.1 	referral arrangement. The CCBHC must meet federal requirements regarding the type and 
312.2 	scope of services to be provided directly by the CCBHC.
312.3 	(c) Notwithstanding any other law that requires a county contract or other form 
312.4 	of county approval for certain services listed in paragraph (a), clause (6), a clinic that 
312.5 	otherwise meets CCBHC requirements may receive the prospective payment under 
312.6 	paragraph (f) for those services without a county contract or county approval. There is no 
312.7 	county share when medical assistance pays the CCBHC prospective payment. As part of 
312.8 	the certification process in paragraph (a), the commissioner shall require a letter of support 
312.9 	from the CCBHC's host county confirming that the CCBHC and the county or counties it 
312.10 	serves have an ongoing relationship to facilitate access and continuity of care, especially 
312.11 	for individuals who are uninsured or who may go on and off medical assistance.
312.12 	(d) When the standards listed in paragraph (a) or other applicable standards 
312.13 	conflict or address similar issues in duplicative or incompatible ways, the commissioner 
312.14 	may grant variances to state requirements if the variances do not conflict with federal 
312.15 	requirements. If standards overlap, the commissioner may substitute all or a part of a 
312.16 	licensure or certification that is substantially the same as another licensure or certification. 
312.17 	The commissioner shall consult with stakeholders, as described in subdivision 4, before 
312.18 	granting variances under this provision.
312.19 	(e) The commissioner shall issue a list of required evidence-based practices to be 
312.20 	delivered by CCBHCs, and may also provide a list of recommended evidence-based 
312.21 	practices. The commissioner may update the list to reflect advances in outcomes research 
312.22 	and medical services for persons living with mental illnesses or substance use disorders. 
312.23 	The commissioner shall take into consideration the adequacy of evidence to support the 
312.24 	efficacy of the practice, the quality of workforce available, and the current availability of 
312.25 	the practice in the state. At least 30 days before issuing the initial list and any revisions, 
312.26 	the commissioner shall provide stakeholders with an opportunity to comment.
312.27 	(b) (f) The commissioner shall establish standards and methodologies for a 
312.28 	prospective payment system for medical assistance payments for mental health services 
312.29 	delivered by certified community behavioral health clinics, in accordance with guidance 
312.30 	issued on or before September 1, 2015, by the Centers for Medicare and Medicaid 
312.31 	Services. During the operation of the demonstration project, payments shall comply with 
312.32 	federal requirements for a 90 percent an enhanced federal medical assistance percentage. 
312.33 	The commissioner may include quality bonus payment in the prospective payment system 
312.34 	based on federal criteria and on a clinic's provision of the evidence-based practices 
312.35 	in paragraph (e). The prospective payment system does not apply to MinnesotaCare. 
313.1 	Implementation of the prospective payment system is effective July 1, 2017, or upon 
313.2 	federal approval, whichever is later.
313.3 	(g) The commissioner shall seek federal approval to continue federal financial 
313.4 	participation in payment for CCBHC services after the federal demonstration period 
313.5 	ends for clinics that were certified as CCBHCs during the demonstration period and 
313.6 	that continue to meet the CCBHC certification standards in paragraph (a). Payment 
313.7 	for CCBHC services shall cease effective July 1, 2019, if continued federal financial 
313.8 	participation for the payment of CCBHC services cannot be obtained.
313.9 	(h) The commissioner may certify at least one CCBHC located in an urban area and 
313.10 	at least one CCBHC located in a rural area, as defined by federal criteria. To the extent 
313.11 	allowed by federal law, the commissioner may limit the number of certified clinics so 
313.12 	that the projected claims for certified clinics will not exceed the funds budgeted for this 
313.13 	purpose. The commissioner shall give preference to clinics that:
313.14 	(1) provide a comprehensive range of services and evidence-based practices for all 
313.15 	age groups, with services being fully coordinated and integrated; and
313.16 	(2) enhance the state's ability to meet the federal priorities to be selected as a 
313.17 	CCBHC demonstration state.
313.18 	(i) The commissioner shall recertify CCBHCs at least every three years. The 
313.19 	commissioner shall establish a process for decertification and shall require corrective 
313.20 	action, medical assistance repayment, or decertification of a CCBHC that no longer 
313.21 	meets the requirements in this section or that fails to meet the standards provided by the 
313.22 	commissioner in the application and certification process.

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

313.24 	Sec. 2. Minnesota Statutes 2015 Supplement, section 245.735, subdivision 4, is 
313.25 	amended to read:
313.26 		Subd. 4.Public participation. In developing the projects and implementing 
313.27 	CCBHCs under subdivision 3, the commissioner shall consult, collaborate, and partner
313.28 	with stakeholders, including but not limited to mental health providers, substance 
313.29 	use disorder treatment providers, advocacy organizations, licensed mental health 
313.30 	professionals, counties, tribes, hospitals, other health care providers, and Minnesota public 
313.31 	health care program enrollees who receive mental health services and their families.

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

313.33 	Sec. 3. Minnesota Statutes 2014, section 245.99, subdivision 2, is amended to read:
314.1 		Subd. 2.Rental assistance. The program shall pay up to 90 days of housing 
314.2 	assistance for persons with a serious and persistent mental illness who require inpatient or 
314.3 	residential care for stabilization. The commissioner of human services may extend the 
314.4 	length of assistance on a case-by-case basis.

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

314.6 	Sec. 4. Minnesota Statutes 2014, section 254B.01, subdivision 4a, is amended to read:
314.7 		Subd. 4a.Culturally specific program. (a) "Culturally specific program" means a 
314.8 	substance use disorder treatment service program or subprogram that is recovery-focused 
314.9 	and culturally specific when the program:
314.10 	(1) improves service quality to and outcomes of a specific population by advancing 
314.11 	health equity to help eliminate health disparities; and
314.12 	(2) ensures effective, equitable, comprehensive, and respectful quality care services 
314.13 	that are responsive to an individual within a specific population's values, beliefs and 
314.14 	practices, health literacy, preferred language, and other communication needs.
314.15 	(b) A tribally licensed substance use disorder program that is designated as serving 
314.16 	a culturally specific population by the applicable tribal government is deemed to satisfy 
314.17 	this subdivision.

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

314.19 	Sec. 5. Minnesota Statutes 2014, section 254B.03, subdivision 4, is amended to read:
314.20 		Subd. 4.Division of costs. (a) Except for services provided by a county under 
314.21 	section 254B.09, subdivision 1, or services provided under section 256B.69or 256D.03, 
314.22 	subdivision 4, paragraph (b), the county shall, out of local money, pay the state for 22.95 
314.23 	percent of the cost of chemical dependency services, including those services provided to 
314.24 	persons eligible for medical assistance under chapter 256B and general assistance medical 
314.25 	care under chapter 256D. Counties may use the indigent hospitalization levy for treatment 
314.26 	and hospital payments made under this section. 
314.27 	(b) 22.95 percent of any state collections from private or third-party pay, less 15 
314.28 	percent for the cost of payment and collections, must be distributed to the county that paid 
314.29 	for a portion of the treatment under this section.
314.30 	(c) For fiscal year 2017 only, the 22.95 percentages under paragraphs (a) and (b) 
314.31 	are equal to 20.2 percent.

314.32 	Sec. 6. Minnesota Statutes 2014, section 254B.04, subdivision 2a, is amended to read:
315.1 		Subd. 2a.Eligibility for treatment in residential settings. Notwithstanding 
315.2 	provisions of Minnesota Rules, part 9530.6622, subparts 5 and 6, related to an assessor's 
315.3 	discretion in making placements to residential treatment settings, a person eligible for 
315.4 	services under this section must score at level 4 on assessment dimensions related to 
315.5 	relapse, continued use, or recovery environment in order to be assigned to services with a 
315.6 	room and board component reimbursed under this section. Whether a treatment facility 
315.7 	has been designated an institution for mental diseases under United States Code, title 42, 
315.8 	section 1396d, shall not be a factor in making placements.

315.9 	Sec. 7. Minnesota Statutes 2015 Supplement, section 254B.05, subdivision 5, is 
315.10 	amended to read:
315.11 		Subd. 5.Rate requirements. (a) The commissioner shall establish rates for 
315.12 	chemical dependency services and service enhancements funded under this chapter.
315.13 	(b) Eligible chemical dependency treatment services include:
315.14 	(1) outpatient treatment services that are licensed according to Minnesota Rules, 
315.15 	parts 9530.6405 to 9530.6480, or applicable tribal license;
315.16 	(2) medication-assisted therapy services that are licensed according to Minnesota 
315.17 	Rules, parts 9530.6405 to 9530.6480 and 9530.6500, or applicable tribal license;
315.18 	(3) medication-assisted therapy plus enhanced treatment services that meet the 
315.19 	requirements of clause (2) and provide nine hours of clinical services each week;
315.20 	(4) high, medium, and low intensity residential treatment services that are licensed 
315.21 	according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable 
315.22 	tribal license which provide, respectively, 30, 15, and five hours of clinical services each 
315.23 	week;
315.24 	(5) hospital-based treatment services that are licensed according to Minnesota Rules, 
315.25 	parts 9530.6405 to 9530.6480, or applicable tribal license and licensed as a hospital under 
315.26 	sections 144.50 to 144.56;
315.27 	(6) adolescent treatment programs that are licensed as outpatient treatment programs 
315.28 	according to Minnesota Rules, parts 9530.6405 to 9530.6485, or as residential treatment 
315.29 	programs according to Minnesota Rules, parts 2960.0010 to 2960.0220, and 2960.0430
315.30 	to 2960.0490, or applicable tribal license;
315.31 	(7) high-intensity residential treatment services that are licensed according to 
315.32 	Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable tribal 
315.33 	license, which provide 30 hours of clinical services each week provided by a state-operated 
315.34 	vendor or to clients who have been civilly committed to the commissioner, present the 
315.35 	most complex and difficult care needs, and are a potential threat to the community; and
316.1 	(8) room and board facilities that meet the requirements of subdivision 1a.
316.2 	(c) The commissioner shall establish higher rates for programs that meet the 
316.3 	requirements of paragraph (b) and one of the following additional requirements:
316.4 	(1) programs that serve parents with their children if the program:
316.5 	(i) provides on-site child care during the hours of treatment activity that:
316.6 	(A) is licensed under chapter 245A as a child care center under Minnesota Rules, 
316.7 	chapter 9503; or
316.8 	(B) meets the licensure exclusion criteria of section 245A.03, subdivision 2, 
316.9 	paragraph (a), clause (6), and meets the requirements under Minnesota Rules, part 
316.10 	9530.6490, subpart 4; or
316.11 	(ii) arranges for off-site child care during hours of treatment activity at a facility that 
316.12 	is licensed under chapter 245A as:
316.13 	(A) a child care center under Minnesota Rules, chapter 9503; or
316.14 	(B) a family child care home under Minnesota Rules, chapter 9502;
316.15 	(2) culturally specific programs as defined in section 254B.01, subdivision 4a, or 
316.16 	programs or subprograms serving special populations, if the program or subprogram meets 
316.17 	the following requirements in Minnesota Rules, part 9530.6605, subpart 13;:
316.18 	(i) is designed to address the unique needs of individuals who share a common 
316.19 	language, racial, ethnic, or social background;
316.20 	(ii) is governed with significant input from individuals of that specific background; 
316.21 	and
316.22 	(iii) employs individuals to provide individual or group therapy, at least 50 percent 
316.23 	of whom are of that specific background, except when the common social background of 
316.24 	the individuals served is a traumatic brain injury or cognitive disability and the program 
316.25 	employs treatment staff who have the necessary professional training, as approved by the 
316.26 	commissioner, to serve clients with the specific disabilities that the program is designed 
316.27 	to serve;
316.28 	(3) programs that offer medical services delivered by appropriately credentialed 
316.29 	health care staff in an amount equal to two hours per client per week if the medical 
316.30 	needs of the client and the nature and provision of any medical services provided are 
316.31 	documented in the client file; and
316.32 	(4) programs that offer services to individuals with co-occurring mental health and 
316.33 	chemical dependency problems if:
316.34 	(i) the program meets the co-occurring requirements in Minnesota Rules, part 
316.35 	9530.6495;
317.1 	(ii) 25 percent of the counseling staff are licensed mental health professionals, as 
317.2 	defined in section 245.462, subdivision 18, clauses (1) to (6), or are students or licensing 
317.3 	candidates under the supervision of a licensed alcohol and drug counselor supervisor and 
317.4 	licensed mental health professional, except that no more than 50 percent of the mental 
317.5 	health staff may be students or licensing candidates with time documented to be directly 
317.6 	related to provisions of co-occurring services;
317.7 	(iii) clients scoring positive on a standardized mental health screen receive a mental 
317.8 	health diagnostic assessment within ten days of admission;
317.9 	(iv) the program has standards for multidisciplinary case review that include a 
317.10 	monthly review for each client that, at a minimum, includes a licensed mental health 
317.11 	professional and licensed alcohol and drug counselor, and their involvement in the review 
317.12 	is documented;
317.13 	(v) family education is offered that addresses mental health and substance abuse 
317.14 	disorders and the interaction between the two; and
317.15 	(vi) co-occurring counseling staff willshall receive eight hours of co-occurring 
317.16 	disorder training annually.
317.17 	(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program 
317.18 	that provides arrangements for off-site child care must maintain current documentation at 
317.19 	the chemical dependency facility of the child care provider's current licensure to provide 
317.20 	child care services. Programs that provide child care according to paragraph (c), clause 
317.21 	(1), must be deemed in compliance with the licensing requirements in Minnesota Rules, 
317.22 	part 9530.6490.
317.23 	(e) Adolescent residential programs that meet the requirements of Minnesota 
317.24 	Rules, parts 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are exempt from the 
317.25 	requirements in paragraph (c), clause (4), items (i) to (iv).
317.26 	(f) Subject to federal approval, chemical dependency services that are otherwise 
317.27 	covered as direct face-to-face services may be provided via two-way interactive video. 
317.28 	The use of two-way interactive video must be medically appropriate to the condition and 
317.29 	needs of the person being served. Reimbursement shall be at the same rates and under the 
317.30 	same conditions that would otherwise apply to direct face-to-face services. The interactive 
317.31 	video equipment and connection must comply with Medicare standards in effect at the 
317.32 	time the service is provided.

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

317.34 	Sec. 8. Minnesota Statutes 2014, section 254B.06, subdivision 2, is amended to read:
318.1 		Subd. 2.Allocation of collections. (a) The commissioner shall allocate all federal 
318.2 	financial participation collections to a special revenue account. The commissioner shall 
318.3 	allocate 77.05 percent of patient payments and third-party payments to the special revenue 
318.4 	account and 22.95 percent to the county financially responsible for the patient.
318.5 	(b) For fiscal year 2017 only, the commissioner's allocation to the special revenue 
318.6 	account shall be increased from 77.05 percent to 79.8 percent and the county financial 
318.7 	responsibility shall be reduced from 22.95 percent to 20.2 percent.

318.8 	EFFECTIVE DATE. This section is effective July 1, 2016.

318.9 	Sec. 9. Minnesota Statutes 2014, section 254B.06, is amended by adding a subdivision 
318.10 	to read:
318.11 		Subd. 4.Reimbursement for institutions for mental diseases. The commissioner 
318.12 	shall not deny reimbursement to a program designated as an institution for mental diseases 
318.13 	under United States Code, title 42, section 1396d, due to a reduction in federal financial 
318.14 	participation and the addition of new residential beds.

318.15 	Sec. 10. [254B.15] PILOT PROJECTS; TREATMENT FOR PREGNANT AND 
318.16 	POSTPARTUM WOMEN WITH SUBSTANCE USE DISORDER.
318.17 		Subdivision 1.Pilot projects established. (a) Within the limits of federal funds 
318.18 	available specifically for this purpose, the commissioner of human services shall establish 
318.19 	pilot projects to provide substance use disorder treatment and services to pregnant and 
318.20 	postpartum women with a primary diagnosis of substance use disorder, including opioid 
318.21 	use disorder. Pilot projects funded under this section must:
318.22 	(1) promote flexible uses of funds to provide treatment and services to pregnant and 
318.23 	postpartum women with substance use disorders;
318.24 	(2) fund family-based treatment and services for pregnant and postpartum women 
318.25 	with substance use disorders;
318.26 	(3) identify gaps in services along the continuum of care that are provided to 
318.27 	pregnant and postpartum women with substance use disorders; and
318.28 	(4) encourage new approaches to service delivery and service delivery models.
318.29 	(b) A pilot project funded under this section must provide at least a portion of its 
318.30 	treatment and services to women who receive services on an outpatient basis.
318.31 		Subd. 2.Federal funds. The commissioner shall apply for any available grant funds 
318.32 	from the federal Center for Substance Abuse Treatment for these pilot projects.

319.1 	Sec. 11. Minnesota Statutes 2014, section 256B.0622, is amended by adding a 
319.2 	subdivision to read:
319.3 		Subd. 12.Start-up grants. The commissioner may, within available appropriations, 
319.4 	disburse grant funding to counties, Indian tribes, or mental health service providers to 
319.5 	establish additional assertive community treatment teams, intensive residential treatment 
319.6 	services, or crisis residential services.

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

319.8 	ARTICLE 17
319.9 	DIRECT CARE AND TREATMENT

319.10 	Section 1. Minnesota Statutes 2014, section 246.50, subdivision 7, is amended to read:
319.11 		Subd. 7.Client's county. "Client's county" means the county of the client's legal 
319.12 	settlement for poor relief purposes at the time of commitment or voluntary admission to a 
319.13 	state facility, or if the client has no such legal settlement in this state, it means the county 
319.14 	of commitment financial responsibility under chapter 256G, except that where a client 
319.15 	with no such legal settlement residence in this state is committed while serving a sentence 
319.16 	at a penal institution, it means the county from which the client was sentenced.

319.17 	Sec. 2. Minnesota Statutes 2014, section 246.54, as amended by Laws 2015, chapter 
319.18 	71, article 4, section 2, is amended to read:
319.19 	246.54 LIABILITY OF COUNTY; REIMBURSEMENT.
319.20 		Subdivision 1.County portion for cost of care Generally. (a) Except for chemical 
319.21 	dependency services provided under sections 254B.01 to 254B.09, the client's county 
319.22 	shall pay to the state of Minnesota a portion of the cost of care provided in a regional 
319.23 	treatment center or a state nursing facility to a client legally settled in that county. A 
319.24 	county's payment shall be made from the county's own sources of revenue and payments 
319.25 	shall equal a percentage of the cost of care, as determined by the commissioner, for each 
319.26 	day, or the portion thereof, that the client spends at a regional treatment center or a state 
319.27 	nursing facility according to the following schedule:.
319.28 		Subd. 1a.Anoka-Metro Regional Treatment Center. (a) A county's payment of 
319.29 	the cost of care provided at Anoka-Metro Regional Treatment Center shall be according to 
319.30 	the following schedule:
319.31 	(1) zero percent for the first 30 days;
319.32 	(2) 20 percent for days 31 and over if the stay is determined to be clinically 
319.33 	appropriate for the client; and
320.1 	(3) 100 percent for each day during the stay, including the day of admission, when 
320.2 	the facility determines that it is clinically appropriate for the client to be discharged.
320.3 	(b) If payments received by the state under sections 246.50 to 246.53 exceed 80 
320.4 	percent of the cost of care for days over 31 for clients who meet the criteria in paragraph 
320.5 	(a), clause (2), the county shall be responsible for paying the state only the remaining 
320.6 	amount. The county shall not be entitled to reimbursement from the client, the client's 
320.7 	estate, or from the client's relatives, except as provided in section 246.53.
320.8 		Subd. 1b.Community behavioral health hospitals. A county's payment of the 
320.9 	cost of care provided at state-operated community-based behavioral health hospitals shall 
320.10 	be according to the following schedule:
320.11 	(1) 100 percent for each day during the stay, including the day of admission, when 
320.12 	the facility determines that it is clinically appropriate for the client to be discharged; and
320.13 	(2) the county shall not be entitled to reimbursement from the client, the client's 
320.14 	estate, or from the client's relatives, except as provided in section 246.53.
320.15 		Subd. 1c.State-operated forensic services. A county's payment of the cost of care 
320.16 	provided at state-operated forensic services shall be according to the following schedule:
320.17 	(1) Minnesota Security Hospital: ten percent for each day, or portion thereof, that the 
320.18 	client spends in a Minnesota Security Hospital program. If payments received by the state 
320.19 	under sections 246.50 to 246.53 for services provided at the Minnesota Security Hospital 
320.20 	exceed 90 percent of the cost of care, the county shall be responsible for paying the state 
320.21 	only the remaining amount. The county shall not be entitled to reimbursement from the 
320.22 	client, the client's estate, or the client's relatives except as provided in section 246.53;
320.23 	(2) forensic nursing home: ten percent for each day, or portion thereof, that the client 
320.24 	spends in a forensic nursing home program. If payments received by the state under 
320.25 	sections 246.50 to 246.53 for services provided at the forensic nursing home exceed 90 
320.26 	percent of the cost of care, the county shall be responsible for paying the state only the 
320.27 	remaining amount. The county shall not be entitled to reimbursement from the client, the 
320.28 	client's estate, or the client's relatives except as provided in section 246.53;
320.29 	(3) forensic transition services: 50 percent for each day, or portion thereof, that the 
320.30 	client spends in the forensic transition services program. If payments received by the state 
320.31 	under sections 246.50 to 246.53 for services provided in the forensic transition services 
320.32 	exceed 50 percent of the cost of care, the county shall be responsible for paying the state 
320.33 	only the remaining amount. The county shall not be entitled to reimbursement from the 
320.34 	client, the client's estate, or the client's relatives except as provided in section 246.53; and
320.35 	(4) residential competency restoration program:
321.1 	(i) 20 percent for each day, or portion thereof, that the client spends in a residential 
321.2 	competency restoration program while the client is in need of restoration services;
321.3 	(ii) 50 percent for each day, or portion thereof, that the client spends in a residential 
321.4 	competency restoration program once the examiner determines that the client no longer 
321.5 	needs restoration services; and
321.6 	(iii) 100 percent for each day, or portion thereof, once charges against a client have 
321.7 	been resolved or dropped.
321.8 		Subd. 2.Exceptions. (a) Subdivision 1 does not apply to services provided at the 
321.9 	Minnesota Security Hospital. For services at the Minnesota Security Hospital, a county's 
321.10 	payment shall be made from the county's own sources of revenue and payments. Excluding 
321.11 	the state-operated forensic transition service, payments to the state from the county shall 
321.12 	equal ten percent of the cost of care, as determined by the commissioner, for each day, or 
321.13 	the portion thereof, that the client spends at the facility. For the state-operated forensic 
321.14 	transition service, payments to the state from the county shall equal 50 percent of the cost of 
321.15 	care, as determined by the commissioner, for each day, or the portion thereof, that the client 
321.16 	spends in the program. If payments received by the state under sections 246.50 to 246.53 
321.17 	for services provided at the Minnesota Security Hospital, excluding the state-operated 
321.18 	forensic transition service, exceed 90 percent of the cost of care, the county shall be 
321.19 	responsible for paying the state only the remaining amount. If payments received by the 
321.20 	state under sections 246.50 to 246.53 for the state-operated forensic transition service 
321.21 	exceed 50 percent of the cost of care, the county shall be responsible for paying the state 
321.22 	only the remaining amount. The county shall not be entitled to reimbursement from the 
321.23 	client, the client's estate, or from the client's relatives, except as provided in section 246.53.
321.24 	(b) Regardless of the facility to which the client is committed, subdivision 1 does
321.25 	subdivisions 1, 1a, 1b, and 1c, do not apply to the following individuals:
321.26 	(1) clients who are committed as sexual psychopathic personalities under section 
321.27 	253D.02, subdivision 15; and
321.28 	(2) clients who are committed as sexually dangerous persons under section 253D.02, 
321.29 	subdivision 16.

321.30 	Sec. 3. Minnesota Statutes 2014, section 246B.01, subdivision 1b, is amended to read:
321.31 		Subd. 1b.Civilly committed sex offender's county. "Civilly committed sex 
321.32 	offender's county" means the county of the civilly committed sex offender's legal 
321.33 	settlement for poor relief purposes at the time of commitment. If the civilly committed 
321.34 	sex offender has no legal settlement for poor relief in this state, it means the county of 
321.35 	commitment financial responsibility under chapter 256G, except that when a civilly 
322.1 	committed sex offender with no legal settlement for poor relief residence in this state is 
322.2 	committed while serving a sentence at a penal institution, it means the county from which 
322.3 	the civilly committed sex offender was sentenced.

322.4 	Sec. 4. Minnesota Statutes 2014, section 246B.035, is amended to read:
322.5 	246B.035 ANNUAL PERFORMANCE REPORT REQUIRED.
322.6 	The executive director of the Minnesota sex offender program shall submit 
322.7 	electronically a performance report to the chairs and ranking minority members of the 
322.8 	legislative committees and divisions with jurisdiction over funding for the program by 
322.9 	January February 15 of each year beginning in 2010 2017. The report must include the 
322.10 	following:
322.11 	(1) a description of the program, including the strategic mission, goals, objectives, 
322.12 	and outcomes;
322.13 	(2) the programwide per diem reported in a standard calculated method as outlined 
322.14 	in the program policies and procedures;
322.15 	(3) program annual statistics as outlined in the departmental policies and procedures; 
322.16 	and
322.17 	(4) the sex offender program evaluation report required under section 246B.03. The 
322.18 	executive director shall submit a printed copy upon request.

322.19 	Sec. 5. REPORT ON ANOKA-METRO REGIONAL TREATMENT CENTER 
322.20 	(AMRTC), MINNESOTA SECURITY HOSPITAL (MSH), AND COMMUNITY 
322.21 	BEHAVIORAL HEALTH HOSPITALS (CBHH).
 322.22 	The commissioner of human services shall issue a public quarterly report to the 
322.23 	chairs and ranking minority leaders of the senate and house of representatives committees 
322.24 	having jurisdiction over health and human services issues on the AMRTC, MSH, and 
322.25 	CBHH. The report shall contain information on the number of licensed beds, budgeted 
322.26 	capacity, occupancy rate, number of Occupational Safety and Health Administration 
322.27 	(OSHA) recordable injuries and the number of OSHA recordable injuries due to patient 
322.28 	aggression or restraint, number of clinical positions budgeted, the percentage of those 
322.29 	positions that are filled, the number of direct care positions budgeted, and the percentage 
322.30 	of those positions that are filled.

323.1 	ARTICLE 18
323.2 	CONTINUING CARE

323.3 	Section 1. Minnesota Statutes 2014, section 144A.073, subdivision 13, is amended to 
323.4 	read:
323.5 		Subd. 13.Moratorium exception funding. In fiscal year 2013, the commissioner 
323.6 	of health may approve moratorium exception projects under this section for which the 
323.7 	full annualized state share of medical assistance costs does not exceed $1,000,000 plus 
323.8 	any carryover of previous appropriations for this purpose.

323.9 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2012.

323.10 	Sec. 2. Minnesota Statutes 2014, section 144A.073, subdivision 14, is amended to read:
323.11 		Subd. 14.Moratorium exception funding. In fiscal year 2015, the commissioner 
323.12 	of health may approve moratorium exception projects under this section for which the 
323.13 	full annualized state share of medical assistance costs does not exceed $1,000,000 plus 
323.14 	any carryover of previous appropriations for this purpose.

323.15 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2014.

323.16 	Sec. 3. Minnesota Statutes 2014, section 144A.073, is amended by adding a 
323.17 	subdivision to read:
323.18 		Subd. 15.Moratorium exception funding. In fiscal year 2017, the commissioner 
323.19 	may approve moratorium exception projects under this section for which the full 
323.20 	annualized state share of medical assistance costs does not exceed $1,000,000 plus any 
323.21 	carryover of previous appropriations for this purpose.

323.22 	Sec. 4. Minnesota Statutes 2014, section 144A.611, subdivision 1, is amended to read:
323.23 		Subdivision 1.Nursing homes and certified boarding care homes. The actual 
323.24 	costs of tuition and textbooks and reasonable expenses for the competency evaluation 
323.25 	or the nursing assistant training program and competency evaluation approved under 
323.26 	section 144A.61, which are paid to nursing assistants or adult training programs pursuant 
323.27 	to subdivision subdivisions 2 and 4, are a reimbursable expense for nursing homes 
323.28 	and certified boarding care homes under the provisions of chapter 256B and the rules 
323.29 	promulgated thereunder section 256B.431, subdivision 36.

323.30 	EFFECTIVE DATE. This section is effective for costs incurred on or after October 
323.31 	1, 2016.

324.1 	Sec. 5. Minnesota Statutes 2014, section 144A.611, subdivision 2, is amended to read:
324.2 		Subd. 2.Nursing assistants Reimbursement for training program and 
324.3 	competency evaluation costs. A nursing assistant who has completed an approved 
324.4 	competency evaluation or an approved training program and competency evaluation 
324.5 	shall be reimbursed by the nursing home or certified boarding care home for actual costs 
324.6 	of tuition and textbooks and reasonable expenses for the competency evaluation or the 
324.7 	training program and competency evaluation 90 days after the date of employment, or 
324.8 	upon completion of the approved training program, whichever is later.

324.9 	EFFECTIVE DATE. This section is effective for costs incurred on or after October 
324.10 	1, 2016.

324.11 	Sec. 6. Minnesota Statutes 2014, section 144A.611, is amended by adding a 
324.12 	subdivision to read:
324.13 		Subd. 4.Reimbursement for adult basic education components. (a) Nursing 
324.14 	facilities and certified boarding care homes shall provide reimbursement for costs related 
324.15 	to additional adult basic education components of an approved nursing assistant training 
324.16 	program, to:
324.17 	(1) an adult training program that provided an approved nursing assistant training 
324.18 	program to an employee of the nursing facility or boarding care home; or
324.19 	(2) a nursing assistant who is an employee of the nursing facility or boarding care 
324.20 	home and completed an approved nursing assistant training program provided by an 
324.21 	adult training program.
324.22 	(b) For purposes of this subdivision, adult basic education components of a nursing 
324.23 	assistant training program must include the following, if needed: training in mathematics, 
324.24 	vocabulary, literacy skills, workplace skills, resume writing, and job interview skills. 
324.25 	Reimbursement provided under this subdivision shall not exceed 30 percent of the cost of 
324.26 	tuition, textbooks, and competency evaluation.
324.27 	(c) An adult training program is prohibited from billing program students, nursing 
324.28 	facilities, or certified boarding care homes for costs under this subdivision until the 
324.29 	program student has been employed by the nursing facility as a certified nursing assistant 
324.30 	for at least 90 days.

324.31 	EFFECTIVE DATE. This section is effective for costs incurred on or after October 
324.32 	1, 2016.

325.1 	Sec. 7. Minnesota Statutes 2014, section 245A.11, subdivision 2a, as amended by Laws 
325.2 	2016, chapter 163, article 3, section 5, if enacted, is amended to read:
325.3 		Subd. 2a.Adult foster care and community residential setting license capacity.
 325.4 	(a) The commissioner shall issue adult foster care and community residential setting 
325.5 	licenses with a maximum licensed capacity of four beds, including nonstaff roomers and 
325.6 	boarders, except that the commissioner may issue a license with a capacity of five beds, 
325.7 	including roomers and boarders, according to paragraphs (b) to (f).
325.8 	(b) The license holder may have a maximum license capacity of five if all persons 
325.9 	in care are age 55 or over and do not have a serious and persistent mental illness or a 
325.10 	developmental disability.
325.11 	(c) The commissioner may grant variances to paragraph (b) to allow a facility with a 
325.12 	licensed capacity of up to five persons to admit an individual under the age of 55 if the 
325.13 	variance complies with section 245A.04, subdivision 9, and approval of the variance is 
325.14 	recommended by the county in which the licensed facility is located.
325.15 	(d) The commissioner may grant variances to paragraph (b) to allow the use of 
325.16 	an additional bed, up to five, for emergency crisis services for a person with serious 
325.17 	and persistent mental illness or a developmental disability, regardless of age, if the 
325.18 	variance complies with section 245A.04, subdivision 9, and approval of the variance is 
325.19 	recommended by the county in which the licensed facility is located.
325.20 	(e) The commissioner may grant a variance to paragraph (b) to allow for the use 
325.21 	of an additional bed, up to five, for respite services, as defined in section 245A.02, 
325.22 	for persons with disabilities, regardless of age, if the variance complies with sections 
325.23 	245A.03, subdivision 7, and 245A.04, subdivision 9, and approval of the variance is 
325.24 	recommended by the county in which the licensed facility is located. Respite care may be 
325.25 	provided under the following conditions:
325.26 	(1) staffing ratios cannot be reduced below the approved level for the individuals 
325.27 	being served in the home on a permanent basis;
325.28 	(2) no more than two different individuals can be accepted for respite services in 
325.29 	any calendar month and the total respite days may not exceed 120 days per program in 
325.30 	any calendar year;
325.31 	(3) the person receiving respite services must have his or her own bedroom, which 
325.32 	could be used for alternative purposes when not used as a respite bedroom, and cannot be 
325.33 	the room of another person who lives in the facility; and
325.34 	(4) individuals living in the facility must be notified when the variance is approved. 
325.35 	The provider must give 60 days' notice in writing to the residents and their legal 
325.36 	representatives prior to accepting the first respite placement. Notice must be given to 
326.1 	residents at least two days prior to service initiation, or as soon as the license holder is 
326.2 	able if they receive notice of the need for respite less than two days prior to initiation, 
326.3 	each time a respite client will be served, unless the requirement for this notice is waived 
326.4 	by the resident or legal guardian.
326.5 	(f) The commissioner may issue an adult foster care or community residential setting 
326.6 	license with a capacity of five adults if the fifth bed does not increase the overall statewide 
326.7 	capacity of licensed adult foster care or community residential setting beds in homes that 
326.8 	are not the primary residence of the license holder, as identified in a plan submitted to the 
326.9 	commissioner by the county, when the capacity is recommended by the county licensing 
326.10 	agency of the county in which the facility is located and if the recommendation verifies that:
326.11 	(1) the facility meets the physical environment requirements in the adult foster 
326.12 	care licensing rule;
326.13 	(2) the five-bed living arrangement is specified for each resident in the resident's:
326.14 	(i) individualized plan of care;
326.15 	(ii) individual service plan under section 256B.092, subdivision 1b, if required; or
326.16 	(iii) individual resident placement agreement under Minnesota Rules, part 
326.17 	9555.5105, subpart 19, if required;
326.18 	(3) the license holder obtains written and signed informed consent from each 
326.19 	resident or resident's legal representative documenting the resident's informed choice 
326.20 	to remain living in the home and that the resident's refusal to consent would not have 
326.21 	resulted in service termination; and
326.22 	(4) the facility was licensed for adult foster care before March 1, 2011.
326.23 	(g) The commissioner shall not issue a new adult foster care license under paragraph 
326.24 	(f) after June 30, 2019 2017. The commissioner shall allow a facility with an adult foster 
326.25 	care license issued under paragraph (f) before June 30, 2019 2017, to continue with a 
326.26 	capacity of five adults if the license holder continues to comply with the requirements in 
326.27 	paragraph (f).

326.28 	Sec. 8. Minnesota Statutes 2015 Supplement, section 256B.431, subdivision 36, 
326.29 	is amended to read:
326.30 		Subd. 36.Employee scholarship costs and training in English as a second 
326.31 	language. (a) For the period between July 1, 2001, and June 30, 2003, the commissioner 
326.32 	shall provide to each nursing facility reimbursed under this section, section 256B.434, 
326.33 	or any other section, a scholarship per diem of 25 cents to the total operating payment 
326.34 	rate. For the 27-month period beginning October 1, 2015, through December 31, 2017, 
326.35 	the commissioner shall allow a scholarship per diem of up to 25 cents for each nursing 
327.1 	facility with no scholarship per diem that is requesting a scholarship per diem to be added 
327.2 	to the external fixed payment rate to be used:
327.3 	(1) for employee scholarships that satisfy the following requirements:
327.4 	(i) scholarships are available to all employees who work an average of at least 
327.5 	ten hours per week at the facility except the administrator, and to reimburse student 
327.6 	loan expenses for newly hired and recently graduated registered nurses and licensed 
327.7 	practical nurses, and training expenses for nursing assistants as definedspecified in section 
327.8 	144A.611, subdivision subdivisions 2 and 4, who are newly hired and have graduated 
327.9 	within the last 12 months; and
327.10 	(ii) the course of study is expected to lead to career advancement with the facility or 
327.11 	in long-term care, including medical care interpreter services and social work; and
327.12 	(2) to provide job-related training in English as a second language.
327.13 	(b) All facilities may annually request a rate adjustment under this subdivision by 
327.14 	submitting information to the commissioner on a schedule and in a form supplied by the 
327.15 	commissioner. The commissioner shall allow a scholarship payment rate equal to the 
327.16 	reported and allowable costs divided by resident days.
327.17 	(c) In calculating the per diem under paragraph (b), the commissioner shall allow 
327.18 	costs related to tuition, direct educational expenses, and reasonable costs as defined by the 
327.19 	commissioner for child care costs and transportation expenses related to direct educational 
327.20 	expenses.
327.21 	(d) The rate increase under this subdivision is an optional rate add-on that the facility 
327.22 	must request from the commissioner in a manner prescribed by the commissioner. The 
327.23 	rate increase must be used for scholarships as specified in this subdivision.
327.24 	(e) For instances in which a rate adjustment will be 15 cents or greater, nursing 
327.25 	facilities that close beds during a rate year may request to have their scholarship 
327.26 	adjustment under paragraph (b) recalculated by the commissioner for the remainder of the 
327.27 	rate year to reflect the reduction in resident days compared to the cost report year.

327.28 	EFFECTIVE DATE. This section is effective for costs incurred on or after October 
327.29 	1, 2016.

327.30 	Sec. 9. REVISOR'S INSTRUCTION.
 327.31 	(a) The revisor of statutes shall codify Laws 2015, chapter 71, article 7, section 55, 
327.32 	as Minnesota Statutes, section 256B.0921.
327.33 	(b) The revisor of statutes, in consultation with the Department of Human Services, 
327.34 	shall change the cross-references in Minnesota Rules, chapters 2960, 9503, and 9525, 
327.35 	resulting from the repealer adopted in rules found at 40 State Register 179. The revisor 
328.1 	may make technical and other necessary changes to sentence structure to preserve the 
328.2 	meaning of the text.

328.3 	EFFECTIVE DATE. Paragraph (b) is effective the day following final enactment.

328.4 	ARTICLE 19
328.5 	HEALTH CARE

328.6 	Section 1. Minnesota Statutes 2015 Supplement, section 16A.724, subdivision 2, 
328.7 	is amended to read:
328.8 		Subd. 2.Transfers. (a) Notwithstanding section 295.581, to the extent available 
328.9 	resources in the health care access fund exceed expenditures in that fund, effective for 
328.10 	the biennium beginning July 1, 2007, the commissioner of management and budget 
328.11 	shall transfer the excess funds from the health care access fund to the general fund on 
328.12 	June 30 of each year, provided that the amount transferred in  fiscal year 2016 shall not 
328.13 	exceed $48,000,000, the amount in fiscal year 2017 shall not exceed $122,000,000, and 
328.14 	the amount in any fiscal biennium thereafter shall not exceed $96,000,000 $244,000,000. 
328.15 	The purpose of this transfer is to meet the rate increase required under Laws 2003, First 
328.16 	Special Session chapter 14, article 13C, section 2, subdivision 6.
328.17 	(b) For fiscal years 2006 to 2011, MinnesotaCare shall be a forecasted program, and, 
328.18 	if necessary, the commissioner shall reduce these transfers from the health care access 
328.19 	fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary, 
328.20 	transfer sufficient funds from the general fund to the health care access fund to meet 
328.21 	annual MinnesotaCare expenditures.

328.22 	Sec. 2. Minnesota Statutes 2014, section 62V.05, is amended by adding a subdivision 
328.23 	to read:
328.24 		Subd. 12.Reports on interagency agreements and intra-agency transfers. The 
328.25 	MNsure Board shall provide quarterly reports to the chairs and ranking minority members 
328.26 	of the legislative committees with jurisdiction over health and human services policy 
328.27 	and finance on:
328.28 	(1) interagency agreements or service-level agreements and any renewals or 
328.29 	extensions of existing interagency or service-level agreements with a state department 
328.30 	under section 15.01, state agency under section 15.012, or the Office of MN.IT Services, 
328.31 	with a value of more than $100,000, or related agreements with the same department or 
328.32 	agency with a cumulative value of more than $100,000; and
329.1 	(2) transfers of appropriations of more than $100,000 between accounts within or 
329.2 	between agencies.
329.3 	The report must include the statutory citation authorizing the agreement, transfer or dollar 
329.4 	amount, purpose, and effective date of the agreement, the duration of the agreement, and 
329.5 	a copy of the agreement.

329.6 	Sec. 3. Minnesota Statutes 2014, section 256.01, is amended by adding a subdivision 
329.7 	to read:
329.8 		Subd. 41.Reports on interagency agreements and intra-agency transfers. The 
329.9 	commissioner of human services shall provide quarterly reports to the chairs and ranking 
329.10 	minority members of the legislative committees with jurisdiction over health and human 
329.11 	services policy and finance on:
329.12 	(1) interagency agreements or service-level agreements and any renewals or 
329.13 	extensions of existing interagency or service-level agreements with a state department 
329.14 	under section 15.01, state agency under section 15.012, or the Office of MN.IT Services, 
329.15 	with a value of more than $100,000, or related agreements with the same department or 
329.16 	agency with a cumulative value of more than $100,000; and
329.17 	(2) transfers of appropriations of more than $100,000 between accounts within or 
329.18 	between agencies.
329.19 	The report must include the statutory citation authorizing the agreement, transfer or dollar 
329.20 	amount, purpose, and effective date of the agreement, the duration of the agreement, and 
329.21 	a copy of the agreement.

329.22 	Sec. 4. Minnesota Statutes 2014, section 256B.059, subdivision 1, is amended to read:
329.23 		Subdivision 1.Definitions. (a) For purposes of this section and sections 256B.058
329.24 	and 256B.0595, the terms defined in this subdivision have the meanings given them.
329.25 	(b) "Community spouse" means the spouse of an institutionalized spouse.
329.26 	(c) "Spousal share" means one-half of the total value of all assets, to the extent that 
329.27 	either the institutionalized spouse or the community spouse had an ownership interest at 
329.28 	the time of the first continuous period of institutionalization.
329.29 	(d) (c) "Assets otherwise available to the community spouse" means assets 
329.30 	individually or jointly owned by the community spouse, other than assets excluded by 
329.31 	subdivision 5, paragraph (c).
329.32 	(e) (d) "Community spouse asset allowance" is the value of assets that can be 
329.33 	transferred under subdivision 3.
329.34 	(f) (e) "Institutionalized spouse" means a person who is:
330.1 	(1) in a hospital, nursing facility, or intermediate care facility for persons with 
330.2 	developmental disabilities, or receiving home and community-based services under 
330.3 	section 256B.0915, and is expected to remain in the facility or institution or receive the 
330.4 	home and community-based services for at least 30 consecutive days; and
330.5 	(2) married to a person who is not in a hospital, nursing facility, or intermediate 
330.6 	care facility for persons with developmental disabilities, and is not receiving home and 
330.7 	community-based services under section 256B.0915, 256B.092, or 256B.49.
330.8 	(g) (f) "For the sole benefit of" means no other individual or entity can benefit in any 
330.9 	way from the assets or income at the time of a transfer or at any time in the future.
330.10 	(h) (g) "Continuous period of institutionalization" means a 30-consecutive-day 
330.11 	period of time in which a person is expected to stay in a medical or long-term care facility, 
330.12 	or receive home and community-based services that would qualify for coverage under 
330.13 	the elderly waiver (EW) or alternative care (AC) programs. For a stay in a facility, the 
330.14 	30-consecutive-day period begins on the date of entry into a medical or long-term care 
330.15 	facility. For receipt of home and community-based services, the 30-consecutive-day 
330.16 	period begins on the date that the following conditions are met:
330.17 	(1) the person is receiving services that meet the nursing facility level of care 
330.18 	determined by a long-term care consultation;
330.19 	(2) the person has received the long-term care consultation within the past 60 days;
330.20 	(3) the services are paid by the EW program under section 256B.0915 or the AC 
330.21 	program under section 256B.0913 or would qualify for payment under the EW or AC 
330.22 	programs if the person were otherwise eligible for either program, and but for the receipt 
330.23 	of such services the person would have resided in a nursing facility; and
330.24 	(4) the services are provided by a licensed provider qualified to provide home and 
330.25 	community-based services.

330.26 	EFFECTIVE DATE. This section is effective June 1, 2016.

330.27 	Sec. 5. Minnesota Statutes 2014, section 256B.059, subdivision 2, is amended to read:
330.28 		Subd. 2.Assessment of spousal sharemarital assets. At the beginning of the 
330.29 	first continuous period of institutionalization of a person beginning on or after October 
330.30 	1, 1989, at the request of either the institutionalized spouse or the community spouse, or
330.31 	Upon application for medical assistance benefits for an institutionalized spouse, the total 
330.32 	value of assets in which either the institutionalized spouse or the community spouse had
330.33 	has an interest at the time of the first period of institutionalization of 30 days or more shall 
330.34 	be assessed and documented and the spousal share shall be assessed and documented the 
330.35 	community spouse asset allowance shall be calculated as required in subdivision 3.

331.1 	EFFECTIVE DATE. This section is effective June 1, 2016.

331.2 	Sec. 6. Minnesota Statutes 2014, section 256B.059, subdivision 3, is amended to read:
331.3 		Subd. 3.Community spouse asset allowance. An institutionalized spouse may 
331.4 	transfer assets to the community spouse for the sole benefit of the community spouse. 
331.5 	Except for increased amounts allowable under subdivision 4, the maximum amount of 
331.6 	assets allowed to be transferred is the amount which, when added to the assets otherwise 
331.7 	available to the community spouse, is as follows the greater of:
331.8 	(1) prior to July 1, 1994, the greater of:
331.9 	(i) $14,148;
331.10 	(ii) the lesser of the spousal share or $70,740; or
331.11 	(iii) the amount required by court order to be paid to the community spouse; and
331.12 	(2) for persons whose date of initial determination of eligibility for medical 
331.13 	assistance following their first continuous period of institutionalization occurs on or after 
331.14 	July 1, 1994, the greater of:
331.15 	(i) $20,000;
331.16 	(ii) the lesser of the spousal share or $70,740; or
331.17 	(iii) the amount required by court order to be paid to the community spouse.
331.18 	(1) $119,220 subject to an annual adjustment on January 1, 2017, and every January 
331.19 	1 thereafter, equal to the percentage increase in the Consumer Price Index for All Urban 
331.20 	Consumers (all items; United States city average) between the two previous Septembers; or
331.21 	(2) the amount required by court order to be paid to the community spouse.
331.22 	If the assets available to the community spouse are already at the limit permissible 
331.23 	under this section, or the higher limit attributable to increases under subdivision 4, no assets 
331.24 	may be transferred from the institutionalized spouse to the community spouse. The transfer 
331.25 	must be made as soon as practicable after the date the institutionalized spouse is determined 
331.26 	eligible for medical assistance, or within the amount of time needed for any court order 
331.27 	required for the transfer. On January 1, 1994, and every January 1 thereafter, the limits in 
331.28 	this subdivision shall be adjusted by the same percentage change in the Consumer Price 
331.29 	Index for All Urban Consumers (all items; United States city average) between the two 
331.30 	previous Septembers. These adjustments shall also be applied to the limits in subdivision 5.

331.31 	EFFECTIVE DATE. This section is effective June 1, 2016.

331.32 	Sec. 7. Minnesota Statutes 2015 Supplement, section 256B.059, subdivision 5, is 
331.33 	amended to read:
332.1 		Subd. 5.Asset availability. (a) At the time of initial determination of eligibility for 
332.2 	medical assistance benefits following the first continuous period of institutionalization 
332.3 	on or after October 1, 1989 for an institutionalized spouse, assets considered available 
332.4 	to the institutionalized spouse shall be the total value of all assets in which either spouse 
332.5 	has an ownership interest, reduced by the following amount for the community spouse:
332.6 	available to the community spouse under subdivision 3.
332.7 	(1) prior to July 1, 1994, the greater of:
332.8 	(i) $14,148;
332.9 	(ii) the lesser of the spousal share or $70,740; or
332.10 	(iii) the amount required by court order to be paid to the community spouse;
332.11 	(2) for persons whose date of initial determination of eligibility for medical 
332.12 	assistance following their first continuous period of institutionalization occurs on or after 
332.13 	July 1, 1994, the greater of:
332.14 	(i) $20,000;
332.15 	(ii) the lesser of the spousal share or $70,740; or
332.16 	(iii) the amount required by court order to be paid to the community spouse.
332.17 	The value of assets transferred for the sole benefit of the community spouse under section 
332.18 	256B.0595, subdivision 4, in combination with other assets available to the community 
332.19 	spouse under this section, cannot exceed the limit for the community spouse asset 
332.20 	allowance determined under subdivision 3 or 4. Assets that exceed this allowance shall 
332.21 	be considered available to the institutionalized spouse. If the community spouse asset 
332.22 	allowance has been increased under subdivision 4, then the assets considered available to 
332.23 	the institutionalized spouse under this subdivision shall be further reduced by the value of 
332.24 	additional amounts allowed under subdivision 4.
332.25 	(b) An institutionalized spouse may be found eligible for medical assistance even 
332.26 	though assets in excess of the allowable amount are found to be available under paragraph 
332.27 	(a) if the assets are owned jointly or individually by the community spouse, and the 
332.28 	institutionalized spouse cannot use those assets to pay for the cost of care without the 
332.29 	consent of the community spouse, and if: 
332.30 	(i) the institutionalized spouse assigns to the commissioner the right to support from 
332.31 	the community spouse under section 256B.14, subdivision 3; 
332.32 	(ii) the institutionalized spouse lacks the ability to execute an assignment due to a 
332.33 	physical or mental impairment; or 
332.34 	(iii) the denial of eligibility would cause an imminent threat to the institutionalized 
332.35 	spouse's health and well-being.; or
333.1 	(iv) the assets in excess of the amount under paragraph (a) are assets owned by the 
333.2 	community spouse, and the denial of eligibility would cause an undue hardship to the 
333.3 	family due to the loss of retirement funds for the community spouse or funds protected for 
333.4 	the postsecondary education of a child under 25 years of age. For purposes of this clause, 
333.5 	only retirement assets held by the community spouse in a tax-deferred retirement account, 
333.6 	including a defined benefit plan, defined contribution plan, an employer-sponsored 
333.7 	individual retirement arrangement, or individually purchased individual retirement 
333.8 	arrangement are protected, and are only protected until the community spouse is eligible to 
333.9 	withdraw retirement funds from any or all accounts without penalty. For purposes of this 
333.10 	clause, only funds in a plan designated under section 529 of the Internal Revenue Code 
333.11 	on behalf of a child of either or both spouses who is under 25 years of age are protected. 
333.12 	There shall not be an assignment of spousal support to the commissioner or a cause of 
333.13 	action against the individual's spouse under section 256B.14, subdivision 3, for the funds 
333.14 	in the protected retirement and college savings accounts.
333.15 	(c) After the month in which the institutionalized spouse is determined eligible for 
333.16 	medical assistance, and during the continuous period of institutionalizationenrollment, no 
333.17 	assets of the community spouse are considered available to the institutionalized spouse, 
333.18 	unless the institutionalized spouse has been found eligible under paragraph (b).
333.19 	(d) Assets determined to be available to the institutionalized spouse under this 
333.20 	section must be used for the health care or personal needs of the institutionalized spouse.
333.21 	(e) For purposes of this section, assets do not include assets excluded under the 
333.22 	Supplemental Security Income program.

333.23 	EFFECTIVE DATE. This section is effective June 1, 2016. The commissioner 
333.24 	shall cease implementation of the amendment to paragraph (b), clause (iv), if the federal 
333.25 	government denies the state plan amendment. The commissioner shall inform the revisor 
333.26 	of statutes once federal approval is obtained or denied.

333.27 	Sec. 8. Minnesota Statutes 2014, section 256B.059, is amended by adding a 
333.28 	subdivision to read:
333.29 		Subd. 6.Temporary application. (a) During the period in which rules against 
333.30 	spousal impoverishment are temporarily applied according to section 2404 of the Patient 
333.31 	Protection Affordable Care Act, Public Law 111-148, as amended by the Health Care and 
333.32 	Education Reconciliation Act of 2010, Public Law 111-152, this section applies to an 
333.33 	institutionalized spouse:
333.34 	(1) applying for home and community-based waivers under sections 256B.092, 
333.35 	256B.093, and 256B.49 on or after June 1, 2016;
334.1 	(2) enrolled in home and community-based waivers under sections 256B.092, 
334.2 	256B.093, and 256B.49 before June 1, 2016; or
334.3 	(3) applying for services under section 256B.85 upon the effective date of that section.
334.4 	(b) During the applicable period of paragraph (a), the definition of "institutionalized 
334.5 	spouse" in subdivision 1, paragraph (f), also includes an institutionalized spouse 
334.6 	referenced in paragraph (a).

334.7 	EFFECTIVE DATE. (a) Minnesota Statutes, section 256B.059, subdivision 6, 
334.8 	paragraphs (a), clauses (1) and (3), and (b), are effective June 1, 2016. Minnesota Statutes, 
334.9 	section 256B.059, subdivision 6, paragraph (a), clause (2), is effective March 1, 2017.
334.10 	(b) Minnesota Statutes, section 256B.059, subdivision 6, paragraph (a), clauses (1) 
334.11 	and (2), expire upon notification to the commissioner of human services that the Center for 
334.12 	Medicare and Medicaid Services approved the continuation of the deeming rules in effect 
334.13 	on May 31, 2016, for the treatment of the assets of a community spouse. The commissioner 
334.14 	of human services shall notify the revisor of statutes when notice is received.

334.15 	Sec. 9. Minnesota Statutes 2014, section 256B.06, subdivision 4, is amended to read:
334.16 		Subd. 4.Citizenship requirements. (a) Eligibility for medical assistance is limited 
334.17 	to citizens of the United States, qualified noncitizens as defined in this subdivision, and 
334.18 	other persons residing lawfully in the United States. Citizens or nationals of the United 
334.19 	States must cooperate in obtaining satisfactory documentary evidence of citizenship or 
334.20 	nationality according to the requirements of the federal Deficit Reduction Act of 2005, 
334.21 	Public Law 109-171.
334.22 	(b) "Qualified noncitizen" means a person who meets one of the following 
334.23 	immigration criteria:
334.24 	(1) admitted for lawful permanent residence according to United States Code, title 8;
334.25 	(2) admitted to the United States as a refugee according to United States Code, 
334.26 	title 8, section 1157;
334.27 	(3) granted asylum according to United States Code, title 8, section 1158;
334.28 	(4) granted withholding of deportation according to United States Code, title 8, 
334.29 	section 1253(h);
334.30 	(5) paroled for a period of at least one year according to United States Code, title 8, 
334.31 	section 1182(d)(5);
334.32 	(6) granted conditional entrant status according to United States Code, title 8, 
334.33 	section 1153(a)(7);
335.1 	(7) determined to be a battered noncitizen by the United States Attorney General 
335.2 	according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 
335.3 	title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;
335.4 	(8) is a child of a noncitizen determined to be a battered noncitizen by the United 
335.5 	States Attorney General according to the Illegal Immigration Reform and Immigrant 
335.6 	Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill, 
335.7 	Public Law 104-200; or
335.8 	(9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public 
335.9 	Law 96-422, the Refugee Education Assistance Act of 1980.
335.10 	(c) All qualified noncitizens who were residing in the United States before August 
335.11 	22, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for 
335.12 	medical assistance with federal financial participation.
335.13 	(d) Beginning December 1, 1996, qualified noncitizens who entered the United 
335.14 	States on or after August 22, 1996, and who otherwise meet the eligibility requirements 
335.15 	of this chapter are eligible for medical assistance with federal participation for five years 
335.16 	if they meet one of the following criteria:
335.17 	(1) refugees admitted to the United States according to United States Code, title 8, 
335.18 	section 1157;
335.19 	(2) persons granted asylum according to United States Code, title 8, section 1158;
335.20 	(3) persons granted withholding of deportation according to United States Code, 
335.21 	title 8, section 1253(h);
335.22 	(4) veterans of the United States armed forces with an honorable discharge for 
335.23 	a reason other than noncitizen status, their spouses and unmarried minor dependent 
335.24 	children; or
335.25 	(5) persons on active duty in the United States armed forces, other than for training, 
335.26 	their spouses and unmarried minor dependent children. 
335.27 	Beginning July 1, 2010, children and pregnant women who are noncitizens 
335.28 	described in paragraph (b) or who are lawfully present in the United States as defined 
335.29 	in Code of Federal Regulations, title 8, section 103.12, and who otherwise meet 
335.30 	eligibility requirements of this chapter, are eligible for medical assistance with federal 
335.31 	financial participation as provided by the federal Children's Health Insurance Program 
335.32 	Reauthorization Act of 2009, Public Law 111-3.
335.33 	(e) Nonimmigrants who otherwise meet the eligibility requirements of this chapter 
335.34 	are eligible for the benefits as provided in paragraphs (f) to (h). For purposes of this 
335.35 	subdivision, a "nonimmigrant" is a person in one of the classes listed in United States 
335.36 	Code, title 8, section 1101(a)(15).
336.1 	(f) Payment shall also be made for care and services that are furnished to noncitizens, 
336.2 	regardless of immigration status, who otherwise meet the eligibility requirements of 
336.3 	this chapter, if such care and services are necessary for the treatment of an emergency 
336.4 	medical condition.
336.5 	(g) For purposes of this subdivision, the term "emergency medical condition" means 
336.6 	a medical condition that meets the requirements of United States Code, title 42, section 
336.7 	1396b(v).
336.8 	(h)(1) Notwithstanding paragraph (g), services that are necessary for the treatment 
336.9 	of an emergency medical condition are limited to the following:
336.10 	(i) services delivered in an emergency room or by an ambulance service licensed 
336.11 	under chapter 144E that are directly related to the treatment of an emergency medical 
336.12 	condition;
336.13 	(ii) services delivered in an inpatient hospital setting following admission from an 
336.14 	emergency room or clinic for an acute emergency condition; and
336.15 	(iii) follow-up services that are directly related to the original service provided 
336.16 	to treat the emergency medical condition and are covered by the global payment made 
336.17 	to the provider.
336.18 	(2) Services for the treatment of emergency medical conditions do not include:
336.19 	(i) services delivered in an emergency room or inpatient setting to treat a 
336.20 	nonemergency condition;
336.21 	(ii) organ transplants, stem cell transplants, and related care;
336.22 	(iii) services for routine prenatal care;
336.23 	(iv) continuing care, including long-term care, nursing facility services, home health 
336.24 	care, adult day care, day training, or supportive living services;
336.25 	(v) elective surgery;
336.26 	(vi) outpatient prescription drugs, unless the drugs are administered or dispensed as 
336.27 	part of an emergency room visit;
336.28 	(vii) preventative health care and family planning services;
336.29 	(viii) rehabilitation services;
336.30 	(ix) physical, occupational, or speech therapy;
336.31 	(x) transportation services;
336.32 	(xi) case management;
336.33 	(xii) prosthetics, orthotics, durable medical equipment, or medical supplies;
336.34 	(xiii) dental services;
336.35 	(xiv) hospice care;
336.36 	(xv) audiology services and hearing aids;
337.1 	(xvi) podiatry services;
337.2 	(xvii) chiropractic services;
337.3 	(xviii) immunizations;
337.4 	(xix) vision services and eyeglasses;
337.5 	(xx) waiver services;
337.6 	(xxi) individualized education programs; or
337.7 	(xxii) chemical dependency treatment.
337.8 	(i) Pregnant noncitizens who are ineligible for federally funded medical assistance 
337.9 	because of immigration status, are not covered by a group health plan or health insurance 
337.10 	coverage according to Code of Federal Regulations, title 42, section 457.310, and who 
337.11 	otherwise meet the eligibility requirements of this chapter, are eligible for medical 
337.12 	assistance through the period of pregnancy, including labor and delivery, and 60 days 
337.13 	postpartum, to the extent federal funds are available under title XXI of the Social Security 
337.14 	Act, and the state children's health insurance program.
337.15 	(j) Beginning October 1, 2003, persons who are receiving care and rehabilitation 
337.16 	services from a nonprofit center established to serve victims of torture and are otherwise 
337.17 	ineligible for medical assistance under this chapter are eligible for medical assistance 
337.18 	without federal financial participation. These individuals are eligible only for the period 
337.19 	during which they are receiving services from the center. Individuals eligible under this 
337.20 	paragraph shall not be required to participate in prepaid medical assistance. The nonprofit 
337.21 	center referenced under this paragraph may establish itself as a provider of mental health 
337.22 	targeted case management services through a county contract under section 256.0112, 
337.23 	subdivision 6. If the nonprofit center is unable to secure a contract with a lead county in its 
337.24 	service area, then, notwithstanding the requirements of section 256B.0625, subdivision 
337.25 	20, the commissioner may negotiate a contract with the nonprofit center for provision of 
337.26 	mental health targeted case management services. When serving clients who are not the 
337.27 	financial responsibility of their contracted lead county, the nonprofit center must gain the 
337.28 	concurrence of the county of financial responsibility prior to providing mental health 
337.29 	targeted case management services for those clients.
337.30 	(k) Notwithstanding paragraph (h), clause (2), the following services are covered as 
337.31 	emergency medical conditions under paragraph (f) except where coverage is prohibited 
337.32 	under federal law for services under clauses (1) and (2):
337.33 	(1) dialysis services provided in a hospital or freestanding dialysis facility; and
337.34 	(2) surgery and the administration of chemotherapy, radiation, and related services 
337.35 	necessary to treat cancer if the recipient has a cancer diagnosis that is not in remission and 
337.36 	requires surgery, chemotherapy, or radiation treatment; and
338.1 	(3) kidney transplant if the person has been diagnosed with end stage renal disease, 
338.2 	is currently receiving dialysis services, and is a potential candidate for a kidney transplant.
338.3 	(l) Effective July 1, 2013, recipients of emergency medical assistance under this 
338.4 	subdivision are eligible for coverage of the elderly waiver services provided under section 
338.5 	256B.0915, and coverage of rehabilitative services provided in a nursing facility. The 
338.6 	age limit for elderly waiver services does not apply. In order to qualify for coverage, a 
338.7 	recipient of emergency medical assistance is subject to the assessment and reassessment 
338.8 	requirements of section 256B.0911. Initial and continued enrollment under this paragraph 
338.9 	is subject to the limits of available funding.

338.10 	Sec. 10. Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 17a, 
338.11 	is amended to read:
338.12 		Subd. 17a.Payment for ambulance services. (a) Medical assistance covers 
338.13 	ambulance services. Providers shall bill ambulance services according to Medicare 
338.14 	criteria. Nonemergency ambulance services shall not be paid as emergencies. Effective 
338.15 	for services rendered on or after July 1, 2001, medical assistance payments for ambulance 
338.16 	services shall be paid at the Medicare reimbursement rate or at the medical assistance 
338.17 	payment rate in effect on July 1, 2000, whichever is greater.
338.18 	(b) Effective for services provided on or after July 1, 2016, medical assistance 
338.19 	payment rates for ambulance services identified in this paragraph are increased by five 
338.20 	percent. Capitation payments made to managed care plans and county-based purchasing 
338.21 	plans for ambulance services provided on or after January 1, 2017, shall be increased 
338.22 	to reflect this rate increase. The increased rate described in this paragraph applies to 
338.23 	ambulance service providers whose base of operations as defined in section 144E.10 
338.24 	is located: 
338.25 	(1) outside the metropolitan counties listed in section 473.121, subdivision 4, and 
338.26 	outside the cities of Duluth, Mankato, Moorhead, St. Cloud, and Rochester; or
338.27 	(2) within a municipality with a population of less than 1,000.

338.28 	Sec. 11. Minnesota Statutes 2014, section 256B.0625, subdivision 30, is amended to 
338.29 	read:
338.30 		Subd. 30.Other clinic services. (a) Medical assistance covers rural health clinic 
338.31 	services, federally qualified health center services, nonprofit community health clinic 
338.32 	services, and public health clinic services. Rural health clinic services and federally 
338.33 	qualified health center services mean services defined in United States Code, title 42, 
339.1 	section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified 
339.2 	health center services shall be made according to applicable federal law and regulation.
339.3 	(b) A federally qualified health center that is beginning initial operation shall submit 
339.4 	an estimate of budgeted costs and visits for the initial reporting period in the form and 
339.5 	detail required by the commissioner. A federally qualified health center that is already in 
339.6 	operation shall submit an initial report using actual costs and visits for the initial reporting 
339.7 	period. Within 90 days of the end of its reporting period, a federally qualified health 
339.8 	center shall submit, in the form and detail required by the commissioner, a report of 
339.9 	its operations, including allowable costs actually incurred for the period and the actual 
339.10 	number of visits for services furnished during the period, and other information required 
339.11 	by the commissioner. Federally qualified health centers that file Medicare cost reports 
339.12 	shall provide the commissioner with a copy of the most recent Medicare cost report filed 
339.13 	with the Medicare program intermediary for the reporting year which support the costs 
339.14 	claimed on their cost report to the state.
339.15 	(c) In order to continue cost-based payment under the medical assistance program 
339.16 	according to paragraphs (a) and (b), a federally qualified health center or rural health clinic 
339.17 	must apply for designation as an essential community provider within six months of final 
339.18 	adoption of rules by the Department of Health according to section 62Q.19, subdivision 
339.19 	7. For those federally qualified health centers and rural health clinics that have applied 
339.20 	for essential community provider status within the six-month time prescribed, medical 
339.21 	assistance payments will continue to be made according to paragraphs (a) and (b) for the 
339.22 	first three years after application. For federally qualified health centers and rural health 
339.23 	clinics that either do not apply within the time specified above or who have had essential 
339.24 	community provider status for three years, medical assistance payments for health services 
339.25 	provided by these entities shall be according to the same rates and conditions applicable 
339.26 	to the same service provided by health care providers that are not federally qualified 
339.27 	health centers or rural health clinics.
339.28 	(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally 
339.29 	qualified health center or a rural health clinic to make application for an essential 
339.30 	community provider designation in order to have cost-based payments made according 
339.31 	to paragraphs (a) and (b) no longer apply.
339.32 	(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b) 
339.33 	shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
339.34 	(f) Effective January 1, 2001, each federally qualified health center and rural health 
339.35 	clinic may elect to be paid either under the prospective payment system established 
339.36 	in United States Code, title 42, section 1396a(aa), or under an alternative payment 
340.1 	methodology consistent with the requirements of United States Code, title 42, section 
340.2 	1396a(aa), and approved by the Centers for Medicare and Medicaid Services. The 
340.3 	alternative payment methodology shall be 100 percent of cost as determined according to 
340.4 	Medicare cost principles.
340.5 	(g) For purposes of this section, "nonprofit community clinic" is a clinic that:
340.6 	(1) has nonprofit status as specified in chapter 317A;
340.7 	(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
340.8 	(3) is established to provide health services to low-income population groups, 
340.9 	uninsured, high-risk and special needs populations, underserved and other special needs 
340.10 	populations;
340.11 	(4) employs professional staff at least one-half of which are familiar with the 
340.12 	cultural background of their clients;
340.13 	(5) charges for services on a sliding fee scale designed to provide assistance to 
340.14 	low-income clients based on current poverty income guidelines and family size; and
340.15 	(6) does not restrict access or services because of a client's financial limitations or 
340.16 	public assistance status and provides no-cost care as needed.
340.17 	(h) Effective for services provided on or after January 1, 2015, all claims for 
340.18 	payment of clinic services provided by federally qualified health centers and rural health 
340.19 	clinics shall be paid by the commissioner. The commissioner shall determine the most 
340.20 	feasible method for paying claims from the following options:
340.21 	(1) federally qualified health centers and rural health clinics submit claims directly 
340.22 	to the commissioner for payment, and the commissioner provides claims information for 
340.23 	recipients enrolled in a managed care or county-based purchasing plan to the plan, on 
340.24 	a regular basis; or
340.25 	(2) federally qualified health centers and rural health clinics submit claims for 
340.26 	recipients enrolled in a managed care or county-based purchasing plan to the plan, and 
340.27 	those claims are submitted by the plan to the commissioner for payment to the clinic.
340.28 	(i) For clinic services provided prior to January 1, 2015, the commissioner shall 
340.29 	calculate and pay monthly the proposed managed care supplemental payments to clinics, 
340.30 	and clinics shall conduct a timely review of the payment calculation data in order to 
340.31 	finalize all supplemental payments in accordance with federal law. Any issues arising 
340.32 	from a clinic's review must be reported to the commissioner by January 1, 2017. Upon 
340.33 	final agreement between the commissioner and a clinic on issues identified under this 
340.34 	subdivision, and in accordance with United States Code, title 42, section 1396a(bb), no 
340.35 	supplemental payments for managed care plan or county-based purchasing plan claims 
340.36 	for services provided prior to January 1, 2015, shall be made after June 30, 2017. If the 
341.1 	commissioner and clinics are unable to resolve issues under this subdivision, the parties 
341.2 	shall submit the dispute to the arbitration process under section 14.57.
341.3 	(j) The commissioner shall seek a federal waiver, authorized under section 1115 
341.4 	of the Social Security Act, to obtain federal financial participation at the 100 percent 
341.5 	federal matching percentage available to facilities of the Indian Health Service or 
341.6 	tribal organization in accordance with section 1905(b) of the Social Security Act for 
341.7 	expenditures made to organizations dually certified under Title V of the Indian Health Care 
341.8 	Improvement Act, Public Law 94-437, and as a federally qualified health center under 
341.9 	paragraph (a) that provides services to American Indian and Alaskan Native individuals 
341.10 	eligible for services under this subdivision.

341.11 	Sec. 12. Minnesota Statutes 2014, section 256B.0625, subdivision 34, is amended to 
341.12 	read:
341.13 		Subd. 34.Indian health services facilities. (a) Medical assistance payments and 
341.14 	MinnesotaCare payments to facilities of the Indian health service and facilities operated 
341.15 	by a tribe or tribal organization under funding authorized by United States Code, title 
341.16 	25, sections 450f to 450n, or title III of the Indian Self-Determination and Education 
341.17 	Assistance Act, Public Law 93-638, for enrollees who are eligible for federal financial 
341.18 	participation, shall be at the option of the facility in accordance with the rate published by 
341.19 	the United States Assistant Secretary for Health under the authority of United States Code, 
341.20 	title 42, sections 248(a) and 249(b). General assistance medical care payments to facilities 
341.21 	of the Indian health services and facilities operated by a tribe or tribal organization for 
341.22 	the provision of outpatient medical care services billed after June 30, 1990, must be in 
341.23 	accordance with the general assistance medical care rates paid for the same services 
341.24 	when provided in a facility other than a facility of the Indian health service or a facility 
341.25 	operated by a tribe or tribal organization. MinnesotaCare payments for enrollees who are 
341.26 	not eligible for federal financial participation at facilities of the Indian health service and 
341.27 	facilities operated by a tribe or tribal organization for the provision of outpatient medical 
341.28 	services must be in accordance with the medical assistance rates paid for the same services 
341.29 	when provided in a facility other than a facility of the Indian health service or a facility 
341.30 	operated by a tribe or tribal organization.
341.31 	(b) Effective upon federal approval, the medical assistance payments to a dually 
341.32 	certified facility as defined in subdivision 30, paragraph (j), shall be the encounter rate 
341.33 	described in paragraph (a) or a rate that is substantially equivalent for services provided 
341.34 	to American Indians and Alaskan Native populations. The rate established under this 
341.35 	paragraph for dually certified facilities shall not apply to MinnesotaCare payments.

342.1 	Sec. 13. Minnesota Statutes 2014, section 256B.0625, is amended by adding a 
342.2 	subdivision to read:
342.3 		Subd. 60a.Community emergency medical technician services. (a) Medical 
342.4 	assistance covers services provided by a community emergency medical technician 
342.5 	(CEMT) who is certified under section 144E.275, subdivision 7, when the services are 
342.6 	provided in accordance with this subdivision.
342.7 	(b) A CEMT may provide a posthospital discharge visit when ordered by a treating 
342.8 	physician. The posthospital discharge visit includes:
342.9 	(1) verbal or visual reminders of discharge orders;
342.10 	(2) recording and reporting of vital signs to the patient's primary care provider;
342.11 	(3) medication access confirmation;
342.12 	(4) food access confirmation; and
342.13 	(5) identification of home hazards.
342.14 	(c) An individual who has repeat ambulance calls due to falls, has been discharged 
342.15 	from a nursing home, or has been identified by the individual's primary care provider as 
342.16 	at risk for nursing home placement, may receive a safety evaluation visit from a CEMT 
342.17 	when ordered by a primary care provider in accordance with the individual's care plan. A 
342.18 	safety evaluation visit includes:
342.19 	(1) medication access confirmation;
342.20 	(2) food access confirmation; and
342.21 	(3) identification of home hazards.
342.22 	(d) A CEMT shall be paid at $9.75 per 15-minute increment. A safety evaluation visit 
342.23 	may not be billed for the same day as a posthospital discharge visit for the same individual.

342.24 	EFFECTIVE DATE. This section is effective January 1, 2017, or upon federal 
342.25 	approval, whichever is later. The commissioner of human services shall notify the revisor 
342.26 	of statutes when federal approval is obtained.

342.27 	Sec. 14. Minnesota Statutes 2014, section 256B.15, subdivision 1, is amended to read:
342.28 		Subdivision 1.Policy and applicability. (a) It is the policy of this state that 
342.29 	individuals or couples, either or both of whom participate in the medical assistance 
342.30 	program, use their own assets to pay their share of the total cost of their care during or 
342.31 	after their enrollment in the program according to applicable federal law and the laws of 
342.32 	this state. The following provisions apply:
342.33 	(1) subdivisions 1c to 1k shall not apply to claims arising under this section which 
342.34 	are presented under section 525.313;
343.1 	(2) the provisions of subdivisions 1c to 1k expanding the interests included in an 
343.2 	estate for purposes of recovery under this section give effect to the provisions of United 
343.3 	States Code, title 42, section 1396p, governing recoveries, but do not give rise to any 
343.4 	express or implied liens in favor of any other parties not named in these provisions;
343.5 	(3) the continuation of a recipient's life estate or joint tenancy interest in real 
343.6 	property after the recipient's death for the purpose of recovering medical assistance under 
343.7 	this section modifies common law principles holding that these interests terminate on 
343.8 	the death of the holder;
343.9 	(4) all laws, rules, and regulations governing or involved with a recovery of medical 
343.10 	assistance shall be liberally construed to accomplish their intended purposes;
343.11 	(5) a deceased recipient's life estate and joint tenancy interests continued under 
343.12 	this section shall be owned by the remainderpersons or surviving joint tenants as their 
343.13 	interests may appear on the date of the recipient's death. They shall not be merged into the 
343.14 	remainder interest or the interests of the surviving joint tenants by reason of ownership. 
343.15 	They shall be subject to the provisions of this section. Any conveyance, transfer, sale, 
343.16 	assignment, or encumbrance by a remainderperson, a surviving joint tenant, or their heirs, 
343.17 	successors, and assigns shall be deemed to include all of their interest in the deceased 
343.18 	recipient's life estate or joint tenancy interest continued under this section; and
343.19 	(6) the provisions of subdivisions 1c to 1k continuing a recipient's joint tenancy 
343.20 	interests in real property after the recipient's death do not apply to a homestead owned of 
343.21 	record, on the date the recipient dies, by the recipient and the recipient's spouse as joint 
343.22 	tenants with a right of survivorship. Homestead means the real property occupied by the 
343.23 	surviving joint tenant spouse as their sole residence on the date the recipient dies and 
343.24 	classified and taxed to the recipient and surviving joint tenant spouse as homestead property 
343.25 	for property tax purposes in the calendar year in which the recipient dies. For purposes of 
343.26 	this exemption, real property the recipient and their surviving joint tenant spouse purchase 
343.27 	solely with the proceeds from the sale of their prior homestead, own of record as joint 
343.28 	tenants, and qualify as homestead property under section 273.124 in the calendar year 
343.29 	in which the recipient dies and prior to the recipient's death shall be deemed to be real 
343.30 	property classified and taxed to the recipient and their surviving joint tenant spouse as 
343.31 	homestead property in the calendar year in which the recipient dies. The surviving spouse, 
343.32 	or any person with personal knowledge of the facts, may provide an affidavit describing 
343.33 	the homestead property affected by this clause and stating facts showing compliance with 
343.34 	this clause. The affidavit shall be prima facie evidence of the facts it states.
344.1 	(b) For purposes of this section, "medical assistance" includes the medical assistance 
344.2 	program under this chapter and the general assistance medical care program under chapter 
344.3 	256D and alternative care for nonmedical assistance recipients under section 256B.0913.
344.4 	(c) For purposes of this section, beginning January 1, 2010, "medical assistance" 
344.5 	does not include Medicare cost-sharing benefits in accordance with United States Code, 
344.6 	title 42, section 1396p.
344.7 	(d) All provisions in this subdivision, and subdivisions 1d, 1f, 1g, 1h, 1i, and 1j, 
344.8 	related to the continuation of a recipient's life estate or joint tenancy interests in real 
344.9 	property after the recipient's death for the purpose of recovering medical assistance, are 
344.10 	effective only for life estates and joint tenancy interests established on or after August 1, 
344.11 	2003. For purposes of this paragraph, medical assistance does not include alternative care.

344.12 	Sec. 15. Minnesota Statutes 2014, section 256B.15, subdivision 1a, is amended to read:
344.13 		Subd. 1a.Estates subject to claims. (a) If a person receives any medical assistance 
344.14 	hereunder, on the person's death, if single, or on the death of the survivor of a married 
344.15 	couple, either or both of whom received medical assistance, or as otherwise provided for 
344.16 	in this section, the total amount paid for medical assistance rendered as limited under 
344.17 	subdivision 2  for the person and spouse shall be filed as a claim against the estate of the 
344.18 	person or the estate of the surviving spouse in the court having jurisdiction to probate the 
344.19 	estate or to issue a decree of descent according to sections 525.31 to 525.313.
344.20 	(b) For the purposes of this section, the person's estate must consist of:
344.21 	(1) the person's probate estate;
344.22 	(2) all of the person's interests or proceeds of those interests in real property the 
344.23 	person owned as a life tenant or as a joint tenant with a right of survivorship at the time of 
344.24 	the person's death;
344.25 	(3) all of the person's interests or proceeds of those interests in securities the person 
344.26 	owned in beneficiary form as provided under sections 524.6-301 to 524.6-311 at the time 
344.27 	of the person's death, to the extent the interests or proceeds of those interests become part 
344.28 	of the probate estate under section 524.6-307;
344.29 	(4) all of the person's interests in joint accounts, multiple-party accounts, and 
344.30 	pay-on-death accounts, brokerage accounts, investment accounts, or the proceeds of 
344.31 	those accounts, as provided under sections 524.6-201 to 524.6-214 at the time of the 
344.32 	person's death to the extent the interests become part of the probate estate under section 
344.33 	524.6-207; and
344.34 	(5) assets conveyed to a survivor, heir, or assign of the person through survivorship, 
344.35 	living trust, or other arrangements.
345.1 	(c) For the purpose of this section and recovery in a surviving spouse's estate for 
345.2 	medical assistance paid for a predeceased spouse, the estate must consist of all of the legal 
345.3 	title and interests the deceased individual's predeceased spouse had in jointly owned or 
345.4 	marital property at the time of the spouse's death, as defined in subdivision 2b, and the 
345.5 	proceeds of those interests, that passed to the deceased individual or another individual, a 
345.6 	survivor, an heir, or an assign of the predeceased spouse through a joint tenancy, tenancy 
345.7 	in common, survivorship, life estate, living trust, or other arrangement. A deceased 
345.8 	recipient who, at death, owned the property jointly with the surviving spouse shall have 
345.9 	an interest in the entire property.
345.10 	(d) For the purpose of recovery in a single person's estate or the estate of a survivor 
345.11 	of a married couple, "other arrangement" includes any other means by which title to all or 
345.12 	any part of the jointly owned or marital property or interest passed from the predeceased 
345.13 	spouse to another including, but not limited to, transfers between spouses which are 
345.14 	permitted, prohibited, or penalized for purposes of medical assistance.
345.15 	(e) A claim shall be filed if medical assistance was rendered for either or both 
345.16 	persons under one of the following circumstances:
345.17 	(1) the person was over 55 years of age, and received services under this chapter 
345.18 	prior to January 1, 2014;
345.19 	(2) the person resided in a medical institution for six months or longer, received 
345.20 	services under this chapter, and, at the time of institutionalization or application for 
345.21 	medical assistance, whichever is later, the person could not have reasonably been expected 
345.22 	to be discharged and returned home, as certified in writing by the person's treating 
345.23 	physician. For purposes of this section only, a "medical institution" means a skilled 
345.24 	nursing facility, intermediate care facility, intermediate care facility for persons with 
345.25 	developmental disabilities, nursing facility, or inpatient hospital; or
345.26 	(3) the person received general assistance medical care services under chapter 
345.27 	256D.; or
345.28 	(4) the person was 55 years of age or older and received medical assistance 
345.29 	services on or after January 1, 2014, that consisted of nursing facility services, home and 
345.30 	community-based services, or related hospital and prescription drug benefits.
345.31 	(f) The claim shall be considered an expense of the last illness of the decedent for 
345.32 	the purpose of section 524.3-805. Notwithstanding any law or rule to the contrary, a 
345.33 	state or county agency with a claim under this section must be a creditor under section 
345.34 	524.6-307. Any statute of limitations that purports to limit any county agency or the state 
345.35 	agency, or both, to recover for medical assistance granted hereunder shall not apply to any 
345.36 	claim made hereunder for reimbursement for any medical assistance granted hereunder. 
346.1 	Notice of the claim shall be given to all heirs and devisees of the decedent, and to other 
346.2 	persons with an ownership interest in the real property owned by the decedent at the time 
346.3 	of the decedent's death, whose identity can be ascertained with reasonable diligence. The 
346.4 	notice must include procedures and instructions for making an application for a hardship 
346.5 	waiver under subdivision 5; time frames for submitting an application and determination; 
346.6 	and information regarding appeal rights and procedures. Counties are entitled to one-half 
346.7 	of the nonfederal share of medical assistance collections from estates that are directly 
346.8 	attributable to county effort. Counties are entitled to ten percent of the collections for 
346.9 	alternative care directly attributable to county effort.

346.10 	EFFECTIVE DATE. This section is effective upon federal approval and applies 
346.11 	retroactively to services rendered on or after January 1, 2014, and to claims not paid prior 
346.12 	to July 1, 2016. The commissioner of human services shall notify the revisor of statutes 
346.13 	when federal approval is obtained.

346.14 	Sec. 16. Minnesota Statutes 2014, section 256B.15, subdivision 2, is amended to read:
346.15 		Subd. 2.Limitations on claims. (a) For services rendered prior to January 1, 2014, 
346.16 	the claim shall include only the total amount of medical assistance rendered after age 55 or 
346.17 	during a period of institutionalization described in subdivision 1a, paragraph (e), and the 
346.18 	total amount of general assistance medical care rendered, and shall not include interest. 
346.19 	(b) For services rendered on or after January 1, 2014, the claim shall include only:
346.20 	(1) the amount of medical assistance rendered to recipients 55 years of age or older 
346.21 	and that consisted of nursing facility services, home and community-based services, and 
346.22 	related hospital and prescription drug services; and
346.23 	(2) the total amount of medical assistance rendered during a period of 
346.24 	institutionalization described in subdivision 1a, paragraph (e), clause (2).
346.25 	The claim shall not include interest. For the purposes of this section, "home and 
346.26 	community-based services" has the same meaning it has when used in United States 
346.27 	Code, title 42, section 1396p(b)(1)(B)(i), and includes the alternative care program under 
346.28 	section 256B.0913.
346.29 	(c) Claims that have been allowed but not paid shall bear interest according to 
346.30 	section 524.3-806, paragraph (d). A claim against the estate of a surviving spouse who did 
346.31 	not receive medical assistance, for medical assistance rendered for the predeceased spouse, 
346.32 	shall be payable from the full value of all of the predeceased spouse's assets and interests 
346.33 	which are part of the surviving spouse's estate under subdivisions 1a and 2b. Recovery of 
346.34 	medical assistance expenses in the nonrecipient surviving spouse's estate is limited to the 
347.1 	value of the assets of the estate that were marital property or jointly owned property at any 
347.2 	time during the marriage. The claim is not payable from the value of assets or proceeds of 
347.3 	assets in the estate attributable to a predeceased spouse whom the individual married after 
347.4 	the death of the predeceased recipient spouse for whom the claim is filed or from assets 
347.5 	and the proceeds of assets in the estate which the nonrecipient decedent spouse acquired 
347.6 	with assets which were not marital property or jointly owned property after the death of 
347.7 	the predeceased recipient spouse. Claims for alternative care shall be net of all premiums 
347.8 	paid under section 256B.0913, subdivision 12, on or after July 1, 2003, and shall be 
347.9 	limited to services provided on or after July 1, 2003. Claims against marital property shall 
347.10 	be limited to claims against recipients who died on or after July 1, 2009.

347.11 	EFFECTIVE DATE. This section is effective upon federal approval and applies 
347.12 	retroactively to services rendered on or after January 1, 2014, and to claims not paid prior 
347.13 	to July 1, 2016. The commissioner of human services shall notify the revisor of statutes 
347.14 	when federal approval is obtained.

347.15 	Sec. 17. Minnesota Statutes 2015 Supplement, section 256B.76, subdivision 2, is 
347.16 	amended to read:
347.17 		Subd. 2.Dental reimbursement.  (a) Effective for services rendered on or after 
347.18 	October 1, 1992, the commissioner shall make payments for dental services as follows:
347.19 	(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 
347.20 	percent above the rate in effect on June 30, 1992; and
347.21 	(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th 
347.22 	percentile of 1989, less the percent in aggregate necessary to equal the above increases.
347.23 	(b) Beginning October 1, 1999, the payment for tooth sealants and fluoride treatments 
347.24 	shall be the lower of (1) submitted charge, or (2) 80 percent of median 1997 charges.
347.25 	(c) Effective for services rendered on or after January 1, 2000, payment rates for 
347.26 	dental services shall be increased by three percent over the rates in effect on December 
347.27 	31, 1999.
347.28 	(d) Effective for services provided on or after January 1, 2002, payment for 
347.29 	diagnostic examinations and dental x-rays provided to children under age 21 shall be the 
347.30 	lower of (1) the submitted charge, or (2) 85 percent of median 1999 charges.
347.31 	(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1, 
347.32 	2000, for managed care.
347.33 	(f) Effective for dental services rendered on or after October 1, 2010, by a 
347.34 	state-operated dental clinic, payment shall be paid on a reasonable cost basis that is based 
347.35 	on the Medicare principles of reimbursement. This payment shall be effective for services 
348.1 	rendered on or after January 1, 2011, to recipients enrolled in managed care plans or 
348.2 	county-based purchasing plans.
348.3 	(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics 
348.4 	in paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal 
348.5 	year, a supplemental state payment equal to the difference between the total payments 
348.6 	in paragraph (f) and $1,850,000 shall be paid from the general fund to state-operated 
348.7 	services for the operation of the dental clinics.
348.8 	(h) If the cost-based payment system for state-operated dental clinics described in 
348.9 	paragraph (f) does not receive federal approval, then state-operated dental clinics shall be 
348.10 	designated as critical access dental providers under subdivision 4, paragraph (b), and shall 
348.11 	receive the critical access dental reimbursement rate as described under subdivision 4, 
348.12 	paragraph (a).
348.13 	(i) Effective for services rendered on or after September 1, 2011, through June 30, 
348.14 	2013, payment rates for dental services shall be reduced by three percent. This reduction 
348.15 	does not apply to state-operated dental clinics in paragraph (f).
348.16 	(j) Effective for services rendered on or after January 1, 2014, payment rates for 
348.17 	dental services shall be increased by five percent from the rates in effect on December 
348.18 	31, 2013. This increase does not apply to state-operated dental clinics in paragraph (f), 
348.19 	federally qualified health centers, rural health centers, and Indian health services. Effective 
348.20 	January 1, 2014, payments made to managed care plans and county-based purchasing 
348.21 	plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment increase 
348.22 	described in this paragraph.
348.23 	(k) Effective for services rendered on or after July 1, 2015, through December 
348.24 	31, 2016, the commissioner shall increase payment rates for services furnished by 
348.25 	dental providers located outside of the seven-county metropolitan area by the maximum 
348.26 	percentage possible above the rates in effect on June 30, 2015, while remaining within 
348.27 	the limits of funding appropriated for this purpose. This increase does not apply to 
348.28 	state-operated dental clinics in paragraph (f), federally qualified health centers, rural health 
348.29 	centers, and Indian health services. Effective January 1, 2016, through December 31, 
348.30 	2016, payments to managed care plans and county-based purchasing plans under sections 
348.31 	256B.69 and 256B.692 shall reflect the payment increase described in this paragraph. The 
348.32 	commissioner shall require managed care and county-based purchasing plans to pass on 
348.33 	the full amount of the increase, in the form of higher payment rates to dental providers 
348.34 	located outside of the seven-county metropolitan area.
348.35 	(l) Effective for services provided on or after January 1, 2017, the commissioner 
348.36 	shall increase payment rates by 9.65 percent for dental services provided outside of 
349.1 	the seven-county metropolitan area. This increase does not apply to state-operated 
349.2 	dental clinics in paragraph (f), federally qualified health centers, rural health centers, or 
349.3 	Indian health services. Effective January 1, 2017, payments to managed care plans and 
349.4 	county-based purchasing plans under sections 256B.69 and 256B.692 shall reflect the 
349.5 	payment increase described in this paragraph.

349.6 	Sec. 18. Minnesota Statutes 2015 Supplement, section 256B.76, subdivision 4, is 
349.7 	amended to read:
349.8 		Subd. 4.Critical access dental providers.  (a) Effective for dental services rendered 
349.9 	on or after January 1, 2002, The commissioner shall increase reimbursements to dentists 
349.10 	and dental clinics deemed by the commissioner to be critical access dental providers. For 
349.11 	dental services rendered on or after July 1, 2007 2016, the commissioner shall increase 
349.12 	reimbursement by 35 37.5 percent above the reimbursement rate that would otherwise be 
349.13 	paid to the critical access dental provider, except as specified under paragraph (b). The 
349.14 	commissioner shall pay the managed care plans and county-based purchasing plans in 
349.15 	amounts sufficient to reflect increased reimbursements to critical access dental providers 
349.16 	as approved by the commissioner.
349.17 	(b) For dental services rendered on or after July 1, 2016, by a dental clinic or dental 
349.18 	group that meets the critical access dental provider designation under paragraph (d), 
349.19 	clause (4), and is owned and operated by a health maintenance organization licensed under 
349.20 	chapter 62D, the commissioner shall increase reimbursement by 35 percent above the 
349.21 	reimbursement rate that would otherwise be paid to the critical access provider.
349.22 	(c) Critical access dental payments made under paragraph (a) or (b) for dental 
349.23 	services provided by a critical access dental provider to an enrollee of a managed care plan 
349.24 	or county-based purchasing plan must not reflect any capitated payments or cost-based 
349.25 	payments from the managed care plan or county-based purchasing plan. The managed 
349.26 	care plan or county-based purchasing plan must base the additional critical access dental 
349.27 	payment on the amount that would have been paid for that service had the dental provider 
349.28 	been paid according to the managed care plan or county-based purchasing plan's fee 
349.29 	schedule that applies to dental providers that are not paid under a capitated payment 
349.30 	or cost-based payment.
349.31 	(d) The commissioner shall designate the following dentists and dental clinics as 
349.32 	critical access dental providers:
349.33 	(1) nonprofit community clinics that:
349.34 	(i) have nonprofit status in accordance with chapter 317A;
350.1 	(ii) have tax exempt status in accordance with the Internal Revenue Code, section 
350.2 	501(c)(3);
350.3 	(iii) are established to provide oral health services to patients who are low income, 
350.4 	uninsured, have special needs, and are underserved;
350.5 	(iv) have professional staff familiar with the cultural background of the clinic's 
350.6 	patients;
350.7 	(v) charge for services on a sliding fee scale designed to provide assistance to 
350.8 	low-income patients based on current poverty income guidelines and family size;
350.9 	(vi) do not restrict access or services because of a patient's financial limitations 
350.10 	or public assistance status; and
350.11 	(vii) have free care available as needed;
350.12 	(2) federally qualified health centers, rural health clinics, and public health clinics;
350.13 	(3) city or county hospital-based dental clinics owned and operated hospital-based 
350.14 	dental clinics by a city, county, or former state hospital as defined in section 62Q.19, 
350.15 	subdivision 1, paragraph (a), clause (4);
350.16 	(4) a dental clinic or dental group owned and operated by a nonprofit corporation in 
350.17 	accordance with chapter 317A with more than 10,000 patient encounters per year with 
350.18 	patients who are uninsured or covered by medical assistance or MinnesotaCare;
350.19 	(5) a dental clinic owned and operated by the University of Minnesota or the 
350.20 	Minnesota State Colleges and Universities system; and
350.21 	(6) private practicing dentists if:
350.22 	(i) the dentist's office is located within a health professional shortage area as defined 
350.23 	under Code of Federal Regulations, title 42, part 5, and United States Code, title 42, 
350.24 	section 254E;
350.25 	(ii) more the seven-county metropolitan area and more than 50 percent of the 
350.26 	dentist's patient encounters per year are with patients who are uninsured or covered by 
350.27 	medical assistance or MinnesotaCare; and or
350.28 	(iii) the level of service provided by the dentist is critical to maintaining adequate 
350.29 	levels of patient access within the service area in which the dentist operates.
350.30 	(ii) the dentist's office is located outside the seven-county metropolitan area and 
350.31 	more than 25 percent of the dentist's patient encounters per year are with patients who are 
350.32 	uninsured or covered by medical assistance or MinnesotaCare.

350.33 	Sec. 19. Minnesota Statutes 2015 Supplement, section 256B.766, is amended to read:
350.34 	256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
351.1 	(a) Effective for services provided on or after July 1, 2009, total payments for basic 
351.2 	care services, shall be reduced by three percent, except that for the period July 1, 2009, 
351.3 	through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical 
351.4 	assistance and general assistance medical care programs, prior to third-party liability and 
351.5 	spenddown calculation. Effective July 1, 2010, the commissioner shall classify physical 
351.6 	therapy services, occupational therapy services, and speech-language pathology and 
351.7 	related services as basic care services. The reduction in this paragraph shall apply to 
351.8 	physical therapy services, occupational therapy services, and speech-language pathology 
351.9 	and related services provided on or after July 1, 2010.
351.10 	(b) Payments made to managed care plans and county-based purchasing plans shall 
351.11 	be reduced for services provided on or after October 1, 2009, to reflect the reduction 
351.12 	effective July 1, 2009, and payments made to the plans shall be reduced effective October 
351.13 	1, 2010, to reflect the reduction effective July 1, 2010.
351.14 	(c) Effective for services provided on or after September 1, 2011, through June 30, 
351.15 	2013, total payments for outpatient hospital facility fees shall be reduced by five percent 
351.16 	from the rates in effect on August 31, 2011.
351.17 	(d) Effective for services provided on or after September 1, 2011, through June 
351.18 	30, 2013, total payments for ambulatory surgery centers facility fees, medical supplies 
351.19 	and durable medical equipment not subject to a volume purchase contract, prosthetics 
351.20 	and orthotics, renal dialysis services, laboratory services, public health nursing services, 
351.21 	physical therapy services, occupational therapy services, speech therapy services, 
351.22 	eyeglasses not subject to a volume purchase contract, hearing aids not subject to a volume 
351.23 	purchase contract, and anesthesia services shall be reduced by three percent from the 
351.24 	rates in effect on August 31, 2011.
351.25 	(e) Effective for services provided on or after September 1, 2014, payments 
351.26 	for ambulatory surgery centers facility fees, hospice services, renal dialysis services, 
351.27 	laboratory services, public health nursing services, eyeglasses not subject to a volume 
351.28 	purchase contract, and hearing aids not subject to a volume purchase contract shall be 
351.29 	increased by three percent and payments for outpatient hospital facility fees shall be 
351.30 	increased by three percent. Payments made to managed care plans and county-based 
351.31 	purchasing plans shall not be adjusted to reflect payments under this paragraph.
351.32 	(f) Payments for medical supplies and durable medical equipment not subject to a 
351.33 	volume purchase contract, and prosthetics and orthotics, provided on or after July 1, 2014, 
351.34 	through June 30, 2015, shall be decreased by .33 percent. Payments for medical supplies 
351.35 	and durable medical equipment not subject to a volume purchase contract, and prosthetics 
352.1 	and orthotics, provided on or after July 1, 2015, shall be increased by three percent from 
352.2 	the rates as determined under paragraph paragraphs (i) and (j).
352.3 	(g) Effective for services provided on or after July 1, 2015, payments for outpatient 
352.4 	hospital facility fees, medical supplies and durable medical equipment not subject to a 
352.5 	volume purchase contract, prosthetics and orthotics, and laboratory services to a hospital 
352.6 	meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause (4), 
352.7 	shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments made 
352.8 	to managed care plans and county-based purchasing plans shall not be adjusted to reflect 
352.9 	payments under this paragraph.
352.10 	(h) This section does not apply to physician and professional services, inpatient 
352.11 	hospital services, family planning services, mental health services, dental services, 
352.12 	prescription drugs, medical transportation, federally qualified health centers, rural health 
352.13 	centers, Indian health services, and Medicare cost-sharing.
352.14 	(i) Effective for services provided on or after July 1, 2015, the medical assistance 
352.15 	payment rate for durable medical equipment, prosthetics, orthotics, or supplies shall 
352.16 	be restored to the January 1, 2008, medical assistance fee schedule, updated to include 
352.17 	subsequent rate increases in the Medicare and medical assistance fee schedules, and 
352.18 	including following categories of durable medical equipment shall be individually priced 
352.19 	items for the following categories: enteral nutrition and supplies, customized and other 
352.20 	specialized tracheostomy tubes and supplies, electric patient lifts, and durable medical 
352.21 	equipment repair and service. This paragraph does not apply to medical supplies and 
352.22 	durable medical equipment subject to a volume purchase contract, products subject to the 
352.23 	preferred diabetic testing supply program, and items provided to dually eligible recipients 
352.24 	when Medicare is the primary payer for the item. The commissioner shall not apply any 
352.25 	medical assistance rate reductions to durable medical equipment as a result of Medicare 
352.26 	competitive bidding.
352.27 	(j) Effective for services provided on or after July 1, 2015, medical assistance 
352.28 	payment rates for durable medical equipment, prosthetics, orthotics, or supplies shall 
352.29 	be increased as follows:
352.30 	(1) payment rates for durable medical equipment, prosthetics, orthotics, or supplies 
352.31 	that were subject to the Medicare competitive bid that took effect in January of 2009 shall 
352.32 	be increased by 9.5 percent; and
352.33 	(2) payment rates for durable medical equipment, prosthetics, orthotics, or supplies 
352.34 	on the medical assistance fee schedule, whether or not subject to the Medicare competitive 
352.35 	bid that took effect in January of 2009, shall be increased by 2.94 percent, with this 
352.36 	increase being applied after calculation of any increased payment rate under clause (1).
353.1 	This paragraph does not apply to medical supplies and durable medical equipment subject 
353.2 	to a volume purchase contract, products subject to the preferred diabetic testing supply 
353.3 	program, items provided to dually eligible recipients when Medicare is the primary payer 
353.4 	for the item, and individually priced items identified in paragraph (i). Payments made to 
353.5 	managed care plans and county-based purchasing plans shall not be adjusted to reflect the 
353.6 	rate increases in this paragraph.

353.7 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2015.

353.8 	Sec. 20. Minnesota Statutes 2014, section 256L.01, subdivision 1a, is amended to read:
353.9 		Subd. 1a.Child. "Child" means an individual under 21 years of age, including the 
353.10 	unborn child of a pregnant woman, an emancipated minor, and an emancipated minor's 
353.11 	spouse.

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

353.13 	Sec. 21. Minnesota Statutes 2015 Supplement, section 256L.01, subdivision 5, is 
353.14 	amended to read:
353.15 		Subd. 5.Income.  "Income" has the meaning given for modified adjusted gross 
353.16 	income, as defined in Code of Federal Regulations, title 26, section 1.36B-1, and means 
353.17 	a household's projected annual income for the applicable tax year current income, or if 
353.18 	income fluctuates month to month, the income for the 12-month eligibility period.

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

353.20 	Sec. 22. Minnesota Statutes 2014, section 256L.04, subdivision 1a, is amended to read:
353.21 		Subd. 1a.Social Security number required. (a) Individuals and families applying 
353.22 	for MinnesotaCare coverage must provide a Social Security number if required by Code 
353.23 	of Federal Regulations, title 45, section 155.310(a)(3).
353.24 	(b) The commissioner shall not deny eligibility to an otherwise eligible applicant 
353.25 	who has applied for a Social Security number and is awaiting issuance of that Social 
353.26 	Security number.
353.27 	(c) Newborns enrolled under section 256L.05, subdivision 3, are exempt from the 
353.28 	requirements of this subdivision.
353.29 	(d) Individuals who refuse to provide a Social Security number because of 
353.30 	well-established religious objections are exempt from the requirements of this subdivision. 
353.31 	The term "well-established religious objections" has the meaning given in Code of Federal 
353.32 	Regulations, title 42, section 435.910.

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

354.2 	Sec. 23. Minnesota Statutes 2014, section 256L.04, subdivision 2, is amended to read:
354.3 		Subd. 2.Third-party liability, paternity, and other medical support. (a) To be 
354.4 	eligible for MinnesotaCare, Individuals and families must may cooperate with the state 
354.5 	agency to identify potentially liable third-party payers and assist the state in obtaining 
354.6 	third-party payments. "Cooperation" includes, but is not limited to, complying with 
354.7 	the notice requirements in section 256B.056, subdivision 9, identifying any third party 
354.8 	who may be liable for care and services provided under MinnesotaCare to the enrollee, 
354.9 	providing relevant information to assist the state in pursuing a potentially liable third 
354.10 	party, and completing forms necessary to recover third-party payments.
354.11 	(b) A parent, guardian, relative caretaker, or child enrolled in the MinnesotaCare 
354.12 	program must cooperate with the Department of Human Services and the local agency in 
354.13 	establishing the paternity of an enrolled child and in obtaining medical care support and 
354.14 	payments for the child and any other person for whom the person can legally assign rights, 
354.15 	in accordance with applicable laws and rules governing the medical assistance program. A 
354.16 	child shall not be ineligible for or disenrolled from the MinnesotaCare program solely 
354.17 	because the child's parent, relative caretaker, or guardian fails to cooperate in establishing 
354.18 	paternity or obtaining medical support.

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

354.20 	Sec. 24. Minnesota Statutes 2015 Supplement, section 256L.04, subdivision 7b, 
354.21 	is amended to read:
354.22 		Subd. 7b.Annual income limits adjustment. The commissioner shall adjust the 
354.23 	income limits under this section annually on January each July 1 as provided described in 
354.24 	Code of Federal Regulations, title 26, section 1.36B-1(h) section 256B.056, subdivision 1c.

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

354.26 	Sec. 25. Minnesota Statutes 2015 Supplement, section 256L.05, subdivision 3a, 
354.27 	is amended to read:
354.28 		Subd. 3a.Redetermination of eligibility. (a) An enrollee's eligibility must be 
354.29 	redetermined on an annual basis, in accordance with Code of Federal Regulations, title 
354.30 	42, section 435.916(a). The period of eligibility is the entire calendar year following the 
354.31 	year in which eligibility is redetermined. Beginning in calendar year 2015, eligibility 
354.32 	redeterminations shall occur during the open enrollment period for qualified health plans as 
355.1 	specified in Code of Federal Regulations, title 45, section 155.410. The 12-month eligibility 
355.2 	period begins the month of application. Beginning July 1, 2017, the commissioner shall 
355.3 	adjust the eligibility period for enrollees to implement renewals throughout the year 
355.4 	according to guidance from the Centers for Medicare and Medicaid Services.
355.5 	(b) Each new period of eligibility must take into account any changes in 
355.6 	circumstances that impact eligibility and premium amount. Coverage begins as provided 
355.7 	in section 256L.06.

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

355.9 	Sec. 26. Minnesota Statutes 2015 Supplement, section 256L.06, subdivision 3, is 
355.10 	amended to read:
355.11 		Subd. 3.Commissioner's duties and payment. (a) Premiums are dedicated to the 
355.12 	commissioner for MinnesotaCare.
355.13 	(b) The commissioner shall develop and implement procedures to: (1) require 
355.14 	enrollees to report changes in income; (2) adjust sliding scale premium payments, based 
355.15 	upon both increases and decreases in enrollee income, at the time the change in income 
355.16 	is reported; and (3) disenroll enrollees from MinnesotaCare for failure to pay required 
355.17 	premiums. Failure to pay includes payment with a dishonored check, a returned automatic 
355.18 	bank withdrawal, or a refused credit card or debit card payment. The commissioner may 
355.19 	demand a guaranteed form of payment, including a cashier's check or a money order, as 
355.20 	the only means to replace a dishonored, returned, or refused payment.
355.21 	(c) Premiums are calculated on a calendar month basis and may be paid on a 
355.22 	monthly, quarterly, or semiannual basis, with the first payment due upon notice from the 
355.23 	commissioner of the premium amount required. The commissioner shall inform applicants 
355.24 	and enrollees of these premium payment options. Premium payment is required before 
355.25 	enrollment is complete and to maintain eligibility in MinnesotaCare. Premium payments 
355.26 	received before noon are credited the same day. Premium payments received after noon 
355.27 	are credited on the next working day.
355.28 	(d) Nonpayment of the premium will result in disenrollment from the plan effective 
355.29 	for the calendar month following the month for which the premium was due. Persons 
355.30 	disenrolled for nonpayment may not reenroll prior to the first day of the month following 
355.31 	the payment of an amount equal to two months' premiums.
355.32 	(e) The commissioner shall forgive the past-due premium for persons disenrolled 
355.33 	under paragraph (d) prior to issuing a premium invoice for the fourth month following 
355.34 	disenrollment.

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

356.2 	Sec. 27. Minnesota Statutes 2014, section 256L.07, subdivision 1, is amended to read:
356.3 		Subdivision 1.General requirements. Individuals enrolled in MinnesotaCare 
356.4 	under section 256L.04, subdivision 1, and individuals enrolled in MinnesotaCare under 
356.5 	section 256L.04, subdivision 7, whose income increases above 200 percent of the federal 
356.6 	poverty guidelines, are no longer eligible for the program and shall be disenrolled 
356.7 	by the commissioner. For persons disenrolled under this subdivision, MinnesotaCare 
356.8 	coverage terminates the last day of the calendar month following the month in which 
356.9 	the commissioner determines that sends advance notice according to Code of Federal 
356.10 	Regulations, title 42, section 431.211, that indicates the income of a family or individual 
356.11 	exceeds program income limits.

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

356.13 	Sec. 28. Minnesota Statutes 2014, section 256L.11, subdivision 7, is amended to read:
356.14 		Subd. 7.Critical access dental providers. Effective for dental services provided to 
356.15 	MinnesotaCare enrollees on or after January 1, 2007, through August 31, 2011 July 1, 
356.16 	2016, the commissioner shall increase payment rates to dentists and dental clinics deemed 
356.17 	by the commissioner to be critical access providers under section 256B.76, subdivision 
356.18 	4, by 50 percent above the payment rate that would otherwise be paid to the provider. 
356.19 	Effective for dental services provided on or after September 1, 2011, the commissioner 
356.20 	shall increase the payment rate by 30 32.5 percent above the payment rate that would 
356.21 	otherwise be paid to the provider, except for a dental clinic or dental group described in 
356.22 	section 256B.76, subdivision 4, paragraph (b), in which the commissioner shall increase 
356.23 	the payment rate by 30 percent above the payment rate that would otherwise be paid to 
356.24 	the provider. The commissioner shall pay the prepaid health plans under contract with 
356.25 	the commissioner amounts sufficient to reflect this rate increase. The prepaid health plan 
356.26 	must pass this rate increase to providers who have been identified by the commissioner as 
356.27 	critical access dental providers under section 256B.76, subdivision 4.

356.28 	Sec. 29. Minnesota Statutes 2015 Supplement, section 256L.15, subdivision 1, is 
356.29 	amended to read:
356.30 		Subdivision 1.Premium determination for MinnesotaCare. (a) Families with 
356.31 	children and individuals shall pay a premium determined according to subdivision 2.
356.32 	(b) Members of the military and their families who meet the eligibility criteria 
356.33 	for MinnesotaCare upon eligibility approval made within 24 months following the end 
357.1 	of the member's tour of active duty shall have their premiums paid by the commissioner. 
357.2 	The effective date of coverage for an individual or family who meets the criteria of this 
357.3 	paragraph shall be the first day of the month following the month in which eligibility is 
357.4 	approved. This exemption applies for 12 months.
357.5 	(c) Beginning July 1, 2009, American Indians enrolled in MinnesotaCare and their 
357.6 	families shall have their premiums waived by the commissioner in accordance with section 
357.7 	5006 of the American Recovery and Reinvestment Act of 2009, Public Law 111-5. An 
357.8 	individual must document indicate status as an American Indian, as defined under Code of 
357.9 	Federal Regulations, title 42, section 447.50, to qualify for the waiver of premiums. The 
357.10 	commissioner shall accept attestation of an individual's status as an American Indian as 
357.11 	verification until the United States Department of Health and Human Services approves 
357.12 	an electronic data source for this purpose.
357.13 	(d) For premiums effective August 1, 2015, and after, the commissioner, after 
357.14 	consulting with the chairs and ranking minority members of the legislative committees 
357.15 	with jurisdiction over human services, shall increase premiums under subdivision 2 
357.16 	for recipients based on June 2015 program enrollment. Premium increases shall be 
357.17 	sufficient to increase projected revenue to the fund described in section 16A.724 by at 
357.18 	least $27,800,000 for the biennium ending June 30, 2017. The commissioner shall publish 
357.19 	the revised premium scale on the Department of Human Services Web site and in the State 
357.20 	Register no later than June 15, 2015. The revised premium scale applies to all premiums 
357.21 	on or after August 1, 2015, in place of the scale under subdivision 2.
357.22 	(e) By July 1, 2015, the commissioner shall provide the chairs and ranking minority 
357.23 	members of the legislative committees with jurisdiction over human services the revised 
357.24 	premium scale effective August 1, 2015, and statutory language to codify the revised 
357.25 	premium schedule.
357.26 	(f) Premium changes authorized under paragraph (d) must only apply to enrollees 
357.27 	not otherwise excluded from paying premiums under state or federal law. Premium 
357.28 	changes authorized under paragraph (d) must satisfy the requirements for premiums for 
357.29 	the Basic Health Program under title 42 of Code of Federal Regulations, section 600.505.

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

357.31 	Sec. 30. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; NOTICE.
 357.32 	For all individuals that received medical assistance non-long-term care services on 
357.33 	or after July 1, 2014, the commissioner of human services must provide notice of the 2016 
357.34 	amendments to Minnesota Statutes, section 256B.15, subdivisions 1a and 2. The notice 
357.35 	must be provided within 90 days from the date of enactment.

358.1 	Sec. 31.  REPEALER.
 358.2 	(a) Minnesota Statutes 2014, section 256B.059, subdivision 1a, is repealed.
358.3 	(b) Minnesota Statutes 2014, sections 256L.04, subdivisions 2a and 8; 256L.22; 
358.4 	256L.24; 256L.26; and 256L.28, are repealed.

358.5 	EFFECTIVE DATE. Paragraph (a) is effective June 1, 2016. Paragraph (b) is 
358.6 	effective the day following final enactment.

358.7 	ARTICLE 20
358.8 	HEALTH DEPARTMENT

358.9 	Section 1. Minnesota Statutes 2014, section 13.3805, is amended by adding a 
358.10 	subdivision to read:
358.11 		Subd. 5.Radon testing and mitigation data. Data maintained by the Department 
358.12 	of Health that identify the address of a radon testing or mitigation site, and the name, 
358.13 	address, e-mail address, and telephone number of residents and residential property owners 
358.14 	of a radon testing or mitigation site, are private data on individuals or nonpublic data.

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

358.16 	Sec. 2. Minnesota Statutes 2014, section 62D.04, subdivision 1, is amended to read:
358.17 		Subdivision 1.Application review. Upon receipt of an application for a certificate 
358.18 	of authority, the commissioner of health shall determine whether the applicant for a 
358.19 	certificate of authority has:
358.20 	(a) demonstrated the willingness and potential ability to assure that health care 
358.21 	services will be provided in such a manner as to enhance and assure both the availability 
358.22 	and accessibility of adequate personnel and facilities;
358.23 	(b) arrangements for an ongoing evaluation of the quality of health care, including a 
358.24 	peer review process;
358.25 	(c) a procedure to develop, compile, evaluate, and report statistics relating to the 
358.26 	cost of its operations, the pattern of utilization of its services, the quality, availability and 
358.27 	accessibility of its services, and such other matters as may be reasonably required by 
358.28 	regulation of the commissioner of health;
358.29 	(d) reasonable provisions for emergency and out of area health care services;
358.30 	(e) demonstrated that it is financially responsible and may reasonably be expected to 
358.31 	meet its obligations to enrollees and prospective enrollees. In making this determination, 
358.32 	the commissioner of health shall require the amount of initial net worth required in section 
359.1 	62D.042, compliance with the risk-based capital standards under sections 60A.50 to 
359.2 	60A.592, the deposit required in section 62D.041, and in addition shall consider:
359.3 	(1) the financial soundness of its arrangements for health care services and the 
359.4 	proposed schedule of charges used in connection therewith;
359.5 	(2) arrangements which will guarantee for a reasonable period of time the continued 
359.6 	availability or payment of the cost of health care services in the event of discontinuance of 
359.7 	the health maintenance organization; and
359.8 	(3) agreements with providers for the provision of health care services;
359.9 	(f) demonstrated that it will assume full financial risk on a prospective basis for 
359.10 	the provision of comprehensive health maintenance services, including hospital care; 
359.11 	provided, however, that the requirement in this paragraph shall not prohibit the following:
359.12 	(1) a health maintenance organization from obtaining insurance or making 
359.13 	other arrangements (i) for the cost of providing to any enrollee comprehensive health 
359.14 	maintenance services, the aggregate value of which exceeds $5,000 in any year, (ii) for 
359.15 	the cost of providing comprehensive health care services to its members on a nonelective 
359.16 	emergency basis, or while they are outside the area served by the organization, or (iii) for 
359.17 	not more than 95 percent of the amount by which the health maintenance organization's 
359.18 	costs for any of its fiscal years exceed 105 percent of its income for such fiscal years; and
359.19 	(2) a health maintenance organization from having a provision in a group health 
359.20 	maintenance contract allowing an adjustment of premiums paid based upon the actual 
359.21 	health services utilization of the enrollees covered under the contract, except that at no 
359.22 	time during the life of the contract shall the contract holder fully self-insure the financial 
359.23 	risk of health care services delivered under the contract. Risk sharing arrangements shall 
359.24 	be subject to the requirements of sections 62D.01 to 62D.30;
359.25 	(g) demonstrated that it has made provisions for and adopted a conflict of interest 
359.26 	policy applicable to all members of the board of directors and the principal officers of the 
359.27 	health maintenance organization. The conflict of interest policy shall include the procedures 
359.28 	described in section 317A.255, subdivisions 1 and 2. However, the commissioner is 
359.29 	not precluded from finding that a particular transaction is an unreasonable expense as 
359.30 	described in section 62D.19 even if the directors follow the required procedures; and
359.31 	(h) otherwise met the requirements of sections 62D.01 to 62D.30.

359.32 	Sec. 3. Minnesota Statutes 2014, section 62D.08, subdivision 3, is amended to read:
359.33 		Subd. 3.Report requirements. Such report shall be on forms prescribed by the 
359.34 	commissioner of health, and shall include:
360.1 	(a) a financial statement of the organization, including its balance sheet and receipts 
360.2 	and disbursements for the preceding year certified by an independent certified public 
360.3 	accountant, reflecting at least (1) all prepayment and other payments received for health 
360.4 	care services rendered, (2) expenditures to all providers, by classes or groups of providers, 
360.5 	and insurance companies or nonprofit health service plan corporations engaged to fulfill 
360.6 	obligations arising out of the health maintenance contract, (3) expenditures for capital 
360.7 	improvements, or additions thereto, including but not limited to construction, renovation 
360.8 	or purchase of facilities and capital equipment, and (4) a supplementary statement of 
360.9 	assets, liabilities, premium revenue, and expenditures for risk sharing business under 
360.10 	section 62D.04, subdivision 1, on forms prescribed by the commissioner;
360.11 	(b) the number of new enrollees enrolled during the year, the number of group 
360.12 	enrollees and the number of individual enrollees as of the end of the year and the number 
360.13 	of enrollees terminated during the year;
360.14 	(c) a summary of information compiled pursuant to section 62D.04, subdivision 1, 
360.15 	clause (c), in such form as may be required by the commissioner of health;
360.16 	(d) a report of the names and addresses of all persons set forth in section 62D.03, 
360.17 	subdivision 4, clause (c), who were associated with the health maintenance organization 
360.18 	or the major participating entity during the preceding year, and the amount of wages, 
360.19 	expense reimbursements, or other payments to such individuals for services to the health 
360.20 	maintenance organization or the major participating entity, as those services relate to the 
360.21 	health maintenance organization, including a full disclosure of all financial arrangements 
360.22 	during the preceding year required to be disclosed pursuant to section 62D.03, subdivision 
360.23 	4, clause (d);
360.24 	(e) a separate report addressing health maintenance contracts sold to individuals 
360.25 	covered by Medicare, title XVIII of the Social Security Act, as amended, including the 
360.26 	information required under section 62D.30, subdivision 6; and
360.27 	(f) data on the number of complaints received and the category of each complaint 
360.28 	as defined by the commissioner. The categories must include access, communication 
360.29 	and behavior, health plan administration, facilities and environment, coordination of 
360.30 	care, and technical competence and appropriateness. The commissioner, in consultation 
360.31 	with interested stakeholders, shall define complaint categories to be used by each health 
360.32 	maintenance organization by July 1, 2017, and the categories must be used by each health 
360.33 	maintenance organization beginning calendar year 2018; and
360.34 	(f) (g) such other information relating to the performance of the health maintenance 
360.35 	organization as is reasonably necessary to enable the commissioner of health to carry out 
360.36 	the duties under sections 62D.01 to 62D.30.

361.1 	Sec. 4. [62D.115] QUALITY OF CARE COMPLAINTS.
361.2 		Subdivision 1.Quality of care complaint. For purposes of this section, "quality 
361.3 	of care complaint" means an expressed dissatisfaction regarding health care services 
361.4 	resulting in potential or actual harm to an enrollee. Quality of care complaints may 
361.5 	include the following, to the extent that they affect the clinical quality of health care 
361.6 	services rendered: access; provider and staff competence; clinical appropriateness of care; 
361.7 	communications; behavior; facility and environmental considerations; and other factors 
361.8 	that could impact the quality of health care services.
361.9 		Subd. 2.Quality of care complaint investigation. (a) Each health maintenance 
361.10 	organization shall develop and implement a quality of care complaint investigation process 
361.11 	that meets the requirements of this section. The process must include a written policy and 
361.12 	procedures for the receipt, investigation, and follow-up of quality of care complaints, that 
361.13 	includes the requirements in paragraphs (b) to (h).
361.14 	(b) A health maintenance organization's definition for quality of care complaints 
361.15 	must include the concerns identified in subdivision 1.
361.16 	(c) A health maintenance organization must include a description of each quality of 
361.17 	care complaint level of severity, including:
361.18 	(1) classification of complaints that warrant peer protection confidentiality as defined 
361.19 	by the commissioner in paragraph (h); and 
361.20 	(2) investigation procedures for each level of severity.
361.21 	(d) Any complaint with an allegation regarding quality of care or service must be 
361.22 	investigated by the health maintenance organization. Documentation must show that 
361.23 	each allegation has been addressed.
361.24 	(e) Conclusions of each investigation must be supported with evidence that may 
361.25 	include an associated corrective action plan implemented and documented and a formal 
361.26 	response from a provider to the health maintenance organization if a formal response 
361.27 	was submitted to the health maintenance organization. The record of investigation must 
361.28 	include all related documents, correspondence, summaries, discussions, consultation, 
361.29 	and conferences held.
361.30 	(f) A medical director review shall be conducted as part of the investigation process 
361.31 	when there is potential for patient harm.
361.32 	(g) Each quality of care complaint received by a health maintenance organization 
361.33 	must be tracked and trended for review by the health maintenance organization according 
361.34 	to provider type and the following type of quality of care issue: behavior, facility, 
361.35 	environmental, or technical competence.
362.1 	(h) The commissioner, in consultation with interested stakeholders, shall define 
362.2 	complaints that are subject to peer protection confidentiality in accordance with state and 
362.3 	federal law by January 1, 2018.
362.4 		Subd. 3.Complaint reporting. Each health maintenance organization shall submit 
362.5 	to the commissioner, as part of the company's annual filing, data on the number of 
362.6 	complaints and the category as defined by the commissioner as required under section 
362.7 	62D.08, subdivision 3, paragraph (f).
362.8 		Subd. 4.Records. Each health maintenance organization shall maintain records of 
362.9 	all quality of care complaints and their resolution and retain those records for five years. 
362.10 	Notwithstanding section 145.64, information provided to the commissioner according to 
362.11 	this subdivision is classified as confidential data on individuals or protected nonpublic 
362.12 	data as defined in section 13.02, subdivision 3 or 13.
362.13 		Subd. 5.Exception. This section does not apply to quality of care complaints 
362.14 	received by a health maintenance organization from an enrollee who is covered under a 
362.15 	public health care program administered by the commissioner of human services under 
362.16 	chapter 256B or 256L.

362.17 	Sec. 5. Minnesota Statutes 2014, section 62J.495, subdivision 4, is amended to read:
362.18 		Subd. 4.Coordination with national HIT activities. (a) The commissioner, 
362.19 	in consultation with the e-Health Advisory Committee, shall update the statewide 
362.20 	implementation plan required under subdivision 2 and released June 2008, to be consistent 
362.21 	with the updated Federal HIT Strategic Plan released by the Office of the National 
362.22 	Coordinator in accordance with section 3001 of the HITECH Act. The statewide plan 
362.23 	shall meet the requirements for a plan required under section 3013 of the HITECH Act.
362.24 	(b) The commissioner, in consultation with the e-Health Advisory Committee, 
362.25 	shall work to ensure coordination between state, regional, and national efforts to support 
362.26 	and accelerate efforts to effectively use health information technology to improve the 
362.27 	quality and coordination of health care and the continuity of patient care among health 
362.28 	care providers, to reduce medical errors, to improve population health, to reduce health 
362.29 	disparities, and to reduce chronic disease. The commissioner's coordination efforts shall 
362.30 	include but not be limited to:
362.31 	(1) assisting in the development and support of health information technology 
362.32 	regional extension centers established under section 3012(c) of the HITECH Act to 
362.33 	provide technical assistance and disseminate best practices; and
363.1 	(2) providing supplemental information to the best practices gathered by regional 
363.2 	centers to ensure that the information is relayed in a meaningful way to the Minnesota 
363.3 	health care community.;
363.4 	(3) providing financial and technical support to Minnesota health care providers to 
363.5 	encourage implementation of admission, discharge and transfer alerts, and care summary 
363.6 	document exchange transactions and to evaluate the impact of health information 
363.7 	technology on cost and quality of care. Communications about available financial and 
363.8 	technical support shall include clear information about the interoperable health record 
363.9 	requirements in subdivision 1, including a separate statement in bold-face type clarifying 
363.10 	the exceptions to those requirements;
363.11 	(4) providing educational resources and technical assistance to health care providers 
363.12 	and patients related to state and national privacy, security, and consent laws governing 
363.13 	clinical health information, including the requirements in sections 144.291 to 144.298. In 
363.14 	carrying out these activities, the commissioner's technical assistance does not constitute 
363.15 	legal advice; 
363.16 	(5) assessing Minnesota's legal, financial, and regulatory framework for health 
363.17 	information exchange, including the requirements in sections 144.291 to 144.298, and 
363.18 	making recommendations for modifications that would strengthen the ability of Minnesota 
363.19 	health care providers to securely exchange data in compliance with patient preferences 
363.20 	and in a way that is efficient and financially sustainable; and
363.21 	(6) seeking public input on both patient impact and costs associated with 
363.22 	requirements related to patient consent for release of health records for the purposes of 
363.23 	treatment, payment, and health care operations, as required in section 144.293, subdivision 
363.24 	2. The commissioner shall provide a report to the legislature on the findings of this public 
363.25 	input process no later than February 1, 2017.
363.26 	(c) The commissioner, in consultation with the e-Health Advisory Committee, shall 
363.27 	monitor national activity related to health information technology and shall coordinate 
363.28 	statewide input on policy development. The commissioner shall coordinate statewide 
363.29 	responses to proposed federal health information technology regulations in order to ensure 
363.30 	that the needs of the Minnesota health care community are adequately and efficiently 
363.31 	addressed in the proposed regulations. The commissioner's responses may include, but 
363.32 	are not limited to:
363.33 	(1) reviewing and evaluating any standard, implementation specification, or 
363.34 	certification criteria proposed by the national HIT standards committee;
363.35 	(2) reviewing and evaluating policy proposed by the national HIT policy committee 
363.36 	relating to the implementation of a nationwide health information technology infrastructure;
364.1 	(3) monitoring and responding to activity related to the development of quality 
364.2 	measures and other measures as required by section 4101 of the HITECH Act. Any 
364.3 	response related to quality measures shall consider and address the quality efforts required 
364.4 	under chapter 62U; and
364.5 	(4) monitoring and responding to national activity related to privacy, security, and 
364.6 	data stewardship of electronic health information and individually identifiable health 
364.7 	information.
364.8 	(d) To the extent that the state is either required or allowed to apply, or designate an 
364.9 	entity to apply for or carry out activities and programs under section 3013 of the HITECH 
364.10 	Act, the commissioner of health, in consultation with the e-Health Advisory Committee 
364.11 	and the commissioner of human services, shall be the lead applicant or sole designating 
364.12 	authority. The commissioner shall make such designations consistent with the goals and 
364.13 	objectives of sections 62J.495 to 62J.497 and 62J.50 to 62J.61.
364.14 	(e) The commissioner of human services shall apply for funding necessary to 
364.15 	administer the incentive payments to providers authorized under title IV of the American 
364.16 	Recovery and Reinvestment Act.
364.17 	(f) The commissioner shall include in the report to the legislature information on the 
364.18 	activities of this subdivision and provide recommendations on any relevant policy changes 
364.19 	that should be considered in Minnesota.

364.20 	Sec. 6. Minnesota Statutes 2014, section 62J.496, subdivision 1, is amended to read:
364.21 		Subdivision 1.Account establishment. (a) An account is established to:
364.22 	(1) finance the purchase of certified electronic health records or qualified electronic 
364.23 	health records as defined in section 62J.495, subdivision 1a;
364.24 	(2) enhance the utilization of electronic health record technology, which may include 
364.25 	costs associated with upgrading the technology to meet the criteria necessary to be a 
364.26 	certified electronic health record or a qualified electronic health record;
364.27 	(3) train personnel in the use of electronic health record technology; and
364.28 	(4) improve the secure electronic exchange of health information.
364.29 	(b) Amounts deposited in the account, including any grant funds obtained through 
364.30 	federal or other sources, loan repayments, and interest earned on the amounts shall 
364.31 	be used only for awarding loans or loan guarantees, as a source of reserve and security 
364.32 	for leveraged loans, for activities authorized in section 62J.495, subdivision 4, or for 
364.33 	the administration of the account.
364.34 	(c) The commissioner may accept contributions to the account from private sector 
364.35 	entities subject to the following provisions:
365.1 	(1) the contributing entity may not specify the recipient or recipients of any loan 
365.2 	issued under this subdivision;
365.3 	(2) the commissioner shall make public the identity of any private contributor to the 
365.4 	loan fund, as well as the amount of the contribution provided;
365.5 	(3) the commissioner may issue letters of commendation or make other awards that 
365.6 	have no financial value to any such entity; and
365.7 	(4) a contributing entity may not specify that the recipient or recipients of any loan 
365.8 	use specific products or services, nor may the contributing entity imply that a contribution 
365.9 	is an endorsement of any specific product or service.
365.10 	(d) The commissioner may use the loan funds to reimburse private sector entities 
365.11 	for any contribution made to the loan fund. Reimbursement to private entities may not 
365.12 	exceed the principle amount contributed to the loan fund.
365.13 	(e) The commissioner may use funds deposited in the account to guarantee, or 
365.14 	purchase insurance for, a local obligation if the guarantee or purchase would improve 
365.15 	credit market access or reduce the interest rate applicable to the obligation involved.
365.16 	(f) The commissioner may use funds deposited in the account as a source of revenue 
365.17 	or security for the payment of principal and interest on revenue or general obligation 
365.18 	bonds issued by the state if the proceeds of the sale of the bonds will be deposited into 
365.19 	the loan fund.
365.20 	(g) The commissioner shall not award new loans or loan guarantees after July 1, 2016.

365.21 	Sec. 7. Minnesota Statutes 2014, section 144.05, is amended by adding a subdivision 
365.22 	to read:
365.23 		Subd. 6.Reports on interagency agreements and intra-agency transfers. The 
365.24 	commissioner of health shall provide quarterly reports to the chairs and ranking minority 
365.25 	members of the legislative committees with jurisdiction over health and human services 
365.26 	policy and finance on:
365.27 	(1) interagency agreements or service-level agreements and any renewals or 
365.28 	extensions of existing interagency or service level agreements with a state department 
365.29 	under section 15.01, state agency under section 15.012, or the Office of MN.IT Services, 
365.30 	with a value of more than $100,000, or related agreements with the same department or 
365.31 	agency with a cumulative value of more than $100,000; and
365.32 	(2) transfers of appropriations of more than $100,000 between accounts within or 
365.33 	between agencies.
366.1 	The report must include the statutory citation authorizing the agreement, transfer or dollar 
366.2 	amount, purpose, and effective date of the agreement, duration of the agreement, and 
366.3 	a copy of the agreement.

366.4 	Sec. 8. [144.1912] GREATER MINNESOTA FAMILY MEDICINE RESIDENCY 
366.5 	GRANT PROGRAM.
366.6 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
366.7 	have the meanings given.
366.8 	(b) "Commissioner" means the commissioner of health.
366.9 	(c) "Eligible family medicine residency program" means a program that meets the 
366.10 	following criteria:
366.11 	(1) is located in Minnesota outside the seven-county metropolitan area, as defined in 
366.12 	section 473.121, subdivision 4;
366.13 	(2) is accredited as a family medicine residency program or is a candidate for 
366.14 	accreditation;
366.15 	(3) is focused on the education and training of family medicine physicians to serve 
366.16 	communities outside the metropolitan area; and
366.17 	(4) demonstrates that over the most recent three years, at least 25 percent of its 
366.18 	graduates practice in Minnesota communities outside the metropolitan area.
366.19 		Subd. 2.Program administration. (a) The commissioner shall award family 
366.20 	medicine residency grants to existing, eligible, not-for-profit  family medicine residency 
366.21 	programs to support current and new residency positions. Funds shall be allocated first to 
366.22 	proposed new family medicine residency positions, and remaining funds shall be allocated 
366.23 	proportionally based on the number of existing residents in eligible programs. The 
366.24 	commissioner may fund a new residency position for up to three years.
366.25 	(b) Grant funds awarded may only be spent to cover the costs of:
366.26 	(1) establishing, maintaining, or expanding training for family medicine residents;
366.27 	(2) recruitment, training, and retention of residents and faculty;
366.28 	(3) travel and lodging for residents; and
366.29 	(4) faculty, resident, and preceptor salaries.
366.30 	(c) Grant funds shall not be used to supplant any other government or private funds 
366.31 	available for these purposes.
366.32 		Subd. 3.Applications. Eligible family medicine residency programs seeking a 
366.33 	grant must apply to the commissioner. The application must include objectives, a related 
366.34 	work plan and budget, a description of the number of new and existing residency positions 
366.35 	that will be supported using grant funds, and additional information the commissioner 
367.1 	determines to be necessary. The commissioner shall determine whether applications are 
367.2 	complete and responsive and may require revisions or additional information before 
367.3 	awarding a grant.
367.4 		Subd. 4.Program oversight. The commissioner shall require and collect from 
367.5 	family medicine residency programs receiving grants, information necessary to administer 
367.6 	and evaluate the program. The evaluation shall include the scope of expansion of new 
367.7 	residency positions and information describing specific programs to enhance current 
367.8 	residency positions, which may include facility improvements. The commissioner shall 
367.9 	continue to collect data on greater Minnesota family medicine residency shortages.

367.10 	Sec. 9. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 3, is 
367.11 	amended to read:
367.12 		Subd. 3.Rulemaking. The commissioner of health shall adopt rules for establishing
367.13 	licensure requirements and enforcement of applicable laws and rules work standards
367.14 	relating to indoor radon in dwellings and other buildings, with the exception of newly 
367.15 	constructed Minnesota homes according to section 326B.106, subdivision 6. The 
367.16 	commissioner shall coordinate, oversee, and implement all state functions in matters 
367.17 	concerning the presence, effects, measurement, and mitigation of risks of radon in 
367.18 	dwellings and other buildings.

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

367.20 	Sec. 10. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 4, 
367.21 	is amended to read:
367.22 		Subd. 4.System tag. All radon mitigation systems installed in Minnesota on or 
367.23 	after October 1, 2017 January 1, 2018, must have a radon mitigation system tag provided 
367.24 	by the commissioner. A radon mitigation professional must attach the tag to the radon 
367.25 	mitigation system in a visible location.

367.26 	Sec. 11. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 5, 
367.27 	is amended to read:
367.28 		Subd. 5.License required annually. Effective January 1, 2018, a license is required 
367.29 	annually for every person, firm, or corporation that sells a device or performs a service 
367.30 	for compensation to detect the presence of radon in the indoor atmosphere, performs 
367.31 	laboratory analysis, or performs a service to mitigate radon in the indoor atmosphere. This 
367.32 	section does not apply to retail stores that only sell or distribute radon sampling but are not 
367.33 	engaged in the manufacture of radon sampling devices.

368.1 	Sec. 12. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 6, 
368.2 	is amended to read:
368.3 		Subd. 6.Exemptions. Radon systems installed in newly constructed Minnesota 
368.4 	homes according to section 326B.106, subdivision 6, prior to the issuance of a certificate 
368.5 	of occupancy are not required to follow the requirements of this section. This section 
368.6 	does not apply to:
368.7 	(1) employees of a firm or corporation that installs radon control systems in newly 
368.8 	constructed Minnesota homes as specified in subdivision 11;
368.9 	(2) a person authorized as a building official under Minnesota Rules, part 1300.0070, 
368.10 	or that person's designee; or
368.11 	(3) any person, firm, corporation, or entity that distributes radon testing devices or 
368.12 	information for general educational purposes.

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

368.14 	Sec. 13. Minnesota Statutes 2015 Supplement, section 144.4961, subdivision 8, 
368.15 	is amended to read:
368.16 		Subd. 8.Licensing fees. (a) All radon license applications submitted to the 
368.17 	commissioner of health must be accompanied by the required fees. If the commissioner 
368.18 	determines that insufficient fees were paid, the necessary additional fees must be paid 
368.19 	before the commissioner approves the application. The commissioner shall charge the 
368.20 	following fees for each radon license:
368.21 	(1) Each measurement professional license, $300 $150 per year. "Measurement 
368.22 	professional" means any person who performs a test to determine the presence and 
368.23 	concentration of radon in a building they do the person does not own or lease; provides 
368.24 	professional or expert advice on radon testing, radon exposure, or health risks related to 
368.25 	radon exposure; or makes representations of doing any of these activities.
368.26 	(2) Each mitigation professional license, $500 $250 per year. "Mitigation 
368.27 	professional" means an individual who performs installs or designs a radon mitigation 
368.28 	system in a building they do the individual does not own or lease; provides professional or 
368.29 	expert advice on radon mitigation or radon entry routes; or provides on-site supervision 
368.30 	of radon mitigation and mitigation technicians; or makes representations of doing any of 
368.31 	these activities. "On-site supervision" means a review at the property of mitigation work 
368.32 	upon completion of the work and attachment of a system tag. Employees or subcontractors 
368.33 	who are supervised by a licensed mitigation professional are not required to be licensed 
368.34 	under this clause. This license also permits the licensee to perform the activities of a 
368.35 	measurement professional described in clause (1).
369.1 	(3) Each mitigation company license, $500 $100 per year. "Mitigation company" 
369.2 	means any business or government entity that performs or authorizes employees to 
369.3 	perform radon mitigation. This fee is waived if the mitigation company is a sole 
369.4 	proprietorship employs only one licensed mitigation professional.
369.5 	(4) Each radon analysis laboratory license, $500 per year. "Radon analysis 
369.6 	laboratory" means a business entity or government entity that analyzes passive radon 
369.7 	detection devices to determine the presence and concentration of radon in the devices. 
369.8 	This fee is waived if the laboratory is a government entity and is only distributing test kits 
369.9 	for the general public to use in Minnesota.
369.10 	(5) Each Minnesota Department of Health radon mitigation system tag, $75 per tag. 
369.11 	"Minnesota Department of Health radon mitigation system tag" or "system tag" means a 
369.12 	unique identifiable radon system label provided by the commissioner of health.
369.13 	(b) Fees collected under this section shall be deposited in the state treasury and 
369.14 	credited to the state government special revenue fund.

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

369.16 	Sec. 14. Minnesota Statutes 2015 Supplement, section 144.4961, is amended by adding 
369.17 	a subdivision to read:
369.18 		Subd. 10.Local inspections or permits. This section does not preclude local units 
369.19 	of government from requiring additional permits or inspections for radon control systems, 
369.20 	and does not supersede any local inspection or permit requirements.

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

369.22 	Sec. 15. Minnesota Statutes 2015 Supplement, section 144.4961, is amended by adding 
369.23 	a subdivision to read:
369.24 		Subd. 11.Application; newly constructed homes. This section does not apply to 
369.25 	newly constructed Minnesota homes according to section 326B.106, subdivision 6, prior 
369.26 	to the issuance of a certificate of occupancy.

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

369.28 	Sec. 16. Minnesota Statutes 2014, section 144A.75, subdivision 5, is amended to read:
369.29 		Subd. 5.Hospice provider. "Hospice provider" means an individual, organization, 
369.30 	association, corporation, unit of government, or other entity that is regularly engaged 
369.31 	in the delivery, directly or by contractual arrangement, of hospice services for a fee to 
369.32 	terminally ill hospice patients. A hospice must provide all core services.

370.1 	Sec. 17. Minnesota Statutes 2014, section 144A.75, subdivision 6, is amended to read:
370.2 		Subd. 6.Hospice patient. "Hospice patient" means an individual who has been 
370.3 	diagnosed as terminally ill, with a probable life expectancy of under one year, aswhose 
370.4 	illness has been documented by the individual's attending physician and hospice medical 
370.5 	director, who alone or, when unable, through the individual's family has voluntarily 
370.6 	consented to and received admission to a hospice provider, and who:
370.7 	(1) has been diagnosed as terminally ill, with a probable life expectancy of under 
370.8 	one year; or
370.9 	(2) is 21 years of age or younger; has been diagnosed with a chronic, complex, and 
370.10 	life-threatening illness contributing to a shortened life expectancy; and is not expected 
370.11 	to survive to adulthood.

370.12 	Sec. 18. Minnesota Statutes 2014, section 144A.75, subdivision 8, is amended to read:
370.13 		Subd. 8.Hospice services; hospice care. "Hospice services" or "hospice care" 
370.14 	means palliative and supportive care and other services provided by an interdisciplinary 
370.15 	team under the direction of an identifiable hospice administration to terminally ill hospice 
370.16 	patients and their families to meet the physical, nutritional, emotional, social, spiritual, 
370.17 	and special needs experienced during the final stages of illness, dying, and bereavement, 
370.18 	or during a chronic, complex, and life-threatening illness contributing to a shortened life 
370.19 	expectancy for hospice patients who meet the criteria in subdivision 6, clause (2). These 
370.20 	services are provided through a centrally coordinated program that ensures continuity and 
370.21 	consistency of home and inpatient care that is provided directly or through an agreement.

370.22 	Sec. 19. Minnesota Statutes 2015 Supplement, section 144A.75, subdivision 13, 
370.23 	is amended to read:
370.24 		Subd. 13.Residential hospice facility. (a) "Residential hospice facility" means a 
370.25 	facility that resembles a single-family home modified to address life safety, accessibility, 
370.26 	and care needs, located in a residential area that directly provides 24-hour residential 
370.27 	and support services in a home-like setting for hospice patients as an integral part of the 
370.28 	continuum of home care provided by a hospice and that houses:
370.29 	(1) no more than eight hospice patients; or
370.30 	(2) at least nine and no more than 12 hospice patients with the approval of the local 
370.31 	governing authority, notwithstanding section 462.357, subdivision 8.
370.32 	(b) Residential hospice facility also means a facility that directly provides 24-hour 
370.33 	residential and support services for hospice patients and that:
370.34 	(1) houses no more than 21 hospice patients;
371.1 	(2) meets hospice certification regulations adopted pursuant to title XVIII of the 
371.2 	federal Social Security Act, United States Code, title 42, section 1395, et seq.; and
371.3 	(3) is located on St. Anthony Avenue in St. Paul, Minnesota, and was licensed as a 
371.4 	40-bed non-Medicare certified nursing home as of January 1, 2015.

371.5 	Sec. 20. Minnesota Statutes 2014, section 144A.75, is amended by adding a 
371.6 	subdivision to read:
371.7 		Subd. 13a.Respite care. "Respite care" means short-term care in an inpatient 
371.8 	facility, such as a residential hospice facility, when necessary to relieve the hospice 
371.9 	patient's family or other persons caring for the patient. Respite care may be provided on 
371.10 	an occasional basis.

371.11 	Sec. 21. [145.908] GRANT PROGRAM; SCREENING AND TREATMENT FOR 
371.12 	PRE- AND POSTPARTUM MOOD AND ANXIETY DISORDERS.
371.13 		Subdivision 1.Grant program established. Within the limits of federal funds 
371.14 	available specifically for this purpose, the commissioner of health shall establish a grant 
371.15 	program to provide culturally competent programs to screen and treat pregnant women 
371.16 	and women who have given birth in the preceding 12 months for pre- and postpartum 
371.17 	mood and anxiety disorders. Organizations may use grant funds to establish new screening 
371.18 	or treatment programs, or expand or maintain existing screening or treatment programs. In 
371.19 	establishing the grant program, the commissioner shall prioritize expanding or enhancing 
371.20 	screening for pre- and postpartum mood and anxiety disorders in primary care settings. 
371.21 	The commissioner shall determine the types of organizations eligible for grants.
371.22 		Subd. 2.Allowable uses of funds. Grant funds awarded by the commissioner 
371.23 	under this section:
371.24 	(1) must be used to provide health care providers with appropriate training 
371.25 	and relevant resources on screening, treatment, follow-up support, and links to 
371.26 	community-based resources for pre- and postpartum mood and anxiety disorders; and
371.27 	(2) may be used to:
371.28 	(i) enable health care providers to provide or receive psychiatric consultations to 
371.29 	treat eligible women for pre- and postpartum mood and anxiety disorders;
371.30 	(ii) conduct a public awareness campaign;
371.31 	(iii) fund start-up costs for telephone lines, Web sites, and other resources to collect 
371.32 	and disseminate information about screening and treatment for pre- and postpartum mood 
371.33 	and anxiety disorders; or
371.34 	(iv) establish connections between community-based resources.
372.1 		Subd. 3.Federal funds. The commissioner shall apply for any available grant funds 
372.2 	from the federal Department of Health and Human Services for this program.

372.3 	Sec. 22. Minnesota Statutes 2014, section 149A.50, subdivision 2, is amended to read:
372.4 		Subd. 2.Requirements for funeral establishment. A funeral establishment 
372.5 	licensed under this section must:
372.6 	(1) contain a comply with preparation and embalming room requirements as 
372.7 	described in section 149A.92;
372.8 	(2) contain office space for making arrangements; and
372.9 	(3) comply with applicable local and state building codes, zoning laws, and 
372.10 	ordinances.

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

372.12 	Sec. 23. Minnesota Statutes 2015 Supplement, section 149A.92, subdivision 1, is 
372.13 	amended to read:
372.14 		Subdivision 1.Establishment update. (a) Notwithstanding subdivision 11, a 
372.15 	funeral establishment with other establishment locations that uses one preparation and 
372.16 	embalming room for all establishment locations has until July 1, 2017, to bring the other 
372.17 	establishment locations that are not used for preparation or embalming into compliance 
372.18 	with this section so long as the preparation and embalming room that is used complies 
372.19 	with the minimum standards in this section.
372.20 	(b) At the time that ownership of a funeral establishment changes, the physical 
372.21 	location of the establishment changes, or the building housing the funeral establishment or 
372.22 	business space of the establishment is remodeled the existing preparation and embalming 
372.23 	room must be brought into compliance with the minimum standards in this section and in 
372.24 	accordance with subdivision 11.
372.25 	(a) Any room used by a funeral establishment for preparation and embalming must 
372.26 	comply with the minimum standards of this section. A funeral establishment where no 
372.27 	preparation and embalming is performed, but which conducts viewings, visitations, and 
372.28 	services, or which holds human remains while awaiting final disposition, need not comply 
372.29 	with the minimum standards of this section.
372.30 	(b) Each funeral establishment must have a preparation and embalming room that 
372.31 	complies with the minimum standards of this section, except that a funeral establishment 
372.32 	that operates branch locations need only have one compliant preparation and embalming 
372.33 	room for all locations.

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

373.2 	Sec. 24. Minnesota Statutes 2014, section 327.14, subdivision 8, is amended to read:
373.3 		Subd. 8.Recreational camping area. "Recreational camping area" means any area, 
373.4 	whether privately or publicly owned, used on a daily, nightly, weekly, or longer basis for 
373.5 	the accommodation of five or more tents or recreational camping vehicles free of charge 
373.6 	or for compensation. "Recreational camping area" excludes:
373.7 	(1) children's camps;
373.8 	(2) industrial camps;
373.9 	(3) migrant labor camps, as defined in Minnesota Statutes and state commissioner 
373.10 	of health rules;
373.11 	(4) United States Forest Service camps;
373.12 	(5) state forest service camps;
373.13 	(6) state wildlife management areas or state-owned public access areas which are 
373.14 	restricted in use to picnicking and boat landing; and
373.15 	(7) temporary holding areas for self-contained recreational camping vehicles 
373.16 	created by and adjacent to motor sports facilities, if the chief law enforcement officer of 
373.17 	an affected jurisdiction determines that it is in the interest of public safety to provide a 
373.18 	temporary holding area; and
373.19 	(8) a privately owned area used for camping no more than once a year and for no 
373.20 	longer than seven consecutive days by members of a private club where the members pay 
373.21 	annual dues to belong to the club.

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

373.23 	Sec. 25. Laws 2015, chapter 71, article 8, section 24, the effective date, is amended to 
373.24 	read:

373.25 	EFFECTIVE DATE. This section is effective July 1, 2015, except subdivisions 4 
373.26 	and 5, which are effective October 1, 2017 July 1, 2016.

373.27 	Sec. 26.  REPEALER.
 373.28 	Minnesota Statutes 2014, section 149A.92, subdivision 11, is repealed the day 
373.29 	following final enactment.

374.1 	ARTICLE 21
374.2 	HEALTH-RELATED OCCUPATIONAL LICENSING
374.3 	GENETIC COUNSELORS

374.4 	Section 1. [147F.01] DEFINITIONS.
374.5 		Subdivision 1.Applicability. For purposes of this chapter, the terms defined in 
374.6 	this section have the meanings given them.
374.7 		Subd. 2.ABGC. "ABGC" means the American Board of Genetic Counseling, a 
374.8 	national agency for certification and recertification of genetic counselors, or its successor 
374.9 	organization or equivalent.
374.10 		Subd. 3.ABMG. "ABMG" means the American Board of Medical Genetics, 
374.11 	a national agency for certification and recertification of genetic counselors, medical 
374.12 	geneticists, and Ph.D. geneticists, or its successor organization.
374.13 		Subd. 4.ACGC. "ACGC" means the Accreditation Council for Genetic Counseling, 
374.14 	a specialized program accreditation board for educational training programs granting 
374.15 	master's degrees or higher in genetic counseling, or its successor organization.
374.16 		Subd. 5.Board. "Board" means the Board of Medical Practice.
374.17 		Subd. 6.Eligible status. "Eligible status" means an applicant who has met the 
374.18 	requirements and received approval from the ABGC to sit for the certification examination.
374.19 		Subd. 7.Genetic counseling. "Genetic counseling" means the provision of services 
374.20 	described in section 147F.03 to help clients and their families understand the medical, 
374.21 	psychological, and familial implications of genetic contributions to a disease or medical 
374.22 	condition.
374.23 		Subd. 8.Genetic counselor. "Genetic counselor" means an individual licensed 
374.24 	under this chapter to engage in the practice of genetic counseling.
374.25 		Subd. 9.Licensed physician. "Licensed physician" means an individual who is 
374.26 	licensed to practice medicine under chapter 147.
374.27 		Subd. 10.NSGC. "NSGC" means the National Society of Genetic Counselors, a 
374.28 	professional membership association for genetic counselors that approves continuing 
374.29 	education programs.
374.30 		Subd. 11.Qualified supervisor. "Qualified supervisor" means any person who is 
374.31 	licensed under this chapter as a genetic counselor or a physician licensed under chapter 
374.32 	147 to practice medicine in Minnesota.
374.33 		Subd. 12.Supervisee. "Supervisee" means a genetic counselor with a provisional 
374.34 	license.
375.1 		Subd. 13.Supervision. "Supervision" means an assessment of the work of the 
375.2 	supervisee, including regular meetings and file review, by a qualified supervisor according 
375.3 	to the supervision contract. Supervision does not require the qualified supervisor to be 
375.4 	present while the supervisee provides services.

375.5 	Sec. 2. [147F.03] SCOPE OF PRACTICE.
375.6 	The practice of genetic counseling by a licensed genetic counselor includes the 
375.7 	following services:
375.8 	(1) obtaining and interpreting individual and family medical and developmental 
375.9 	histories;
375.10 	(2) determining the mode of inheritance and the risk of transmitting genetic 
375.11 	conditions and birth defects;
375.12 	(3) discussing the inheritance, features, natural history, means of diagnosis, and 
375.13 	management of conditions with clients;
375.14 	(4) identifying, coordinating, ordering, and explaining the clinical implications of 
375.15 	genetic laboratory tests and other laboratory studies;
375.16 	(5) assessing psychosocial factors, including social, educational, and cultural issues;
375.17 	(6) providing client-centered counseling and anticipatory guidance to the client or 
375.18 	family based on their responses to the condition, risk of occurrence, or risk of recurrence;
375.19 	(7) facilitating informed decision-making about testing and management;
375.20 	(8) identifying and using community resources that provide medical, educational, 
375.21 	financial, and psychosocial support and advocacy; and
375.22 	(9) providing accurate written medical, genetic, and counseling information for 
375.23 	families and health care professionals.

375.24 	Sec. 3. [147F.05] UNLICENSED PRACTICE PROHIBITED; PROTECTED 
375.25 	TITLES AND RESTRICTIONS ON USE.
375.26 		Subdivision 1.Protected titles. No individual may use the title "genetic counselor," 
375.27 	"licensed genetic counselor," "gene counselor," "genetic consultant,""genetic assistant," 
375.28 	"genetic associate," or any words, letters, abbreviations, or insignia indicating or implying 
375.29 	that the individual is eligible for licensure by the state as a genetic counselor unless the 
375.30 	individual has been licensed as a genetic counselor according to this chapter.
375.31 		Subd. 2.Unlicensed practice prohibited. Effective January 1, 2018, no individual 
375.32 	may practice genetic counseling unless the individual is licensed as a genetic counselor 
375.33 	under this chapter except as otherwise provided under this chapter.
376.1 		Subd. 3.Other practitioners. (a) Nothing in this chapter shall be construed to 
376.2 	prohibit or restrict the practice of any profession or occupation licensed or registered by the 
376.3 	state by an individual duly licensed or registered to practice the profession or occupation 
376.4 	or to perform any act that falls within the scope of practice of the profession or occupation. 
376.5 	(b) Nothing in this chapter shall be construed to require a license under this chapter 
376.6 	for:
376.7 	(1) an individual employed as a genetic counselor by the federal government or a 
376.8 	federal agency if the individual is providing services under the direction and control of 
376.9 	the employer;
376.10 	(2) a student or intern, having graduated within the past six months, or currently 
376.11 	enrolled in an ACGC-accredited genetic counseling educational program providing 
376.12 	genetic counseling services that are an integral part of the student's or intern's course 
376.13 	of study, are performed under the direct supervision of a licensed genetic counselor or 
376.14 	physician who is on duty in the assigned patient care area, and the student is identified by 
376.15 	the title "genetic counseling intern"; 
376.16 	(3) a visiting ABGC- or ABMG-certified genetic counselor working as a consultant 
376.17 	in this state who permanently resides outside of the state, or the occasional use of services 
376.18 	from organizations from outside of the state that employ ABGC- or ABMG-certified 
376.19 	genetic counselors. This is limited to practicing for 30 days total within one calendar year. 
376.20 	Certified genetic counselors from outside of the state working as a consultant in this state 
376.21 	must be licensed in their state of residence if that credential is available; or
376.22 	(4) an individual who is licensed to practice medicine under chapter 147.
376.23 		Subd. 4.Sanctions. An individual who violates this section is guilty of a 
376.24 	misdemeanor and shall be subject to sanctions or actions according to section 214.11.

376.25 	Sec. 4. [147F.07] LICENSURE REQUIREMENTS.
376.26 		Subdivision 1.General requirements for licensure. To be eligible for licensure, an 
376.27 	applicant, with the exception of those seeking licensure by reciprocity under subdivision 
376.28 	2, must submit to the board:
376.29 	(1) a completed application on forms provided by the board along with all fees 
376.30 	required under section 147F.17. The applicant must include:
376.31 	(i) the applicant's name, Social Security number, home address and telephone 
376.32 	number, and business address and telephone number if currently employed;
376.33 	(ii) the name and location of the genetic counseling or medical program the applicant 
376.34 	completed;
376.35 	(iii) a list of degrees received from other educational institutions;
377.1 	(iv) a description of the applicant's professional training;
377.2 	(v) a list of registrations, certifications, and licenses held in other jurisdictions;
377.3 	(vi) a description of any other jurisdiction's refusal to credential the applicant;
377.4 	(vii) a description of all professional disciplinary actions initiated against the 
377.5 	applicant in any jurisdiction; and
377.6 	(viii) any history of drug or alcohol abuse, and any misdemeanor, gross 
377.7 	misdemeanor, or felony conviction;
377.8 	(2) evidence of graduation from an education program accredited by the ACGC or 
377.9 	its predecessor or successor organization;
377.10 	(3) a verified copy of a valid and current certification issued by the ABGC or ABMG 
377.11 	as a certified genetic counselor, or by the ABMG as a certified medical geneticist;
377.12 	(4) additional information as requested by the board, including any additional 
377.13 	information necessary to ensure that the applicant is able to practice with reasonable skill 
377.14 	and safety to the public;
377.15 	(5) a signed statement verifying that the information in the application is true and 
377.16 	correct to the best of the applicant's knowledge and belief; and
377.17 	(6) a signed waiver authorizing the board to obtain access to the applicant's records 
377.18 	in this or any other state in which the applicant completed an educational program or 
377.19 	engaged in the practice of genetic counseling.
377.20 		Subd. 2.Licensure by reciprocity. To be eligible for licensure by reciprocity, 
377.21 	the applicant must hold a current genetic counselor or medical geneticist registration 
377.22 	or license in another state, the District of Columbia, or a territory of the United States, 
377.23 	whose standards for registration or licensure are at least equivalent to those of Minnesota, 
377.24 	and must:
377.25 	(1) submit the application materials and fees as required by subdivision 1, clauses 
377.26 	(1), (2), and (4) to (6);
377.27 	(2) provide a verified copy from the appropriate government body of a current 
377.28 	registration or license for the practice of genetic counseling in another jurisdiction that has 
377.29 	initial registration or licensing requirements equivalent to or higher than the requirements 
377.30 	in subdivision 1; and
377.31 	(3) provide letters of verification from the appropriate government body in each 
377.32 	jurisdiction in which the applicant holds a registration or license. Each letter must state 
377.33 	the applicant's name, date of birth, registration or license number, date of issuance, a 
377.34 	statement regarding disciplinary actions, if any, taken against the applicant, and the terms 
377.35 	under which the registration or license was issued.
378.1 		Subd. 3.Licensure by equivalency. (a) The board may grant a license to an 
378.2 	individual who does not meet the certification requirements in subdivision 1 but who 
378.3 	has been employed as a genetic counselor for a minimum of ten years and provides the 
378.4 	following documentation to the board:
378.5 	(1) proof of a master's or higher degree in genetics or related field of study from an 
378.6 	accredited educational institution;
378.7 	(2) proof that the individual has never failed the ABGC or ABMG certification 
378.8 	examination;
378.9 	(3) three letters of recommendation, with at least one from an individual eligible 
378.10 	for licensure under this chapter, and at least one from an individual certified as a genetic 
378.11 	counselor by the ABGC or ABMG or an individual certified as a medical geneticist by 
378.12 	the ABMG. An individual who submits a letter of recommendation must have worked 
378.13 	with the applicant in an employment setting during the past ten years and must attest to 
378.14 	the applicant's competency; and 
378.15 	(4) documentation of the completion of 100 hours of NSGC-approved continuing 
378.16 	education credits within the past five years.
378.17 	(b) This subdivision expires January 1, 2018.
378.18 		Subd. 4.License expiration. A genetic counselor license shall be valid for one 
378.19 	year from the date of issuance.
378.20 		Subd. 5.License renewal. To be eligible for license renewal, a licensed genetic 
378.21 	counselor must submit to the board:
378.22 	(1) a renewal application on a form provided by the board;
378.23 	(2) the renewal fee required under section 147F.17;
378.24 	(3) evidence of compliance with the continuing education requirements in section 
378.25 	147F.11; and
378.26 	(4) any additional information requested by the board.

378.27 	Sec. 5. [147F.09] BOARD ACTION ON APPLICATIONS FOR LICENSURE.
378.28 	(a) The board shall act on each application for licensure according to paragraphs 
378.29 	(b) to (d).
378.30 	(b) The board shall determine if the applicant meets the requirements for licensure 
378.31 	under section 147F.07. The board may investigate information provided by an applicant to 
378.32 	determine whether the information is accurate and complete.
378.33 	(c) The board shall notify each applicant in writing of action taken on the application, 
378.34 	the grounds for denying licensure if a license is denied, and the applicant's right to review 
378.35 	the board's decision under paragraph (d).
379.1 	(d) Applicants denied licensure may make a written request to the board, within 30 
379.2 	days of the board's notice, to appear before the advisory council and for the advisory 
379.3 	council to review the board's decision to deny the applicant's license. After reviewing the 
379.4 	denial, the advisory council shall make a recommendation to the board as to whether 
379.5 	the denial shall be affirmed. Each applicant is allowed only one request for review per 
379.6 	licensure period.

379.7 	Sec. 6. [147F.11] CONTINUING EDUCATION REQUIREMENTS.
379.8 	(a) A licensed genetic counselor must complete a minimum of 25 hours of NSGC- 
379.9 	or ABMG-approved continuing education units every two years. If a licensee's renewal 
379.10 	term is prorated to be more or less than one year, the required number of continuing 
379.11 	education units is prorated proportionately.
379.12 	(b) The board may grant a variance to the continuing education requirements 
379.13 	specified in this section if a licensee demonstrates to the satisfaction of the board that the 
379.14 	licensee is unable to complete the required number of educational units during the renewal 
379.15 	term. The board may allow the licensee to complete the required number of continuing 
379.16 	education units within a time frame specified by the board. In no case shall the board 
379.17 	allow the licensee to complete less than the required number of continuing education units.

379.18 	Sec. 7. [147F.13] DISCIPLINE; REPORTING.
379.19 	For purposes of this chapter, licensed genetic counselors and applicants are subject 
379.20 	to sections 147.091 to 147.162.

379.21 	Sec. 8. [147F.15] LICENSED GENETIC COUNSELOR ADVISORY COUNCIL.
379.22 		Subdivision 1.Membership. The board shall appoint a five-member Licensed 
379.23 	Genetic Counselor Advisory Council. One member must be a licensed physician with 
379.24 	experience in genetics, three members must be licensed genetic counselors, and one 
379.25 	member must be a public member.
379.26 		Subd. 2.Organization. The advisory council shall be organized and administered 
379.27 	as provided in section 15.059.
379.28 		Subd. 3.Duties. The advisory council shall:
379.29 	(1) advise the board regarding standards for licensed genetic counselors;
379.30 	(2) provide for distribution of information regarding licensed genetic counselor 
379.31 	practice standards;
379.32 	(3) advise the board on enforcement of this chapter;
380.1 	(4) review applications and recommend granting or denying licensure or license 
380.2 	renewal;
380.3 	(5) advise the board on issues related to receiving and investigating complaints, 
380.4 	conducting hearings, and imposing disciplinary action in relation to complaints against 
380.5 	licensed genetic counselors; and
380.6 	(6) perform other duties authorized for advisory councils under chapter 214, as 
380.7 	directed by the board.
380.8 		Subd. 4.Expiration. Notwithstanding section 15.059, the advisory council does 
380.9 	not expire.

380.10 	Sec. 9. [147F.17] FEES.
380.11 		Subdivision 1.Fees. Fees are as follows:
380.12 	(1) license application fee, $200;
380.13 	(2) initial licensure and annual renewal, $150; and
380.14 	(3) late fee, $75.
380.15 		Subd. 2.Proration of fees. The board may prorate the initial license fee. All 
380.16 	licensees are required to pay the full fee upon license renewal.
380.17 		Subd. 3.Penalty for late renewals. An application for registration renewal 
380.18 	submitted after the deadline must be accompanied by a late fee in addition to the required 
380.19 	fees. 
380.20 		Subd. 4.Nonrefundable fees. All fees are nonrefundable.
380.21 		Subd. 5.Deposit. Fees collected by the board under this section shall be deposited 
380.22 	in the state government special revenue fund.
380.23 	ORTHOTICS, PEDORTHICS, AND PROSTHETICS

380.24 	Sec. 10. [153B.10] SHORT TITLE.
380.25 	Chapter 153B may be cited as the "Minnesota Orthotist, Prosthetist, and Pedorthist 
380.26 	Practice Act."

380.27 	Sec. 11. [153B.15] DEFINITIONS.
380.28 		Subdivision 1.Application. For purposes of this chapter, the following words 
380.29 	have the meanings given.
380.30 		Subd. 2.Advisory council. "Advisory council" means the Orthotics, Prosthetics, 
380.31 	and Pedorthics Advisory Council established under section 153B.25.
380.32 		Subd. 3.Board. "Board" means the Board of Podiatric Medicine.
381.1 		Subd. 4.Custom-fabricated device. "Custom-fabricated device" means an orthosis, 
381.2 	prosthesis, or pedorthic device for use by a patient that is fabricated to comprehensive 
381.3 	measurements or a mold or patient model in accordance with a prescription and which 
381.4 	requires on-site or in-person clinical and technical judgment in its design, fabrication, 
381.5 	and fitting.
381.6 		Subd. 5.Licensed orthotic-prosthetic assistant. "Licensed orthotic-prosthetic 
381.7 	assistant" or "assistant" means a person, licensed by the board, who is educated and 
381.8 	trained to participate in comprehensive orthotic and prosthetic care while under the 
381.9 	supervision of a licensed orthotist or licensed prosthetist. Assistants may perform orthotic 
381.10 	and prosthetic procedures and related tasks in the management of patient care. The 
381.11 	assistant may fabricate, repair, and maintain orthoses and prostheses. The use of the title 
381.12 	"orthotic-prosthetic assistant" or representations to the public is limited to a person who is 
381.13 	licensed under this chapter as an orthotic-prosthetic assistant.
381.14 		Subd. 6.Licensed orthotic fitter. "Licensed orthotic fitter" or "fitter" means a 
381.15 	person licensed by the board who is educated and trained in providing certain orthoses, 
381.16 	and is trained to conduct patient assessments, formulate treatment plans, implement 
381.17 	treatment plans, perform follow-up, and practice management pursuant to a prescription. 
381.18 	An orthotic fitter must be competent to fit certain custom-fitted, prefabricated, and 
381.19 	off-the-shelf orthoses as follows:
381.20 	(1) cervical orthoses, except those used to treat an unstable cervical condition;
381.21 	(2) prefabricated orthoses for the upper and lower extremities, except those used in: 
381.22 	(i) the initial or acute treatment of long bone fractures and dislocations;
381.23 	(ii) therapeutic shoes and inserts needed as a result of diabetes; and
381.24 	(iii) functional electrical stimulation orthoses;
381.25 	(3) prefabricated spinal orthoses, except those used in the treatment of scoliosis or 
381.26 	unstable spinal conditions, including halo cervical orthoses; and
381.27 	(4) trusses.
381.28 	The use of the title "orthotic fitter" or representations to the public is limited to a person 
381.29 	who is licensed under this chapter as an orthotic fitter.
381.30 		Subd. 7.Licensed orthotist. "Licensed orthotist" means a person licensed by 
381.31 	the board who is educated and trained to practice orthotics, which includes managing 
381.32 	comprehensive orthotic patient care pursuant to a prescription. The use of the title 
381.33 	"orthotist" or representations to the public is limited to a person who is licensed under 
381.34 	this chapter as an orthotist.
381.35 		Subd. 8.Licensed pedorthist. "Licensed pedorthist" means a person licensed by 
381.36 	the board who is educated and trained to manage comprehensive pedorthic patient care 
382.1 	and who performs patient assessments, formulates and implements treatment plans, and 
382.2 	performs follow-up and practice management pursuant to a prescription. A pedorthist may 
382.3 	fit, fabricate, adjust, or modify devices within the scope of the pedorthist's education and 
382.4 	training. Use of the title "pedorthist" or representations to the public is limited to a person 
382.5 	who is licensed under this chapter as a pedorthist.
382.6 		Subd. 9.Licensed prosthetist. "Licensed prosthetist" means a person licensed by 
382.7 	the board who is educated and trained to manage comprehensive prosthetic patient care, 
382.8 	and who performs patient assessments, formulates and implements treatment plans, and 
382.9 	performs follow-up and practice management pursuant to a prescription. Use of the title 
382.10 	"prosthetist" or representations to the public is limited to a person who is licensed under 
382.11 	this chapter as a prosthetist.
382.12 		Subd. 10.Licensed prosthetist orthotist. "Licensed prosthetist orthotist" means a 
382.13 	person licensed by the board who is educated and trained to manage comprehensive 
382.14 	prosthetic and orthotic patient care, and who performs patient assessments, formulates and 
382.15 	implements treatment plans, and performs follow-up and practice management pursuant to 
382.16 	a prescription. Use of the title "prosthetist orthotist" or representations to the public is 
382.17 	limited to a person who is licensed under this chapter as a prosthetist orthotist.
382.18 		Subd. 11.NCOPE. "NCOPE" means National Commission on Orthotic and 
382.19 	Prosthetic Education, an accreditation program that ensures educational institutions and 
382.20 	residency programs meet the minimum standards of quality to prepare individuals to enter 
382.21 	the orthotic, prosthetic, and pedorthic professions.
382.22 		Subd. 12.Orthosis. "Orthosis" means an external device that is custom-fabricated 
382.23 	or custom-fitted to a specific patient based on the patient's unique physical condition and 
382.24 	is applied to a part of the body to help correct a deformity, provide support and protection, 
382.25 	restrict motion, improve function, or relieve symptoms of a disease, syndrome, injury, or 
382.26 	postoperative condition.
382.27 		Subd. 13.Orthotics. "Orthotics" means the science and practice of evaluating, 
382.28 	measuring, designing, fabricating, assembling, fitting, adjusting, or servicing an orthosis 
382.29 	pursuant to a prescription. The practice of orthotics includes providing the initial training 
382.30 	necessary for fitting an orthotic device for the support, correction, or alleviation of 
382.31 	neuromuscular or musculoskeletal dysfunction, disease, injury, or deformity.
382.32 		Subd. 14.Over-the-counter. "Over-the-counter" means a prefabricated, 
382.33 	mass-produced item that is prepackaged, requires no professional advice or judgment in 
382.34 	size selection or use, and is currently available at retail stores without a prescription. 
382.35 	Over-the-counter items are not regulated by this chapter.
383.1 		Subd. 15.Off-the-shelf. "Off-the-shelf" means a prefabricated device sized or 
383.2 	modified for the patient's use pursuant to a prescription and that requires changes to be 
383.3 	made by a qualified practitioner to achieve an individual fit, such as requiring the item 
383.4 	to be trimmed, bent, or molded with or without heat, or requiring any other alterations 
383.5 	beyond self adjustment.
383.6 		Subd. 16.Pedorthic device. "Pedorthic device" means below-the-ankle partial 
383.7 	foot prostheses for transmetatarsal and more distal amputations, foot orthoses, and 
383.8 	subtalar-control foot orthoses to control the range of motion of the subtalar joint. 
383.9 	A prescription is required for any pedorthic device, modification, or prefabricated 
383.10 	below-the-knee orthosis addressing a medical condition that originates at the ankle or 
383.11 	below. Pedorthic devices do not include nontherapeutic inlays or footwear regardless 
383.12 	of method of manufacture; unmodified, nontherapeutic over-the-counter shoes; or 
383.13 	prefabricated foot care products.
383.14 		Subd. 17.Pedorthics. "Pedorthics" means the science and practice of evaluating, 
383.15 	measuring, designing, fabricating, assembling, fitting, adjusting, or servicing a pedorthic 
383.16 	device pursuant to a prescription for the correction or alleviation of neuromuscular or 
383.17 	musculoskeletal dysfunction, disease, injury, or deformity. The practice of pedorthics 
383.18 	includes providing patient care and services pursuant to a prescription to prevent or 
383.19 	ameliorate painful or disabling conditions of the foot and ankle.
383.20 		Subd. 18.Prescription. "Prescription" means an order deemed medically necessary 
383.21 	by a physician, podiatric physician, osteopathic physician, or a licensed health care 
383.22 	provider who has authority in this state to prescribe orthotic and prosthetic devices, 
383.23 	supplies, and services.
383.24 		Subd. 19.Prosthesis. "Prosthesis" means a custom-designed, fabricated, fitted, or 
383.25 	modified device to treat partial or total limb loss for purposes of restoring physiological 
383.26 	function or cosmesis. Prosthesis does not include artificial eyes, ears, fingers, or toes; 
383.27 	dental appliances; external breast prosthesis; or cosmetic devices that do not have a 
383.28 	significant impact on the musculoskeletal functions of the body.
383.29 		Subd. 20.Prosthetics. "Prosthetics" means the science and practice of evaluating, 
383.30 	measuring, designing, fabricating, assembling, fitting, adjusting, or servicing a prosthesis 
383.31 	pursuant to a prescription. It includes providing the initial training necessary to fit a 
383.32 	prosthesis in order to replace external parts of a human body lost due to amputation, 
383.33 	congenital deformities, or absence.
383.34 		Subd. 21.Resident. "Resident" means a person who has completed a 
383.35 	NCOPE-approved education program in orthotics or prosthetics and is receiving clinical 
383.36 	training in a residency accredited by NCOPE.
384.1 		Subd. 22.Residency. "Residency" means a minimum of an NCOPE-approved 
384.2 	program to acquire practical clinical training in orthotics and prosthetics in a patient 
384.3 	care setting.
384.4 		Subd. 23.Supervisor. "Supervisor" means the licensed orthotist, prosthetist, or 
384.5 	pedorthist who oversees and is responsible for the delivery of appropriate, effective, 
384.6 	ethical, and safe orthotic, prosthetic, or pedorthic patient care.

384.7 	Sec. 12. [153B.20] EXCEPTIONS.
384.8 	Nothing in this chapter shall prohibit:
384.9 	(1) a physician, osteopathic physician, or podiatric physician licensed by the state of 
384.10 	Minnesota from providing services within the physician's scope of practice;
384.11 	(2) a health care professional licensed by the state of Minnesota, including, but not 
384.12 	limited to, chiropractors, physical therapists, and occupational therapy practitioners from 
384.13 	providing services within the professional's scope of practice, or an individual working 
384.14 	under the supervision of a licensed physician or podiatric physician;
384.15 	(3) the practice of orthotics, prosthetics, or pedorthics by a person who is employed 
384.16 	by the federal government or any bureau, division, or agency of the federal government 
384.17 	while in the discharge of the employee's official duties;
384.18 	(4) the practice of orthotics, prosthetics, or pedorthics by:
384.19 	(i) a student enrolled in an accredited or approved orthotics, prosthetics, or 
384.20 	pedorthics education program who is performing activities required by the program;
384.21 	(ii) a resident enrolled in an NCOPE-accredited residency program; or
384.22 	(iii) a person working in a qualified, supervised work experience or internship who 
384.23 	is obtaining the clinical experience necessary for licensure under this chapter; or
384.24 	(5) an orthotist, prosthetist, prosthetist orthotist, pedorthist, assistant, or fitter who is 
384.25 	licensed in another state or territory of the United States or in another country that has 
384.26 	equivalent licensure requirements as approved by the board from providing services within 
384.27 	the professional's scope of practice subject to this chapter, if the individual is qualified and 
384.28 	has applied for licensure under this chapter. The individual shall be allowed to practice for 
384.29 	no longer than six months following the filing of the application for licensure, unless the 
384.30 	individual withdraws the application for licensure or the board denies the license.

384.31 	Sec. 13. [153B.25] ORTHOTICS, PROSTHETICS, AND PEDORTHICS 
384.32 	ADVISORY COUNCIL.
384.33 		Subdivision 1.Creation; membership. (a) There is established an Orthotics, 
384.34 	Prosthetics, and Pedorthics Advisory Council that shall consist of seven voting members 
385.1 	appointed by the board. Five members shall be licensed and practicing orthotists, 
385.2 	prosthetists, or pedorthists. Each profession shall be represented on the advisory council. 
385.3 	One member shall be a Minnesota-licensed doctor of podiatric medicine who is also a 
385.4 	member of the Board of Podiatric Medicine, and one member shall be a public member.
385.5 	(b) The council shall be organized and administered under section 15.059.
385.6 		Subd. 2.Duties. The advisory council shall:
385.7 	(1) advise the board on enforcement of the provisions contained in this chapter;
385.8 	(2) review reports of investigations or complaints relating to individuals and make 
385.9 	recommendations to the board as to whether a license should be denied or disciplinary 
385.10 	action taken against an individual;
385.11 	(3) advise the board regarding standards for licensure of professionals under this 
385.12 	chapter; and
385.13 	(4) perform other duties authorized for advisory councils by chapter 214, as directed 
385.14 	by the board.
385.15 		Subd. 3.Chair. The council must elect a chair from among its members.
385.16 		Subd. 4.Administrative provisions. The Board of Podiatric Medicine must 
385.17 	provide meeting space and administrative services for the council.

385.18 	Sec. 14. [153B.30] LICENSURE.
385.19 		Subdivision 1.Application. An application for a license shall be submitted to the 
385.20 	board in the format required by the board and shall be accompanied by the required fee, 
385.21 	which is nonrefundable.
385.22 		Subd. 2.Qualifications. (a) To be eligible for licensure as an orthotist, prosthetist, 
385.23 	or prosthetist orthotist, an applicant shall meet orthotist, prosthetist, or prosthetist orthotist 
385.24 	certification requirements of either the American Board for Certification in Orthotics, 
385.25 	Prosthetics, and Pedorthics or the Board of Certification/Accreditation requirements in 
385.26 	effect at the time of the individual's application for licensure and be in good standing 
385.27 	with the certifying board.
385.28 	(b) To be eligible for licensure as a pedorthist, an applicant shall meet the pedorthist 
385.29 	certification requirements of either the American Board for Certification in Orthotics, 
385.30 	Prosthetics, and Pedorthics or the Board of Certification/Accreditation that are in effect 
385.31 	at the time of the individual's application for licensure and be in good standing with 
385.32 	the certifying board.
385.33 	(c) To be eligible for licensure as an orthotic or prosthetic assistant, an applicant shall 
385.34 	meet the orthotic or prosthetic assistant certification requirements of the American Board 
386.1 	for Certification in Orthotics, Prosthetics, and Pedorthics that are in effect at the time of 
386.2 	the individual's application for licensure and be in good standing with the certifying board.
386.3 	(d) To be eligible for licensure as an orthotic fitter, an applicant shall meet the 
386.4 	orthotic fitter certification requirements of either the American Board for Certification in 
386.5 	Orthotics, Prosthetics, and Pedorthics or the Board of Certification/Accreditation that are 
386.6 	in effect at the time of the individual's application for licensure and be in good standing 
386.7 	with the certifying board.
386.8 		Subd. 3.License term. A license to practice is valid for a term of up to 24 months 
386.9 	beginning on January 1 or commencing after initially fulfilling the license requirements 
386.10 	and ending on December 31 of the following year.

386.11 	Sec. 15. [153B.35] EMPLOYMENT BY AN ACCREDITED FACILITY; SCOPE 
386.12 	OF PRACTICE.
386.13 	A licensed orthotist, prosthetist, pedorthist, assistant, or orthotic fitter may provide 
386.14 	limited, supervised orthotic or prosthetic patient care services beyond their licensed scope 
386.15 	of practice if all of the following conditions are met:
386.16 	(1) the licensee is employed by a patient care facility that is accredited by a national 
386.17 	accrediting organization in orthotics, prosthetics, and pedorthics;
386.18 	(2) written objective criteria are documented by the accredited facility to describe 
386.19 	the knowledge and skills required by the licensee to demonstrate competency to provide 
386.20 	additional specific and limited orthotic or prosthetic patient care services that are outside 
386.21 	the licensee's scope of practice;
386.22 	(3) the licensee provides orthotic or prosthetic patient care only at the direction of a 
386.23 	supervisor who is licensed as an orthotist, pedorthist, or prosthetist who is employed by 
386.24 	the facility to provide the specific orthotic or prosthetic patient care or services that are 
386.25 	outside the licensee's scope of practice; and
386.26 	(4) the supervised orthotic or prosthetic patient care occurs in compliance with 
386.27 	facility accreditation standards.

386.28 	Sec. 16. [153B.40] CONTINUING EDUCATION.
386.29 		Subdivision 1.Requirement. Each licensee shall obtain the number of continuing 
386.30 	education hours required by the certifying board to maintain certification status pursuant 
386.31 	to the specific license category.
386.32 		Subd. 2.Proof of attendance. A licensee must submit to the board proof of 
386.33 	attendance at approved continuing education programs during the license renewal period 
386.34 	in which it was attended in the form of a certificate, statement of continuing education 
387.1 	credits from the American Board for Certification in Orthotics, Prosthetics, and Pedorthics 
387.2 	or the Board of Certification/Accreditation, descriptive receipt, or affidavit. The board 
387.3 	may conduct random audits.
387.4 		Subd. 3.Extension of continuing education requirements. For good cause, a 
387.5 	licensee may apply to the board for a six-month extension of the deadline for obtaining 
387.6 	the required number of continuing education credits. No more than two consecutive 
387.7 	extensions may be granted. For purposes of this subdivision, "good cause" includes 
387.8 	unforeseen hardships such as illness, family emergency, or military call-up.

387.9 	Sec. 17. [153B.45] LICENSE RENEWAL.
387.10 		Subdivision 1.Submission of license renewal application. A licensee must submit 
387.11 	to the board a license renewal application on a form provided by the board together with 
387.12 	the license renewal fee. The completed form must be postmarked no later than January 1 
387.13 	in the year of renewal. The form must be signed by the licensee in the place provided for 
387.14 	the renewal applicant's signature, include evidence of participation in approved continuing 
387.15 	education programs, and any other information as the board may reasonably require.
387.16 		Subd. 2.Renewal application postmarked after January 1. A renewal application 
387.17 	postmarked after January 1 in the renewal year shall be returned to the licensee for addition 
387.18 	of the late renewal fee. A license renewal application postmarked after January 1 in the 
387.19 	renewal year is not complete until the late renewal fee has been received by the board.
387.20 		Subd. 3.Failure to submit renewal application. (a) At any time after January 1 of 
387.21 	the applicable renewal year, the board shall send notice to a licensee who has failed to 
387.22 	apply for license renewal. The notice shall be mailed to the licensee at the last address on 
387.23 	file with the board and shall include the following information:
387.24 	(1) that the licensee has failed to submit application for license renewal;
387.25 	(2) the amount of renewal and late fees;
387.26 	(3) information about continuing education that must be submitted in order for 
387.27 	the license to be renewed;
387.28 	(4) that the licensee must respond within 30 calendar days after the notice was sent 
387.29 	by the board; and
387.30 	(5) that the licensee may voluntarily terminate the license by notifying the board 
387.31 	or may apply for license renewal by sending the board a completed renewal application, 
387.32 	license renewal and late fees, and evidence of compliance with continuing education 
387.33 	requirements.
387.34 	(b) Failure by the licensee to notify the board of the licensee's intent to voluntarily 
387.35 	terminate the license or to submit a license renewal application shall result in expiration 
388.1 	of the license and termination of the right to practice. The expiration of the license and 
388.2 	termination of the right to practice shall not be considered disciplinary action against the 
388.3 	licensee.
388.4 	(c) A license that has been expired under this subdivision may be reinstated.

388.5 	Sec. 18. [153B.50] NAME AND ADDRESS CHANGE.
388.6 	(a) A licensee who has changed names must notify the board in writing within 90 
388.7 	days and request a revised license. The board may require official documentation of the 
388.8 	legal name change.
388.9 	(b) A licensee must maintain with the board a correct mailing address to receive 
388.10 	board communications and notices. A licensee who has changed addresses must notify the 
388.11 	board in writing within 90 days. Mailing a notice by United States mail to a licensee's last 
388.12 	known mailing address constitutes valid mailing.

388.13 	Sec. 19. [153B.55] INACTIVE STATUS.
388.14 	(a) A licensee who notifies the board in the format required by the board may elect 
388.15 	to place the licensee's credential on inactive status and shall be excused from payment 
388.16 	of renewal fees until the licensee notifies the board in the format required by the board 
388.17 	of the licensee's plan to return to practice.
388.18 	(b) A person requesting restoration from inactive status shall be required to pay the 
388.19 	current renewal fee and comply with section 153B.45.
388.20 	(c) A person whose license has been placed on inactive status shall not practice in 
388.21 	this state.

388.22 	Sec. 20. [153B.60] LICENSE LAPSE DUE TO MILITARY SERVICE.
388.23 	A licensee whose license has expired while on active duty in the armed forces of the 
388.24 	United States, with the National Guard while called into service or training, or while in 
388.25 	training or education preliminary to induction into military service may have the licensee's 
388.26 	license renewed or restored without paying a late fee or license restoration fee if the licensee 
388.27 	provides verification to the board within two years of the termination of service obligation.

388.28 	Sec. 21. [153B.65] ENDORSEMENT.
388.29 	The board may license, without examination and on payment of the required fee, 
388.30 	an applicant who is an orthotist, prosthetist, prosthetist orthotist, pedorthist, assistant, or 
388.31 	fitter who is certified by the American Board for Certification in Orthotics, Prosthetics, 
389.1 	and Pedorthics or a national certification organization with educational, experiential, and 
389.2 	testing standards equal to or higher than the licensing requirements in Minnesota.

389.3 	Sec. 22. [153B.70] GROUNDS FOR DISCIPLINARY ACTION.
389.4 	(a) The board may refuse to issue or renew a license, revoke or suspend a license, or 
389.5 	place on probation or reprimand a licensee for one or any combination of the following:
389.6 	(1) making a material misstatement in furnishing information to the board;
389.7 	(2) violating or intentionally disregarding the requirements of this chapter;
389.8 	(3) conviction of a crime, including a finding or verdict of guilt, an admission of 
389.9 	guilt, or a no-contest plea, in this state or elsewhere, reasonably related to the practice 
389.10 	of the profession. Conviction, as used in this clause, includes a conviction of an offense 
389.11 	which, if committed in this state, would be deemed a felony, gross misdemeanor, or 
389.12 	misdemeanor, without regard to its designation elsewhere, or a criminal proceeding where 
389.13 	a finding or verdict of guilty is made or returned but the adjudication of guilt is either 
389.14 	withheld or not entered;
389.15 	(4) making a misrepresentation in order to obtain or renew a license;
389.16 	(5) displaying a pattern of practice or other behavior that demonstrates incapacity or 
389.17 	incompetence to practice;
389.18 	(6) aiding or assisting another person in violating the provisions of this chapter;
389.19 	(7) failing to provide information within 60 days in response to a written request from 
389.20 	the board, including documentation of completion of continuing education requirements;
389.21 	(8) engaging in dishonorable, unethical, or unprofessional conduct;
389.22 	(9) engaging in conduct of a character likely to deceive, defraud, or harm the public;
389.23 	(10) inability to practice due to habitual intoxication, addiction to drugs, or mental 
389.24 	or physical illness;
389.25 	(11) being disciplined by another state or territory of the United States, the federal 
389.26 	government, a national certification organization, or foreign nation, if at least one of the 
389.27 	grounds for the discipline is the same or substantially equivalent to one of the grounds 
389.28 	in this section;
389.29 	(12) directly or indirectly giving to or receiving from a person, firm, corporation, 
389.30 	partnership, or association a fee, commission, rebate, or other form of compensation for 
389.31 	professional services not actually or personally rendered;
389.32 	(13) incurring a finding by the board that the licensee, after the licensee has been 
389.33 	placed on probationary status, has violated the conditions of the probation;
389.34 	(14) abandoning a patient or client;
390.1 	(15) willfully making or filing false records or reports in the course of the licensee's 
390.2 	practice including, but not limited to, false records or reports filed with state or federal 
390.3 	agencies;
390.4 	(16) willfully failing to report child maltreatment as required under the Maltreatment 
390.5 	of Minors Act, section 626.556; or
390.6 	(17) soliciting professional services using false or misleading advertising.
390.7 	(b) A license to practice is automatically suspended if (1) a guardian of a licensee is 
390.8 	appointed by order of a court pursuant to sections 524.5-101 to 524.5-502, for reasons 
390.9 	other than the minority of the licensee, or (2) the licensee is committed by order of a court 
390.10 	pursuant to chapter 253B. The license remains suspended until the licensee is restored to 
390.11 	capacity by a court and, upon petition by the licensee, the suspension is terminated by the 
390.12 	board after a hearing. The licensee may be reinstated to practice, either with or without 
390.13 	restrictions, by demonstrating clear and convincing evidence of rehabilitation. The 
390.14 	regulated person is not required to prove rehabilitation if the subsequent court decision 
390.15 	overturns previous court findings of public risk.
390.16 	(c) If the board has probable cause to believe that a licensee or applicant has violated 
390.17 	paragraph (a), clause (10), it may direct the person to submit to a mental or physical 
390.18 	examination. For the purpose of this section, every person is deemed to have consented to 
390.19 	submit to a mental or physical examination when directed in writing by the board and to 
390.20 	have waived all objections to the admissibility of the examining physician's testimony or 
390.21 	examination report on the grounds that the testimony or report constitutes a privileged 
390.22 	communication. Failure of a regulated person to submit to an examination when directed 
390.23 	constitutes an admission of the allegations against the person, unless the failure was due to 
390.24 	circumstances beyond the person's control, in which case a default and final order may be 
390.25 	entered without the taking of testimony or presentation of evidence. A regulated person 
390.26 	affected under this paragraph shall at reasonable intervals be given an opportunity to 
390.27 	demonstrate that the person can resume the competent practice of the regulated profession 
390.28 	with reasonable skill and safety to the public. In any proceeding under this paragraph, 
390.29 	neither the record of proceedings nor the orders entered by the board shall be used against 
390.30 	a regulated person in any other proceeding.
390.31 	(d) In addition to ordering a physical or mental examination, the board may, 
390.32 	notwithstanding section 13.384 or 144.293, or any other law limiting access to medical or 
390.33 	other health data, obtain medical data and health records relating to a licensee or applicant 
390.34 	without the person's or applicant's consent if the board has probable cause to believe that a 
390.35 	licensee is subject to paragraph (a), clause (10). The medical data may be requested 
390.36 	from a provider as defined in section 144.291, subdivision 2, paragraph (i), an insurance 
391.1 	company, or a government agency, including the Department of Human Services. A 
391.2 	provider, insurance company, or government agency shall comply with any written request 
391.3 	of the board under this section and is not liable in any action for damages for releasing the 
391.4 	data requested by the board if the data are released pursuant to a written request under this 
391.5 	section, unless the information is false and the provider giving the information knew, or 
391.6 	had reason to know, the information was false. Information obtained under this section 
391.7 	is private data on individuals as defined in section 13.02.
391.8 	(e) If the board issues an order of immediate suspension of a license, a hearing must 
391.9 	be held within 30 days of the suspension and completed without delay.

391.10 	Sec. 23. [153B.75] INVESTIGATION; NOTICE AND HEARINGS.
391.11 	The board has the authority to investigate alleged violations of this chapter, conduct 
391.12 	hearings, and impose corrective or disciplinary action as provided in section 214.103.

391.13 	Sec. 24. [153B.80] UNLICENSED PRACTICE.
391.14 		Subdivision 1.License required. Effective January 1, 2018, no individual shall 
391.15 	practice as an orthotist, prosthetist, prosthetist orthotist, pedorthist, orthotic or prosthetic 
391.16 	assistant, or orthotic fitter, unless the individual holds a valid license issued by the board 
391.17 	under this chapter, except as permitted under section 153B.20 or 153B.35.
391.18 		Subd. 2.Designation. No individual shall represent themselves to the public as 
391.19 	a licensed orthotist, prosthetist, prosthetist orthotist, pedorthist, orthotic or prosthetic 
391.20 	assistant, or an orthotic fitter, unless the individual is licensed under this chapter.
391.21 		Subd. 3.Penalties. Any individual who violates this section is guilty of a 
391.22 	misdemeanor. The board shall have the authority to seek a cease and desist order against 
391.23 	any individual who is engaged in the unlicensed practice of a profession regulated by the 
391.24 	board under this chapter.

391.25 	Sec. 25. [153B.85] FEES.
391.26 		Subdivision 1.Fees. (a) The application fee for initial licensure shall not exceed 
391.27 	$600.
391.28 	(b) The biennial renewal fee for a license to practice as an orthotist, prosthetist, 
391.29 	prosthetist orthotist, or pedorthist shall not exceed $600.
391.30 	(c) The biennial renewal fee for a license to practice as an assistant or a fitter shall 
391.31 	not exceed $300.
391.32 	(d) The fee for license restoration shall not exceed $600.
391.33 	(e) The fee for license verification shall not exceed $30.
392.1 	(f) The fee to obtain a list of licensees shall not exceed $25.
392.2 		Subd. 2.Proration of fees. For the first renewal period following initial licensure, 
392.3 	the renewal fee is the fee specified in subdivision 1, paragraph (b) or (c), prorated to the 
392.4 	nearest dollar that is represented by the ratio of the number of days the license is held 
392.5 	in the initial licensure period to 730 days.
392.6 		Subd. 3.Late fee. The fee for late license renewal is the license renewal fee in 
392.7 	effect at the time of renewal plus $100.
392.8 		Subd. 4.Nonrefundable fees. All fees are nonrefundable.
392.9 		Subd. 5.Deposit. Fees collected by the board under this section shall be deposited 
392.10 	in the state government special revenue fund.

392.11 	Sec. 26. Minnesota Statutes 2014, section 214.075, subdivision 3, is amended to read:
392.12 		Subd. 3.Consent form; fees; fingerprints. (a) In order to effectuate the federal 
392.13 	and state level, fingerprint-based criminal background check, the applicant or licensee 
392.14 	must submit a completed criminal history records check consent form and a full set of 
392.15 	fingerprints to the respective health-related licensing board or a designee in the manner 
392.16 	and form specified by the board.
392.17 	(b) The applicant or licensee is responsible for all fees associated with preparation of 
392.18 	the fingerprints, the criminal records check consent form, and the criminal background 
392.19 	check. The fees for the criminal records background check shall be set by the BCA and 
392.20 	the FBI and are not refundable. The fees shall be submitted to the respective health-related 
392.21 	licensing board by the applicant or licensee as prescribed by the respective board.
392.22 	(c) All fees received by the health-related licensing boards under this subdivision 
392.23 	shall be deposited in a dedicated account accounts in the special revenue fund and are 
392.24 	appropriated to the Board of Nursing Home Administrators for the administrative services 
392.25 	unit health-related licensing boards to pay for the criminal background checks conducted 
392.26 	by the Bureau of Criminal Apprehension and Federal Bureau of Investigation.

392.27 	Sec. 27. FIRST APPOINTMENTS, FIRST MEETING, AND FIRST CHAIR OF 
392.28 	THE ORTHOTICS, PROSTHETICS, AND PEDORTHICS ADVISORY COUNCIL.
 392.29 	The Board of Podiatric Medicine shall make its first appointments authorized 
392.30 	under Minnesota Statutes, section 153B.25, to the Orthotics, Prosthetics, and Pedorthics 
392.31 	Advisory Council, by September 1, 2016. The board shall designate four of its first 
392.32 	appointees to serve terms that are coterminous with the governor. The chair of the Board 
392.33 	of Podiatric Medicine or the chair's designee shall convene the first meeting of the council 
393.1 	by November 1, 2016. The council must elect a chair from among its members at the first 
393.2 	meeting of the council.

393.3 	Sec. 28. INITIAL APPOINTMENTS; FIRST MEETING; AND FIRST CHAIR 
393.4 	OF THE LICENSED GENETIC COUNSELOR ADVISORY COUNCIL.
 393.5 	The Board of Medical Practice shall make its first appointments authorized under 
393.6 	Minnesota Statutes, section 147F.15, to the Licensed Genetic Counselor Advisory Council 
393.7 	by December 1, 2016. The chair of the Board of Medical Practice or the chair's designee 
393.8 	shall convene the first meeting of the council by March 1, 2017. The council must elect a 
393.9 	chair from its members at the first meeting of the council.

393.10 	ARTICLE 22
393.11 	HUMAN SERVICES FORECAST ADJUSTMENTS

393.12	Section 1. HUMAN SERVICES APPROPRIATION.
 	
393.13 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
393.14 	in parentheses, subtracted from the appropriations in Laws 2015, chapter 71, article 13, 
393.15 	from the general fund or any fund named to the Department of Human Services for the 
393.16 	purposes specified in this article, to be available for the fiscal year indicated for each 
393.17 	purpose. The figures "2016" and "2017" used in this article mean that the appropriations 
393.18 	listed under them are available for the fiscal year ending June 30, 2016, or June 30, 2017, 
393.19 	respectively. "The first year" is fiscal year 2016. "The second year" is fiscal year 2017. 
393.20 	"The biennium" is fiscal years 2016 and 2017.

393.21				APPROPRIATIONS
	
393.22				Available for the Year
	
393.23				Ending June 30
	
393.24					2016
		2017

393.25
393.26	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

393.27	Subdivision 1.Total Appropriation
 	$
	(615,912,000)
	$
	(518,891,000)

393.28	Appropriations by Fund
	
393.29		2016
	2017
	
393.30	General Fund
	(307,806,000)
	(246,029,000)
	
393.31
393.32	Health Care Access 
Fund
	(289,770,000)
	(277,101,000)
	
393.33	Federal TANF
	(18,336,000)
	4,239,000

393.34	Subd. 2.Forecasted Programs

394.1	(a) MFIP/DWP

394.2	Appropriations by Fund
	
394.3	General Fund
	9,833,000
	(8,799,000)
	
394.4	Federal TANF
	(20,225,000)
	4,212,000

394.5	(b) MFIP Child Care Assistance
		(23,094,000)
		(7,760,000)

394.6	(c) General Assistance
		(2,120,000)
		(1,078,000)

394.7	(d) Minnesota Supplemental Aid
		(1,613,000)
		(1,650,000)

394.8	(e) Group Residential Housing
		(8,101,000)
		(7,954,000)

394.9	(f) Northstar Care for Children
		2,231,000
		4,496,000

394.10	(g) MinnesotaCare
		(227,821,000)
		(230,027,000)
	
394.11 	These appropriations are from the health care 
394.12 	access fund.

394.13	(h) Medical Assistance

394.14	Appropriations by Fund
	
394.15	General Fund
	(294,773,000)
	(243,700,000)
	
394.16
394.17	Health Care Access 
Fund
	(61,949,000)
	(47,074,000)

394.18	(i) Alternative Care Program
		-0-
		-0-

394.19	(j) CCDTF Entitlements
		9,831,000
		20,416,000

394.20	Subd. 3.Technical Activities
 		1,889,000
		27,000
	
394.21 	These appropriations are from the federal 
394.22 	TANF fund.

394.23 	Sec. 3. EFFECTIVE DATE.
 394.24 	Sections 1 and 2 are effective the day following final enactment.

394.25 	ARTICLE 23
394.26 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

394.27	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
394.28 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
394.29 	in parentheses, subtracted from the appropriations in Laws 2015, chapter 71, article 14, to 
394.30 	the agencies and for the purposes specified in this article. The appropriations are from the 
395.1 	general fund or other named fund and are available for the fiscal years indicated for each 
395.2 	purpose. The figures "2016" and "2017" used in this article mean that the addition to or 
395.3 	subtraction from the appropriation listed under them is available for the fiscal year ending 
395.4 	June 30, 2016, or June 30, 2017, respectively. Supplemental appropriations and reductions 
395.5 	to appropriations for the fiscal year ending June 30, 2016, are effective the day following 
395.6 	final enactment unless a different effective date is explicit.

395.7				APPROPRIATIONS
	
395.8				Available for the Year
	
395.9				Ending June 30
	
395.10					2016
		2017

395.11
395.12	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

395.13	Subdivision 1.Total Appropriation
 	$	
6,851,000
	$	
74,660,000

395.14	Appropriations by Fund
	
395.15		2016
	2017
	
395.16	General
	6,851,000	
73,923,000
	
395.17	Health Care Access
	-0-
	737,000

395.18	Subd. 2.Central Office Operations

395.19	(a) Operations

395.20	Appropriations by Fund
	
395.21	General
	-0-
	558,000
	
395.22	Health Care Access
	-0-
	427,000
	
395.23 	Base Adjustment. The general fund base 
395.24 	is decreased by $482,000 in fiscal year 
395.25 	2018 and $484,000 in fiscal year 2019. The 
395.26 	health care access fund base is decreased by 
395.27 	$376,000 in fiscal year 2018 and $376,000 in 
395.28 	fiscal year 2019.

395.29	(b) Children and Families
		-0-
		132,000
	
395.30 	Base Adjustment. The general fund base is 
395.31 	decreased by $132,000 in fiscal years 2018 
395.32 	and 2019.

395.33	(c) Health Care
		-0-
		374,000
	
396.1 	Base Adjustment. The general fund base is 
396.2 	decreased by $43,000 in fiscal year 2018 and 
396.3 	$43,000 in fiscal year 2019.

396.4	(d) Continuing Care
		-0-
		1,000
	
396.5 	Base Adjustment. The general fund base is 
396.6 	increased by $1,000 in fiscal year 2018 and 
396.7 	increased by $3,000 in fiscal year 2019.

396.8	(e) Community Supports
		-0-
		74,000
	
396.9 	Base Adjustment. The general fund base 
396.10 	is increased by $469,000 in fiscal year 2018 
396.11 	and $429,000 in fiscal year 2019.

396.12	Subd. 3.Forecasted Programs

396.13	(a) Northstar Care for Children
		-0-
		-0-
	
396.14 	Base Adjustment. The general fund base is 
396.15 	increased by $8,802,000 in fiscal year 2018 
396.16 	and increased by $10,927,000 in fiscal year 
396.17 	2019.

396.18	(b) MinnesotaCare
		-0-
		33,000
	
396.19 	This appropriation is from the health care 
396.20 	access fund.

396.21	(c) Medical Assistance

396.22	Appropriations by Fund
	
396.23	General
	-0-
	5,092,000
	
396.24	Health Care Access
	-0-
	277,000

396.25
396.26	(d) Consolidated Chemical Dependency 
Treatment Fund
		-0-
		2,104,000
	
396.27 	CCDTF Transfer. Notwithstanding 
396.28 	Minnesota Statutes, section 254B.06, 
396.29 	subdivision 1, in fiscal year 2017, the 
396.30 	commissioner shall transfer $2,000,000 
396.31 	from the consolidated chemical dependency 
396.32 	treatment fund administrative account in the 
397.1 	special revenue fund to the general fund. 
397.2 	This is a onetime transfer.

397.3	Subd. 4.Grant Programs

397.4	(a) Children's Services Grants
		-0-
		800,000
	
397.5 	American Indian Child Welfare Initiative.
397.6 	$800,000 in fiscal year 2017 is for planning 
397.7 	efforts to expand the American Indian 
397.8 	Child Welfare Initiative authorized under 
397.9 	Minnesota Statutes, section 256.01, 
397.10 	subdivision 14b. Of this appropriation, 
397.11 	$400,000 is for grants to the Mille Lacs 
397.12 	Band of Ojibwe and $400,000 is for grants 
397.13 	to the Red Lake Nation. This is a onetime 
397.14 	appropriation.
397.15 	Base Adjustment. The general fund base is 
397.16 	decreased by $800,000 in fiscal year 2018 
397.17 	and $800,000 in fiscal year 2019.

397.18	(b) Child and Community Service Grants		
-0-		
1,900,000
	
397.19 	White Earth Band of Ojibwe Human 
397.20 	Services Initiative Project. $1,400,000 
397.21 	in fiscal year 2017 is for a grant to the 
397.22 	White Earth Band of Ojibwe for the direct 
397.23 	implementation and administrative costs of 
397.24 	the White Earth Human Services Initiative 
397.25 	Project authorized under Laws 2011, First 
397.26 	Special Session chapter 9, article 9, section 
397.27 	18.
397.28 	Red Lake Nation Human Services 
397.29 	Initiative Project. $500,000 in fiscal year 
397.30 	2017 is for a grant to the Red Lake Nation for 
397.31 	the direct implementation and administrative 
397.32 	costs of the Red Lake Human Services 
397.33 	Initiative Project authorized under Minnesota 
398.1 	Statutes, section 256.01, subdivision 2, 
398.2 	paragraph (a), clause (7).

398.3	(c) Child and Economic Support Grants
		-0-		
66,000
	
398.4 	Safe Harbor for Sexually Exploited Youth.
398.5 	$33,000 in fiscal year 2017 is for emergency 
398.6 	shelter and transitional and long-term 
398.7 	housing beds for sexually exploited youth 
398.8 	and youth at risk of sexual exploitation, and 
398.9 	for statewide youth outreach workers to 
398.10 	connect sexually exploited youth with shelter 
398.11 	and services. The base for this appropriation 
398.12 	is $750,000 in fiscal year 2018 and $750,000 
398.13 	in fiscal year 2019. The commissioner shall 
398.14 	not use any portion of this appropriation nor 
398.15 	of the base amounts in fiscal year 2018 and 
398.16 	fiscal year 2019 for administrative costs.
398.17 	Base Level Adjustment. The general fund 
398.18 	base is increased by $2,134,000 in fiscal year 
398.19 	2018 and $2,134,000 in fiscal year 2019.

398.20	(d) Adult Mental Health Grants
		-0-		
200,000
	
398.21 	Adult Mental Illness Crisis Housing 
398.22 	Assistance Program. The general fund 
398.23 	appropriation for the adult mental illness 
398.24 	crisis housing assistance program is 
398.25 	decreased by $300,000 in fiscal year 2017. 
398.26 	The general fund appropriation is increased 
398.27 	by $300,000 in fiscal year 2017 for expanding 
398.28 	eligibility to include persons with serious 
398.29 	mental illness under Minnesota Statutes, 
398.30 	section 245.99, subdivision 2.
398.31 	Integrated Behavioral Health Care 
398.32 	Coordination Demonstration Project.
398.33 	$200,000 in fiscal year 2017 is for a grant 
398.34 	to the Zumbro Valley Health Center. The 
398.35 	grant shall be used to continue a pilot 
399.1 	project to test an integrated behavioral 
399.2 	health care coordination model. The grant 
399.3 	recipient must report measurable outcomes 
399.4 	to the commissioner of human services 
399.5 	by December 1, 2018. This is a onetime 
399.6 	appropriation and is available until June 30, 
399.7 	2018.
399.8 	Base Adjustment. The general fund base is 
399.9 	decreased by $200,000 in fiscal year 2018 and 
399.10 	is decreased by $200,000 in fiscal year 2019.

399.11	(e) Child Mental Health Grants
		-0-
		33,000
	
399.12 	School-Linked Mental Health Grants.
399.13 	$33,000 in fiscal year 2017 is for children's 
399.14 	mental health grants under Minnesota 
399.15 	Statutes, section 245.4889, subdivision 1, 
399.16 	paragraph (b), clause (8), for current grantees 
399.17 	to expand services to school buildings, 
399.18 	school districts, or counties that do not have 
399.19 	school-linked mental health available, and 
399.20 	to provide training to grantees on the use of 
399.21 	evidence-based practices. The general fund 
399.22 	base for this appropriation is $1,450,000 in 
399.23 	fiscal year 2018 and $1,450,000 in fiscal year 
399.24 	2019. The amount in fiscal year 2019 shall 
399.25 	be awarded through a competitive process 
399.26 	open to all eligible grantees as part of a new 
399.27 	grant cycle. This appropriation does not 
399.28 	include additional administrative money.
399.29 	Base Adjustment. The general fund base is 
399.30 	increased by $1,417,000 in fiscal years 2018 
399.31 	and 2019.

399.32
399.33	(f) Chemical Dependency Treatment Support 
Grants
		-0-		
34,000
	
399.34 	Peer Specialists. $34,000 in fiscal year 
399.35 	2017 from the general fund is for grants 
400.1 	to recovery community organizations to 
400.2 	train, hire, and supervise peer specialists 
400.3 	to work with underserved populations as 
400.4 	part of the continuum of care for substance 
400.5 	use disorders. Recovery community 
400.6 	organizations located in Rochester, 
400.7 	Moorhead, and the Twin Cities metropolitan 
400.8 	area are eligible to receive grant funds. The 
400.9 	general fund base for this appropriation is 
400.10 	$725,000 in fiscal year 2018 and $725,000 in 
400.11 	fiscal year 2019.
400.12 	Base Adjustment. The general fund base is 
400.13 	increased by $691,000 in fiscal years 2018 
400.14 	and 2019.

400.15	Subd. 5.DCT State-Operated Services
 					
400.16 	Allocation of Funds. The commissioner may 
400.17 	allocate the appropriations in this subdivision 
400.18 	to ensure a safe environment at the Minnesota 
400.19 	Security Hospital and other hospitals in direct 
400.20 	care and treatment state-operated services. 
400.21 	Any reallocation of the appropriations under 
400.22 	this subdivision must be reported in the 
400.23 	report required under Minnesota Statutes, 
400.24 	section 256.01, subdivision 41.

400.25
400.26	(a) DCT State-Operated Services Mental 
Health
		1,256,000
		33,830,000
	
400.27 	Restore Funds Transferred to Minnesota 
400.28 	State-Operated Community Services. 
400.29 	$14,000,000 in fiscal year 2017 is to restore 
400.30 	funds transferred to the enterprise fund for 
400.31 	state-operated community services in fiscal 
400.32 	year 2016. This is a onetime appropriation.
400.33 	Community Behavioral Health Hospitals 
400.34 	Full Capacity Staffing. $19,678,000 in 
400.35 	fiscal year 2017 is to increase staffing to a 
401.1 	level sufficient to operate the community 
401.2 	behavioral health hospitals at full licensed 
401.3 	capacity. The base for this appropriation 
401.4 	is $25,879,000 in fiscal year 2018 and 
401.5 	$25,879,000 in fiscal year 2019. 
401.6 	Anoka-Metro Regional Treatment Center 
401.7 	Nursing Float Pool. $788,000 in fiscal 
401.8 	year 2017 is for a nursing float pool for 
401.9 	weekend coverage at the Anoka-Metro 
401.10 	Regional Treatment Center. The base for this 
401.11 	appropriation is $1,526,000 in fiscal year 
401.12 	2018 and $1,526,000 in fiscal year 2019.
401.13 	Anoka-Metro Regional Treatment Center 
401.14 	Increased Clinical Oversight. $336,000 
401.15 	in fiscal year 2017 is for increased clinical 
401.16 	oversight at the Anoka-Metro Regional 
401.17 	Treatment Center. The base for this 
401.18 	appropriation is $632,000 in fiscal year 2018 
401.19 	and $632,000 in fiscal year 2019.
401.20 	Base Adjustment. The general fund base is 
401.21 	decreased by $7,149,000 in fiscal year 2018 
401.22 	and $7,149,000 in fiscal year 2019.

401.23
401.24	(b) DCT State-Operated Services Enterprise 
Services
		-0-
		14,000,000
	
401.25 	State-Operated Community Services.
401.26 	$14,000,000 in fiscal year 2017 is for 
401.27 	the Minnesota state-operated community 
401.28 	services program. This is a onetime 
401.29 	appropriation. The commissioner must 
401.30 	transfer $14,000,000 in fiscal year 2017 to the 
401.31 	enterprise fund for Minnesota state-operated 
401.32 	community services. This is a onetime 
401.33 	transfer.
402.1 	Base Adjustment. The general fund base is 
402.2 	decreased by $14,000,000 in fiscal year 2018 
402.3 	and $14,000,000 in fiscal year 2019.

402.4
402.5	(c) DCT State-Operated Services Minnesota 
Security Hospital
		2,200,000		
10,056,000
	
402.6 	Competency Restoration Program.
402.7 	$6,754,000 in fiscal year 2017 is for the 
402.8 	development of a new residential competency 
402.9 	restoration program to be operated by 
402.10 	state-operated forensic services. The 
402.11 	commissioner shall use this appropriation to 
402.12 	make available 20 hospital beds at Anoka 
402.13 	Metro Regional Treatment Center and 
402.14 	12 secure beds at the Minnesota Security 
402.15 	Hospital. The base for this appropriation 
402.16 	is $8,423,000 in fiscal year 2018 and 
402.17 	$8,423,000 in fiscal year 2019.
402.18 	Base Adjustment. The general fund base is 
402.19 	increased by $2,490,000 in fiscal year 2018 
402.20 	and $2,490,000 in fiscal year 2019.

402.21
402.22	Subd. 6.DCT Minnesota Sex Offender 
Program
 		3,395,000
		4,669,000
	
402.23 	Base Adjustment. The general fund base 
402.24 	is increased by $788,000 in fiscal year 2018 
402.25 	and $788,000 in fiscal year 2019.

402.26	Sec. 3. COMMISSIONER OF HEALTH

402.27	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	2,214,000

402.28	Appropriations by Fund
	
402.29		2016
	2017
	
402.30	General
	-0-
	33,000
	
402.31
402.32	State Government 
Special Revenue
	-0-
	146,000
	
402.33	Health Care Access
	-0-
	2,035,000
	
402.34 	The appropriations for each purpose are 
402.35 	shown in the following subdivisions.

403.1	Subd. 2.Health Improvement

403.2	Appropriations by Fund
	
403.3	General
	-0-
	33,000
	
403.4	Health Care Access
	-0-
	2,035,000
	
403.5 	Safe Harbor for Sexually Exploited Youth.
403.6 	$33,000 in fiscal year 2017 is from the general 
403.7 	fund for trauma-informed, culturally specific 
403.8 	services for exploited youth. The base for 
403.9 	this appropriation is $750,000 in fiscal year 
403.10 	2018 and $750,000 in fiscal year 2019. 
403.11 	Neither the appropriation in fiscal year 2017 
403.12 	nor the base amounts in fiscal years 2018 and 
403.13 	2019 may be used for administration.
403.14 	Greater Minnesota Family Medicine 
403.15 	Residency. $1,035,000 in fiscal year 2017 
403.16 	is from the health care access fund for the 
403.17 	greater Minnesota family medicine residency 
403.18 	grant program under Minnesota Statutes, 
403.19 	section 144.1912. The commissioner may 
403.20 	use up to $35,000 for administration.
403.21 	Medical Education. $1,000,000 in fiscal 
403.22 	year 2017 from the health care access fund 
403.23 	is for the medical education program under 
403.24 	Minnesota Statutes, section 62J.692.
403.25 	Base Adjustments. The general fund base 
403.26 	is increased by $717,000 in fiscal year 2018 
403.27 	and $717,000 in fiscal year 2019.

403.28	Subd. 3.Health Protection
 		-0-
		146,000
	
403.29 	This appropriation is from the state 
403.30 	government special revenue fund.
403.31 	Base Adjustment. The state government 
403.32 	special revenue fund base is decreased by 
403.33 	$219,000 in fiscal year 2018 and $156,000 in 
403.34 	fiscal year 2019.

404.1	Sec. 4. HEALTH-RELATED BOARDS

404.2	Subdivision 1.Total Appropriation
 	$
	195,000
	$
	352,000
	
404.3 	This appropriation is from the state 
404.4 	government special revenue fund.

404.5	Subd. 2.Board of Dentistry
 		(850,000)
		(864,000)

404.6
404.7	Subd. 3.Board of Marriage and Family 
Therapy
 		40,000
		50,000

404.8	Subd. 4.Board of Medical Practice
 		-0-
		22,000
	
404.9 	Genetic Counselor Licensing. $22,000 in 
404.10 	fiscal year 2017 is from the state government 
404.11 	special revenue fund for genetic counselor 
404.12 	licensure activities under Minnesota Statutes, 
404.13 	chapter 147F. 

404.14	Subd. 5.Board of Pharmacy
 		115,000
		145,000

404.15	Subd. 6.Board of Physical Therapy
 		890,000
		924,000
	
404.16 	Health Professional Services Program. Of 
404.17 	this appropriation, $850,000 in fiscal year 
404.18 	2016 and $864,000 in fiscal year 2017 are 
404.19 	from the state government special revenue 
404.20 	fund for the health professional services 
404.21 	program.

404.22	Subd. 7.Board of Podiatric Medicine
 		-0-
		75,000
	
404.23 	Orthotist, Prosthetist, and Pedorthist 
404.24 	Licensing. $75,000 in fiscal year 2017 is 
404.25 	from the state government special revenue 
404.26 	fund for licensure activities under the 
404.27 	Minnesota Orthotists, Prosthetist, and 
404.28 	Pedorthist Practice Act, Minnesota Statutes, 
404.29 	chapter 153B. The base for this appropriation 
404.30 	is $112,000 in fiscal year 2018 and $112,000 
404.31 	in fiscal year 2019.
404.32 	Base Adjustment. The state government 
404.33 	special revenue fund base is increased by 
405.1 	$37,000 in fiscal year 2018 and $37,000 in 
405.2 	fiscal year 2019.

405.3
405.4
405.5	Sec. 5. OMBUDSMAN FOR MENTAL 
HEALTH AND DEVELOPMENTAL 
DISABILITIES
 	$
	-0-
	$
	250,000

405.6	Sec. 6. DEPARTMENT OF COMMERCE
 	$
	(210,000)
	$
	(213,000)

405.7 	Sec. 7. Laws 2015, chapter 71, article 14, section 4, subdivision 3, is amended to read:

405.8	Subd. 3.Board of Dentistry
 		2,192,000
		2,206,000
	
405.9 	This appropriation includes $864,000 in fiscal 
405.10 	year 2016 and $878,000 in fiscal year 2017 
405.11 	for the health professional services program.

405.12 	Sec. 8. DIRECTION TO COMMISSIONER OF MANAGEMENT AND 
405.13 	BUDGET.
 405.14 	In making determinations under Minnesota Statutes, section 295.52, subdivision 8, 
405.15 	the commissioner of management and budget in fiscal year 2017 only shall not include 
405.16 	$74,000,000 of the transfer under Minnesota Statutes, section 16A.724, subdivision 2, 
405.17 	paragraph (a), as an expenditure or transfer of the health care access fund in determining 
405.18 	the ratio of revenues to expenditures and transfers when making any determination of 
405.19 	tax rate reductions under that subdivision.

405.20 	Sec. 9. EXPIRATION OF UNCODIFIED LANGUAGE.
 405.21 	All uncodified language contained in this article expires on June 30, 2017, unless a 
405.22 	different expiration date is explicit.

405.23 	Sec. 10. EFFECTIVE DATE.
 405.24 	This article is effective the day following final enactment.

406.1 	ARTICLE 24
406.2 	TEACHERS

406.3 	Section 1. Minnesota Statutes 2014, section 122A.09, as amended by Laws 2015, 
406.4 	chapter 69, article 2, section 3, and Laws 2015, First Special Session chapter 3, article 2, 
406.5 	sections 9 to 11, is amended to read:
406.6 	122A.09 DUTIES.
406.7 		Subdivision 1.Code of ethics. The Board of Teaching must develop by rule a code 
406.8 	of ethics covering standards of professional teaching practices, including areas of ethical 
406.9 	conduct and professional performance and methods of enforcement.
406.10 		Subd. 2.Advise members of profession. The board must act in an advisory 
406.11 	capacity to members of the profession in matters of interpretation of the code of ethics.
406.12 		Subd. 3.Election of chair and officers. The board shall elect a chair and such 
406.13 	other officers as it may deem necessary.
406.14 		Subd. 4.License and rules. (a) The board must adopt rules to license public school 
406.15 	teachers and interns subject to chapter 14.
406.16 	(b) The board must require all candidates for teacher licensure to demonstrate a 
406.17 	passing score on a board-adopted skills examination in reading, writing, and mathematics, 
406.18 	as a requirement for an initial teacher licensure professional five-year teaching license, 
406.19 	except that the board may issue up to four temporary, initial professional one-year teaching 
406.20 	licenses to an otherwise qualified candidate who has not yet passed the board-adopted 
406.21 	skills exam. The board must require colleges and universities offering a board-approved 
406.22 	teacher preparation program to provide remedial assistance to persons who did not achieve 
406.23 	a qualifying score on the board-adopted skills examination, including those for whom 
406.24 	English is a second language. The requirement to pass a board-adopted reading, writing, 
406.25 	and mathematics skills examination does not apply to nonnative English speakers, as 
406.26 	verified by qualified Minnesota school district personnel or Minnesota higher education 
406.27 	faculty, who, after meeting the content and pedagogy requirements under this subdivision, 
406.28 	apply for a teaching license to provide direct instruction in their native language or world 
406.29 	language instruction under section 120B.022, subdivision 1. The Board of Teaching and 
406.30 	the entity administering the content, pedagogy, and skills examinations must allow any 
406.31 	individual who produces documentation of a disability in the form of an evaluation, 504 
406.32 	plan, or individual education program (IEP) to receive the same testing accommodations 
406.33 	on the content, pedagogy, and skills examinations that the applicant received during their 
406.34 	secondary or postsecondary education.
407.1 	(c) The board must adopt rules to approve teacher preparation programs. The board, 
407.2 	upon the request of a postsecondary student preparing for teacher licensure or a licensed 
407.3 	graduate of a teacher preparation program, shall assist in resolving a dispute between the 
407.4 	person and a postsecondary institution providing a teacher preparation program when the 
407.5 	dispute involves an institution's recommendation for licensure affecting the person or the 
407.6 	person's credentials. At the board's discretion, assistance may include the application 
407.7 	of chapter 14.
407.8 	(d) The board must provide the leadership and adopt rules for the redesign of teacher 
407.9 	education programs to implement a research based, results-oriented curriculum that 
407.10 	focuses on the skills teachers need in order to be effective. Among other components, 
407.11 	teacher preparation programs may use the Minnesota State Colleges and Universities 
407.12 	program model to provide a school-year-long student teaching program that combines 
407.13 	clinical opportunities with academic coursework and in-depth student teaching 
407.14 	experiences to offer students ongoing mentorship, coaching, and assessment, help to 
407.15 	prepare a professional development plan, and structured learning experiences. The board 
407.16 	shall implement new systems of teacher preparation program evaluation to assure program 
407.17 	effectiveness based on proficiency of graduates in demonstrating attainment of program 
407.18 	outcomes. Teacher preparation programs including alternative teacher preparation 
407.19 	programs under section 122A.245, among other programs, must include a content-specific, 
407.20 	board-approved, performance-based assessment that measures teacher candidates in three 
407.21 	areas: planning for instruction and assessment; engaging students and supporting learning; 
407.22 	and assessing student learning. The board's redesign rules must include creating flexible, 
407.23 	specialized teaching licenses, credentials, and other endorsement forms to increase 
407.24 	students' participation in language immersion programs, world language instruction, 
407.25 	career development opportunities, work-based learning, early college courses and careers, 
407.26 	career and technical programs, Montessori schools, and project and place-based learning, 
407.27 	among other career and college ready learning offerings.
407.28 	(e) The board must adopt rules requiring candidates for initialprofessional 
407.29 	five-year teaching licenses to pass an examination of general pedagogical knowledge 
407.30 	and examinations of licensure-specific teaching skills. The rules shall be effective by 
407.31 	September 1, 2001. The rules under this paragraph also must require candidates for initial 
407.32 	licenses to teach prekindergarten or elementary students to pass, as part of the examination 
407.33 	of licensure-specific teaching skills, test items assessing the candidates' knowledge, 
407.34 	skill, and ability in comprehensive, scientifically based reading instruction under section 
407.35 	122A.06, subdivision 4, and their knowledge and understanding of the foundations of 
408.1 	reading development, the development of reading comprehension, and reading assessment 
408.2 	and instruction, and their ability to integrate that knowledge and understanding.
408.3 	(f) The board must adopt rules requiring teacher educators to work directly with 
408.4 	elementary or secondary school teachers in elementary or secondary schools to obtain 
408.5 	periodic exposure to the elementary or secondary teaching environment.
408.6 	(g) The board must grant licenses to interns and to candidates for initial professional 
408.7 	five-year teaching licenses based on appropriate professional competencies that are 
408.8 	aligned with the board's licensing system and students' diverse learning needs. All teacher 
408.9 	candidates must have preparation in English language development and content instruction 
408.10 	for English learners in order to be able to effectively instruct the English learners in their 
408.11 	classrooms. The board must include these licenses in a statewide differentiated licensing 
408.12 	system that creates new leadership roles for successful experienced teachers premised on a 
408.13 	collaborative professional culture dedicated to meeting students' diverse learning needs 
408.14 	in the 21st century, recognizes the importance of cultural and linguistic competencies, 
408.15 	including the ability to teach and communicate in culturally competent and aware ways, 
408.16 	and formalizes mentoring and induction for newly licensed teachers provided through a 
408.17 	teacher support framework.
408.18 	(h) The board must design and implement an assessment system which requires a 
408.19 	candidate for an initial license and first continuing license to demonstrate the abilities 
408.20 	necessary to perform selected, representative teaching tasks at appropriate levels.
408.21 	(i) The board must receive recommendations from local committees as established 
408.22 	by the board for the renewal of teaching licenses. The board must require a licensed 
408.23 	teachers teacher who are is renewing a continuing license professional five-year teaching 
408.24 	license to include in the renewal requirements further preparation in English language 
408.25 	development and specially designed content instruction in English for English learners.
408.26 	(j) The board must grant life licenses to those who qualify according to requirements 
408.27 	established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 
408.28 	214.10. The board must not establish any expiration date for application for life licenses.
408.29 	(k) The board must adopt rules that require all licensed teachers who are renewing 
408.30 	their continuing license professional five-year teaching licenses to include in their renewal 
408.31 	requirements further preparation in the areas of using positive behavior interventions 
408.32 	and in accommodating, modifying, and adapting curricula, materials, and strategies to 
408.33 	appropriately meet the needs of individual students and ensure adequate progress toward 
408.34 	the state's graduation rule.
408.35 	(l) In adopting rules to license public school teachers who provide health-related 
408.36 	services for disabled children, the board shall adopt rules consistent with license or 
409.1 	registration requirements of the commissioner of health and the health-related boards who 
409.2 	license personnel who perform similar services outside of the school.
409.3 	(m) The board must adopt rules that require all licensed teachers who are renewing 
409.4 	their continuing license professional five-year teaching licenses to include in their renewal 
409.5 	requirements further reading preparation, consistent with section 122A.06, subdivision 
409.6 	4. The rules do not take effect until they are approved by law. Teachers who do not 
409.7 	provide direct instruction including, at least, counselors, school psychologists, school 
409.8 	nurses, school social workers, audiovisual directors and coordinators, and recreation 
409.9 	personnel are exempt from this section.
409.10 	(n) The board must adopt rules that require all licensed teachers who are renewing 
409.11 	their continuing license professional five-year teaching licenses to include in their 
409.12 	renewal requirements at least one hour of suicide prevention best practices in each 
409.13 	licensure renewal period that are based on nationally recognized evidence-based 
409.14 	programs and practices, among the continuing education credits required to renew 
409.15 	a license under this paragraph, and further preparation, first, in understanding the 
409.16 	key warning signs of early-onset mental illness in children and adolescents and then, 
409.17 	during subsequent licensure renewal periods, preparation may include providing a 
409.18 	more in-depth understanding of students' mental illness trauma, accommodations for 
409.19 	students' mental illness, parents' role in addressing students' mental illness, Fetal Alcohol 
409.20 	Spectrum Disorders, autism, the requirements of section 125A.0942 governing restrictive 
409.21 	procedures, and de-escalation methods, among other similar topics.
409.22 	(o) The board must adopt rules by January 1, 2016, to license applicants under 
409.23 	sections 122A.23 and 122A.245. The rules must permit applicants to demonstrate their 
409.24 	qualifications through the board's recognition of a teaching license from another state 
409.25 	in a similar content field, completion of a state-approved teacher preparation program, 
409.26 	teaching experience as the teacher of record in a similar licensure field, depth of content 
409.27 	knowledge, depth of content methods or general pedagogy, subject-specific professional 
409.28 	development and contribution to the field, or classroom performance as determined by 
409.29 	documented student growth on normed assessments or documented effectiveness on 
409.30 	evaluations. The rules must adopt criteria for determining a "similar content field" and 
409.31 	"similar licensure area."
409.32 		Subd. 4a.Teacher and administrator preparation and performance data; 
409.33 	report. (a) The Board of Teaching and the Board of School Administrators, in cooperation 
409.34 	with the Minnesota Association of Colleges of Teacher Education and Minnesota colleges 
409.35 	and universities offering board-adopted teacher or administrator preparation programs, 
409.36 	annually must collect and report summary data on teacher and administrator preparation 
410.1 	and performance outcomes, consistent with this subdivision. The Board of Teaching 
410.2 	and the Board of School Administrators annually by June 1 must update and post the 
410.3 	reported summary preparation and performance data on teachers and administrators from 
410.4 	the preceding school years on a Web site hosted jointly by the boards.
410.5 	(b) Publicly reported summary data on teacher preparation programs must include: 
410.6 	student entrance requirements for each Board of Teaching-approved program, including 
410.7 	grade point average for enrolling students in the preceding year; the average board-adopted 
410.8 	skills examination or ACT or SAT scores of students entering the program in the preceding 
410.9 	year; summary data on faculty qualifications, including at least the content areas of faculty 
410.10 	undergraduate and graduate degrees and their years of experience either as kindergarten 
410.11 	through grade 12 classroom teachers or school administrators; the average time resident 
410.12 	and nonresident program graduates in the preceding year needed to complete the program; 
410.13 	the current number and percent of students by program who graduated, received a standard 
410.14 	Minnesota teaching license, and were hired to teach full time in their licensure field in a 
410.15 	Minnesota district or school in the preceding year; the number of content area credits and 
410.16 	other credits by undergraduate program that students in the preceding school year needed 
410.17 	to complete to graduate; students' pass rates on skills and subject matter exams required for 
410.18 	graduation in each program and licensure area in the preceding school year; survey results 
410.19 	measuring student and graduate satisfaction with the program in the preceding school 
410.20 	year; a standard measure of the satisfaction of school principals or supervising teachers 
410.21 	with the student teachers assigned to a school or supervising teacher; and information 
410.22 	under paragraphs (d) and (e). Program reporting must be consistent with subdivision 11.
410.23 	(c) Publicly reported summary data on administrator preparation programs 
410.24 	approved by the Board of School Administrators must include: summary data on faculty 
410.25 	qualifications, including at least the content areas of faculty undergraduate and graduate 
410.26 	degrees and their years of experience either as kindergarten through grade 12 classroom 
410.27 	teachers or school administrators; the average time program graduates in the preceding 
410.28 	year needed to complete the program; the current number and percent of students who 
410.29 	graduated, received a standard Minnesota administrator license, and were employed as an 
410.30 	administrator in a Minnesota school district or school in the preceding year; the number of 
410.31 	credits by graduate program that students in the preceding school year needed to complete 
410.32 	to graduate; survey results measuring student, graduate, and employer satisfaction with 
410.33 	the program in the preceding school year; and information under paragraphs (f) and (g). 
410.34 	Program reporting must be consistent with section 122A.14, subdivision 10.
410.35 	(d) School districts annually by October 1 must report to the Board of Teaching 
410.36 	the following information for all teachers who finished the probationary period and 
411.1 	accepted a continuing contract position with the district from September 1 of the previous 
411.2 	year through August 31 of the current year: the effectiveness category or rating of the 
411.3 	teacher on the summative evaluation under section 122A.40, subdivision 8, or 122A.41, 
411.4 	subdivision 5; the licensure area in which the teacher primarily taught during the 
411.5 	three-year evaluation cycle; and the teacher preparation program preparing the teacher in 
411.6 	the teacher's primary areas of instruction and licensure.
411.7 	(e) School districts annually by October 1 must report to the Board of Teaching the 
411.8 	following information for all probationary teachers in the district who were released or 
411.9 	whose contracts were not renewed from September 1 of the previous year through August 
411.10 	31 of the current year: the licensure areas in which the probationary teacher taught; and 
411.11 	the teacher preparation program preparing the teacher in the teacher's primary areas of 
411.12 	instruction and licensure.
411.13 	(f) School districts annually by October 1 must report to the Board of School 
411.14 	Administrators the following information for all school principals and assistant principals 
411.15 	who finished the probationary period and accepted a continuing contract position with the 
411.16 	district from September 1 of the previous year through August 31 of the current year: the 
411.17 	effectiveness category or rating of the principal or assistant principal on the summative 
411.18 	evaluation under section 123B.147, subdivision 3; and the principal preparation program 
411.19 	providing instruction to the principal or assistant principal.
411.20 	(g) School districts annually by October 1 must report to the Board of School 
411.21 	Administrators all probationary school principals and assistant principals in the district 
411.22 	who were released or whose contracts were not renewed from September 1 of the previous 
411.23 	year through August 31 of the current year.
411.24 		Subd. 5.Commissioner's representative to comment on proposed rule. Prior 
411.25 	to the adoption by Before the Board of Teaching of adopts any rule which that must be 
411.26 	submitted to public hearing, a representative of the commissioner shall appear before the 
411.27 	Board of Teaching and at the hearing required pursuant to under section 14.14, subdivision 
411.28 	1, to comment on the cost and educational implications of that proposed rule.
411.29 		Subd. 6.Register of persons licensed. The executive secretary of the Board of 
411.30 	Teaching shall keep a record of the proceedings of and a register of all persons licensed 
411.31 	pursuant to the provisions of this chapter. The register must show the name, address, 
411.32 	license number and the renewal of the license. The board must on July 1, of each year 
411.33 	or as soon thereafter as is practicable, compile a list of such duly licensed teachers and 
411.34 	transmit a copy of the list to the board. A copy of the register must be available during 
411.35 	business hours at the office of the board to any interested person.
412.1 		Subd. 7.Commissioner's assistance; board money. The commissioner shall 
412.2 	provide all necessary materials and assistance for the transaction of the business of the 
412.3 	Board of Teaching and all moneys received by the Board of Teaching shall be paid into 
412.4 	the state treasury as provided by law. The expenses of administering sections 122A.01, 
412.5 	122A.05 to 122A.09, 122A.15, 122A.16, 122A.17, 122A.18, 122A.20, 122A.21, 122A.22, 
412.6 	122A.23, 122A.26, 122A.30, 122A.40, 122A.41, 122A.42, 122A.45, 122A.49, 122A.54, 
412.7 	122A.55, 122A.56, 122A.57, and 122A.58 which are incurred by the Board of Teaching 
412.8 	shall be paid for from appropriations made to the Board of Teaching.
412.9 		Subd. 8.Fraud; gross misdemeanor. A person who claims to be a licensed teacher 
412.10 	without a valid existing license issued by the board or any person who employs fraud or 
412.11 	deception in applying for or securing a license is guilty of a gross misdemeanor.
412.12 		Subd. 9.Board may adopt rules. The Board of Teaching may adopt rules subject 
412.13 	to the provisions of chapter 14 to implement sections 122A.05 to 122A.09, 122A.16, 
412.14 	122A.17, 122A.18, 122A.20, 122A.21, and 122A.23.
412.15 		Subd. 10.Variances Permissions. (a) Notwithstanding subdivision 9 and section 
412.16 	14.05, subdivision 4 14.055, the Board of Teaching may grant a variance waivers to its 
412.17 	rules upon application by a school district or a charter school for purposes of implementing 
412.18 	experimental programs in learning or management.
412.19 	(b) To enable a school district or a charter school to meet the needs of students 
412.20 	enrolled in an alternative education program and to enable licensed teachers instructing 
412.21 	those students to satisfy content area licensure requirements, the Board of Teaching 
412.22 	annually may permit a licensed teacher teaching in an alternative education program to 
412.23 	instruct students in a content area for which the teacher is not licensed, consistent with 
412.24 	paragraph (a).
412.25 	(c) A special education license variance permission issued by the Board of Teaching 
412.26 	for a primary employer's low-incidence region shall be is valid in all low-incidence regions.
412.27 	(d) The Board of Teaching may issue a one-year professional license under 
412.28 	paragraph (a), which the board may renew two times, to allow a person holding a full 
412.29 	credential from the American Montessori Society, a diploma from Association Montessori 
412.30 	Internationale, or a certificate of completion from a program accredited by the Montessori 
412.31 	Accreditation Council for Teacher Education to teach in a Montessori program operated 
412.32 	by a school district or charter school.
412.33 	(e) The Board of Teaching may grant a one-year waiver, renewable two times, 
412.34 	to allow individuals who hold a bachelor's degree from an accredited postsecondary 
412.35 	institution, demonstrate occupational competency based on at least three years of full-time 
412.36 	work experience in business or industry, and enroll and make satisfactory progress in 
413.1 	an alternative preparation program leading to certification as a career and technical 
413.2 	education instructor to teach career and technical education courses offered by a school 
413.3 	district or charter school. Consistent with this paragraph and section 136F.361, the Board 
413.4 	of Teaching must strongly encourage teacher preparation programs and institutions 
413.5 	throughout Minnesota to develop alternative pathways for certifying and licensing 
413.6 	high school career and technical education instructors and teachers, allowing such 
413.7 	candidates to meet certification and licensure standards that demonstrate their content 
413.8 	knowledge, classroom experience, and pedagogical practices and their qualifications 
413.9 	based on a combination of occupational testing, professional certification or licensure, and 
413.10 	long-standing work experience.
413.11 		Subd. 11.Teacher preparation program reporting. By December 31, 2018, and 
413.12 	annually thereafter, the Board of Teaching shall report and publish on its Web site the 
413.13 	cumulative summary results of at least three consecutive years of data reported to the board 
413.14 	under subdivision 4a, paragraph (b). Where the data are sufficient to yield statistically 
413.15 	reliable information and the results would not reveal personally identifiable information 
413.16 	about an individual teacher, the board shall report the data by teacher preparation program.

413.17 	EFFECTIVE DATE. Subdivision 4, paragraph (n), is effective the day following 
413.18 	final enactment and applies to teachers renewing their teaching licenses beginning August 
413.19 	1, 2017. Subdivision 10, paragraphs (d) and (e) are effective for the 2016-2017 through 
413.20 	2018-2019 school years.

413.21 	Sec. 2. Minnesota Statutes 2014, section 122A.16, is amended to read:
413.22 	122A.16 HIGHLY QUALIFIED TEACHER DEFINED.
413.23 	(a) A qualified teacher is one holding a valid license, under this chapter, to perform 
413.24 	the particular service for which the teacher is employed in a public school.
413.25 	(b) For the purposes of the federal No Child Left Behind Act, a highly qualified 
413.26 	teacher is one who holds a valid license under this chapter, including under section 
413.27 	122A.245, among other sections and is determined by local administrators as having 
413.28 	highly qualified status according to the approved Minnesota highly qualified plan. 
413.29 	Teachers delivering core content instruction must be deemed highly qualified at the local 
413.30 	level and reported to the state via the staff automated reporting system.

413.31 	Sec. 3. Minnesota Statutes 2014, section 122A.18, as amended by Laws 2015, First 
413.32 	Special Session chapter 3, article 2, sections 14 and 15, is amended to read:
413.33 	122A.18 BOARD TO ISSUE LICENSES.
414.1 		Subdivision 1.Authority to license. (a) The Board of Teaching must license 
414.2 	teachers, as defined in section 122A.15, subdivision 1, except for supervisory personnel, 
414.3 	as defined in section 122A.15, subdivision 2.
414.4 	(b) The Board of School Administrators must license supervisory personnel as 
414.5 	defined in section 122A.15, subdivision 2, except for athletic coaches.
414.6 	(c) Licenses under the jurisdiction of the Board of Teaching, the Board of School 
414.7 	Administrators, and the commissioner of education must be issued through the licensing 
414.8 	section of the department.
414.9 	(d) The Board of Teaching and the Department of Education must enter into a data 
414.10 	sharing agreement to share educational data at the E-12 level for the limited purpose 
414.11 	of program approval and improvement for teacher education programs. The program 
414.12 	approval process must include targeted redesign of teacher preparation programs to 
414.13 	address identified E-12 student areas of concern.
414.14 	(e) The Board of School Administrators and the Department of Education must enter 
414.15 	into a data sharing agreement to share educational data at the E-12 level for the limited 
414.16 	purpose of program approval and improvement for education administration programs. 
414.17 	The program approval process must include targeted redesign of education administration 
414.18 	preparation programs to address identified E-12 student areas of concern.
414.19 	(f) For purposes of the data sharing agreements under paragraphs (d) and (e), the 
414.20 	Board of Teaching, Board of School Administrators, and Department of Education may 
414.21 	share private data, as defined in section 13.02, subdivision 12, on teachers and school 
414.22 	administrators. The data sharing agreements must not include educational data, as defined 
414.23 	in section 13.32, subdivision 1, but may include summary data, as defined in section 
414.24 	13.02, subdivision 19, derived from educational data.
414.25 		Subd. 2.Teacher and support personnel qualifications. (a) The Board of Teaching 
414.26 	must issue licenses under its jurisdiction to persons the board finds to be qualified and 
414.27 	competent for their respective positions, including those meeting the standards adopted 
414.28 	under section 122A.09, subdivision 4, paragraph (o) (n).
414.29 	(b) The board must require a candidate for teacher licensure to demonstrate a passing 
414.30 	score on a board-adopted examination of skills in reading, writing, and mathematics, 
414.31 	before being granted an initial a professional five-year teaching license to provide direct 
414.32 	instruction to pupils in prekindergarten, elementary, secondary, or special education 
414.33 	programs, except that the board may issue up to four temporary, one-year teaching licenses 
414.34 	to an otherwise qualified candidate who has not yet passed a board-adopted skills exam. 
414.35 	At the request of the employing school district or charter school, the Board of Teaching 
414.36 	may issue a restricted an initial professional one-year teaching license to an otherwise 
415.1 	qualified teacher not passing or demonstrating a passing score on a board-adopted skills 
415.2 	examination in reading, writing, and mathematics. For purposes of this section, the 
415.3 	restricted initial professional one-year teaching license issued by the board is limited to the 
415.4 	current subject or content matter the teacher is employed to teach and limited to the district 
415.5 	or charter school requesting the restricted initial professional one-year teaching license. If 
415.6 	the board denies the request, it must provide a detailed response to the school administrator 
415.7 	as to the reasons for the denial. The board must require colleges and universities offering 
415.8 	a board approved teacher preparation program to make available upon request remedial 
415.9 	assistance that includes a formal diagnostic component to persons enrolled in their 
415.10 	institution who did not achieve a qualifying score on a board-adopted skills examination, 
415.11 	including those for whom English is a second language. The colleges and universities 
415.12 	must make available assistance in the specific academic areas of candidates' deficiency. 
415.13 	School districts may make available upon request similar, appropriate, and timely remedial 
415.14 	assistance that includes a formal diagnostic component to those persons employed by the 
415.15 	district who completed their teacher education program, who did not achieve a qualifying 
415.16 	score on a board-adopted skills examination, and who received a temporary an initial 
415.17 	professional one-year teaching license to teach in Minnesota. The Board of Teaching 
415.18 	shall report annually to the education committees of the legislature on the total number 
415.19 	of teacher candidates during the most recent school year taking a board-adopted skills 
415.20 	examination, the number who achieve a qualifying score on the examination, the number 
415.21 	who do not achieve a qualifying score on the examination, and the candidates who have 
415.22 	not passed a content or pedagogy exam, disaggregated by categories of race, ethnicity, 
415.23 	and eligibility for financial aid.
415.24 	(c) The Board of Teaching must grant continuing professional five-year teaching 
415.25 	licenses only to those persons who have met board criteria for granting a continuing that 
415.26 	license, which includes passing a board-adopted skills examination in reading, writing, and 
415.27 	mathematics, and the exceptions in section 122A.09, subdivision 4, paragraph (b), that are 
415.28 	consistent with this paragraph. The requirement to pass a board-adopted reading, writing, 
415.29 	and mathematics skills examination, does not apply to nonnative English speakers, as 
415.30 	verified by qualified Minnesota school district personnel or Minnesota higher education 
415.31 	faculty, who, after meeting the content and pedagogy requirements under this subdivision, 
415.32 	apply for a professional five-year teaching license to provide direct instruction in their 
415.33 	native language or world language instruction under section 120B.022, subdivision 1.
415.34 	(d) All colleges and universities approved by the board of teaching to prepare persons 
415.35 	for teacher licensure must include in their teacher preparation programs a common core 
415.36 	of teaching knowledge and skills to be acquired by all persons recommended for teacher 
416.1 	licensure. Among other requirements, teacher candidates must demonstrate the knowledge 
416.2 	and skills needed to provide appropriate instruction to English learners to support and 
416.3 	accelerate their academic literacy, including oral academic language, and achievement in 
416.4 	content areas in a regular classroom setting. This common core shall meet the standards 
416.5 	developed by the interstate new teacher assessment and support consortium in its 1992 
416.6 	"model standards for beginning teacher licensing and development." Amendments to 
416.7 	standards adopted under this paragraph are covered by chapter 14. The board of teaching 
416.8 	shall report annually to the education committees of the legislature on the performance 
416.9 	of teacher candidates on common core assessments of knowledge and skills under this 
416.10 	paragraph during the most recent school year.
416.11 		Subd. 2a.Reading strategies. (a) All colleges and universities approved by the 
416.12 	Board of Teaching to prepare persons for classroom teacher licensure must include in 
416.13 	their teacher preparation programs research-based best practices in reading, consistent 
416.14 	with section 122A.06, subdivision 4, that enable the licensure candidate to know how to 
416.15 	teach reading in the candidate's content areas. Teacher candidates must be instructed 
416.16 	in using students' native languages as a resource in creating effective differentiated 
416.17 	instructional strategies for English learners developing literacy skills. These colleges and 
416.18 	universities also must prepare early childhood and elementary teacher candidates for initial 
416.19 	professional five-year teaching licenses to teach prekindergarten or elementary students 
416.20 	for the assessment of reading instruction portion of the examination of licensure-specific 
416.21 	teaching skills under section 122A.09, subdivision 4, paragraph (e), covering assessment 
416.22 	of reading instruction.
416.23 	(b) Board-approved teacher preparation programs for teachers of elementary 
416.24 	education must require instruction in the application of in applying comprehensive, 
416.25 	scientifically based, and balanced reading instruction programs that:
416.26 	(1) teach students to read using foundational knowledge, practices, and strategies 
416.27 	consistent with section 122A.06, subdivision 4, so that all students will achieve continuous 
416.28 	progress in reading; and
416.29 	(2) teach specialized instruction in reading strategies, interventions, and remediations 
416.30 	that enable students of all ages and proficiency levels to become proficient readers.
416.31 	(c) Nothing in this section limits the authority of a school district to select a school's 
416.32 	reading program or curriculum.
416.33 		Subd. 2b.Reading specialist. Not later than July 1, 2002, the Board of Teaching 
416.34 	must adopt rules providing for thereading teacher licensure of teachers of reading.
416.35 		Subd. 3.Supervisory and coach qualifications; code of ethics. The commissioner 
416.36 	of education must issue licenses under its jurisdiction to persons the commissioner finds 
417.1 	to be qualified and competent for their respective positions under the rules it adopts. 
417.2 	The commissioner of education may develop, by rule, a code of ethics for supervisory 
417.3 	personnel covering standards of professional practices, including areas of ethical conduct 
417.4 	and professional performance and methods of enforcement.
417.5 		Subd. 3a.Technology strategies. All colleges and universities approved by the 
417.6 	Board of Teaching to prepare persons for classroom teacher licensure must include in their 
417.7 	teacher preparation programs the knowledge and skills teacher candidates need to deliver 
417.8 	digital and blended learning and curriculum and engage students with technology.
417.9 		Subd. 4.Expiration and renewal. (a) Each license the Department of Education 
417.10 	issues through its licensing section must bear the date of issue and the name of the 
417.11 	state-approved teacher training provider. Licenses must expire and be renewed according 
417.12 	to the respective rules the Board of Teaching, the Board of School Administrators, or the 
417.13 	commissioner of education adopts. Requirements for renewing a license must include 
417.14 	showing satisfactory evidence of successful teaching or administrative experience for 
417.15 	at least one school year during the period covered by the license in grades or subjects 
417.16 	for which the license is valid or completing such additional preparation as the Board of 
417.17 	Teaching prescribes. The Board of School Administrators shall establish requirements for 
417.18 	renewing the licenses of supervisory personnel except athletic coaches. The State Board 
417.19 	of Teaching shall establish requirements for renewing the licenses of athletic coaches.
417.20 	(b) Relicensure Applicants for license renewal who have been employed as a teacher 
417.21 	during the renewal period of their expiring license, as a condition of relicensure license 
417.22 	renewal, must present to their local continuing education and relicensure committee 
417.23 	or other local relicensure committee evidence of work that demonstrates professional 
417.24 	reflection and growth in best teaching practices, including among other things, practices in 
417.25 	meeting the varied needs of English learners, from young children to adults under section 
417.26 	124D.59, subdivisions 2 and 2a. The applicant must include a reflective statement of 
417.27 	professional accomplishment and the applicant's own assessment of professional growth 
417.28 	showing evidence of:
417.29 	(1) support for student learning;
417.30 	(2) use of best practices techniques and their applications to student learning;
417.31 	(3) collaborative work with colleagues that includes examples of collegiality such as 
417.32 	attested-to committee work, collaborative staff development programs, and professional 
417.33 	learning community work; or
417.34 	(4) continual professional development that may include (i) job-embedded or other 
417.35 	ongoing formal professional learning or (ii) for teachers employed for only part of the 
418.1 	renewal period of their expiring license, other similar professional development efforts 
418.2 	made during the relicensure period.
418.3 	The Board of Teaching must ensure that its teacher relicensing requirements also include 
418.4 	this paragraph.
418.5 	(c) The Board of Teaching shall offer alternative continuing relicensure options for 
418.6 	license renewal for teachers who are accepted into and complete the National Board for 
418.7 	Professional Teaching Standards certification process, and offer additional continuing 
418.8 	relicensure options for teachers who earn National Board for Professional Teaching 
418.9 	Standards certification. Continuing relicensure requirements for teachers who do not 
418.10 	maintain National Board for Professional Teaching Standards certification are those the 
418.11 	board prescribes, consistent with this section.
418.12 		Subd. 4a.Limited provisional licenses. The board may grant two-year provisional 
418.13 	licenses to licensure candidates in a field in which they were not previously licensed or in a 
418.14 	field in which a shortage of licensed teachers exists. A shortage is defined as an inadequate 
418.15 	supply of licensed personnel in a given licensure area as determined by the commissioner.
418.16 		Subd. 5.Effective date. Nothing contained herein shall be construed as affecting 
418.17 	the validity of a permanent certificate or license issued prior to July 1, 1969.
418.18 		Subd. 6.Human relations. The Board of Teaching and the commissioner of 
418.19 	education shall accept training programs completed through Peace Corps, VISTA, or 
418.20 	Teacher Corps in lieu of completion of completing the human relations component of the 
418.21 	training program for purposes of issuing or renewing a teaching license in education.
418.22 		Subd. 7.Limited provisional licenses. The Board of Teaching may grant 
418.23 	provisional licenses, which shall be valid for two years, in fields in which licenses were not 
418.24 	issued previously or in fields in which a shortage of licensed teachers exists. A shortage is 
418.25 	defined as a lack of or an inadequate supply of licensed personnel within a given licensure 
418.26 	area in a school district that has notified the Board of Teaching of the shortage and has 
418.27 	applied to the Board of Teaching for provisional licenses for that district's licensed staff.
418.28 		Subd. 7a.Permission to substitute teach. (a) The Board of Teaching may allow a 
418.29 	person who is enrolled in and making satisfactory progress in a board-approved teacher 
418.30 	program and who has successfully completed student teaching to be employed as a 
418.31 	short-call substitute teacher.
418.32 	(b) The Board of Teaching may issue a lifetime qualified short-call substitute 
418.33 	teaching license to a person who:
418.34 	(1) was a qualified teacher under section 122A.16 while holding a continuing 
418.35 	professional five-year teaching license issued by the board, and receives a retirement 
419.1 	annuity from the Teachers Retirement Association or the St. Paul Teachers Retirement 
419.2 	Fund Association;
419.3 	(2) holds an out-of-state teaching license and receives a retirement annuity as a 
419.4 	result of the person's teaching experience; or
419.5 	(3) held a continuing professional five-year teaching license issued by the board, 
419.6 	taught at least three school years in an accredited nonpublic school in Minnesota, and 
419.7 	receives a retirement annuity as a result of the person's teaching experience.
419.8 	A person holding a lifetime qualified short-call substitute teaching license is not required 
419.9 	to complete continuing education clock hours. A person holding this license may reapply 
419.10 	to the board for a continuing professional five-year teaching license and must again 
419.11 	complete continuing education clock hours one school year after receiving the continuing 
419.12 	professional five-year teaching license.
419.13 		Subd. 7b.Temporary limited licenses; personnel variances. (a) The Board of 
419.14 	Teaching must accept applications for a temporary limited teaching license beginning 
419.15 	July 1 of the school year for which the license is requested and must issue or deny the 
419.16 	temporary limited teaching license within 30 days of receiving the complete application.
419.17 	(b) The Board of Teaching must accept applications for a personnel variance 
419.18 	beginning July 1 of the school year for which the variance is requested and must issue or 
419.19 	deny the personnel variance within 30 days of receiving the complete application.
419.20 		Subd. 7c.Temporary military license. The Board of Teaching shall establish 
419.21 	a temporary license in accordance with section 197.4552 for teaching. The fee for a 
419.22 	temporary license under this subdivision shall be $87.90 for an online application or 
419.23 	$86.40 for a paper application.
419.24 		Subd. 8.Background checks. (a) The Board of Teaching and the commissioner 
419.25 	of education must request a criminal history background check from the superintendent 
419.26 	of the Bureau of Criminal Apprehension on all first-time teaching applicants for initial 
419.27 	licenses under their jurisdiction. An application for a license under this section must be 
419.28 	accompanied by Applicants must include with their licensure applications:
419.29 	(1) an executed criminal history consent form, including fingerprints; and
419.30 	(2) a money order or cashier's check payable to the Bureau of Criminal Apprehension 
419.31 	for the fee for conducting the criminal history background check.
419.32 	(b) The superintendent of the Bureau of Criminal Apprehension shall perform the 
419.33 	background check required under paragraph (a) by retrieving criminal history data as 
419.34 	defined in section 13.87 and shall also conduct a search of the national criminal records 
419.35 	repository. The superintendent is authorized to exchange fingerprints with the Federal 
419.36 	Bureau of Investigation for purposes of the criminal history check. The superintendent 
420.1 	shall recover the cost to the bureau of a background check through the fee charged to 
420.2 	the applicant under paragraph (a).
420.3 	(c) The Board of Teaching or the commissioner of education may issue a license 
420.4 	pending completion of a background check under this subdivision, but must notify 
420.5 	the individual that the individual's license may be revoked based on the result of the 
420.6 	background check.

420.7 	Sec. 4. Minnesota Statutes 2015 Supplement, section 122A.23, is amended to read:
420.8 	122A.23 APPLICANTS TRAINED IN OTHER STATES.
420.9 		Subdivision 1.Preparation equivalency. When a license to teach is authorized to 
420.10 	be issued to any holder of a diploma or a degree of a Minnesota state university, or of the 
420.11 	University of Minnesota, or of a liberal arts university, or a technical training institution, 
420.12 	such license may also, in the discretion of the Board of Teaching or the commissioner of 
420.13 	education, whichever has jurisdiction, be issued to any holder of a diploma or a degree of a 
420.14 	teacher training institution of equivalent rank and standing of any other state. The diploma 
420.15 	or degree must be granted by virtue of completing coursework in teacher preparation as 
420.16 	preliminary to the granting of a diploma or a degree of the same rank and class. For 
420.17 	purposes of granting a Minnesota teaching license to a person who receives a diploma or 
420.18 	degree from a state-accredited, out-of-state teacher training program leading to licensure, 
420.19 	the Board of Teaching must establish criteria and streamlined policies and procedures by 
420.20 	January 1, 2016, to recognize the experience and professional credentials of the person 
420.21 	holding the out-of-state diploma or degree and allow that person to demonstrate to the 
420.22 	board the person's qualifications for receiving a Minnesota teaching license based on 
420.23 	performance measures the board adopts by January 1, 2016, under this section.
420.24 		Subd. 2.Applicants licensed in other states. (a) Subject to the requirements 
420.25 	of sections 122A.18, subdivision 8, and 123B.03, the Board of Teaching must issue a 
420.26 	professional five-year teaching license or a temporary an initial professional one-year 
420.27 	teaching license under paragraphs (c) to (f) to an applicant who holds at least a 
420.28 	baccalaureate degree from a regionally accredited college or university and holds or 
420.29 	held an out-of-state teaching license that requires the applicant to successfully complete 
420.30 	a teacher preparation program approved by the issuing state, which includes either (1) 
420.31 	field-specific teaching methods, student teaching, or equivalent experience, or (2) at least 
420.32 	two years of teaching experience as the teacher of record in a similar licensure field area.
420.33 	(b) The Board of Teaching may issue a standard professional five-year teaching 
420.34 	license on the basis of teaching experience and examination requirements only.
421.1 	(c) The Board of Teaching must issue a professional five-year teaching license to 
421.2 	an applicant who:
421.3 	(1) successfully completed all exams and human relations preparation components 
421.4 	required by the Board of Teaching; and
421.5 	(2) holds or held an out-of-state teaching license to teach a similar content field and 
421.6 	grade levels if the scope of the out-of-state license is no more than two grade levels less 
421.7 	than a similar Minnesota license, and either (i) has completed field-specific teaching 
421.8 	methods, student teaching, or equivalent experience, or (ii) has at least two years of 
421.9 	teaching experience as the teacher of record in a similar licensure field area.
421.10 	(d) The Board of Teaching, consistent with board rules and paragraph (i), must 
421.11 	issue up to four one-year temporary initial professional one-year teaching licenses to an 
421.12 	applicant who holds or held an out-of-state teaching license to teach a similar content field 
421.13 	licensure area and grade levels, where the scope of the out-of-state license is no more 
421.14 	than two grade levels less than a similar Minnesota license, but has not successfully 
421.15 	completed all exams and human relations preparation components required by the Board 
421.16 	of Teaching. The board must issue a professional five-year teaching license to an applicant 
421.17 	who successfully completes the requirements under this paragraph.
421.18 	(e) The Board of Teaching, consistent with board rules, must issue up to four initial 
421.19 	professional one-year temporary teaching licenses to an applicant who:
421.20 	(1) successfully completed all exams and human relations preparation components 
421.21 	required by the Board of Teaching; and
421.22 	(2) holds or held an out-of-state teaching license to teach a similar content field 
421.23 	licensure area and grade levels, where the scope of the out-of-state license is no more than 
421.24 	two grade levels less than a similar Minnesota license, but has not completed field-specific 
421.25 	teaching methods or student teaching or equivalent experience.
421.26 	The applicant may complete field-specific teaching methods and student teaching 
421.27 	or equivalent experience by successfully participating in a one-year school district 
421.28 	mentorship program consistent with board-adopted standards of effective practice and 
421.29 	Minnesota graduation requirements. If no school district mentorship program is available, 
421.30 	the applicant must complete field-specific teaching methods coursework while serving 
421.31 	as a teacher of record and providing classroom instruction in the applicant's field of 
421.32 	licensure. The board must issue a professional five-year teaching license to an applicant 
421.33 	who successfully completes the requirements under this paragraph.
421.34 	(f) The Board of Teaching must issue a restricted teaching license for only in the 
421.35 	content field or grade levels specified in the out-of-state license to an applicant who:
422.1 	(1) successfully completed all exams and human relations preparation components 
422.2 	required by the Board of Teaching; and
422.3 	(2) holds or held an out-of-state teaching license where the out-of-state license is 
422.4 	more limited in the content field or grade levels than a similar Minnesota license.
422.5 	(f) The Board of Teaching must issue to an applicant with an out-of-state teaching 
422.6 	license up to four initial professional one-year teaching licenses that are restricted in 
422.7 	content or grade levels specified in the out-of-state license if the applicant's out-of-state 
422.8 	teaching license is more limited than a similar Minnesota license in content field or 
422.9 	grade levels. The Board of Teaching must issue a professional five-year teaching license 
422.10 	to an applicant who successfully completes all exams and human relations preparation 
422.11 	components required by the Board of Teaching. Any content or grade level restriction 
422.12 	placed on a license under this paragraph remains in effect.
422.13 	(g) The Board of Teaching may issue a two-year limited provisional license 
422.14 	permission to an applicant under this subdivision to teach in a shortage area, consistent 
422.15 	with section 122A.18, subdivision 4a.
422.16 	(h) The Board of Teaching may issue a license under this subdivision if the applicant 
422.17 	has attained the additional degrees, credentials, or licenses required in a particular 
422.18 	licensure field and the applicant can demonstrate competency by obtaining qualifying 
422.19 	scores on the board-adopted skills examination in reading, writing, and mathematics, and 
422.20 	on applicable board-adopted rigorous content area and pedagogy examinations under 
422.21 	section 122A.09, subdivision 4, paragraphs (a) and (e).
422.22 	(i) The Board of Teaching must require an applicant for a professional five-year 
422.23 	teaching license or a temporary an initial professional one-year teaching license under 
422.24 	this subdivision to pass a board-adopted skills examination in reading, writing, and 
422.25 	mathematics before the board issues the license unless, notwithstanding other provisions 
422.26 	of this subdivision, an applicable board-approved National Association of State Directors 
422.27 	of Teacher Education and Certification interstate reciprocity agreement exists to allow 
422.28 	fully certified teachers from other states to transfer their certification to Minnesota.
422.29 		Subd. 3.Teacher licensure agreements with adjoining states. (a) Notwithstanding 
422.30 	any other law to the contrary, the Board of Teaching must enter into a National Association 
422.31 	of State Directors of Teacher Education and Certification (NASDTEC) interstate 
422.32 	agreement and other interstate agreements for teacher licensure to allow fully certified 
422.33 	teachers from adjoining states to transfer their certification to Minnesota. The board must 
422.34 	enter into these interstate agreements only after determining that the rigor of the teacher 
422.35 	licensure or certification requirements in the adjoining state is commensurate with the 
422.36 	rigor of Minnesota's teacher licensure requirements. The board may limit an interstate 
423.1 	agreement to particular content fields or grade levels based on established priorities or 
423.2 	identified shortages. This subdivision does not apply to out-of-state applicants holding 
423.3 	only a provisional teaching license.
423.4 	(b) The Board of Teaching must work with designated authorities in adjoining states 
423.5 	to establish interstate teacher licensure agreements under this section.

423.6 	Sec. 5. Minnesota Statutes 2014, section 122A.245, as amended by Laws 2015, First 
423.7 	Special Session chapter 3, article 2, sections 19 to 21, is amended to read:
423.8 	122A.245 ALTERNATIVE TEACHER PREPARATION PROGRAM AND 
423.9 	LIMITED-TERM PRELIMINARY TEACHER LICENSE.
423.10 		Subdivision 1.Requirements. (a) To improve academic excellence, improve 
423.11 	ethnic and cultural diversity in the classroom, and close the academic achievement gap, 
423.12 	the Board of Teaching must approve qualified teacher preparation programs under this 
423.13 	section that are a means to acquire a two-year limited-term preliminary teacher license, 
423.14 	which the board may renew one time for an additional one-year term, and to prepare for 
423.15 	acquiring a standard professional five-year license. The following entities are eligible 
423.16 	to participate under this section:
423.17 	(1) a school district, charter school, or nonprofit corporation organized under chapter 
423.18 	317A for an education-related purpose that forms a partnership with a college or university 
423.19 	that has a board-approved alternative teacher preparation program; or
423.20 	(2) a school district or charter school, after consulting with a college or university 
423.21 	with a board-approved teacher preparation program, that forms a partnership with a 
423.22 	nonprofit corporation organized under chapter 317A for an education-related purpose that 
423.23 	has a board-approved teacher preparation program.
423.24 	(b) Before becoming a teacher of record, a candidate must:
423.25 	(1) have a bachelor's degree with a 3.0 or higher grade point average unless the 
423.26 	board waives the grade point average requirement based on board-adopted criteria adopted 
423.27 	by January 1, 2016;
423.28 	(2) demonstrate a passing score on a board-adopted reading, writing, and 
423.29 	mathematics skills examination under section 122A.09, subdivision 4, paragraph (b); and
423.30 	(3) obtain qualifying scores on applicable board-approved rigorous content area and 
423.31 	pedagogy examinations under section 122A.09, subdivision 4, paragraph (e).
423.32 	(c) The Board of Teaching must issue a two-year limited-term preliminary teacher
423.33 	license to a person who enrolls in an alternative teacher preparation program.
423.34 		Subd. 2.Characteristics. An alternative teacher preparation program under this 
423.35 	section must include:
424.1 	(1) a minimum 200-hour instructional phase that provides intensive preparation and 
424.2 	student teaching before the teacher candidate assumes classroom responsibilities;
424.3 	(2) a research-based and results-oriented approach focused on best teaching practices 
424.4 	to increase student proficiency and growth measured against state academic standards;
424.5 	(3) strategies to combine pedagogy and best teaching practices to better inform 
424.6 	teacher candidates' classroom instruction;
424.7 	(4) assessment, supervision, and evaluation of teacher candidates to determine 
424.8 	their specific needs throughout the program and to support their efforts to successfully 
424.9 	complete the program;
424.10 	(5) intensive, ongoing, and multiyear professional learning opportunities that 
424.11 	accelerate teacher candidates' professional growth, support student learning, and provide a 
424.12 	workplace orientation, professional staff development, and mentoring and peer review 
424.13 	focused on standards of professional practice and continuous professional growth; and
424.14 	(6) a requirement that teacher candidates demonstrate to the local site team under 
424.15 	subdivision 5 satisfactory progress toward acquiring a standard license professional 
424.16 	five-year teaching licenses from the Board of Teaching.
424.17 		Subd. 3.Program approval; disapproval. (a) The Board of Teaching must approve 
424.18 	alternative teacher preparation programs under this section based on board-adopted 
424.19 	criteria that reflect best practices for alternative teacher preparation programs, consistent 
424.20 	with this section.
424.21 	(b) The board must permit teacher candidates to demonstrate mastery of pedagogy 
424.22 	and content standards in school-based settings and through other nontraditional means. 
424.23 	"Nontraditional means" must include a portfolio of previous experiences, teaching 
424.24 	experience, educator evaluations, certifications marking the completion of education 
424.25 	training programs, and essentially equivalent demonstrations.
424.26 	(c) The board must use nontraditional criteria to determine the qualifications of 
424.27 	program instructors.
424.28 	(d) The board may permit instructors to hold a baccalaureate degree only.
424.29 	(e) If the Board of Teaching determines that a teacher preparation program under this 
424.30 	section does not meet the requirements of this section, it may revoke its approval of the 
424.31 	program after it notifies the program provider of any deficiencies and gives the program 
424.32 	provider an opportunity to remedy the deficiencies.
424.33 		Subd. 4.Employment conditions. Where applicable, teacher candidates with 
424.34 	a limited-term a preliminary teacher license under this section are members of the 
424.35 	local employee organization representing teachers and subject to the terms of the local 
424.36 	collective bargaining agreement between the exclusive representative of the teachers and 
425.1 	the school board. A collective bargaining agreement between a school board and the 
425.2 	exclusive representative of the teachers must not prevent or restrict or otherwise interfere 
425.3 	with a school district's ability to employ a teacher prepared under this section.
425.4 		Subd. 5.Approval for standard professional five-year license. A school board 
425.5 	or its designee must appoint members to a local site team that includes teachers, school 
425.6 	administrators, and postsecondary faculty under subdivision 1, paragraph (a), clause 
425.7 	(1), or staff of a participating nonprofit corporation under subdivision 1, paragraph (a), 
425.8 	clause (2), to evaluate the performance of the teacher candidate. The evaluation must be 
425.9 	consistent with board-adopted performance measures, use the Minnesota state standards 
425.10 	of effective practice and subject matter content standards for teachers established in 
425.11 	Minnesota Rules, and include a report to the board recommending whether or not to issue 
425.12 	the teacher candidate a standard professional five-year teaching license.
425.13 		Subd. 6.Applicants trained in other states. A person who successfully completes 
425.14 	another state's alternative teacher preparation program, consistent with section 122A.23, 
425.15 	subdivision 1, may apply to the Board of Teaching for a standard an initial professional 
425.16 	one-year teaching license under subdivision 7 or a professional five-year teaching license.
425.17 		Subd. 7.Standard Professional five-year license. The Board of Teaching must 
425.18 	issue a standard professional five-year teaching license to an otherwise qualified teacher 
425.19 	candidate under this section who successfully performs throughout a program under this 
425.20 	section, obtains qualifying scores on applicable board-adopted rigorous skills, pedagogy, 
425.21 	and content area examinations under section 122A.09, subdivision 4, paragraphs (a) and 
425.22 	(e), and is recommended for licensure under subdivision 5 or successfully demonstrates to 
425.23 	the board qualifications for licensure under subdivision 6.
425.24 		Subd. 8.Highly Qualified teacher. A person holding a valid limited-term license 
425.25 	under this section is a highly qualified teacher and the teacher of record under section 
425.26 	122A.16.
425.27 		Subd. 9.Exchange of best practices. By July 31 in an even-numbered year, 
425.28 	a program participant and approved alternative preparation program providers, the 
425.29 	Minnesota State Colleges and Universities, the University of Minnesota, the Minnesota 
425.30 	Private College Council, and the Department of Education must exchange information 
425.31 	about best practices and educational innovations.
425.32 		Subd. 10.Reports. The Board of Teaching must submit an interim report on the 
425.33 	efficacy of this program to the policy and finance committees of the legislature with 
425.34 	jurisdiction over kindergarten through grade 12 education by February 15, 2013, and a 
425.35 	final report by February 15, 2015.

426.1 	Sec. 6. Minnesota Statutes 2015 Supplement, section 122A.40, subdivision 8, is 
426.2 	amended to read:
426.3 		Subd. 8.Development, evaluation, and peer coaching for continuing contract 
426.4 	teachers. (a) To improve student learning and success, a school board and an exclusive 
426.5 	representative of the teachers in the district, consistent with paragraph (b), may develop 
426.6 	a teacher evaluation and peer review process for probationary and continuing contract 
426.7 	teachers through joint agreement. If a school board and the exclusive representative of the 
426.8 	teachers do not agree to an annual teacher evaluation and peer review process, then the 
426.9 	school board and the exclusive representative of the teachers must implement the state 
426.10 	teacher evaluation plan under paragraph (c). The process must include having trained 
426.11 	observers serve as peer coaches or having teachers participate in professional learning 
426.12 	communities, consistent with paragraph (b).
426.13 	(b) To develop, improve, and support qualified teachers and effective teaching 
426.14 	practices and, improve student learning and success, and provide all enrolled students in 
426.15 	a district or school with improved and equitable access to more effective and diverse 
426.16 	teachers, the annual evaluation process for teachers:
426.17 	(1) must, for probationary teachers, provide for all evaluations required under 
426.18 	subdivision 5;
426.19 	(2) must establish a three-year professional review cycle for each teacher that 
426.20 	includes an individual growth and development plan, a peer review process, and at least 
426.21 	one summative evaluation performed by a qualified and trained evaluator such as a school 
426.22 	administrator. For the years when a tenured teacher is not evaluated by a qualified and 
426.23 	trained evaluator, the teacher must be evaluated by a peer review;
426.24 	(3) must be based on professional teaching standards established in rule;
426.25 	(4) must coordinate staff development activities under sections 122A.60 and 
426.26 	122A.61 with this evaluation process and teachers' evaluation outcomes;
426.27 	(5) may provide time during the school day and school year for peer coaching and 
426.28 	teacher collaboration;
426.29 	(6) may include job-embedded learning opportunities such as professional learning 
426.30 	communities;
426.31 	(7) may include mentoring and induction programs for teachers, including teachers 
426.32 	who are members of populations underrepresented among the licensed teachers in 
426.33 	the district or school and who reflect the diversity of students under section 120B.35, 
426.34 	subdivision 3, paragraph (b), clause (2), who are enrolled in the district or school;
426.35 	(8) must include an option for teachers to develop and present a portfolio 
426.36 	demonstrating evidence of reflection and professional growth, consistent with section 
427.1 	122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment 
427.2 	based on student work samples and examples of teachers' work, which may include video 
427.3 	among other activities for the summative evaluation;
427.4 	(9) must use data from valid and reliable assessments aligned to state and local 
427.5 	academic standards and must use state and local measures of student growth and literacy 
427.6 	that may include value-added models or student learning goals to determine 35 percent of 
427.7 	teacher evaluation results;
427.8 	(10) must use longitudinal data on student engagement and connection, and other 
427.9 	student outcome measures explicitly aligned with the elements of curriculum for which 
427.10 	teachers are responsible, including academic literacy, oral academic language, and 
427.11 	achievement of content areas of English learners;
427.12 	(11) must require qualified and trained evaluators such as school administrators to 
427.13 	perform summative evaluations and ensure school districts and charter schools provide for 
427.14 	effective evaluator training specific to teacher development and evaluation;
427.15 	(12) must give teachers not meeting professional teaching standards under clauses 
427.16 	(3) through (11) support to improve through a teacher improvement process that includes 
427.17 	established goals and timelines; and
427.18 	(13) must discipline a teacher for not making adequate progress in the teacher 
427.19 	improvement process under clause (12) that may include a last chance warning, 
427.20 	termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 
427.21 	other discipline a school administrator determines is appropriate.
427.22 	Data on individual teachers generated under this subdivision are personnel data 
427.23 	under section 13.43. The observation and interview notes of peer coaches may only be 
427.24 	disclosed to other school officials with the consent of the teacher being coached.
427.25 	(c) The department, in consultation with parents who may represent parent 
427.26 	organizations and teacher and administrator representatives appointed by their respective 
427.27 	organizations, representing the Board of Teaching, the Minnesota Association of School 
427.28 	Administrators, the Minnesota School Boards Association, the Minnesota Elementary 
427.29 	and Secondary Principals Associations, Education Minnesota, and representatives of 
427.30 	the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 
427.31 	Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 
427.32 	in teacher evaluation, must create and publish a teacher evaluation process that complies 
427.33 	with the requirements in paragraph (b) and applies to all teachers under this section and 
427.34 	section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher 
427.35 	evaluation and peer review process. The teacher evaluation process created under this 
428.1 	subdivision does not create additional due process rights for probationary teachers under 
428.2 	subdivision 5.
428.3 	(d) Consistent with the measures of teacher effectiveness under this subdivision:
428.4 	(1) for students in kindergarten through grade 4, a school administrator must not 
428.5 	place or approve the placement of a student in the classroom of a teacher who is in the 
428.6 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
428.7 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
428.8 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
428.9 	teaches that grade; and
428.10 	(2) for students in grades 5 through 12, a school administrator must not place 
428.11 	or approve the placement of a student in the classroom of a teacher who is in the 
428.12 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
428.13 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
428.14 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
428.15 	teaches that subject area and grade.
428.16 	All data created and used under this paragraph retains its classification under chapter 13.

428.17 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
428.18 	later.

428.19 	Sec. 7. Minnesota Statutes 2015 Supplement, section 122A.41, subdivision 5, is 
428.20 	amended to read:
428.21 		Subd. 5.Development, evaluation, and peer coaching for continuing contract 
428.22 	teachers. (a) To improve student learning and success, a school board and an exclusive 
428.23 	representative of the teachers in the district, consistent with paragraph (b), may develop an 
428.24 	annual teacher evaluation and peer review process for probationary and nonprobationary 
428.25 	teachers through joint agreement. If a school board and the exclusive representative of 
428.26 	the teachers in the district do not agree to an annual teacher evaluation and peer review 
428.27 	process, then the school board and the exclusive representative of the teachers must 
428.28 	implement the state teacher evaluation plan developed under paragraph (c). The process 
428.29 	must include having trained observers serve as peer coaches or having teachers participate 
428.30 	in professional learning communities, consistent with paragraph (b).
428.31 	(b) To develop, improve, and support qualified teachers and effective teaching 
428.32 	practices and improve student learning and success, and provide all enrolled students in 
428.33 	a district or school with improved and equitable access to more effective and diverse 
428.34 	teachers, the annual evaluation process for teachers:
429.1 	(1) must, for probationary teachers, provide for all evaluations required under 
429.2 	subdivision 2;
429.3 	(2) must establish a three-year professional review cycle for each teacher that 
429.4 	includes an individual growth and development plan, a peer review process, and at least 
429.5 	one summative evaluation performed by a qualified and trained evaluator such as a school 
429.6 	administrator;
429.7 	(3) must be based on professional teaching standards established in rule;
429.8 	(4) must coordinate staff development activities under sections 122A.60 and 
429.9 	122A.61 with this evaluation process and teachers' evaluation outcomes;
429.10 	(5) may provide time during the school day and school year for peer coaching and 
429.11 	teacher collaboration;
429.12 	(6) may include job-embedded learning opportunities such as professional learning 
429.13 	communities;
429.14 	(7) may include mentoring and induction programs for teachers, including teachers 
429.15 	who are members of populations underrepresented among the licensed teachers in 
429.16 	the district or school and who reflect the diversity of students under section 120B.35, 
429.17 	subdivision 3, paragraph (b), clause (2), who are enrolled in the district or school;
429.18 	(8) must include an option for teachers to develop and present a portfolio 
429.19 	demonstrating evidence of reflection and professional growth, consistent with section 
429.20 	122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment 
429.21 	based on student work samples and examples of teachers' work, which may include video 
429.22 	among other activities for the summative evaluation;
429.23 	(9) must use data from valid and reliable assessments aligned to state and local 
429.24 	academic standards and must use state and local measures of student growth and literacy 
429.25 	that may include value-added models or student learning goals to determine 35 percent of 
429.26 	teacher evaluation results;
429.27 	(10) must use longitudinal data on student engagement and connection and other 
429.28 	student outcome measures explicitly aligned with the elements of curriculum for which 
429.29 	teachers are responsible, including academic literacy, oral academic language, and 
429.30 	achievement of English learners;
429.31 	(11) must require qualified and trained evaluators such as school administrators to 
429.32 	perform summative evaluations and ensure school districts and charter schools provide for 
429.33 	effective evaluator training specific to teacher development and evaluation;
429.34 	(12) must give teachers not meeting professional teaching standards under clauses 
429.35 	(3) through (11) support to improve through a teacher improvement process that includes 
429.36 	established goals and timelines; and
430.1 	(13) must discipline a teacher for not making adequate progress in the teacher 
430.2 	improvement process under clause (12) that may include a last chance warning, 
430.3 	termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or 
430.4 	other discipline a school administrator determines is appropriate.
430.5 	Data on individual teachers generated under this subdivision are personnel data 
430.6 	under section 13.43. The observation and interview notes of peer coaches may only be 
430.7 	disclosed to other school officials with the consent of the teacher being coached.
430.8 	(c) The department, in consultation with parents who may represent parent 
430.9 	organizations and teacher and administrator representatives appointed by their respective 
430.10 	organizations, representing the Board of Teaching, the Minnesota Association of School 
430.11 	Administrators, the Minnesota School Boards Association, the Minnesota Elementary 
430.12 	and Secondary Principals Associations, Education Minnesota, and representatives of 
430.13 	the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota 
430.14 	Chamber of Commerce, and Minnesota postsecondary institutions with research expertise 
430.15 	in teacher evaluation, must create and publish a teacher evaluation process that complies 
430.16 	with the requirements in paragraph (b) and applies to all teachers under this section and 
430.17 	section 122A.40 for whom no agreement exists under paragraph (a) for an annual teacher 
430.18 	evaluation and peer review process. The teacher evaluation process created under this 
430.19 	subdivision does not create additional due process rights for probationary teachers under 
430.20 	subdivision 2.
430.21 	(d) Consistent with the measures of teacher effectiveness under this subdivision:
430.22 	(1) for students in kindergarten through grade 4, a school administrator must not 
430.23 	place or approve the placement of a student in the classroom of a teacher who is in the 
430.24 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
430.25 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
430.26 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
430.27 	teaches that grade; and
430.28 	(2) for students in grades 5 through 12, a school administrator must not place 
430.29 	or approve the placement of a student in the classroom of a teacher who is in the 
430.30 	improvement process referenced in paragraph (b), clause (12), or has not had a summative 
430.31 	evaluation if, in the prior year, that student was in the classroom of a teacher who received 
430.32 	discipline pursuant to paragraph (b), clause (13), unless no other teacher at the school 
430.33 	teaches that subject area and grade.
430.34 	All data created and used under this paragraph retains its classification under chapter 13.

431.1 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
431.2 	later.

431.3 	Sec. 8. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 1, is 
431.4 	amended to read:
431.5 		Subdivision 1.Restructured pay system. A restructured alternative teacher 
431.6 	professional pay system is established under subdivision 2 to provide incentives to 
431.7 	encourage teachers to improve their knowledge and instructional skills in order to improve 
431.8 	student learning and for school districts, intermediate school districts, cooperative units, 
431.9 	as defined in section 123A.24, subdivision 2, and charter schools to recruit and retain 
431.10 	highly qualified teachers, encourage highly qualified teachers to undertake challenging 
431.11 	assignments, and support teachers' roles in improving students' educational achievement.

431.12 	Sec. 9. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 2, is 
431.13 	amended to read:
431.14 		Subd. 2.Alternative teacher professional pay system. (a) To participate in this 
431.15 	program, a school district, an intermediate school district consistent with paragraph (d), a 
431.16 	school site, or a charter school must have an educational improvement plan under section 
431.17 	122A.413 a world's best workforce plan under section 120B.11 and an alternative teacher 
431.18 	professional pay system agreement under paragraph (b). A charter school participant also 
431.19 	must comply with subdivision 2a.
431.20 	(b) The alternative teacher professional pay system agreement must:
431.21 	(1) describe how teachers can achieve career advancement and additional 
431.22 	compensation;
431.23 	(2) describe how the school district, intermediate school district, school site, or 
431.24 	charter school will provide teachers with career advancement options that allow teachers 
431.25 	to retain primary roles in student instruction and facilitate site-focused professional 
431.26 	development that helps other teachers improve their skills;
431.27 	(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation 
431.28 	paid before implementing the pay system from being reduced as a result of participating in 
431.29 	this system, base at least 60 percent of any compensation increase on teacher performance 
431.30 	using:
431.31 	(i) schoolwide student achievement gains under section 120B.35 or locally selected 
431.32 	standardized assessment outcomes, or both;
431.33 	(ii) measures of student growth and literacy that may include value-added models 
431.34 	or student learning goals, consistent with section 122A.40, subdivision 8, paragraph 
432.1 	(b), clause (9), or 122A.41, subdivision 5, paragraph (b), clause (9), and other measures 
432.2 	that include the academic literacy, oral academic language, and achievement of English 
432.3 	learners under section 122A.40, subdivision 8, paragraph (b), clause (10), or 122A.41, 
432.4 	subdivision 5, paragraph (b), clause (10); and
432.5 	(iii) an objective evaluation program under section 122A.40, subdivision 8, 
432.6 	paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2);
432.7 	(4) provide for participation in job-embedded learning opportunities such as 
432.8 	professional learning communities to improve instructional skills and learning that are 
432.9 	aligned with student needs under section 122A.413 120B.11, consistent with the staff 
432.10 	development plan under section 122A.60 and led during the school day by trained teacher 
432.11 	leaders such as master or mentor teachers;
432.12 	(5) allow any teacher in a participating school district, intermediate school district, 
432.13 	school site, or charter school that implements an alternative pay system to participate in 
432.14 	that system without any quota or other limit; and
432.15 	(6) encourage collaboration rather than competition among teachers.
432.16 	(c) The alternative teacher professional pay system may:
432.17 	(1) include a hiring bonus or other added compensation for teachers who are 
432.18 	identified as effective or highly effective under the local teacher professional review 
432.19 	cycle and work in a hard-to-fill position or in a hard-to-staff school such as a school with 
432.20 	a majority of students whose families meet federal poverty guidelines, a geographically 
432.21 	isolated school, or a school identified by the state as eligible for targeted programs or 
432.22 	services for its students; and
432.23 	(2) include incentives for teachers to obtain a master's degree or other advanced 
432.24 	certification in their content field of licensure, pursue the training or education necessary 
432.25 	to obtain an additional licensure in shortage areas identified by the district or charter 
432.26 	school, or help fund a "grow your own" new teacher initiative.
432.27 	(d) An intermediate school district under this subdivision must demonstrate in a 
432.28 	form and manner determined by the commissioner that it uses the aid it receives under this 
432.29 	section for activities identified in the alternative teacher professional pay system agreement.

432.30 	Sec. 10. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 2b, 
432.31 	is amended to read:
432.32 		Subd. 2b.Approval process. (a) Consistent with the requirements of this section 
432.33 	and sections 122A.413 and section122A.415, the department must prepare and transmit 
432.34 	to interested school districts, intermediate school districts, cooperatives, school sites, 
432.35 	and charter schools a standard form for applying to participate in the alternative teacher 
433.1 	professional pay system. The commissioner annually must establish three dates as 
433.2 	deadlines by which interested applicants must submit an application to the commissioner 
433.3 	under this section. An interested school district, intermediate school district, cooperative, 
433.4 	school site, or charter school must submit to the commissioner a completed application 
433.5 	executed by the district superintendent and the exclusive bargaining representative of the 
433.6 	teachers if the applicant is a school district, intermediate school district, or school site, or 
433.7 	executed by the charter school board of directors if the applicant is a charter school or 
433.8 	executed by the governing board if the applicant is a cooperative unit. The application 
433.9 	must include the proposed alternative teacher professional pay system agreement under 
433.10 	subdivision 2. The department must review a completed application within 30 days of 
433.11 	the most recent application deadline and recommend to the commissioner whether to 
433.12 	approve or disapprove the application. The commissioner must approve applications 
433.13 	on a first-come, first-served basis. The applicant's alternative teacher professional pay 
433.14 	system agreement must be legally binding on the applicant and the collective bargaining 
433.15 	representative before the applicant receives alternative compensation revenue. The 
433.16 	commissioner must approve or disapprove an application based on the requirements 
433.17 	under subdivisions 2 and 2a.
433.18 	(b) If the commissioner disapproves an application, the commissioner must give the 
433.19 	applicant timely notice of the specific reasons in detail for disapproving the application. 
433.20 	The applicant may revise and resubmit its application and related documents to the 
433.21 	commissioner within 30 days of receiving notice of the commissioner's disapproval and 
433.22 	the commissioner must approve or disapprove the revised application, consistent with this 
433.23 	subdivision. Applications that are revised and then approved are considered submitted on 
433.24 	the date the applicant initially submitted the application.

433.25 	Sec. 11. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 3, 
433.26 	is amended to read:
433.27 		Subd. 3.Report; continued funding. (a) Participating districts, intermediate school 
433.28 	districts, cooperatives, school sites, and charter schools must report on the implementation 
433.29 	and effectiveness of the alternative teacher professional pay system, particularly 
433.30 	addressing each requirement under subdivision 2 and make annual recommendations by 
433.31 	June 15 to their school boards. The school board, board of directors, or governing board 
433.32 	shall transmit a copy of the report with a summary of the findings and recommendations 
433.33 	of the district, intermediate school district, cooperative, school site, or charter school to 
433.34 	the commissioner in the form and manner determined by the commissioner.
434.1 	(b) If the commissioner determines that a school district, intermediate school district, 
434.2 	cooperative, school site, or charter school that receives alternative teacher compensation 
434.3 	revenue is not complying with the requirements of this section, the commissioner 
434.4 	may withhold funding from that participant. Before making the determination, the 
434.5 	commissioner must notify the participant of any deficiencies and provide the participant 
434.6 	an opportunity to comply. A district must include the report required under paragraph (a) 
434.7 	as part of the world's best workforce report under section 120B.11, subdivision 5.

434.8 	Sec. 12. Minnesota Statutes 2014, section 122A.4144, is amended to read:
434.9 	122A.4144 SUPPLEMENTAL AGREEMENTS; ALTERNATIVE TEACHER 
434.10 	PAY.
434.11 	Notwithstanding section 179A.20 or other law to the contrary, a school board and 
434.12 	the exclusive representative of the teachers may agree to reopen a collective bargaining 
434.13 	agreement for the purpose of entering into an alternative teacher professional pay system 
434.14 	agreement under sections 122A.413,122A.414, and 122A.415. Negotiations for a contract 
434.15 	reopened under this section must be limited to issues related to the alternative teacher 
434.16 	professional pay system.

434.17 	Sec. 13. Minnesota Statutes 2015 Supplement, section 122A.415, subdivision 4, 
434.18 	is amended to read:
434.19 		Subd. 4.Basic alternative teacher compensation aid. (a) The basic alternative 
434.20 	teacher compensation aid for a school with a plan approved under section 122A.414, 
434.21 	subdivision 2b, equals 65 percent of the alternative teacher compensation revenue under 
434.22 	subdivision 1. The basic alternative teacher compensation aid for a charter school with a 
434.23 	plan approved under section 122A.414, subdivisions 2a and 2b, equals $260 times the 
434.24 	number of pupils enrolled in the school on October 1 of the previous year, or on October 
434.25 	1 of the current year for a charter school in the first year of operation, times the ratio of 
434.26 	the sum of the alternative teacher compensation aid and alternative teacher compensation 
434.27 	levy for all participating school districts to the maximum alternative teacher compensation 
434.28 	revenue for those districts under subdivision 1.
434.29 	(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative 
434.30 	teacher compensation aid entitlement must not exceed $75,840,000 for fiscal year 2016 
434.31 	and $88,118,000 for fiscal year 2017 and later. The commissioner must limit the amount 
434.32 	of alternative teacher compensation aid approved under this section so as not to exceed 
434.33 	these limits by not approving new participants or by prorating the aid among participating 
434.34 	districts, intermediate school districts, school sites, and charter schools. The commissioner 
435.1 	may also reallocate a portion of the allowable aid for the biennium from the second year 
435.2 	to the first year to meet the needs of approved participants. Basic alternative teacher 
435.3 	compensation aid for an intermediate district or other cooperative unit equals $3,000 times 
435.4 	the number of licensed teachers employed by the intermediate district or cooperative unit 
435.5 	on October 1 of the previous school year.

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

435.7 	Sec. 14. Minnesota Statutes 2014, section 122A.416, is amended to read:
435.8 	122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE 
435.9 	FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT 
435.10 	INTEGRATION COLLABORATIVES.
435.11 	Notwithstanding sections 122A.413,122A.414, 122A.415, and 126C.10, 
435.12 	multidistrict integration collaboratives and the Perpich Center for Arts Education are 
435.13 	eligible to receive alternative teacher compensation revenue as if they were intermediate 
435.14 	school districts. To qualify for alternative teacher compensation revenue, a multidistrict 
435.15 	integration collaborative or the Perpich Center for Arts Education must meet all of the 
435.16 	requirements of sections 122A.413,122A.414, and 122A.415 that apply to intermediate 
435.17 	school districts, must report its enrollment as of October 1 of each year to the department, 
435.18 	and must annually report its expenditures for the alternative teacher professional pay 
435.19 	system consistent with the uniform financial accounting and reporting standards to the 
435.20 	department by November 30 of each year.

435.21 	Sec. 15. Minnesota Statutes 2014, section 122A.42, is amended to read:
435.22 	122A.42 GENERAL CONTROL OF SCHOOLS.
435.23 	(a) The teacher of record shall have the general control and government of the 
435.24 	school and classroom. When more than one teacher is employed in any district, one of the 
435.25 	teachers may be designated by the board as principal and shall have the general control 
435.26 	and supervision of the schools of the district, subject to the general supervisory control 
435.27 	of the board and other officers.
435.28 	(b) Consistent with paragraph (a), the teacher may remove students from class under 
435.29 	section 121A.61, subdivision 2, for violent or disruptive conduct.

435.30 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
435.31 	later.

436.1 	Sec. 16. Minnesota Statutes 2015 Supplement, section 122A.60, subdivision 4, is 
436.2 	amended to read:
436.3 		Subd. 4.Staff development report. (a) By October 15 of each year, The district 
436.4 	and site staff development committees shall write and submit a report of staff development 
436.5 	activities and expenditures for the previous year, in the form and manner determined by 
436.6 	the commissioner. The report, signed by the district superintendent and staff development 
436.7 	chair, must include assessment and evaluation data indicating progress toward district and 
436.8 	site staff development goals based on teaching and learning outcomes, including the 
436.9 	percentage of teachers and other staff involved in instruction who participate in effective 
436.10 	staff development activities under subdivision 3 as part of the district's world's best 
436.11 	workforce report under section 120B.11, subdivision 5.
436.12 	(b) The report must break down expenditures for:
436.13 	(1) curriculum development and curriculum training programs; and
436.14 	(2) staff development training models, workshops, and conferences, and the cost of 
436.15 	releasing teachers or providing substitute teachers for staff development purposes.
436.16 	The report also must indicate whether the expenditures were incurred at the district 
436.17 	level or the school site level, and whether the school site expenditures were made possible 
436.18 	by grants to school sites that demonstrate exemplary use of allocated staff development 
436.19 	revenue. These expenditures must be reported using the uniform financial and accounting 
436.20 	and reporting standards.
436.21 	(c) The commissioner shall report the staff development progress and expenditure 
436.22 	data to the house of representatives and senate committees having jurisdiction over 
436.23 	education by February 15 each year.

436.24 	Sec. 17. Minnesota Statutes 2014, section 122A.63, subdivision 1, is amended to read:
436.25 		Subdivision 1.Establishment. (a) A grant program is established to assist American 
436.26 	Indian people to become teachers and to provide additional education for American Indian 
436.27 	teachers. The commissioner may award a joint grant to each of the following:
436.28 	(1) the Duluth campus of the University of Minnesota and Independent School 
436.29 	District No. 709, Duluth;
436.30 	(2) Bemidji State University and Independent School District No. 38, Red Lake;
436.31 	(3) Moorhead State University and one of the school districts located within the 
436.32 	White Earth Reservation; and
436.33 	(4) Augsburg College, Independent School District No. 625, St. Paul, and Special 
436.34 	School District No. 1, Minneapolis.
437.1 	(b) If additional funds are available, the commissioner may award additional joint 
437.2 	grants to other postsecondary institutions and school districts.

437.3 	Sec. 18. Minnesota Statutes 2014, section 122A.72, subdivision 5, is amended to read:
437.4 		Subd. 5.Center functions. (a) A teacher center shall perform functions according 
437.5 	to this subdivision. The center shall assist teachers, diagnose learning needs, experiment 
437.6 	with the use of multiple instructional approaches, assess pupil outcomes, assess staff 
437.7 	development needs and plans, and teach school personnel about effective pedagogical 
437.8 	approaches. The center shall develop and produce curricula and curricular materials 
437.9 	designed to meet the educational needs of pupils being served, by applying educational 
437.10 	research and new and improved methods, practices, and techniques. The center shall 
437.11 	provide programs to improve the skills of teachers to meet the special educational needs of 
437.12 	pupils. The center shall provide programs to familiarize teachers with developments in 
437.13 	curriculum formulation and educational research, including how research can be used to 
437.14 	improve teaching skills. The center shall facilitate sharing of resources, ideas, methods, 
437.15 	and approaches directly related to classroom instruction and improve teachers' familiarity 
437.16 	with current teaching materials and products for use in their classrooms. The center shall 
437.17 	provide in-service programs.
437.18 	(b) Each teacher center must provide a professional development program to train 
437.19 	interested and highly qualified elementary, middle, and secondary teachers, selected by the 
437.20 	employing school district, to assist other teachers in that district with mathematics and 
437.21 	science curriculum, standards, and instruction so that all teachers have access to:
437.22 	(1) high quality professional development programs in mathematics and science that 
437.23 	address curriculum, instructional methods, alignment of standards, and performance 
437.24 	measurements, enhance teacher and student learning, and support state mathematics and 
437.25 	science standards; and
437.26 	(2) research-based mathematics and science programs and instructional models 
437.27 	premised on best practices that inspire teachers and students and have practical classroom 
437.28 	application.

437.29 	Sec. 19. Minnesota Statutes 2014, section 124D.861, as amended by Laws 2015, 
437.30 	chapter 21, article 1, section 20, is amended to read:
437.31 	124D.861 ACHIEVEMENT AND INTEGRATION FOR MINNESOTA.
437.32 		Subdivision 1.Program to close the academic achievement and opportunity gap; 
437.33 	revenue uses. (a) The "Achievement and Integration for Minnesota" program is established 
437.34 	to pursue racial and economic integration and increase student academic achievement, 
438.1 	create equitable educational opportunities, and reduce academic disparities based on 
438.2 	students' diverse racial, ethnic, and economic backgrounds in Minnesota public schools.
438.3 	(b) For purposes of this section and section 124D.862, "eligible district" means a 
438.4 	district required to submit a plan to the commissioner under Minnesota Rules governing 
438.5 	school desegregation and integration, or be a member of a multidistrict integration 
438.6 	collaborative that files a plan with the commissioner.
438.7 	(c) Eligible districts must use the revenue under section 124D.862 to pursue 
438.8 	academic achievement and racial and economic integration through: 
438.9 	(1) integrated learning environments that give students improved and equitable 
438.10 	access to effective and more diverse teachers, prepare all students to be effective citizens,
438.11 	and enhance social cohesion; 
438.12 	(2) policies and curricula and trained instructors, administrators, school counselors, 
438.13 	and other advocates to support and enhance integrated learning environments under 
438.14 	this section, including through magnet schools, innovative, research-based instruction, 
438.15 	differentiated instruction, improved and equitable access to effective and diverse teachers, 
438.16 	and targeted interventions to improve achievement; and 
438.17 	(3) rigorous career and college readiness programs and effective and more diverse 
438.18 	instructors for underserved student populations, consistent with section 120B.30, 
438.19 	subdivision 1; integrated learning environments to increase student academic achievement; 
438.20 	cultural fluency, competency, and interaction; graduation and educational attainment rates; 
438.21 	and parent involvement.
438.22 	(d) Consistent with paragraph (c), eligible districts may adopt policies to increase the 
438.23 	diversity of district teachers and administrators using the revenue under section 124D.862 
438.24 	for recruitment, retention, and hiring incentives or additional compensation.
438.25 		Subd. 2.Plan implementation; components. (a) The school board of each eligible 
438.26 	district must formally develop and implement a long-term plan under this section. The plan 
438.27 	must be incorporated into the district's comprehensive strategic plan under section 120B.11. 
438.28 	Plan components may include: innovative and integrated prekindergarten through grade 12 
438.29 	learning environments that offer students school enrollment choices; family engagement 
438.30 	initiatives that involve families in their students' academic life and success; professional 
438.31 	development opportunities for teachers and administrators focused on improving the 
438.32 	academic achievement of all students, including teachers and administrators who are 
438.33 	members of populations underrepresented among the licensed teachers or administrators 
438.34 	in the district or school and who reflect the diversity of students under section 120B.35, 
438.35 	subdivision 3, paragraph (b), clause (2), who are enrolled in the district or school; 
438.36 	increased programmatic opportunities and effective and more diverse instructors focused 
439.1 	on rigor and college and career readiness for underserved students, including students 
439.2 	enrolled in alternative learning centers under section 123A.05, public alternative programs 
439.3 	under section 126C.05, subdivision 15, and contract alternative programs under section 
439.4 	124D.69, among other underserved students; or recruitment and retention of teachers and 
439.5 	administrators with diverse racial and ethnic backgrounds. The plan must contain goals for: 
439.6 	(1) reducing the disparities in academic achievement and in equitable access to 
439.7 	effective and more diverse teachers among all students and specific categories of students 
439.8 	under section 120B.35, subdivision 3, paragraph (b), excluding the student categories of 
439.9 	gender, disability, and English learners; and 
439.10 	(2) increasing racial and economic diversity and integration in schools and districts.
439.11 	(b) Among other requirements, an eligible district must implement effective, 
439.12 	research-based interventions that include formative assessment practices to reduce the 
439.13 	disparities in student academic performance among the specific categories of students as 
439.14 	measured by student progress and growth on state reading and math assessments and 
439.15 	as aligned with section 120B.11.
439.16 	(c) Eligible districts must create efficiencies and eliminate duplicative programs 
439.17 	and services under this section, which may include forming collaborations or a single, 
439.18 	seven-county metropolitan areawide partnership of eligible districts for this purpose.
439.19 		Subd. 3.Public engagement; progress report and budget process. (a) To 
439.20 	receive revenue under section 124D.862, the school board of an eligible district must 
439.21 	incorporate school and district plan components under section 120B.11 into the district's 
439.22 	comprehensive integration plan.
439.23 	(b) A school board must hold at least one formal annual hearing to publicly report 
439.24 	its progress in realizing the goals identified in its plan. At the hearing, the board must 
439.25 	provide the public with longitudinal data demonstrating district and school progress in 
439.26 	reducing the disparities in student academic performance among the specified categories 
439.27 	of students, in improving students' equitable access to effective and more diverse teachers,
439.28 	and in realizing racial and economic diversity and integration, consistent with the district 
439.29 	plan and the measures in paragraph (a). At least 30 days before the formal hearing under 
439.30 	this paragraph, the board must post its plan, its preliminary analysis, relevant student 
439.31 	performance data, and other longitudinal data on the district's Web site. A district must 
439.32 	hold one hearing to meet the hearing requirements of both this section and section 120B.11.
439.33 	(c) The district must submit a detailed budget to the commissioner by March 15 in 
439.34 	the year before it implements its plan. The commissioner must review, and approve or 
439.35 	disapprove the district's budget by June 1 of that year.
440.1 	(d) The longitudinal data required under paragraph (b) must be based on student 
440.2 	growth and progress in reading and mathematics, as defined under section 120B.30, 
440.3 	subdivision 1, and student performance data and achievement reports from fully adaptive 
440.4 	reading and mathematics assessments for grades 3 through 7 beginning in the 2015-2016 
440.5 	school year under section 120B.30, subdivision 1a, and either (i) school enrollment 
440.6 	choices, (ii) the number of world language proficiency or high achievement certificates 
440.7 	awarded under section 120B.022, subdivision 1a, or the number of state bilingual and 
440.8 	multilingual seals issued under section 120B.022, subdivision 1b, or (iii) school safety 
440.9 	and students' engagement and connection at school under section 120B.35, subdivision 3, 
440.10 	paragraph (d). Additional longitudinal data may be based on: students' progress toward 
440.11 	career and college readiness under section 120B.30, subdivision 1; or rigorous coursework 
440.12 	completed under section 120B.35, subdivision 3, paragraph (c), clause (2).
440.13 		Subd. 4.Timeline and implementation. A board must approve its plan and submit 
440.14 	it to the department by March 15. If a district that is part of a multidistrict council applies 
440.15 	for revenue for a plan, the individual district shall not receive revenue unless it ratifies 
440.16 	the plan adopted by the multidistrict council. Each plan has a term of three years. For 
440.17 	the 2014-2015 school year, an eligible district under this section must submit its plan to 
440.18 	the commissioner for review by March 15, 2014. For the 2013-2014 school year only, 
440.19 	an eligible district may continue to implement its current plan until the commissioner 
440.20 	approves a new plan under this section.
440.21 		Subd. 5.Evaluation. The commissioner must evaluate the efficacy of district 
440.22 	plans in reducing the disparities in student academic performance among the specified 
440.23 	categories of students within the district, improving students' equitable access to effective 
440.24 	and diverse teachers, and in realizing racial and economic diversity and integration. 
440.25 	The commissioner shall report evaluation results to the kindergarten through grade 12 
440.26 	education committees of the legislature by February 1 of every odd-numbered year.

440.27 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
440.28 	later.

440.29 	Sec. 20. Minnesota Statutes 2015 Supplement, section 127A.05, subdivision 6, is 
440.30 	amended to read:
440.31 		Subd. 6.Survey of districts. The commissioner of education shall survey the state's 
440.32 	school districts and teacher preparation programs and report to the education committees 
440.33 	of the legislature by February 1 of each odd-numbered year on the status of teacher early 
440.34 	retirement patterns, the access to effective and more diverse teachers who reflect the 
440.35 	students under section 120B.35, subdivision 3, paragraph (b), clause (2), enrolled in 
441.1 	a district or school, the teacher shortage, and the substitute teacher shortage, including 
441.2 	patterns and shortages in subject areas and the economic development regions of the state. 
441.3 	The report must also include: aggregate data on teachers' self-reported race and ethnicity; 
441.4 	data on how districts are making progress in hiring teachers and substitutes in the areas 
441.5 	of shortage; and a five-year projection of teacher demand for each district, taking into 
441.6 	account the students under section 120B.35, subdivision 3, paragraph (b), clause (2), 
441.7 	expected to enroll in the district during that five-year period.

441.8 	Sec. 21. [136F.361] CAREER AND TECHNICAL EDUCATION 
441.9 	CERTIFICATION AND LICENSURE.
441.10 	(a) The Board of Trustees of the Minnesota State Colleges and Universities 
441.11 	System, consistent with section 122A.09, subdivision 10, paragraph (e), must provide 
441.12 	an alternative preparation program allowing individuals to be certified as a career and 
441.13 	technical education instructor able to teach career and technical education courses offered 
441.14 	by a school district or charter school. The Board of Trustees may locate the first program 
441.15 	in the seven county metropolitan area.
441.16 	(b) Consistent with paragraph (a), the Board of Trustees of the Minnesota State 
441.17 	Colleges and Universities system, in consultation with the Board of Teaching, must 
441.18 	develop the standards, pedagogy, and curriculum for an alternative preparation program to 
441.19 	prepare qualified individuals: to attain certification as a career and technical education 
441.20 	instructor under section 122A.09, subdivision 10, paragraph (e), during the 2016-2017 
441.21 	through 2018-2019 school years; and to attain either certification or licensure as a career 
441.22 	and technical education instructor or teacher to teach career and technical education 
441.23 	courses offered by a school district or charter school in the 2019-2020 school year and later.

441.24 	EFFECTIVE DATE. This section is effective for the 2016-2017 academic year 
441.25 	and later.

441.26 	Sec. 22. STAFF DEVELOPMENT GRANTS FOR INTERMEDIATE SCHOOL 
441.27 	DISTRICTS AND OTHER COOPERATIVE UNITS.
 441.28 	(a) For fiscal years 2017, 2018, and 2019 only, an intermediate school district or 
441.29 	other cooperative unit providing instruction to students in federal instructional settings 
441.30 	of level 4 or higher qualifies for staff development grants equal to $1,000 times the 
441.31 	full-time equivalent number of licensed instructional staff and nonlicensed classroom 
441.32 	aides employed by or assigned to the intermediate school district or other cooperative unit 
441.33 	during the previous fiscal year.
442.1 	(b) Staff development grants received under this section must be used for activities 
442.2 	related to enhancing services to students who may have challenging behaviors or mental 
442.3 	health issues or be suffering from trauma. Specific qualifying staff development activities 
442.4 	include but are not limited to:
442.5 	(1) proactive behavior management;
442.6 	(2) personal safety training;
442.7 	(3) de-escalation techniques; and
442.8 	(4) adaptation of published curriculum and pedagogy for students with complex 
442.9 	learning and behavioral needs.
442.10 	(c) The grants received under this section must be reserved and spent only on the 
442.11 	activities specified in this section. If funding for purposes of this section is insufficient, 
442.12 	the commissioner must prorate the grants.

442.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
442.14 	and later.

442.15 	Sec. 23. CAREER AND TECHNICAL EDUCATOR LICENSING ADVISORY 
442.16 	TASK FORCE.
 442.17 		Subdivision 1.Creation. The Career and Technical Educator Licensing Advisory 
442.18 	Task Force consists of the following members, appointed by the commissioner of 
442.19 	education, unless otherwise specified:
442.20 	(1) one person who is a member of the Board of Teaching;
442.21 	(2) one person representing colleges and universities offering a board-approved 
442.22 	teacher preparation program;
442.23 	(3) one person representing science, technology, engineering, and math programs, 
442.24 	such as Project Lead the Way;
442.25 	(4) one person designated by the Board of the Minnesota Association for Career and 
442.26 	Technical Administrators;
442.27 	(5) one person designated by the Board of the Minnesota Association for Career 
442.28 	and Technical Education;
442.29 	(6) three people who are secondary school administrators, including superintendents, 
442.30 	principals, and assistant principals; and
442.31 	(7) two people who are members of other interested groups, as determined by the 
442.32 	commissioner of education.
442.33 	The commissioner and designating authorities must make their initial appointments 
442.34 	and designations by July 1, 2016. The commissioner and designating authorities, to the 
443.1 	extent practicable, should make appointments balanced as to gender and reflecting the 
443.2 	ethnic diversity of the state population.
443.3 		Subd. 2.Duties; report. The task force must review the current status of career and 
443.4 	technical educator licenses and provide recommendations on changes, if any are deemed 
443.5 	necessary, to the licensure requirements and methods to increase access for school districts 
443.6 	to licensed career and technical educators. The task force must report its findings and 
443.7 	recommendations, with draft legislation if needed to implement the recommendations, to 
443.8 	the chairs and ranking minority members of the legislative committees with jurisdiction 
443.9 	over kindergarten through grade 12 education and higher education by January 15, 2017.
443.10 		Subd. 3.First meeting. The commissioner of education or the commissioner's 
443.11 	designee must convene the first meeting of the task force by September 1, 2016.
443.12 		Subd. 4.Administrative support. The commissioner of education must provide 
443.13 	meeting space and administrative services for the task force.
443.14 		Subd. 5.Chair. The commissioner of education or the commissioner's designee 
443.15 	shall serve as chair of the task force.
443.16 		Subd. 6.Compensation. The public members of the task force serve without 
443.17 	compensation or payment of expenses.
443.18 		Subd. 7.Expiration. The task force expires January 16, 2017, or upon submission 
443.19 	of the report required in subdivision 2, whichever is earlier.

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

443.21 	Sec. 24. LEGISLATIVE STUDY GROUP ON EDUCATOR LICENSURE.
 443.22 	(a) A 12-member legislative study group on teacher licensure is created to review 
443.23 	the 2016 report prepared by the Office of the Legislative Auditor on the Minnesota teacher 
443.24 	licensure program and submit a written report by February 1, 2017, to the legislature 
443.25 	recommending how to restructure Minnesota's teacher licensure system by consolidating 
443.26 	all teacher licensure activities into a single state entity to ensure transparency and 
443.27 	consistency or, at a minimum, clarify existing teacher licensure responsibilities to provide 
443.28 	transparency and consistency. In developing its recommendations, the study group must 
443.29 	consider the tiered licensure system recommended in the legislative auditor's report, 
443.30 	among other recommendations. The study group must identify and include in its report 
443.31 	any statutory changes needed to implement the study group recommendations.
443.32 	(b) The legislative study group on educator licensure includes:
443.33 	(1) six duly elected and currently serving members of the house of representatives, 
443.34 	three appointed by the speaker of the house and three appointed by the house minority 
444.1 	leader, and one of whom must be the current chair of the house of representatives 
444.2 	Education Innovation Policy Committee; and
444.3 	(2) six duly elected and currently serving senators, three appointed by the senate 
444.4 	majority leader and three appointed by the senate minority leader, one of whom must be 
444.5 	the current chair of the senate Education Committee.
444.6 	Only duly elected and currently serving members of the house of representatives or senate 
444.7 	may be study group members.
444.8 	(c) The appointments must be made by June 1, 2016, and expire February 2, 2017. 
444.9 	If a vacancy occurs, the leader of the caucus in the house of representatives or senate to 
444.10 	which the vacating study group member belonged must fill the vacancy. The chair of the 
444.11 	house Education Innovation Policy Committee shall convene the first meeting of the study 
444.12 	group. The study group shall elect a chair or cochairs from among the members at the 
444.13 	first meeting. The study group must meet periodically. The Legislative Coordinating 
444.14 	Commission shall provide technical and administrative assistance upon request.
444.15 	(d) In reviewing the legislative auditor's report and developing its recommendations, 
444.16 	the study group must consult with interested and affected stakeholders, including 
444.17 	representatives of the Board of Teaching, Minnesota Department of Education, Education 
444.18 	Minnesota, MinnCAN, Minnesota Business Partnership, Minnesota Rural Education 
444.19 	Association, Association of Metropolitan School Districts, Minnesota Association of 
444.20 	Colleges for Teacher Education, College of Education and Human Development at 
444.21 	the University of Minnesota, Minnesota State Colleges and Universities, Minnesota 
444.22 	Private College Council, Minnesota School Boards Association, Minnesota Elementary 
444.23 	School Principals' Association, Minnesota Association of Secondary School Principals, 
444.24 	Minnesota Association of School Administrators, the Board of School Administrators, 
444.25 	Minnesota Indian Affairs Council, the Council on Asian Pacific Minnesotans, Council 
444.26 	for Minnesotans of African Heritage, Minnesota Council on Latino Affairs, Minnesota 
444.27 	Association of Educators, and Minnesota Teach For America, among other stakeholders.
444.28 	(e) The study group expires February 2, 2017, unless extended by law.

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

444.30 	ARTICLE 25
444.31 	EDUCATION EXCELLENCE

444.32 	Section 1. [119A.035] SCHOOL CRISIS RESPONSE TEAMS.
444.33 		Subdivision 1.Commissioner's duties. To ensure timely responses to school crises, 
444.34 	the commissioner must work in cooperation with the Minnesota School Safety Center to 
445.1 	collect, maintain, and make available to schools contact information for crisis response 
445.2 	teams throughout the state.
445.3 		Subd. 2.Crisis response teams. In regions of Minnesota where an existing crisis 
445.4 	response team has not been formed by a school district, county, or city, the commissioner, 
445.5 	in cooperation with the Minnesota School Safety Center, must convene a working group 
445.6 	in each region to develop a plan to form a crisis response team for that region. Team 
445.7 	members from the public and private sectors may represent various disciplines, including 
445.8 	school administrators, guidance counselors, psychologists, social workers, teachers, 
445.9 	nurses, security experts, media relations professionals, and other related areas.

445.10 	Sec. 2. Minnesota Statutes 2014, section 120A.42, is amended to read:
445.11 	120A.42 CONDUCT OF SCHOOL ON CERTAIN HOLIDAYS.
445.12 	(a) The governing body of any district may contract with any of the teachers of the 
445.13 	district for the conduct of schools, and may conduct schools, on either, or any, of the 
445.14 	following holidays, provided that a clause to this effect is inserted in the teacher's contract: 
445.15 	Martin Luther King's birthday, Lincoln's and Washington's birthdays, Columbus Day 
445.16 	and Veterans' Day. On Martin Luther King's birthday, Washington's birthday, Lincoln's 
445.17 	birthday, and Veterans' Day at least one hour of the school program must be devoted to a 
445.18 	patriotic observance of the day.
445.19 	(b) A district may conduct a school program to honor Constitution Day and 
445.20 	Citizenship Day by providing opportunities for students to learn about the principles of 
445.21 	American democracy, the American system of government, American citizens' rights and 
445.22 	responsibilities, American history, and American geography, symbols, and holidays. 
445.23 	Among other activities under this paragraph, districts may administer to students the test 
445.24 	questions United States Citizenship and Immigration Services officers pose to applicants 
445.25 	for naturalization.

445.26 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
445.27 	later.

445.28 	Sec. 3. Minnesota Statutes 2014, section 120B.02, is amended by adding a subdivision 
445.29 	to read:
445.30 		Subd. 3.Required knowledge and understanding of civics. (a) For purposes of 
445.31 	this subdivision, "civics test questions" means 50 of the 100 questions that, as of January 1, 
445.32 	2015, United States citizenship and immigration services officers use to select the questions 
445.33 	they pose to applicants for naturalization so the applicants can demonstrate their knowledge 
446.1 	and understanding of the fundamentals of United States history and government, as 
446.2 	required by United States Code, title 8, section 1423. The Learning Law and Democracy 
446.3 	Foundation, in consultation with Minnesota civics teachers, must select by July 1 each year 
446.4 	50 of the 100 questions under this paragraph to serve as the state's civics test questions for 
446.5 	the proximate school year and immediately transmit the 50 selected civics test questions to 
446.6 	the department and to the Legislative Coordinating Commission, which must post the 50 
446.7 	questions it receives on the Minnesota's Legacy Web site by August 1 of that year.
446.8 	(b) A student enrolled in a public school must correctly answer at least 30 of the 
446.9 	50 civics test questions. A school or district may record on a student's transcript that the 
446.10 	student answered at least 30 of 50 civics test questions correctly. A school or district may 
446.11 	exempt a student with disabilities from this requirement if the student's individualized 
446.12 	education program team determines the requirement is inappropriate and establishes an 
446.13 	alternative requirement. A school or district may administer the civics test questions in a 
446.14 	language other than English to students who qualify for English learner services.
446.15 	(c) Schools and districts may administer civics test questions as part of the social 
446.16 	studies curriculum. A district must not prevent a student from graduating or deny a student 
446.17 	a high school diploma for failing to correctly answer at least 30 of 50 civics test questions.
446.18 	(d) The commissioner and public schools and school districts must not charge 
446.19 	students any fees related to this subdivision.

446.20 	EFFECTIVE DATE. This section is effective for students enrolling in grade 9 in 
446.21 	the 2017-2018 school year or later.

446.22 	Sec. 4. Minnesota Statutes 2014, section 120B.021, subdivision 1, is amended to read:
446.23 		Subdivision 1.Required academic standards. (a) The following subject areas 
446.24 	are required for statewide accountability:
446.25 	(1) language arts;
446.26 	(2) mathematics;
446.27 	(3) science;
446.28 	(4) social studies, including history, geography, economics, and government and 
446.29 	citizenship that includes civics consistent with section 120B.02, subdivision 3;
446.30 	(5) physical education;
446.31 	(6) health, for which locally developed academic standards apply; and
446.32 	(7) the arts, for which statewide or locally developed academic standards apply, as 
446.33 	determined by the school district. Public elementary and middle schools must offer at least 
446.34 	three and require at least two of the following four arts areas: dance; music; theater; and 
447.1 	visual arts. Public high schools must offer at least three and require at least one of the 
447.2 	following five arts areas: media arts; dance; music; theater; and visual arts.
447.3 	(b) For purposes of applicable federal law, the academic standards for language arts, 
447.4 	mathematics, and science apply to all public school students, except the very few students 
447.5 	with extreme cognitive or physical impairments for whom an individualized education 
447.6 	program team has determined that the required academic standards are inappropriate. An 
447.7 	individualized education program team that makes this determination must establish 
447.8 	alternative standards.
447.9 	(c) Beginning in the 2016-2017 school year, the department must adopt the most 
447.10 	recent National Association of Sport and Physical Education kindergarten through grade 
447.11 	12 standards and benchmarks for physical education as the required physical education 
447.12 	academic standards. The department may modify and adapt the national standards to 
447.13 	accommodate state interest. The modification and adaptations must maintain the purpose 
447.14 	and integrity of the national standards. The department must make available sample 
447.15 	assessments, which school districts may use as an alternative to local assessments, to 
447.16 	assess students' mastery of the physical education standards beginning in the 2018-2019 
447.17 	school year.
447.18 	(c)(d) District efforts to develop, implement, or improve instruction or curriculum 
447.19 	as a result of the provisions of this section must be consistent with sections 120B.10, 
447.20 	120B.11, and 120B.20.

447.21 	EFFECTIVE DATE. This section is effective July 1, 2016, except that the change 
447.22 	in paragraph (a) is effective for students enrolling in grade 9 in the 2017-2018 school 
447.23 	year and later.

447.24 	Sec. 5. Minnesota Statutes 2014, section 120B.021, subdivision 3, is amended to read:
447.25 		Subd. 3.Rulemaking. The commissioner, consistent with the requirements of 
447.26 	this section and section 120B.022, must adopt statewide rules under section 14.389 for 
447.27 	implementing statewide rigorous core academic standards in language arts, mathematics, 
447.28 	science, social studies, physical education, and the arts. After the rules authorized under 
447.29 	this subdivision are initially adopted, the commissioner may not amend or repeal these 
447.30 	rules nor adopt new rules on the same topic without specific legislative authorization. The 
447.31 	academic standards for language arts, mathematics, and the arts must be implemented for 
447.32 	all students beginning in the 2003-2004 school year. The academic standards for science 
447.33 	and social studies must be implemented for all students beginning in the 2005-2006 school 
447.34 	year.

448.1 	Sec. 6. Minnesota Statutes 2015 Supplement, section 120B.021, subdivision 4, is 
448.2 	amended to read:
448.3 		Subd. 4.Revisions and reviews required. (a) The commissioner of education must 
448.4 	revise and appropriately embed technology and information literacy standards consistent 
448.5 	with recommendations from school media specialists into the state's academic standards 
448.6 	and graduation requirements and implement a ten-year cycle to review and, consistent 
448.7 	with the review, revise state academic standards and related benchmarks, consistent with 
448.8 	this subdivision. During each ten-year review and revision cycle, the commissioner also 
448.9 	must examine the alignment of each required academic standard and related benchmark 
448.10 	with the knowledge and skills students need for career and college readiness and advanced 
448.11 	work in the particular subject area. The commissioner must include the contributions of 
448.12 	Minnesota American Indian tribes and communities as related to the academic standards 
448.13 	during the review and revision of the required academic standards.
448.14 	(b) The commissioner must ensure that the statewide mathematics assessments 
448.15 	administered to students in grades 3 through 8 and 11 are aligned with the state academic 
448.16 	standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 
448.17 	(b). The commissioner must implement a review of the academic standards and related 
448.18 	benchmarks in mathematics beginning in the 2020-2021 2021-2022 school year and 
448.19 	every ten years thereafter.
448.20 	(c) The commissioner must implement a review of the academic standards and 
448.21 	related benchmarks in arts beginning in the 2016-2017 2017-2018 school year and every 
448.22 	ten years thereafter.
448.23 	(d) The commissioner must implement a review of the academic standards and 
448.24 	related benchmarks in science beginning in the 2017-2018 2018-2019 school year and 
448.25 	every ten years thereafter.
448.26 	(e) The commissioner must implement a review of the academic standards and 
448.27 	related benchmarks in language arts beginning in the 2018-2019 2019-2020 school year 
448.28 	and every ten years thereafter.
448.29 	(f) The commissioner must implement a review of the academic standards and 
448.30 	related benchmarks in social studies beginning in the 2019-2020 2020-2021 school year 
448.31 	and every ten years thereafter.
448.32 	(g) The commissioner must implement a review of the academic standards and 
448.33 	related benchmarks in physical education beginning in the 2022-2023 school year and 
448.34 	every ten years thereafter.
448.35 	(h) School districts and charter schools must revise and align local academic 
448.36 	standards and high school graduation requirements in health, world languages, and career 
449.1 	and technical education to require students to complete the revised standards beginning 
449.2 	in a school year determined by the school district or charter school. School districts and 
449.3 	charter schools must formally establish a periodic review cycle for the academic standards 
449.4 	and related benchmarks in health, world languages, and career and technical education.

449.5 	Sec. 7. [120B.026] PHYSICAL EDUCATION; EXCLUSION FROM CLASS; 
449.6 	RECESS.
449.7 	A student may be excused from a physical education class if the student submits 
449.8 	written information signed by a physician stating that physical activity will jeopardize 
449.9 	the student's health. A student may be excused from a physical education class if being 
449.10 	excused meets the child's unique and individualized needs according to the child's 
449.11 	individualized education program, federal 504 plan, or individualized health plan. A 
449.12 	student may be excused if a parent or guardian requests an exemption on religious 
449.13 	grounds. A student with a disability must be provided with modifications or adaptations 
449.14 	that allow physical education class to meet their needs. Schools are strongly encouraged 
449.15 	not to exclude students in kindergarten through grade 5 from recess due to punishment or 
449.16 	disciplinary action.

449.17 	Sec. 8. Minnesota Statutes 2014, section 120B.11, subdivision 1a, is amended to read:
449.18 		Subd. 1a.Performance measures. Measures to determine school district and 
449.19 	school site progress in striving to create the world's best workforce must include at least:
449.20 	(1) student performance on the National Assessment of Education Progress where 
449.21 	applicable;
449.22 	(2)(1) the size of the academic achievement gap, rigorous course taking under 
449.23 	section 120B.35, subdivision 3, paragraph (c), clause (2), and enrichment experiences by 
449.24 	student subgroup;
449.25 	(3) (2) student performance on the Minnesota Comprehensive Assessments;
449.26 	(4) (3) high school graduation rates; and
449.27 	(5) (4) career and college readiness under section 120B.30, subdivision 1.

449.28 	Sec. 9. Minnesota Statutes 2014, section 120B.11, subdivision 2, is amended to read:
449.29 		Subd. 2.Adopting plans and budgets.  A school board, at a public meeting, shall 
449.30 	adopt a comprehensive, long-term strategic plan to support and improve teaching and 
449.31 	learning that is aligned with creating the world's best workforce and includes:
450.1 	(1) clearly defined district and school site goals and benchmarks for instruction and 
450.2 	student achievement for all student subgroups identified in section 120B.35, subdivision 3, 
450.3 	paragraph (b), clause (2);
450.4 	(2) a process for assessing and evaluating to assess and evaluate each student's 
450.5 	progress toward meeting state and local academic standards, assess and identify students 
450.6 	to participate in gifted and talented programs and accelerate their instruction, and adopt 
450.7 	early-admission procedures consistent with section 120B.15, and identifying the strengths 
450.8 	and weaknesses of instruction in pursuit of student and school success and curriculum 
450.9 	affecting students' progress and growth toward career and college readiness and leading to 
450.10 	the world's best workforce;
450.11 	(3) a system to periodically review and evaluate the effectiveness of all instruction 
450.12 	and curriculum, taking into account strategies and best practices, student outcomes, school 
450.13 	principal evaluations under section 123B.147, subdivision 3, students' access to effective 
450.14 	teachers who are members of populations underrepresented among the licensed teachers 
450.15 	in the district or school and who reflect the diversity of enrolled students under section 
450.16 	120B.35, subdivision 3, paragraph (b), clause (2), and teacher evaluations under section 
450.17 	122A.40, subdivision 8, or 122A.41, subdivision 5;
450.18 	(4) strategies for improving instruction, curriculum, and student achievement, 
450.19 	including the English and, where practicable, the native language development and the 
450.20 	academic achievement of English learners;
450.21 	(5) a process to examine the equitable distribution of teachers and strategies to 
450.22 	ensure low-income and minority children are not taught at higher rates than other children 
450.23 	by inexperienced, ineffective, or out-of-field teachers;
450.24 	(5) (6) education effectiveness practices that integrate high-quality instruction, 
450.25 	rigorous curriculum, technology, and a collaborative professional culture that develops 
450.26 	and supports teacher quality, performance, and effectiveness; and
450.27 	(6) (7) an annual budget for continuing to implement the district plan.

450.28 	Sec. 10. Minnesota Statutes 2014, section 120B.11, subdivision 3, is amended to read:
450.29 		Subd. 3.District advisory committee. Each school board shall establish an 
450.30 	advisory committee to ensure active community participation in all phases of planning 
450.31 	and improving the instruction and curriculum affecting state and district academic 
450.32 	standards, consistent with subdivision 2. A district advisory committee, to the extent 
450.33 	possible, shall reflect the diversity of the district and its school sites, include teachers, 
450.34 	parents, support staff, students, and other community residents, and provide translation 
450.35 	to the extent appropriate and practicable. The district advisory committee shall pursue 
451.1 	community support to accelerate the academic and native literacy and achievement of 
451.2 	English learners with varied needs, from young children to adults, consistent with section 
451.3 	124D.59, subdivisions 2 and 2a. The district may establish site teams as subcommittees 
451.4 	of the district advisory committee under subdivision 4. The district advisory committee 
451.5 	shall recommend to the school board rigorous academic standards, student achievement 
451.6 	goals and measures consistent with subdivision 1a and sections 120B.022, subdivisions 1a 
451.7 	and 1b, and 120B.35, district assessments, means to improve students' equitable access to 
451.8 	effective and more diverse teachers, and program evaluations. School sites may expand 
451.9 	upon district evaluations of instruction, curriculum, assessments, or programs. Whenever 
451.10 	possible, parents and other community residents shall comprise at least two-thirds of 
451.11 	advisory committee members.

451.12 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
451.13 	later.

451.14 	Sec. 11. Minnesota Statutes 2014, section 120B.11, subdivision 4, is amended to read:
451.15 		Subd. 4.Site team. A school may must establish a site team to develop and 
451.16 	implement strategies and education effectiveness practices to improve instruction, 
451.17 	curriculum, cultural competencies, including cultural awareness and cross-cultural 
451.18 	communication, and student achievement at the school site, consistent with subdivision 2.
451.19 	The site team must include an equal number of teachers and administrators and at least 
451.20 	one parent. The site team advises the board and the advisory committee about developing 
451.21 	the annual budget and revising creates an instruction and curriculum improvement plan 
451.22 	that aligns to align curriculum, assessment of student progress, and growth in meeting 
451.23 	state and district academic standards and instruction.

451.24 	Sec. 12. Minnesota Statutes 2014, section 120B.11, subdivision 5, is amended to read:
451.25 		Subd. 5.Report. Consistent with requirements for school performance reports 
451.26 	under section 120B.36, subdivision 1, the school board shall publish a report in the 
451.27 	local newspaper with the largest circulation in the district, by mail, or by electronic 
451.28 	means on the district Web site. The school board shall hold an annual public meeting 
451.29 	to review, and revise where appropriate, student achievement goals, local assessment 
451.30 	outcomes, plans, strategies, and practices for improving curriculum and instruction and 
451.31 	cultural competency, and efforts to equitably distribute diverse, effective, experienced, 
451.32 	and in-field teachers, and to review district success in realizing the previously adopted 
451.33 	student achievement goals and related benchmarks and the improvement plans leading to 
452.1 	the world's best workforce. The school board must transmit an electronic summary of its 
452.2 	report to the commissioner in the form and manner the commissioner determines.

452.3 	Sec. 13. Minnesota Statutes 2014, section 120B.12, subdivision 2, is amended to read:
452.4 		Subd. 2.Identification; report. For the 2011-2012 school year and later, (a)
452.5 	Each school district shall identify before the end of kindergarten, grade 1, and grade 2 
452.6 	students who are not reading at grade level before the end of the current school year. 
452.7 	Reading assessments in English, and in the predominant languages of district students 
452.8 	where practicable, must identify and evaluate students' areas of academic need related 
452.9 	to literacy. The district also must monitor the progress and provide reading instruction 
452.10 	appropriate to the specific needs of English learners. The district must use a locally 
452.11 	adopted, developmentally appropriate, and culturally responsive assessment and annually 
452.12 	report summary assessment results to the commissioner by July 1. The district also must 
452.13 	annually report a summary of the district's efforts to screen and identify students with 
452.14 	dyslexia or convergence insufficiency disorder to the commissioner by July 1.
452.15 	(b) A student identified under this subdivision must be provided with alternate 
452.16 	instruction under section 125A.56, subdivision 1.

452.17 	Sec. 14. Minnesota Statutes 2014, section 120B.15, is amended to read:
452.18 	120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
452.19 	(a) School districts may identify students, locally develop programs addressing 
452.20 	instructional and affective needs, provide staff development, and evaluate programs to 
452.21 	provide gifted and talented students with challenging and appropriate educational programs.
452.22 	(b) School districts must adopt guidelines for assessing and identifying students for 
452.23 	participation in gifted and talented programs consistent with section 120B.11, subdivision 
452.24 	2, clause (2). The guidelines should include the use of:
452.25 	(1) multiple and objective criteria; and
452.26 	(2) assessments and procedures that are valid and reliable, fair, and based on current 
452.27 	theory and research. Assessments and procedures should be sensitive to underrepresented 
452.28 	groups, including, but not limited to, low-income, minority, twice-exceptional, and 
452.29 	English learners.
452.30 	(c) School districts must adopt procedures for the academic acceleration of gifted 
452.31 	and talented students consistent with section 120B.11, subdivision 2, clause (2). These 
452.32 	procedures must include how the district will:
452.33 	(1) assess a student's readiness and motivation for acceleration; and
453.1 	(2) match the level, complexity, and pace of the curriculum to a student to achieve 
453.2 	the best type of academic acceleration for that student.
453.3 	(d) School districts must adopt procedures consistent with section 124D.02, 
453.4 	subdivision 1, for early admission to kindergarten or first grade of gifted and talented 
453.5 	learners consistent with section 120B.11, subdivision 2, clause (2). The procedures must 
453.6 	be sensitive to underrepresented groups.

453.7 	Sec. 15. Minnesota Statutes 2014, section 120B.232, is amended to read:
453.8 	120B.232 CHARACTER DEVELOPMENT EDUCATION.
453.9 		Subdivision 1.Character development education. (a) The legislature encourages 
453.10 	districts to integrate or offer instruction on character education including, but not limited 
453.11 	to, character qualities such as attentiveness, truthfulness, respect for authority, diligence, 
453.12 	gratefulness, self-discipline, patience, forgiveness, respect for others, peacemaking, and 
453.13 	resourcefulness. Instruction should be integrated into a district's existing programs, 
453.14 	curriculum, or the general school environment. The commissioner shall provide assistance 
453.15 	at the request of a district to develop character education curriculum and programs.
453.16 	(b) Character development education under paragraph (a) may include a voluntary 
453.17 	elementary, middle, and high school program that incorporates the history and values of 
453.18 	Congressional Medal of Honor recipients and may be offered as part of the social studies, 
453.19 	English language arts, or other curriculum, as a schoolwide character building and veteran 
453.20 	awareness initiative, or as an after-school program, among other possibilities.
453.21 		Subd. 1a.Staff development; continuing education. (a) Staff development 
453.22 	opportunities under section 122A.60 may include training in character development 
453.23 	education that incorporates the history and values of Congressional Medal of Honor 
453.24 	recipients under subdivision 1, paragraph (b), and is provided without cost to the interested 
453.25 	school or district.
453.26 	(b) Local continuing education and relicensure committees or other local relicensure 
453.27 	committees under section 122A.18, subdivision 4, are encouraged to approve up to six 
453.28 	clock hours of continuing education for licensed teachers who complete the training in 
453.29 	character development education under paragraph (a).
453.30 		Subd. 2.Funding sources. The commissioner must first use federal funds for 
453.31 	character development education programs to the extent available under United States 
453.32 	Code, title 20, section 7247. Districts may accept funds from private and other public 
453.33 	sources for character development education programs developed and implemented under 
453.34 	this section, including programs funded through the Congressional Medal of Honor 
453.35 	Foundation, among other sources.

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

454.2 	Sec. 16. Minnesota Statutes 2015 Supplement, section 120B.30, subdivision 1, is 
454.3 	amended to read:
454.4 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
454.5 	with appropriate technical qualifications and experience and stakeholders, consistent with 
454.6 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
454.7 	level to be tested, state-constructed tests developed as computer-adaptive reading and 
454.8 	mathematics assessments for students that are aligned with the state's required academic 
454.9 	standards under section 120B.021, include multiple choice questions, and are administered 
454.10 	annually to all students in grades 3 through 8. State-developed high school tests aligned 
454.11 	with the state's required academic standards under section 120B.021 and administered 
454.12 	to all high school students in a subject other than writing must include multiple choice 
454.13 	questions. The commissioner shall establish one or more months during which schools 
454.14 	shall administer the tests to students each school year.
454.15 	(1) Students enrolled in grade 8 through the 2009-2010 school year are eligible 
454.16 	to be assessed under (i) the graduation-required assessment for diploma in reading, 
454.17 	mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1, 
454.18 	paragraphs (c), clauses (1) and (2), and (d), (ii) the WorkKeys job skills assessment, (iii) 
454.19 	the Compass college placement test, (iv) the ACT assessment for college admission, (v) a 
454.20 	nationally recognized armed services vocational aptitude test.
454.21 	(2) Students enrolled in grade 8 in the 2010-2011 or 2011-2012 school year are 
454.22 	eligible to be assessed under (i) the graduation-required assessment for diploma in reading, 
454.23 	mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 
454.24 	1, paragraph (c), clauses (1) and (2), (ii) the WorkKeys job skills assessment, (iii) the 
454.25 	Compass college placement test, (iv) the ACT assessment for college admission, (v) a 
454.26 	nationally recognized armed services vocational aptitude test.
454.27 	(3) For students under clause (1) or (2), a school district may substitute a score from 
454.28 	an alternative, equivalent assessment to satisfy the requirements of this paragraph.
454.29 	(b) The state assessment system must be aligned to the most recent revision of 
454.30 	academic standards as described in section 120B.023 in the following manner:
454.31 	(1) mathematics;
454.32 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
454.33 	(ii) high school level beginning in the 2013-2014 school year;
454.34 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
454.35 	school year; and
455.1 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
455.2 	the 2012-2013 school year.
455.3 	(c) For students enrolled in grade 8 in the 2012-2013 school year and later, students' 
455.4 	state graduation requirements, based on a longitudinal, systematic approach to student 
455.5 	education and career planning, assessment, instructional support, and evaluation, include 
455.6 	the following:
455.7 	(1) an opportunity to participate on a nationally normed college entrance exam, 
455.8 	in grade 11 or grade 12;
455.9 	(2) achievement and career and college readiness in mathematics, reading, and 
455.10 	writing, consistent with paragraph (j) (k) and to the extent available, to monitor students' 
455.11 	continuous development of and growth in requisite knowledge and skills; analyze 
455.12 	students' progress and performance levels, identifying students' academic strengths and 
455.13 	diagnosing areas where students require curriculum or instructional adjustments, targeted 
455.14 	interventions, or remediation; and, based on analysis of students' progress and performance 
455.15 	data, determine students' learning and instructional needs and the instructional tools and 
455.16 	best practices that support academic rigor for the student; and
455.17 	(3) consistent with this paragraph and section 120B.125, age-appropriate exploration 
455.18 	and planning activities and career assessments to encourage students to identify personally 
455.19 	relevant career interests and aptitudes and help students and their families develop a 
455.20 	regularly reexamined transition plan for postsecondary education or employment without 
455.21 	need for postsecondary remediation.
455.22 	Based on appropriate state guidelines, students with an individualized education program 
455.23 	may satisfy state graduation requirements by achieving an individual score on the 
455.24 	state-identified alternative assessments.
455.25 	(d) Expectations of schools, districts, and the state for career or college readiness 
455.26 	under this subdivision must be comparable in rigor, clarity of purpose, and rates of 
455.27 	student completion. 
455.28 	A student under paragraph (c), clause (2), must receive targeted, relevant, 
455.29 	academically rigorous, and resourced instruction, which may include a targeted instruction 
455.30 	and intervention plan focused on improving the student's knowledge and skills in core 
455.31 	subjects so that the student has a reasonable chance to succeed in a career or college 
455.32 	without need for postsecondary remediation. Consistent with sections 120B.13, 124D.09, 
455.33 	124D.091, 124D.49, and related sections, an enrolling school or district must actively 
455.34 	encourage a student in grade 11 or 12 who is identified as academically ready for a career 
455.35 	or college to participate in courses and programs awarding college credit to high school 
456.1 	students. Students are not required to achieve a specified score or level of proficiency on 
456.2 	an assessment under this subdivision to graduate from high school.
456.3 	(e) Though not a high school graduation requirement, students are encouraged to 
456.4 	participate in a nationally recognized college entrance exam. With funding provided by 
456.5 	the To the extent state funding for college entrance exam fees is available, a district must 
456.6 	pay the cost, one time, for an interested student in grade 11 or 12 to take a nationally 
456.7 	recognized college entrance exam before graduating. A student must be able to take the 
456.8 	exam under this paragraph at the student's high school during the school day and at any 
456.9 	one of the multiple exam administrations available to students in the district. A district 
456.10 	may administer the ACT or SAT or both the ACT and SAT to comply with this paragraph. 
456.11 	If the district administers only one of these two tests and a student opts not to take that test 
456.12 	and chooses instead to take the other of the two tests, the student may take the other test at 
456.13 	a different time or location and remains eligible for the examination fee reimbursement.
456.14 	(f) The commissioner and the chancellor of the Minnesota State Colleges and 
456.15 	Universities must collaborate in aligning instruction and assessments for adult basic 
456.16 	education students and English learners to provide the students with diagnostic information 
456.17 	about any targeted interventions, accommodations, modifications, and supports they 
456.18 	need so that assessments and other performance measures are accessible to them and 
456.19 	they may seek postsecondary education or employment without need for postsecondary 
456.20 	remediation. When administering formative or summative assessments used to measure 
456.21 	the academic progress, including the oral academic development, of English learners 
456.22 	and inform their instruction, schools must ensure that the assessments are accessible to 
456.23 	the students and students have the modifications and supports they need to sufficiently 
456.24 	understand the assessments.
456.25 	(g) Districts and schools, on an annual basis, must use career exploration elements 
456.26 	to help students, beginning no later than grade 9, and their families explore and plan 
456.27 	for postsecondary education or careers based on the students' interests, aptitudes, and 
456.28 	aspirations. Districts and schools must use timely regional labor market information and 
456.29 	partnerships, among other resources, to help students and their families successfully 
456.30 	develop, pursue, review, and revise an individualized plan for postsecondary education or a 
456.31 	career. This process must help increase students' engagement in and connection to school, 
456.32 	improve students' knowledge and skills, and deepen students' understanding of career 
456.33 	pathways as a sequence of academic and career courses that lead to an industry-recognized 
456.34 	credential, an associate's degree, or a bachelor's degree and are available to all students, 
456.35 	whatever their interests and career goals.
457.1 	(h) A student who demonstrates attainment of required state academic standards, 
457.2 	which include career and college readiness benchmarks, on high school assessments 
457.3 	under subdivision 1a is academically ready for a career or college and is encouraged to 
457.4 	participate in courses awarding college credit to high school students. Such courses and 
457.5 	programs may include sequential courses of study within broad career areas and technical 
457.6 	skill assessments that extend beyond course grades.
457.7 	(i) As appropriate, students through grade 12 must continue to participate in targeted 
457.8 	instruction, intervention, or remediation and be encouraged to participate in courses 
457.9 	awarding college credit to high school students.
457.10 	(j) In developing, supporting, and improving students' academic readiness for a 
457.11 	career or college, schools, districts, and the state must have a continuum of empirically 
457.12 	derived, clearly defined benchmarks focused on students' attainment of knowledge and 
457.13 	skills so that students, their parents, and teachers know how well students must perform to 
457.14 	have a reasonable chance to succeed in a career or college without need for postsecondary 
457.15 	remediation. The commissioner, in consultation with local school officials and educators, 
457.16 	and Minnesota's public postsecondary institutions must ensure that the foundational 
457.17 	knowledge and skills for students' successful performance in postsecondary employment 
457.18 	or education and an articulated series of possible targeted interventions are clearly 
457.19 	identified and satisfy Minnesota's postsecondary admissions requirements.
457.20 	(k) For students in grade 8 in the 2012-2013 school year and later, a school, district, 
457.21 	or charter school must record on the high school transcript a student's progress toward 
457.22 	career and college readiness, and for other students as soon as practicable.
457.23 	(l) The school board granting students their diplomas may formally decide to include 
457.24 	a notation of high achievement on the high school diplomas of those graduating seniors 
457.25 	who, according to established school board criteria, demonstrate exemplary academic 
457.26 	achievement during high school.
457.27 	(m) The 3rd through 8th grade computer-adaptive assessment results and high school 
457.28 	test results shall be available to districts for diagnostic purposes affecting student learning 
457.29 	and district instruction and curriculum, and for establishing educational accountability. 
457.30 	The commissioner must establish empirically derived benchmarks on adaptive assessments 
457.31 	in grades 3 through 8. The commissioner, in consultation with the chancellor of the 
457.32 	Minnesota State Colleges and Universities, must establish empirically derived benchmarks 
457.33 	on the high school tests that reveal a trajectory toward career and college readiness
457.34 	consistent with section 136F.3025. The commissioner must disseminate to the public the 
457.35 	computer-adaptive assessments and high school test results upon receiving those results.
458.1 	(n) The grades 3 through 8 computer-adaptive assessments and high school tests 
458.2 	must be aligned with state academic standards. The commissioner shall determine the 
458.3 	testing process and the order of administration. The statewide results shall be aggregated 
458.4 	at the site and district level, consistent with subdivision 1a.
458.5 	(o) The commissioner shall include the following components in the statewide 
458.6 	public reporting system:
458.7 	(1) uniform statewide computer-adaptive assessments of all students in grades 3 
458.8 	through 8 and testing at the high school levels that provides appropriate, technically sound 
458.9 	accommodations or alternate assessments;
458.10 	(2) educational indicators that can be aggregated and compared across school 
458.11 	districts and across time on a statewide basis, including average daily attendance, high 
458.12 	school graduation rates, and high school drop-out rates by age and grade level;
458.13 	(3) state results on the American College Test; and
458.14 	(4) state results from participation in the National Assessment of Educational 
458.15 	Progress so that the state can benchmark its performance against the nation and other 
458.16 	states, and, where possible, against other countries, and contribute to the national effort 
458.17 	to monitor achievement.
458.18 	(p) For purposes of statewide accountability, "career and college ready" means a 
458.19 	high school graduate has the knowledge, skills, and competencies to successfully pursue a 
458.20 	career pathway, including postsecondary credit leading to a degree, diploma, certificate, or 
458.21 	industry-recognized credential and employment. Students who are career and college ready 
458.22 	are able to successfully complete credit-bearing coursework at a two- or four-year college 
458.23 	or university or other credit-bearing postsecondary program without need for remediation.
458.24 	(q) For purposes of statewide accountability, "cultural competence," "cultural 
458.25 	competency," or "culturally competent" means the ability and will to interact effectively 
458.26 	with people of different cultures, native languages, and socioeconomic backgrounds.

458.27 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
458.28 	later.

458.29 	Sec. 17. Minnesota Statutes 2014, section 120B.30, subdivision 2, is amended to read:
458.30 		Subd. 2.Department of Education assistance. (a) The Department of Education 
458.31 	shall contract for professional and technical services according to competitive solicitation 
458.32 	procedures under chapter 16C for purposes of this section.
458.33 	(b) A proposal submitted under this section must include disclosures containing:
458.34 	(1) comprehensive information regarding test administration monitoring practices; 
458.35 	and
459.1 	(2) data privacy safeguards for student information to be transmitted to or used 
459.2 	by the proposing entity.
459.3 	Information provided in the proposal is not security information or trade secret information 
459.4 	for purposes of section 13.37.

459.5 	Sec. 18. Minnesota Statutes 2014, section 120B.30, is amended by adding a 
459.6 	subdivision to read:
459.7 		Subd. 6.Database. The commissioner shall establish a reporting system for 
459.8 	teachers, administrators, and students to report service disruptions and technical 
459.9 	interruptions. The information reported through this system shall be maintained in a 
459.10 	database accessible through the department's Web site.

459.11 	Sec. 19. Minnesota Statutes 2015 Supplement, section 120B.301, is amended to read:
459.12 	120B.301 LIMITS ON LOCAL TESTING.
459.13 	(a) For students in grades 1 through 6, the cumulative total amount of time spent 
459.14 	taking locally adopted districtwide or schoolwide assessments must not exceed ten hours 
459.15 	per school year. For students in grades 7 through 12, the cumulative total amount of time 
459.16 	spent taking locally adopted districtwide or schoolwide assessments must not exceed 11 
459.17 	hours per school year. For purposes of this paragraph, International Baccalaureate and 
459.18 	Advanced Placement exams are not considered locally adopted assessments.
459.19 	(b) A district or charter school is exempt from the requirements of paragraph (a), 
459.20 	if the district or charter school, in consultation with the exclusive representative of the 
459.21 	teachers or other teachers if there is no exclusive representative of the teachers, decides 
459.22 	to exceed a time limit in paragraph (a) and includes in the report required under section 
459.23 	120B.11, subdivision 5.
459.24 	(c) A district or charter school, before the first day of each school year, must publish 
459.25 	on its Web site a comprehensive calendar of standardized tests to be administered in the 
459.26 	district or charter school during that school year. The calendar must provide the rationale 
459.27 	for administering each assessment and indicate whether the assessment is a local option or 
459.28 	required by state or federal law.

459.29 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
459.30 	later.

459.31 	Sec. 20. [120B.304] SCHOOL DISTRICT ASSESSMENT COMMITTEE.
460.1 	(a) A school district that does not have an agreement between the school board and 
460.2 	the exclusive representative of the teachers about selecting assessments must establish a 
460.3 	district assessment committee to advise the school board on administering standardized 
460.4 	assessments to students in addition to the assessments required under section 120B.30 and 
460.5 	applicable federal law unless paragraph (b) applies. The committee must include an equal 
460.6 	number of teachers and administrators and at least one parent of a student in the district 
460.7 	and may include at least one representative from each school site in the district.
460.8 	(b) A school district may seek this assessment advice from the district advisory 
460.9 	committee under section 120B.11, subdivision 3, instead of establishing a committee 
460.10 	under this section.

460.11 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
460.12 	later.

460.13 	Sec. 21. Minnesota Statutes 2015 Supplement, section 120B.31, subdivision 4, is 
460.14 	amended to read:
460.15 		Subd. 4. Student performance data. In developing policies and assessment 
460.16 	processes to hold schools and districts accountable for high levels of academic standards 
460.17 	under section 120B.021, the commissioner shall aggregate and disaggregate student 
460.18 	data over time to report summary student performance and growth levels and, under 
460.19 	section 120B.11, subdivision 2, clause (2), student learning and outcome data measured 
460.20 	at the school, school district, and statewide level. When collecting and reporting the 
460.21 	performance data, The commissioner shall use the student categories identified under the 
460.22 	federal Elementary and Secondary Education Act, as most recently reauthorized, and 
460.23 	student categories of homelessness, ethnicity, race, home language, immigrant, refugee 
460.24 	status, English learners under section 124D.59, free or reduced-price lunch, and other 
460.25 	categories designated by federal law to organize and report the data so that state and 
460.26 	local policy makers can understand the educational implications of changes in districts' 
460.27 	demographic profiles over time, including student homelessness, as data are available, 
460.28 	among other demographic factors. Any report the commissioner disseminates containing 
460.29 	summary data on student performance must integrate student performance and the 
460.30 	demographic factors that strongly correlate with that performance.

460.31 	EFFECTIVE DATE. This section is effective for the 2017-2018 school year and 
460.32 	later.

461.1 	Sec. 22. Minnesota Statutes 2014, section 120B.31, is amended by adding a 
461.2 	subdivision to read:
461.3 		Subd. 4a.Student participation. The commissioner shall create and publish a form 
461.4 	for parents and guardians to complete if they refuse to have their student participate in 
461.5 	state or locally required standardized testing. The form must state why there are state 
461.6 	academic standards, indicate which tests are aligned with state standards, and what 
461.7 	consequences, if any, the school or student may face if a student does not participate in 
461.8 	state or locally required standardized testing. This form must ask parents to indicate a 
461.9 	reason for their refusal.

461.10 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
461.11 	later.

461.12 	Sec. 23. Minnesota Statutes 2014, section 120B.31, subdivision 5, is amended to read:
461.13 		Subd. 5.ParentAccess to information. To ensure the effective involvement 
461.14 	of parents and to support a partnership between the school and parents, each district 
461.15 	shall annually provide parents and teachers a timely written summary, in an electronic 
461.16 	or other format, of their student's current and longitudinal performance and progress 
461.17 	on the state's academic content standards as measured by state assessments. Providing 
461.18 	parents with a summary prepared by the Department of Education fulfills the requirements 
461.19 	of this subdivision.

461.20 	Sec. 24. Minnesota Statutes 2014, section 120B.31, is amended by adding a 
461.21 	subdivision to read:
461.22 		Subd. 6.Retaliation prohibited. An employee who discloses information to the 
461.23 	commissioner or a parent or guardian about service disruptions or technical interruptions 
461.24 	related to administering assessments under this section is protected under section 181.932, 
461.25 	governing disclosure of information by employees.

461.26 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
461.27 	later.

461.28 	Sec. 25. Minnesota Statutes 2014, section 120B.35, is amended to read:
461.29 	120B.35 STUDENT ACADEMIC ACHIEVEMENT AND GROWTH.
461.30 		Subdivision 1.School and Student indicators of growth and achievement.
 461.31 	The commissioner must develop and implement a system for measuring and reporting 
461.32 	academic achievement and individual student growth, consistent with the statewide 
462.1 	educational accountability and reporting system. The system components must measure 
462.2 	and separately report the adequate yearly progress federal expectations of schools and 
462.3 	the growth of individual students: students' current achievement in schools under 
462.4 	subdivision 2; and individual students' educational growth over time under subdivision 
462.5 	3. The system also must include statewide measures of student academic growth that 
462.6 	identify schools with high levels of growth, and also schools with low levels of growth 
462.7 	that need improvement. When determining a school's effect, The data must include 
462.8 	both statewide measures of student achievement and, to the extent annual tests are 
462.9 	administered, indicators of achievement growth that take into account a student's prior 
462.10 	achievement. Indicators of achievement and prior achievement must be based on highly 
462.11 	reliable statewide or districtwide assessments. Indicators that take into account a student's 
462.12 	prior achievement must not be used to disregard a school's low achievement or to exclude 
462.13 	a school from a program to improve low achievement levels.
462.14 		Subd. 2.Federal Expectations for student academic achievement. (a) Each 
462.15 	school year, a school district must determine if the student achievement levels at each 
462.16 	school site meet federal expectations. If student achievement levels at a school site do 
462.17 	not meet federal expectations and the site has not made adequate yearly progress for two 
462.18 	consecutive school years, beginning with the 2001-2002 school year, the district must 
462.19 	work with the school site to adopt a plan to raise student achievement levels to meet 
462.20 	federal expectations. The commissioner of education shall establish student academic 
462.21 	achievement levels to comply with this paragraph.
462.22 	(b) School sites identified as not meeting federal expectations must develop 
462.23 	continuous improvement plans in order to meet federal expectations for student academic 
462.24 	achievement. The department, at a district's request, must assist the district and the school 
462.25 	site sites in developing a plan to improve student achievement. The plan must include 
462.26 	parental involvement components.
462.27 	(c) The commissioner must:
462.28 	(1) assist school sites and districts identified as not meeting federal expectations; and
462.29 	(2) provide technical assistance to schools that integrate student achievement 
462.30 	measures into the school continuous improvement plan.
462.31 	(d) The commissioner shall establish and maintain a continuous improvement Web 
462.32 	site designed to make aggregated and disaggregated student growth and, under section 
462.33 	120B.11, subdivision 2, clause (2), student learning and outcome data on every school 
462.34 	and district available to parents, teachers, administrators, community members, and the 
462.35 	general public, consistent with this section.
463.1 		Subd. 3.State growth target; other state measures. (a)(1) The state's educational 
463.2 	assessment system measuring individual students' educational growth is based on 
463.3 	indicators of achievement growth that show an individual student's prior achievement. 
463.4 	Indicators of achievement and prior achievement must be based on highly reliable 
463.5 	statewide or districtwide assessments.
463.6 	(2) For purposes of paragraphs (b), (c), and (d), the commissioner must analyze and 
463.7 	report separate categories of information using the student categories identified under 
463.8 	the federal Elementary and Secondary Education Act, as most recently reauthorized 
463.9 	and, in addition to the Karen community, other student categories as determined by the 
463.10 	total Minnesota population at or above the 1,000-person threshold based on the most 
463.11 	recent decennial census, including ethnicity; race; refugee status; English learners under 
463.12 	section 124D.59; home language; free or reduced-price lunch; immigrant; and all students 
463.13 	enrolled in a Minnesota public school who are currently or were previously in foster care, 
463.14 	except that such disaggregation and cross tabulation is not required if the number of 
463.15 	students in a category is insufficient to yield statistically reliable information or the results 
463.16 	would reveal personally identifiable information about an individual student.
463.17 	(b) The commissioner, in consultation with a stakeholder group that includes 
463.18 	assessment and evaluation directors, district staff, experts in culturally responsive teaching, 
463.19 	and researchers, must implement a model that uses a value-added growth indicator and 
463.20 	includes criteria for identifying schools and school districts that demonstrate medium and 
463.21 	high growth under section 120B.299, subdivisions 8 and 9, and may recommend other 
463.22 	value-added measures under section 120B.299, subdivision 3. The model may be used 
463.23 	to advance educators' professional development and replicate programs that succeed in 
463.24 	meeting students' diverse learning needs. Data on individual teachers generated under the 
463.25 	model are personnel data under section 13.43. The model must allow users to:
463.26 	(1) report student growth consistent with this paragraph; and
463.27 	(2) for all student categories, report and compare aggregated and disaggregated state 
463.28 	student growth and, under section 120B.11, subdivision 2, clause (2), student learning 
463.29 	and outcome data using the nine student categories identified under the federal 2001 No 
463.30 	Child Left Behind Act and two student gender categories of male and female, respectively, 
463.31 	following appropriate reporting practices to protect nonpublic student data Elementary 
463.32 	and Secondary Education Act, as most recently reauthorized, and other student categories 
463.33 	under paragraph (a), clause (2).
463.34 	The commissioner must report measures of student growth and, under section 
463.35 	120B.11, subdivision 2, clause (2), student learning and outcome data, consistent with 
463.36 	this paragraph, including the English language development, academic progress, and oral 
464.1 	academic development of English learners and their native language development if the 
464.2 	native language is used as a language of instruction, and include data on all pupils enrolled 
464.3 	in a Minnesota public school course or program who are currently or were previously 
464.4 	counted as an English learner under section 124D.59.
464.5 	(c) When reporting student performance under section 120B.36, subdivision 1, the 
464.6 	commissioner annually, beginning July 1, 2011, must report two core measures indicating 
464.7 	the extent to which current high school graduates are being prepared for postsecondary 
464.8 	academic and career opportunities:
464.9 	(1) a preparation measure indicating the number and percentage of high school 
464.10 	graduates in the most recent school year who completed course work important to 
464.11 	preparing them for postsecondary academic and career opportunities, consistent with 
464.12 	the core academic subjects required for admission to Minnesota's public colleges and 
464.13 	universities as determined by the Office of Higher Education under chapter 136A; and
464.14 	(2) a rigorous coursework measure indicating the number and percentage of high 
464.15 	school graduates in the most recent school year who successfully completed one or more 
464.16 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
464.17 	options including concurrent enrollment, other rigorous courses of study under section 
464.18 	120B.021, subdivision 1a, or industry certification courses or programs.
464.19 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
464.20 	analyze and report separate categories of information using the nine student categories 
464.21 	identified under the federal 2001 No Child Left Behind Act and two student gender 
464.22 	categories of male and female, respectively, following appropriate reporting practices to 
464.23 	protect nonpublic student data Elementary and Secondary Education Act, as most recently 
464.24 	reauthorized, and other student categories under paragraph (a), clause (2).
464.25 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
464.26 	commissioner annually, beginning July 1, 2014, must report summary data on school 
464.27 	safety and students' engagement and connection at school, consistent with the student 
464.28 	categories identified under paragraph (a), clause (2). The summary data under this 
464.29 	paragraph are separate from and must not be used for any purpose related to measuring 
464.30 	or evaluating the performance of classroom teachers. The commissioner, in consultation 
464.31 	with qualified experts on student engagement and connection and classroom teachers, 
464.32 	must identify highly reliable variables that generate summary data under this paragraph. 
464.33 	The summary data may be used at school, district, and state levels only. Any data on 
464.34 	individuals received, collected, or created that are used to generate the summary data 
464.35 	under this paragraph are nonpublic data under section 13.02, subdivision 9.
465.1 	(e) For purposes of statewide educational accountability, the commissioner must 
465.2 	identify and report measures that demonstrate the success of learning year program 
465.3 	providers under sections 123A.05 and 124D.68, among other such providers, in improving 
465.4 	students' graduation outcomes. The commissioner, beginning July 1, 2015, must annually 
465.5 	report summary data on:
465.6 	(1) the four- and six-year graduation rates of students under this paragraph;
465.7 	(2) the percent of students under this paragraph whose progress and performance 
465.8 	levels are meeting career and college readiness benchmarks under section 120B.30, 
465.9 	subdivision 1; and
465.10 	(3) the success that learning year program providers experience in:
465.11 	(i) identifying at-risk and off-track student populations by grade;
465.12 	(ii) providing successful prevention and intervention strategies for at-risk students;
465.13 	(iii) providing successful recuperative and recovery or reenrollment strategies for 
465.14 	off-track students; and
465.15 	(iv) improving the graduation outcomes of at-risk and off-track students.
465.16 	The commissioner may include in the annual report summary data on other education 
465.17 	providers serving a majority of students eligible to participate in a learning year program.
465.18 	(f) The commissioner, in consultation with recognized experts with knowledge and 
465.19 	experience in assessing the language proficiency and academic performance of all English 
465.20 	learners enrolled in a Minnesota public school course or program who are currently or were 
465.21 	previously counted as an English learner under section 124D.59, must identify and report 
465.22 	appropriate and effective measures to improve current categories of language difficulty and 
465.23 	assessments, and monitor and report data on students' English proficiency levels, program 
465.24 	placement, and academic language development, including oral academic language.
465.25 		Subd. 4.Improving schools. Consistent with the requirements of this section, 
465.26 	beginning June 20, 2012, the commissioner of education must annually report to the 
465.27 	public and the legislature best practices implemented in those schools that demonstrate 
465.28 	high growth compared to the state growth target are identified as high performing under 
465.29 	federal expectations.
465.30 		Subd. 5.Improving graduation rates for students with emotional or behavioral 
465.31 	disorders. (a) A district must develop strategies in conjunction with parents of students 
465.32 	with emotional or behavioral disorders and the county board responsible for implementing 
465.33 	sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in 
465.34 	school, when the district has a drop-out rate for students with an emotional or behavioral 
465.35 	disorder in grades 9 through 12 exceeding 25 percent.
466.1 	(b) A district must develop a plan in conjunction with parents of students with 
466.2 	emotional or behavioral disorders and the local mental health authority to increase the 
466.3 	graduation rates of students with emotional or behavioral disorders. A district with a 
466.4 	drop-out rate for children with an emotional or behavioral disturbance in grades 9 through 
466.5 	12 that is in the top 25 percent of all districts shall submit a plan for review and oversight 
466.6 	to the commissioner.

466.7 	EFFECTIVE DATE. This section is effective for the 2017-2018 school year and 
466.8 	later.

466.9 	Sec. 26. Minnesota Statutes 2014, section 120B.36, as amended by Laws 2015, First 
466.10 	Special Session chapter 3, article 2, section 8, is amended to read:
466.11 	120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
466.12 		Subdivision 1.School performance reports. (a) The commissioner shall report 
466.13 	student academic performance data under section 120B.35, subdivision subdivisions
466.14 	2 and 3; the percentages of students showing low, medium, and high growth under 
466.15 	section 120B.35, subdivision 3, paragraph (b); school safety and student engagement and 
466.16 	connection under section 120B.35, subdivision 3, paragraph (d); rigorous coursework 
466.17 	under section 120B.35, subdivision 3, paragraph (c); the percentage of students under 
466.18 	section 120B.35, subdivision 3, paragraph (b), clause (2), whose progress and performance 
466.19 	levels are meeting career and college readiness benchmarks under sections 120B.30, 
466.20 	subdivision 1, and 120B.35, subdivision 3, paragraph (e); longitudinal data on the progress 
466.21 	of eligible districts in reducing disparities in students' academic achievement and realizing 
466.22 	racial and economic integration under section 124D.861; the acquisition of English, 
466.23 	and where practicable, native language academic literacy, including oral academic 
466.24 	language, and the academic progress of all English learners under section 124D.59, 
466.25 	subdivisions 2 and 2a enrolled in a Minnesota public school course or program who are 
466.26 	currently or were previously counted as English learners under section 124D.59; two 
466.27 	separate student-to-teacher ratios that clearly indicate the definition of teacher consistent 
466.28 	with sections 122A.06 and 122A.15 for purposes of determining these ratios; staff 
466.29 	characteristics excluding salaries; student enrollment demographics; foster care status, 
466.30 	including all students enrolled in a Minnesota public school course or program who are 
466.31 	currently or were previously in foster care, student homelessness, and district mobility; 
466.32 	and extracurricular activities. The report also must indicate a school's adequate yearly 
466.33 	progress status under applicable federal law, and must not set any designations applicable 
466.34 	to high- and low-performing schools due solely to adequate yearly progress status.
467.1 	(b) The commissioner shall develop, annually update, and post on the department 
467.2 	Web site school performance reports.
467.3 	(c) The commissioner must make available performance reports by the beginning 
467.4 	of each school year.
467.5 	(d) A school or district may appeal its adequate yearly progress status in writing 
467.6 	to the commissioner within 30 days of receiving the notice of its status results in a form 
467.7 	and manner determined by the commissioner and consistent with federal law. The 
467.8 	commissioner's decision to uphold or deny an appeal is final.
467.9 	(e) School performance data are nonpublic data under section 13.02, subdivision 9, 
467.10 	until the commissioner publicly releases the data. The commissioner shall annually post 
467.11 	school performance reports to the department's public Web site no later than September 1, 
467.12 	except that in years when the reports reflect new performance standards, the commissioner 
467.13 	shall post the school performance reports no later than October 1.
467.14 		Subd. 2.Adequate yearly Student progress and other data. (a) All data the 
467.15 	department receives, collects, or creates under section 120B.11, governing the world's 
467.16 	best workforce or to determine adequate yearly progress status under Public Law 107-110, 
467.17 	section 1116 federal expectations under the most recently reauthorized Elementary and 
467.18 	Secondary Education Act, set state growth targets, and determine student growth, learning, 
467.19 	and outcomes under section 120B.35 are nonpublic data under section 13.02, subdivision 
467.20 	9, until the commissioner publicly releases the data.
467.21 	(b) Districts must provide parents sufficiently detailed summary data to permit 
467.22 	parents to appeal under Public Law 107-110, section 1116(b)(2) the most recently 
467.23 	reauthorized federal Elementary and Secondary Education Act. The commissioner shall 
467.24 	annually post federal adequate yearly progress data expectations and state student growth, 
467.25 	learning, and outcome data to the department's public Web site no later than September 1, 
467.26 	except that in years when adequate yearly progress reflects data or federal expectations 
467.27 	reflect new performance standards, the commissioner shall post federal adequate yearly 
467.28 	progress data on federal expectations and state student growth data no later than October 1.

467.29 	EFFECTIVE DATE. This section is effective for the 2017-2018 school year and 
467.30 	later.

467.31 	Sec. 27. [121A.065] DISTRICT SURVEYS TO COLLECT STUDENT 
467.32 	INFORMATION; PARENT NOTICE AND OPPORTUNITY FOR OPTING OUT.
467.33 	(a) School districts and charter schools, in consultation with parents, must develop 
467.34 	and adopt policies on conducting student surveys and using and distributing personal 
468.1 	information on students collected from the surveys. School districts and charter schools 
468.2 	must:
468.3 	(1) directly notify parents of these policies at the beginning of each school year and 
468.4 	after making any substantive policy changes;
468.5 	(2) inform parents at the beginning of the school year if the district or school has 
468.6 	identified specific or approximate dates for administering surveys and give parents 
468.7 	reasonable notice of planned surveys scheduled after the start of the school year;
468.8 	(3) give parents direct, timely notice, by United States mail, e-mail, or other direct 
468.9 	form of communication, when their students are scheduled to participate in a student 
468.10 	survey; and
468.11 	(4) give parents the opportunity to review the survey and to opt their students out of 
468.12 	participating in the survey.
468.13 	(b) School districts and charter schools must not impose an academic or other 
468.14 	penalty upon a student who opts out of participating in a survey under paragraph (a).

468.15 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
468.16 	later.

468.17 	Sec. 28. Minnesota Statutes 2014, section 121A.53, is amended to read:
468.18 	121A.53 REPORT TO COMMISSIONER OF EDUCATION.
468.19 		Subdivision 1.Exclusions and expulsions; physical assaults. The school board 
468.20 	must report through the department electronic reporting system each exclusion or 
468.21 	expulsion and each physical assault of a district employee by a student within 30 days 
468.22 	of the effective date of the dismissal action or assault to the commissioner of education. 
468.23 	This report must include a statement of alternative educational services, or other sanction, 
468.24 	intervention, or resolution in response to the assault given the pupil and the reason for, 
468.25 	the effective date, and the duration of the exclusion or expulsion or other sanction, 
468.26 	intervention, or resolution. The report must also include the student's age, grade, gender, 
468.27 	race, and special education status.
468.28 		Subd. 2.Report. (a) The school board must include state student identification 
468.29 	numbers of affected pupils on all dismissal and other disciplinary reports required by the 
468.30 	department. The department must report annually to the commissioner summary data on the 
468.31 	number of dismissals and physical assaults of district employees by a student by age, grade, 
468.32 	gender, race, and special education status of the affected pupils. All dismissal and other 
468.33 	disciplinary reports must be submitted through the department electronic reporting system.
469.1 	(b) The commissioner must aggregate the district data reported under this section and 
469.2 	include the aggregated data, including aggregated data on physical assaults of a district 
469.3 	employee by a student, in the annual school performance reports under section 120B.36.

469.4 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
469.5 	later.

469.6 	Sec. 29. Minnesota Statutes 2014, section 121A.61, subdivision 3, is amended to read:
469.7 		Subd. 3.Policy components. The policy must include at least the following 
469.8 	components:
469.9 	(a) rules governing student conduct and procedures for informing students of the 
469.10 	rules;
469.11 	(b) the grounds for removal of a student from a class;
469.12 	(c) the authority of the classroom teacher to remove students from the classroom 
469.13 	pursuant to procedures and rules established in the district's policy;
469.14 	(d) the procedures for removal of a student from a class by a teacher, school 
469.15 	administrator, or other school district employee;
469.16 	(e) the period of time for which a student may be removed from a class, which may 
469.17 	not exceed five class periods for a violation of a rule of conduct;
469.18 	(f) provisions relating to the responsibility for and custody of a student removed 
469.19 	from a class;
469.20 	(g) the procedures for return of a student to the specified class from which the 
469.21 	student has been removed;
469.22 	(h) the procedures for notifying a student and the student's parents or guardian of 
469.23 	violations of the rules of conduct and of resulting disciplinary actions;
469.24 	(i) any procedures determined appropriate for encouraging early involvement of 
469.25 	parents or guardians in attempts to improve a student's behavior;
469.26 	(j) any procedures determined appropriate for encouraging early detection of 
469.27 	behavioral problems;
469.28 	(k) any procedures determined appropriate for referring a student in need of special 
469.29 	education services to those services;
469.30 	(1) the procedures for consideration of whether there is a need for a further 
469.31 	assessment or of whether there is a need for a review of the adequacy of a current 
469.32 	individualized education program of a student with a disability who is removed from class;
469.33 	(m) procedures for detecting and addressing chemical abuse problems of a student 
469.34 	while on the school premises;
469.35 	(n) the minimum consequences for violations of the code of conduct;
470.1 	(o) procedures for immediate and appropriate interventions tied to violations of 
470.2 	the code;
470.3 	(p) a provision that states that a teacher, school employee, school bus driver, or 
470.4 	other agent of a district may use reasonable force in compliance with section 121A.582
470.5 	and other laws; and
470.6 	(q) an agreement regarding procedures to coordinate crisis services to the extent 
470.7 	funds are available with the county board responsible for implementing sections 245.487
470.8 	to 245.4889 for students with a serious emotional disturbance or other students who 
470.9 	have an individualized education program whose behavior may be addressed by crisis 
470.10 	intervention; and
470.11 	(r) a provision that states a student must be removed from class immediately if the 
470.12 	student engages in assault or violent behavior. For purposes of this paragraph, "assault" 
470.13 	has the meaning given it in section 609.02, subdivision 10. The removal shall be for a 
470.14 	period of time deemed appropriate by the principal, in consultation with the teacher.

470.15 	Sec. 30. Minnesota Statutes 2014, section 121A.64, is amended to read:
470.16 	121A.64 NOTIFICATION; TEACHERS' LEGITIMATE EDUCATIONAL 
470.17 	INTEREST.
470.18 	(a) A classroom teacher has a legitimate educational interest in knowing which 
470.19 	students placed in the teacher's classroom have a history of violent behavior, including any 
470.20 	documented physical assault of a district employee by the student, and must be notified 
470.21 	before such students are placed in the teacher's classroom.
470.22 	(b) Representatives of the school board and the exclusive representative of the 
470.23 	teachers shall discuss issues related to the model policy on student records adopted under 
470.24 	Laws 1999, chapter 241, article 9, section 50, and any modifications adopted under Laws 
470.25 	2003, First Special Session chapter 9, for notifying classroom teachers and other school 
470.26 	district employees having a legitimate educational interest in knowing about students with 
470.27 	a history of violent behavior, including any documented physical assault of a district 
470.28 	employee by students placed in classrooms. The representatives of the school board and 
470.29 	the exclusive representative of the teachers also may discuss the need for intervention 
470.30 	services or conflict resolution or training for staff related to placing students with a history 
470.31 	of violent behavior in teachers' classrooms.

470.32 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
470.33 	later.

471.1 	Sec. 31. Minnesota Statutes 2014, section 123B.045, is amended by adding a 
471.2 	subdivision to read:
471.3 		Subd. 2a.Teacher-governed schools; grants. (a) Consistent with subdivision 1 
471.4 	authorizing a school board to agree to assign certain autonomies and responsibilities to a 
471.5 	school site, and subject to a memorandum of understanding between the school board and 
471.6 	the exclusive representative of the teachers, a grant program is established to encourage 
471.7 	licensed teachers employed at a school site to explore and develop organizational models 
471.8 	for teaching and learning; provide curriculum and corresponding formative, interim, and 
471.9 	summative assessments; measure and evaluate teacher performance; assign teaching 
471.10 	positions and restructure instructional work; provide professional development to support  
471.11 	teachers restructuring their work; allocate revenue; assert autonomy and leadership; and  
471.12 	pursue other such policies, strategies, and activities for creating teacher-governed schools.
471.13 	(b) The commissioner, after receiving documentation of the approved agreement 
471.14 	between the parties under subdivision 1, paragraph (d), shall award grants on a first-come, 
471.15 	first-served basis until appropriated funds are expended according to this paragraph:
471.16 	(1) a planning grant of up to $50,000 during the first year of the parties' agreement; and
471.17 	(2) an implementation grant of up to $100,000 during each of the next two years  
471.18 	of the parties' agreement.
471.19 	(c) A grant recipient that terminates an agreement before the end of a school year 
471.20 	must return a pro rata portion of the grant to the commissioner, the amount of which 
471.21 	the commissioner must determine based upon the number of school days remaining in 
471.22 	the school year after the agreement is terminated. Grant recipients are encouraged to 
471.23 	seek matching funds or in-kind contributions from nonstate sources to supplement the 
471.24 	grant awards.
471.25 	(d) A school district receiving a grant must transmit to the commissioner in an 
471.26 	electronic format and post on its Web site by the end of the school year readily accessible 
471.27 	information about recommended best practices based on its experience and progress under 
471.28 	this section. The commissioner must make information about these recommended best 
471.29 	practices readily available to interested districts and schools throughout Minnesota.

471.30 	Sec. 32. Minnesota Statutes 2014, section 124D.03, subdivision 5a, is amended to read:
471.31 		Subd. 5a.Lotteries. If a school district has more applications than available seats at 
471.32 	a specific grade level, it must hold an impartial lottery following the January 15 deadline 
471.33 	to determine which students will receive seats. Siblings of currently enrolled students and, 
471.34 	applications related to an approved integration and achievement plan, and children of the 
471.35 	school district's staff must receive priority in the lottery. The process for the school district 
472.1 	lottery must be established in school district policy, approved by the school board, and 
472.2 	posted on the school district's Web site.

472.3 	EFFECTIVE DATE. This section is effective the day following final enactment for 
472.4 	nonresident pupil applications not yet accepted or rejected by the school district.

472.5 	Sec. 33. Minnesota Statutes 2014, section 124D.15, subdivision 3a, is amended to read:
472.6 		Subd. 3a.Application and reporting requirements. (a) A school readiness 
472.7 	program provider must submit include  a biennial plan for approval by the commissioner 
472.8 	before receiving aid under section 124D.16. The plan must describe in the district's 
472.9 	world's best workforce plan under section 120B.11, describing how the school readiness 
472.10 	program meets the program requirements under subdivision 3. A school district by April 1 
472.11 	must submit the plan for approval by the commissioner in the form and manner prescribed 
472.12 	by the commissioner. One-half the districts must first submit the plan by April 1, 2006, 
472.13 	and one-half the districts must first submit the plan by April 1, 2007, as determined by 
472.14 	the commissioner.
472.15 	(b) Programs receiving school readiness funds annually must submit a report to 
472.16 	the department.

472.17 	EFFECTIVE DATE. This section is effective July 1, 2016.

472.18 	Sec. 34. Minnesota Statutes 2015 Supplement, section 124D.231, subdivision 2, 
472.19 	is amended to read:
472.20 		Subd. 2.Full-service community school program. (a) The commissioner shall 
472.21 	provide funding to eligible school sites to plan, implement, and improve full-service 
472.22 	community schools. Eligible school sites must meet one of the following criteria:
472.23 	(1) the school is on a development plan for continuous improvement under section 
472.24 	120B.35, subdivision 2; or
472.25 	(2) the school is in a district that has an achievement and integration plan approved 
472.26 	by the commissioner of education under sections 124D.861 and 124D.862.
472.27 	(b) An eligible school site may receive up to $100,000 $150,000 annually. School 
472.28 	sites receiving funding under this section shall hire or contract with a partner agency to 
472.29 	hire a site coordinator to coordinate services at each covered school site.
472.30 	(c) Of grants awarded, implementation funding of up to $20,000 must be available 
472.31 	for up to one year for planning for school sites. At the end of this period, the school must 
472.32 	submit a full-service community school plan, pursuant to paragraph (g). If the site decides 
472.33 	not to use planning funds, the plan must be submitted with the application.
473.1 	(d) The commissioner shall dispense the funds to consider additional school factors 
473.2 	when dispensing funds including: schools with significant populations of students 
473.3 	receiving free or reduced-price lunches. Schools with; significant homeless and highly 
473.4 	mobile students shall also be a priority. The commissioner must also dispense the funds in a 
473.5 	manner to ensurerates; and equity among urban, suburban, and greater Minnesota schools.
473.6 	(e) A school site must establish a school leadership team responsible for developing 
473.7 	school-specific programming goals, assessing program needs, and overseeing the process 
473.8 	of implementing expanded programming at each covered site. The school leadership team 
473.9 	shall have between 12 to 15 members and shall meet the following requirements:
473.10 	(1) at least 30 percent of the members are parents and 30 percent of the members 
473.11 	are teachers at the school site and must include the school principal and representatives 
473.12 	from partner agencies; and
473.13 	(2) the school leadership team must be responsible for overseeing the baseline 
473.14 	analyses under paragraph (f). A school leadership team must have ongoing responsibility 
473.15 	for monitoring the development and implementation of full-service community school 
473.16 	operations and programming at the school site and shall issue recommendations to schools 
473.17 	on a regular basis and summarized in an annual report. These reports shall also be made 
473.18 	available to the public at the school site and on school and district Web sites.
473.19 	(f) School sites must complete a baseline analysis prior to beginning programming 
473.20 	as a full-service community school. The analysis shall include:
473.21 	(1) a baseline analysis of needs at the school site, led by the school leadership team, 
473.22 	which shall include the following elements:
473.23 	(i) identification of challenges facing the school;
473.24 	(ii) analysis of the student body, including:
473.25 	(A) number and percentage of students with disabilities and needs of these students;
473.26 	(B) number and percentage of students who are English learners and the needs of 
473.27 	these students;
473.28 	(C) number of students who are homeless or highly mobile; and
473.29 	(D) number and percentage of students receiving free or reduced-price lunch and the 
473.30 	needs of these students;
473.31 	(iii) analysis of enrollment and retention rates for students with disabilities, 
473.32 	English learners, homeless and highly mobile students, and students receiving free or 
473.33 	reduced-price lunch;
473.34 	(iv) analysis of suspension and expulsion data, including the justification for such 
473.35 	disciplinary actions and the degree to which particular populations, including, but not 
473.36 	limited to, students of color, students with disabilities, students who are English learners, 
474.1 	and students receiving free or reduced-price lunch are represented among students subject 
474.2 	to such actions;
474.3 	(v) analysis of school achievement data disaggregated by major demographic 
474.4 	categories, including, but not limited to, race, ethnicity, English learner status, disability 
474.5 	status, and free or reduced-price lunch status;
474.6 	(vi) analysis of current parent engagement strategies and their success; and
474.7 	(vii) evaluation of the need for and availability of wraparound services, including, 
474.8 	but not limited to:
474.9 	(A) mechanisms for meeting students' social, emotional, and physical health needs, 
474.10 	which may include coordination of existing services as well as the development of new 
474.11 	services based on student needs; and
474.12 	(B) strategies to create a safe and secure school environment and improve school 
474.13 	climate and discipline, such as implementing a system of positive behavioral supports, and 
474.14 	taking additional steps to eliminate bullying;
474.15 	(2) a baseline analysis of community assets and a strategic plan for utilizing 
474.16 	and aligning identified assets. This analysis should include, but is not limited to, a 
474.17 	documentation of individuals in the community, faith-based organizations, community and 
474.18 	neighborhood associations, colleges, hospitals, libraries, businesses, and social service 
474.19 	agencies who may be able to provide support and resources; and
474.20 	(3) a baseline analysis of needs in the community surrounding the school, led by 
474.21 	the school leadership team, including, but not limited to:
474.22 	(i) the need for high-quality, full-day child care and early childhood education 
474.23 	programs;
474.24 	(ii) the need for physical and mental health care services for children and adults; and
474.25 	(iii) the need for job training and other adult education programming.
474.26 	(g) Each school site receiving funding under this section must establish at least two 
474.27 	of the following types of programming:
474.28 	(1) early childhood:
474.29 	(i) early childhood education; and
474.30 	(ii) child care services;
474.31 	(2) academic:
474.32 	(i) academic support and enrichment activities, including expanded learning time;
474.33 	(ii) summer or after-school enrichment and learning experiences;
474.34 	(iii) job training, internship opportunities, and career counseling services;
474.35 	(iv) programs that provide assistance to students who have been truant, suspended, 
474.36 	or expelled; and
475.1 	(v) specialized instructional support services;
475.2 	(3) parental involvement:
475.3 	(i) programs that promote parental involvement and family literacy, including the 
475.4 	Reading First and Early Reading First programs authorized under part B of title I of the 
475.5 	Elementary and Secondary Education Act of 1965, United States Code, title 20, section 
475.6 	6361, et seq.;
475.7 	(ii) parent leadership development activities; and
475.8 	(iii) parenting education activities;
475.9 	(4) mental and physical health:
475.10 	(i) mentoring and other youth development programs, including peer mentoring and 
475.11 	conflict mediation;
475.12 	(ii) juvenile crime prevention and rehabilitation programs;
475.13 	(iii) home visitation services by teachers and other professionals;
475.14 	(iv) developmentally appropriate physical education;
475.15 	(v) nutrition services;
475.16 	(vi) primary health and dental care; and
475.17 	(vii) mental health counseling services;
475.18 	(5) community involvement:
475.19 	(i) service and service-learning opportunities;
475.20 	(ii) adult education, including instruction in English as a second language; and
475.21 	(iii) homeless prevention services;
475.22 	(6) positive discipline practices; and
475.23 	(7) other programming designed to meet school and community needs identified in 
475.24 	the baseline analysis and reflected in the full-service community school plan.
475.25 	(h) The school leadership team at each school site must develop a full-service 
475.26 	community school plan detailing the steps the school leadership team will take, including:
475.27 	(1) timely establishment and consistent operation of the school leadership team;
475.28 	(2) maintenance of attendance records in all programming components;
475.29 	(3) maintenance of measurable data showing annual participation and the impact 
475.30 	of programming on the participating children and adults;
475.31 	(4) documentation of meaningful and sustained collaboration between the school 
475.32 	and community stakeholders, including local governmental units, civic engagement 
475.33 	organizations, businesses, and social service providers;
475.34 	(5) establishment and maintenance of partnerships with institutions, such as 
475.35 	universities, hospitals, museums, or not-for-profit community organizations to further the 
475.36 	development and implementation of community school programming;
476.1 	(6) ensuring compliance with the district nondiscrimination policy; and
476.2 	(7) plan for school leadership team development.

476.3 	Sec. 35. Minnesota Statutes 2014, section 124D.59, is amended by adding a 
476.4 	subdivision to read:
476.5 		Subd. 9.English learner data. When data on English learners are reported for 
476.6 	purposes of educational accountability, English learner data must include all pupils 
476.7 	enrolled in a Minnesota public school course or program who are currently or were 
476.8 	previously counted as an English learner under this section. Reported data must be 
476.9 	disaggregated by currently counted and previously counted English learners.

476.10 	EFFECTIVE DATE. This section is effective for the 2017-2018 school year and 
476.11 	later.

476.12 	Sec. 36. Minnesota Statutes 2015 Supplement, section 124D.73, subdivision 4, is 
476.13 	amended to read:
476.14 		Subd. 4.Participating school; American Indian school. "Participating school" 
476.15 	and "American Indian school" mean a school that:
476.16 	(1) is not operated by a school district; and
476.17 	(2) is eligible for a grant under federal Title VII VI of the Elementary and Secondary 
476.18 	Education Act for the education of American Indian children.

476.19 	Sec. 37. [124D.8957] PREKINDERGARTEN THROUGH GRADE 12 
476.20 	PARENTAL RIGHTS CODED ELSEWHERE.
476.21 		Subdivision 1.Scope. The sections referred to in subdivisions 2 to 30 are codified 
476.22 	outside this section. Those sections include many but not all the sections governing 
476.23 	parental rights related to topics in prekindergarten through grade 12 education.
476.24 		Subd. 2.Compulsory instruction. Parental rights related to compulsory instruction, 
476.25 	including the right to withdraw a child from school; to receive notice related to transfer of 
476.26 	disciplinary records; to excuse a child from school for illnesses, appointments, or religious 
476.27 	events; and the right of noncustodial parents to access school records and conferences, 
476.28 	among other rights, are governed by section 120A.22.
476.29 		Subd. 3.Longitudinal data. The parental right to annual summary longitudinal 
476.30 	performance and progress data is governed by section 120B.31.
476.31 		Subd. 4.Antibullying. Parental rights related to school district antibullying 
476.32 	policies, including the right to be involved in developing the policies, the right to be 
477.1 	notified of incidents of prohibited conduct, and the right to be informed of data practices 
477.2 	laws, are governed by section 121A.031.
477.3 		Subd. 5.Student discipline policies. The parental right to notice in student 
477.4 	discipline policies of rights under the Safe and Supportive Minnesota Schools Act is 
477.5 	governed by section 121A.0311.
477.6 		Subd. 6.Early childhood development screening. Parental rights to certain notice 
477.7 	requirements related to early childhood development screening and to receive results of 
477.8 	early childhood development screening are governed by section 121A.17. The parental 
477.9 	right to provide consent before individual screening data may be disclosed to a school 
477.10 	district is governed by section 121A.18.
477.11 		Subd. 7.Chemical abuse. The parental right to be informed of a reported case of 
477.12 	chemical abuse by a minor student is governed by section 121A.26.
477.13 		Subd. 8.Pesticides. The parental right to be notified regarding the use of pesticides 
477.14 	at a school is governed by the Janet B. Johnson Parents' Right-to-Know Act under section 
477.15 	121A.30.
477.16 		Subd. 9.Student dismissal. The parental right to notice and a meeting regarding 
477.17 	the removal of a student for more than ten days is governed by section 121A.45.
477.18 		Subd. 10.Exclusion and expulsion. The parental right to be included in exclusion 
477.19 	or expulsion hearing procedures, including access to records, ability to testify and present 
477.20 	evidence, and inclusion in the student's readmission plan, is governed by section 121A.47.
477.21 		Subd. 11.Exclusion and expulsion appeal. The parental right to notice of the right 
477.22 	to appeal an exclusion or expulsion decision is governed by section 121A.49.
477.23 		Subd. 12.Reinstatement after termination of dismissal. The parental right to 
477.24 	notice of a student's right to be reinstated after the termination of dismissal is governed 
477.25 	by section 121A.54.
477.26 		Subd. 13.Interdistrict cooperation. The parental right to notice of an 
477.27 	informational school board meeting relating to discontinuing interdistrict cooperation 
477.28 	is governed by section 123A.32.
477.29 		Subd. 14.Background checks. The parental right to notice of a school's 
477.30 	background check policy for hiring teachers is governed by section 123B.03.
477.31 		Subd. 15.Textbook fees. The parental right to notice of a school board's policy to 
477.32 	charge fees for textbooks lost or destroyed by students is governed by section 123B.37.
477.33 		Subd. 16.Transportation privileges. The parental right to surrender a student's 
477.34 	privilege to receive transportation services from a school district is governed by section 
477.35 	123B.88.
478.1 		Subd. 17.Nonresident district policies. The parental right to receive notice of: a 
478.2 	decision on an application by a student to attend school in a nonresident district; the 
478.3 	transportation policies of the nonresident district; and the right to be reimbursed for costs 
478.4 	of transportation to the nonresident district's border are governed by section 124D.03.
478.5 		Subd. 18.Out-of-state districts. Under section 124D.04, the parental rights related 
478.6 	to a student attending a nonresident district under section 124D.03 apply to a student 
478.7 	attending an out-of-state district.
478.8 		Subd. 19.Free or reduced-price lunch eligibility. The parental right to opt a child 
478.9 	out of disclosing a child's eligibility for free or reduced-price lunch to the Department of 
478.10 	Education and the Department of Human Services is governed by section 124D.1115.
478.11 		Subd. 20.Learning year programs. The parental right to notice of optional 
478.12 	learning year programs is governed by section 124D.128.
478.13 		Subd. 21.English learners programs. Parental rights related to student enrollment 
478.14 	in programs for English learners, including notice, withdrawal, and parental involvement, 
478.15 	are governed by section 124D.60.
478.16 		Subd. 22.Charter school transportation. The parental right to receive 
478.17 	pupil transportation information from the charter school or school district providing 
478.18 	transportation services to a charter school student is governed by section 123B.88.
478.19 		Subd. 23.Services for children with disabilities. The parental right to be included 
478.20 	in determining the appropriate and necessary services for students with disabilities is 
478.21 	governed by section 125A.027.
478.22 		Subd. 24.Data on children with disabilities. The parental right to notice and 
478.23 	involvement regarding online reporting of data related to children with disabilities is 
478.24 	governed by section 125A.085.
478.25 		Subd. 25.Special education alternative dispute resolution. Parental rights 
478.26 	regarding notice, participation, and due process related to special education alternative 
478.27 	dispute resolution procedures are governed by section 125A.091.
478.28 		Subd. 26.Third-party reimbursement for children with disabilities. The 
478.29 	parental right to notice of a school district seeking reimbursement from medical assistance 
478.30 	or MinnesotaCare for services rendered to a student with a disability is governed by 
478.31 	section 125A.21.
478.32 		Subd. 27.Services provided to children with disabilities. Parental rights 
478.33 	related to services provided to students eligible for Part C services under the Individuals 
478.34 	with Disabilities Education Act and the right to receive written materials regarding the 
478.35 	implementation of Part C services are governed by sections 125A.42 and 125A.48. The 
479.1 	parental right to use mediation to resolve disputes under section 125A.42 is governed 
479.2 	by section 125A.43.
479.3 		Subd. 28.Minnesota State Academies discharge. The parental right to notice of a 
479.4 	student's discharge from the Minnesota State Academies is governed by section 125A.68.
479.5 		Subd. 29.Education records for military children. The parental right to education 
479.6 	records under the Interstate Compact on Educational Opportunity for Military Children 
479.7 	is governed by section 127A.85.
479.8 		Subd. 30.Appeal adverse school board decision. The parental right to appeal a 
479.9 	school board decision adversely affecting an academic program of an enrolled student is 
479.10 	governed by section 129C.10, subdivision 36.

479.11 	Sec. 38. Minnesota Statutes 2014, section 125A.56, subdivision 1, is amended to read:
479.12 		Subdivision 1.Requirement. (a) Before a pupil is referred for a special education 
479.13 	evaluation, the district must conduct and document at least two instructional strategies, 
479.14 	alternatives, or interventions using a system of scientific, research-based instruction and 
479.15 	intervention in academics or behavior, based on the pupil's needs, while the pupil is in the 
479.16 	regular classroom. The pupil's teacher must document the results. A special education 
479.17 	evaluation team may waive this requirement when it determines the pupil's need for the 
479.18 	evaluation is urgent. This section may not be used to deny a pupil's right to a special 
479.19 	education evaluation.
479.20 	(b) A school district shall use alternative intervention services, including the 
479.21 	assurance of mastery program under section 124D.66, or an early intervening services 
479.22 	program under subdivision 2 to serve at-risk pupils who demonstrate a need for alternative 
479.23 	instructional strategies or interventions.
479.24 	(c) A student identified as being unable to read at grade level under section 120B.12, 
479.25 	subdivision 2, paragraph (a), must be provided with alternate instruction under this 
479.26 	subdivision.

479.27 	Sec. 39. Minnesota Statutes 2014, section 127A.095, is amended to read:
479.28 	127A.095 IMPLEMENTATION OF NO CHILD LEFT BEHIND ACT 
479.29 	ELEMENTARY AND SECONDARY EDUCATION ACT.
479.30 		Subdivision 1.Continued implementation. The Department of Education shall 
479.31 	continue to implement the federal No Child Left Behind Act, Public Law 107-110, 
479.32 	Elementary and Secondary Education Act without interruption.
479.33 		Subd. 2.No Child Left Behind review. (a) The legislature intends to require 
479.34 	the Department of Education to conduct a comprehensive review of the consolidated 
480.1 	state plan the state submitted to the federal Department of Education to implement the 
480.2 	No Child Left Behind Act. The Minnesota Department of Education shall seek waivers 
480.3 	under paragraph (b). If the Department of Education is unable to obtain waivers under 
480.4 	paragraph (b), it should recommend in its report under paragraph (b) whether the state 
480.5 	should opt out of the No Child Left Behind Act.
480.6 	(b) The commissioner, by January 15, 2008, shall report to the house of 
480.7 	representatives and senate committees having jurisdiction over kindergarten through grade 
480.8 	12 education policy and finance whether the department has received approval from 
480.9 	the federal Department of Education to:
480.10 	(1) participate in the growth model pilot program;
480.11 	(2) exclude from sanctions schools that have not made adequate yearly progress due 
480.12 	solely to a subgroup of students with disabilities not testing at a proficient level;
480.13 	(3) identify a school as not making adequate yearly progress only after the school has 
480.14 	missed the adequate yearly progress targets in the same subgroup for two consecutive years;
480.15 	(4) determine when to hold schools accountable for including an English learner 
480.16 	in adequate yearly progress calculations;
480.17 	(5) allow a district not making adequate yearly progress to offer supplemental 
480.18 	educational services as an option before offering school choice;
480.19 	(6) allow a district not making adequate yearly progress to also be the supplemental 
480.20 	educational services provider;
480.21 	(7) allow the state to maintain a subgroup size to 40 for the purposes of calculating 
480.22 	adequate yearly progress for subgroups of English learners and subgroups of students 
480.23 	with disabilities; and
480.24 	(8) create flexibility to enable the state to define and identify highly qualified teachers.
480.25 		Subd. 3.Department of Management and Budget certification. If the federal 
480.26 	Department of Education does not transmit to the commissioner of education its approval 
480.27 	of the conditions in subdivision 2, paragraph (b), The commissioner of management and 
480.28 	budget shall certify and report to the legislature annually beginning January 1, 2008, the 
480.29 	amount of federal revenue, if any, that the federal government may withhold as a result 
480.30 	of a potential state decision to discontinue implementation of the No Child Left Behind 
480.31 	Act Elementary and Secondary Education Act. The report shall also specify the intended 
480.32 	purpose of the federal revenue and the amount of revenue that the federal government may 
480.33 	withhold from the state, each school district, and each charter school in each fiscal year.

480.34 	Sec. 40. Minnesota Statutes 2014, section 129C.10, subdivision 1, is amended to read:
481.1 		Subdivision 1.Governance. (a) The board of the Perpich Center for Arts Education 
481.2 	shall consist of 15 persons. The members of the board shall be appointed by the governor 
481.3 	with the advice and consent of the senate. At least one member must be appointed from 
481.4 	each congressional district.
481.5 	(b) All board members must complete board training requirements consistent with 
481.6 	section 127A.19.

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

481.8 	Sec. 41. Minnesota Statutes 2015 Supplement, section 136F.302, subdivision 1, 
481.9 	is amended to read:
481.10 		Subdivision 1.ACT college ready score; Minnesota Comprehensive Assessment 
481.11 	career and college ready benchmarks. A state college or university maymust not 
481.12 	require an individual to take a remedial, noncredit course in a subject area if the individual 
481.13 	has received a college ready ACT score or met a career and college ready Minnesota 
481.14 	Comprehensive Assessment benchmark in that subject area. Only the ACT and SAT 
481.15 	scores an individual received and the Minnesota Comprehensive Assessment benchmarks 
481.16 	an individual met in the previous five years are valid for purposes of this section. Each 
481.17 	state college and university must post notice of the exemption from remedial course taking 
481.18 	on its Web site explaining student course placement requirements.

481.19 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
481.20 	later.

481.21 	Sec. 42. [136F.3025] MINNESOTA COMPREHENSIVE ASSESSMENT 
481.22 	CAREER AND COLLEGE READY BENCHMARKS; REMEDIAL EDUCATION.
481.23 	(a) A state college or university must not require an individual to take a remedial, 
481.24 	noncredit course in a subject area if the individual has received a career and college ready 
481.25 	Minnesota Comprehensive Assessment benchmark in that subject area, consistent with 
481.26 	benchmarks established by the commissioner of education pursuant to section 120B.30, 
481.27 	subdivision 1, paragraph (m).
481.28 	(b) As part of the notification of high school students and their families under 
481.29 	section 120B.30, subdivision 1, paragraph (m), the commissioner shall include a statement 
481.30 	that students who receive a college ready benchmark on the high school MCA are not 
481.31 	required to take a remedial, noncredit course at a Minnesota state college or university in 
481.32 	the corresponding subject area.

482.1 	EFFECTIVE DATE. If the chancellor approves the career and college ready 
482.2 	benchmarks, paragraph (a) must be effective for the 2016-2017 school year, if practicable, 
482.3 	but no later than the 2017-2018 school year. If the chancellor does not approve the 
482.4 	benchmarks, paragraph (a) is effective upon the establishment of revised benchmarks. 
482.5 	Paragraph (b) is effective for the 2016-2017 school year and later.

482.6 	Sec. 43. Laws 2015, chapter 69, article 1, section 3, subdivision 28, is amended to read:

482.7
482.8	Subd. 28.Teacher Shortage Loan Forgiveness
 		200,000
		200,000
2,200,000
	
482.9 	For the loan forgiveness program under 
482.10 	Minnesota Statutes, section 136A.1791.
482.11 	The commissioner may use no more 
482.12 	than three percent of this appropriation 
482.13 	to administer the program under this 
482.14 	subdivision. The base for the program for 
482.15 	fiscal year 2018 and later is $200,000.

482.16 	EFFECTIVE DATE. This section is effective the day following final enactment, 
482.17 	and any unexpended funds in fiscal year 2017 do not cancel and remain available until 
482.18 	June 30, 2019.

482.19 	Sec. 44. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
482.20 	2, is amended to read:
482.21 		Subd. 2.Alternative compensation. For alternative teacher compensation aid 
482.22 	under Minnesota Statutes, section 122A.415, subdivision 4:

482.23
482.24		$
	78,331,000
78,907,000
	.....
	2016
	
482.25
482.26		$
	87,147,000
89,049,000
	.....
	2017
	
482.27 	The 2016 appropriation includes $7,766,000 for 2015 and $70,565,000 $71,141,000
482.28 	for 2016.
482.29 	The 2017 appropriation includes $7,840,000 $7,876,000 for 2016 and $79,307,000
482.30 	$81,173,000 for 2017.

482.31 	Sec. 45. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
482.32 	3, is amended to read:
483.1 		Subd. 3.Achievement and integration aid. For achievement and integration aid 
483.2 	under Minnesota Statutes, section 124D.862:

483.3
483.4		$
	65,539,000
65,439,000
	.....
	2016
	
483.5
483.6		$
	68,745,000
69,372,000
	.....
	2017
	
483.7 	The 2016 appropriation includes $6,382,000 for 2015 and $59,157,000 $59,057,000
483.8 	for 2016.
483.9 	The 2017 appropriation includes $6,573,000 $6,561,000 for 2016 and $62,172,000
483.10 	$62,811,000 for 2017.

483.11 	Sec. 46. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
483.12 	6, is amended to read:
483.13 		Subd. 6.Reading Corps. For grants to ServeMinnesota for the Minnesota Reading 
483.14 	Corps under Minnesota Statutes, section 124D.42, subdivision 8:

483.15		$
	6,125,000
	.....
	2016
	
483.16
483.17		$
	6,125,000
7,125,000
	.....
	2017
	
483.18 	Any balance in the first year does not cancel but is available in the second year. until 
483.19 	June 30, 2019. The base appropriation for fiscal year 2018 and later years is $5,625,000.

483.20 	Sec. 47. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
483.21 	12, is amended to read:
483.22 		Subd. 12.Collaborative urban educator. For the collaborative urban educator 
483.23 	grant program:

483.24		$
	780,000
	.....
	2016
	
483.25
483.26		$
	780,000 
1,090,000
	.....
	2017
	
483.27 	Grants shall be awarded in equal amounts: $195,000$272,500 each year is for the 
483.28 	Southeast Asian teacher program at Concordia University, St. Paul; $195,000$272,500 
483.29 	each year is for the collaborative urban educator program at the University of St. Thomas; 
483.30 	$195,000$272,500 each year is for the Center for Excellence in Urban Teaching at 
483.31 	Hamline University; and $195,00$272,500 each year is for the East Africa Student to 
483.32 	Teacher program at Augsburg College.
483.33 	Any balance in the first year does not cancel but is available in the second year.
483.34 	Each institution shall prepare for the legislature, by January 15 of each year, a 
483.35 	detailed report regarding the funds used. The report must include the number of teachers 
484.1 	prepared as well as the diversity for each cohort of teachers produced. The report must 
484.2 	also include the graduation rate for each cohort of teacher candidates, the placement rate 
484.3 	for each graduating cohort of teacher candidates, and the retention rate for each graduating 
484.4 	cohort of teacher candidates, among other program outcomes.
484.5 	The base appropriation for fiscal year 2018 and later is $780,000. Grants shall 
484.6 	be awarded in equal amounts: $195,000 each year is for the Southeast Asian teacher 
484.7 	program at Concordia University, St. Paul; $195,000 each year is for the collaborative 
484.8 	urban educator program at the University of St. Thomas; $195,000 each year is for the 
484.9 	Center for Excellence in Urban Teaching at Hamline University; and $195,000 each year 
484.10 	is for the East Africa Student to Teacher program at Augsburg College.

484.11 	Sec. 48. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
484.12 	15, is amended to read:
484.13 		Subd. 15.Museums and Education Centers. For grants to museums and education 
484.14 	centers:

484.15		$
	351,000
	.....
	2016
	
484.16
484.17		$
	351,000
401,000
	.....
	2017
	
484.18 	(a) $260,000 each year is for the Minnesota Children's Museum.
484.19 	(b) $50,000 each year is for the Duluth Children's Museum.
484.20 	(c) $41,000 each year is for the Minnesota Academy of Science.
484.21 	(d) $50,000 in fiscal year 2017 and later is for the Headwaters Science Center for 
484.22 	hands-on science, technology, engineering, and math (STEM) education.
484.23 	Any balance in the first year does not cancel but is available in the second year.
484.24 	The base in fiscal year 2018 is $401,000.

484.25 	Sec. 49. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
484.26 	19, is amended to read:
484.27 		Subd. 19.Full-service community schools. For full-service community schools 
484.28 	under Minnesota Statutes, section 124D.231:

484.29		$
	250,000
	.....
	2016
	
484.30
484.31		$
	250,000 
1,250,000
	.....
	2017
	
484.32 	This is a onetime appropriation.  Up to $50,000 each year is for administration of 
484.33 	this program. Any balance in the first year does not cancel but is available in the second 
484.34 	year. The base appropriation for fiscal year 2018 is $0.

485.1 	Sec. 50. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
485.2 	21, is amended to read:
485.3 		Subd. 21.American Indian teacher preparation grants. For joint grants to assist 
485.4 	American Indian people to become teachers under Minnesota Statutes, section 122A.63:

485.5		$
	190,000
	.....
	2016
	
485.6		$
	190,000460,000
	.....
	2017

485.7 	Sec. 51. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
485.8 	24, is amended to read:
485.9 		Subd. 24.Race 2 Reduce. For grants to support expanded Race 2 Reduce water 
485.10 	conservation programming in Minnesota schools:

485.11		$
	81,000
	.....
	2016
	
485.12
485.13		$
	69,000
219,000
	.....
	2017
	
485.14 	In the first year, $28,000 is for H2O for Life; $38,000 is for Independent School 
485.15 	District No. 624, White Bear Lake; and $15,000 is for Independent School District No. 
485.16 	832, Mahtomedi. In the second year, $32,000 $102,000 is for H2O for Life; $22,000
485.17 	$70,000 is for Independent School District No. 624, White Bear Lake; and $15,000
485.18 	$47,000 is for Independent School District No. 832, Mahtomedi.
485.19 	Any balance in the first year does not cancel but is available in the second year. The 
485.20 	base appropriation for fiscal year 2018 and later is $0 $307,000, and the commissioner 
485.21 	shall proportionately increase the grant amount to each recipient.

485.22 	Sec. 52. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
485.23 	26, is amended to read:
485.24 		Subd. 26.Education partnership pilots. (a) For education partnership pilot grants:

485.25		$
	501,000
	.....
	2016
	
485.26
485.27		$
	501,000 
531,000
	.....
	2017
	
485.28 	(b) Of this amount, $167,000 in fiscal year 2016 and $177,000 in each fiscal year 
485.29 	2017 is for the Northfield Healthy Community Initiative for a pilot site in Northfield; 
485.30 	$167,000 in fiscal year 2016 and $177,000 in each fiscal year 2017 is for the Jones Family 
485.31 	Foundation for a pilot site in Red Wing; and $167,000 in fiscal year 2016 and $177,000 in 
485.32 	each fiscal year 2017 is for Independent School District No. 742, St. Cloud, for a pilot 
485.33 	site in St. Cloud. Each partnership pilot program shall support community collaborations 
485.34 	focused on academic achievement and youth development, use a comprehensive and 
485.35 	data-driven approach to increase student success, and measure outcomes, such as 
486.1 	kindergarten readiness, reading proficiency at third grade, high school graduation, and 
486.2 	college and career readiness. By February 15, 2016, and by February 15 of every 
486.3 	subsequent even-numbered year, each partnership pilot grant recipient shall submit to 
486.4 	the chairs and ranking minority members of the legislative committees with primary 
486.5 	jurisdiction over kindergarten through grade 12 education a report describing the activities 
486.6 	funded by the grant, changes in outcome measures attributable to the grant-funded 
486.7 	activities, and the recipient's program plan for the following year.
486.8 	This is a onetime appropriation.
486.9 	(c) The base for this program is $0 for fiscal year 2018.
486.10 	(d) Any balance from the first year may carry forward into the second year.

486.11 	Sec. 53. Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision 
486.12 	6, is amended to read:
486.13 		Subd. 6.Northside Achievement Zone. For a grant to the Northside Achievement 
486.14 	Zone:

486.15		$
	1,200,000
	.....
	2016
	
486.16
486.17		$
	1,200,000
1,210,000
	.....
	2017
	
486.18 	Funds appropriated in this section are to reduce multigenerational poverty and the 
486.19 	educational achievement gap through increased enrollment of families within the zone, 
486.20 	and may be used for Northside Achievement Zone programming and services consistent 
486.21 	with federal Promise Neighborhood program agreements and requirements.
486.22 	The base for this program is $1,200,000 for fiscal year 2018 and later.

486.23 	Sec. 54. Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision 
486.24 	7, is amended to read:
486.25 		Subd. 7.St. Paul Promise Neighborhood. For a grant to the St. Paul Promise 
486.26 	Neighborhood:

486.27		$
	1,200,000
	.....
	2016
	
486.28
486.29		$
	1,200,000
1,210,000
	.....
	2017
	
486.30 	Funds appropriated in this section are to reduce multigenerational poverty and the 
486.31 	educational achievement gap through increased enrollment of families within the zone, 
486.32 	and may be used for St. Paul Promise Neighborhood programming and services consistent 
486.33 	with federal Promise Neighborhood program agreements and requirements.
486.34 	The base for this program is $1,200,000 for fiscal year 2018 and later.

487.1 	Sec. 55. AGRICULTURAL EDUCATOR GRANTS.
 487.2 		Subdivision 1.Grant program established. A grant program is established to 
487.3 	support school districts in paying agricultural education teachers for work over the 
487.4 	summer with high school students in extended projects.
487.5 		Subd. 2.Application. The commissioner of education shall develop the form and 
487.6 	method for applying for the grants. The commissioner shall develop criteria for determining 
487.7 	the allocation of the grants, including appropriate goals for the use of the grants.
487.8 		Subd. 3.Grant awards. Grant funding under this section must be matched 
487.9 	by funding from the school district for the agricultural education teacher's summer 
487.10 	employment. Grant funding for each teacher is limited to the one-half share of 40 working 
487.11 	days.
487.12 		Subd. 4.Reports. School districts that receive grant funds shall report to the 
487.13 	commissioner of education no later than December 31 of each year regarding the number 
487.14 	of teachers funded by the grant program and the outcomes compared to the goals 
487.15 	established in the grant application. The Department of Education shall develop the 
487.16 	criteria necessary for the reports.

487.17 	Sec. 56. SUPPORT OUR STUDENTS GRANT PROGRAM.
 487.18 		Subdivision 1.Definitions. For the purposes of this section, the following terms 
487.19 	have the meanings given them:
487.20 	(1) "student support services personnel" includes individuals licensed to serve as a 
487.21 	school counselor, school psychologist, school social worker, school nurse, or chemical 
487.22 	dependency counselor in Minnesota; and
487.23 	(2) "new position" means a student support services personnel full-time or part-time 
487.24 	position not under contract by a school at the start of the 2015-2016 school year.
487.25 		Subd. 2.Purpose. The purpose of the support our students grant program is to:
487.26 	(1) address shortages of student support services personnel within Minnesota schools;
487.27 	(2) decrease caseloads for existing student support services personnel to ensure 
487.28 	effective services;
487.29 	(3) ensure that students receive effective academic guidance and integrated and 
487.30 	comprehensive services to improve kindergarten through grade 12 school outcomes and 
487.31 	career and college readiness;
487.32 	(4) ensure that student support services personnel serve within the scope and practice 
487.33 	of their training and licensure;
487.34 	(5) fully integrate learning supports, instruction, and school management within a 
487.35 	comprehensive approach that facilitates interdisciplinary collaboration; and
488.1 	(6) improve school safety and school climate to support academic success and 
488.2 	career and college readiness.
488.3 		Subd. 3.Grant eligibility and application. (a) A school district, charter school, 
488.4 	intermediate school district, or other cooperative unit is eligible to apply for a six-year 
488.5 	matching grant under this section.
488.6 	(b) The commissioner of education shall specify the form and manner of the grant 
488.7 	application. In awarding grants, the commissioner must give priority to schools in 
488.8 	which student support services personnel positions do not currently exist. To the extent 
488.9 	practicable, the commissioner must award grants equally between applicants in metro 
488.10 	counties and nonmetro counties. Additional criteria must include at least the following:
488.11 	(1) existing student support services personnel caseloads;
488.12 	(2) school demographics;
488.13 	(3) Title I revenue;
488.14 	(4) Minnesota student survey data;
488.15 	(5) graduation rates; and
488.16 	(6) postsecondary completion rates.
488.17 		Subd. 4.Allowed uses; match requirements. A grant under this section must be 
488.18 	used to hire a new position. A school that receives a grant must match the grant with local 
488.19 	funds in each year of the grant. In each of the first four years of the grant, the local match 
488.20 	equals $1 for every $1 awarded in the same year. In years five and six of the grant, the 
488.21 	local match equals $3 for every $1 awarded in the same year. The local match may not 
488.22 	include federal reimbursements attributable to the new position.
488.23 		Subd. 5.Report required.  By February 1 following any fiscal year in which it 
488.24 	received a grant, a school must submit a written report to the commissioner indicating 
488.25 	how the new positions affected two or more of the following measures:
488.26 	(1) school climate;
488.27 	(2) attendance rates;
488.28 	(3) academic achievement;
488.29 	(4) career and college readiness; and
488.30 	(5) postsecondary completion rates.

488.31 	Sec. 57. STUDENT DISCIPLINE WORKING GROUP.
 488.32 	(a) A Student Discipline Working Group is created to review the substance, 
488.33 	application, and effect of Minnesota's Pupil Fair Dismissal Act under Minnesota Statutes, 
488.34 	sections 121A.40 to 121A.56, and related student discipline provisions in Minnesota 
488.35 	Statutes, chapter 121A, and submit written recommendations to the chairs and ranking 
489.1 	minority members of the committees in the house of representatives and the senate with 
489.2 	jurisdiction over education by February 1, 2017, on improving disciplinary policies, 
489.3 	practices, and procedures as they affect students and school officials and the effects on 
489.4 	student outcomes.
489.5 	(b) Consistent with paragraph (a), the working group must analyze:
489.6 	(1) available summary data on elementary and secondary students' removal from 
489.7 	class, suspensions, exclusions, and expulsions, disaggregated by categories of race, 
489.8 	ethnicity, poverty, disabilities, homelessness, English language proficiency, gender, age, 
489.9 	and foster care status;
489.10 	(2) the meaning and effect of "willful" in establishing grounds for dismissal under 
489.11 	Minnesota Statutes, section 121A.45;
489.12 	(3) the impact of student misconduct on teacher safety;
489.13 	(4) district and school policies and standards to ensure minority students and 
489.14 	English learners are not disproportionately determined eligible for special education 
489.15 	services, dismissed from school or otherwise disciplined, placed in settings other than 
489.16 	regular education classrooms, or dissuaded or otherwise prevented from taking rigorous 
489.17 	or challenging courses;
489.18 	(5) the impact of established policies and due process procedures on teacher safety 
489.19 	and student outcomes;
489.20 	(6) students' need for and access to professional support service providers such 
489.21 	as school counselors, school social workers, school psychologists, and mental health 
489.22 	professionals;
489.23 	(7) the presence of school resource officers in school buildings, their role in effecting 
489.24 	student discipline, and their impact on teacher safety and student outcomes;
489.25 	(8) policies for retaining and destroying student disciplinary data; 
489.26 	(9) best practices for school discipline; and
489.27 	(10) other related school discipline matters that are of concern to working group 
489.28 	members.
489.29 	(c) The working group consists of 21 members. By June 1, 2016, the executive 
489.30 	director of each of the following organizations shall appoint one representative of 
489.31 	that organization to serve as a member of the working group: the Minnesota School 
489.32 	Boards Association; the Minnesota Association of School Administrators; Education 
489.33 	Minnesota; the Minnesota Board of Peace Officer Standards and Training; the 
489.34 	Minnesota Disability Law Center; the National Alliance of Mental Illness Minnesota; 
489.35 	the Minnesota Association of Secondary School Principals; the Minnesota Elementary 
489.36 	School Principals' Association; the Association of Metropolitan School Districts; the 
490.1 	Minnesota Rural Education Association; the Minnesota School Counselors Association; 
490.2 	the Minnesota School Psychologists Association; the Parent Advocacy Coalition for 
490.3 	Educational Rights; Minnesota Administrators for Special Education; Schools for Equity 
490.4 	in Education; Minnesota Education Equity Partnership; Educators for Excellence; the 
490.5 	School Nurse Organization of Minnesota; the Minnesota Association of Charter Schools; 
490.6 	the Minnesota Youth Council; the Minnesota School Social Workers Association; and the 
490.7 	American Federation of State, County, and Municipal Employees (AFSCME). Working 
490.8 	group members must seek advice from experts and stakeholders in developing their 
490.9 	recommendations.
490.10 	(d) The commissioner of education, or the commissioner's designee, must convene 
490.11 	the first meeting of the working group. The working group must select a chair or cochairs 
490.12 	from among its members at the first meeting.  The working group must meet periodically. 
490.13 	The commissioner must provide technical and administrative assistance to the working 
490.14 	group upon request. Working group members are not eligible to receive expenses or per 
490.15 	diem payments for serving on the working group.
490.16 	(e) The working group expires February 2, 2017.

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

490.18 	Sec. 58. NORTHWEST REGIONAL PARTNERSHIP CONCURRENT 
490.19 	ENROLLMENT PROGRAM.
 490.20 		Subdivision 1.Definition. "Northwest Regional Partnership" means a voluntary 
490.21 	association of the Lakes Country Service Cooperative, the Northwest Service Cooperative, 
490.22 	and Minnesota State University-Moorhead that works together to provide coordinated 
490.23 	higher learning opportunities for teachers.
490.24 		Subd. 2.Establishment. Lakes Country Service Cooperative, in consultation with 
490.25 	the Northwest Service Cooperative, may develop a continuing education program to allow 
490.26 	eligible teachers to attain the requisite graduate credits necessary to be qualified to teach 
490.27 	secondary school courses for postsecondary credit.
490.28 		Subd. 3.Curriculum development. Minnesota State University-Moorhead may 
490.29 	develop an online education curriculum to allow eligible secondary school teachers to 
490.30 	attain graduate credit at a reduced credit rate.
490.31 		Subd. 4.Funding for course development; scholarships; stipends. Lakes 
490.32 	Country Service Cooperative, in consultation with the other members of the Northwest 
490.33 	Regional Partnership, shall:
490.34 	(1) provide funding for course development for up to 18 credits in applicable 
490.35 	postsecondary subject areas;
491.1 	(2) provide scholarships for eligible teachers to enroll in the continuing education 
491.2 	program; and
491.3 	(3) develop criteria for awarding educator stipends on a per-credit basis to 
491.4 	incentivize participation in the continuing education program.
491.5 		Subd. 5.Participant eligibility. Participation in the continuing education program 
491.6 	is reserved for teachers of secondary school courses for postsecondary credit. Priority 
491.7 	must be given to teachers employed by a school district that is a member of the Lakes 
491.8 	Country Service Cooperative or Northwest Service Cooperative. Teachers employed 
491.9 	by a school district that is not a member of the Lakes Country Service Cooperative or 
491.10 	Northwest Service Cooperative may participate in the continuing education program as 
491.11 	space allows. A teacher participating in this program is ineligible to participate in other 
491.12 	concurrent enrollment teacher training grant programs.
491.13 		Subd. 6.Private funding. The partnership may receive private resources to 
491.14 	supplement the available public money. All money received shall be administered by 
491.15 	the Lakes Country Service Cooperative.
491.16 		Subd. 7.Report required. Northwest Regional Partnership must submit an annual 
491.17 	report by January 15 of each year on the progress of its activities to the legislature, 
491.18 	commissioner of education, and Board of Trustees of the Minnesota State Colleges and 
491.19 	Universities. The annual report shall contain a financial report for the preceding year. The 
491.20 	first report is due no later than January 15, 2018.

491.21 	EFFECTIVE DATE. This section is effective July 1, 2016.

491.22 	Sec. 59. GRANTS TO STUDENT TEACHERS IN SHORTAGE AREAS.
 491.23 		Subdivision 1.Establishment. The commissioner of the Office of Higher Education 
491.24 	must establish a grant program for student teaching stipends for low-income students 
491.25 	enrolled in a Board of Teaching-approved teacher preparation program who are interested 
491.26 	in teaching in a high needs subject area or region after graduating and receiving their 
491.27 	teaching license. For purposes of this section, "high needs subject area or region" means a 
491.28 	shortage of teachers teaching in particular subject areas or a shortage of teachers teaching 
491.29 	in particular regions of the state identified in the commissioner of education's biennial 
491.30 	survey of districts under Minnesota Statutes, section 127A.05, subdivision 6, or in another 
491.31 	Department of Education survey on teacher shortages.
491.32 		Subd. 2.Eligibility. To be eligible for a grant under this section, a teacher candidate 
491.33 	must:
491.34 	(1) be enrolled in a Board of Teaching-approved teacher preparation program that 
491.35 	requires at least 12 weeks of student teaching and results in the teacher candidate receiving 
492.1 	a full professional teaching license enabling the licensee to teach in a high needs subject 
492.2 	area or region; and
492.3 	(2) demonstrate financial need based on criteria established by the commissioner 
492.4 	under subdivision 3.
492.5 		Subd. 3.Administration; repayment. (a) The commissioner must establish an 
492.6 	application process and other guidelines for implementing this program.
492.7 	(b) The commissioner must determine each academic year the stipend amount based 
492.8 	on the amount of available funding and the number of eligible applicants.

492.9 	EFFECTIVE DATE. This section is effective July 1, 2016.

492.10 	Sec. 60. MINNESOTA COMPREHENSIVE ASSESSMENT COLLEGE READY 
492.11 	BENCHMARKS; MINNESOTA STATE COLLEGES AND UNIVERSITIES 
492.12 	PARTICIPATION.
 492.13 	The chancellor of the Minnesota State Colleges and Universities must approve or 
492.14 	reject the empirically derived benchmarks for the high school Minnesota Comprehensive 
492.15 	Assessments established by the commissioner of education under Minnesota Statutes, 
492.16 	section 120B.30, subdivision 1, paragraph (m), no later than December 31, 2016. The 
492.17 	chancellor's approval or rejection must be made in writing to the commissioner and, if the 
492.18 	benchmarks are rejected, must describe the reasons for rejection and suggest appropriate 
492.19 	revisions. If the chancellor rejects the benchmarks, the commissioner must establish 
492.20 	revised benchmarks. The revised benchmarks must incorporate the chancellor's suggested 
492.21 	revisions.

492.22 	EFFECTIVE DATE. This section is effective the day following final enactment. 
492.23 	If the established benchmarks are approved by the chancellor, the benchmarks must be 
492.24 	effective for the 2016-2017 school year, if practicable, but no later than the 2017-2018 
492.25 	school year. If revised benchmarks are required, the benchmarks must be established and 
492.26 	made effective no later than the 2018-2019 school year.

492.27 	Sec. 61. CERTIFICATION INCENTIVE REVENUE.
 492.28 		Subdivision 1.Qualifying certificates. As soon as practicable, the commissioner 
492.29 	of education, in consultation with the Governor's Workforce Development Council 
492.30 	established under Minnesota Statutes, section 116L.665, and the P-20 education 
492.31 	partnership operating under Minnesota Statutes, section 127A.70, must establish the list of 
492.32 	qualifying career and technical certificates and post the names of those certificates on the 
493.1 	Department of Education's Web site. The certificates must be in fields where occupational 
493.2 	opportunities exist.
493.3 		Subd. 2.School district participation. (a) A school board may adopt a policy 
493.4 	authorizing its students in grades 9 through 12, including its students enrolled in 
493.5 	postsecondary enrollment options courses under Minnesota Statutes, section 124D.09, the 
493.6 	opportunity to complete a qualifying certificate. The certificate may be completed as part 
493.7 	of a regularly scheduled course.
493.8 	(b) A school district may register a student for any assessment necessary to complete 
493.9 	a qualifying certificate and pay any associated registration fees for its students.
493.10 		Subd. 3.Incentive funding. (a) A school district's career and technical certification 
493.11 	aid equals $500 times the district's number of students enrolled during the current fiscal 
493.12 	year who have obtained one or more qualifying certificates during the current fiscal year.
493.13 	(b) The statewide total certificate revenue must not exceed $1,000,000. The 
493.14 	commissioner must proportionately reduce the initial aid provided under this subdivision 
493.15 	so that the statewide aid cap is not exceeded.
493.16 		Subd. 4.Reports to the legislature. (a) The commissioner of education must 
493.17 	report to the committees of the legislature with jurisdiction over kindergarten through 
493.18 	grade 12 education and higher education by February 1, 2017, on the number and types 
493.19 	of certificates authorized for the 2016-2017 school year. The commissioner must also 
493.20 	recommend whether the pilot program should be continued.
493.21 	(b) By February 1, 2018, the commissioner of education must report to the 
493.22 	committees of the legislature with jurisdiction over kindergarten through grade 12 
493.23 	education and higher education about the number and types of certificates earned by 
493.24 	Minnesota's students during the 2016-2017 school year.

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

493.26 	Sec. 62. APPROPRIATIONS.
 493.27 		Subdivision 1.Department of Education. The sums indicated in this section are 
493.28 	appropriated from the general fund to the Department of Education for the fiscal years 
493.29 	designated.
493.30 		Subd. 2.Staff development grants for cooperative units. For payment of staff 
493.31 	development grants to intermediate school districts and other cooperative units providing 
493.32 	instruction to students in federal instructional settings of level 4 or higher:

494.1		$
	4,500,000
	.....
	2017
	
494.2 	This is a onetime appropriation. This appropriation is available until June 30, 
494.3 	2019. To the extent practicable, this appropriation should fund staff development grants 
494.4 	for intermediate school districts and other cooperative units for fiscal years 2017, 2018, 
494.5 	and 2019.
494.6 		Subd. 3.Support our students grants. For support our students grants:

494.7		$	
12,133,000
	.....
	2017
	
494.8 	This is a onetime appropriation.
494.9 	Notwithstanding Minnesota Statutes, section 16A.28, this appropriation is available 
494.10 	until June 30, 2022. The commissioner may not allot more than $2,407,000 of this 
494.11 	appropriation before July 1, 2017. Up to $100,000 of this appropriation may be retained 
494.12 	by the commissioner for administration of the grant program. Any balance remaining after 
494.13 	June 30, 2022, shall cancel to the general fund.
494.14 		Subd. 4.Northwest Regional Partnership concurrent enrollment program. For a 
494.15 	grant to the Lakes Country Service Cooperative to operate a continuing education program:

494.16		$
	3,000,000
	.....
	2017
	
494.17 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
494.18 		Subd. 5.Paraprofessional pathway to teacher licensure. For grants to school 
494.19 	districts for Grow Your Own new teacher programs:

494.20		$
	1,500,000
	.....
	2017
	
494.21 	The grants are for a first class city school district or any other school district with 
494.22 	more than 40 percent minority students to provide tuition scholarships or stipends to 
494.23 	eligible employees for a nonconventional teacher residency pilot program established 
494.24 	under Minnesota Statutes, section 122A.09, subdivision 10, paragraph (a). The program 
494.25 	shall provide tuition scholarships or stipends to enable education or teaching assistants 
494.26 	or other nonlicensed employees of a first class city school district or any other school 
494.27 	district with more than 40 percent minority students who hold a bachelor's degree from 
494.28 	an accredited college or university and who seek an education license to participate in a 
494.29 	Board of Teaching-approved nonconventional teacher residency program under Minnesota 
494.30 	Statutes, section 122A.09, subdivision 10, paragraph (a). Any funds not awarded by June 
494.31 	1, 2017, may be reallocated among the remaining districts if the total cost of the program 
494.32 	exceeds the original allocation. The base in fiscal year 2018 is $1,000,000.
494.33 		Subd. 6.Sanneh Foundation. For a grant to the Sanneh Foundation:

495.1		$
	1,500,000
	.....
	2017
	
495.2 	Funds appropriated in this section are to provide all-day, in-school, and after-school 
495.3 	academic and behavioral interventions for low-performing and chronically absent students 
495.4 	with a focus on low-income students and students of color throughout the school year and 
495.5 	during the summer to decrease absenteeism, encourage school engagement, and improve 
495.6 	grades and graduation rates. Funds appropriated in this section may be used to hire and 
495.7 	train staff in areas of youth mentorship, behavior support, and academic tutoring in group 
495.8 	and individual settings and to promote pathways for teachers of color.
495.9 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
495.10 		Subd. 7.Education Innovation Partners Cooperative Center. For a matching 
495.11 	grant to Education Innovation Partners Cooperative Center, No. 6091-50, to provide 
495.12 	research-based professional development services, on-site training, and leadership 
495.13 	coaching to teachers and other school staff:

495.14		$
	500,000
	.....
	2017
	
495.15 	A grant under this subdivision must be matched with money or in-kind contributions 
495.16 	from nonstate sources. This is a onetime appropriation.
495.17 		Subd. 8.Western Minnesota mobile manufacturing lab. For a transfer to the 
495.18 	Pine to Prairie Cooperative Center:

495.19		$
	900,000
	.....
	2017
	
495.20 	The funds in this subdivision must be used to establish a western Minnesota mobile 
495.21 	labs program, including manufacturing and welding labs to create interest in these careers 
495.22 	for secondary students. The program must be operated by Pine to Prairie Cooperative 
495.23 	Center in collaboration with Northland Community and Technical College, Lakes Country 
495.24 	Service Cooperative, and Minnesota State Community and Technical College.
495.25 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
495.26 		Subd. 9.Teacher-governed school grants. For grants to teacher-governed schools 
495.27 	under Minnesota Statutes, section 123B.045:

495.28		$
	500,000
	.....
	2017
	
495.29 	This is a onetime appropriation.
495.30 		Subd. 10.Girls in Action grant. For a grant to the Girls in Action program to 
495.31 	enable Girls in Action to continue to provide and to expand Twin Cities metropolitan area 
495.32 	school and community-based programs that encourage and support low-income girls, 
495.33 	including low-income girls of color, to graduate from high school on time, complete a 
496.1 	postsecondary preparation program, become community leaders, and participate in service 
496.2 	learning opportunities in their communities. Girls in Action must expend $500,000 of this 
496.3 	appropriation for community-based programs located in the Twin Cities metropolitan area:

496.4		$
	1,500,000
	.....
	2017
	
496.5 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
496.6 		Subd. 11.Student teachers in shortage areas. For transfer to the commissioner of 
496.7 	the Office of Higher Education for the purpose of providing grants to student teachers in 
496.8 	shortage areas under Minnesota Statutes, section 136A.1275:

496.9		$
	2,800,000
	.....
	2017
	
496.10 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
496.11 		Subd. 12.Minnesota Council on Economic Education. For a grant to the 
496.12 	Minnesota Council on Economic Education to provide staff development to teachers 
496.13 	for implementing the state graduation standards in learning areas relating to economic 
496.14 	education:

496.15		$
	250,000
	.....
	2017
	
496.16 	The commissioner, in consultation with the council, shall develop expectations for 
496.17 	staff development outcomes, eligibility criteria for participants, an evaluation procedure, 
496.18 	and guidelines for direct and in-kind contributions by the council.
496.19 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
496.20 		Subd. 13.Singing-based pilot program to improve student reading. (a) For a 
496.21 	grant to pilot a research-supported, computer-based educational program that uses singing 
496.22 	to improve the reading ability of students in grades 3 through 5:

496.23		$
	100,000
	.....
	2017
	
496.24 	(b) The commissioner of education shall award a grant to the Rock 'n' Read Project 
496.25 	to implement in at least three Minnesota school districts, charter schools, or school sites, a 
496.26 	research-supported, computer-based educational program that uses singing to improve 
496.27 	the reading ability of students in grades 3 through 5. The grantee shall be responsible 
496.28 	for selecting participating school sites; providing any required hardware and software, 
496.29 	including software licenses, for the duration of the grant period; providing technical 
496.30 	support, training, and staff to install required project hardware and software; providing 
496.31 	on-site professional development and instructional monitoring and support for school staff 
496.32 	and students; administering pre- and post-intervention reading assessments; evaluating 
496.33 	the impact of the intervention; and other project management services as required. To the 
497.1 	extent practicable, the grantee must select participating schools in urban, suburban, and 
497.2 	greater Minnesota, and give priority to schools in which a high proportion of students do 
497.3 	not read proficiently at grade level and are eligible for free or reduced-price lunch.
497.4 	(c) By February 15, 2017, the grantee must submit a report detailing expenditures 
497.5 	and outcomes of the grant to the commissioner of education and the chairs and 
497.6 	ranking minority members of the legislative committees with primary jurisdiction over 
497.7 	kindergarten through grade 12 education policy and finance.
497.8 	(d) This is a onetime appropriation.
497.9 		Subd. 14.Agricultural educator grants. For agricultural educator grants:

497.10		$
	250,000
	.....
	2017
	
497.11 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
497.12 		Subd. 15.Certificate incentive funding. For the certificate incentive program:

497.13		$
	1,000,000
	.....
	2017
	
497.14 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
497.15 		Subd. 16.Grants for vision therapy pilot project. (a) For a grant to Independent 
497.16 	School District No. 12, Centennial, to implement a neuro-optometric vision therapy 
497.17 	pilot project:

497.18		$
	200,000
	.....
	2017
	
497.19 	This is a onetime appropriation and is available until June 30, 2019.
497.20 	(b) In each year of the pilot project, second and third grade students identified by 
497.21 	a set of criteria created by the district shall be admitted into the pilot study. Identified 
497.22 	students shall have a comprehensive eye examination with written standard requirements 
497.23 	of testing. Students identified with a diagnosis of convergence insufficiency must undergo 
497.24 	a vision efficiency evaluation by a licensed optometrist or ophthalmologist trained in the 
497.25 	evaluation of learning-related vision problems. The results of this examination shall 
497.26 	determine whether a student will qualify for neuro-optometric vision therapy funded by 
497.27 	the grant. The parent or guardian of a student who qualifies for the pilot program under 
497.28 	this paragraph may submit a written notification to the school opting the student out 
497.29 	of the program. The district must establish guidelines to provide quality standards and 
497.30 	measures to ensure an appropriate diagnosis and treatment plan that is consistent with the 
497.31 	convergence insufficiency treatment trial study.
497.32 	(c) The commissioner of education must provide for an evaluation of the pilot 
497.33 	project and make a report to the legislative committees with jurisdiction over kindergarten 
497.34 	through grade 12 education policy and finance by January 15, 2020.
498.1 		Subd. 17.Southwest Minnesota State University special education 
498.2 	teacher education program. For the Southwest Minnesota State University special 
498.3 	education teacher education program to support Minnesota resident special education 
498.4 	paraprofessionals working toward licensure in an online program:

498.5		$
	385,000
	.....
	2017
	
498.6 	The base for this program in fiscal year 2018 is $0.
498.7 		Subd. 18.Student success grant. For a grant to Independent School District No. 
498.8 	272, Eden Prairie, for career and college readiness coordination, counseling, academic 
498.9 	support for middle and high school students, and summer activities and before and after 
498.10 	school tutoring programs:

498.11		$
	500,000
	.....
	2017
	
498.12 	This is a onetime appropriation. This appropriation is available until June 30, 2019.

498.13 	Sec. 63.  REPEALER.
 498.14 	(a) Minnesota Statutes 2014, sections 122A.413, subdivision 3; and 122A.43, 
498.15 	subdivision 6, are repealed.
498.16 	(b) Minnesota Statutes 2015 Supplement, section 122A.413, subdivisions 1 and 
498.17 	2, are repealed.

498.18 	ARTICLE 26
498.19 	CHARTER SCHOOL RECODIFICATION

498.20 	Section 1. Minnesota Statutes 2015 Supplement, section 124E.01, is amended to read:
498.21 	124E.01 PURPOSE AND APPLICABILITY.
498.22 		Subdivision 1.Purposes. The primary purpose of this chapter charter schools is to 
498.23 	improve all pupil learning and all student achievement. Additional purposes include to:
498.24 	(1) increase learning opportunities for all pupils;
498.25 	(2) encourage the use of different and innovative teaching methods;
498.26 	(3) measure learning outcomes and create different and innovative forms of 
498.27 	measuring outcomes;
498.28 	(4) establish new forms of accountability for schools; or
498.29 	(5) create new professional opportunities for teachers, including the opportunity to 
498.30 	be responsible for the learning program at the school site.
498.31 		Subd. 2.Applicability. This chapter applies only to charter schools formed and 
498.32 	operated under this chapter.

499.1 	Sec. 2. Minnesota Statutes 2015 Supplement, section 124E.02, is amended to read:
499.2 	124E.02 DEFINITIONS.
499.3 	(a) For purposes of this chapter, the terms defined in this paragraph section have 
499.4 	the meanings given them.
499.5 	"Application" to receive approval as an authorizer means the proposal an eligible 
499.6 	authorizer submits to the commissioner under section 124E.05  before that authorizer is 
499.7 	able to submit any affidavit to charter to a school.
499.8 	"Application" under section 124E.06 means the charter school business plan a 
499.9 	school developer submits to an authorizer for approval to establish a charter school that 
499.10 	documents the school developer's mission statement, school purposes, program design, 
499.11 	financial plan, governance and management structure, and background and experience, 
499.12 	plus any other information the authorizer requests. The application also shall include a 
499.13 	"statement of assurances" of legal compliance prescribed by the commissioner.
499.14 	(b) "Affidavit" means a written statement the authorizer submits to the commissioner 
499.15 	for approval to establish a charter school under section 124E.06, subdivision 4, attesting to 
499.16 	its review and approval process before chartering a school.
499.17 	(b) For purposes of this chapter:
499.18 	(1) "related party" means an affiliate or immediate relative of the other party in 
499.19 	question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
499.20 	(2) (c) "Affiliate" means a person that directly or indirectly, through one or more 
499.21 	intermediaries, controls, is controlled by, or is under common control with another person;.
499.22 	(d) "Control" means the ability to affect the management, operations, or policy actions 
499.23 	or decisions of a person, whether by owning voting securities, by contract, or otherwise.
499.24 	(3) (e) "Immediate family" means an individual whose relationship by blood, 
499.25 	marriage, adoption, or partnering partnership is no more remote than first cousin;.
499.26 	(4) (f) "Person" means an individual or entity of any kind; and.
499.27 	(5) "control" means the ability to affect the management, operations, or policy 
499.28 	actions or decisions of a person, whether through ownership of voting securities, by 
499.29 	contract, or otherwise.
499.30 	(g) "Related party" means an affiliate or immediate relative of the other interested 
499.31 	party, an affiliate of an immediate relative who is the other interested party, or an 
499.32 	immediate relative of an affiliate who is the other interested party.
499.33 	(h) For purposes of this chapter, the terms defined in section 120A.05 have the 
499.34 	same meanings.

500.1 	Sec. 3. Minnesota Statutes 2015 Supplement, section 124E.03, is amended to read:
500.2 	124E.03 APPLICABLE LAW.
500.3 		Subdivision 1.Public status; exemption from statutes and rules. A charter school 
500.4 	is a public school and is part of the state's system of public education. A charter school is 
500.5 	exempt from all statutes and rules applicable to a school, school board, or school district 
500.6 	unless a statute or rule is made specifically applicable to a charter school or is included 
500.7 	in this chapter.
500.8 		Subd. 2.General Certain federal, state, and local requirements. (a) A charter 
500.9 	school shall meet all federal, state, and local health and safety requirements applicable 
500.10 	to school districts.
500.11 	(b) A school must comply with statewide accountability requirements governing 
500.12 	standards and assessments in chapter 120B.
500.13 	(c) A charter school is subject to and must comply with the Minnesota Public School 
500.14 	Fee Law, sections 123B.34 to 123B.39.
500.15 	(d) A charter school is a district for the purposes of tort liability under chapter 466.
500.16 	(e) A charter school is subject to must comply with the Pledge of Allegiance 
500.17 	requirement under section 121A.11, subdivision 3.
500.18 	(f) A charter school and charter school board of directors are subject to must comply 
500.19 	with chapter 181 governing requirements for employment.
500.20 	(g) A charter school is subject to and must comply with continuing truant notification 
500.21 	under section 260A.03.
500.22 	(h) A charter school must develop and implement a teacher evaluation and peer 
500.23 	review process under section 122A.40, subdivision 8, paragraph (b), clauses (2) to 
500.24 	(13). The teacher evaluation process in this paragraph does not create any additional 
500.25 	employment rights for teachers.
500.26 	(i) A charter school must adopt a policy, plan, budget, and process, consistent with 
500.27 	section 120B.11, to review curriculum, instruction, and student achievement and strive 
500.28 	for the world's best workforce.
500.29 		Subd. 3.Pupils with a disability. A charter school must comply with sections 
500.30 	125A.02, 125A.03 to 125A.24, 125A.65, and 125A.75 and rules relating to the education 
500.31 	of pupils with a disability as though it were a district. A charter school enrolling 
500.32 	prekindergarten pupils with a disability under section 124E.11, paragraph (h), must 
500.33 	comply with sections 125A.259 to 125A.48 and rules relating to the Interagency Early 
500.34 	Intervention System as though it were a school district.
501.1 		Subd. 4.Students' rights and related law. (a) A charter school student must 
501.2 	be released release a student for religious instruction, consistent with section 120A.22, 
501.3 	subdivision 12, clause (3).
501.4 	(b) A charter school is subject to and must comply with chapter 363A governing the 
501.5 	Minnesota Human Rights Act and section 121A.04 governing student athletics and sex 
501.6 	discrimination in schools.
501.7 	(c) A charter school must comply with section 121A.031 governing policies on 
501.8 	prohibited conduct bullying.
501.9 		Subd. 5.Records, meetings, and data requirements. (a) A charter school must 
501.10 	comply with chapters chapter 13 and 13D governing government data; and sections 
501.11 	120A.22, subdivision 7;121A.75; governing access to juvenile justice records, and 
501.12 	260B.171, subdivisions 3 and 5, governing juvenile justice records.
501.13 	(b) A charter school must comply with section 120A.22, subdivision 7, governing 
501.14 	the transfer of students' educational records and sections 138.163 and 138.17 governing 
501.15 	the management of local records.
501.16 		Subd. 5a.Open meetings. A charter school must comply with chapter 13D 
501.17 	governing open meetings.
501.18 		Subd. 6.Length of school year. A charter school must provide instruction each 
501.19 	year for at least the number of hours required by section 120A.41. It may provide 
501.20 	instruction throughout the year according to under sections 124D.12 to 124D.127 or 
501.21 	124D.128 governing learning year programs.
501.22 		Subd. 7.Additional program-specific requirements. (a) A charter school offering 
501.23 	online courses or programs must comply with section 124D.095 governing online learning.
501.24 	(b) A charter school that provides early childhood health and developmental screening 
501.25 	must comply with sections 121A.16 to 121A.19 governing early childhood screening.
501.26 	(c) A charter school that provides school-sponsored youth athletic activities must 
501.27 	comply with section 121A.38 governing policies on concussions.

501.28 	Sec. 4. Minnesota Statutes 2015 Supplement, section 124E.05, is amended to read:
501.29 	124E.05 AUTHORIZERS.
501.30 		Subdivision 1.Eligible authorizers. (a) The following organizations in this 
501.31 	subdivision may authorize one or more charter schools:.
501.32 	(1) (b) A school board, intermediate school district school board, or education 
501.33 	district organized under sections 123A.15 to 123A.19; may authorize a charter school.
501.34 	(2) (c) A charitable organization under section 501(c)(3) of the Internal Revenue 
501.35 	Code of 1986, excluding a nonpublic sectarian or religious institution; any person other 
502.1 	than a natural person that directly or indirectly, through one or more intermediaries, 
502.2 	controls, is controlled by, or is under common control with the nonpublic sectarian or 
502.3 	religious institution; and any other charitable organization under this clause that in the 
502.4 	federal IRS Form 1023, Part IV, describes activities indicating a religious purpose, that 
502.5 	may authorize a charter school, if the organization:
502.6 	(i) (1) is a member of the Minnesota Council of Nonprofits or the Minnesota Council 
502.7 	on Foundations;
502.8 	(ii) (2) is registered with the attorney general's office; and
502.9 	(iii) (3) is incorporated in the state of Minnesota and has been operating continuously 
502.10 	for at least five years but does not operate a charter school; and
502.11 	(4) is not:
502.12 	(i) a nonpublic sectarian or religious institution;
502.13 	(ii) any person other than a natural person that directly or indirectly, through one 
502.14 	or more intermediaries, controls, is controlled by, or is under common control with the 
502.15 	nonpublic sectarian or religious institution; or
502.16 	(iii) any other charitable organization under this paragraph that in the federal IRS 
502.17 	Form 1023, Part IV, describes activities indicating a religious purpose.
502.18 	(3) (d) A Minnesota private college, notwithstanding clause (2), that grants two- or 
502.19 	four-year degrees and is registered with the Minnesota Office of Higher Education under 
502.20 	chapter 136A; may authorize a charter school, notwithstanding paragraph (c).
502.21 	(e)community college, A state  college or university, or technical college governed 
502.22 	by the Board of Trustees of the Minnesota State Colleges and Universities; or may 
502.23 	authorize a charter school.
502.24 	(f) The University of Minnesota; may authorize a charter school.
502.25 	(4) (g) A nonprofit corporation subject to chapter 317A, described in section 
502.26 	317A.905, and exempt from federal income tax under section 501(c)(6) of the Internal 
502.27 	Revenue Code of 1986, may authorize one or more charter schools if the charter school 
502.28 	has operated for at least three years under a different authorizer and if the nonprofit 
502.29 	corporation has existed for at least 25 years; or.
502.30 	(5) (h) A single-purpose authorizers authorizer formed as a charitable, nonsectarian 
502.31 	organizations organization under section 501(c)(3) of the Internal Revenue Code of 1986 
502.32 	and incorporated in the state of Minnesota under chapter 317A as a corporation with no 
502.33 	members or under section 322B.975 as a nonprofit limited liability company for the sole 
502.34 	purpose of chartering schools may authorize a charter school. An eligible organization 
502.35 	interested in being approved as an authorizer under this paragraph must submit a proposal 
502.36 	to the commissioner that includes the provisions of subdivision 3 and a five-year financial 
503.1 	plan. A single-purpose authorizer under this paragraph shall consider and approve 
503.2 	charter school applications using the criteria under section 124E.06 and shall not limit 
503.3 	the applications it solicits, considers, or approves to any single curriculum, learning 
503.4 	program, or method.
503.5 		Subd. 2.Requirements for authorizers. (a) Eligible organizations interested in 
503.6 	being approved as an authorizer under subdivision 1, clause (5), must submit a proposal to 
503.7 	the commissioner that includes the provisions of subdivision 3 and a five-year financial 
503.8 	plan. Such authorizers shall consider and approve charter school applications using 
503.9 	the criteria provided in section 124E.06 and shall not limit the applications it solicits, 
503.10 	considers, or approves to any single curriculum, learning program, or method.
503.11 	(b) The authorizer must participate in department-approved training.
503.12 		Subd. 3.Application process. (a) An eligible authorizer under this section must 
503.13 	apply to the commissioner for approval as an authorizer before submitting any affidavit to 
503.14 	the commissioner to charter a school. The application for approval as a charter school 
503.15 	authorizer must demonstrate show the applicant's ability to implement the procedures 
503.16 	and satisfy the criteria for chartering a school under this chapter. The commissioner 
503.17 	must approve or disapprove an the application within 45 business days of the application 
503.18 	deadline for that application period. If the commissioner disapproves the application, the 
503.19 	commissioner must notify the applicant of the specific deficiencies in writing and the 
503.20 	applicant then has 20 business days to address the deficiencies to the commissioner's 
503.21 	satisfaction. After the 20 business days expire, the commissioner has 15 business days 
503.22 	to make a final decision to approve or disapprove the application. Failing to address 
503.23 	the deficiencies to the commissioner's satisfaction makes an applicant ineligible to be 
503.24 	an authorizer. The commissioner, in establishing criteria for approval to approve an 
503.25 	authorizer, consistent with subdivision 4, must consider the applicant's:
503.26 	(1) capacity and infrastructure and capacity to serve as an authorizer;
503.27 	(2) application criteria and process;
503.28 	(3) contracting process;
503.29 	(4) ongoing oversight and evaluation processes; and
503.30 	(5) renewal criteria and processes.
503.31 	(b) A disapproved applicant under this section may resubmit an application during a 
503.32 	future application period.
503.33 		Subd. 4.Application content. To be approved as an authorizer, an applicant must 
503.34 	include in its application to the commissioner to be an approved authorizer at least the 
503.35 	following:
504.1 	(1) how the organization carries out its mission by chartering schools is a way for 
504.2 	the organization to carry out its mission;
504.3 	(2) a description of the capacity of the organization the organization's capacity to 
504.4 	serve as an authorizer, including the personnel who will perform the authorizing duties, 
504.5 	their qualifications, the amount of time they will be are assigned to this responsibility, and 
504.6 	the financial resources allocated by the organization allocates to this responsibility;
504.7 	(3) a description of the application and review process the authorizer will use uses to 
504.8 	make decisions regarding the granting of decide whether to grant charters;
504.9 	(4) a description of the type of contract it will arrange arranges with the schools it 
504.10 	charters that meets to meet the provisions of section 124E.10;
504.11 	(5) the process to be used for providing ongoing oversight of overseeing the school, 
504.12 	consistent with the contract expectations specified in clause (4) that assures, to ensure that 
504.13 	the schools chartered are complying comply with both the provisions of applicable law 
504.14 	and rules, and with the contract;
504.15 	(6) a description of the criteria and process the authorizer will use uses to grant 
504.16 	expanded approve applications adding grades or sites under section 124E.06, subdivision 5;
504.17 	(7) the process for making decisions regarding the renewal or termination of renewing 
504.18 	or terminating the school's charter based on evidence that demonstrates showing the 
504.19 	academic, organizational, and financial competency of the school, including its success in 
504.20 	increasing student achievement and meeting the goals of the charter school agreement; and
504.21 	(8) an assurance specifying that the organization is committed to serving as an 
504.22 	authorizer for the full five-year term.
504.23 		Subd. 5.Review by commissioner. The commissioner shall review an authorizer's 
504.24 	performance every five years in a manner and form determined by the commissioner and 
504.25 	may review an authorizer's performance more frequently at the commissioner's own 
504.26 	initiative or at the request of a charter school operator, charter school board member, or 
504.27 	other interested party. The commissioner, after completing the review, shall transmit a 
504.28 	report with findings to the authorizer.
504.29 		Subd. 6.Corrective action. (a) If, consistent with this chapter, the commissioner 
504.30 	finds that an authorizer has not fulfilled met the requirements of this chapter, the 
504.31 	commissioner may subject the authorizer to corrective action, which may include 
504.32 	terminating the contract with the charter school board of directors of a school it chartered. 
504.33 	The commissioner must notify the authorizer in writing of any findings that may subject 
504.34 	the authorizer to corrective action and the authorizer then has 15 business days to request 
504.35 	an informal hearing before the commissioner takes corrective action. If the commissioner 
505.1 	terminates a contract between an authorizer and a charter school under this paragraph, the 
505.2 	commissioner may assist the charter school in acquiring a new authorizer.
505.3 	(b) The commissioner may at any time take corrective action against an authorizer, 
505.4 	including terminating an authorizer's ability to charter a school for:
505.5 	(1) failing to demonstrate the criteria under subdivision 4 3 under which the 
505.6 	commissioner approved the authorizer;
505.7 	(2) violating a term of the chartering contract between the authorizer and the charter 
505.8 	school board of directors;
505.9 	(3) unsatisfactory performance as an approved authorizer; or
505.10 	(4) any good cause shown that provides gives the commissioner a legally sufficient 
505.11 	reason to take corrective action against an authorizer.
505.12 		Subd. 7.Withdrawal. If the governing board of an approved authorizer votes to 
505.13 	withdraw as an approved authorizer for a reason unrelated to any cause under section 
505.14 	124E.10, subdivision 4, the authorizer must notify all its chartered schools and the 
505.15 	commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in 
505.16 	the next calendar year, regardless of when the authorizer's five-year term of approval ends. 
505.17 	The commissioner may approve the transfer of a charter school to a new authorizer under 
505.18 	this subdivision after the new authorizer submits an affidavit to the commissioner.
505.19 		Subd. 8.Reports. By September 30 of each year, an authorizer shall submit to the 
505.20 	commissioner a statement of income and expenditures related to chartering activities 
505.21 	during the previous school year ending June 30. A copy of the statement shall be given 
505.22 	to all schools chartered by the authorizer. The authorizer must transmit a copy of the 
505.23 	statement to all schools it charters.

505.24 	Sec. 5. Minnesota Statutes 2015 Supplement, section 124E.06, is amended to read:
505.25 	124E.06 FORMING A SCHOOL.
505.26 		Subdivision 1.Individuals eligible to organize. (a) An authorizer, after receiving 
505.27 	an application from a charter school developer, may charter either a licensed teacher 
505.28 	under section 122A.18, subdivision 1, or a group of individuals that includes one or more 
505.29 	licensed teachers under section 122A.18, subdivision 1, to operate a school subject to the 
505.30 	commissioner's approval of the authorizer's affidavit under subdivision 4.
505.31 	(b) "Application" under this section means the charter school business plan a charter 
505.32 	school developer submits to an authorizer for approval to establish a charter school. This 
505.33 	application must include: 
505.34 	(1) the school developer's:
505.35 	(i) mission statement;
506.1 	(ii) school purposes;
506.2 	(iii) program design;
506.3 	(iv) financial plan;
506.4 	(v) governance and management structure; and
506.5 	(vi) background and experience;
506.6 	(2) any other information the authorizer requests; and 
506.7 	(3) a "statement of assurances" of legal compliance prescribed by the commissioner.
506.8 	(b) (c) An authorizer shall not approve an application submitted by a charter school 
506.9 	developer under paragraph (a) if the application does not comply with subdivision 3, 
506.10 	paragraph (d) (e), and section 124E.01, subdivision 1. The commissioner shall not 
506.11 	approve an affidavit submitted by an authorizer under subdivision 4 if the affidavit does 
506.12 	not comply with subdivision 3, paragraph (d) (e), and section 124E.01, subdivision 1.
506.13 		Subd. 2.Nonprofit corporation. (a) The school must be organized and operated as 
506.14 	a nonprofit corporation under chapter 317A and the provisions under the applicable of that 
506.15 	chapter shall apply to the school except as provided in this chapter.
506.16 	(b) The operators authorized to organize and operate a school, must incorporate as a 
506.17 	nonprofit corporation before entering into a contract or other agreement for professional 
506.18 	or other services, goods, or facilities, must incorporate as a nonprofit corporation under 
506.19 	chapter 317A.
506.20 	(c) (b) Notwithstanding sections 465.717 and 465.719, a school district, subject to 
506.21 	this chapter, may create a corporation for the purpose of establishing a charter school.
506.22 		Subd. 3.Requirements. (a) The primary focus of a charter school must be to 
506.23 	provide a comprehensive program of instruction for at least one grade or age group from 
506.24 	ages five through 18 years of age. Instruction A charter school  may be provided provide 
506.25 	instruction to people older than 18 years of age. 
506.26 	(b) A charter school may offer a free or fee-based preschool or prekindergarten that 
506.27 	meets high-quality early learning instructional program standards that are aligned with 
506.28 	Minnesota's early learning standards for children. The hours a student is enrolled in a 
506.29 	fee-based prekindergarten program do not generate pupil units under section 126C.05 and 
506.30 	must not be used to calculate general education revenue under section 126C.10.
506.31 	(b) (c) A charter school must be nonsectarian in its programs, admission policies, 
506.32 	employment practices, and all other operations. An authorizer may not authorize a charter 
506.33 	school or program that is affiliated with a nonpublic sectarian school or a religious 
506.34 	institution.
506.35 	(c) (d)Charter schools A charter school must not be used as a method of providing 
506.36 	to provide education or generating generate revenue for students who are being 
507.1 	home-schooled students. This paragraph does not apply to shared time aid under section 
507.2 	126C.19.
507.3 	(d) (e) This chapter does not provide a means to keep open a school that a 
507.4 	school board decides to close. However, a school board may endorse or authorize the 
507.5 	establishment of establishing a charter school to replace the school the board decided to 
507.6 	close. Applicants seeking a charter under this circumstance must demonstrate to the 
507.7 	authorizer that the charter sought is substantially different in purpose and program from 
507.8 	the school the board closed and that the proposed charter satisfies the requirements of 
507.9 	section 124E.01, subdivision 1. If the school board that closed the school authorizes 
507.10 	the charter, it must document in its affidavit to the commissioner that the charter is 
507.11 	substantially different in program and purpose from the school it closed.
507.12 	(e) (f) A school authorized by a school board may be located in any district, unless 
507.13 	the school board of the district of the proposed location disapproves the location by 
507.14 	written resolution.
507.15 	(f) (g) Except as provided in paragraph (a) (b), a charter school may not charge tuition.
507.16 	(g) (h) The authorizer may prevent an approved charter school from opening for 
507.17 	operation if, among other grounds, the charter school violates this chapter or does not meet 
507.18 	the ready-to-open standards that are part of (1) the authorizer's oversight and evaluation 
507.19 	process or are (2) stipulated in the charter school contract.
507.20 		Subd. 4.Authorizer's affidavit; approval process; authorizer's affidavit. (a) 
507.21 	Before the operators an operator may establish and operate a school, the authorizer must 
507.22 	file an affidavit with the commissioner stating its intent to charter a school. An authorizer 
507.23 	must file a separate affidavit for each school it intends to charter. An authorizer must file 
507.24 	an affidavit at least 14 months before July 1 of the year the new charter school plans to 
507.25 	serve students. The affidavit must state:
507.26 	(1) the terms and conditions under which the authorizer would charter a school; and
507.27 	(2) how the authorizer intends to oversee:
507.28 	(i) the fiscal and student performance of the charter school; and 
507.29 	to comply (ii) compliance with the terms of the written contract between the 
507.30 	authorizer and the charter school board of directors under section 124E.10, subdivision 1.
507.31 	(b) The commissioner must approve or disapprove the authorizer's affidavit within 
507.32 	60 business days of receipt of receiving the affidavit. If the commissioner disapproves the 
507.33 	affidavit, the commissioner shall notify the authorizer of the deficiencies in the affidavit 
507.34 	and the authorizer then has 20 business days to address the deficiencies. The commissioner 
507.35 	must notify the authorizer of the commissioner's final approval or final disapproval 
507.36 	within 15 business days after receiving the authorizer's response to the deficiencies 
508.1 	in the affidavit. If the authorizer does not address deficiencies to the commissioner's 
508.2 	satisfaction, the commissioner's disapproval is final. Failure to obtain commissioner 
508.3 	approval precludes An authorizer who fails to obtain the commissioner's approval is 
508.4 	precluded from chartering the school that is the subject of this affidavit.
508.5 		Subd. 5.Expansion of a charter Adding grades or sites. (a) A charter school 
508.6 	may apply to the authorizer to amend the school charter to expand the operation of 
508.7 	the school to additional add grades or sites that would be students' primary enrollment 
508.8 	site sites beyond those defined in the original affidavit approved by the commissioner. 
508.9 	After approving the school's application, the authorizer shall submit a supplementary 
508.10 	supplemental affidavit in the form and manner prescribed by the commissioner. The 
508.11 	authorizer must file a supplement supplemental affidavit to the commissioner by October 
508.12 	1 to be eligible to expand add grades or sites in the next school year. The supplementary 
508.13 	supplemental affidavit must document that the school has demonstrated to the authorizer's 
508.14 	satisfaction of the authorizer the following:
508.15 	(1) the need for the expansion additional grades or sites with supporting long-range 
508.16 	enrollment projections;
508.17 	(2) a longitudinal record of demonstrated student academic performance and growth 
508.18 	on statewide assessments under chapter 120B or on other academic assessments that 
508.19 	measure longitudinal student performance and growth approved by the charter school's 
508.20 	board of directors and agreed upon with the authorizer;
508.21 	(3) a history of sound school finances and a finance plan to implement the expansion 
508.22 	in a manner to promote add grades or sites that sustains the school's financial sustainability 
508.23 	finances; and
508.24 	(4) board capacity and an administrative and management plan to implement its 
508.25 	expansion to administer and manage the additional grades or sites.
508.26 	(b) The commissioner shall have 30 business days to review and comment on the 
508.27 	supplemental affidavit. The commissioner shall notify the authorizer in writing of any 
508.28 	deficiencies in the supplemental affidavit and the authorizer then has 20 business days to 
508.29 	address, to the commissioner's satisfaction, any deficiencies in the supplemental affidavit 
508.30 	to the commissioner's satisfaction. The commissioner must notify the authorizer of final 
508.31 	approval or final disapproval within 15 business days after receiving the authorizer's 
508.32 	response to the deficiencies in the affidavit. The school may not expand add grades or add 
508.33 	sites until the commissioner has approved the supplemental affidavit. The commissioner's 
508.34 	approval or disapproval of a supplemental affidavit is final.
508.35 		Subd. 6.Conversion of existing schools. A board of an independent or special 
508.36 	school district may convert one or more of its existing schools to charter schools under 
509.1 	this chapter if 60 percent of the full-time teachers at the school sign a petition seeking 
509.2 	conversion. The conversion must occur at the beginning of an academic year.
509.3 		Subd. 7.Merger. (a) Two or more charter schools may merge under chapter 317A. 
509.4 	The effective date of a merger must be July 1. The merged school must continue under 
509.5 	the identity of one of the merging schools. The authorizer and the merged school must 
509.6 	execute a new charter contract under section 124E.10, subdivision 1, must be executed by 
509.7 	July 1. The authorizer must submit to the commissioner a copy of the new signed charter 
509.8 	contract within ten business days of its execution executing the contract.
509.9 	(b) Each merging school must submit a separate year-end report for the previous 
509.10 	fiscal year for that school only. After the final fiscal year of the premerger schools is 
509.11 	closed out, each of those schools must transfer the fund balances and debts from the 
509.12 	merging schools must be transferred to the merged school.
509.13 	(c) For its first year of operation, the merged school is eligible to receive aid from 
509.14 	programs requiring approved applications equal to the sum of the aid of all of the merging 
509.15 	schools. For aids based on prior year data, the merged school is eligible to receive aid for 
509.16 	its first year of operation based on the combined data of all of the merging schools.

509.17 	Sec. 6. Minnesota Statutes 2015 Supplement, section 124E.07, is amended to read:
509.18 	124E.07 BOARD OF DIRECTORS.
509.19 		Subdivision 1.Initial board of directors. Before entering into a contract or other 
509.20 	agreement for professional or other services, goods, or facilities, the operators authorized 
509.21 	to organize and operate a school, before entering into a contract or other agreement for 
509.22 	professional or other services, goods, or facilities, must establish a board of directors 
509.23 	composed of at least five members who are not related parties. The initial board continues 
509.24 	to serve  until a timely election for members of the ongoing charter school board of 
509.25 	directors is held according to the school's articles and bylaws under subdivision 4.
509.26 		Subd. 2.Ongoing board of directors. The ongoing board must be elected before 
509.27 	the school completes its third year of operation. Board elections must be held during the 
509.28 	school year but may not be conducted on days when the school is closed for holidays, 
509.29 	breaks, or vacations.
509.30 		Subd. 3.Membership criteria. (a) The ongoing charter school board of directors 
509.31 	shall be composed of have at least five nonrelated members and include: (1) at least 
509.32 	one licensed teacher who is employed as a teacher at the school or providing provides 
509.33 	instruction under contract between the charter school and a cooperative; (2) at least one 
509.34 	parent or legal guardian of a student enrolled in the charter school who is not an employee 
509.35 	of the charter school; and (3) at least one interested community member who resides in 
510.1 	Minnesota and, is not employed by the charter school, and does not have a child enrolled 
510.2 	in the school. The board structure may include a majority of teachers described in under 
510.3 	this paragraph or parents or community members, or it may have no clear majority. The 
510.4 	chief financial officer and the chief administrator may only serve as ex-officio nonvoting 
510.5 	board members. No charter school employees shall serve on the board other than teachers 
510.6 	under clause (1). Contractors providing facilities, goods, or services to a charter school 
510.7 	shall not serve on the board of directors of the charter school.
510.8 	(b) An individual is prohibited from serving as a member of the charter school board 
510.9 	of directors if: (1) the individual, an immediate family member, or the individual's partner 
510.10 	is a full or part owner or principal with a for-profit or nonprofit entity or independent 
510.11 	contractor with whom the charter school contracts, directly or indirectly, for professional 
510.12 	services, goods, or facilities. An individual is prohibited from serving as a board member 
510.13 	if; or (2) an immediate family member is an employee of the school. An individual may 
510.14 	serve as a member of the board of directors if no conflict of interest exists under this 
510.15 	paragraph, consistent with this section.
510.16 	(c) A violation of this prohibition paragraph (b) renders a contract voidable at the 
510.17 	option of the commissioner or the charter school board of directors. A member of a charter 
510.18 	school board of directors who violates this prohibition paragraph (b) is individually liable 
510.19 	to the charter school for any damage caused by the violation.
510.20 	(c) (d) Any employee, agent, or board member of the authorizer who participates 
510.21 	in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or 
510.22 	nonrenewal process or decision initially reviewing, approving, overseeing, evaluating, 
510.23 	renewing, or not renewing the charter school is ineligible to serve on the board of directors 
510.24 	of a school chartered by that authorizer.
510.25 	(d) An individual may serve as a member of the board of directors if no conflict of 
510.26 	interest under paragraph (b) exists.
510.27 		Subd. 4.Structure of Board structure. Board bylaws shall outline the process and 
510.28 	procedures for changing the board's governance structure, consistent with chapter 317A. 
510.29 	A board may change its governance structure only:
510.30 	(1) by a majority vote of the board of directors and a majority vote of the licensed 
510.31 	teachers employed by the school as teachers, including licensed teachers providing 
510.32 	instruction under a contract between the school and a cooperative; and
510.33 	(2) with the authorizer's approval.
510.34 	Any change in board governance structure must conform with the board composition 
510.35 	of the board established under this subdivision section.
511.1 		Subd. 5.Eligible voters. Staff members employed at the school, including teachers 
511.2 	providing instruction under a contract with a cooperative, members of the board of 
511.3 	directors, and all parents or legal guardians of children enrolled in the school are the voters 
511.4 	eligible to elect the members of the school's board of directors. A charter school must 
511.5 	notify eligible voters of the school board election dates at least 30 days before the election.
511.6 		Subd. 6.Duties. The board of directors also shall decide and be is responsible 
511.7 	for policy matters related to the operation of operating the school, including budgeting, 
511.8 	curriculum programming, personnel, and operating procedures. The board shall adopt a 
511.9 	policy on nepotism in employment policy. The board shall adopt personnel evaluation 
511.10 	policies and practices that, at a minimum:
511.11 	(1) carry out the school's mission and goals;
511.12 	(2) evaluate the execution of how charter contract goals and commitments are 
511.13 	executed;
511.14 	(3) evaluate student achievement, postsecondary and workforce readiness, and 
511.15 	student engagement and connection goals;
511.16 	(4) establish a teacher evaluation process under section 124E.03, subdivision 2, 
511.17 	paragraph (h); and
511.18 	(5) provide professional development related to the individual's job responsibilities.
511.19 		Subd. 7.Training. Every charter school board member shall attend annual training 
511.20 	throughout the member's term on the board. All new board members shall attend initial 
511.21 	training on the board's role and responsibilities, employment policies and practices, and 
511.22 	financial management. A new board member who does not begin the required initial 
511.23 	training within six months after being seated and complete that training within 12 months 
511.24 	of after being seated on the board is automatically ineligible to continue to serve as a board 
511.25 	member. The school shall include in its annual report the training each board member 
511.26 	attended by each board member during the previous year.
511.27 		Subd. 8.Meetings and information. (a) Board of director meetings must comply 
511.28 	with chapter 13D governing open meetings.
511.29 	(b) A charter school shall publish and maintain on the school's official Web site: (1) 
511.30 	the meeting minutes of meetings of the board of directors, and of members and committees 
511.31 	having any board-delegated authority, for at least one calendar year 365 days from the 
511.32 	date of publication; (2) directory information for members of the board of directors and 
511.33 	for the members of committees having board-delegated authority; and (3) identifying and 
511.34 	contact information for the school's authorizer. 
511.35 	(c) A charter school must include identifying and contact information for the school's 
511.36 	authorizer must be included in other school materials made it makes available to the public.

512.1 	Sec. 7. Minnesota Statutes 2015 Supplement, section 124E.08, is amended to read:
512.2 	124E.08 COLLABORATION BETWEEN CHARTER SCHOOL AND 
512.3 	SCHOOL DISTRICT COLLABORATION.
512.4 	(a) A charter school board may voluntarily enter into a two-year, renewable 
512.5 	collaboration agreement for collaboration with a school district in which the charter school 
512.6 	is geographically located to enhance student the achievement with a school district within 
512.7 	whose geographic boundary it operates of the students in the district and the students in 
512.8 	the charter school.
512.9 	(b) A school district need does not need to be either an approved authorizer or the 
512.10 	authorizer of the charter school to enter into a collaboration agreement with a charter 
512.11 	school under this section. A charter school need not be authorized by the school district 
512.12 	with which it seeks to collaborate.
512.13 	(c) A charter school authorizer is prohibited from requiring a collaboration 
512.14 	agreement as a condition of entering into or renewing a charter contract as defined in 
512.15 	section 124E.10, subdivision 1.
512.16 	(d) Nothing in this section or in the collaboration agreement may impact in any way 
512.17 	the authority or autonomy of the charter school.
512.18 	(e) Nothing in this section or in the collaboration agreement shall cause the state to 
512.19 	pay twice for the same student, service, or facility or otherwise impact state funding, or 
512.20 	the flow thereof, to the school district or the charter school.
512.21 	(f) (b) The collaboration agreement may include, but need is not be limited 
512.22 	to, collaboration regarding facilities, transportation, training, student achievement, 
512.23 	assessments, mutual performance standards, and other areas of mutual agreement.
512.24 	(g) (c) For purposes of student assessment and reporting to the state under section 
512.25 	120B.36, the school district may include the academic performance of the students of a 
512.26 	collaborative charter school site operating within the geographic boundaries of the school 
512.27 	district, for purposes of student assessment and reporting to the state under paragraph (a).
512.28 	(h) Districts, authorizers, or charter schools entering into a collaborative agreement 
512.29 	are equally and collectively subject to the same state and federal accountability measures 
512.30 	for student achievement, school performance outcomes, and school improvement 
512.31 	strategies. The collaborative agreement and all accountability measures must be posted 
512.32 	on the district, charter school, and authorizer Web sites.
512.33 	(d) Nothing in this section or in the collaboration agreement may impact in any way 
512.34 	the authority or autonomy of the charter school.
513.1 	(e) Nothing in this section or in the collaboration agreement shall cause the state to 
513.2 	pay twice for the same student, service, or facility or otherwise impact state funding or 
513.3 	payment to the school district or the charter school.

513.4 	Sec. 8. Minnesota Statutes 2015 Supplement, section 124E.10, is amended to read:
513.5 	124E.10 CHARTER CONTRACT.
513.6 		Subdivision 1.Contents. (a) The authorization for To authorize a charter school, the 
513.7 	authorizer and the charter school board of directors must be in the form of sign a written 
513.8 	contract signed by the authorizer and the board of directors of the charter school. The 
513.9 	contract must be completed within 45 business days of the commissioner's approval of 
513.10 	the authorizer's affidavit. The authorizer shall submit to the commissioner a copy of the 
513.11 	signed charter contract to the commissioner within ten business days of its execution after 
513.12 	the contract is signed by the contracting parties. The contract for a charter school must 
513.13 	be in writing and contain include at least the following:
513.14 	(1) a declaration that the charter school will carry out the primary purpose in section 
513.15 	124E.01, subdivision 1, and indicate how the school will report its implementation of the 
513.16 	primary purpose to its authorizer;
513.17 	(2) a declaration of the additional purpose or purposes in section 124E.01, 
513.18 	subdivision 1, that the school intends to carry out and indicate how the school will report 
513.19 	its implementation of those purposes to its authorizer;
513.20 	(3) a description of the school program and the specific academic and nonacademic 
513.21 	outcomes that pupils must achieve;
513.22 	(4) a statement of admission policies and procedures;
513.23 	(5) a school governance, management, and administration plan for the school;
513.24 	(6) signed agreements from charter school board members to comply with all the 
513.25 	federal and state laws governing organizational, programmatic, and financial requirements 
513.26 	applicable to charter schools;
513.27 	(7) the criteria, processes, and procedures that the authorizer will use to monitor and 
513.28 	evaluate the fiscal, operational, and academic performance, consistent with subdivision 
513.29 	3, paragraphs (a) and (b);
513.30 	(8) for contract renewal, the formal written performance evaluation of the school 
513.31 	that is a prerequisite for reviewing a charter contract under subdivision 3;
513.32 	(9) types and amounts of insurance liability coverage to be obtained by the charter 
513.33 	school must obtain, consistent with section 124E.03, subdivision 2, paragraph (d);
514.1 	(10) consistent with section 124E.09, paragraph (d), a provision to indemnify and 
514.2 	hold harmless the authorizer and its officers, agents, and employees from any suit, claim, 
514.3 	or liability arising from any charter school operation of the charter school,:
514.4 	(i) the authorizer and its officers, agents, and employees; and
514.5 	(ii) notwithstanding section 3.736, the commissioner and department officers, 
514.6 	agents, and employees notwithstanding section 3.736;
514.7 	(11) the term of the initial contract, which, for an initial contract, may be up to five 
514.8 	years plus an additional preoperational planning year, and up to five years or for a renewed 
514.9 	contract or a contract with a new authorizer after a transfer of authorizers, may be up to 
514.10 	five years, if warranted by the school's academic, financial, and operational performance;
514.11 	(12) how the charter school board of directors or the charter school operators of the 
514.12 	charter school will provide special instruction and services for children with a disability 
514.13 	under sections 125A.03 to 125A.24, and 125A.65, and a description of the financial 
514.14 	parameters within which the charter school will operate to provide the special instruction 
514.15 	and services to children with a disability;
514.16 	(13) the specific conditions for contract renewal that identify the performance of 
514.17 	all students under the primary purpose of section 124E.01, subdivision 1, as the most 
514.18 	important factor in determining whether to renew the contract renewal; and
514.19 	(14) the additional purposes under section 124E.01, subdivision 1, and related 
514.20 	performance obligations under clause (7) contained in the charter contract as additional 
514.21 	factors in determining whether to renew the contract renewal; and.
514.22 	(15) (b) In addition to the requirements of paragraph (a), the charter contract must 
514.23 	contain the plan for an orderly closing of the school under chapter 317A,  that establishes 
514.24 	the responsibilities of the school board of directors and the authorizer, whether the closure 
514.25 	is a termination for cause, a voluntary termination, or a nonrenewal of the contract, that 
514.26 	includes establishing the responsibilities of the school board of directors and the authorizer 
514.27 	and notifying. The plan must establish who is responsible for:
514.28 	(1) notifying the commissioner, authorizer, school district in which the charter 
514.29 	school is located, and parents of enrolled students about the closure,;
514.30 	(2) providing parents of enrolled students information and assistance sufficient to 
514.31 	enable the student to re-enroll in another school, the;
514.32 	(3)transfer of transferring student records under section 124E.03, subdivision 5, 
514.33 	paragraph (b), to the student's resident school district; and
514.34 	(4)procedures for closing financial operations.
514.35 	(b) (c) A charter school must design its programs to at least meet the outcomes 
514.36 	adopted by the commissioner for public school students. In the absence of the 
515.1 	commissioner's requirements governing state standards and benchmarks, the school must 
515.2 	meet the outcomes contained in the contract with the authorizer. The achievement levels 
515.3 	of the outcomes contained in the contract may exceed the achievement levels of any 
515.4 	outcomes adopted by the commissioner for public school students.
515.5 		Subd. 2.Limitations Limits on charter contract school agreements. (a) A 
515.6 	school must disclose to the commissioner any potential contract, lease, or purchase of 
515.7 	service from an authorizer must be disclosed to the commissioner,. The contract, lease, or 
515.8 	purchase must be accepted through an open bidding process, and be a separate contract 
515.9 	from the charter contract. The school must document the open bidding process. An 
515.10 	authorizer must not enter into a contract to provide management and financial services for 
515.11 	to a school that it authorizes, unless the school documents that it received receiving at 
515.12 	least two competitive bids.
515.13 	(b) The An authorizer must not condition granting or renewal of renewing a charter 
515.14 	school by an authorizer must not be contingent on:
515.15 	(1) the charter school being required to contract, lease, or purchase services from 
515.16 	the authorizer.; or
515.17 	(c) The granting or renewal of a charter by an authorizer must not be conditioned 
515.18 	upon (2) the bargaining unit status of the school employees of the school.
515.19 		Subd. 3.Review and comment. (a) The authorizer shall provide a formal written 
515.20 	evaluation of the school's performance before the authorizer renews the charter contract. 
515.21 	The department commissioner must review and comment on the authorizer's evaluation 
515.22 	process at the time the authorizer submits its application for approval and each time the 
515.23 	authorizer undergoes its five-year review under section 124E.05, subdivision 5.
515.24 	(b) An authorizer shall monitor and evaluate the academic, financial, operational, 
515.25 	and student performance of the school, and may for this purpose annually assess a charter 
515.26 	school a fee according to paragraph (c). The agreed-upon fee structure must be stated in 
515.27 	the charter school contract.
515.28 	(c) The fee that an authorizer may annually assess is the greater of:
515.29 	(1) the basic formula allowance for that year; or
515.30 	(2) the lesser of:
515.31 	(i) the maximum fee factor times the basic formula allowance for that year; or
515.32 	(ii) the fee factor times the basic formula allowance for that year times the charter 
515.33 	school's adjusted pupil units for that year. The fee factor equals .015. The maximum 
515.34 	fee factor equals 4.0.
515.35 	(d) An authorizer may not assess a fee for any required services other than as 
515.36 	provided in this subdivision.
516.1 	(e) For the preoperational planning period, after a school is chartered, the authorizer 
516.2 	may assess a charter school a fee equal to the basic formula allowance.
516.3 		Subd. 4.Causes for nonrenewal or termination of charter school contract. (a) 
516.4 	The duration of the contract with an authorizer must be for the term contained in the 
516.5 	contract according to subdivision 1, paragraph (a). The authorizer may or may not renew a 
516.6 	contract at the end of the term for any ground listed in paragraph (b). An authorizer may 
516.7 	unilaterally terminate a contract during the term of the contract for any ground listed in 
516.8 	paragraph (b). At least 60 business days before not renewing or terminating a contract, 
516.9 	the authorizer shall notify the board of directors of the charter school of the proposed 
516.10 	action in writing. The notice shall state the grounds for the proposed action in reasonable 
516.11 	detail and that describe the informal hearing process, consistent with this paragraph. The 
516.12 	charter school's board of directors may request in writing an informal hearing before the 
516.13 	authorizer within 15 business days of after receiving notice of nonrenewal or termination 
516.14 	of the contract. Failure by the board of directors to make a written request for an informal 
516.15 	hearing within the 15-business-day period shall be treated as acquiescence to the proposed 
516.16 	action. Upon receiving a timely written request for a hearing, the authorizer shall give ten 
516.17 	business days' notice to the charter school's board of directors of the hearing date. The 
516.18 	authorizer shall conduct an informal hearing before taking final action. The authorizer 
516.19 	shall take final action to renew or not renew a contract no later than 20 business days 
516.20 	before the proposed date for terminating the contract or the end date of the contract.
516.21 	(b) An authorizer may terminate or not renew a contract may be terminated or not 
516.22 	renewed upon any of the following grounds:
516.23 	(1) failure to demonstrate satisfactory academic achievement for all students, 
516.24 	including the requirements for pupil performance contained in the contract;
516.25 	(2) failure to meet generally accepted standards of fiscal management;
516.26 	(3) violations of law; or
516.27 	(4) other good cause shown.
516.28 	If the authorizer terminates or does not renew a contract is terminated or not 
516.29 	renewed under this paragraph, the school must be dissolved according to the applicable 
516.30 	provisions of chapter 317A.
516.31 	(c) The commissioner, after providing reasonable notice to the board of directors of 
516.32 	a charter school and the existing authorizer, and after providing an opportunity for a public 
516.33 	hearing, may terminate the existing contract between the authorizer and the charter school 
516.34 	board if the charter school has a history of:
516.35 	(1) failure to meet pupil performance requirements, consistent with state law;
517.1 	(2) financial mismanagement or failure to meet generally accepted standards of 
517.2 	fiscal management; or
517.3 	(3) repeated or major violations of the law.
517.4 		Subd. 5.Mutual nonrenewal. If the authorizer and the charter school board of 
517.5 	directors mutually agree not to renew the contract, a change in authorizers is allowed. The 
517.6 	authorizer and the school board must jointly submit a written and signed letter of their 
517.7 	intent to the commissioner to mutually not renew the contract. The authorizer that is a party 
517.8 	to the existing contract must inform the proposed authorizer about the fiscal, operational, 
517.9 	and student performance status of the school, as well as any outstanding contractual 
517.10 	obligations that exist. The charter contract between the proposed authorizer and the school 
517.11 	must identify and provide a plan to address any outstanding obligations from the previous 
517.12 	contract. The proposed authorizer must submit the proposed contract must be submitted at 
517.13 	least 105 business days before the end of the existing charter contract. The commissioner 
517.14 	shall have has 30 business days to review and make a determination on the change in 
517.15 	authorizer. The proposed authorizer and the school shall have 15 business days to respond 
517.16 	to the determination and address any issues identified by the commissioner. A final 
517.17 	determination by The commissioner shall be made must make a final determination no later 
517.18 	than 45 business days before the end of the current charter contract. If no the commissioner 
517.19 	does not approve a change in authorizer is approved, the school and the current authorizer 
517.20 	may withdraw their letter of nonrenewal and enter into a new contract. If the transfer of 
517.21 	authorizers is not approved commissioner does not approve a change in authorizer and the 
517.22 	current authorizer and the school do not withdraw their letter and enter into a new contract, 
517.23 	the school must be dissolved according to applicable law and the terms of the contract.
517.24 		Subd. 6.Pupil enrollment upon nonrenewal or termination of charter school 
517.25 	contract. (a) If a contract is not renewed or is terminated according to subdivision 4 or 
517.26 	5, a pupil who attended the school, siblings of the pupil, or another pupil who resides 
517.27 	in the same place as with the pupil may enroll in the resident district or may submit 
517.28 	an application to a nonresident district according to section 124D.03governing open 
517.29 	enrollment at any time. Applications and notices required by section 124D.03 must be 
517.30 	processed and provided in a prompt manner. The application and notice deadlines in 
517.31 	section 124D.03 do not apply under these circumstances. 
517.32 	(b) Within ten business days of closing the charter school, the closed charter school 
517.33 	must transfer the student's educational records within ten business days of closure to the 
517.34 	student's school district of residence where the records must be retained or transferred 
517.35 	under section 120A.22, subdivision 7.

518.1 	Sec. 9. Minnesota Statutes 2015 Supplement, section 124E.12, is amended to read:
518.2 	124E.12 EMPLOYMENT.
518.3 		Subdivision 1.Teachers. A charter school must employ or contract with necessary 
518.4 	teachers, as defined by section 122A.15, subdivision 1, who hold valid licenses to perform 
518.5 	the particular service for which they are employed in the school. The commissioner may 
518.6 	reduce the charter school's state aid may be reduced under section 127A.43 if the school 
518.7 	employs a teacher who is not appropriately licensed or approved by the board of teaching. 
518.8 	The school may employ necessary employees who are not required to hold teaching 
518.9 	licenses to perform duties other than teaching and may contract for other services. The 
518.10 	school may discharge teachers and nonlicensed employees. The charter school board is 
518.11 	subject to section 181.932 governing whistle-blowers. When offering employment to a 
518.12 	prospective employee, a charter school must give that employee a written description of 
518.13 	the terms and conditions of employment and the school's personnel policies.
518.14 		Subd. 2.Administrators. (a) A person, without holding a valid administrator's 
518.15 	license, may perform administrative, supervisory, or instructional leadership duties. 
518.16 	The board of directors shall establish qualifications for all persons thatwho hold 
518.17 	administrative, supervisory, or instructional leadership roles. The qualifications shall 
518.18 	include cover at least the following areas: instruction and assessment; human resource 
518.19 	and personnel management; financial management; legal and compliance management; 
518.20 	effective communication; and board, authorizer, and community relationships. The board 
518.21 	of directors shall use those qualifications as the basis for job descriptions, hiring, and 
518.22 	performance evaluations of those who hold administrative, supervisory, or instructional 
518.23 	leadership roles.
518.24 	(b) The board of directors and an individual who does not hold a valid administrative 
518.25 	license and who serves in an administrative, supervisory, or instructional leadership 
518.26 	position shall develop a professional development plan. Documentation of the 
518.27 	implementation of The school's annual report must include public personnel information 
518.28 	documenting the professional development plan of these persons shall be included in 
518.29 	the school's annual report.
518.30 		Subd. 3.Collective bargaining. Employees of the board of directors of a charter 
518.31 	school may, if otherwise eligible, organize under chapter 179A and comply with its 
518.32 	provisions. The board of directors of a charter school is a public employer, for the 
518.33 	purposes of chapter 179A, upon formation of when forming one or more bargaining units 
518.34 	at the school. Bargaining units at the school must be separate from any other units within 
518.35 	an authorizing district, except that bargaining units may remain part of the appropriate 
518.36 	unit within an authorizing district, if the employees of the school, the board of directors of 
519.1 	the school, the exclusive representative of the appropriate unit in the authorizing district, 
519.2 	and the board of the authorizing district agree to include the employees in the appropriate 
519.3 	unit of the authorizing district. The board of directors of a charter school with employees 
519.4 	organized under this subdivision must comply with sections 471.6161 governing group 
519.5 	insurance and 471.895 governing gifts.
519.6 		Subd. 4.Teacher and other employee retirement. (a) Teachers in a charter school 
519.7 	must be public school teachers for the purposes of chapters 354 and 354A governing the 
519.8 	Teacher Retirement Act.
519.9 	(b) Except for teachers under paragraph (a), employees in a charter school must 
519.10 	be public employees for the purposes of chapter 353 governing the Public Employees 
519.11 	Retirement Act.
519.12 		Subd. 5.Group health insurance. (a) A charter school board with at least 25 
519.13 	employees or a teacher cooperative of licensed teachers providing instruction under 
519.14 	a contract between a school and a cooperative that provides group health insurance 
519.15 	coverage shall:
519.16 	(1) request proposals for group health insurance coverage from a minimum of three 
519.17 	sources at least every two years; and
519.18 	(2) notify employees covered by the group health insurance coverage before the 
519.19 	effective date of the changes in the group coverage policy contract.
519.20 	(b) A charter school board or a cooperative of teachers that provides group health 
519.21 	insurance coverage must establish and publish on its Web site the policy for the purchase 
519.22 	of purchasing group health insurance coverage. A charter school board policy must 
519.23 	include a sealed proposal process, which requires all proposals to be opened at the same 
519.24 	time. Upon the openings of opening the proposals in accordance with according to the 
519.25 	school or cooperative policy, the proposals become public data under chapter 13.
519.26 	Nothing in this subdivision supersedes the right of an exclusive representative to negotiate 
519.27 	over the terms and conditions of employment.
519.28 		Subd. 6.Leave to teach in a charter school. If a teacher employed by a district 
519.29 	makes a written request for an extended leave of absence to teach at a charter school, the 
519.30 	district must grant the leave. The district must grant a leave not to exceed a total of five 
519.31 	years. Any request to extend the leave shall be granted only at the discretion of the school 
519.32 	board. The district may require that a teacher to make the request for a leave or extension 
519.33 	of leave be made before February 1 in the school year preceding the school year in which 
519.34 	the teacher intends to leave, or February 1 of the calendar year in which the teacher's leave 
519.35 	is scheduled to terminate. Except as otherwise provided in this subdivision and except 
519.36 	for section 122A.46, subdivision 7, governing employment in another district, the leave 
520.1 	is governed by section 122A.46, including, but not limited to, reinstatement, notice of 
520.2 	intention to return, seniority, salary, and insurance.
520.3 	During a leave, the teacher may continue to aggregate benefits and credits in the 
520.4 	Teachers' Retirement Association account under chapters 354 and 354A, consistent with 
520.5 	subdivision 4.

520.6 	Sec. 10. Minnesota Statutes 2015 Supplement, section 124E.13, is amended to read:
520.7 	124E.13 FACILITIES.
520.8 		Subdivision 1.Leased space. A charter school may lease space from: an 
520.9 	independent or special school board,; other public organization,; private, nonprofit, 
520.10 	nonsectarian organization,; private property owner,; or a sectarian organization if the 
520.11 	leased space is constructed as a school facility. The department commissioner must 
520.12 	review and approve or disapprove leases in a timely manner for purposes of determining 
520.13 	to determine eligibility for lease aid under section 124E.22.
520.14 		Subd. 2.Related party lease costs. (a) A charter school is prohibited from entering 
520.15 	must not enter into a lease of real property with a related party unless the lessor is a 
520.16 	nonprofit corporation under chapter 317A or a cooperative under chapter 308A, and the 
520.17 	lease cost is reasonable under section 124E.22, paragraph (a), clause (1).
520.18 	(b) A lease of real property to be used for a charter school, not excluded in related 
520.19 	party permitted to enter into a lease under paragraph (a), must contain include the 
520.20 	following statement in the lease: "This lease is subject to Minnesota Statutes, section 
520.21 	124E.13, subdivision 2."
520.22 	(c) If a charter school enters into as lessee a lease with leases space from a related 
520.23 	party and the charter school subsequently closes, the commissioner has the right to recover 
520.24 	from the lessor related party any lease payments in excess of those that are reasonable 
520.25 	under section 124E.22, paragraph (a), clause (1).
520.26 		Subd. 3.Affiliated nonprofit building corporation. (a) An affiliated nonprofit 
520.27 	building corporation may purchase, expand, or renovate an existing facility to serve as a 
520.28 	school or may construct a new school facility. A charter school may organize an affiliated 
520.29 	nonprofit building corporation (1) to purchase, expand, or renovate an existing facility to 
520.30 	serve as a school or (2) to construct a new school facility if the charter school:
520.31 	(i) (1) has been in operation operated for at least six consecutive years;
520.32 	(ii) (2) as of June 30, has a net positive unreserved general fund balance in the 
520.33 	preceding three fiscal years;
520.34 	(iii) (3) has long-range strategic and financial plans that include enrollment 
520.35 	projections for at least five years;
521.1 	(iv) (4) completes a feasibility study of facility options that outlines the benefits 
521.2 	and costs of the options each option; and
521.3 	(v) (5) has a plan for purchase, renovation, or new construction which that describes 
521.4 	project parameters and budget.
521.5 	(b) An affiliated nonprofit building corporation under this subdivision must:
521.6 	(1) be incorporated under section 317A;
521.7 	(2) comply with applicable Internal Revenue Service regulations, including 
521.8 	regulations for "supporting organizations" as defined by the Internal Revenue Service;
521.9 	(3) post on the school Web site the name, mailing address, bylaws, minutes of board 
521.10 	meetings, and the names of the current board of directors of the affiliated nonprofit 
521.11 	building corporation;
521.12 	(4) submit to the commissioner a copy of its annual audit by December 31 of each 
521.13 	year; and
521.14 	(5) comply with government data practices law under chapter 13.
521.15 	(c) An affiliated nonprofit building corporation must not serve as the leasing agent 
521.16 	for property or facilities it does not own. A charter school that leases a facility from an 
521.17 	affiliated nonprofit building corporation that does not own the leased facility is ineligible 
521.18 	to receive charter school lease aid. The state is immune from liability resulting from a 
521.19 	contract between a charter school and an affiliated nonprofit building corporation.
521.20 	(d) Once an affiliated nonprofit building corporation is incorporated under this 
521.21 	subdivision,The board of directors of the charter school must ensure the affiliated 
521.22 	nonprofit building corporation complies with all applicable legal requirements. The charter 
521.23 	school's authorizer of the school must oversee the efforts of the school's board of directors 
521.24 	of the charter school to ensure the affiliated nonprofit building corporation complies 
521.25 	with all legal requirements governing the affiliated nonprofit building corporation legal 
521.26 	compliance of the affiliated building corporation. A school's board of directors that 
521.27 	fails to ensure the affiliated nonprofit building corporation's compliance violates its 
521.28 	responsibilities and an authorizer must factor the consider that failure into the authorizer's 
521.29 	evaluation of when evaluating the charter school.
521.30 		Subd. 4.Positive review and comment. If the amount of a purchase agreement or 
521.31 	construction contract exceeds the review and comment threshold, a charter school or its 
521.32 	affiliated nonprofit building corporation must receive a positive review and comment from 
521.33 	the commissioner before initiating any purchase agreement or construction contract that 
521.34 	requires an expenditure in excess of the threshold specified in section 123B.71, subdivision 
521.35 	8, for school districts that do not have a capital loan outstanding. Without a positive 
521.36 	review and comment from the commissioner, a purchase agreement or construction 
522.1 	contract finalized before a positive review and comment under this subdivision is null and 
522.2 	void. For purposes of this subdivision, "review and comment threshold" means the dollar 
522.3 	amount specified in section 123B.71, subdivision 8, applicable to a school entity that is 
522.4 	not a recipient of a maximum effort capital loan.

522.5 	Sec. 11. Minnesota Statutes 2015 Supplement, section 124E.15, is amended to read:
522.6 	124E.15 TRANSPORTATION.
522.7 	(a) A charter school must comply with all pupil transportation requirements in 
522.8 	section 123B.88, subdivision 1. A charter school must not require parents to surrender 
522.9 	their rights to pupil transportation under section 123B.88, subdivision 2.
522.10 	(b) A charter school after its first fiscal year of operation by March 1 of each fiscal 
522.11 	year and A charter school by July 1 of its first fiscal year of operation must notify the 
522.12 	district in which the school is located and the Department of Education commissioner by 
522.13 	July 1 of its first fiscal year of operation if it will provide its own transportation or use the 
522.14 	transportation services of the district in which it is located for the fiscal year. For each 
522.15 	subsequent year of operation, a charter school must give that district and the commissioner 
522.16 	notice by March 1 for the following fiscal year.
522.17 	(c) If a charter school elects to provide transportation for pupils, the charter school 
522.18 	must provide the transportation must be provided by the charter school within the district 
522.19 	in which the charter school is located. The state must pay transportation aid to the charter 
522.20 	school according to section 124E.23.
522.21 	(d) For pupils who reside outside the district in which the charter school is located, 
522.22 	the charter school is not required to provide or pay for transportation between the pupil's 
522.23 	residence and the border of the district in which the charter school is located. The charter 
522.24 	school may reimburse a parent may be reimbursed by the charter school for costs of 
522.25 	transportation from the pupil's residence to the border of the district in which the charter 
522.26 	school is located if the pupil is from a family whose income is at or below the poverty 
522.27 	level, as determined by the federal government. The reimbursement may not exceed 
522.28 	the pupil's actual cost of transportation or 15 cents per mile traveled, whichever is less. 
522.29 	Reimbursement may not be paid for more than 250 miles per week.
522.30 	At the time a pupil enrolls in a charter school, the charter school must provide the 
522.31 	parent or guardian with information regarding the transportation.
522.32 	(d) (e) If a charter school does not elect to provide transportation, the district in which 
522.33 	the school is located must provide transportation for pupils enrolled at the school must 
522.34 	be provided by the district in which the school is located, according to sections 123B.88, 
522.35 	subdivision 6, governing transporting nonresident pupils, and 124D.03, subdivision 8, for 
523.1 	a pupil residing in the same district in which the charter school is located. The district in 
523.2 	which the charter school is located may provide transportation may be provided by the 
523.3 	district in which the school is located, according to sections 123B.88, subdivision 6, and 
523.4 	124D.03, subdivision 8, governing open enrollment transportation, for a pupil residing 
523.5 	in a different district. If the district provides the transportation, the scheduling of routes, 
523.6 	manner and method of transportation, control and discipline of the pupils, and any other 
523.7 	matter relating to the transportation of pupils under this paragraph shall be is within the 
523.8 	sole discretion, control, and management of the district.
523.9 	(f) The charter school must provide the parent or guardian with information about 
523.10 	transportation when a pupil enrolls.

523.11 	Sec. 12. Minnesota Statutes 2015 Supplement, section 124E.16, is amended to read:
523.12 	124E.16 REPORTS.
523.13 		Subdivision 1.Audit report. (a) A charter school is subject to the same financial 
523.14 	audits, audit procedures, and audit requirements as a district, except as required under 
523.15 	this subdivision. Audits must be conducted in compliance with generally accepted 
523.16 	governmental auditing standards, the federal Single Audit Act, if applicable, and section 
523.17 	6.65 governing auditing procedures. A charter school is subject to and must comply 
523.18 	with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 
523.19 	governing government property and financial investments; and sections471.38; 471.391; 
523.20 	471.392; and 471.425 governing municipal contracting. The audit must comply with the 
523.21 	requirements of sections 123B.75 to 123B.83 governing school district finance, except 
523.22 	to the extent deviations are necessary because of the program at the school when the 
523.23 	commissioner and authorizer approve a deviation made necessary because of school 
523.24 	program finances. Deviations must be approved by the commissioner and authorizer. The 
523.25 	Department of Education commissioner, state auditor, legislative auditor, or authorizer 
523.26 	may conduct financial, program, or compliance audits. A charter school determined to be 
523.27 	in statutory operating debt under sections 123B.81 to 123B.83 must submit a plan under 
523.28 	section 123B.81, subdivision 4.
523.29 	(b) The charter school must submit an audit report to the commissioner and its 
523.30 	authorizer annually by December 31 each year.
523.31 	(c) The charter school, with the assistance of the auditor conducting the audit, 
523.32 	must include with the report, as supplemental information,: (1) a copy of management 
523.33 	agreements with a charter management organization or an educational management 
523.34 	organization and (2) service agreements or contracts over the lesser of $100,000 or ten 
523.35 	percent of the school's most recent annual audited expenditures. The agreements must 
524.1 	detail the terms of the agreement, including the services provided and the annual costs for 
524.2 	those services. If the entity that provides the professional services to the charter school is 
524.3 	exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity 
524.4 	must file with the commissioner by February 15 a copy of the annual return required under 
524.5 	section 6033 of the Internal Revenue Code of 1986.
524.6 	(d) A charter school independent audit report shall include audited financial data 
524.7 	of an affiliated building corporation under section 124E.13, subdivision 3, or other 
524.8 	component unit.
524.9 	(e) If the audit report finds that a material weakness exists in the financial reporting 
524.10 	systems of a charter school, the charter school must submit a written report to the 
524.11 	commissioner explaining how the charter school will resolve that material weakness will 
524.12 	be resolved. An auditor, as a condition of providing financial services to a charter school, 
524.13 	must agree to make available information about a charter school's financial audit to the 
524.14 	commissioner and authorizer upon request.
524.15 		Subd. 2.Annual public reports. (a) A charter school must publish an annual report 
524.16 	approved by the board of directors. The annual report must at least include information 
524.17 	on school enrollment, student attrition, governance and management, staffing, finances, 
524.18 	academic performance, innovative practices and implementation, and future plans. A 
524.19 	charter school may combine this report with the reporting required under section 120B.11 
524.20 	governing the world's best workforce. A charter school must post the annual report on 
524.21 	the school's official Web site. A charter school also must also distribute the annual report 
524.22 	by publication, mail, or electronic means to its authorizer, school employees, and parents 
524.23 	and legal guardians of students enrolled in the charter school. The reports are public 
524.24 	data under chapter 13.
524.25 	(b) The commissioner shall establish specifications for an authorizer's annual public 
524.26 	report that is part of the system to evaluate authorizer performance under section 124E.05, 
524.27 	subdivision 5. The report shall at least include key indicators of school academic, 
524.28 	operational, and financial performance.

524.29 	Sec. 13. Minnesota Statutes 2015 Supplement, section 124E.17, is amended to read:
524.30 	124E.17 DISSEMINATION OF INFORMATION.
524.31 		Subdivision 1.Charter school information. (a) Authorizers and the department 
524.32 	must disseminate information to the public on how to form and operate a charter school. 
524.33 	Charter schools must disseminate information about how to use the charter school 
524.34 	offerings of a charter school to targeted groups, among others. Targeted groups include 
525.1 	low-income families and communities, students of color, and students who are at risk 
525.2 	of academic failure.
525.3 	(b) Authorizers and the commissioner must disseminate information to the public 
525.4 	on how to form and operate a charter school. Authorizers, operators, and the department 
525.5 	commissioner also may disseminate information to interested stakeholders about the 
525.6 	successful best practices in teaching and learning demonstrated by charter schools.
525.7 		Subd. 2.Financial information.  Upon request of an individual, the charter school 
525.8 	must also make available in a timely fashion financial statements showing all operations 
525.9 	and transactions affecting the school's income, surplus, and deficit during the school's 
525.10 	last annual accounting period; and a balance sheet summarizing assets and liabilities 
525.11 	on the closing date of the accounting period. A charter school also must include that 
525.12 	same information about its authorizer in other school materials that it makes available 
525.13 	to the public.

525.14 	Sec. 14. Minnesota Statutes 2015 Supplement, section 124E.22, is amended to read:
525.15 	124E.22 BUILDING LEASE AID.
525.16 	(a) When a charter school finds it economically advantageous to rent or lease a 
525.17 	building or land for any instructional purposes purpose and it determines that the total 
525.18 	operating capital revenue under section 126C.10, subdivision 13, is insufficient for this 
525.19 	purpose, it may apply to the commissioner for building lease aid for this purpose. The 
525.20 	commissioner must review and either approve or deny a lease aid application using the 
525.21 	following criteria:
525.22 	(1) the reasonableness of the price based on current market values;
525.23 	(2) the extent to which the lease conforms to applicable state laws and rules; and
525.24 	(3) the appropriateness of the proposed lease in the context of the space needs and 
525.25 	financial circumstances of the charter school. The commissioner must approve aid only 
525.26 	for a facility lease that has (i) a sum certain annual cost and (ii) a closure clause to relieve 
525.27 	the charter school of its lease obligations at the time the charter contract is terminated or 
525.28 	not renewed;. The closure clause under item (ii) must not be constructed or construed to 
525.29 	relieve the charter school of its lease obligations in effect before the charter contract is 
525.30 	terminated or not renewed.
525.31 	(b) A charter school must not use the building lease aid it receives for custodial, 
525.32 	maintenance service, utility, or other operating costs.
525.33 	(b) (c) The amount of annual building lease aid for a charter school shall not exceed 
525.34 	the lesser of (1) 90 percent of the approved cost or (2) the product of the pupil units served 
525.35 	for the current school year times $1,314.

526.1 	Sec. 15. Minnesota Statutes 2015 Supplement, section 124E.24, is amended to read:
526.2 	124E.24 OTHER AID, GRANTS, AND REVENUE.
526.3 	(a) A charter school is eligible to receive other aids, grants, and revenue according to 
526.4 	chapters 120A to 129C, as though it were a district.
526.5 	(b) Notwithstanding paragraph (a), a charter school may not receive aid, a grant, or 
526.6 	revenue if a levy is required to obtain the money, or if the aid, grant, or revenue replaces levy 
526.7 	revenue that is not general education revenue, except as otherwise provided in this chapter.
526.8 	(c) Federal aid received by the state must be paid to the school, if it qualifies for 
526.9 	the aid, as though it were a school district.
526.10 	(d) A charter school may receive money from any source for capital facilities needs. 
526.11 	In the year-end report to the commissioner of education, the charter school shall report the 
526.12 	total amount of funds it received from grants and other outside sources.

526.13 	Sec. 16. Minnesota Statutes 2015 Supplement, section 124E.25, is amended to read:
526.14 	124E.25 PAYMENT OF AIDS TO CHARTER SCHOOLS.
526.15 		Subdivision 1.Payments. (a) Notwithstanding section 127A.45, subdivision 3, if the 
526.16 	current year aid payment percentage under section 127A.45, subdivision 2, paragraph (d), is 
526.17 	90 or greater, aid payments for the current fiscal year to a charter school shall be of an equal 
526.18 	amount on each of the 24 payment dates. Notwithstanding section 127A.45, subdivision 
526.19 	3, if the current year aid payment percentage under section 127A.45, subdivision 2, 
526.20 	paragraph (d), is less than 90, aid payments for the current fiscal year to a charter school 
526.21 	shall be of an equal amount on each of the 16 payment dates in July through February.
526.22 		Subd. 1a.School closures; payments. (b) (a) Notwithstanding paragraph (a) 
526.23 	subdivision 1 and section 127A.45, for a charter school ceasing operation on or prior 
526.24 	tobefore June 30 of a school year, for the payment periods occurring after the school 
526.25 	ceases serving students, the commissioner shall withhold the estimated state aid owed 
526.26 	the school. The charter school board of directors and authorizer must submit to the 
526.27 	commissioner a closure plan under chapter 308A or 317A, and financial information about 
526.28 	the school's liabilities and assets. After receiving the closure plan, financial information, 
526.29 	an audit of pupil counts, documentation of and documented lease expenditures, from 
526.30 	the charter school and monitoring of special education expenditures, the commissioner 
526.31 	may release cash withheld and may continue regular payments up to the current year 
526.32 	payment percentages if further amounts are owed. If, based on audits and monitoring, 
526.33 	the school received state aid in excess of the amount owed, the commissioner shall retain 
526.34 	aid withheld sufficient to eliminate the aid overpayment. 
527.1 	(b) For a charter school ceasing operations prior to, before or at the end of, a 
527.2 	school year, notwithstanding section 127A.45, subdivision 3, the commissioner may 
527.3 	make preliminary final payments may be made after receiving the school submits the 
527.4 	closure plan, an audit of pupil counts, monitoring of special education expenditures, 
527.5 	documentation of documented lease expenditures, and school submission of Uniform 
527.6 	Financial Accounting and Reporting Standards (UFARS) financial data and the 
527.7 	commissioner monitors special education expenditures for the final year of operation. The 
527.8 	commissioner may make the final payment may be made upon receipt of after receiving 
527.9 	audited financial statements under section 123B.77, subdivision 3.
527.10 	(c) Notwithstanding sections 317A.701 to 317A.791, upon closure of after closing 
527.11 	a charter school and satisfaction of satisfying creditors, remaining cash and investment 
527.12 	balances remaining shall be returned by the commissioner to the state general fund.
527.13 		Subd. 2.Requirements. (a) In order To receive state aid payments under this 
527.14 	section, a charter school in its first three years of operation must submit to the commissioner 
527.15 	a school calendar in the form and manner requested by the department commissioner and 
527.16 	a quarterly report to the Department of Education. The quarterly report must list each 
527.17 	student by grade, show the student's start and end dates, if any applicable, with the charter 
527.18 	school, and, for any student participating in a learning year program, the report must list the 
527.19 	hours and times of learning year activities. The charter school must submit the report must 
527.20 	be submittedto the commissioner not more than two weeks after the end of the calendar 
527.21 	quarter to the department. The department commissioner must develop a Web-based 
527.22 	reporting form for charter schools to use when submitting quarterly enrollment reports.
527.23 	(b) To receive state aid payments under this section, a charter school in its fourth and 
527.24 	subsequent year of operation must submit a school calendar and enrollment information 
527.25 	to the department commissioner in the form and manner requested by the department 
527.26 	commissioner.
527.27 	(b) (c) A charter school must have a valid, signed contract under section 124E.10, 
527.28 	subdivision 1, on file at with the Department of Education commissioner at least 15 days 
527.29 	prior tobefore the date of first payment of state aid for the fiscal year.
527.30 	(c) (d) The commissioner shall compute state aid entitlements shall be computed 
527.31 	for a charter school only for the portion of a school year for which it has a valid, signed 
527.32 	contract under section 124E.10, subdivision 1.
527.33 		Subd. 3.Aid reductions. (a) The commissioner may reduce a charter school's 
527.34 	state aid under section 127A.42 or 127A.43 if the charter school board fails to correct a 
527.35 	violation under this chapter.
528.1 	(b) The commissioner may reduce a charter school's state aid by an amount not 
528.2 	to exceed 60 percent of the charter school's basic revenue for the period of time that a 
528.3 	violation of law occurs was violated.
528.4 		Subd. 4.Aid withholding. (a) If a charter school fails to comply with the 
528.5 	commissioner's directive to return, for cause, federal or state funds administered by the 
528.6 	department, the commissioner may withhold an amount of state aid sufficient to satisfy 
528.7 	the directive.
528.8 	(b) If, within the timeline under section 471.425, after receiving an undisputed 
528.9 	invoice for goods and services, a charter school fails to pay the state of Minnesota, a school 
528.10 	district, intermediate school district, or service cooperative after receiving an undisputed 
528.11 	invoice for goods and services within the timeline under section 471.425, the commissioner 
528.12 	may withhold an amount of state aid sufficient to satisfy the claim and shall distribute the 
528.13 	withheld aid to the interested state agency, school district, intermediate school district, or 
528.14 	service cooperative. An interested state agency, school district, intermediate school district, 
528.15 	or education cooperative shall notify the commissioner when a charter school fails to pay 
528.16 	an undisputed invoice within 75 business days of when it received the original invoice.

528.17 	Sec. 17. Minnesota Statutes 2015 Supplement, section 124E.26, is amended to read:
528.18 	124E.26 USE OF STATE MONEY.
528.19 	Money received from the state may not be used A charter school may not use state 
528.20 	money to purchase land or buildings. The charter school may own land and buildings if 
528.21 	obtained through nonstate sources.

528.22 	Sec. 18. SUPERSEDING ACTS.
 528.23 	Any amendments or repeals enacted in the 2016 session of the legislature to sections 
528.24 	also amended or repealed in this article of this act supersede the amendments in this article 
528.25 	of this act regardless of order of enactment.

528.26 	ARTICLE 27
528.27 	GENERAL EDUCATION

528.28 	Section 1. Minnesota Statutes 2015 Supplement, section 120A.41, is amended to read:
528.29 	120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.
528.30 	A school board's annual school calendar must include at least 425 hours of 
528.31 	instruction for a kindergarten student without a disability, 935 hours of instruction for a 
528.32 	student in grades 1 through 6, and 1,020 hours of instruction for a student in grades 7 
529.1 	through 12, not including summer school. The school calendar for all-day kindergarten 
529.2 	must include at least 850 hours of instruction for the school year. The school calendar for 
529.3 	a prekindergarten student under section 124D.151, if offered by the district, must include 
529.4 	at least 350 hours of instruction for the school year. A school board's annual calendar 
529.5 	must include at least 165 days of instruction for a student in grades 1 through 11 unless a 
529.6 	four-day week schedule has been approved by the commissioner under section 124D.126.

529.7 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
529.8 	later.

529.9 	Sec. 2. Minnesota Statutes 2014, section 123A.24, subdivision 2, is amended to read:
529.10 		Subd. 2.Cooperative unit defined. For the purposes of this section, a cooperative 
529.11 	unit is:
529.12 	(1) an education district organized under sections 123A.15 to 123A.19;
529.13 	(2) a cooperative vocational center organized under section 123A.22;
529.14 	(3) an intermediate district organized under chapter 136D;
529.15 	(4) a service cooperative organized under section 123A.21; or
529.16 	(5) a regional management information center organized under section 123A.23 or 
529.17 	as a joint powers district according to section 471.59.; or
529.18 	(6) a special education cooperative organized under section 471.59.

529.19 	Sec. 3. Minnesota Statutes 2014, section 124D.111, is amended by adding a 
529.20 	subdivision to read:
529.21 		Subd. 2a.Federal child and adult food program; criteria and notice. The 
529.22 	commissioner must post on the department's Web site eligibility criteria and application 
529.23 	information for nonprofit organizations interested in applying to the commissioner for 
529.24 	approval as a multisite sponsoring organization under the federal child and adult care 
529.25 	food program. The posted criteria and information must inform interested nonprofit 
529.26 	organizations about:
529.27 	(1) the criteria the commissioner uses to approve or disapprove an application, 
529.28 	including how an applicant demonstrates financial viability for the Minnesota program, 
529.29 	among other criteria;
529.30 	(2) the commissioner's process and time line for notifying an applicant when 
529.31 	its application is approved or disapproved and, if the application is disapproved, the 
529.32 	explanation the commissioner provides to the applicant; and
529.33 	(3) any appeal or other recourse available to a disapproved applicant.

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

530.2 	Sec. 4. Minnesota Statutes 2014, section 124D.1158, subdivision 3, is amended to read:
530.3 		Subd. 3.Program reimbursement. Each school year, the state must reimburse 
530.4 	each participating school 30 cents for each reduced-price breakfast, 55 cents for each fully 
530.5 	paid breakfast served to students in grades 1 to 12, and $1.30 for each fully paid breakfast 
530.6 	served to a prekindergarten student enrolled in an approved voluntary prekindergarten 
530.7 	program under section 124D.151 or a kindergarten student.

530.8 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
530.9 	later.

530.10 	Sec. 5. Minnesota Statutes 2014, section 124D.1158, subdivision 4, is amended to read:
530.11 		Subd. 4.No fees. A school that receives school breakfast aid under this section 
530.12 	must make breakfast available without charge to all participating students in grades 1 
530.13 	to 12 who qualify for free or reduced-price meals and to all prekindergarten students 
530.14 	enrolled in an approved voluntary prekindergarten program under section 124D.151 and 
530.15 	all kindergarten students.

530.16 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
530.17 	later.

530.18 	Sec. 6. [124D.151] VOLUNTARY PREKINDERGARTEN PROGRAM.
530.19 		Subdivision 1.Establishment; purpose. A district, a charter school, a group of 
530.20 	districts, a group of charter schools, or a group of districts and charter schools may 
530.21 	establish a voluntary prekindergarten program. The purpose of a voluntary prekindergarten 
530.22 	program is to prepare children for success as they enter kindergarten in the following year.
530.23 		Subd. 2.Program requirements. (a) A voluntary prekindergarten program 
530.24 	provider must:
530.25 	(1) provide instruction through play-based learning to foster children's social and 
530.26 	emotional development, cognitive development, physical and motor development, and 
530.27 	language and literacy skills, including the native language and literacy skills of English 
530.28 	learners, to the extent practicable;
530.29 	(2) measure each child's cognitive and social skills using a formative measure 
530.30 	aligned to the state's early learning standards when the child enters and again before the 
530.31 	child leaves the program, screening and progress monitoring measures, and others from 
530.32 	the state-approved menu of kindergarten entry profile measures;
531.1 	(3) provide comprehensive program content including the implementation of 
531.2 	curriculum, assessment, and instructional strategies aligned with the state early learning 
531.3 	standards, and kindergarten through grade 3 academic standards;
531.4 	(4) provide instructional content and activities that are of sufficient length and 
531.5 	intensity to address learning needs including offering a program with at least 350 hours of 
531.6 	instruction per school year for a prekindergarten student;
531.7 	(5) provide voluntary prekindergarten instructional staff salaries comparable to the 
531.8 	salaries of local kindergarten through grade 12 instructional staff;
531.9 	(6) coordinate appropriate kindergarten transition with families, community-based 
531.10 	prekindergarten programs, and school district kindergarten programs;
531.11 	(7) involve parents in program planning and transition planning by implementing 
531.12 	parent engagement strategies that include culturally and linguistically responsive activities 
531.13 	in prekindergarten through third grade that are aligned with early childhood family 
531.14 	education under section 124D.13;
531.15 	(8) coordinate with relevant community-based services, including health and social 
531.16 	service agencies, to ensure children have access to comprehensive services;
531.17 	(9) coordinate with all relevant school district programs and services including early 
531.18 	childhood special education, homeless students, and English learners;
531.19 	(10) ensure staff-to-child ratios of one-to-ten and a maximum group size of 20 
531.20 	children;
531.21 	(11) provide high-quality coordinated professional development, training, and 
531.22 	coaching for both school district and community-based early learning providers that 
531.23 	is informed by a measure of adult-child interactions and enables teachers to be highly 
531.24 	knowledgeable in early childhood curriculum content, assessment, native and English 
531.25 	language development programs, and instruction; and
531.26 	(12) implement strategies that support the alignment of professional development, 
531.27 	instruction, assessments, and prekindergarten through grade 3 curricula.
531.28 	(b) A voluntary prekindergarten program must have teachers knowledgeable in 
531.29 	early childhood curriculum content, assessment, native and English language programs, 
531.30 	and instruction.
531.31 	(c) Districts and charter schools must include their strategy for implementing and 
531.32 	measuring the impact of their voluntary prekindergarten program under section 120B.11 
531.33 	and provide results in their world's best workforce annual summary to the commissioner 
531.34 	of education.
531.35 		Subd. 3.Mixed delivery of services. A district or charter school may contract 
531.36 	with a charter school, Head Start or child care centers, family child care programs 
532.1 	licensed under section 245A.03, or a community-based organization to provide eligible 
532.2 	children with developmentally appropriate services that meet the program requirements in 
532.3 	subdivision 2. Components of a mixed-delivery plan include strategies for recruitment, 
532.4 	contracting, and monitoring of fiscal compliance and program quality.
532.5 		Subd. 4.Eligibility. A child who is four years of age as of September 1 in the 
532.6 	calendar year in which the school year commences is eligible to participate in a voluntary 
532.7 	prekindergarten program free of charge. Each eligible child must complete a health and 
532.8 	developmental screening within 90 days of program enrollment under sections 121A.16 to 
532.9 	121A.19, and provide documentation of required immunizations under section 121A.15.
532.10 		Subd. 5.Application process; priority for high poverty schools. (a) To qualify 
532.11 	for program approval for fiscal year 2017, a district or charter school must submit an 
532.12 	application to the commissioner by July 1, 2016. To qualify for program approval for 
532.13 	fiscal year 2018 and later, a district or charter school must submit an application to the 
532.14 	commissioner by January 30 of the fiscal year prior to the fiscal year in which the program 
532.15 	will be implemented. The application must include:
532.16 	(1) a description of the proposed program, including the number of hours per week 
532.17 	the program will be offered at each school site or mixed-delivery location;
532.18 	(2) an estimate of the number of eligible children to be served in the program at each 
532.19 	school site or mixed-delivery location; and
532.20 	(3) a statement of assurances signed by the superintendent or charter school director 
532.21 	that the proposed program meets the requirements of subdivision 2.
532.22 	(b) The commissioner must review all applications submitted for fiscal year 2017 by 
532.23 	August 1, 2016, and must review all applications submitted for fiscal year 2018 and later 
532.24 	by March 1 of the fiscal year in which the applications are received and determine whether 
532.25 	each application meets the requirements of paragraph (a).
532.26 	(c) The commissioner must divide all applications for new or expanded programs 
532.27 	meeting the requirements of paragraph (a) into four groups as follows: the Minneapolis and 
532.28 	St. Paul school districts; other school districts located in the metropolitan equity region as 
532.29 	defined in section 126C.10, subdivision 28; school districts located in the rural equity region 
532.30 	as defined in section 126C.10, subdivision 28; and charter schools. Within each group, the 
532.31 	applications must be ordered by rank using a sliding scale based on the following criteria:
532.32 	(1) concentration of kindergarten students eligible for free or reduced-price lunches 
532.33 	by school site on October 1 of the previous school year. For school district programs to be 
532.34 	operated at locations that do not have free and reduced-price lunch concentration data for 
532.35 	kindergarten programs for October 1 of the previous school year, including mixed-delivery 
533.1 	programs, the school district average concentration of kindergarten students eligible for 
533.2 	free or reduced-price lunches must be used for the rank ordering;
533.3 	(2) presence or absence of a three- or four-star Parent Aware rated program within 
533.4 	the school district or close proximity of the district. School sites with the highest 
533.5 	concentration of kindergarten students eligible for free or reduced-price lunches that 
533.6 	do not have a three- or four-star Parent Aware program within the district or close 
533.7 	proximity of the district shall receive the highest priority, and school sites with the lowest 
533.8 	concentration of kindergarten students eligible for free or reduced-price lunches that have 
533.9 	a three- or four-star Parent Aware rated program within the district or close proximity of 
533.10 	the district shall receive the lowest priority.
533.11 	(d) The aid available for the program as specified in subdivision 6, paragraph (b), 
533.12 	must initially be allocated among the four groups based on each group's percentage share 
533.13 	of the statewide kindergarten enrollment on October 1 of the previous school year. Within 
533.14 	each group, the available aid must be allocated among school sites in priority order until 
533.15 	that region's share of the aid limit is reached. If the aid limit is not reached for all groups, 
533.16 	the remaining amount must be allocated to the highest priority school sites, as designated 
533.17 	under this section, not funded in the initial allocation on a statewide basis.
533.18 	(e) Once a school site is approved for aid under this subdivision, it shall remain 
533.19 	eligible for aid if it continues to meet program requirements, regardless of changes in the 
533.20 	concentration of students eligible for free or reduced-price lunches.
533.21 	(f) If the total aid entitlement approved based on applications submitted under 
533.22 	paragraph (a) is less than the aid entitlement limit under subdivision 6, paragraph (b), 
533.23 	the commissioner must notify all school districts and charter schools of the amount that 
533.24 	remains available within 30 days of the initial application deadline under paragraph (a), 
533.25 	and complete a second round of allocations based on applications received within 60 days 
533.26 	of the initial application deadline.
533.27 	(g) Procedures for approving applications submitted under paragraph (f) shall be the 
533.28 	same as specified in paragraphs (a) to (d), except that the allocations shall be made to the 
533.29 	highest priority school sites not funded in the initial allocation on a statewide basis.
533.30 		Subd. 6.Program and aid entitlement limits. (a) Notwithstanding section 
533.31 	126C.05, subdivision 1, paragraph (d), the pupil units for a voluntary prekindergarten 
533.32 	program for an eligible school district or charter school must not exceed 60 percent of the 
533.33 	kindergarten pupil units for that school district or charter school under section 126C.05, 
533.34 	subdivision 1, paragraph (e).
533.35 	(b) In reviewing applications under subdivision 5, the commissioner must limit the 
533.36 	estimated state aid entitlement approved under this section to $27,092,000 for fiscal year 
534.1 	2017, $27,239,000 for fiscal year 2018, and $26,399,000 for fiscal year 2019 and later. If 
534.2 	the actual state aid entitlement based on final data exceeds the limit in any year, the aid of 
534.3 	the participating districts must be prorated so as not to exceed the limit.

534.4 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
534.5 	later.

534.6 	Sec. 7. Minnesota Statutes 2015 Supplement, section 124D.59, subdivision 2, is 
534.7 	amended to read:
534.8 		Subd. 2.English learner. (a) "English learner" means a pupil in kindergarten 
534.9 	through grade 12 or a prekindergarten student enrolled in an approved voluntary 
534.10 	prekindergarten program under section 124D.151 who meets the requirements under 
534.11 	subdivision 2a or the following requirements:
534.12 	(1) the pupil, as declared by a parent or guardian first learned a language other than 
534.13 	English, comes from a home where the language usually spoken is other than English, or 
534.14 	usually speaks a language other than English; and
534.15 	(2) the pupil is determined by a valid assessment measuring the pupil's English 
534.16 	language proficiency and by developmentally appropriate measures, which might include 
534.17 	observations, teacher judgment, parent recommendations, or developmentally appropriate 
534.18 	assessment instruments, to lack the necessary English skills to participate fully in 
534.19 	academic classes taught in English.
534.20 	(b) A pupil enrolled in a Minnesota public school in any grade 4 through 12 who in 
534.21 	the previous school year took a commissioner-provided assessment measuring the pupil's 
534.22 	emerging academic English, shall be counted as an English learner in calculating English 
534.23 	learner pupil units under section 126C.05, subdivision 17, and shall generate state English 
534.24 	learner aid under section 124D.65, subdivision 5, if the pupil scored below the state cutoff 
534.25 	score or is otherwise counted as a nonproficient participant on the assessment measuring 
534.26 	the pupil's emerging academic English, or, in the judgment of the pupil's classroom 
534.27 	teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate 
534.28 	academic language proficiency in English, including oral academic language, sufficient to 
534.29 	successfully and fully participate in the general core curriculum in the regular classroom.
534.30 	(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten prekindergarten 
534.31 	under section 124D.151,  through grade 12 shall not be counted as an English learner in 
534.32 	calculating English learner pupil units under section 126C.05, subdivision 17, and shall 
534.33 	not generate state English learner aid under section 124D.65, subdivision 5, if:
534.34 	(1) the pupil is not enrolled during the current fiscal year in an educational program 
534.35 	for English learners under sections 124D.58 to 124D.64; or
535.1 	(2) the pupil has generated seven or more years of average daily membership in 
535.2 	Minnesota public schools since July 1, 1996.

535.3 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
535.4 	later.

535.5 	Sec. 8. Minnesota Statutes 2014, section 124D.68, subdivision 2, is amended to read:
535.6 		Subd. 2.Eligible pupils. (a) A pupil under the age of 21 or who meets the 
535.7 	requirements of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in 
535.8 	the graduation incentives program, if the pupil:
535.9 	(1) performs substantially below the performance level for pupils of the same age 
535.10 	in a locally determined achievement test;
535.11 	(2) is behind in satisfactorily completing coursework or obtaining credits for 
535.12 	graduation;
535.13 	(3) is pregnant or is a parent;
535.14 	(4) has been assessed as chemically dependent;
535.15 	(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
535.16 	(6) has been referred by a school district for enrollment in an eligible program or 
535.17 	a program pursuant to section 124D.69;
535.18 	(7) is a victim of physical or sexual abuse;
535.19 	(8) has experienced mental health problems;
535.20 	(9) has experienced homelessness sometime within six months before requesting a 
535.21 	transfer to an eligible program;
535.22 	(10) speaks English as a second language or is an English learner; or
535.23 	(11) has withdrawn from school or has been chronically truant; or
535.24 	(12) is being treated in a hospital in the seven-county metropolitan area for cancer or 
535.25 	other life threatening illness or is the sibling of an eligible pupil who is being currently 
535.26 	treated, and resides with the pupil's family at least 60 miles beyond the outside boundary 
535.27 	of the seven-county metropolitan area.
535.28 	(b) For the 2016-2017 school year only, a pupil otherwise qualifying under 
535.29 	paragraph (a) who is at least 21 years of age and not yet 22 years of age, is an English 
535.30 	learner with an interrupted formal education according to section 124D.59, subdivision 2a, 
535.31 	and was in an early middle college program during the previous school year is eligible to 
535.32 	participate in the graduation incentives program under section 124D.68 and in concurrent 
535.33 	enrollment courses offered under section 124D.09, subdivision 10, and is funded in the 
535.34 	same manner as other pupils under this section.

536.1 	Sec. 9. Minnesota Statutes 2015 Supplement, section 126C.05, subdivision 1, is 
536.2 	amended to read:
536.3 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
536.4 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph 
536.5 	(c), in average daily membership enrolled in the district of residence, in another district 
536.6 	under sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school 
536.7 	under chapter 124E; or for whom the resident district pays tuition under section 123A.18, 
536.8 	123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 
536.9 	124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this 
536.10 	subdivision.
536.11 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
536.12 	by the commissioner and has an individualized education program is counted as the ratio 
536.13 	of the number of hours of assessment and education service to 825 times 1.0 with a 
536.14 	minimum average daily membership of 0.28, but not more than 1.0 pupil unit.
536.15 	(b) A prekindergarten pupil who is assessed but determined not to be disabled is 
536.16 	counted as the ratio of the number of hours of assessment service to 825 times 1.0.
536.17 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
536.18 	by the commissioner is counted as the ratio of the number of hours of assessment and 
536.19 	education services required in the fiscal year by the pupil's individualized education 
536.20 	program to 875, but not more than one.
536.21 	(d) A prekindergarten pupil who is not included in paragraph (a) or (b) and is 
536.22 	enrolled in an approved voluntary prekindergarten program under section 124D.151 is 
536.23 	counted as the ratio of the number of hours of instruction to 850 times 1.0, but not more 
536.24 	than 0.6 pupil units.
536.25 	(d) (e) A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 
536.26 	pupil unit if the pupil is enrolled in a free all-day, every day kindergarten program available 
536.27 	to all kindergarten pupils at the pupil's school that meets the minimum hours requirement in 
536.28 	section 120A.41, or is counted as .55 pupil unit, if the pupil is not enrolled in a free all-day, 
536.29 	every day kindergarten program available to all kindergarten pupils at the pupil's school.
536.30 	(e) (f) A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.
536.31 	(f) (g) A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.
536.32 	(g) (h) A pupil who is in the postsecondary enrollment options program is counted 
536.33 	as 1.2 pupil units.

536.34 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
536.35 	later.

537.1 	Sec. 10. Minnesota Statutes 2014, section 126C.05, subdivision 3, is amended to read:
537.2 		Subd. 3.Compensation revenue pupil units. Compensation revenue pupil units 
537.3 	for fiscal year 1998 and thereafter must be computed according to this subdivision.
537.4 	(a) The compensation revenue concentration percentage for each building in a 
537.5 	district equals the product of 100 times the ratio of:
537.6 	(1) the sum of the number of pupils enrolled in the building eligible to receive free 
537.7 	lunch plus one-half of the pupils eligible to receive reduced priced lunch on October 
537.8 	1 of the previous fiscal year; to
537.9 	(2) the number of pupils enrolled in the building on October 1 of the previous fiscal 
537.10 	year.
537.11 	(b) The compensation revenue pupil weighting factor for a building equals the 
537.12 	lesser of one or the quotient obtained by dividing the building's compensation revenue 
537.13 	concentration percentage by 80.0.
537.14 	(c) The compensation revenue pupil units for a building equals the product of:
537.15 	(1) the sum of the number of pupils enrolled in the building eligible to receive free 
537.16 	lunch and one-half of the pupils eligible to receive reduced priced lunch on October 1 
537.17 	of the previous fiscal year; times
537.18 	(2) the compensation revenue pupil weighting factor for the building; times
537.19 	(3) .60.
537.20 	(d) Notwithstanding paragraphs (a) to (c), for voluntary prekindergarten programs 
537.21 	under section 124D.151, charter schools, and contracted alternative programs in the 
537.22 	first year of operation, compensation revenue pupil units shall be computed using data 
537.23 	for the current fiscal year. If the voluntary prekindergarten program, charter school, or 
537.24 	contracted alternative program begins operation after October 1, compensatory revenue 
537.25 	pupil units shall be computed based on pupils enrolled on an alternate date determined by 
537.26 	the commissioner, and the compensation revenue pupil units shall be prorated based on 
537.27 	the ratio of the number of days of student instruction to 170 days.
537.28 	(e) The percentages in this subdivision must be based on the count of individual 
537.29 	pupils and not on a building average or minimum.

537.30 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
537.31 	later.

537.32 	Sec. 11. Minnesota Statutes 2014, section 126C.10, subdivision 2d, is amended to read:
537.33 		Subd. 2d.Declining enrollment revenue. (a) A school district's declining 
537.34 	enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the 
538.1 	formula allowance for that year and (2) the difference between the adjusted pupil units for 
538.2 	the preceding year and the adjusted pupil units for the current year.
538.3 	(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil 
538.4 	enrolled at the Crosswinds school shall not generate declining enrollment revenue for the 
538.5 	district or charter school in which the pupil was last counted in average daily membership.
538.6 	(c) Notwithstanding paragraph (a), for fiscal years 2017, 2018, and 2019 only, 
538.7 	prekindergarten pupil units under section 126C.05, subdivision 1, paragraph (d), must be 
538.8 	excluded from the calculation of declining enrollment revenue.

538.9 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
538.10 	later.

538.11 	Sec. 12. Minnesota Statutes 2015 Supplement, section 126C.10, subdivision 13a, 
538.12 	is amended to read:
538.13 		Subd. 13a.Operating capital levy. To obtain operating capital revenue, a district 
538.14 	may levy an amount not more than the product of its operating capital revenue for the 
538.15 	fiscal year times the lesser of one or the ratio of its adjusted net tax capacity per adjusted 
538.16 	pupil unit to the operating capital equalizing factor. The operating capital equalizing factor 
538.17 	equals $14,500 for fiscal years 2015 and 2016, $14,740 $15,740 for fiscal year 2017, 
538.18 	$17,473 $19,972 for fiscal year 2018, and $20,510 $22,912 for fiscal year 2019 and later.

538.19 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
538.20 	later.

538.21 	Sec. 13. Minnesota Statutes 2014, section 126C.10, subdivision 24, is amended to read:
538.22 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
538.23 	(1) the school district's adjusted pupil unit amount of basic revenue, transition 
538.24 	revenue, and referendum revenue is less than the value of the school district at or 
538.25 	immediately above the 95th percentile of school districts in its equity region for those 
538.26 	revenue categories; and
538.27 	(2) the school district's administrative offices are not located in a city of the first 
538.28 	class on July 1, 1999.
538.29 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
538.30 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil 
538.31 	units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's 
538.32 	equity index computed under subdivision 27.
539.1 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
539.2 	under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil 
539.3 	units for that year times $14.
539.4 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
539.5 	equal to the district's adjusted pupil units times the difference between ten percent of the 
539.6 	statewide average amount of referendum revenue per adjusted pupil unit for that year and 
539.7 	the district's referendum revenue per adjusted pupil unit. A school district's revenue under 
539.8 	this paragraph must not exceed $100,000 for that year.
539.9 	(e) A school district's equity revenue for a school district located in the metro equity 
539.10 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25. 
539.11 	(f) For fiscal years 2017, 2018, and 2019 for a school district not included in 
539.12 	paragraph (e) a district's equity revenue equals the amount computed in paragraphs (b), 
539.13 	(c), and (d) multiplied by 1.16. For fiscal year 2020 and later for a school district not 
539.14 	included in paragraph (e) a district's equity revenue equals the amount computed in 
539.15 	paragraphs (b), (c), and (d) multiplied by 1.25.
539.16 	(g) A school district's additional equity revenue equals $50 times its adjusted pupil 
539.17 	units.

539.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
539.19 	and later.

539.20 	Sec. 14. Minnesota Statutes 2014, section 127A.353, subdivision 4, is amended to read:
539.21 		Subd. 4.Duties; powers. (a) The school trust lands director shall:
539.22 	(1) take an oath of office before assuming any duties as the director;
539.23 	(2) evaluate the school trust land asset position;
539.24 	(3) determine the estimated current and potential market value of school trust lands;
539.25 	(4) advise the governor, Executive Council, commissioner of natural resources, 
539.26 	and the Legislative Permanent School Fund Commission on the management of school 
539.27 	trust lands, including:
539.28 	(i) Department of Natural Resources school trust land management plans;
539.29 	(ii) leases of school trust lands;
539.30 	(iii) royalty agreements on school trust lands;
539.31 	(iv) land sales and exchanges;
539.32 	(v) cost certification; and
539.33 	(vi) revenue generating options;
539.34 	(5) propose to the Legislative Permanent School Fund Commission legislative 
539.35 	changes that will improve the asset allocation of the school trust lands;
540.1 	(6) develop a ten-year strategic plan and a 25-year framework for management of 
540.2 	school trust lands, in conjunction with the commissioner of natural resources, that is 
540.3 	updated every five years and implemented by the commissioner, with goals to:
540.4 	(i) retain core real estate assets;
540.5 	(ii) increase the value of the real estate assets and the cash flow from those assets;
540.6 	(iii) rebalance the portfolio in assets with high performance potential and the 
540.7 	strategic disposal of selected assets;
540.8 	(iv) establish priorities for management actions; and
540.9 	(v) balance revenue enhancement and resource stewardship;
540.10 	(7) submit to the Legislative Permanent School Fund Commission for review an 
540.11 	annual budget and management plan for the director; and
540.12 	(8) keep the beneficiaries, governor, legislature, and the public informed about the 
540.13 	work of the director by reporting to the Legislative Permanent School Fund Commission 
540.14 	in a public meeting at least once during each calendar quarter.
540.15 	(b) In carrying out the duties under paragraph (a), the school trust lands director 
540.16 	shall have the authority to:
540.17 	(1) direct and control money appropriated to the director;
540.18 	(2) establish job descriptions and employ up to five employees in the unclassified 
540.19 	service, within the limitations of money appropriated to the director;
540.20 	(3) enter into interdepartmental agreements with any other state agency; and
540.21 	(4) enter into joint powers agreements under chapter 471;
540.22 	(5) evaluate and initiate real estate development projects on school trust lands with 
540.23 	the advice of the Legislative Permanent School Fund Commission in order to generate 
540.24 	long-term economic return to the permanent school fund;
540.25 	(6) serve as temporary trustee of school trust land for school trust lands subject to 
540.26 	proposed or active eminent domain proceedings; and
540.27 	(4) (7) submit recommendations on strategies for school trust land leases, sales, or 
540.28 	exchanges to the commissioner of natural resources and the Legislative Permanent School 
540.29 	Fund Commission.

540.30 	EFFECTIVE DATE. This section is effective July 1, 2016.

540.31 	Sec. 15. Minnesota Statutes 2014, section 127A.51, is amended to read:
540.32 	127A.51 STATEWIDE AVERAGE REVENUE.
540.33 	By October December 1 of each year the commissioner must estimate the statewide 
540.34 	average adjusted general revenue per adjusted pupil unit and the disparity in adjusted 
541.1 	general revenue among pupils and districts by computing the ratio of the 95th percentile 
541.2 	to the fifth percentile of adjusted general revenue. The commissioner must provide that 
541.3 	information to all districts.
541.4 	If the disparity in adjusted general revenue as measured by the ratio of the 95th 
541.5 	percentile to the fifth percentile increases in any year, the commissioner shall recommend 
541.6 	to the legislature options for change in the general education formula that will limit the 
541.7 	disparity in adjusted general revenue to no more than the disparity for the previous 
541.8 	school year. The commissioner must submit the recommended options to the education 
541.9 	committees of the legislature by January 15 February 1.
541.10 	For purposes of this section and section 126C.10, adjusted general revenue means 
541.11 	the sum of basic revenue under section 126C.10, subdivision 2; referendum revenue under 
541.12 	section 126C.17; local optional revenue under section 126C.10, subdivision 2e; and equity 
541.13 	revenue under section 126C.10, subdivisions 24a and 24b.

541.14 	Sec. 16. Laws 2015, First Special Session chapter 3, article 1, section 24, is amended 
541.15 	to read:
541.16 	Sec. 24. COMPENSATORY REVENUE; INTERMEDIATE DISTRICT.
 541.17 	For the 2015-2016 2016-2017 school year only, for an intermediate district formed 
541.18 	under Minnesota Statutes, section 136D.41, the department must calculate compensatory 
541.19 	revenue based on the October 1, 2014 2015, enrollment counts for the South SouthWest
541.20 	Metro Educational Cooperative.

541.21 	Sec. 17. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 
541.22 	2, is amended to read:
541.23 		Subd. 2.General education aid. For general education aid under Minnesota 
541.24 	Statutes, section 126C.13, subdivision 4:

541.25
541.26		$  
	6,624,310,000
6,649,435,000
	.....
	2016
	
541.27
541.28		$ 
	6,761,574,000
6,815,372,000
	.....
	2017
	
541.29 	The 2016 appropriation includes $622,908,000 for 2015 and $6,001,405,000
541.30 	6,026,524,000 for 2016.
541.31 	The 2017 appropriation includes $638,812,000 $641,412,000 for 2016 and 
541.32 	$6,122,762,000 $6,173,962,000 for 2017.

541.33 	Sec. 18. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 2, 
541.34 	is amended to read:
542.1 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
542.2 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

542.3
542.4		$
	15,661,000
16,251,000
	.....
	2016
	
542.5
542.6		$
	15,818,000
16,775,000
	.....
	2017

542.7 	Sec. 19. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 3, 
542.8 	is amended to read:
542.9 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
542.10 	Statutes, section 124D.1158:

542.11
542.12		$
	9,731,000
9,457,000
	.....
	2016
	
542.13
542.14		$
	10,361,000
10,365,000
	.....
	2017

542.15 	Sec. 20. VOLUNTARY BOUNDARY ALIGNMENT; MOORHEAD AND 
542.16 	DILWORTH-GLYNDON-FELTON.
 542.17 		Subdivision 1.Boundary realignment allowed. The school boards of Independent 
542.18 	School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, may realign 
542.19 	their shared district boundaries according to the provisions of this section.
542.20 		Subd. 2.Plan to establish new boundaries. (a) The school boards of Independent 
542.21 	School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, may jointly 
542.22 	develop a plan to realign their shared school district boundaries over a period of years. 
542.23 	(b) The plan must specify and identify each group of parcels that will be transferred 
542.24 	and the method used to determine the year during which each set of parcels is transferred. 
542.25 	The method of transfer may include an analysis of the relative tax base of the parcels to 
542.26 	be transferred and may make the transfers of parcels effective upon the relationship in 
542.27 	relative tax bases.
542.28 	(c) The written plan must be adopted by each school board after the board has 
542.29 	allowed public testimony on the plan.
542.30 	(d) The plan must be filed with both the county auditor and the commissioner of 
542.31 	education.
542.32 	(e) After adopting the plan, each school board must publish notice of the plan 
542.33 	realigning district boundaries. The notice must include a general description of the area 
542.34 	that will be affected by the proposed boundary alignment and the method by which the 
543.1 	boundaries will be realigned. The notice must also be mailed to each property owner of 
543.2 	record in the area proposed for realignment. 
543.3 		Subd. 3.Bonded debt. As of the effective date of each exchange of parcels between 
543.4 	the two school districts, for the next and subsequent tax years, the taxable property in the 
543.5 	newly aligned parcel is taxable for a portion of the bonded debt of the school district to 
543.6 	which the property is attached and is not taxable for the bonded debt from the school 
543.7 	district from which the property is detached.
543.8 		Subd. 4.County auditor notified. After adoption of the plan, each school board 
543.9 	must provide a copy of the plan to the county auditor. The county auditor may request 
543.10 	any other necessary information from the school districts to effect the transfer of parcels 
543.11 	between the school districts. Each year, the school districts must notify the county auditor 
543.12 	of what block of parcels, if any, will be transferred between the two school districts. The 
543.13 	county auditor must notify each affected property owner of the boundary change.
543.14 		Subd. 5.Report to commissioner of education. Upon adoption of the plan, the 
543.15 	school boards must submit a copy of the plan to the commissioner of education. The 
543.16 	districts must also provide any additional information necessary for computing school 
543.17 	aids and levies to the commissioner of education in the form and manner requested by 
543.18 	the department.

543.19 	EFFECTIVE DATE. This section is effective the day after the school boards of 
543.20 	Independent School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, 
543.21 	and their respective chief clerical officers timely comply with Minnesota Statutes, section 
543.22 	645.021, subdivisions 2 and 3.

543.23 	Sec. 21. GLENVILLE-EMMONS SCHOOL DISTRICT; OPERATING 
543.24 	REFERENDUM ADJUSTMENT.
 543.25 		Subdivision 1.Year first effective. Notwithstanding any law to the contrary, the 
543.26 	operating referendum approved by the voters of Independent School District No. 2886, 
543.27 	Glenville-Emmons, in April 2015, is first effective for fiscal year 2017 and may run for 
543.28 	the number of years stated on the ballot. The total referendum authority for fiscal year 
543.29 	2017, including any board-approved authority, may not exceed the amount approved 
543.30 	by the voters.
543.31 		Subd. 2.Documentation and process. The board of Independent School District 
543.32 	No. 2886, Glenville-Emmons, must submit to the commissioner of education the following:
543.33 	(1) a unanimously adopted written resolution of the board at a public meeting 
543.34 	authorizing the operating referendum to begin in fiscal year 2017;
544.1 	(2) documentation showing that the district's approved plan to eliminate its statutory 
544.2 	operating debt is being followed; and
544.3 	(3) any other information requested by the commissioner.
544.4 		Subd. 3.Levy adjustment. Independent School District No. 2886, 
544.5 	Glenville-Emmons, may certify the levy to accompany the fiscal year 2017 operating 
544.6 	referendum over a three-year period beginning with taxes payable in 2017.

544.7 	Sec. 22. EQUITY AID; FISCAL YEAR 2017.
 544.8 	For fiscal year 2017 only, the entire amount of the equity revenue adjustment under 
544.9 	section 13 is paid through state aid.

544.10 	ARTICLE 28
544.11 	CHARTER SCHOOLS

544.12 	Section 1. Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 1, is 
544.13 	amended to read:
544.14 		Subdivision 1.Eligible authorizers. The following organizations may authorize 
544.15 	one or more charter schools:
544.16 	(1) a school board, intermediate school district school board, or education district 
544.17 	organized under sections 123A.15 to 123A.19;
544.18 	(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code 
544.19 	of 1986, excluding a nonpublic sectarian or religious institution; any person other than a 
544.20 	natural person that directly or indirectly, through one or more intermediaries, controls, 
544.21 	is controlled by, or is under common control with the nonpublic sectarian or religious 
544.22 	institution; and any other charitable organization under this clause that in the federal IRS 
544.23 	Form 1023, Part IV, describes activities indicating a religious purpose, that:
544.24 	(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 
544.25 	Foundations;
544.26 	(ii) is registered with the attorney general's office; and
544.27 	(iii) (ii) is incorporated in the state of Minnesota and has been operating continuously 
544.28 	for at least five years but does not operate a charter school;
544.29 	(3) a Minnesota private college, notwithstanding clause (2), that grants two- or 
544.30 	four-year degrees and is registered with the Minnesota Office of Higher Education under 
544.31 	chapter 136A; community college, state university, or technical college governed by the 
544.32 	Board of Trustees of the Minnesota State Colleges and Universities; or the University 
544.33 	of Minnesota;
545.1 	(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, 
545.2 	and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 
545.3 	of 1986, may authorize one or more charter schools if the charter school has operated 
545.4 	for at least three years under a different authorizer and if the nonprofit corporation has 
545.5 	existed for at least 25 years; or
545.6 	(5) single-purpose authorizers formed as charitable, nonsectarian organizations 
545.7 	under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state 
545.8 	of Minnesota under chapter 317A as a corporation with no members or under section 
545.9 	322B.975 as a nonprofit limited liability company for the sole purpose of chartering schools.

545.10 	Sec. 2. Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 4, is 
545.11 	amended to read:
545.12 		Subd. 4.Application content. (a) An applicant must include in its application to 
545.13 	the commissioner to be an approved authorizer at least the following:
545.14 	(1) how chartering schools is a way for the organization to carry out its mission;
545.15 	(2) a description of the capacity of the organization to serve as an authorizer, 
545.16 	including the personnel who will perform the authorizing duties, their qualifications, the 
545.17 	amount of time they will be assigned to this responsibility, and the financial resources 
545.18 	allocated by the organization to this responsibility;
545.19 	(2) a description of the capacity of the organization to serve as an authorizer, 
545.20 	including the positions allocated to authorizing duties, the qualifications for those 
545.21 	positions, the full-time equivalencies of those positions, and the financial resources 
545.22 	available to fund the positions;
545.23 	(3) a description of the application and review process the authorizer will use to 
545.24 	make decisions regarding the granting of charters;
545.25 	(4) a description of the type of contract it will arrange with the schools it charters 
545.26 	that meets the provisions of section 124E.10;
545.27 	(5) the process to be used for providing ongoing oversight of the school consistent 
545.28 	with the contract expectations specified in clause (4) that assures that the schools chartered 
545.29 	are complying with both the provisions of applicable law and rules, and with the contract;
545.30 	(6) a description of the criteria and process the authorizer will use to grant expanded 
545.31 	applications under section 124E.06, subdivision 5;
545.32 	(7) the process for making decisions regarding the renewal or termination of 
545.33 	the school's charter based on evidence that demonstrates the academic, organizational, 
545.34 	and financial competency of the school, including its success in increasing student 
545.35 	achievement and meeting the goals of the charter school agreement; and
546.1 	(8) an assurance specifying that the organization is committed to serving as an 
546.2 	authorizer for the full five-year term.
546.3 	(b) Notwithstanding paragraph (a), an authorizer that is a school district may satisfy 
546.4 	the requirements of paragraph (a), clauses (1) and (2), and any requirement governing a 
546.5 	conflict of interest between an authorizer and its charter schools or ongoing evaluation or 
546.6 	continuing education of an administrator or other professional support staff by submitting 
546.7 	to the commissioner a written promise to comply with the requirements. 

546.8 	EFFECTIVE DATE. This section is effective January 1, 2017.

546.9 	Sec. 3. Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 5, is 
546.10 	amended to read:
546.11 		Subd. 5.Review by commissioner. (a) The commissioner shall review an 
546.12 	authorizer's performance every five years in a manner and form determined by the 
546.13 	commissioner, subject to paragraphs (b) and (c), and may review an authorizer's 
546.14 	performance more frequently at the commissioner's own initiative or at the request of a 
546.15 	charter school operator, charter school board member, or other interested party. The 
546.16 	commissioner, after completing the review, shall transmit a report with findings to the 
546.17 	authorizer.
546.18 	(b) Consistent with this subdivision, the commissioner must:
546.19 	(1) use criteria appropriate to the authorizer and the schools it charters to review 
546.20 	the authorizer's performance; and
546.21 	(2) consult with authorizers, charter school operators, and other charter school 
546.22 	stakeholders in developing review criteria under this paragraph.
546.23 	(c) The commissioner's form must use existing department data on the authorizer to 
546.24 	minimize duplicate reporting to the extent practicable. When reviewing an authorizer's 
546.25 	performance under this subdivision, the commissioner must not:
546.26 	(1) fail to credit;
546.27 	(2) withhold points; or
546.28 	(3) otherwise penalize an authorizer for failing to charter additional schools or for 
546.29 	the absence of complaints against the authorizer's current portfolio of charter schools.

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

546.31 	Sec. 4. Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 7, is 
546.32 	amended to read:
547.1 		Subd. 7.Withdrawal. If the governing board of an approved authorizer votes to 
547.2 	withdraw as an approved authorizer for a reason unrelated to any cause under section 
547.3 	124E.10, subdivision 4, the authorizer must notify all its chartered schools and the 
547.4 	commissioner in writing by July 15March 1 of its intent to withdraw as an authorizer on 
547.5 	June 30 in the next calendar year, regardless of when the authorizer's five-year term of 
547.6 	approval ends. The commissioner may approve the transfer of a charter school to a new 
547.7 	authorizer under this subdivision after the new authorizer submits an affidavit to the 
547.8 	commissioner section 124E.10, subdivision 5.

547.9 	Sec. 5. Minnesota Statutes 2015 Supplement, section 124E.10, subdivision 1, is 
547.10 	amended to read:
547.11 		Subdivision 1.Contents. (a) The authorization for a charter school must be in the 
547.12 	form of a written contract signed by the authorizer and the board of directors of the charter 
547.13 	school. The contract must be completed within 45 business days of the commissioner's 
547.14 	approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 
547.15 	copy of the signed charter contract within ten business days of its execution. The contract 
547.16 	for a charter school must be in writing and contain at least the following:
547.17 	(1) a declaration that the charter school will carry out the primary purpose in section 
547.18 	124E.01, subdivision 1, and how the school will report its implementation of the primary 
547.19 	purpose;
547.20 	(2) a declaration of the additional purpose or purposes in section 124E.01, 
547.21 	subdivision 1, that the school intends to carry out and how the school will report its 
547.22 	implementation of those purposes;
547.23 	(3) a description of the school program and the specific academic and nonacademic 
547.24 	outcomes that pupils must achieve;
547.25 	(4) a statement of admission policies and procedures;
547.26 	(5) a governance, management, and administration plan for the school;
547.27 	(6) signed agreements from charter school board members to comply with all 
547.28 	federal and state laws governing organizational, programmatic, and financial requirements 
547.29 	applicable to charter schools;
547.30 	(7) the criteria, processes, and procedures that the authorizer will use to monitor and 
547.31 	evaluate the fiscal, operational, and academic performance consistent with subdivision 
547.32 	3, paragraphs (a) and (b);
547.33 	(8) for contract renewal, the formal written performance evaluation of the school 
547.34 	that is a prerequisite for reviewing a charter contract under subdivision 3;
548.1 	(9) types and amounts of insurance liability coverage to be obtained by the charter 
548.2 	school, consistent with section 124E.03, subdivision 2, paragraph (d);
548.3 	(10) consistent with section 124E.09, paragraph (d), a provision to indemnify and 
548.4 	hold harmless the authorizer and its officers, agents, and employees from any suit, claim, 
548.5 	or liability arising from any operation of the charter school, and the commissioner and 
548.6 	department officers, agents, and employees notwithstanding section 3.736;
548.7 	(11) the term of the initial contract, which may be up to five years plus an additional 
548.8 	a preoperational planning year period, and up to five years for a renewed contract or a 
548.9 	contract with a new authorizer after a transfer of authorizers, if warranted by the school's 
548.10 	academic, financial, and operational performance;
548.11 	(12) how the board of directors or the operators of the charter school will provide 
548.12 	special instruction and services for children with a disability under sections 125A.03 
548.13 	to 125A.24, and 125A.65, a description of the financial parameters within which the 
548.14 	charter school will operate to provide the special instruction and services to children 
548.15 	with a disability;
548.16 	(13) the specific conditions for contract renewal that identify performance of all 
548.17 	students under the primary purpose of section 124E.01, subdivision 1, as the most 
548.18 	important factor in determining contract renewal;
548.19 	(14) the additional purposes under section 124E.01, subdivision 1, and related 
548.20 	performance obligations under clause (7) contained in the charter contract as additional 
548.21 	factors in determining contract renewal; and
548.22 	(15) the plan for an orderly closing of the school under chapter 317A, whether 
548.23 	the closure is a termination for cause, a voluntary termination, or a nonrenewal of the 
548.24 	contract, that includes establishing the responsibilities of the school board of directors 
548.25 	and the authorizer and notifying the commissioner, authorizer, school district in which the 
548.26 	charter school is located, and parents of enrolled students about the closure, information 
548.27 	and assistance sufficient to enable the student to re-enroll in another school, the transfer 
548.28 	of student records under section 124E.03, subdivision 5, paragraph (b), and procedures 
548.29 	for closing financial operations.
548.30 	(b) A charter school must design its programs to at least meet the outcomes adopted 
548.31 	by the commissioner for public school students, including world's best workforce goals 
548.32 	under section 120B.11, subdivision 1. In the absence of the commissioner's requirements, 
548.33 	the school must meet the outcomes contained in the contract with the authorizer. The 
548.34 	achievement levels of the outcomes contained in the contract may exceed the achievement 
548.35 	levels of any outcomes adopted by the commissioner for public school students.

549.1 	Sec. 6. Minnesota Statutes 2015 Supplement, section 124E.10, subdivision 5, is 
549.2 	amended to read:
549.3 		Subd. 5.Mutual nonrenewal. If the authorizer and the charter school board of 
549.4 	directors mutually agree not to renew the contract, or if the governing board of an approved 
549.5 	authorizer votes to withdraw as an approved authorizer for a reason unrelated to any cause 
549.6 	under subdivision 4, a change in authorizers is allowed. The authorizer and the school 
549.7 	board must jointly submit a written and signed letter of their intent to the commissioner to 
549.8 	mutually not renew the contract. The authorizer that is a party to the existing contract must 
549.9 	inform the proposed authorizer about the fiscal, operational, and student performance status 
549.10 	of the school, as well as any including unmet contract outcomes and other outstanding 
549.11 	contractual obligations that exist. The charter contract between the proposed authorizer 
549.12 	and the school must identify and provide a plan to address any outstanding obligations from 
549.13 	the previous contract. The proposed contract must be submitted at least 105 business days 
549.14 	before the end of the existing charter contract. The commissioner shall have 30 business 
549.15 	days to review and make a determination. The proposed authorizer and the school shall 
549.16 	have 15 business days to respond to the determination and address any issues identified by 
549.17 	the commissioner. A final determination by the commissioner shall be made no later than 
549.18 	45 business days before the end of the current charter contract. If no change in authorizer 
549.19 	is approved, the school and the current authorizer may withdraw their letter of nonrenewal 
549.20 	and enter into a new contract. If the transfer of authorizers is not approved and the current 
549.21 	authorizer and the school do not withdraw their letter and enter into a new contract, the 
549.22 	school must be dissolved according to applicable law and the terms of the contract.

549.23 	Sec. 7. Minnesota Statutes 2015 Supplement, section 124E.16, subdivision 2, is 
549.24 	amended to read:
549.25 		Subd. 2.Annual public reports. (a) A charter school must publish an annual report 
549.26 	approved by the board of directors. The annual report must at least include information 
549.27 	on school enrollment, student attrition, governance and management, staffing, finances, 
549.28 	academic performance, innovative practices and implementation, and future plans. A 
549.29 	charter school may combine this report with the reporting required under section 120B.11. 
549.30 	A charter school must post the annual report on the school's official Web site. A charter 
549.31 	school must also distribute the annual report by publication, mail, or electronic means to 
549.32 	its authorizer, school employees, and parents and legal guardians of students enrolled in 
549.33 	the charter school. The reports are public data under chapter 13.
549.34 	(b) The commissioner shall establish specifications for An authorizer must submit an 
549.35 	authorizer's annual public report that in a manner specified by the commissioner by January 
550.1 	15 for the previous school year ending June 30 that shall at least include key indicators of 
550.2 	school academic, operational, and financial performance. The report is part of the system 
550.3 	to evaluate authorizer performance under section 124E.05, subdivision 5. The report shall 
550.4 	at least include key indicators of school academic, operational, and financial performance.

550.5 	Sec. 8. Minnesota Statutes 2014, section 127A.45, subdivision 6a, is amended to read:
550.6 		Subd. 6a.Cash flow adjustment. The board of directors of any charter school 
550.7 	serving fewer than 200 students where the percent of students eligible for special 
550.8 	education services equals at least 90 percent of the charter school's total enrollment 
550.9 	eligible special education charter school under section 124E.21, subdivision 2, may 
550.10 	request that the commissioner of education accelerate the school's cash flow under this 
550.11 	section. The commissioner must approve a properly submitted request within 30 days of 
550.12 	its receipt. The commissioner must accelerate the school's regular special education aid 
550.13 	payments according to the schedule in the school's request and modify the payments to the 
550.14 	school under subdivision 3 accordingly. A school must not receive current payments of 
550.15 	regular special education aid exceeding 90 percent of its estimated aid entitlement for the 
550.16 	fiscal year. The commissioner must delay the special education aid payments to all other 
550.17 	school districts and charter schools in proportion to each district or charter school's total 
550.18 	share of regular special education aid such that the overall aid payment savings from the 
550.19 	aid payment shift remains unchanged for any fiscal year.

550.20 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
550.21 	later.

550.22 	Sec. 9. Laws 2015, First Special Session chapter 3, article 4, section 4, the effective 
550.23 	date, is amended to read:

550.24 	EFFECTIVE DATE. This section is effective the day following final enactment 
550.25 	except the provision under paragraph (g) allowing prekindergarten deaf or hard-of-hearing 
550.26 	pupils to enroll in a charter school is effective only if the commissioner of education 
550.27 	determines there is no added cost attributable to the pupil for the 2016-2017 school year 
550.28 	and later.

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

550.30 	Sec. 10. Laws 2015, First Special Session chapter 3, article 4, section 9, subdivision 2, 
550.31 	is amended to read:
551.1 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
551.2 	Statutes, section 124D.11, subdivision 4 124E.22: 

551.3
551.4		$
	66,787,000
63,540,000
	.....
	2016
	
551.5
551.6		$
	73,603,000
70,132,000
	.....
	2017
	
551.7 	The 2016 appropriation includes $6,032,000 for 2015 and $60,755,000 $57,508,000
551.8 	for 2016.
551.9 	The 2017 appropriation includes $6,750,000 $6,389,000 for 2016 and $66,853,000
551.10 	$63,743,000 for 2017.

551.11 	ARTICLE 29
551.12 	SPECIAL EDUCATION

551.13 	Section 1. Minnesota Statutes 2015 Supplement, section 120B.125, is amended to read:
551.14 	120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION 
551.15 	TO POSTSECONDARY EDUCATION AND EMPLOYMENT; PERSONAL 
551.16 	LEARNING PLANS.
551.17 	(a) Consistent with sections 120B.13, 120B.131, 120B.132, 120B.14, 120B.15, 
551.18 	120B.30, subdivision 1, paragraph (c), 125A.08, and other related sections, school 
551.19 	districts, beginning in the 2013-2014 school year, must assist all students by no later 
551.20 	than grade 9 to explore their educational, college, and career interests, aptitudes, and 
551.21 	aspirations and develop a plan for a smooth and successful transition to postsecondary 
551.22 	education or employment. All students' plans must:
551.23 	(1) provide a comprehensive plan to prepare for and complete a career and college 
551.24 	ready curriculum by meeting state and local academic standards and developing career and 
551.25 	employment-related skills such as team work, collaboration, creativity, communication, 
551.26 	critical thinking, and good work habits;
551.27 	(2) emphasize academic rigor and high expectations;
551.28 	(3) help students identify interests, aptitudes, aspirations, and personal learning 
551.29 	styles that may affect their career and college ready goals and postsecondary education 
551.30 	and employment choices;
551.31 	(4) set appropriate career and college ready goals with timelines that identify 
551.32 	effective means for achieving those goals;
551.33 	(5) help students access education and career options;
552.1 	(6) integrate strong academic content into career-focused courses and applied and 
552.2 	experiential learning opportunities and integrate relevant career-focused courses and 
552.3 	applied and experiential learning opportunities into strong academic content;
552.4 	(7) help identify and access appropriate counseling and other supports and assistance 
552.5 	that enable students to complete required coursework, prepare for postsecondary education 
552.6 	and careers, and obtain information about postsecondary education costs and eligibility 
552.7 	for financial aid and scholarship;
552.8 	(8) help identify collaborative partnerships among prekindergarten through grade 
552.9 	12 schools, postsecondary institutions, economic development agencies, and local and 
552.10 	regional employers that support students' transition to postsecondary education and 
552.11 	employment and provide students with applied and experiential learning opportunities; and
552.12 	(9) be reviewed and revised at least annually by the student, the student's parent or 
552.13 	guardian, and the school or district to ensure that the student's course-taking schedule keeps 
552.14 	the student making adequate progress to meet state and local academic standards and high 
552.15 	school graduation requirements and with a reasonable chance to succeed with employment 
552.16 	or postsecondary education without the need to first complete remedial course work.
552.17 	(b) A school district may develop grade-level curricula or provide instruction that 
552.18 	introduces students to various careers, but must not require any curriculum, instruction, 
552.19 	or employment-related activity that obligates an elementary or secondary student to 
552.20 	involuntarily select or pursue a career, career interest, employment goals, or related job 
552.21 	training.
552.22 	(c) Educators must possess the knowledge and skills to effectively teach all English 
552.23 	learners in their classrooms. School districts must provide appropriate curriculum, 
552.24 	targeted materials, professional development opportunities for educators, and sufficient 
552.25 	resources to enable English learners to become career and college ready.
552.26 	(d) When assisting students in developing a plan for a smooth and successful 
552.27 	transition to postsecondary education and employment, districts must recognize the unique 
552.28 	possibilities of each student and ensure that the contents of each student's plan reflect the 
552.29 	student's unique talents, skills, and abilities as the student grows, develops, and learns.
552.30 	(e) If a student with a disability has an individualized education program (IEP) or 
552.31 	standardized written plan that meets the plan components of this section, the IEP satisfies 
552.32 	the requirement and no additional transition plan is needed.

552.33 	Sec. 2. Minnesota Statutes 2014, section 122A.31, subdivision 3, is amended to read:
552.34 		Subd. 3.Qualified interpreters. The Department of Education and the resource 
552.35 	center: state specialist for deaf and hard of hearing hard-of-hearing shall work with 
553.1 	existing interpreter/transliterator training programs, other training/educational institutions, 
553.2 	and the regional service centers to ensure that ongoing staff development training for 
553.3 	educational interpreters/transliterators is provided throughout the state.

553.4 	Sec. 3. Minnesota Statutes 2014, section 124D.15, subdivision 15, is amended to read:
553.5 		Subd. 15.Eligibility. A child is eligible to participate in a school readiness program 
553.6 	if the child:
553.7 	(1) is at least three years old on September 1;
553.8 	(2) has completed health and developmental screening within 90 days of program 
553.9 	enrollment under sections 121A.16 to 121A.19; and
553.10 	(3) has one or more of the following risk factors:
553.11 	(i) qualifies for free or reduced-price lunch;
553.12 	(ii) is an English learner;
553.13 	(iii) is homeless;
553.14 	(iv) has an individualized education program (IEP) or an individual interagency 
553.15 	intervention plan (IIIP) standardized written plan;
553.16 	(v) is identified, through health and developmental screenings under sections 
553.17 	121A.16 to 121A.19, with a potential risk factor that may influence learning; or
553.18 	(vi) is defined as at-risk at risk by the school district.

553.19 	Sec. 4. Minnesota Statutes 2015 Supplement, section 125A.08, is amended to read:
553.20 	125A.08 INDIVIDUALIZED EDUCATION PROGRAMS.
553.21 	(a) At the beginning of each school year, each school district shall have in effect, for 
553.22 	each child with a disability, an individualized education program.
553.23 	(b) As defined in this section, every district must ensure the following:
553.24 	(1) all students with disabilities are provided the special instruction and services 
553.25 	which are appropriate to their needs. Where the individualized education program team 
553.26 	has determined appropriate goals and objectives based on the student's needs, including 
553.27 	the extent to which the student can be included in the least restrictive environment, 
553.28 	and where there are essentially equivalent and effective instruction, related services, or 
553.29 	assistive technology devices available to meet the student's needs, cost to the district may 
553.30 	be among the factors considered by the team in choosing how to provide the appropriate 
553.31 	services, instruction, or devices that are to be made part of the student's individualized 
553.32 	education program. The individualized education program team shall consider and 
553.33 	may authorize services covered by medical assistance according to section 256B.0625, 
553.34 	subdivision 26. Before a school district evaluation team makes a determination of other 
554.1 	health disability under Minnesota Rules, part 3525.1335, subparts 1 and 2, item A, subitem 
554.2 	(1), the evaluation team must seek written documentation of the student's medically 
554.3 	diagnosed chronic or acute health condition signed by a licensed physician or a licensed 
554.4 	health care provider acting within the scope of the provider's practice. The student's 
554.5 	needs and the special education instruction and services to be provided must be agreed 
554.6 	upon through the development of an individualized education program. The program 
554.7 	must address the student's need to develop skills to live and work as independently 
554.8 	as possible within the community. The individualized education program team must 
554.9 	consider positive behavioral interventions, strategies, and supports that address behavior 
554.10 	needs for children. During grade 9, the program must address the student's needs for 
554.11 	transition from secondary services to postsecondary education and training, employment, 
554.12 	community participation, recreation, and leisure and home living. In developing the 
554.13 	program, districts must inform parents of the full range of transitional goals and related 
554.14 	services that should be considered. The program must include a statement of the needed 
554.15 	transition services, including a statement of the interagency responsibilities or linkages or 
554.16 	both before secondary services are concluded. If the individualized education program 
554.17 	meets the plan components in section 120B.125, the individualized education program 
554.18 	satisfies the requirement and no additional transition plan is needed;
554.19 	(2) children with a disability under age five and their families are provided special 
554.20 	instruction and services appropriate to the child's level of functioning and needs;
554.21 	(3) children with a disability and their parents or guardians are guaranteed procedural 
554.22 	safeguards and the right to participate in decisions involving identification, assessment 
554.23 	including assistive technology assessment, and educational placement of children with a 
554.24 	disability;
554.25 	(4) eligibility and needs of children with a disability are determined by an initial 
554.26 	evaluation or reevaluation, which may be completed using existing data under United 
554.27 	States Code, title 20, section 33, et seq.;
554.28 	(5) to the maximum extent appropriate, children with a disability, including those 
554.29 	in public or private institutions or other care facilities, are educated with children who 
554.30 	are not disabled, and that special classes, separate schooling, or other removal of children 
554.31 	with a disability from the regular educational environment occurs only when and to the 
554.32 	extent that the nature or severity of the disability is such that education in regular classes 
554.33 	with the use of supplementary services cannot be achieved satisfactorily;
554.34 	(6) in accordance with recognized professional standards, testing and evaluation 
554.35 	materials, and procedures used for the purposes of classification and placement of children 
555.1 	with a disability are selected and administered so as not to be racially or culturally 
555.2 	discriminatory; and
555.3 	(7) the rights of the child are protected when the parents or guardians are not known 
555.4 	or not available, or the child is a ward of the state.
555.5 	(c) For all paraprofessionals employed to work in programs whose role in part is 
555.6 	to provide direct support to students with disabilities, the school board in each district 
555.7 	shall ensure that:
555.8 	(1) before or beginning at the time of employment, each paraprofessional must 
555.9 	develop sufficient knowledge and skills in emergency procedures, building orientation, 
555.10 	roles and responsibilities, confidentiality, vulnerability, and reportability, among other 
555.11 	things, to begin meeting the needs, especially disability-specific and behavioral needs, of 
555.12 	the students with whom the paraprofessional works;
555.13 	(2) annual training opportunities are required to enable the paraprofessional to 
555.14 	continue to further develop the knowledge and skills that are specific to the students with 
555.15 	whom the paraprofessional works, including understanding disabilities, the unique and 
555.16 	individual needs of each student according to the student's disability and how the disability 
555.17 	affects the student's education and behavior, following lesson plans, and implementing 
555.18 	follow-up instructional procedures and activities; and
555.19 	(3) a districtwide process obligates each paraprofessional to work under the ongoing 
555.20 	direction of a licensed teacher and, where appropriate and possible, the supervision of a 
555.21 	school nurse.

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

555.23 	Sec. 5. Minnesota Statutes 2015 Supplement, section 125A.083, is amended to read:
555.24 	125A.083 STUDENT INFORMATION SYSTEMS; TRANSFERRING 
555.25 	RECORDS.
555.26 	(a) To efficiently and effectively meet federal and state compliance and 
555.27 	accountability requirements using an online case management reporting system, beginning 
555.28 	July 1, 2018, a school districts district may contract only for a student information system 
555.29 	that is Schools Interoperability Framework compliant and compatible with the.
555.30 	(b) Beginning on July 1 of the fiscal year following the year that the commissioner 
555.31 	of education certifies to the legislature under paragraph (c) that a compatible compliant 
555.32 	system exists, a school district must use an online system for compliance reporting 
555.33 	under section 125A.085beginning in the 2018-2019 school year and later. A district's 
555.34 	information system under this section must facilitate the seamless transfer of student 
556.1 	records for a student with disabilities who transfers between school districts, including 
556.2 	records containing the student's evaluation report, service plan, and other due process 
556.3 	forms and information, regardless of what information system any one district uses.
556.4 	(c) As a part of the annual report required under section 125A.085, paragraph (f), the 
556.5 	commissioner must specify whether a compatible compliant system exists and if so, list 
556.6 	each vendor's systems that meet the criteria in paragraph (b).

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

556.8 	Sec. 6. Minnesota Statutes 2014, section 125A.091, subdivision 11, is amended to read:
556.9 		Subd. 11.Facilitated team meeting. A facilitated team meeting is an IEP, IFSP, or 
556.10 	IIIPmultiagency team meeting led by an impartial state-provided facilitator to promote 
556.11 	effective communication and assist a team in developing an individualized education 
556.12 	program.

556.13 	Sec. 7. Minnesota Statutes 2015 Supplement, section 125A.0942, subdivision 3, 
556.14 	is amended to read:
556.15 		Subd. 3.Physical holding or seclusion. (a) Physical holding or seclusion may be 
556.16 	used only in an emergency. A school that uses physical holding or seclusion shall meet the 
556.17 	following requirements:
556.18 	(1) physical holding or seclusion is the least intrusive intervention that effectively 
556.19 	responds to the emergency;
556.20 	(2) physical holding or seclusion is not used to discipline a noncompliant child;
556.21 	(3) physical holding or seclusion ends when the threat of harm ends and the staff 
556.22 	determines the child can safely return to the classroom or activity;
556.23 	(4) staff directly observes the child while physical holding or seclusion is being used;
556.24 	(5) each time physical holding or seclusion is used, the staff person who implements 
556.25 	or oversees the physical holding or seclusion documents, as soon as possible after the 
556.26 	incident concludes, the following information:
556.27 	(i) a description of the incident that led to the physical holding or seclusion;
556.28 	(ii) why a less restrictive measure failed or was determined by staff to be 
556.29 	inappropriate or impractical;
556.30 	(iii) the time the physical holding or seclusion began and the time the child was 
556.31 	released; and
556.32 	(iv) a brief record of the child's behavioral and physical status;
556.33 	(6) the room used for seclusion must:
556.34 	(i) be at least six feet by five feet;
557.1 	(ii) be well lit, well ventilated, adequately heated, and clean;
557.2 	(iii) have a window that allows staff to directly observe a child in seclusion;
557.3 	(iv) have tamperproof fixtures, electrical switches located immediately outside the 
557.4 	door, and secure ceilings;
557.5 	(v) have doors that open out and are unlocked, locked with keyless locks that 
557.6 	have immediate release mechanisms, or locked with locks that have immediate release 
557.7 	mechanisms connected with a fire and emergency system; and
557.8 	(vi) not contain objects that a child may use to injure the child or others; and
557.9 	(7) before using a room for seclusion, a school must:
557.10 	(i) receive written notice from local authorities that the room and the locking 
557.11 	mechanisms comply with applicable building, fire, and safety codes; and
557.12 	(ii) register the room with the commissioner, who may view that room; and.
557.13 	(8) until August 1, 2015, a school district may use prone restraints with children 
557.14 	age five or older if:
557.15 	(i) the district has provided to the department a list of staff who have had specific 
557.16 	training on the use of prone restraints;
557.17 	(ii) the district provides information on the type of training that was provided and 
557.18 	by whom;
557.19 	(iii) only staff who received specific training use prone restraints;
557.20 	(iv) each incident of the use of prone restraints is reported to the department within 
557.21 	five working days on a form provided by the department; and
557.22 	(v) the district, before using prone restraints, must review any known medical or 
557.23 	psychological limitations that contraindicate the use of prone restraints.
557.24 	The department must collect data on districts' use of prone restraints and publish the 
557.25 	data in a readily accessible format on the department's Web site on a quarterly basis.
557.26 	(b) By February 1, 2015, and annually thereafter, stakeholders may, as necessary, 
557.27 	recommend to the commissioner specific and measurable implementation and outcome 
557.28 	goals for reducing the use of restrictive procedures and the commissioner must submit to 
557.29 	the legislature a report on districts' progress in reducing the use of restrictive procedures 
557.30 	that recommends how to further reduce these procedures and eliminate the use of 
557.31 	prone restraints seclusion. The statewide plan includes the following components: 
557.32 	measurable goals; the resources, training, technical assistance, mental health services, 
557.33 	and collaborative efforts needed to significantly reduce districts' use of prone restraints
557.34 	seclusion; and recommendations to clarify and improve the law governing districts' use 
557.35 	of restrictive procedures. The commissioner must consult with interested stakeholders 
557.36 	when preparing the report, including representatives of advocacy organizations, special 
558.1 	education directors, teachers, paraprofessionals, intermediate school districts, school 
558.2 	boards, day treatment providers, county social services, state human services department 
558.3 	staff, mental health professionals, and autism experts. By June 30Beginning with the 
558.4 	2016-2017 school year, in a form and manner determined by the commissioner, districts 
558.5 	must report data quarterly to the department by January 15, April 15, July 15, and October 
558.6 	15 about individual students who have been secluded. By July 15 each year, districts 
558.7 	must report summary data on their use of restrictive procedures to the department for 
558.8 	the prior school year, July 1 through June 30, in a form and manner determined by the 
558.9 	commissioner. The summary data must include information about the use of restrictive 
558.10 	procedures, including use of reasonable force under section 121A.582.

558.11 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
558.12 	later.

558.13 	Sec. 8. Minnesota Statutes 2014, section 125A.0942, subdivision 4, is amended to read:
558.14 		Subd. 4.Prohibitions. The following actions or procedures are prohibited:
558.15 	(1) engaging in conduct prohibited under section 121A.58;
558.16 	(2) requiring a child to assume and maintain a specified physical position, activity, 
558.17 	or posture that induces physical pain;
558.18 	(3) totally or partially restricting a child's senses as punishment;
558.19 	(4) presenting an intense sound, light, or other sensory stimuli using smell, taste, 
558.20 	substance, or spray as punishment;
558.21 	(5) denying or restricting a child's access to equipment and devices such as walkers, 
558.22 	wheelchairs, hearing aids, and communication boards that facilitate the child's functioning, 
558.23 	except when temporarily removing the equipment or device is needed to prevent injury 
558.24 	to the child or others or serious damage to the equipment or device, in which case the 
558.25 	equipment or device shall be returned to the child as soon as possible;
558.26 	(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or 
558.27 	physical abuse under section 626.556;
558.28 	(7) withholding regularly scheduled meals or water;
558.29 	(8) denying access to bathroom facilities; and
558.30 	(9) physical holding that restricts or impairs a child's ability to breathe, restricts or 
558.31 	impairs a child's ability to communicate distress, places pressure or weight on a child's 
558.32 	head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in 
558.33 	straddling a child's torso.; and
558.34 	(10) prone restraint.

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

559.2 	Sec. 9. Minnesota Statutes 2015 Supplement, section 125A.11, subdivision 1, is 
559.3 	amended to read:
559.4 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2015 and 
559.5 	later, when a school district provides special instruction and services for a pupil with 
559.6 	a disability as defined in section 125A.02 outside the district of residence, excluding 
559.7 	a pupil for whom an adjustment to special education aid is calculated according to 
559.8 	section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the 
559.9 	resident district must be reduced by an amount equal to (1) the actual cost of providing 
559.10 	special instruction and services to the pupil, including a proportionate amount for special 
559.11 	transportation and unreimbursed building lease and debt service costs for facilities 
559.12 	used primarily for special education, plus (2) the amount of general education revenue, 
559.13 	excluding local optional revenue, plus local optional aid and referendum equalization aid 
559.14 	attributable to that pupil, calculated using the resident district's average general education 
559.15 	revenue and referendum equalization aid per adjusted pupil unit excluding basic skills 
559.16 	revenue, elementary sparsity revenue and secondary sparsity revenue, minus (3) the 
559.17 	amount of special education aid for children with a disability under section 125A.76 
559.18 	received on behalf of that child, minus (4) if the pupil receives special instruction and 
559.19 	services outside the regular classroom for more than 60 percent of the school day, the 
559.20 	amount of general education revenue and referendum equalization aid, excluding portions 
559.21 	attributable to district and school administration, district support services, operations and 
559.22 	maintenance, capital expenditures, and pupil transportation, attributable to that pupil 
559.23 	for the portion of time the pupil receives special instruction and services outside of the 
559.24 	regular classroom, calculated using the resident district's average general education 
559.25 	revenue and referendum equalization aid per adjusted pupil unit excluding basic skills 
559.26 	revenue, elementary sparsity revenue and secondary sparsity revenue and the serving 
559.27 	district's basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 
559.28 	per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by a 
559.29 	cooperative unit without a fiscal agent school district, the general education revenue and 
559.30 	referendum equalization aid attributable to a pupil must be calculated using the resident 
559.31 	district's average general education revenue and referendum equalization aid excluding 
559.32 	compensatory revenue, elementary sparsity revenue, and secondary sparsity revenue. 
559.33 	Special education aid paid to the district or cooperative providing special instruction and 
559.34 	services for the pupil must be increased by the amount of the reduction in the aid paid 
559.35 	to the resident district. Amounts paid to cooperatives under this subdivision and section 
560.1 	127A.47, subdivision 7, shall be recognized and reported as revenues and expenditures on 
560.2 	the resident school district's books of account under sections 123B.75 and 123B.76. If 
560.3 	the resident district's special education aid is insufficient to make the full adjustment, the 
560.4 	remaining adjustment shall be made to other state aid due to the district.
560.5 	(b) Notwithstanding paragraph (a), when a charter school receiving special education 
560.6 	aid under section 124E.21, subdivision 3, provides special instruction and services for 
560.7 	a pupil with a disability as defined in section 125A.02, excluding a pupil for whom an 
560.8 	adjustment to special education aid is calculated according to section 127A.46, subdivision 
560.9 	7, paragraphs (b) to (e), special education aid paid to the resident district must be reduced 
560.10 	by an amount equal to that calculated under paragraph (a) as if the charter school received 
560.11 	aid under section 124E.21, subdivision 1. Notwithstanding paragraph (a), special education 
560.12 	aid paid to the charter school providing special instruction and services for the pupil must 
560.13 	not be increased by the amount of the reduction in the aid paid to the resident district.
560.14 	(c) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs 
560.15 	(b) to (d),:
560.16 	(1) an intermediate district or a special education cooperative may recover 
560.17 	unreimbursed costs of serving pupils with a disability, including building lease, debt 
560.18 	service, and indirect costs necessary for the general operation of the organization, by 
560.19 	billing membership fees and nonmember access fees to the resident district;
560.20 	(2) a charter school where more than 30 percent of enrolled students receive special 
560.21 	education and related services, a site approved under section 125A.515, an intermediate 
560.22 	district, or a special education cooperative, or a school district that served as the applicant 
560.23 	agency for a group of school districts for federal special education aids for fiscal year 2006
560.24 	may apply to the commissioner for authority to charge the resident district an additional 
560.25 	amount to recover any remaining unreimbursed costs of serving pupils with a disability.;
560.26 	(3) the billing under clause (1) or application under clause (2) must include a 
560.27 	description of the costs and the calculations used to determine the unreimbursed portion to 
560.28 	be charged to the resident district. Amounts approved by the commissioner under this 
560.29 	paragraph clause (2) must be included in the tuition billings or aid adjustments under 
560.30 	paragraph (a), or section 127A.47, subdivision 7, paragraphs (b) to (d), as applicable.
560.31 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraph 
560.32 	(b), "general education revenue and referendum equalization aid" means the sum of the 
560.33 	general education revenue according to section 126C.10, subdivision 1, excluding the 
560.34 	local optional levy according to section 126C.10, subdivision 2e, paragraph (c), plus the 
560.35 	referendum equalization aid according to section 126C.17, subdivision 7.

561.1 	Sec. 10. Minnesota Statutes 2015 Supplement, section 125A.21, subdivision 3, is 
561.2 	amended to read:
561.3 		Subd. 3.Use of reimbursements. Of the reimbursements received, districts may
561.4 	School districts must reserve third-party revenue and must spend the reimbursements 
561.5 	received only to:
561.6 	(1) retain an amount sufficient to compensate the district for its administrative costs 
561.7 	of obtaining reimbursements;
561.8 	(2) regularly obtain from education- and health-related entities training and other 
561.9 	appropriate technical assistance designed to improve the district's ability to access 
561.10 	third-party payments for individualized education program or individualized family 
561.11 	service plan health-related services; or
561.12 	(3) reallocate reimbursements for the benefit of students with individualized 
561.13 	education programs or individualized family service plans in the district.

561.14 	Sec. 11. Minnesota Statutes 2015 Supplement, section 125A.63, subdivision 4, is 
561.15 	amended to read:
561.16 		Subd. 4.Advisory committees. (a) The commissioner shall establish advisory 
561.17 	committees for the deaf and hard-of-hearing and for the blind and visually impaired. The 
561.18 	advisory committees shall develop recommendations and submit an annual report to the 
561.19 	commissioner on the form and in the manner prescribed by the commissioner.
561.20 	(b) The advisory committees for the deaf and hard of hearing and for the blind and 
561.21 	visually impaired shall meet periodically at least four times per year and. The committees 
561.22 	must  each review, approve, and submit an annual a biennial report to the commissioner, 
561.23 	the education policy and finance committees of the legislature, and the Commission of 
561.24 	Deaf, DeafBlind, and Hard-of-Hearing Minnesotans. The reports must, at least:
561.25 	(1) identify and report the aggregate, data-based education outcomes for children 
561.26 	with the primary disability classification of deaf and hard of hearing or of blind and 
561.27 	visually impaired, consistent with the commissioner's child count reporting practices, the 
561.28 	commissioner's state and local outcome data reporting system by district and region, and 
561.29 	the school performance report cards under section 120B.36, subdivision 1; and
561.30 	(2) describe the implementation of a data-based plan for improving the education 
561.31 	outcomes of deaf and hard of hearing or blind and visually impaired children that is 
561.32 	premised on evidence-based best practices, and provide a cost estimate for ongoing 
561.33 	implementation of the plan.

562.1 	Sec. 12. Minnesota Statutes 2015 Supplement, section 125A.76, subdivision 2c, 
562.2 	is amended to read:
562.3 		Subd. 2c.Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a 
562.4 	district's special education aid equals the sum of the district's special education aid under 
562.5 	subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and the 
562.6 	district's excess cost aid under section 125A.79, subdivision 7.
562.7 	(b) For fiscal year 2016 and later, a district's special education aid equals the sum of 
562.8 	the district's special education initial aid under subdivision 2a and the district's excess cost 
562.9 	aid under section 125A.79, subdivision 5.
562.10 	(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for 
562.11 	a school district must not exceed the sum of the special education aid the district would 
562.12 	have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 
562.13 	and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 
562.14 	127A.47, subdivision 7, and the product of the district's average daily membership served 
562.15 	and the special education aid increase limit.
562.16 	(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education 
562.17 	aid for a school district must not exceed the sum of: (i) the product of the district's average 
562.18 	daily membership served and the special education aid increase limit and (ii) the product 
562.19 	of the sum of the special education aid the district would have received for fiscal year 2016 
562.20 	under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according 
562.21 	to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of 
562.22 	the district's average daily membership served for the current fiscal year to the district's 
562.23 	average daily membership served for fiscal year 2016, and the program growth factor.
562.24 	(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special 
562.25 	education aid for a school district, not including a charter school or cooperative unit as 
562.26 	defined in section 123A.24, must not be less than the lesser of (1) the district's nonfederal 
562.27 	special education expenditures for that fiscal year or (2) the product of the sum of the 
562.28 	special education aid the district would have received for fiscal year 2016 under Minnesota 
562.29 	Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes 
562.30 	2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's adjusted 
562.31 	daily membership for the current fiscal year to the district's average daily membership for 
562.32 	fiscal year 2016, and the program growth factor.
562.33 	(f) Notwithstanding subdivision 2a and section 125A.79, a charter school in its first 
562.34 	year of operation shall generate special education aid based on current year data. A newly 
562.35 	formed cooperative unit as defined in section 123A.24 may apply to the commissioner 
562.36 	for approval to generate special education aid for its first year of operation based on 
563.1 	current year data, with an offsetting adjustment to the prior year data used to calculate aid 
563.2 	for programs at participating school districts or previous cooperatives that were replaced 
563.3 	by the new cooperative.
563.4 	(g) The department shall establish procedures through the uniform financial 
563.5 	accounting and reporting system to identify and track all revenues generated from 
563.6 	third-party billings as special education revenue at the school district level; include revenue 
563.7 	generated from third-party billings as special education revenue in the annual cross-subsidy 
563.8 	report; and exclude third-party revenue from calculation of excess cost aid to the districts.

563.9 	Sec. 13. Minnesota Statutes 2015 Supplement, section 125A.79, subdivision 1, is 
563.10 	amended to read:
563.11 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
563.12 	subdivision apply.
563.13 	(a) "Unreimbursed old formula special education expenditures" means:
563.14 	(1) old formula special education expenditures for the prior fiscal year; minus
563.15 	(2) for fiscal years 2014 and 2015, the sum of the special education aid under section 
563.16 	125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under 
563.17 	section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education 
563.18 	initial aid under section 125A.76, subdivision 2a; minus
563.19 	(3) for fiscal year 2016 and later, the amount of general education revenue, excluding 
563.20 	local optional revenue, plus local optional aid and referendum equalization aid for the 
563.21 	prior fiscal year attributable to pupils receiving special instruction and services outside the 
563.22 	regular classroom for more than 60 percent of the school day for the portion of time the 
563.23 	pupils receive special instruction and services outside the regular classroom, excluding 
563.24 	portions attributable to district and school administration, district support services, 
563.25 	operations and maintenance, capital expenditures, and pupil transportation.
563.26 	(b) "Unreimbursed nonfederal special education expenditures" means:
563.27 	(1) nonfederal special education expenditures for the prior fiscal year; minus
563.28 	(2) special education initial aid under section 125A.76, subdivision 2a; minus
563.29 	(3) the amount of general education revenue, excluding local optional revenue, plus 
563.30 	local optional aid, and referendum equalization aid for the prior fiscal year attributable 
563.31 	to pupils receiving special instruction and services outside the regular classroom for 
563.32 	more than 60 percent of the school day for the portion of time the pupils receive special 
563.33 	instruction and services outside of the regular classroom, excluding portions attributable to 
563.34 	district and school administration, district support services, operations and maintenance, 
563.35 	capital expenditures, and pupil transportation.
564.1 	(c) "General revenue" for a school district means the sum of the general education 
564.2 	revenue according to section 126C.10, subdivision 1, excluding transportation sparsity 
564.3 	revenue, local optional revenue, and total operating capital revenue. "General revenue" 
564.4 	for a charter school means the sum of the general education revenue according to section 
564.5 	124E.20, subdivision 1, and transportation revenue according to section 124E.23, 
564.6 	excluding referendum equalization aid, transportation sparsity revenue, and operating 
564.7 	capital revenue.

564.8 	Sec. 14. Minnesota Statutes 2015 Supplement, section 127A.47, subdivision 7, is 
564.9 	amended to read:
564.10 		Subd. 7.Alternative attendance programs. (a) The general education aid and 
564.11 	special education aid for districts must be adjusted for each pupil attending a nonresident 
564.12 	district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The 
564.13 	adjustments must be made according to this subdivision.
564.14 	(b) For purposes of this subdivision, the "unreimbursed cost of providing special 
564.15 	education and services" means the difference between: (1) the actual cost of providing 
564.16 	special instruction and services, including special transportation and unreimbursed 
564.17 	building lease and debt service costs for facilities used primarily for special education, for 
564.18 	a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 
564.19 	125A.51, who is enrolled in a program listed in this subdivision, minus (2) if the pupil 
564.20 	receives special instruction and services outside the regular classroom for more than 
564.21 	60 percent of the school day, the amount of general education revenue, excluding local 
564.22 	optional revenue, plus local optional aid and referendum equalization aid as defined in 
564.23 	section 125A.11, subdivision 1, paragraph (d), attributable to that pupil for the portion of 
564.24 	time the pupil receives special instruction and services outside of the regular classroom, 
564.25 	excluding portions attributable to district and school administration, district support 
564.26 	services, operations and maintenance, capital expenditures, and pupil transportation, 
564.27 	minus (3) special education aid under section 125A.76 attributable to that pupil, that is 
564.28 	received by the district providing special instruction and services. For purposes of this 
564.29 	paragraph, general education revenue and referendum equalization aid attributable to a 
564.30 	pupil must be calculated using the serving district's average general education revenue 
564.31 	and referendum equalization aid per adjusted pupil unit.
564.32 	(c) For fiscal year 2015 and later, special education aid paid to a resident district 
564.33 	must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 
564.34 	special education and services.
565.1 	(d) Notwithstanding paragraph (c), special education aid paid to a resident district 
565.2 	must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 
565.3 	education and services provided to students at an intermediate district, cooperative, or 
565.4 	charter school where the percent of students eligible for special education services is at 
565.5 	least 70 percent of the charter school's total enrollment.
565.6 	(e) Notwithstanding paragraph (c), special education aid paid to a resident district 
565.7 	must be reduced under paragraph (d) for students at a charter school receiving special 
565.8 	education aid under section 124E.21, subdivision 3, calculated as if the charter school 
565.9 	received special education aid under section 124E.21, subdivision 1.
565.10 	(f) Special education aid paid to the district or cooperative providing special 
565.11 	instruction and services for the pupil, or to the fiscal agent district for a cooperative, must 
565.12 	be increased by the amount of the reduction in the aid paid to the resident district under 
565.13 	paragraphs (c) and (d). If the resident district's special education aid is insufficient to make 
565.14 	the full adjustment under paragraphs (c), (d), and (e), the remaining adjustment shall be 
565.15 	made to other state aids due to the district.
565.16 	(g) Notwithstanding paragraph (a), general education aid paid to the resident district 
565.17 	of a nonspecial education student for whom an eligible special education charter school 
565.18 	receives general education aid under section 124E.20, subdivision 1, paragraph (c), must 
565.19 	be reduced by an amount equal to the difference between the general education aid 
565.20 	attributable to the student under section 124E.20, subdivision 1, paragraph (c), and the 
565.21 	general education aid that the student would have generated for the charter school under 
565.22 	section 124E.20, subdivision 1, paragraph (a). For purposes of this paragraph, "nonspecial 
565.23 	education student" means a student who does not meet the definition of pupil with a 
565.24 	disability as defined in section 125A.02 or the definition of a pupil in section 125A.51.
565.25 	(h) An area learning center operated by a service cooperative, intermediate district, 
565.26 	education district, or a joint powers cooperative may elect through the action of the 
565.27 	constituent boards to charge the resident district tuition for pupils rather than to have the 
565.28 	general education revenue paid to a fiscal agent school district. Except as provided in 
565.29 	paragraph (f), the district of residence must pay tuition equal to at least 90 and no more 
565.30 	than 100 percent of the district average general education revenue per pupil unit minus 
565.31 	an amount equal to the product of the formula allowance according to section 126C.10, 
565.32 	subdivision 2, times .0466, calculated without compensatory revenue, local optional 
565.33 	revenue, and transportation sparsity revenue, times the number of pupil units for pupils 
565.34 	attending the area learning center.

566.1 	Sec. 15. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 
566.2 	2, is amended to read:
566.3 		Subd. 2.Special education; regular. For special education aid under Minnesota 
566.4 	Statutes, section 125A.75:

566.5
566.6		$ 
	1,170,929,000
1,183,619,000
	.....
	2016
	
566.7
566.8		$ 
	1,229,706,000
1,247,107,000
	.....
	2017
	
566.9 	The 2016 appropriation includes $137,932,000 for 2015 and $1,032,997,000
566.10 	$1,045,687,000 for 2016.
566.11 	The 2017 appropriation includes $145,355,000 $147,202,000 for 2016 and 
566.12 	$1,084,351,000 $1,099,905,000 for 2017.

566.13 	Sec. 16. REDUCING STATE-GENERATED SPECIAL EDUCATION 
566.14 	PAPERWORK.
 566.15 	Notwithstanding other law to the contrary in fiscal years 2017 and 2018, the 
566.16 	commissioner of education must use existing budgetary resources to identify and remove 
566.17 	25 percent of the paperwork burden on Minnesota special education teachers that results 
566.18 	from state but not federally mandated special education compliance reporting requirements.

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

566.20 	Sec. 17. APPROPRIATION CANCELED.
 566.21 	$1,686,000 on June 30, 2016, is transferred from the information and 
566.22 	telecommunications technology systems and services account under Minnesota Statutes, 
566.23 	section 16E.21, to the general fund. This represents the amount the Department of 
566.24 	Education transferred to that account in fiscal year 2015 after determining that the special 
566.25 	education paperwork reduction activities authorized in an appropriation under Laws 2013, 
566.26 	chapter 116, article 5, section 31, subdivision 8, were not feasible based on a onetime 
566.27 	appropriation.

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

566.29 	ARTICLE 30
566.30 	FACILITIES AND TECHNOLOGY

566.31 	Section 1. Minnesota Statutes 2014, section 123B.52, subdivision 1, is amended to read:
567.1 		Subdivision 1.Contracts. A contract for work or labor, or for the purchase of 
567.2 	furniture, fixtures, or other property, except books registered under the copyright laws and 
567.3 	information systems software, or for the construction or repair of school houses, the 
567.4 	estimated cost or value of which shall exceed that specified in section 471.345, subdivision 
567.5 	3, must not be made by the school board without first advertising for bids or proposals by 
567.6 	two weeks' published notice in the official newspaper. This notice must state the time and 
567.7 	place of receiving bids and contain a brief description of the subject matter.
567.8 	Additional publication in the official newspaper or elsewhere may be made as the 
567.9 	board shall deem necessary.
567.10 	After taking into consideration conformity with the specifications, terms of delivery, 
567.11 	and other conditions imposed in the call for bids, every such contract for which a call for 
567.12 	bids has been issued must be awarded to the lowest responsible bidder, be duly executed 
567.13 	in writing, and be otherwise conditioned as required by law. The person to whom the 
567.14 	contract is awarded shall give a sufficient bond to the board for its faithful performance. 
567.15 	Notwithstanding section 574.26 or any other law to the contrary, on a contract limited to the 
567.16 	purchase of a finished tangible product, a board may require, at its discretion, a performance 
567.17 	bond of a contractor in the amount the board considers necessary. A record must be kept of 
567.18 	all bids, with names of bidders and amount of bids, and with the successful bid indicated 
567.19 	thereon. A bid containing an alteration or erasure of any price contained in the bid which 
567.20 	is used in determining the lowest responsible bid must be rejected unless the alteration or 
567.21 	erasure is corrected as provided in this section. An alteration or erasure may be crossed out 
567.22 	and the correction thereof printed in ink or typewritten adjacent thereto and initialed in ink 
567.23 	by the person signing the bid. In the case of identical low bids from two or more bidders, 
567.24 	the board may, at its discretion, utilize negotiated procurement methods with the tied low 
567.25 	bidders for that particular transaction, so long as the price paid does not exceed the low tied 
567.26 	bid price. In the case where only a single bid is received, the board may, at its discretion, 
567.27 	negotiate a mutually agreeable contract with the bidder so long as the price paid does not 
567.28 	exceed the original bid. If no satisfactory bid is received, the board may readvertise. 
567.29 	Standard requirement price contracts established for supplies or services to be purchased 
567.30 	by the district must be established by competitive bids. Such standard requirement price 
567.31 	contracts may contain escalation clauses and may provide for a negotiated price increase 
567.32 	or decrease based upon a demonstrable industrywide or regional increase or decrease in 
567.33 	the vendor's costs. Either party to the contract may request that the other party demonstrate 
567.34 	such increase or decrease. The term of such contracts must not exceed two years with an 
567.35 	option on the part of the district to renew for an additional two years. Contracts for the 
567.36 	purchase of perishable food items, except milk for school lunches and vocational training 
568.1 	programs, in any amount may be made by direct negotiation by obtaining two or more 
568.2 	written quotations for the purchase or sale, when possible, without advertising for bids or 
568.3 	otherwise complying with the requirements of this section or section 471.345, subdivision 
568.4 	3. All quotations obtained shall be kept on file for a period of at least one year after receipt.
568.5 	Every contract made without compliance with the provisions of this section shall be 
568.6 	void. Except in the case of the destruction of buildings or injury thereto, where the public 
568.7 	interest would suffer by delay, contracts for repairs may be made without advertising 
568.8 	for bids.

568.9 	Sec. 2. Minnesota Statutes 2015 Supplement, section 123B.53, subdivision 1, is 
568.10 	amended to read:
568.11 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
568.12 	revenue of a district is defined as follows:
568.13 	(1) the amount needed to produce between five and six percent in excess of the 
568.14 	amount needed to meet when due the principal and interest payments on the obligations 
568.15 	of the district for eligible projects according to subdivision 2, including the amounts 
568.16 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292 
568.17 	to 298.298, debt service loans, capital loans, and lease purchase payments under section 
568.18 	126C.40, subdivision 2, excluding long-term facilities maintenance levies under section 
568.19 	123B.595, minus
568.20 	(2) the amount of debt service excess levy reduction for that school year calculated 
568.21 	according to the procedure established by the commissioner.
568.22 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
568.23 	(1) obligations under section 123B.61;
568.24 	(2) the part of debt service principal and interest paid from the taconite environmental 
568.25 	protection fund or Douglas J. Johnson economic protection trust, excluding the portion of 
568.26 	taconite payments from the Iron Range school consolidation and cooperatively operated 
568.27 	school account under section 298.28, subdivision 7a;
568.28 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
568.29 	amended by Laws 1992, chapter 499, article 5, section 24;
568.30 	(4) obligations under section 123B.62; and
568.31 	(5) obligations equalized under section 123B.535.
568.32 	(c) For purposes of this section, if a preexisting school district reorganized under 
568.33 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
568.34 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
568.35 	service equalization aid must be computed separately for each of the preexisting districts.
569.1 	(d) For purposes of this section, the adjusted net tax capacity determined according 
569.2 	to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
569.3 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.

569.4 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
569.5 	later.

569.6 	Sec. 3. Minnesota Statutes 2014, section 123B.53, subdivision 5, is amended to read:
569.7 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a 
569.8 	district equals the sum of the first tier equalized debt service levy and the second tier 
569.9 	equalized debt service levy.
569.10 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
569.11 	service equalization revenue times the lesser of one or the ratio of:
569.12 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
569.13 	the year before the year the levy is certified by the adjusted pupil units in the district for 
569.14 	the school year ending in the year prior to the year the levy is certified; to
569.15 	(2) $3,400 in fiscal year 2016 and, $4,430 in fiscal year 2017, and the greater of 
569.16 	$4,430 or 55.33 percent of the initial equalizing factor in fiscal year 2018 and later.
569.17 	(c) A district's second tier equalized debt service levy equals the district's second tier 
569.18 	debt service equalization revenue times the lesser of one or the ratio of:
569.19 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
569.20 	the year before the year the levy is certified by the adjusted pupil units in the district for 
569.21 	the school year ending in the year prior to the year the levy is certified; to
569.22 	(2) $8,000 in fiscal years 2016 and 2017, and the greater of $8,000 or 100 percent of 
569.23 	the initial equalizing factor in fiscal year 2018 and later.
569.24 	(d) For the purposes of this subdivision, the initial equalizing factor equals the 
569.25 	quotient derived by dividing the total adjusted net tax capacity of all school districts in the 
569.26 	state for the year before the year the levy is certified by the total number of adjusted pupil 
569.27 	units in all school districts in the state in the year before the year the levy is certified.

569.28 	Sec. 4. Minnesota Statutes 2014, section 123B.571, subdivision 2, is amended to read:
569.29 		Subd. 2.Radon testing. A school district may include radon testing as a part of 
569.30 	its health and safety ten-year facility plan under section 123B.595, subdivision 4. If a 
569.31 	school district receives authority to use health and safety long-term facilities maintenance 
569.32 	revenue to conduct radon testing, the district shall conduct the testing according to the 
569.33 	radon testing plan developed by the commissioners of health and education.

570.1 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
570.2 	later.

570.3 	Sec. 5. [123B.572] SOLAR PANEL FIRE SAFETY.
570.4 	A solar photovoltaic system installed at a school must comply with chapter 690 of 
570.5 	the most current edition of NFPA 70, the National Electrical Code, adopted under the 
570.6 	authority given in section 326B.32, subdivision 2.

570.7 	Sec. 6. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 1, is 
570.8 	amended to read:
570.9 		Subdivision 1.Long-term facilities maintenance revenue. (a) For fiscal year 
570.10 	2017 only, long-term facilities maintenance revenue equals the greater of (1) the sum of 
570.11 	(i) $193 times the district's adjusted pupil units times the lesser of one or the ratio of the 
570.12 	district's average building age to 35 years, plus the cost approved by the commissioner 
570.13 	for indoor air quality, fire alarm and suppression, and asbestos abatement projects under 
570.14 	section 123B.57, subdivision 6, with an estimated cost of $100,000 or more per site, 
570.15 	plus (ii) for a school district with an approved voluntary prekindergarten program under 
570.16 	section 124D.151, the cost approved by the commissioner for remodeling existing 
570.17 	instructional space to accommodate prekindergarten instruction,  or (2) the sum of (i) the 
570.18 	amount the district would have qualified for under Minnesota Statutes 2014, section 
570.19 	123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 
570.20 	123B.591., and (ii) for a school district with an approved voluntary prekindergarten 
570.21 	program under section 124D.151, the cost approved by the commissioner for remodeling 
570.22 	existing instructional space to accommodate prekindergarten instruction.
570.23 	(b) For fiscal year 2018 only, long-term facilities maintenance revenue equals the 
570.24 	greater of (1) the sum of (i) $292 times the district's adjusted pupil units times the lesser 
570.25 	of one or the ratio of the district's average building age to 35 years, plus (ii) the cost 
570.26 	approved by the commissioner for indoor air quality, fire alarm and suppression, and 
570.27 	asbestos abatement projects under section 123B.57, subdivision 6, with an estimated cost 
570.28 	of $100,000 or more per site, plus (iii) for a school district with an approved voluntary 
570.29 	prekindergarten program under section 124D.151, the cost approved by the commissioner 
570.30 	for remodeling existing instructional space to accommodate prekindergarten instruction,
570.31 	or (2) the sum of (i) the amount the district would have qualified for under Minnesota 
570.32 	Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota 
570.33 	Statutes 2014, section 123B.591., and (ii) for a school district with an approved voluntary 
571.1 	prekindergarten program under section 124D.151, the cost approved by the commissioner 
571.2 	for remodeling existing instructional space to accommodate prekindergarten instruction.
571.3 	(c) For fiscal year 2019 and later, long-term facilities maintenance revenue equals 
571.4 	the greater of (1) the sum of (i) $380 times the district's adjusted pupil units times the 
571.5 	lesser of one or the ratio of the district's average building age to 35 years, plus (ii) the cost 
571.6 	approved by the commissioner for indoor air quality, fire alarm and suppression, and 
571.7 	asbestos abatement projects under section 123B.57, subdivision 6, with an estimated cost 
571.8 	of $100,000 or more per site, plus (iii) for a school district with an approved voluntary 
571.9 	prekindergarten program under section 124D.151, the cost approved by the commissioner 
571.10 	for remodeling existing instructional space to accommodate prekindergarten instruction,
571.11 	or (2) the sum of (i) the amount the district would have qualified for under Minnesota 
571.12 	Statutes 2014, section 123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota 
571.13 	Statutes 2014, section 123B.591., and (ii) for a school district with an approved voluntary 
571.14 	prekindergarten program under section 124D.151, the cost approved by the commissioner 
571.15 	for remodeling existing instructional space to accommodate prekindergarten instruction.

571.16 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
571.17 	later.

571.18 	Sec. 7. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 4, is 
571.19 	amended to read:
571.20 		Subd. 4.Facilities plans. (a) To qualify for revenue under this section, a school 
571.21 	district or intermediate district, not including a charter school, must have a ten-year facility 
571.22 	plan adopted by the school board and approved by the commissioner. The plan must include 
571.23 	provisions for implementing a health and safety program that complies with health, safety, 
571.24 	and environmental regulations and best practices, including indoor air quality management.
571.25 	(b) The district must annually update the plan, biennially submit a facility 
571.26 	maintenance the plan to the commissioner for approval by July 31, and indicate whether 
571.27 	the district will issue bonds to finance the plan or levy for the costs.
571.28 	(c) For school districts issuing bonds to finance the plan, the plan must include a 
571.29 	debt service schedule demonstrating that the debt service revenue required to pay the 
571.30 	principal and interest on the bonds each year will not exceed the projected long-term 
571.31 	facilities revenue for that year.

571.32 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
571.33 	later.

572.1 	Sec. 8. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 7, is 
572.2 	amended to read:
572.3 		Subd. 7.Long-term facilities maintenance equalization revenue. (a) For fiscal 
572.4 	year 2017 only, a district's long-term facilities maintenance equalization revenue equals 
572.5 	the lesser of (1) $193 times the adjusted pupil units or (2) the district's revenue under 
572.6 	subdivision 1.
572.7 	(b) For fiscal year 2018 only, a district's long-term facilities maintenance 
572.8 	equalization revenue equals the lesser of (1) $292 times the adjusted pupil units or (2) 
572.9 	the district's revenue under subdivision 1.
572.10 	(c) For fiscal year 2019 and later, a district's long-term facilities maintenance 
572.11 	equalization revenue equals the lesser of (1) $380 times the adjusted pupil units or (2) 
572.12 	the district's revenue under subdivision 1.
572.13 	(d) Notwithstanding paragraphs (a) to (c), a district's long-term facilities maintenance 
572.14 	equalization revenue must not be less than the lesser of the district's long-term facilities 
572.15 	maintenance revenue or the amount of aid the district received for fiscal year 2015 under 
572.16 	section 123B.59, subdivision 6.

572.17 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
572.18 	later.

572.19 	Sec. 9. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 8, is 
572.20 	amended to read:
572.21 		Subd. 8.Long-term facilities maintenance equalized levy. (a) For fiscal year 2017 
572.22 	and later, a district's long-term facilities maintenance equalized levy equals the district's 
572.23 	long-term facilities maintenance equalization revenue minus the greater of:
572.24 	(1) the lesser of the district's long-term facilities maintenance equalization revenue 
572.25 	or the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 
572.26 	2014, section 123B.59, subdivision 6; or
572.27 	(2) the district's long-term facilities maintenance equalization revenue times the 
572.28 	greater of (i) zero or (ii) one minus the ratio of its adjusted net tax capacity per adjusted 
572.29 	pupil unit in the year preceding the year the levy is certified to 123 percent of the state 
572.30 	average adjusted net tax capacity per adjusted pupil unit for all school districts in the 
572.31 	year preceding the year the levy is certified.
572.32 	(b) For purposes of this subdivision, "adjusted net tax capacity" means the value 
572.33 	described in section 126C.01, subdivision 2, paragraph (b).

573.1 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
573.2 	later.

573.3 	Sec. 10. Minnesota Statutes 2015 Supplement, section 123B.595, is amended by 
573.4 	adding a subdivision to read:
573.5 		Subd. 8a.Long-term facilities maintenance unequalized levy. For fiscal year 
573.6 	2017 and later, a district's long-term facilities maintenance unequalized levy equals the 
573.7 	difference between the district's revenue under subdivision 1 and the district's equalization 
573.8 	revenue under subdivision 7.

573.9 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
573.10 	later.

573.11 	Sec. 11. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 9, 
573.12 	is amended to read:
573.13 		Subd. 9.Long-term facilities maintenance equalized aid. For fiscal year 2017 
573.14 	and later, a district's long-term facilities maintenance equalized aid equals its long-term 
573.15 	facilities maintenance equalization revenue minus its long-term facilities maintenance 
573.16 	equalized levy times the ratio of the actual equalized amount levied to the permitted 
573.17 	equalized levy.

573.18 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
573.19 	later.

573.20 	Sec. 12. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 10, 
573.21 	is amended to read:
573.22 		Subd. 10.Allowed uses for long-term facilities maintenance revenue. (a) A 
573.23 	district may use revenue under this section for any of the following:
573.24 	(1) deferred capital expenditures and maintenance projects necessary to prevent 
573.25 	further erosion of facilities;
573.26 	(2) increasing accessibility of school facilities; or
573.27 	(3) health and safety capital projects under section 123B.57.; or
573.28 	(4) by board resolution, to transfer money from the general fund reserve for long-term 
573.29 	facilities maintenance to the debt redemption fund to pay the amounts needed to meet, 
573.30 	when due, principal and interest on general obligation bonds issued under subdivision 5.
573.31 	(b) A charter school may use revenue under this section for any purpose related 
573.32 	to the school.

574.1 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
574.2 	later.

574.3 	Sec. 13. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 11, 
574.4 	is amended to read:
574.5 		Subd. 11.Restrictions on long-term facilities maintenance revenue.
 574.6 	Notwithstanding subdivision 11 10, long-term facilities maintenance revenue may not 
574.7 	be used:
574.8 	(1) for the construction of new facilities, remodeling of existing facilities, or the 
574.9 	purchase of portable classrooms;
574.10 	(2) to finance a lease purchase agreement, installment purchase agreement, or other 
574.11 	deferred payments agreement;
574.12 	(3) for energy-efficiency projects under section 123B.65, for a building or property 
574.13 	or part of a building or property used for postsecondary instruction or administration, or 
574.14 	for a purpose unrelated to elementary and secondary education; or
574.15 	(4) for violence prevention and facility security, ergonomics, or emergency 
574.16 	communication devices.

574.17 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
574.18 	later.

574.19 	Sec. 14. Minnesota Statutes 2014, section 123B.60, subdivision 1, is amended to read:
574.20 		Subdivision 1.Bonds. When a building owned by a district is substantially damaged 
574.21 	by an act of God or other means beyond the control of the district, the district may issue 
574.22 	general obligation bonds without an election to provide money immediately to carry 
574.23 	out its adopted health and safety long-term facilities maintenance program. Each year 
574.24 	the district must pledge an attributable share of its health and safety long-term facilities 
574.25 	maintenance revenue to the repayment of principal and interest on the bonds. The pledged 
574.26 	revenue must be transferred to recognized in the debt redemption fund of the district. The 
574.27 	district must submit to the department the repayment schedule for any bonds issued under 
574.28 	this section. The district must deposit in the debt redemption fund all proceeds received 
574.29 	for specific costs for which the bonds were issued, including but not limited to:
574.30 	(1) insurance proceeds;
574.31 	(2) restitution proceeds; and
574.32 	(3) proceeds of litigation or settlement of a lawsuit.
574.33 	Before bonds are issued, the district must submit a combined an amended 
574.34 	application to the commissioner for health and safety long-term facilities maintenance 
575.1 	revenue, according to section 123B.57, and requesting review and comment, according 
575.2 	to section 123B.71, subdivisions 8, 9, 11, and 12 123B.595. The commissioner shall 
575.3 	complete all procedures concerning the combined application within 20 days of receiving 
575.4 	the application. The publication provisions of section 123B.71, subdivision 12, do not 
575.5 	apply to bonds issued under this section.

575.6 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
575.7 	later.

575.8 	Sec. 15. Minnesota Statutes 2014, section 123B.71, subdivision 8, is amended to read:
575.9 		Subd. 8.Review and comment. A school district, a special education cooperative, 
575.10 	or a cooperative unit of government, as defined in section 123A.24, subdivision 2, 
575.11 	must not initiate an installment contract for purchase or a lease agreement, hold a 
575.12 	referendum for bonds, nor solicit bids for new construction, expansion, or remodeling of 
575.13 	an educational facility that requires an expenditure in excess of $500,000 per school site if 
575.14 	it has a capital loan outstanding, or $2,000,000 per school site if it does not have a capital 
575.15 	loan outstanding, prior to review and comment by the commissioner. A facility addition, 
575.16 	maintenance project, or remodeling project funded only with general education revenue, 
575.17 	deferred maintenance revenue, alternative facilities bonding and levy program revenue, 
575.18 	lease levy proceeds, capital facilities bond proceeds, or health and safety long-term 
575.19 	facilities maintenance revenue is exempt from this provision. A capital project under 
575.20 	section 123B.63 addressing only technology is exempt from this provision if the district 
575.21 	submits a school board resolution stating that funds approved by the voters will be used 
575.22 	only as authorized in section 126C.10, subdivision 14. A school board shall not separate 
575.23 	portions of a single project into components to avoid the requirements of this subdivision.

575.24 	EFFECTIVE DATE. This section is effective the day following final enactment 
575.25 	and applies to review and comments for projects funded with revenue for fiscal year 
575.26 	2017 and later.

575.27 	Sec. 16. Minnesota Statutes 2014, section 123B.79, subdivision 5, is amended to read:
575.28 		Subd. 5.Deficits; exception. For the purposes of this section, a permanent transfer 
575.29 	includes creating a deficit in a nonoperating fund for a period past the end of the current 
575.30 	fiscal year which is covered by moneys in an operating fund. However, A deficit in the 
575.31 	capital expenditure fund reserve for operating capital account pursuant to section 123B.78, 
575.32 	subdivision 5, does not constitute a permanent transfer.

576.1 	Sec. 17. Minnesota Statutes 2014, section 123B.79, subdivision 8, is amended to read:
576.2 		Subd. 8.Account transfer for reorganizing districts. A district that has 
576.3 	reorganized according to sections 123A.35 to 123A.43, 123A.46, or 123A.48, or has 
576.4 	conducted a successful referendum on the question of combination under section 
576.5 	123A.37, subdivision 2, or consolidation under section 123A.48, subdivision 15, or has 
576.6 	been assigned an identification number by the commissioner under section 123A.48, 
576.7 	subdivision 16, may make permanent transfers between any of the funds or accounts in 
576.8 	the newly created or enlarged district with the exception of the debt redemption fund, 
576.9 	building construction fund, food service fund, and health and safety long-term facilities 
576.10 	maintenance account of the capital expenditure general fund. Fund transfers under this 
576.11 	section may be made for up to one year prior to the effective date of combination or 
576.12 	consolidation by the consolidating boards and during the year following the effective date 
576.13 	of reorganization by the consolidated board. The newly formed board of the combined 
576.14 	district may adopt a resolution on or before August 30 of the year of the reorganization 
576.15 	authorizing a transfer among accounts or funds of the previous independent school 
576.16 	districts which transfer or transfers shall be reported in the affected districts' audited 
576.17 	financial statements for the year immediately preceding the consolidation.

576.18 	Sec. 18. Minnesota Statutes 2014, section 123B.79, subdivision 9, is amended to read:
576.19 		Subd. 9.Elimination of reserve accounts. A school board shall eliminate all 
576.20 	reserve accounts established in the school district's general fund under Minnesota Statutes 
576.21 	before July 1, 2006, for which no specific authority remains in statute as of June 30, 2007. 
576.22 	Any balance in the district's reserved for bus purchases account for deferred maintenance 
576.23 	as of June 30, 2007 2016, shall be transferred to the reserved account for operating capital 
576.24 	long-term facilities maintenance in the school district's general fund. Any balance in 
576.25 	other reserved accounts established in the school district's general fund under Minnesota 
576.26 	Statutes before July 1, 2006, for which no specific authority remains in statute as of June 
576.27 	30, 2007, shall be transferred to the school district's unreserved general fund balance. 
576.28 	A school board may, upon adoption of a resolution by the school board, establish a 
576.29 	designated account for any program for which a reserved account has been eliminated. 
576.30 	Any balance in the district's reserved account for health and safety as of June 30, 2019, 
576.31 	shall be transferred to the unassigned fund balance account in the district's general fund. 
576.32 	Any balance in the district's reserved account for alternative facilities as of June 30, 2016, 
576.33 	shall be transferred to the reserved account for long-term facilities maintenance in the 
576.34 	district's building construction fund.

577.1 	EFFECTIVE DATE. This section is effective July 1, 2016, for fiscal year 2017 
577.2 	and later.

577.3 	Sec. 19. Minnesota Statutes 2014, section 126C.40, subdivision 5, is amended to read:
577.4 		Subd. 5.Energy conservation. For loans approved before March 1, 1998, the 
577.5 	district may annually include as revenue under section 123B.53, without the approval of a 
577.6 	majority of the voters in the district, an amount sufficient to repay the annual principal and 
577.7 	interest of the loan made pursuant to sections 216C.37 and 298.292 to 298.298. For energy 
577.8 	loans approved after March 1, 1998, under sections 216C.37 and 298.292 to 298.298, 
577.9 	school districts must annually transfer from the general fund to the debt redemption fund 
577.10 	the amount sufficient to pay interest and principal on the loans.

577.11 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
577.12 	later.

577.13 	Sec. 20. Minnesota Statutes 2015 Supplement, section 126C.48, subdivision 8, is 
577.14 	amended to read:
577.15 		Subd. 8.Taconite payment and other reductions. (1) Reductions in levies 
577.16 	pursuant to subdivision 1 must be made prior to the reductions in clause (2).
577.17 	(2) Notwithstanding any other law to the contrary, districts that have revenue 
577.18 	pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed 
577.19 	under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 to 
577.20 	298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon severed 
577.21 	mineral values must reduce the levies authorized by this chapter and chapters 120B, 122A, 
577.22 	123A, 123B, 124A, 124D, 125A, and 127A, excluding the student achievement levy 
577.23 	under section 126C.13, subdivision 3b, by 95 percent of the sum of the previous year's 
577.24 	revenue specified under this clause and the amount attributable to the same production 
577.25 	year distributed to the cities and townships within the school district under section 298.28, 
577.26 	subdivision 2, paragraph (c).
577.27 	(3) The amount of any voter approved referendum, facilities down payment, and 
577.28 	debt levies shall not be reduced by more than 50 percent under this subdivision, except 
577.29 	that payments under section 298.28, subdivision 7a, may reduce the debt service levy by 
577.30 	more than 50 percent. In administering this paragraph, the commissioner shall first reduce 
577.31 	the nonvoter approved levies of a district; then, if any payments, severed mineral value 
577.32 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
577.33 	reduce any voter approved referendum levies authorized under section 126C.17; then, if 
577.34 	any payments, severed mineral value tax revenue or recognized revenue under paragraph 
578.1 	(2) remains, the commissioner shall reduce any voter approved facilities down payment 
578.2 	levies authorized under section 123B.63 and then, if any payments, severed mineral value 
578.3 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
578.4 	reduce any voter approved debt levies.
578.5 	(4) Before computing the reduction pursuant to this subdivision of the health and 
578.6 	safety long-term facilities maintenance levy authorized by sections 123B.57 and 126C.40, 
578.7 	subdivision 5 section 123B.595, the commissioner shall ascertain from each affected 
578.8 	school district the amount it proposes to levy under each section or subdivision. The 
578.9 	reduction shall be computed on the basis of the amount so ascertained.
578.10 	(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 
578.11 	limitation in paragraph (3), an amount equal to the excess must be distributed from the 
578.12 	school district's distribution under sections 298.225, 298.28, and 477A.15 in the following 
578.13 	year to the cities and townships within the school district in the proportion that their 
578.14 	taxable net tax capacity within the school district bears to the taxable net tax capacity of 
578.15 	the school district for property taxes payable in the year prior to distribution. No city or 
578.16 	township shall receive a distribution greater than its levy for taxes payable in the year prior 
578.17 	to distribution. The commissioner of revenue shall certify the distributions of cities and 
578.18 	towns under this paragraph to the county auditor by September 30 of the year preceding 
578.19 	distribution. The county auditor shall reduce the proposed and final levies of cities and 
578.20 	towns receiving distributions by the amount of their distribution. Distributions to the cities 
578.21 	and towns shall be made at the times provided under section 298.27.

578.22 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
578.23 	later.

578.24 	Sec. 21. Minnesota Statutes 2014, section 126C.63, subdivision 7, is amended to read:
578.25 		Subd. 7.Required debt service levy. "Required debt service levy" means the total 
578.26 	dollar amount needed to be included in the taxes levied by the district in any year for 
578.27 	payment of interest and principal falling due on its debts prior to collection of the next 
578.28 	ensuing year's debt service levy excluding levies for bonds issued after the later of (1) 
578.29 	November 30, 2016, or (2) three years after the date of the district's receipt of a capital 
578.30 	loan from the state, and excluding the debt service levy for obligations under sections 
578.31 	123B.595, 123B.61, and 123B.62.

578.32 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
578.33 	later.

579.1 	Sec. 22. Laws 2011, First Special Session chapter 11, article 4, section 8, is amended to 
579.2 	read:
579.3 	Sec. 8. EARLY REPAYMENT.
 579.4 	(a) A school district that received a maximum effort capital loan prior to January 
579.5 	1, 1997, may repay the full outstanding original principal on its capital loan prior to 
579.6 	July 1, 2012, and the liability of the district on the loan is satisfied and discharged and 
579.7 	interest on the loan ceases.
579.8 	(b) A school district with an outstanding capital loan balance that received a 
579.9 	maximum effort capital loan prior to January 1, 2007, may repay to the commissioner of 
579.10 	education by November 30, 2016, the full outstanding original principal on its capital 
579.11 	loan and the liability of the district on the loan is satisfied and discharged and interest 
579.12 	on the loan ceases.

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

579.14 	Sec. 23. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
579.15 	2, is amended to read:
579.16 		Subd. 2.Long-term maintenance equalization aid. For long-term maintenance 
579.17 	equalization aid under Minnesota Statutes, section 123B.595:

579.18		$
	0
	.....
	2016
	
579.19
579.20		$ 
	52,088,000
52,844,000
	.....
	2017
	
579.21 	The 2017 appropriation includes $0 for 2016 and $52,088,000 $52,844,000 for 2017.

579.22 	Sec. 24. INTERNET BROADBAND EXPANSION FOR STUDENTS; 
579.23 	INNOVATIVE GRANTS.
 579.24 		Subdivision 1.Broadband Wi-Fi hot spots. (a) A school district is eligible for a 
579.25 	broadband hot spot grant not to exceed $50,000 to support wireless off-campus learning 
579.26 	through a student's use of a data card, USB modem, or other mobile broadband device 
579.27 	that enables the student to access learning materials available on the Internet through a 
579.28 	mobile broadband connection. A district's application for a grant under this subdivision 
579.29 	must describe its approach for identifying and prioritizing access for low-income students 
579.30 	and others otherwise unable to access the Internet and may include a description of local 
579.31 	or private matching grants or in-kind contributions.
579.32 	(b) When evaluating applications, the commissioner may give priority to grant 
579.33 	applications that include local in-kind contributions. To the extent practicable, the 
580.1 	commissioner must distribute the grants to districts located throughout the state including 
580.2 	in urban areas, suburban areas, and in greater Minnesota.
580.3 	(c) A school district may develop its application in cooperation with its community 
580.4 	education department, its adult basic education program provider, a public library, or 
580.5 	other community partner.
580.6 	(d) A school district that qualifies for general education transportation sparsity 
580.7 	revenue under Minnesota Statutes, section 126C.10, may apply to the commissioner of 
580.8 	education for a school bus Internet access grant as a part of its grant application under 
580.9 	paragraph (a). The commissioner of education must prioritize grants to districts with the 
580.10 	longest bus routes. A school district that receives a grant under this subdivision may use 
580.11 	the grant to purchase or lease equipment designed to make Internet access available on 
580.12 	school buses, including routers and mobile Wi-Fi hot spots to connect to the Internet, and 
580.13 	may also purchase or lease one-to-one devices for students. The one-to-one devices may 
580.14 	be connected to the Internet through the Wi-Fi hot spot or otherwise contain content 
580.15 	for age-appropriate, self-directed learning.
580.16 		Subd. 2.Internet access for students. Consistent with Minnesota Statutes, section 
580.17 	125B.15, all grant applications submitted under this section must demonstrate to the 
580.18 	commissioner's satisfaction that the Internet access provided through the grant proceeds 
580.19 	will include filtering technology or other effective methods to limit student access to 
580.20 	material that is reasonably believed to be obscene, child pornography, or material harmful 
580.21 	to minors under federal or state law.

580.22 	Sec. 25. APPROPRIATIONS.
 580.23 		Subdivision 1.Department of Education. The sums indicated in this section are 
580.24 	appropriated from the general fund to the commissioner of education for the fiscal years 
580.25 	designated.
580.26 		Subd. 2.Broadband expansion grants. For broadband expansion grants:

580.27		$
	500,000
	.....
	2017
	
580.28 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
580.29 		Subd. 5.Early repayment aid incentive. (a) For incentive grants for a district that 
580.30 	repays the full outstanding original principal on its capital loan by November 30, 2016, 
580.31 	under Laws 2011, First Special Session chapter 11, article 4, section 8, as amended by 
580.32 	this act:

580.33		$
	2,200,000
	.....
	2017
	
581.1 	(b) Of this amount, $180,000 is for a grant to Independent School District No. 95, 
581.2 	Cromwell; $495,000 is for a grant to Independent School District No. 299, Caledonia; 
581.3 	$220,000 is for a grant to Independent School District No. 306, Laporte; $150,000 is for 
581.4 	a grant to Independent School District No. 362, Littlefork; $650,000 is for a grant to 
581.5 	Independent School District No. 682, Roseau; and $505,000 is for a grant to Independent 
581.6 	School District No. 2580, East Central.
581.7 	(c) The grant may be used for any school-related purpose.
581.8 	(d) The base appropriation for 2022 is zero.

581.9 	Sec. 26.  REPEALER.
 581.10 	Minnesota Statutes 2014, sections 123B.60, subdivision 2; and 123B.79, 
581.11 	subdivisions 2 and 6, are repealed for fiscal year 2017 and later.

581.12 	ARTICLE 31
581.13 	EARLY CHILDHOOD EDUCATION

581.14 	Section 1. Minnesota Statutes 2014, section 124D.135, subdivision 6, is amended to 
581.15 	read:
581.16 		Subd. 6.Home visiting levy revenue. (a) A district that is eligible to levy for 
581.17 	early childhood family education under subdivision 3 and that enters into a collaborative 
581.18 	agreement to provide education services and social services to families with young 
581.19 	children may levy an amount equal to $1.60 is eligible for home visiting revenue.
581.20 	(b) Total home visiting revenue for a district equals $3 times the number of people 
581.21 	under five years of age residing in the district on September 1 of the last school year. Levy 
581.22 	Revenue under this subdivision must not be included as revenue under subdivision 1. The 
581.23 	revenue must be used for home visiting programs under section 124D.13, subdivision 4.

581.24 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2018 and 
581.25 	later.

581.26 	Sec. 2. Minnesota Statutes 2014, section 124D.135, is amended by adding a 
581.27 	subdivision to read:
581.28 		Subd. 6a.Home visiting levy. To obtain home visiting revenue, a district may levy 
581.29 	an amount not more than the product of its home visiting revenue for the fiscal year times 
581.30 	the lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil unit to the 
581.31 	home visiting equalizing factor. The home visiting equalizing factor equals $17,250 for 
581.32 	fiscal year 2018 and later.

582.1 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2018 and 
582.2 	later.

582.3 	Sec. 3. Minnesota Statutes 2014, section 124D.135, is amended by adding a 
582.4 	subdivision to read:
582.5 		Subd. 6b.Home visiting aid. A district's home visiting aid equals its home visiting 
582.6 	revenue minus its home visiting levy times the ratio of the actual amount levied to the 
582.7 	permitted levy.

582.8 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2018 and 
582.9 	later.

582.10 	Sec. 4. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 7, 
582.11 	is amended to read:
582.12 		Subd. 7.Parent-child home program. For a grant to the parent-child home 
582.13 	program:

582.14		$
	350,000
	.....
	2016
	
582.15
582.16		$
	350,000
2,350,000
	.....
	2017
	
582.17 	The grant must be used for an evidence-based and research-validated early childhood 
582.18 	literacy and school readiness program for children ages 16 months to four years at its 
582.19 	existing suburban program location. The program must include urban and rural program 
582.20 	locations for fiscal years 2016 and 2017. 
582.21 	The base appropriation for this program for fiscal year 2018 and later is $350,000. 
582.22 	The 2017 appropriation is available until June 30, 2019.
582.23 	To the extent practicable, the parent-child home program is encouraged to expend 
582.24 	the fiscal year 2017 appropriation equally over fiscal years 2017, 2018, and 2019.

582.25 	Sec. 5. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 9, 
582.26 	is amended to read:
582.27 		Subd. 9.Quality Rating System. For transfer to the commissioner of human 
582.28 	services for the purposes of expanding the Quality Rating and Improvement System under 
582.29 	Minnesota Statutes, section 124D.142, in greater Minnesota and increasing supports for 
582.30 	providers participating in the Quality Rating and Improvement System:

582.31		$
	1,200,000
	.....
	2016
	
582.32
582.33		$
	2,300,000
4,300,000
	.....
	2017
	
583.1 	To the extent possible, the commissioner must direct at least $2,000,000 of the 2017 
583.2 	appropriation toward increasing access and providing training assistance to providers who 
583.3 	are located in underserved or low-income neighborhoods.
583.4 	Any balance in the first year does not cancel but is available in the second year. The 
583.5 	base for this program in fiscal year 2018 and later is $1,750,000.

583.6 	EFFECTIVE DATE.  This section is effective July 1, 2016.

583.7 	Sec. 6. APPROPRIATION.
 583.8 		Subdivision 1.Department of Education. The sums indicated in this section are 
583.9 	appropriated from the general fund to the commissioner of education for the fiscal year 
583.10 	designated.
583.11 		Subd. 2.St. Cloud preschool pilot program. For a grant to Independent School 
583.12 	District No. 742, St. Cloud, to establish a preschool pilot program targeting low-income 
583.13 	students and English learners.

583.14		$
	430,000
	.....
	2017
	
583.15 	Funds appropriated in this section are to be used to create morning and afternoon 
583.16 	preschool sections, serving at least 90 students from families with low income or 
583.17 	from families where English is not the primary language spoken in the child's home 
583.18 	environment. The funds appropriated under this section may be used to purchase 
583.19 	developmentally appropriate furniture and materials, instructional materials, and 
583.20 	curriculum materials; hire and train teachers and staff; and offset transportation costs.
583.21 	Independent School District No. 742, St. Cloud, must submit an annual report by 
583.22 	January 15 of 2017, 2018, and 2019, describing the activities undertaken and outcomes 
583.23 	achieved with this grant. The 2019 report must contain recommendations for other 
583.24 	districts interested in similar prekindergarten programs.
583.25 	This is a onetime appropriation. The fiscal year 2017 appropriation is available 
583.26 	until June 30, 2019.

583.27 	ARTICLE 32
583.28 	SELF-SUFFICIENCY AND LIFELONG LEARNING

583.29 	Section 1. Minnesota Statutes 2014, section 124D.52, subdivision 1, is amended to read:
583.30 		Subdivision 1.Program requirements. (a) An adult basic education program is 
583.31 	a day or evening program offered by a district that is for people over 16 years of age
583.32 	who do not attend an elementary or secondary school and are not subject to compulsory 
584.1 	attendance. The program offers academic and English language instruction necessary to 
584.2 	earn a high school diploma or equivalency certificate.
584.3 	(b) Notwithstanding any law to the contrary, a school board or the governing body of 
584.4 	a consortium offering an adult basic education program may adopt a sliding fee schedule 
584.5 	based on a family's income, but must waive the fee for participants who are under the age 
584.6 	of 21 or unable to pay. The fees charged must be designed to enable individuals of all 
584.7 	socioeconomic levels to participate in the program. A program may charge a security 
584.8 	deposit to assure return of materials, supplies, and equipment.
584.9 	(c) Each approved adult basic education program must develop a memorandum of 
584.10 	understanding with the local workforce development centers located in the approved 
584.11 	program's service delivery area. The memorandum of understanding must describe how 
584.12 	the adult basic education program and the workforce development centers will cooperate 
584.13 	and coordinate services to provide unduplicated, efficient, and effective services to clients.
584.14 	(d) Adult basic education aid must be spent for adult basic education purposes as 
584.15 	specified in sections 124D.518 to 124D.531.
584.16 	(e) A state-approved adult basic education program must count and submit student 
584.17 	contact hours for a program that offers high school credit toward an adult high school 
584.18 	diploma according to student eligibility requirements and measures of student progress 
584.19 	toward work-based competency and, where appropriate, English language proficiency 
584.20 	requirements established by the commissioner and posted on the department Web site in 
584.21 	a readily accessible location and format.

584.22 	Sec. 2. Minnesota Statutes 2014, section 124D.52, subdivision 2, is amended to read:
584.23 		Subd. 2.Program approval. (a) To receive aid under this section, a district, a 
584.24 	consortium of districts, the Department of Corrections, or a private nonprofit organization, 
584.25 	or a consortium including districts, nonprofit organizations, or both must submit an 
584.26 	application by June 1 describing the program, on a form provided by the department. The 
584.27 	program must be approved by the commissioner according to the following criteria:
584.28 	(1) how the needs of different levels of learning and English language proficiency 
584.29 	will be met;
584.30 	(2) for continuing programs, an evaluation of results;
584.31 	(3) anticipated number and education level of participants;
584.32 	(4) coordination with other resources and services;
584.33 	(5) participation in a consortium, if any, and money available from other participants;
584.34 	(6) management and program design;
584.35 	(7) volunteer training and use of volunteers;
585.1 	(8) staff development services;
585.2 	(9) program sites and schedules;
585.3 	(10) program expenditures that qualify for aid;
585.4 	(11) program ability to provide data related to learner outcomes as required by 
585.5 	law; and
585.6 	(12) a copy of the memorandum of understanding described in subdivision 1 
585.7 	submitted to the commissioner.
585.8 	(b) Adult basic education programs may be approved under this subdivision for 
585.9 	up to five years. Five-year program approval must be granted to an applicant who has 
585.10 	demonstrated the capacity to:
585.11 	(1) offer comprehensive learning opportunities and support service choices 
585.12 	appropriate for and accessible to adults at all basic skill and English language levels of need;
585.13 	(2) provide a participatory and experiential learning approach based on the strengths, 
585.14 	interests, and needs of each adult, that enables adults with basic skill needs to:
585.15 	(i) identify, plan for, and evaluate their own progress toward achieving their defined 
585.16 	educational and occupational goals;
585.17 	(ii) master the basic academic reading, writing, and computational skills, as well 
585.18 	as the problem-solving, decision making, interpersonal effectiveness, and other life and 
585.19 	learning skills they need to function effectively in a changing society;
585.20 	(iii) locate and be able to use the health, governmental, and social services and 
585.21 	resources they need to improve their own and their families' lives; and
585.22 	(iv) continue their education, if they desire, to at least the level of secondary school 
585.23 	completion, with the ability to secure and benefit from continuing education that will 
585.24 	enable them to become more employable, productive, and responsible citizens;
585.25 	(3) plan, coordinate, and develop cooperative agreements with community resources 
585.26 	to address the needs that the adults have for support services, such as transportation, English 
585.27 	language learning, flexible course scheduling, convenient class locations, and child care;
585.28 	(4) collaborate with business, industry, labor unions, and employment-training 
585.29 	agencies, as well as with family and occupational education providers, to arrange for 
585.30 	resources and services through which adults can attain economic self-sufficiency;
585.31 	(5) provide sensitive and well trained adult education personnel who participate in 
585.32 	local, regional, and statewide adult basic education staff development events to master 
585.33 	effective adult learning and teaching techniques;
585.34 	(6) participate in regional adult basic education peer program reviews and evaluations;
585.35 	(7) submit accurate and timely performance and fiscal reports;
586.1 	(8) submit accurate and timely reports related to program outcomes and learner 
586.2 	follow-up information; and
586.3 	(9) spend adult basic education aid on adult basic education purposes only, which 
586.4 	are specified in sections 124D.518 to 124D.531.
586.5 	(c) The commissioner shall require each district to provide notification by February 
586.6 	1, 2001, of its intent to apply for funds under this section as a single district or as part of 
586.7 	an identifieda consortium of districts. A district receiving funds under this section must 
586.8 	notify the commissioner by February 1 of its intent to change its application status for 
586.9 	applications due the following June 1.

586.10 	Sec. 3. Minnesota Statutes 2014, section 124D.55, is amended to read:
586.11 	124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
586.12 	The commissioner shall pay 60 percent of the fee that is charged to an eligible 
586.13 	individual for the full battery of a general education development (GED) test tests, but not 
586.14 	more than $40 for an eligible individual.
586.15 	For fiscal year 2017 only, the commissioner shall pay 100 percent of the fee charged 
586.16 	to an eligible individual for the full battery of general education development (GED) tests, 
586.17 	but not more than the cost of one full battery of tests per year for any individual.

586.18 	Sec. 4. Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision 3, 
586.19 	is amended to read:
586.20 		Subd. 3.GED tests. For payment of 60 percent of the costs of GED tests test costs
586.21 	under Minnesota Statutes, section 124D.55:

586.22		$
	125,000
	.....
	2016
	
586.23
586.24		$
	125,000
245,000
	.....
	2017
	
586.25 	The base appropriation for fiscal year 2018 and later is $125,000.

586.26 	Sec. 5. APPROPRIATIONS.
 586.27 		Subdivision 1.Department of Education. The sums indicated in this section are 
586.28 	appropriated from the general fund to the commissioner of education for the fiscal years 
586.29 	designated.
586.30 		Subd. 2.Adult basic education. For a grant for additional adult basic aid:

586.31		$
	400,000
	.....
	2017
	
587.1 	The International Education Center, the American Indian Opportunities 
587.2 	Industrialization Center, and the Minnesota Office of Communication Service for the Deaf 
587.3 	are eligible for additional adult basic education aid for innovative programs for fiscal year 
587.4 	2017 only. The onetime aid for each organization equals $400,000 times the ratio of the 
587.5 	organization's number of students served for the previous fiscal year to the sum of the 
587.6 	three organizations' number of students served for the previous fiscal year.
587.7 	This is a onetime appropriation.
587.8 		Subd. 3.Adult basic education grants. (a) For adult basic education grants:

587.9		$
	400,000
	.....
	2017
	
587.10 	(b) Of this amount, $150,000 is for grants to the International Institute of Minnesota 
587.11 	to establish a college readiness academy. A college readiness academy is a partnership 
587.12 	between ABE programs, with support from Minnesota State Colleges and Universities, to 
587.13 	prepare ABE students to successfully enter college and complete credit-bearing courses 
587.14 	needed for career-related credentials. The academy must include academic skill building 
587.15 	for college success, integrated sector-specific academic training when applicable, and 
587.16 	intensive navigation and educational support for the program participants.
587.17 	(c) Of this amount, $150,000 is for a grant to Summit Academy OIC to establish a 
587.18 	contextualized GED or adult diploma program to prepare adults for successful GED 
587.19 	or adult diploma completion and successful entry into credentialing programs leading 
587.20 	to careers. The program must:
587.21 	(1) provide program navigation and academic supports;
587.22 	(2) be connected to an ABE consortium and partner with the Department of 
587.23 	Employment and Economic Development; and
587.24 	(3) provide instruction in one of the state's six demand sectors identified by the 
587.25 	Department of Employment and Economic Development, serving participants in the 
587.26 	top three ABE levels of ABE intermediate high, adult secondary education (ASE) low, 
587.27 	or ASE high.
587.28 	(d) Of this amount, $100,000 is for grants to ABE programs to provide ABE 
587.29 	navigating and advising support services.  The programs must help ABE students:
587.30 	(1) explore careers;
587.31 	(2) develop personalized learning;
587.32 	(3) plan for a postsecondary education and career;
587.33 	(4) attain personal learning goals;
587.34 	(5) complete a standard adult high school diploma under Minnesota Statutes, section 
587.35 	124D.52, subdivisions 8 and 9, or complete a GED;
588.1 	(6) develop time management and study skills;
588.2 	(7) develop critical academic and career-related skills needed to enroll in a 
588.3 	postsecondary program without need for remediation;
588.4 	(8) navigate the registration process for a postsecondary program;
588.5 	(9) understand postsecondary program requirements and instruction expectations; and
588.6 	(10) resolve personal issues related to mental health, domestic abuse, chemical 
588.7 	abuse, homelessness, and other issues that, if left unaddressed, are barriers to enrolling in 
588.8 	and completing a postsecondary program.
588.9 	(e) The commissioner must award ABE navigating and advising support services 
588.10 	grants to up to eight ABE programs. The commissioner shall award grants to programs 
588.11 	based on program capacity, need, and geographic balance of programs around the state. 
588.12 	The commissioner shall give priority to ABE programs already providing navigating and 
588.13 	advising support services. The commissioner shall allocate the grant funding based on the 
588.14 	number of ABE program participants the program served in the prior year.
588.15 	(f) This is a onetime appropriation and is available until June 30, 2019.

588.16 	ARTICLE 33
588.17 	STATE AGENCIES

588.18 	Section 1. Minnesota Statutes 2014, section 122A.21, as amended by Laws 2015, First 
588.19 	Special Session chapter 3, article 2, section 17, is amended to read:
588.20 	122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.
588.21 		Subdivision 1.Licensure applications. Each application for the issuance, renewal, 
588.22 	or extension of a license to teach, including applications for licensure via portfolio under 
588.23 	subdivision 2, must be accompanied by a processing fee of $57. Each application for 
588.24 	issuing, renewing, or extending the license of a school administrator or supervisor must 
588.25 	be accompanied by a processing fee in the amount set by the Board of Teaching. The 
588.26 	processing fee for a teacher's license and for the licenses of supervisory personnel must be 
588.27 	paid to the executive secretary of the appropriate board. The executive secretary of the 
588.28 	board shall deposit the fees with the commissioner of management and budget. The fees 
588.29 	as set by the board are nonrefundable for applicants not qualifying for a license. However, 
588.30 	a fee must be refunded by the commissioner of management and budget in any case in 
588.31 	which the applicant already holds a valid unexpired license. The board may waive or 
588.32 	reduce fees for applicants who apply at the same time for more than one license.
589.1 		Subd. 2.Licensure via portfolio. (a) An eligible candidate may use licensure via 
589.2 	portfolio to obtain an initial licensure a professional five-year teaching license or to add a 
589.3 	licensure field, consistent with applicable Board of Teaching licensure rules.
589.4 	(b) A candidate for initial licensure a professional five-year teaching license must 
589.5 	submit to the Educator Licensing Division at the department one portfolio demonstrating 
589.6 	pedagogical competence and one portfolio demonstrating content competence.
589.7 	(c) A candidate seeking to add a licensure field must submit to the Educator 
589.8 	Licensing Division at the department one portfolio demonstrating content competence.
589.9 	(d) The Board of Teaching must notify a candidate who submits a portfolio under 
589.10 	paragraph (b) or (c) within 90 calendar days after the portfolio is received whether or not 
589.11 	the portfolio was approved. If the portfolio was not approved, the board must immediately 
589.12 	inform the candidate how to revise the portfolio to successfully demonstrate the requisite 
589.13 	competence. The candidate may resubmit a revised portfolio at any time and the Educator 
589.14 	Licensing Division at the department must approve or disapprove the portfolio within 
589.15 	60 calendar days of receiving it.
589.16 	(e) A candidate must pay to the executive secretary of the Board of Teaching a 
589.17 	$300 fee for the first portfolio submitted for review and a $200 fee for any portfolio 
589.18 	submitted subsequently. The fees must be paid to the executive secretary of the Board of 
589.19 	Teaching. The revenue generated from the fee must be deposited in an education licensure 
589.20 	portfolio account in the special revenue fund. The fees set by the Board of Teaching are 
589.21 	nonrefundable for applicants not qualifying for a license. The Board of Teaching may 
589.22 	waive or reduce fees for candidates based on financial need.

589.23 	Sec. 2. Laws 2015, First Special Session chapter 3, article 12, section 4, subdivision 2, 
589.24 	is amended to read:
589.25 		Subd. 2.Department. (a) For the Department of Education:

589.26
589.27		$  
	21,246,000
21,276,000
	.....
	2016
	
589.28
589.29		$  
	21,973,000
26,384,000
	.....
	2017
	
589.30 	Of these amounts: 
589.31 	(1) $718,000 each year$748,000 in fiscal year 2016 and zero in fiscal year 2017 is 
589.32 	for the Board of Teaching. Any balance in the first year does not cancel, but is available 
589.33 	in the second year;
589.34 	(2) $228,000 in fiscal year 2016 and $231,000 in fiscal year 2017 are for the Board 
589.35 	of School Administrators;
590.1 	(3) $1,000,000 each year is for Regional Centers of Excellence under Minnesota 
590.2 	Statutes, section 120B.115;
590.3 	(4) $500,000 each year is for the School Safety Technical Assistance Center under 
590.4 	Minnesota Statutes, section 127A.052; 
590.5 	(5) $250,000 each year is for the School Finance Division to enhance financial 
590.6 	data analysis; and
590.7 	(6) $441,000 in fiscal year 2016 and $720,000 in fiscal year 2017 is for implementing 
590.8 	Laws 2014, chapter 272, article 1, Minnesota's Learning for English Academic Proficiency 
590.9 	and Success Act, as amended;
590.10 	(7) $2,750,000 in fiscal year 2017 only is for implementation of schoolwide 
590.11 	Positive Behavioral Interventions and Supports (PBIS) in schools and districts throughout 
590.12 	Minnesota to reduce the use of restrictive procedures and increase use of positive 
590.13 	practices. This is a onetime appropriation; and
590.14 	(8) $1,000,000 in fiscal year 2017 only is for Department of Education information 
590.15 	technology enhancements and security. This is a onetime appropriation.
590.16 	(b) Any balance in the first year does not cancel but is available in the second year. 
590.17 	(c) None of the amounts appropriated under this subdivision may be used for 
590.18 	Minnesota's Washington, D.C. office.
590.19 	(d) The expenditures of federal grants and aids as shown in the biennial budget 
590.20 	document and its supplements are approved and appropriated and shall be spent as 
590.21 	indicated.
590.22 	(e) This appropriation includes funds for information technology project services and 
590.23 	support subject to the provisions of Minnesota Statutes, section 16E.0466. Any ongoing 
590.24 	information technology costs will be incorporated into the service level agreement and 
590.25 	will be paid to the Office of MN.IT Services by the Department of Education under the 
590.26 	rates and mechanism specified in that agreement.
590.27 	(f) The agency's base budget in fiscal year 2018 is $21,973,000 $22,121,000. The 
590.28 	agency's base budget in fiscal year 2019 is $21,948,000 $22,096,000.
590.29 		Subd. 3.Licensure by Portfolio. For licensure by portfolio:

590.30		$
	34,000
	.....
	2017
	
590.31 	This appropriation is from the educator licensure portfolio account of the special 
590.32 	revenue fund.

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

590.34 	Sec. 3. APPROPRIATIONS; BOARD OF TEACHING.
 591.1 	(a) The sums indicated in this section are appropriated from the general fund to the 
591.2 	Board of Teaching for the fiscal years designated:

591.3		$
	1,018,000
	.....
	2017
	
591.4 	Of this amount, $80,000 in fiscal year 2017 only is for a contract for an electronic 
591.5 	statewide school teacher and administrator job board. The job board must allow 
591.6 	school districts to post job openings for prekindergarten through grade 12 teaching and 
591.7 	administrative positions. Notwithstanding Minnesota Statutes, section 16E.0466, the 
591.8 	board is not required to consult with the Office of MN.IT Services nor transfer any of this 
591.9 	appropriation to the Office of MN.IT Services.
591.10 	(b) This appropriation includes funds for information technology project services 
591.11 	and support subject to Minnesota Statutes, section 16E.0466. Any ongoing information 
591.12 	technology costs will be incorporated into an interagency agreement and will be paid to 
591.13 	the Office of MN.IT Services by the Board of Teaching under the mechanism specified 
591.14 	in that agreement.
591.15 	(c) The board's base budget for fiscal year 2018 and later is $968,000.

591.16 	ARTICLE 34
591.17 	FORECAST ADJUSTMENTS
591.18 	A. GENERAL EDUCATION

591.19 	Section 1. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 
591.20 	4, is amended to read:
591.21 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
591.22 	127A.49:

591.23
591.24		$
	2,740,000
3,051,000
	.....
	2016
	
591.25
591.26		$
	2,932,000
3,425,000
	.....
	2017
	
591.27 	The 2016 appropriation includes $278,000 for 2015 and $2,462,000 $2,773,000
591.28 	for 2016.
591.29 	The 2017 appropriation includes $273,000 $308,000 for 2016 and $2,659,000
591.30 	$3,117,000 for 2017.

591.31 	Sec. 2. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 5, 
591.32 	is amended to read:
592.1 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
592.2 	Statutes, section 123A.485:

592.3
592.4		$
	292,000
22,000
	.....
	2016
	
592.5
592.6		$
	165,000
0
	.....
	2017
	
592.7 	The 2016 appropriation includes $22,000 for 2015 and $270,000 $0 for 2016.
592.8 	The 2017 appropriation includes $30,000 $0 for 2016 and $135,000 $0 for 2017.

592.9 	Sec. 3. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 6, 
592.10 	is amended to read:
592.11 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
592.12 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

592.13
592.14		$ 
	16,881,000
16,759,000
	.....
	2016
	
592.15
592.16		$ 
	17,460,000
17,235,000
	.....
	2017
	
592.17 	The 2016 appropriation includes $1,575,000 for 2015 and $15,306,000 $15,184,000
592.18 	for 2016.
592.19 	The 2017 appropriation includes $1,700,000 $1,687,000 for 2016 and $15,760,000
592.20 	$15,548,000 for 2017.

592.21 	Sec. 4. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 7, 
592.22 	is amended to read:
592.23 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
592.24 	under Minnesota Statutes, section 123B.92, subdivision 9:

592.25
592.26		$ 
	17,654,000
17,673,000
	.....
	2016
	
592.27
592.28		$ 
	17,792,000
18,103,000
	.....
	2017
	
592.29 	The 2016 appropriation includes $1,816,000 for 2015 and $15,838,000 $15,857,000
592.30 	for 2016.
592.31 	The 2017 appropriation includes $1,759,000 $1,761,000 for 2016 and $16,033,000
592.32 	$16,342,000 for 2017.

592.33 	Sec. 5. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 9, 
592.34 	is amended to read:
593.1 		Subd. 9.Career and technical aid. For career and technical aid under Minnesota 
593.2 	Statutes, section 124D.4531, subdivision 1b:

593.3
593.4		$
	5,420,000
5,922,000
	.....
	2016
	
593.5
593.6		$
	4,405,000
4,262,000
	.....
	2017
	
593.7 	The 2016 appropriation includes $574,000 for 2015 and $4,846,000 $5,348,000
593.8 	for 2016.
593.9 	The 2017 appropriation includes $538,000 $517,000 for 2016 and $3,867,000
593.10 	$3,745,000 for 2017.
593.11 	B. EDUCATION EXCELLENCE

593.12 	Sec. 6. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 4, 
593.13 	is amended to read:
593.14 		Subd. 4.Literacy incentive aid. For literacy incentive aid under Minnesota 
593.15 	Statutes, section 124D.98:

593.16
593.17		$
	44,552,000
44,538,000
	.....
	2016
	
593.18
593.19		$
	45,508,000
45,855,000
	.....
	2017
	
593.20 	The 2016 appropriation includes $4,683,000 for 2015 and $39,869,000 $39,855,000
593.21 	for 2016.
593.22 	The 2017 appropriation includes $4,429,000 $4,428,000 for 2016 and $41,079,000
593.23 	$41,427,000 for 2017.

593.24 	Sec. 7. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 5, 
593.25 	is amended to read:
593.26 		Subd. 5.Interdistrict desegregation or integration transportation grants. For 
593.27 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
593.28 	section 124D.87:

593.29
593.30		$
	15,023,000
14,423,000
	.....
	2016
	
593.31
593.32		$
	15,825,000
15,193,000
	.....
	2017

593.33 	Sec. 8. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 7, 
593.34 	is amended to read:
594.1 		Subd. 7.Tribal contract schools. For tribal contract school aid under Minnesota 
594.2 	Statutes, section 124D.83:

594.3
594.4		$ 
	4,340,000
3,539,000
	.....
	2016
	
594.5
594.6		$ 
	5,090,000
3,715,000
	.....
	2017
	
594.7 	The 2016 appropriation includes $204,000 for 2015 and $4,136,000 $3,335,000
594.8 	for 2016.
594.9 	The 2017 appropriation includes $459,000 $370,000 for 2016 and $4,631,000
594.10 	$3,345,000 for 2017.

594.11 	Sec. 9. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
594.12 	11, is amended to read:
594.13 		Subd. 11.American Indian education aid. For American Indian education aid 
594.14 	under Minnesota Statutes, section 124D.81, subdivision 2a:

594.15
594.16		$ 
	7,868,000
7,740,000
	.....
	2016
	
594.17
594.18		$ 
	8,875,000
8,878,000
	.....
	2017
	
594.19 	The 2016 appropriation includes $0 for 2015 and $7,868,000 $7,740,000 for 2016.
594.20 	The 2017 appropriation includes $874,000 $860,000 for 2016 and $8,001,000
594.21 	$8,018,000 for 2017.
594.22 	C. SPECIAL PROGRAMS

594.23 	Sec. 10. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 
594.24 	3, is amended to read:
594.25 		Subd. 3.Travel for home-based services. For aid for teacher travel for home-based 
594.26 	services under Minnesota Statutes, section 125A.75, subdivision 1:

594.27
594.28		$
	361,000
416,000
	.....
	2016
	
594.29
594.30		$
	371,000
435,000
	.....
	2017
	
594.31 	The 2016 appropriation includes $35,000 for 2015 and $326,000 $381,000 for 2016.
594.32 	The 2017 appropriation includes $36,000 $42,000 for 2016 and $335,000 $393,000
594.33 	for 2017.

594.34 	Sec. 11. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 
594.35 	5, is amended to read:
595.1 		Subd. 5.Aid for children with disabilities. For aid under Minnesota Statutes, 
595.2 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
595.3 	within the district boundaries for whom no district of residence can be determined:

595.4
595.5		$
	1,406,000
1,307,000
	.....
	2016
	
595.6
595.7		$
	1,629,000
1,516,000
	.....
	2017
	
595.8 	If the appropriation for either year is insufficient, the appropriation for the other 
595.9 	year is available.
595.10 	D. FACILITIES AND TECHNOLOGY

595.11 	Sec. 12. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
595.12 	3, is amended to read:
595.13 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
595.14 	Statutes, section 123B.53, subdivision 6:

595.15		$
	20,349,000
	.....
	2016
	
595.16
595.17		$
	22,171,000
22,926,000
	.....
	2017
	
595.18 	The 2016 appropriation includes $2,295,000 for 2015 and $18,054,000 for 2016.
595.19 	The 2017 appropriation includes $2,005,000 for 2016 and $20,166,000 $20,921,000
595.20 	for 2017.

595.21 	Sec. 13. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
595.22 	6, is amended to read:
595.23 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
595.24 	Minnesota Statutes, section 123B.591, subdivision 4:

595.25
595.26		$
	3,520,000
3,523,000
	.....
	2016
	
595.27		$
	345,000
	.....
	2017
	
595.28 	The 2016 appropriation includes $409,000 for 2015 and $3,111,000 $3,114,000
595.29 	for 2016.
595.30 	The 2017 appropriation includes $345,000 for 2016 and $0 for 2017.

595.31 	Sec. 14. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
595.32 	7, is amended to read:
595.33 		Subd. 7.Health and safety revenue. For health and safety aid according to 
595.34 	Minnesota Statutes, section 123B.57, subdivision 5:

596.1
596.2		$
	501,000
588,000
	.....
	2016
	
596.3
596.4		$
	48,000
57,000
	.....
	2017
	
596.5 	The 2016 appropriation includes $66,000 for 2015 and $435,000 $522,000 for 2016.
596.6 	The 2017 appropriation includes $48,000 $57,000 for 2016 and $0 for 2017.
596.7 	E. NUTRITION

596.8 	Sec. 15. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 4, 
596.9 	is amended to read:
596.10 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
596.11 	section 124D.118:

596.12
596.13		$
	942,000
788,000
	.....
	2016
	
596.14
596.15		$
	942,000
788,000
	.....
	2017
	
596.16 	F. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, 
596.17 	AND LIFELONG LEARNING

596.18 	Sec. 16. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 5, 
596.19 	is amended to read:
596.20 		Subd. 5.Early childhood family education aid. For early childhood family 
596.21 	education aid under Minnesota Statutes, section 124D.135:

596.22
596.23		$ 
	28,444,000
27,948,000
	.....
	2016
	
596.24
596.25		$ 
	29,939,000
29,336,000
	.....
	2017
	
596.26 	The 2016 appropriation includes $2,713,000 for 2015 and $25,731,000 $25,235,000
596.27 	for 2016.
596.28 	The 2017 appropriation includes $2,858,000 $2,803,000 for 2016 and $27,081,000
596.29 	$26,533,000 for 2017.

596.30 	Sec. 17. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 6, 
596.31 	is amended to read:
596.32 		Subd. 6.Developmental screening aid. For developmental screening aid under 
596.33 	Minnesota Statutes, sections 121A.17 and 121A.19:

597.1
597.2		$
	3,363,000
3,477,000
	.....
	2016
	
597.3
597.4		$
	3,369,000
3,488,000
	.....
	2017
	
597.5 	The 2016 appropriation includes $338,000 for 2015 and $3,025,000 $3,139,000
597.6 	for 2016.
597.7 	The 2017 appropriation includes $336,000 $348,000 for 2016 and $3,033,000
597.8 	$3,140,000 for 2017.

597.9 	Sec. 18. Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision 
597.10 	2, is amended to read:
597.11 		Subd. 2.Community education aid. For community education aid under 
597.12 	Minnesota Statutes, section 124D.20:

597.13
597.14		$
	788,000
790,000
	.....
	2016
	
597.15
597.16		$
	554,000
553,000
	.....
	2017
	
597.17 	The 2016 appropriation includes $107,000 for 2015 and $681,000 $683,000 for 2016.
597.18 	The 2017 appropriation includes $75,000 for 2016 and $479,000 $478,000 for 2017.

597.19 	Sec. 19. Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision 
597.20 	2, is amended to read:
597.21 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
597.22 	Statutes, section 124D.531:

597.23
597.24		$
	49,118,000
48,231,000
	.....
	2016
	
597.25
597.26		$
	50,592,000
49,683,000
	.....
	2017
	
597.27 	The 2016 appropriation includes $4,782,000 for 2015 and $44,336,000 $43,449,000
597.28 	for 2016.
597.29 	The 2017 appropriation includes $4,926,000 $4,827,000 for 2016 and $45,666,000
597.30 	$44,856,000 for 2017.

APPENDIX 

Repealed Minnesota Statutes: H2749-3 

116P.13 MINNESOTA FUTURE RESOURCES FUND.Subdivision 1.Revenue sources. 
The money in the Minnesota future resources fund consists of revenue credited under section 297F.10, subdivision 1, paragraph (b), clause (1). 

Subd. 2.Interest. 
The interest attributable to the investment of the Minnesota future resources fund must be credited to the fund. 

Subd. 3.Revenue purposes. 
Revenue in the Minnesota future resources fund may be spent for purposes of natural resources acceleration and outdoor recreation, including but not limited to the development, maintenance, and operation of the state outdoor recreation system under chapter 86A and regional recreation open space systems as defined under section 473.351, subdivision 1. 

122A.413 EDUCATIONAL IMPROVEMENT PLAN.Subdivision 1.Qualifying plan. 
A district, intermediate school district, or a cooperative unit, as defined in section 123A.24, subdivision 2, may develop an educational improvement plan for the purpose of qualifying for the alternative teacher professional pay system under section 122A.414. The plan must include measures for improving school district, intermediate school district, cooperative, school site, teacher, and individual student performance. 

Subd. 2.Plan components. 
The educational improvement plan must be approved by the school board or governing board and have at least these elements: 

(1) assessment and evaluation tools to measure student performance and progress, including the academic literacy, oral academic language, and achievement of English learners, among other measures; 

(2) performance goals and benchmarks for improvement; 

(3) measures of student attendance and completion rates; 

(4) a rigorous research and practice-based professional development system, based on national and state standards of effective teaching practice applicable to all students including English learners with varied needs under section 124D.59, subdivisions 2 and 2a, and consistent with section 122A.60, that is aligned with educational improvement and designed to achieve ongoing and schoolwide progress and growth in teaching practice; 

(5) measures of student, family, and community involvement and satisfaction; 

(6) a data system about students and their academic progress that provides parents and the public with understandable information; 

(7) a teacher induction and mentoring program for probationary teachers that provides continuous learning and sustained teacher support; and 

(8) substantial participation by the exclusive representative of the teachers in developing the plan. 

Subd. 3.School site accountability. 
A district or intermediate school district that develops a plan under subdivisions 1 and 2 must ensure that each school site develops a board-approved educational improvement plan that is aligned with the district educational improvement plan under subdivision 2 and developed with the exclusive representative of the teachers. While a site plan must be consistent with the district educational improvement plan, it may establish performance goals and benchmarks that meet or exceed those of the district. 

122A.43 SHORT-TERM, LIMITED CONTRACTS.Subd. 6.Report. 
Each district awarding contracts under this section is encouraged to submit a report to the commissioner. The report shall indicate the number of contracts awarded, whether duties are to be performed before, during, or after the school day or during the summer, the total cost of all contracts, and a general description of the duties. The statement shall also describe how the recommendations required by subdivision 2 were obtained. Any problems associated with implementing this section may be included. 

123B.60 BUILDING BONDS FOR CALAMITIES.Subd. 2.Health and safety revenue. 
For any fiscal year where the total amount of health and safety revenue is limited, the commissioner must award highest priority to health and safety revenue pledged to repay building bonds issued under subdivision 1. 

123B.79 PERMANENT FUND TRANSFERS.Subd. 2.Technical colleges. 
Money must not be transferred from the postsecondary general fund to any other operating or nonoperating fund. 

Subd. 6.Account transfer for statutory operating debt. 
On June 30 of each year, a district may make a permanent transfer from the general fund account entitled "net unreserved general fund balance since statutory operating debt" to the account entitled "reserved fund balance reserve account for purposes of statutory operating debt reduction." The amount of the transfer is limited to the net unreserved general fund balance. If the net unreserved general fund balance is less than zero, the district may not make a transfer. 

149A.92 PREPARATION AND EMBALMING ROOM.Subd. 11.Scope. 
Notwithstanding the requirements in section 149A.50, this section applies only to funeral establishments where human remains are present for the purpose of preparation and embalming, private viewings, visitations, services, and holding of human remains while awaiting final disposition. For the purpose of this subdivision, "private viewing" means viewing of a dead human body by persons designated in section 149A.80, subdivision 2. 

154.03 APPRENTICES MAY BE EMPLOYED.
A registered apprentice may practice barbering only if the registered apprentice is, at all times, under the immediate personal supervision of a registered barber and is in compliance with sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and the rules of the board. 

154.06 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A REGISTERED APPRENTICE.
(a) A person is qualified to receive a certificate of registration as a registered apprentice: 

(1) who has completed at least ten grades of an approved school; 

(2) who has graduated from a barber school approved by a barber board within the previous four years; and 

(3) who has passed an examination conducted by the board to determine fitness to practice as a registered apprentice. An applicant who graduated from a barber school approved by a barber board more than four years prior to application is required to complete a further course of study of at least 500 hours. 

(b) An applicant for an initial certificate of registration to practice as an apprentice, who fails to pass the comprehensive examination conducted by the board, and who fails to pass a onetime retake of the written examination, is required to complete a further course of study of at least 500 hours, of not more than eight hours in any one working day, in a barber school approved by the board before being eligible to retake the comprehensive examination as many times as necessary to pass. 

(c) A certificate of registration of an apprentice shall be valid for four years and shall not be renewed for a fifth year. During the four-year period the certificate of registration shall remain in full force and effect only if the apprentice complies with all the provisions of sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26, including the payment of an annual fee, and the rules of the board. 

(d) If a registered apprentice, during the term in which the certificate of registration is in effect, enters full-time active duty in the armed forces of the United States of America, the expiration date of the certificate of registration shall be extended by a period of time equal to the period or periods of active duty. 

(e) If a registered apprentice graduates from a barber school approved by the board and is issued a certificate of registration while incarcerated by the Department of Corrections of the Federal Bureau of Prisons, the expiration date of the certificate of registration shall be extended one time so that it expires four years from the date of first release from a correctional facility. 

154.11 EXAMINATION OF NONRESIDENT BARBERS AND INSTRUCTORS OF BARBERING; TEMPORARY APPRENTICE PERMITS; TEMPORARY MILITARY LICENSE AND APPRENTICE PERMITS.Subd. 2.Temporary apprentice permits for nonresidents. 
Any person who qualifies for examination as a registered barber under this section may apply for a temporary apprentice permit which is effective no longer than six months. All persons holding a temporary apprentice permit are subject to all provisions of sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and the rules adopted by the board under those sections concerning the conduct and obligations of registered apprentices. 

154.12 EXAMINATION OF NONRESIDENT APPRENTICES.
A person who meets all of the requirements for registration as a barber in sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26 and who has a license, a certificate of registration, or its equivalent as an apprentice in a state or country which in the discretion of the board has substantially the same requirements for registration as an apprentice as is provided by sections 154.001, 154.002, 154.003, 154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26, shall, upon payment of the required fee, be issued a certificate of registration without examination. 

216B.1612 COMMUNITY-BASED ENERGY DEVELOPMENT; TARIFF.Subdivision 1.Tariff establishment. 
A tariff shall be established to optimize local, regional, and state benefits from renewable energy development and to facilitate widespread development of community-based renewable energy projects throughout Minnesota. 

Subd. 2.Definitions. 
(a) The terms used in this section have the meanings given them in this subdivision. 

(b) "C-BED tariff" or "tariff" means a community-based energy development tariff. 

(c) "Qualifying beneficiary" means: 

(1) a Minnesota resident individually or as a member of a Minnesota limited liability company organized under chapter 322B and formed for the purpose of developing a C-BED project; 

(2) a Minnesota nonprofit organization organized under chapter 317A; 

(3) a Minnesota cooperative association organized under chapter 308A or 308B, including a rural electric cooperative association or a generation and transmission cooperative on behalf of and at the request of a member distribution utility; 

(4) a Minnesota political subdivision or local government including, but not limited to, a municipal electric utility, or a municipal power agency on behalf of and at the request of a member distribution utility; the office of the commissioner of Iron Range resources and rehabilitation; a county, statutory or home rule charter city, town, school district, or public or private higher education institution; or any other local or regional governmental organization such as a board, commission, or association; 

(5) a tribal council; or 

(6) a legal entity (i) formed for a purpose other than to participate in C-BED projects; (ii) whose principal place of business or principal executive office is located in Minnesota; and (iii) that provides labor, services, equipment, components, or debt financing to a C-BED project. 

A public utility, as defined in section 216B.02, subdivision 4, is not a qualifying beneficiary. 

(d) "Qualifying revenue" includes, but is not limited to: 

(1) royalties, distributions, dividends, and other payments flowing directly or indirectly to individuals who are qualifying beneficiaries; 

(2) reasonable fees for consulting, development, professional, construction, and operations and maintenance services paid to qualifying beneficiaries; 

(3) interest and fees paid to financial institutions that are qualifying beneficiaries; 

(4) the value-added portion of payments for goods manufactured in Minnesota; and 

(5) production taxes. 

(e) "Discount rate" means the ten-year United States Treasury Yield as quoted in the Wall Street Journal as of the date of application for determination under subdivision 10, plus five percent; except that the discount rate applicable to any qualifying revenues contingent upon an equity investor earning a specified internal rate of return is the ten-year United States Treasury Yield, plus eight percent. 

(f) "Standard reliability criteria" means: 

(1) can be safely integrated into and operated within the utility's grid without causing any adverse or unsafe consequences; and 

(2) is consistent with the utility's resource needs as identified in its most recent resource plan submitted under section 216B.2422. 

(g) "Renewable" refers to a technology listed in section 216B.1691, subdivision 1, paragraph (a). 

(h) "Community-based energy development project" or "C-BED project" means a new renewable energy project that either as a stand-alone project or part of a partnership under subdivision 8: 

(1) has no single qualifying beneficiary, including any parent company or subsidiary of the qualifying beneficiary, owning more than 15 percent of a C-BED wind energy project unless: (i) the C-BED wind energy project consists of only one or two turbines; or (ii) the qualifying beneficiary is a public entity listed under paragraph (c), clause (4); 

(2) demonstrates that at least 51 percent of the net present value of the gross revenues from a power purchase agreement over the life of the project are qualifying revenues; and 

(3) has a resolution of support adopted by the county board of each county in which the project is to be located, or in the case of a project located within the boundaries of a reservation, the tribal council for that reservation. 

(i) "Value-added portion" means the difference between the total sales price and the total cost of components, materials, and services purchased from or provided outside of Minnesota. 

Subd. 3.Tariff rate. 
(a) The tariff described in subdivision 4 must provide for a rate that is higher in the first ten years of the power purchase agreement than in the last ten years. 

(b) The commission shall consider mechanisms to encourage the aggregation of C-BED projects. 

(c) The commission shall require that C-BED projects provide sufficient security to secure performance under the power purchase agreement, and shall prohibit transfer of a C-BED project during the initial term of a power purchase agreement if the transfer will result in the project no longer qualifying under subdivision 2, paragraph (h). 

Subd. 4.Utilities to offer tariff. 
By December 1, 2007, each public utility providing electric service at retail shall file for commission approval a community-based energy development tariff consistent with subdivision 3. Within 90 days of the first commission approval order under this subdivision, each municipal power agency and generation and transmission cooperative electric association shall adopt a community-based energy development tariff as consistent as possible with subdivision 3. 

Subd. 5.Priority for C-BED projects. 
(a) A utility subject to section 216B.1691 that needs to construct new generation, or purchase the output from new generation, as part of its plan to satisfy its good faith objective and standard under that section must take reasonable steps to determine if one or more C-BED projects are available that meet the utility's cost and reliability requirements, applying standard reliability criteria, to fulfill some or all of the identified need at minimal impact to customer rates. 

Nothing in this section shall be construed to obligate a utility to enter into a power purchase agreement under a C-BED tariff developed under this section. 

(b) Each utility shall include in its resource plan submitted under section 216B.2422 a description of its efforts to purchase energy from C-BED projects, including a list of the projects under contract and the amount of C-BED energy purchased. 

(c) The commission shall consider the efforts and activities of a utility to purchase energy from C-BED projects when evaluating its good faith effort towards meeting the renewable energy objective under section 216B.1691. 

(d) A municipal power agency or generation and transmission cooperative shall, when issuing a request for proposals for C-BED projects to satisfy its standard obligation under section 216B.1691, provide notice to its member distribution utilities that they may propose, in partnership with other qualifying beneficiaries, a C-BED project for the consideration of the municipal power agency or generation and transmission cooperative. 

Subd. 6.Property owner participation. 
To the extent feasible, a developer of a C-BED project must provide, in writing, an opportunity to invest in the C-BED project to each property owner on whose property a high-voltage transmission line is constructed that will transmit the energy generated by the C-BED project to market. This subdivision applies if the property is located and the owner resides in the county where the C-BED project is located. 

Subd. 7.Other C-BED tariff issues. 
(a) A community-based project developer and a utility shall negotiate the rate and power purchase agreement terms consistent with the tariff established under subdivision 4. 

(b) At the discretion of the developer, a community-based project developer and a utility may negotiate a power purchase agreement with terms different from the tariff established under subdivision 4. 

(c) A C-BED project may be jointly developed with a non-C-BED project. However, the terms of the C-BED tariff may only apply to the portion of the energy production of the total project that is directly proportional to the energy produced by the C-BED project. A project that is operating under a power purchase agreement under a C-BED tariff is not eligible for net energy billing under section 216B.164, subdivision 3, or for production incentives under section 216C.41. 

(d) A public utility must receive commission approval of a power purchase agreement for a C-BED tariffed project. The commission shall provide the utility's ratepayers an opportunity to address the reasonableness of the proposed power purchase agreement. Unless a party objects to a contract within 30 days of submission of the contract to the commission the contract is deemed approved. 

Subd. 8.Community energy partnerships. 
A utility providing electric service to retail or wholesale customers in Minnesota and an independent power producer may, subject to the limits specified in this section, participate in a community-based energy project, including as an owner, equity partner, or provider of technical or financial assistance. 

Subd. 9.Local government and political subdivision powers. 
A Minnesota political subdivision or local government may plan, develop, purchase, acquire, construct, and own a C-BED project and may sell output from that project as provided for in this section. A Minnesota political subdivision or local government may not acquire property under this subdivision through eminent domain. A Minnesota political subdivision or local government may operate, maintain, improve, and expand the C-BED project subject to any restrictions in this section. 

Subd. 10.C-BED eligibility determination. 
(a) A developer of a C-BED project may seek a predetermination of C-BED eligibility from the commissioner of commerce at any time, and must obtain a determination of C-BED eligibility from the commissioner of commerce, based on the project's final financing terms, before construction may begin. In seeking a determination of eligibility under this subdivision, a developer of a C-BED project must submit to the commissioner of commerce detailed financial projections demonstrating that, based on a net present value analysis, and applying the discount rate to qualifying revenues and gross revenues from a power purchase agreement, the project meets the requirements of subdivision 2, paragraph (h), clause (2). 

(b) A project is not required to obtain a determination of C-BED eligibility under paragraph (a) if it has received, prior to May 18, 2010, an opinion letter from the commissioner indicating that the project qualifies as a C-BED project under this section. 

(c) The commissioner's determination of C-BED eligibility of a project that obtained its initial opinion letter regarding C-BED eligibility from the commissioner or written notification from the Midwest Independent Systems Operator (MISO) that the project retains a position in the interconnection queue before May 18, 2010, must be based on the laws applicable at the time the initial opinion letter of C-BED eligibility was issued or the Midwest Independent System Operator interconnection queue position was obtained. A project subject to this paragraph may elect to have the determination of eligibility governed by the law in effect at the time of the determination. 

216C.39 RURAL WIND ENERGY DEVELOPMENT REVOLVING LOAN FUND.Subdivision 1.Establishment. 
A rural wind energy development revolving loan fund is established as an account in the special revenue fund in the state treasury. The commissioner of management and budget shall credit to the account the amounts authorized under this section and appropriations and transfers to the account. Earnings, such as interest, dividends, and any other earnings arising from fund assets, must be credited to the account. 

Subd. 2.Purpose. 
The rural wind energy development revolving loan fund is created to provide financial assistance, through partnership with local owners and communities, in developing community wind energy projects that meet the specifications of section 216B.1612, subdivision 2, paragraph (h). 

Subd. 3.Expenditures. 
Money in the fund is appropriated to the commissioner of commerce, and may be used to make loans to qualifying owners of wind energy projects, as defined in section 216B.1612, subdivision 2, paragraph (h), to assist in funding wind studies and transmission interconnection studies. The loans must be structured for repayment within 30 days after the project begins commercial operations or two years from the date the loan is issued, whichever is sooner. The commissioner may pay reasonable and actual costs of administering the loan program, not to exceed interest earned on fund assets. 

Subd. 4.Limitations. 
A loan may not be approved for an amount exceeding $100,000. This limit applies to all money loaned to a single project or single entity, whether paid to one or more qualifying owners and whether paid in one or more fiscal years. 

Subd. 5.Administration; eligible projects. 
(a) Applications for a loan under this section must be made in a manner and on forms prescribed by the commissioner. Loans to eligible projects must be made in the order in which complete applications are received by the commissioner. Loan funds must be disbursed to an applicant within ten days of submission of a payment request by the applicant that demonstrates a payment due to the Midwest Independent System Operator. Interest payable on the loan amount may not exceed 1.5 percent per annum. 

(b) A project is eligible for a loan under this program if: 

(1) the project has completed an adequate interconnection feasibility study that indicates the project may be interconnected with system upgrades of less than ten percent of the estimated project costs; 

(2) the project has a signed power purchase agreement with an electric utility or provides evidence that the project is under serious consideration for such an agreement by an electric utility; 

(3) the ownership and structure of the project allows it to qualify as a community-based energy development (C-BED) project under section 216B.1612, and the developer commits to obtaining and maintaining C-BED status; and 

(4) the commissioner has determined that sufficient funds are available to make a loan to the project. 

256B.059 TREATMENT OF ASSETS WHEN A SPOUSE IS INSTITUTIONALIZED.Subd. 1a.Institutionalized spouse. 
The provisions of this section apply only when a spouse begins the first continuous period of institutionalization on or after October 1, 1989. 

256L.04 ELIGIBLE PERSONS.Subd. 2a.Applications for other benefits. 
To be eligible for MinnesotaCare, individuals and families must take all necessary steps to obtain other benefits as described in Code of Federal Regulations, title 42, section 435.608. Applicants and enrollees must apply for other benefits within 30 days of notification. 

Subd. 8.Applicants potentially eligible for medical assistance. 
(a) Individuals who receive Supplemental Security Income or retirement, survivors, or disability benefits due to a disability, or other disability-based pension, who qualify under subdivision 7, but who are potentially eligible for medical assistance without a spenddown shall be allowed to enroll in MinnesotaCare, so long as the applicant meets all other conditions of eligibility. The commissioner shall identify and refer the applications of such individuals to their county social service agency. The county and the commissioner shall cooperate to ensure that the individuals obtain medical assistance coverage for any months for which they are eligible. 

(b) The enrollee must cooperate with the county social service agency in determining medical assistance eligibility. Enrollees who do not cooperate with medical assistance shall be disenrolled from the plan within one calendar month. Persons disenrolled for nonapplication for medical assistance may not reenroll until they have obtained a medical assistance eligibility determination. Persons disenrolled for noncooperation with medical assistance may not reenroll until they have cooperated with the county agency and have obtained a medical assistance eligibility determination. 

(c) Counties that choose to become MinnesotaCare enrollment sites shall consider MinnesotaCare applications to also be applications for medical assistance. 

(d) The commissioner shall redetermine provider payments made under MinnesotaCare to the appropriate medical assistance payments for those enrollees who subsequently become eligible for medical assistance. 

256L.22 DEFINITION; CHILDREN'S HEALTH PROGRAM.
For purposes of sections 256L.22 to 256L.28, "children's health program" means the medical assistance and MinnesotaCare programs to the extent medical assistance and MinnesotaCare provide health coverage to children. 

256L.24 HEALTH CARE ELIGIBILITY FOR CHILDREN.Subdivision 1.Applicability. 
This section applies to children who are enrolled in a children's health program. 

Subd. 2.Application procedure. 
The commissioner shall develop an application form for children's health programs for children that is easily understandable and does not exceed four pages in length. The provisions of section 256L.05, subdivision 1, apply. 

Subd. 3.Premiums. 
Children enrolled in MinnesotaCare shall pay premiums as provided in section 256L.15. 

Subd. 4.Eligibility renewal. 
The commissioner shall require children enrolled in MinnesotaCare to renew eligibility every 12 months. 

256L.26 ASSISTANCE TO APPLICANTS.
The commissioner shall assist children in choosing a managed care organization to receive services under a children's health program, by: 

(1) establishing a Web site to provide information about managed care organizations and to allow online enrollment; 

(2) making applications and information on managed care organizations available to applicants and enrollees according to Title VI of the Civil Rights Act and federal regulations adopted under that law or any guidance from the United States Department of Health and Human Services; and 

(3) making benefit educators available to assist applicants in choosing a managed care organization. 

256L.28 FEDERAL APPROVAL.
The commissioner shall seek all federal waivers and approvals necessary to implement sections 256L.22 to 256L.28, including, but not limited to, waivers and approvals necessary to: 

(1) coordinate medical assistance and MinnesotaCare coverage for children; and 

(2) maximize receipt of the federal medical assistance match for covered children, by increasing income standards through the use of more liberal income methodologies as provided under United States Code, title 42, sections 1396a and 1396u-1. 

Repealed Minnesota Session Laws: H2749-3 

Laws 2015, First Special Session chapter 4, article 2, section 81 by Laws 2016, chapter 184, section 14; as amended by Laws 2016, chapter 189, article 2, section 31
Sec. 81. Minnesota Statutes 2014, section 583.215, is amended to read:583.215 EXPIRATION. 
Sections 336.9-601, subsections (h) and (i); 550.365; 559.209; 582.039; and 583.20 to 583.32, expire June 30, 2017. 

EFFECTIVE DATE. 
This section is effective May 23, 2016, if the legislature does not meet in regular session in calendar year 2016 before May 23, 2016. If the legislature meets in regular session in calendar year 2016 before May 23, 2016, this section is void.