HF 3931

2nd Unofficial Engrossment - 89th Legislature (2015 - 2016)

Posted on 05/12/2016 09:14 a.m.

1.1A bill for an act 1.2relating to financing of state and local government; making changes to individual 1.3income and corporate franchise, property, sales and use, special, local, and 1.4other taxes and tax-related provisions; providing for and expanding credits; 1.5authorizing riparian protection aid; providing property tax exemptions and 1.6refunds; authorizing sales and use tax exemptions; modifying sales and use tax 1.7remittances; providing for and modifying certain local development projects; 1.8modifying special taxing districts; authorizing issuance of bonds; providing for 1.9paid family and medical leave benefits; transferring approval authority from Iron 1.10Range Resources and Rehabilitation Board to the commissioner of Iron Range 1.11resources and rehabilitation; authorizing early separation incentive program; 1.12appropriating money;amending Minnesota Statutes 2014, sections 13.719, by 1.13adding a subdivision; 15.38, subdivision 7; 116J.424; 116J.8737, subdivision 1.142; 181.940, subdivisions 2, 4; 181.941, subdivision 4; 181.942, subdivision 1; 1.15181.943; 216B.161, subdivision 1; 256J.561, by adding a subdivision; 256J.95, 1.16subdivisions 3, 11; 268.19, subdivision 1; 270B.14, subdivision 2; 272.162; 1.17276A.01, subdivisions 8, 17; 282.38, subdivision 1; 290.01, subdivisions 19a, 1.1819b, 19c; 290.06, by adding a subdivision; 290.091, subdivision 2; 297A.66, 1.19subdivisions 1, 3, 4, by adding subdivisions; 297A.71, by adding subdivisions; 1.20297A.75, subdivisions 1, 2, 3; 298.001, subdivision 8; 298.22, subdivisions 1a, 1.215a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5, 1.226; 298.223, subdivisions 1, 2; 298.227; 298.28, subdivisions 7a, 9d; 298.292, 1.23subdivision 2; 298.294; 298.296, subdivisions 1, 2, 4; 298.2961, subdivisions 2, 1.244; 298.298; 298.46, subdivision 2; 473.39, by adding a subdivision; Minnesota 1.25Statutes 2015 Supplement, sections 256P.01, subdivision 3; 289A.02, subdivision 1.267; 290.01, subdivisions 19, 31; 290.0671, subdivision 1; 290A.03, subdivision 1.2715; 291.005, subdivision 1; Laws 1988, chapter 645, section 3, as amended; 1.28Laws 2008, chapter 154, article 9, section 21, subdivision 2; Laws 2009, chapter 1.2988, article 2, section 46, subdivisions 1, as amended, 2, 3, as amended, 4, 5; 1.30Laws 2014, chapter 308, article 6, section 9; proposing coding for new law in 1.31Minnesota Statutes, chapters 181; 216B; 270C; 290; 469; 477A; proposing 1.32coding for new law as Minnesota Statutes, chapter 268B. 1.33BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.1ARTICLE 1 2.2INCOME AND CORPORATE FRANCHISE TAXES 2.3    Section 1. Minnesota Statutes 2014, section 116J.8737, subdivision 2, is amended to 2.4read: 2.5    Subd. 2. Certification of qualified small businesses. (a) Businesses may apply 2.6to the commissioner for certification as a qualified small business or qualified greater 2.7Minnesota small business for a calendar year. The application must be in the form 2.8and be made under the procedures specified by the commissioner, accompanied by an 2.9application fee of $150. Application fees are deposited in the small business investment 2.10tax credit administration account in the special revenue fund. The application for 2.11certification for 2010 must be made available on the department's Web site by August 1, 2.122010. Applications for subsequent years' certification must be made available on the 2.13department's Web site by November 1 of the preceding year. 2.14(b) Within 30 days of receiving an application for certification under this subdivision, 2.15the commissioner must either certify the business as satisfying the conditions required 2.16of a qualified small business or qualified greater Minnesota small business, request 2.17additional information from the business, or reject the application for certification. If 2.18the commissioner requests additional information from the business, the commissioner 2.19must either certify the business or reject the application within 30 days of receiving the 2.20additional information. If the commissioner neither certifies the business nor rejects 2.21the application within 30 days of receiving the original application or within 30 days of 2.22receiving the additional information requested, whichever is later, then the application is 2.23deemed rejected, and the commissioner must refund the $150 application fee. A business 2.24that applies for certification and is rejected may reapply. 2.25(c) To receive certification as a qualified small business, a business must satisfy 2.26all of the following conditions: 2.27(1) the business has its headquarters in Minnesota; 2.28(2) at least new text begin : (i) new text end 51 percent of the business's employees are employed in Minnesota, 2.29and new text begin ; (ii) new text end 51 percent of the business's total payroll is paid or incurred in the state new text begin ; and (iii) new text end 2.30 new text begin 51 percent of the total value of all contractual agreements to which the business is a party new text end 2.31 new text begin in connection with its primary business activity is for services performed under contract in new text end 2.32 new text begin Minnesota, unless the business obtains a waiver under paragraph (i) new text end ; 2.33(3) the business is engaged in, or is committed to engage in, innovation in Minnesota 2.34in one of the following as its primary business activity: 3.1(i) using proprietary technology to add value to a product, process, or service in a 3.2qualified high-technology field; 3.3(ii) researching or developing a proprietary product, process, or service in a qualified 3.4high-technology field; 3.5(iii) researching or developing a proprietary product, process, or service in the fields 3.6of agriculture, tourism, forestry, mining, manufacturing, or transportation; or 3.7(iv) researching, developing, or producing a new proprietary technology for use in 3.8the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation; 3.9(4) other than the activities specifically listed in clause (3), the business is not 3.10engaged in real estate development, insurance, banking, lending, lobbying, political 3.11consulting, information technology consulting, wholesale or retail trade, leisure, 3.12hospitality, transportation, construction, ethanol production from corn, or professional 3.13services provided by attorneys, accountants, business consultants, physicians, or health 3.14care consultants; 3.15(5) the business has fewer than 25 employees; 3.16(6) the business must pay its employees annual wages of at least 175 percent of the 3.17federal poverty guideline for the year for a family of four and must pay its interns annual 3.18wages of at least 175 percent of the federal minimum wage used for federally covered 3.19employers, except that this requirement must be reduced proportionately for employees 3.20and interns who work less than full-time, and does not apply to an executive, officer, or 3.21member of the board of the business, or to any employee who owns, controls, or holds 3.22power to vote more than 20 percent of the outstanding securities of the business; 3.23(7) the business has (i) not been in operation for more than ten years, or (ii) not 3.24been in operation for more than 20 years if the business is engaged in the research, 3.25development, or production of medical devices or pharmaceuticals for which United 3.26States Food and Drug Administration approval is required for use in the treatment or 3.27diagnosis of a disease or condition; 3.28(8) the business has not previously received private equity investments of more 3.29than $4,000,000; 3.30    (9) the business is not an entity disqualified under section 80A.50, paragraph (b), 3.31clause (3); and 3.32(10) the business has not issued securities that are traded on a public exchange. 3.33(d) In applying the limit under paragraph (c), clause (5), the employees in all members 3.34of the unitary business, as defined in section 290.17, subdivision 4, must be included. 3.35(e) In order for a qualified investment in a business to be eligible for tax credits: 4.1(1) the business must have applied for and received certification for the calendar 4.2year in which the investment was made prior to the date on which the qualified investment 4.3was made; 4.4(2) the business must not have issued securities that are traded on a public exchange; 4.5(3) the business must not issue securities that are traded on a public exchange within 4.6180 days after the date on which the qualified investment was made; and 4.7(4) the business must not have a liquidation event within 180 days after the date on 4.8which the qualified investment was made. 4.9(f) The commissioner must maintain a list of qualified small businesses and qualified 4.10greater Minnesota businesses certified under this subdivision for the calendar year and 4.11make the list accessible to the public on the department's Web site. 4.12(g) For purposes of this subdivision, the following terms have the meanings given: 4.13(1) "qualified high-technology field" includes aerospace, agricultural processing, 4.14renewable energy, energy efficiency and conservation, environmental engineering, food 4.15technology, cellulosic ethanol, information technology, materials science technology, 4.16nanotechnology, telecommunications, biotechnology, medical device products, 4.17pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields; 4.18(2) "proprietary technology" means the technical innovations that are unique and 4.19legally owned or licensed by a business and includes, without limitation, those innovations 4.20that are patented, patent pending, a subject of trade secrets, or copyrighted; and 4.21(3) "greater Minnesota" means the area of Minnesota located outside of the 4.22metropolitan area as defined in section 473.121, subdivision 2. 4.23(h) To receive certification as a qualified greater Minnesota business, a business must 4.24satisfy all of the requirements of paragraph (c) and must satisfy the following conditions: 4.25(1) the business has its headquarters in greater Minnesota; and 4.26(2) at least new text begin : (i) new text end 51 percent of the business's employees are employed in greater 4.27Minnesota, and new text begin ; (ii) new text end 51 percent of the business's total payroll is paid or incurred in greater 4.28Minnesota new text begin ; and (iii) 51 percent of the total value of all contractual agreements to which new text end 4.29 new text begin the business is a party in connection with its primary business activity is for services new text end 4.30 new text begin performed under contract in greater Minnesota, unless the business obtains a waiver new text end 4.31 new text begin under paragraph (i) new text end . 4.32 new text begin (i) The commissioner must exempt a business from the requirement under paragraph new text end 4.33 new text begin (c), clause (2), item (iii), if the business certifies to the commissioner that the services new text end 4.34 new text begin required under a contract in connection with the primary business activity cannot be new text end 4.35 new text begin performed in Minnesota if the business otherwise qualifies as a qualified small business, new text end 4.36 new text begin or in greater Minnesota if the business otherwise qualifies as a qualified greater Minnesota new text end 5.1 new text begin business. The business must submit the certification required under this paragraph every new text end 5.2 new text begin six months from the month the exemption was granted. The exemption allowed under this new text end 5.3 new text begin paragraph must be submitted in a form and manner prescribed by the commissioner. new text end 5.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 5.5 new text begin December 31, 2015. new text end 5.6    Sec. 2. new text begin [270C.22] TAX TIME SAVINGS GRANT PROGRAM. new text end 5.7     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 5.8 new text begin have the meanings given. new text end 5.9 new text begin (b) "Financial capability services" means any of the following: new text end 5.10 new text begin (1) assistance with opening a savings or transactional account that meets the Federal new text end 5.11 new text begin Deposit Insurance Corporation's model safe accounts template standards; new text end 5.12 new text begin (2) assistance with depositing all or part of a tax refund into a savings or transactional new text end 5.13 new text begin account; new text end 5.14 new text begin (3) assistance with obtaining and reviewing a consumer report or credit score, as new text end 5.15 new text begin those terms are defined in United States Code, title 15, section 1681a; new text end 5.16 new text begin (4) assistance with obtaining and reviewing a banking history report; new text end 5.17 new text begin (5) financial coaching, or referral to financial coaching services, as provided in new text end 5.18 new text begin section 256E.35, subdivision 4a; new text end 5.19 new text begin (6) National Foundation for Credit Counseling certified consumer credit and debt new text end 5.20 new text begin counseling or referral to these services; new text end 5.21 new text begin (7) enrollment in a matched or incentivized savings program, including the provision new text end 5.22 new text begin of matching or incentive funds; new text end 5.23 new text begin (8) assistance with purchasing federal retirement savings bonds, as described in new text end 5.24 new text begin Code of Federal Regulations, title 31, part 347, or referral to a certified financial planner, new text end 5.25 new text begin registered investment adviser, licensed insurance producer or agent, or a registered new text end 5.26 new text begin securities broker-dealer representative for private sector retirement options; or new text end 5.27 new text begin (9) assistance with purchasing a Series I United States Savings Bond with all or new text end 5.28 new text begin part of a tax refund. new text end 5.29 new text begin (c) "Transactional account" means a traditional demand deposit account or a general new text end 5.30 new text begin purpose reloadable prepaid card offered by a bank or credit union. new text end 5.31 new text begin (d) "TCE" means the Tax Counseling for the Elderly program established by the new text end 5.32 new text begin Internal Revenue Service. new text end 5.33 new text begin (e) "VITA" means the Volunteer Income Tax Assistance program established by the new text end 5.34 new text begin Internal Revenue Service. new text end 6.1     new text begin Subd. 2. new text end new text begin Creation. new text end new text begin The commissioner of revenue shall establish a tax time new text end 6.2 new text begin savings grant program to make grants to one or more nonprofit organizations to fund the new text end 6.3 new text begin integration of financial capability services into the delivery of taxpayer assistance services new text end 6.4 new text begin funded by grants under section 270C.21. new text end 6.5     new text begin Subd. 3. new text end new text begin Qualified applicant. new text end new text begin To be eligible to receive a grant under the tax time new text end 6.6 new text begin savings grant program, an applicant must: new text end 6.7 new text begin (1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered new text end 6.8 new text begin with the Internal Revenue Service as part of either the VITA or TCE programs; and new text end 6.9 new text begin (2) commit to dedicate at least one staff or volunteer position to coordinate financial new text end 6.10 new text begin capability services at a VITA or TCE program site and to offer VITA or TCE program new text end 6.11 new text begin participants free assistance with the initiation through completion of: new text end 6.12 new text begin (i) opening a savings and a transactional account that meet the Federal Deposit new text end 6.13 new text begin Insurance Corporation's model safe accounts template standards; new text end 6.14 new text begin (ii) depositing all or part of a tax refund into a savings or transactional account; and new text end 6.15 new text begin (iii) purchasing a Series I United States Savings Bond with all or part of a tax refund. new text end 6.16     new text begin Subd. 4. new text end new text begin Conflict of interest. new text end new text begin (a) No applicant may receive direct compensation new text end 6.17 new text begin from a bank, credit union, other financial services provider, or vendor in exchange for the new text end 6.18 new text begin applicant offering to program participants the products or services of that bank, credit new text end 6.19 new text begin union, other financial services provider, or vendor. new text end 6.20 new text begin (b) No applicant may receive funding from a bank, credit union, other financial new text end 6.21 new text begin services provider, or vendor that is contingent on the applicant offering products or new text end 6.22 new text begin services of that bank, credit union, other financial services provider, or vendor to program new text end 6.23 new text begin participants. new text end 6.24 new text begin (c) An applicant may receive funding from a bank, credit union, other financial new text end 6.25 new text begin services provider, or vendor that is not in exchange for or contingent upon the applicant new text end 6.26 new text begin offering products or services of that bank, credit union, other financial services provider, new text end 6.27 new text begin or vendor to program participants. new text end 6.28     new text begin Subd. 5. new text end new text begin Permitted use of grant funds. new text end new text begin (a) A grant recipient may use grant funds new text end 6.29 new text begin to dedicate a staff or volunteer position to coordinate financial capability services at a new text end 6.30 new text begin VITA or TCE site and to offer VITA or TCE program participants free assistance with the new text end 6.31 new text begin initiation through completion of: new text end 6.32 new text begin (1) opening a savings and a transactional account that meet the Federal Deposit new text end 6.33 new text begin Insurance Corporation's model safe accounts template standards; new text end 6.34 new text begin (2) depositing all or part of a tax refund into a savings or transactional account; and new text end 6.35 new text begin (3) purchasing a Series I United States Savings Bond with all or part of a tax refund. new text end 7.1 new text begin (b) A grant recipient who offers all of the financial capability services enumerated new text end 7.2 new text begin in paragraph (a) may also use grant funds to provide one or more additional financial new text end 7.3 new text begin capability services to VITA or TCE program participants at no cost to the participant. new text end 7.4    Sec. 3. Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is 7.5amended to read: 7.6    Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal 7.7Revenue Code" means the Internal Revenue Code of 1986, as amended through December 7.831, 2014 new text begin 2015 new text end . 7.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 7.10    Sec. 4. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is 7.11amended to read: 7.12    Subd. 19. Net income. The term "net income" means the federal taxable income, 7.13as defined in section 63 of the Internal Revenue Code of 1986, as amended through the 7.14date named in this subdivision, incorporating the federal effective dates of changes to the 7.15Internal Revenue Code and any elections made by the taxpayer in accordance with the 7.16Internal Revenue Code in determining federal taxable income for federal income tax 7.17purposes, and with the modifications provided in subdivisions 19a to 19f. 7.18    In the case of a regulated investment company or a fund thereof, as defined in section 7.19851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 7.20company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 7.21except that: 7.22    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 7.23Revenue Code does not apply; 7.24    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 7.25Revenue Code must be applied by allowing a deduction for capital gain dividends and 7.26exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal 7.27Revenue Code; and 7.28    (3) the deduction for dividends paid must also be applied in the amount of any 7.29undistributed capital gains which the regulated investment company elects to have treated 7.30as provided in section 852(b)(3)(D) of the Internal Revenue Code. 7.31    The net income of a real estate investment trust as defined and limited by section 7.32856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 7.33taxable income as defined in section 857(b)(2) of the Internal Revenue Code. 8.1    The net income of a designated settlement fund as defined in section 468B(d) of 8.2the Internal Revenue Code means the gross income as defined in section 468B(b) of the 8.3Internal Revenue Code. 8.4    The Internal Revenue Code of 1986, as amended through December 31, 2014 new text begin 2015 new text end , 8.5shall be in effect for taxable years beginning after December 31, 1996. 8.6    Except as otherwise provided, references to the Internal Revenue Code in 8.7subdivisions 19 to 19f mean the code in effect for purposes of determining net income for 8.8the applicable year. 8.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 8.10 new text begin except the changes incorporated by federal changes are effective retroactively at the same new text end 8.11 new text begin time as the changes were effective for federal purposes. new text end 8.12    Sec. 5. Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read: 8.13    Subd. 19a. Additions to federal taxable income. For individuals, estates, and 8.14trusts, there shall be added to federal taxable income: 8.15    (1)(i) interest income on obligations of any state other than Minnesota or a political 8.16or governmental subdivision, municipality, or governmental agency or instrumentality 8.17of any state other than Minnesota exempt from federal income taxes under the Internal 8.18Revenue Code or any other federal statute; and 8.19    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue 8.20Code, except: 8.21(A) the portion of the exempt-interest dividends exempt from state taxation under 8.22the laws of the United States; and 8.23(B) the portion of the exempt-interest dividends derived from interest income 8.24on obligations of the state of Minnesota or its political or governmental subdivisions, 8.25municipalities, governmental agencies or instrumentalities, but only if the portion of the 8.26exempt-interest dividends from such Minnesota sources paid to all shareholders represents 8.2795 percent or more of the exempt-interest dividends, including any dividends exempt 8.28under subitem (A), that are paid by the regulated investment company as defined in section 8.29851(a) of the Internal Revenue Code, or the fund of the regulated investment company as 8.30defined in section 851(g) of the Internal Revenue Code, making the payment; and 8.31    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal 8.32government described in section 7871(c) of the Internal Revenue Code shall be treated as 8.33interest income on obligations of the state in which the tribe is located; 8.34    (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or 8.35accrued within the taxable year under this chapter and the amount of taxes based on net 9.1income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or 9.2to any province or territory of Canada, to the extent allowed as a deduction under section 9.363(d) of the Internal Revenue Code, but the addition may not be more than the amount 9.4by which the state itemized deduction exceeds the amount of the standard deduction as 9.5defined in section 63(c) of the Internal Revenue Code, minus any addition that would have 9.6been required under clause (17) if the taxpayer had claimed the standard deduction. For 9.7the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are 9.8the last itemized deductions disallowed under clause (15); 9.9    (3) the capital gain amount of a lump-sum distribution to which the special tax under 9.10section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies; 9.11    (4) the amount of income taxes paid or accrued within the taxable year under this 9.12chapter and taxes based on net income paid to any other state or any province or territory 9.13of Canada, to the extent allowed as a deduction in determining federal adjusted gross 9.14income. For the purpose of this paragraph, income taxes do not include the taxes imposed 9.15by sections 290.0922, subdivision 1, paragraph (b), 290.9727, 290.9728, and 290.9729; 9.16    (5) the amount of expense, interest, or taxes disallowed pursuant to section 290.10 9.17other than expenses or interest used in computing net interest income for the subtraction 9.18allowed under subdivision 19b, clause (1); 9.19    (6) the amount of a partner's pro rata share of net income which does not flow 9.20through to the partner because the partnership elected to pay the tax on the income under 9.21section 6242(a)(2) of the Internal Revenue Code; 9.22    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the 9.23Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that 9.24in the taxable year generates a deduction for depreciation under section 168(k) and the 9.25activity generates a loss for the taxable year that the taxpayer is not allowed to claim for 9.26the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is 9.27limited to excess of the depreciation claimed by the activity under section 168(k) over the 9.28amount of the loss from the activity that is not allowed in the taxable year. In succeeding 9.29taxable years when the losses not allowed in the taxable year are allowed, the depreciation 9.30under section 168(k) is allowed; 9.31    (8) 80 percent of the amount by which the deduction allowed by section 179 of the 9.32Internal Revenue Code exceeds the deduction allowable by new text begin under the dollar limits of new text end 9.33section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003; 9.34    (9) to the extent deducted in computing federal taxable income, the amount of the 9.35deduction allowable under section 199 of the Internal Revenue Code; 9.36    (10) the amount of expenses disallowed under section 290.10, subdivision 2; 10.1    (11) for taxable years beginning before January 1, 2010, the amount deducted for 10.2qualified tuition and related expenses under section 222 of the Internal Revenue Code, to 10.3the extent deducted from gross income; 10.4    (12) for taxable years beginning before January 1, 2010, the amount deducted for 10.5certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) 10.6of the Internal Revenue Code, to the extent deducted from gross income; 10.7(13) discharge of indebtedness income resulting from reacquisition of business 10.8indebtedness and deferred under section 108(i) of the Internal Revenue Code; 10.9(14) changes to federal taxable income attributable to a net operating loss that the 10.10taxpayer elected to carry back for more than two years for federal purposes but for which 10.11the losses can be carried back for only two years under section 290.095, subdivision 10.1211 , paragraph (c); 10.13(15) the amount of disallowed itemized deductions, but the amount of disallowed 10.14itemized deductions plus the addition required under clause (2) may not be more than the 10.15amount by which the itemized deductions as allowed under section 63(d) of the Internal 10.16Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of 10.17the Internal Revenue Code, and reduced by any addition that would have been required 10.18under clause (17) if the taxpayer had claimed the standard deduction: 10.19(i) the amount of disallowed itemized deductions is equal to the lesser of: 10.20(A) three percent of the excess of the taxpayer's federal adjusted gross income 10.21over the applicable amount; or 10.22(B) 80 percent of the amount of the itemized deductions otherwise allowable to the 10.23taxpayer under the Internal Revenue Code for the taxable year; 10.24(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a 10.25married individual filing a separate return. Each dollar amount shall be increased by 10.26an amount equal to: 10.27(A) such dollar amount, multiplied by 10.28(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal 10.29Revenue Code for the calendar year in which the taxable year begins, by substituting 10.30"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; 10.31(iii) the term "itemized deductions" does not include: 10.32(A) the deduction for medical expenses under section 213 of the Internal Revenue 10.33Code; 10.34(B) any deduction for investment interest as defined in section 163(d) of the Internal 10.35Revenue Code; and 11.1(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or 11.2theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue 11.3Code or for losses described in section 165(d) of the Internal Revenue Code; 11.4(16) the amount of disallowed personal exemptions for taxpayers with federal 11.5adjusted gross income over the threshold amount: 11.6(i) the disallowed personal exemption amount is equal to the number of personal 11.7exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied 11.8by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the 11.9Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal 11.10Revenue Code, and by the applicable percentage; 11.11(ii) "applicable percentage" means two percentage points for each $2,500 (or 11.12fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable 11.13year exceeds the threshold amount. In the case of a married individual filing a separate 11.14return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In 11.15no event shall the applicable percentage exceed 100 percent; 11.16(iii) the term "threshold amount" means: 11.17(A) $150,000 in the case of a joint return or a surviving spouse; 11.18(B) $125,000 in the case of a head of a household; 11.19(C) $100,000 in the case of an individual who is not married and who is not a 11.20surviving spouse or head of a household; and 11.21(D) $75,000 in the case of a married individual filing a separate return; and 11.22(iv) the thresholds shall be increased by an amount equal to: 11.23(A) such dollar amount, multiplied by 11.24(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal 11.25Revenue Code for the calendar year in which the taxable year begins, by substituting 11.26"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and 11.27(17) to the extent deducted in the computation of federal taxable income, for taxable 11.28years beginning after December 31, 2010, and before January 1, 2014, the difference 11.29between the standard deduction allowed under section 63(c) of the Internal Revenue Code 11.30and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue 11.31Code as amended through December 1, 2010 new text begin ; and new text end 11.32 new text begin (18) to the extent deducted in the computation of federal taxable income, the amount new text end 11.33 new text begin of charitable contributions under section 170 of the Internal Revenue Code used to claim new text end 11.34 new text begin the credit under section 290.06, subdivision 37 new text end . 11.35 new text begin EFFECTIVE DATE. new text end new text begin The change to clause (8) is effective the day following final new text end 11.36 new text begin enactment, except the changes incorporated by federal changes are effective retroactively new text end 12.1 new text begin at the same time as the changes were effective for federal purposes. Clause (18) is new text end 12.2 new text begin effective for taxable years beginning after December 31, 2015. new text end 12.3    Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read: 12.4    Subd. 19b. Subtractions from federal taxable income. For individuals, estates, 12.5and trusts, there shall be subtracted from federal taxable income: 12.6    (1) net interest income on obligations of any authority, commission, or 12.7instrumentality of the United States to the extent includable in taxable income for federal 12.8income tax purposes but exempt from state income tax under the laws of the United States; 12.9    (2) if included in federal taxable income, the amount of any overpayment of income 12.10tax to Minnesota or to any other state, for any previous taxable year, whether the amount 12.11is received as a refund or as a credit to another taxable year's income tax liability; 12.12    (3) the amount paid to others, less the amount used to claim the credit allowed under 12.13section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 12.14to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 12.15transportation of each qualifying child in attending an elementary or secondary school 12.16situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 12.17resident of this state may legally fulfill the state's compulsory attendance laws, which 12.18is not operated for profit, and which adheres to the provisions of the Civil Rights Act 12.19of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 12.20tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 12.21"textbooks" includes books and other instructional materials and equipment purchased 12.22or leased for use in elementary and secondary schools in teaching only those subjects 12.23legally and commonly taught in public elementary and secondary schools in this state. 12.24Equipment expenses qualifying for deduction includes expenses as defined and limited in 12.25section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 12.26books and materials used in the teaching of religious tenets, doctrines, or worship, the 12.27purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 12.28or materials for, or transportation to, extracurricular activities including sporting events, 12.29musical or dramatic events, speech activities, driver's education, or similar programs. No 12.30deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 12.31the qualifying child's vehicle to provide such transportation for a qualifying child. For 12.32purposes of the subtraction provided by this clause, "qualifying child" has the meaning 12.33given in section 32(c)(3) of the Internal Revenue Code; 12.34    (4) income as provided under section 290.0802; 13.1    (5) to the extent included in federal adjusted gross income, income realized on 13.2disposition of property exempt from tax under section 290.491; 13.3    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 13.4of the Internal Revenue Code in determining federal taxable income by an individual 13.5who does not itemize deductions for federal income tax purposes for the taxable year, an 13.6amount equal to 50 percent of the excess of charitable contributions over $500 allowable 13.7as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, 13.8under the provisions of Public Law 109-1 and Public Law 111-126; 13.9    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not 13.10qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 13.11of subnational foreign taxes for the taxable year, but not to exceed the total subnational 13.12foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 13.13"federal foreign tax credit" means the credit allowed under section 27 of the Internal 13.14Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 13.15under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 13.16the extent they exceed the federal foreign tax credit; 13.17    (8) in each of the five tax years immediately following the tax year in which an 13.18addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a 13.19shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 13.20delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount 13.21of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, 13.22clause (12), in the case of a shareholder of an S corporation, minus the positive value of 13.23any net operating loss under section 172 of the Internal Revenue Code generated for the 13.24tax year of the addition. The resulting delayed depreciation cannot be less than zero; 13.25    (9) job opportunity building zone income as provided under section 469.316; 13.26    (10) to the extent included in federal taxable income, the amount of compensation 13.27paid to members of the Minnesota National Guard or other reserve components of the 13.28United States military for active service, including compensation for services performed 13.29under the Active Guard Reserve (AGR) program. For purposes of this clause, "active 13.30service" means (i) state active service as defined in section 190.05, subdivision 5a, clause 13.31(1); or (ii) federally funded state active service as defined in section 190.05, subdivision 13.325b , and "active service" includes service performed in accordance with section 190.08, 13.33subdivision 3 ; 13.34    (11) to the extent included in federal taxable income, the amount of compensation 13.35paid to Minnesota residents who are members of the armed forces of the United States 14.1or United Nations for active duty performed under United States Code, title 10; or the 14.2authority of the United Nations; 14.3    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a 14.4qualified donor's donation, while living, of one or more of the qualified donor's organs 14.5to another person for human organ transplantation. For purposes of this clause, "organ" 14.6means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 14.7"human organ transplantation" means the medical procedure by which transfer of a human 14.8organ is made from the body of one person to the body of another person; "qualified 14.9expenses" means unreimbursed expenses for both the individual and the qualified donor 14.10for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 14.11may be subtracted under this clause only once; and "qualified donor" means the individual 14.12or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 14.13individual may claim the subtraction in this clause for each instance of organ donation for 14.14transplantation during the taxable year in which the qualified expenses occur; 14.15    (13) in each of the five tax years immediately following the tax year in which an 14.16addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a 14.17shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 14.18addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the 14.19case of a shareholder of a corporation that is an S corporation, minus the positive value of 14.20any net operating loss under section 172 of the Internal Revenue Code generated for the 14.21tax year of the addition. If the net operating loss exceeds the addition for the tax year, a 14.22subtraction is not allowed under this clause; 14.23    (14) to the extent included in the federal taxable income of a nonresident of 14.24Minnesota, compensation paid to a service member as defined in United States Code, title 14.2510, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief 14.26Act, Public Law 108-189, section 101(2); 14.27    (15) to the extent included in federal taxable income, the amount of national service 14.28educational awards received from the National Service Trust under United States Code, 14.29title 42, sections 12601 to 12604, for service in an approved Americorps National Service 14.30program; 14.31(16) to the extent included in federal taxable income, discharge of indebtedness 14.32income resulting from reacquisition of business indebtedness included in federal taxable 14.33income under section 108(i) of the Internal Revenue Code. This subtraction applies only 14.34to the extent that the income was included in net income in a prior year as a result of the 14.35addition under subdivision 19a, clause (13); 15.1(17) the amount of the net operating loss allowed under section 290.095, subdivision 15.211 , paragraph (c); 15.3(18) the amount of expenses not allowed for federal income tax purposes due 15.4to claiming the railroad track maintenance credit under section 45G(a) of the Internal 15.5Revenue Code; 15.6(19) the amount of the limitation on itemized deductions under section 68(b) of 15.7the Internal Revenue Code; new text begin and new text end 15.8(20) the amount of the phaseout of personal exemptions under section 151(d) of 15.9the Internal Revenue Code; and new text begin . new text end 15.10(21) to the extent included in federal taxable income, the amount of qualified 15.11transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal 15.12Revenue Code. The subtraction is limited to the lesser of the amount of qualified 15.13transportation fringe benefits received in excess of the limitations under section 15.14132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the 15.15maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal 15.16Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) 15.17of the Internal Revenue Code. 15.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 15.19 new text begin except the changes incorporated by federal changes are effective retroactively at the same new text end 15.20 new text begin time as the changes were effective for federal purposes. new text end 15.21    Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read: 15.22    Subd. 19c. Corporations; additions to federal taxable income. For corporations, 15.23there shall be added to federal taxable income: 15.24    (1) the amount of any deduction taken for federal income tax purposes for income, 15.25excise, or franchise taxes based on net income or related minimum taxes, including but not 15.26limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, 15.27another state, a political subdivision of another state, the District of Columbia, or any 15.28foreign country or possession of the United States; 15.29    (2) interest not subject to federal tax upon obligations of: the United States, its 15.30possessions, its agencies, or its instrumentalities; the state of Minnesota or any other 15.31state, any of its political or governmental subdivisions, any of its municipalities, or any 15.32of its governmental agencies or instrumentalities; the District of Columbia; or Indian 15.33tribal governments; 15.34    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal 15.35Revenue Code; 16.1    (4) the amount of any net operating loss deduction taken for federal income tax 16.2purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss 16.3deduction under section 810 of the Internal Revenue Code; 16.4    (5) the amount of any special deductions taken for federal income tax purposes 16.5under sections 241 to 247 and 965 of the Internal Revenue Code; 16.6    (6) losses from the business of mining, as defined in section 290.05, subdivision 1, 16.7clause (a), that are not subject to Minnesota income tax; 16.8    (7) the amount of any capital losses deducted for federal income tax purposes under 16.9sections 1211 and 1212 of the Internal Revenue Code; 16.10    (8) the amount of percentage depletion deducted under sections 611 through 614 and 16.11291 of the Internal Revenue Code; 16.12    (9) for certified pollution control facilities placed in service in a taxable year 16.13beginning before December 31, 1986, and for which amortization deductions were elected 16.14under section 169 of the Internal Revenue Code of 1954, as amended through December 16.1531, 1985, the amount of the amortization deduction allowed in computing federal taxable 16.16income for those facilities; 16.17    (10) the amount of a partner's pro rata share of net income which does not flow 16.18through to the partner because the partnership elected to pay the tax on the income under 16.19section 6242(a)(2) of the Internal Revenue Code; 16.20    (11) any increase in subpart F income, as defined in section 952(a) of the Internal 16.21Revenue Code, for the taxable year when subpart F income is calculated without regard to 16.22the provisions of Division C, title III, section 303(b) of Public Law 110-343; 16.23    (12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) 16.24and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer 16.25has an activity that in the taxable year generates a deduction for depreciation under 16.26section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year 16.27that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed 16.28under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the 16.29depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the 16.30amount of the loss from the activity that is not allowed in the taxable year. In succeeding 16.31taxable years when the losses not allowed in the taxable year are allowed, the depreciation 16.32under section 168(k)(1)(A) and (k)(4)(A) is allowed; 16.33    (13) 80 percent of the amount by which the deduction allowed by section 179 of 16.34the Internal Revenue Code exceeds the deduction allowable by new text begin under the dollar limits of new text end 16.35section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003; 17.1    (14) to the extent deducted in computing federal taxable income, the amount of the 17.2deduction allowable under section 199 of the Internal Revenue Code; 17.3    (15) the amount of expenses disallowed under section 290.10, subdivision 2; and 17.4(16) discharge of indebtedness income resulting from reacquisition of business 17.5indebtedness and deferred under section 108(i) of the Internal Revenue Code new text begin ; and new text end 17.6 new text begin (17) to the extent deducted in the computation of federal taxable income, the amount new text end 17.7 new text begin of charitable contributions under section 170 of the Internal Revenue Code used to claim new text end 17.8 new text begin the credit under section 290.06, subdivision 37 new text end . 17.9 new text begin EFFECTIVE DATE. new text end new text begin The change to clause (13) is effective the day following final new text end 17.10 new text begin enactment, except the changes incorporated by federal changes are effective retroactively new text end 17.11 new text begin at the same time as the changes were effective for federal purposes. Clause (17) is new text end 17.12 new text begin effective for taxable years beginning after December 31, 2015. new text end 17.13    Sec. 8. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is 17.14amended to read: 17.15    Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal 17.16Revenue Code" means the Internal Revenue Code of 1986, as amended through December 17.1731, 2014 new text begin 2015 new text end . Internal Revenue Code also includes any uncodified provision in federal 17.18law that relates to provisions of the Internal Revenue Code that are incorporated into 17.19Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, 17.20subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as 17.21amended through March 18, 2010. 17.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment, new text end 17.23 new text begin except the changes incorporated by federal changes are effective retroactively at the same new text end 17.24 new text begin time as the changes were effective for federal purposes. new text end 17.25    Sec. 9. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision 17.26to read: 17.27     new text begin Subd. 37. new text end new text begin Prepared food donation credit. new text end new text begin (a) A qualifying taxpayer is allowed a new text end 17.28 new text begin credit against the tax imposed by this chapter equal to 20 percent of the taxpayer's eligible new text end 17.29 new text begin charitable food donation. The credit may not exceed the taxpayer's liability for tax and new text end 17.30 new text begin may not be carried forward to any other taxable year. new text end 17.31 new text begin (b) For purposes of this subdivision, the following terms have the meanings given: new text end 17.32 new text begin (1) "eligible charitable food donation" means a contribution of prepared food new text end 17.33 new text begin allowable as a charitable deduction for the taxable year under section 170(a) of the Internal new text end 18.1 new text begin Revenue Code, subject to the limitations of section 170(b) of the Internal Revenue Code, new text end 18.2 new text begin and determined without regard to whether or not the taxpayer itemizes deductions; new text end 18.3 new text begin (2) "prepared food" means food that meets all quality and labeling standards new text end 18.4 new text begin imposed by federal, state, and local laws and regulations even though the food may not new text end 18.5 new text begin be readily marketable due to appearance, age, freshness, grade, size, surplus, or other new text end 18.6 new text begin conditions, and includes: new text end 18.7 new text begin (i) food which is cooked or heated by the qualifying taxpayer; new text end 18.8 new text begin (ii) two or more ingredients mixed together to be eaten as a single item; and new text end 18.9 new text begin (iii) any ingredients supplied for ingestion or chewing by humans that are consumed new text end 18.10 new text begin for their taste or nutritional value; new text end 18.11 new text begin (3) "qualifying taxpayer" means any restaurant making a charitable food donation new text end 18.12 new text begin in Minnesota; and new text end 18.13 new text begin (4) "restaurant" means any facility: new text end 18.14 new text begin (i) which is operated for profit; new text end 18.15 new text begin (ii) where the usual and customary business is the serving of meals to consumers; new text end 18.16 new text begin (iii) which has a kitchen within the facility; and new text end 18.17 new text begin (iv) which receives at least 70 percent of its gross receipts from the sale of prepared new text end 18.18 new text begin food. new text end 18.19 new text begin (c) For a nonresident or part-year resident, the credit must be allocated based on the new text end 18.20 new text begin percentage calculated under subdivision 2c, paragraph (e). new text end 18.21 new text begin (d) Credits allowed to a partnership, a limited liability company taxed as a new text end 18.22 new text begin partnership, an S corporation, or multiple owners of property are passed through to the new text end 18.23 new text begin partners, members, shareholders, or owners, respectively, pro rata to each partner, member, new text end 18.24 new text begin shareholder, or owner based on their share of the entity's income for the taxable year. new text end 18.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 18.26 new text begin December 31, 2015. new text end 18.27    Sec. 10. Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1, 18.28is amended to read: 18.29    Subdivision 1. Credit allowed. (a) An individual who is a resident of Minnesota is 18.30allowed a credit against the tax imposed by this chapter equal to a percentage of earned 18.31income. To receive a credit, a taxpayer must be eligible for a credit under section 32 18.32of the Internal Revenue Code new text begin without regard to the earned income or adjusted gross new text end 18.33 new text begin income limitations new text end . 18.34(b) For individuals with no qualifying children, the credit equals 2.10 new text begin 3.0 new text end percent 18.35of the first $6,180 new text begin $6,500 new text end of earned income. The credit is reduced by 2.01 new text begin 3.0 new text end percent 19.1of earned income or adjusted gross income, whichever is greater, in excess of $8,130 19.2 new text begin $12,000 new text end , but in no case is the credit less than zero. new text begin For individuals qualifying under new text end 19.3 new text begin this paragraph, the taxpayer must have been at least 21 years of age, but under 65 years new text end 19.4 new text begin of age, at the end of the tax year. new text end 19.5(c) For individuals with one qualifying child, the credit equals 9.35 new text begin 12.71 new text end percent 19.6of the first $11,120 new text begin $8,350 new text end of earned income. The credit is reduced by 6.02 new text begin 5.2 new text end percent 19.7of earned income or adjusted gross income, whichever is greater, in excess of $21,190 19.8 new text begin $21,620 new text end , but in no case is the credit less than zero. 19.9(d) For individuals with two or more qualifying children, the credit equals 11 new text begin 14.94 new text end 19.10percent of the first $18,240 new text begin $13,700 new text end of earned income. The credit is reduced by 10.82 19.11 new text begin 9.2 new text end percent of earned income or adjusted gross income, whichever is greater, in excess of 19.12$25,130 new text begin $25,640 new text end , but in no case is the credit less than zero. 19.13(e) For a part-year resident, the credit must be allocated based on the percentage 19.14calculated under section 290.06, subdivision 2c, paragraph (e). 19.15(f) For a person who was a resident for the entire tax year and has earned income 19.16not subject to tax under this chapter, including income excluded under section 290.01, 19.17subdivision 19b , clause (9), the credit must be allocated based on the ratio of federal 19.18adjusted gross income reduced by the earned income not subject to tax under this chapter 19.19over federal adjusted gross income. For purposes of this paragraph, the subtractions 19.20for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not 19.21considered "earned income not subject to tax under this chapter." 19.22For the purposes of this paragraph, the exclusion of combat pay under section 112 19.23of the Internal Revenue Code is not considered "earned income not subject to tax under 19.24this chapter." 19.25(g) For tax years beginning after December 31, 2007, and before December 31, 19.262010, and for tax years beginning after December 31, 2017, the $8,130 in paragraph (b), 19.27the $21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for 19.28inflation under subdivision 7, are each increased by $3,000 for married taxpayers filing joint 19.29returns. For tax years beginning after December 31, 2008, the commissioner shall annually 19.30adjust the $3,000 by the percentage determined pursuant to the provisions of section 1(f) 19.31of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall be 19.32substituted for the word "1992." For 2009, the commissioner shall then determine the 19.33percent change from the 12 months ending on August 31, 2007, to the 12 months ending on 19.34August 31, 2008, and in each subsequent year, from the 12 months ending on August 31, 19.352007, to the 12 months ending on August 31 of the year preceding the taxable year. The 19.36earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the 20.1amount ends in $5, the amount is rounded up to the nearest $10. The determination of the 20.2commissioner under this subdivision is not a rule under the Administrative Procedure Act. 20.3(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014, 20.4the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph 20.5(d), after being adjusted for inflation under subdivision 7, are increased by $5,340 for 20.6married taxpayers filing joint returns; and (2) For tax years beginning after December 31, 20.72013 new text begin 2015 new text end , and before January 1, 2018, the $8,130 new text begin $12,000 new text end in paragraph (b), the $21,190 20.8 new text begin $21,620 new text end in paragraph (c), and the $25,130 new text begin $25,640 new text end in paragraph (d), after being adjusted for 20.9inflation under subdivision 7, are each increased by $5,000 new text begin $5,550 new text end for married taxpayers 20.10filing joint returns. For tax years beginning after December 31, 2010, and before January 20.111, 2012, and for tax years beginning after December 31, 2013 new text begin 2016 new text end , and before January 20.121, 2018, the commissioner shall annually adjust the $5,000 new text begin $5,550 new text end by the percentage 20.13determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except 20.14that in section 1(f)(3)(B), the word "2008" new text begin "2015" new text end shall be substituted for the word "1992." 20.15For 2011 new text begin 2017 new text end , the commissioner shall then determine the percent change from the 12 20.16months ending on August 31, 2008 new text begin 2015 new text end , to the 12 months ending on August 31, 2010 20.17 new text begin 2016 new text end , and in each subsequent year, from the 12 months ending on August 31, 2008 new text begin 2015 new text end , 20.18to the 12 months ending on August 31 of the year preceding the taxable year. The earned 20.19income thresholds as adjusted for inflation must be rounded to the nearest $10. If the 20.20amount ends in $5, the amount is rounded up to the nearest $10. The determination of the 20.21commissioner under this subdivision is not a rule under the Administrative Procedure Act. 20.22(i) The commissioner shall construct tables showing the amount of the credit at 20.23various income levels and make them available to taxpayers. The tables shall follow 20.24the schedule contained in this subdivision, except that the commissioner may graduate 20.25the transition between income brackets. 20.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for tax years beginning after new text end 20.27 new text begin December 31, 2015. new text end 20.28    Sec. 11. new text begin [290.0693] CITIZENSHIP CREDIT. new text end 20.29     new text begin Subdivision 1. new text end new text begin Credit allowed. new text end new text begin An individual is allowed a credit against the tax new text end 20.30 new text begin imposed by this chapter equal to qualified citizenship expenses paid for a qualified citizen new text end 20.31 new text begin applicant. The maximum credit per qualified citizen applicant is $700. new text end 20.32     new text begin Subd. 2. new text end new text begin Limitations on credit. new text end new text begin (a) The credit is not allowed if the sum of an new text end 20.33 new text begin individual's income and the individual's spouse's income exceeds 200 percent of the new text end 20.34 new text begin federal poverty guideline. new text end 21.1 new text begin (b) For an individual who is not a Minnesota resident for the entire year, the credit new text end 21.2 new text begin must be apportioned using the percentage calculated in section 290.06, subdivision 2c, new text end 21.3 new text begin paragraph (e). new text end 21.4 new text begin (c) The credit is not allowed to an individual who is eligible to be claimed as a new text end 21.5 new text begin dependent. new text end 21.6 new text begin (d) The credit is not allowed for a qualified citizenship applicant who qualifies for a new text end 21.7 new text begin federal waiver of qualified citizenship expenses. new text end 21.8     new text begin Subd. 3. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have new text end 21.9 new text begin the meanings given. new text end 21.10 new text begin (b) "Dependent" has the meaning given in sections 151 and 152 of the Internal new text end 21.11 new text begin Revenue Code. new text end 21.12 new text begin (c) "Federal poverty guideline" means the guideline most recently published in the new text end 21.13 new text begin Federal Register, adjusted for family size. new text end 21.14 new text begin (d) "Income" has the meaning given in section 290.067, subdivision 2a. new text end 21.15 new text begin (e) "Qualified citizenship expenses" means filing fees, including both application and new text end 21.16 new text begin biometric fingerprint fees, paid to the United States Citizenship and Immigration Services new text end 21.17 new text begin in connection with an N-400 naturalization application for a qualified citizenship applicant. new text end 21.18 new text begin (f) "Qualified citizenship applicant" means the individual, the individual's spouse, new text end 21.19 new text begin or a dependent of the individual. new text end 21.20     new text begin Subd. 4. new text end new text begin Credit refundable. new text end new text begin If the amount of credit that the claimant is eligible to new text end 21.21 new text begin receive under this section exceeds the claimant's liability for tax under this chapter, the new text end 21.22 new text begin commissioner of revenue shall refund the excess to the claimant. new text end 21.23     new text begin Subd. 5. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay the refunds required by this new text end 21.24 new text begin section is appropriated from the general fund to the commissioner of revenue. new text end 21.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 21.26 new text begin December 31, 2015. new text end 21.27    Sec. 12. new text begin [290.0694] CREDIT FOR NAMELESS JOB APPLICATION REVIEW new text end 21.28 new text begin PROCESS IMPLEMENTATION. new text end 21.29     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following definitions new text end 21.30 new text begin apply. new text end 21.31 new text begin (b) "Nameless job application review process" means a system or process that: new text end 21.32 new text begin (1) removes the name of job applicants prior to review of the applicant's application new text end 21.33 new text begin or request for interview, whether submitted in writing or online; and new text end 22.1 new text begin (2) prevents any person reviewing job applications or requests for interview from new text end 22.2 new text begin knowing the name of the applicant prior to or during review of the applicant's job new text end 22.3 new text begin application or request for interview. new text end 22.4 new text begin (c) "Qualified employer" means an employer that maintains a nameless job new text end 22.5 new text begin application review process registered with the commissioner of human rights under new text end 22.6 new text begin subdivision 3. new text end 22.7     new text begin Subd. 2. new text end new text begin Credit allowed. new text end new text begin (a) A qualified employer who is required to file a return new text end 22.8 new text begin under section 289A.08, subdivision 1, 2, or 3, is allowed a credit against the tax due new text end 22.9 new text begin under this chapter equal to $100 per employee employed in Minnesota, up to $40,000 per new text end 22.10 new text begin taxable year. The number of employees equals the average number of full-time equivalent new text end 22.11 new text begin employees employed by the qualified employer in the 12 months immediately preceding new text end 22.12 new text begin registration with the commissioner of human rights. new text end 22.13 new text begin (b) For a nonresident or part-year resident, the credit must be allocated based on the new text end 22.14 new text begin percentage calculated under section 290.06, subdivision 2c, paragraph (e). new text end 22.15     new text begin Subd. 3. new text end new text begin Credit refundable. new text end new text begin (a) If the amount of credit that an individual is new text end 22.16 new text begin allowed under this section exceeds the individual's tax liability under this chapter, the new text end 22.17 new text begin commissioner shall refund the excess to the individual. new text end 22.18 new text begin (b) The total amount of credits allocated in a calendar year must not exceed new text end 22.19 new text begin $1,000,000. Credits must be processed and issued in the order that complete and accurate new text end 22.20 new text begin returns are filed by the claimant. new text end 22.21     new text begin Subd. 4. new text end new text begin Registration requirement. new text end new text begin (a) An employer must register with the new text end 22.22 new text begin commissioner of human rights to become a qualified employer. The registration must be new text end 22.23 new text begin in a form and manner prescribed by the commissioner of human rights in consultation new text end 22.24 new text begin with the commissioner of revenue. new text end 22.25 new text begin (b) The commissioner of human rights must implement procedures to verify the new text end 22.26 new text begin information in an employer's registration to become a qualified employer and to monitor a new text end 22.27 new text begin qualified employer's compliance in maintaining a nameless job application review process. new text end 22.28 new text begin (c) A qualified employer must annually renew its registration with the commissioner new text end 22.29 new text begin of human rights. An employer that ceases to be a qualified employer at any time during a new text end 22.30 new text begin taxable year is not allowed the credit under this section. new text end 22.31     new text begin Subd. 5. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay the refunds required by this new text end 22.32 new text begin section is appropriated to the commissioner from the general fund. new text end 22.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 22.34 new text begin December 31, 2015. new text end 22.35    Sec. 13. new text begin [290.0695] STUDENT LOAN CREDIT. new text end 23.1     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 23.2 new text begin have the meanings given. new text end 23.3 new text begin (b) "Education profession" means: new text end 23.4 new text begin (1) a full-time job in public education; early childhood education, including licensed new text end 23.5 new text begin or regulated child care, Head Start, and state-funded prekindergarten; school-based library new text end 23.6 new text begin sciences; and other school-based services; or new text end 23.7 new text begin (2) a full-time job as a faculty member at a tribal college or university as defined in new text end 23.8 new text begin section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs new text end 23.9 new text begin subject areas or areas of shortage, including nurse faculty, foreign language faculty, and new text end 23.10 new text begin part-time faculty at community colleges, as determined by the United States Secretary new text end 23.11 new text begin of Education. new text end 23.12 new text begin (c) "Eligible individual" means an individual who has one or more qualified new text end 23.13 new text begin education loans related to an undergraduate or graduate degree program at a postsecondary new text end 23.14 new text begin educational institution. new text end 23.15 new text begin (d) "Eligible loan payments" means the amount the eligible individual paid during new text end 23.16 new text begin the taxable year to pay principal and interest on qualified education loans. new text end 23.17 new text begin (e) "Adjusted gross income" means federal adjusted gross income as defined in new text end 23.18 new text begin section 62 of the Internal Revenue Code. new text end 23.19 new text begin (f) "Postsecondary educational institution" means a postsecondary institution eligible new text end 23.20 new text begin for state student aid under section 136A.103 or, if the institution is not located in this state, new text end 23.21 new text begin a postsecondary institution participating in the federal Pell Grant program under Title IV new text end 23.22 new text begin of the Higher Education Act of 1965, Public Law 89-329, as amended. new text end 23.23 new text begin (g) "Public service job" means a full-time job in emergency management; new text end 23.24 new text begin government, excluding time served as a member of Congress; military service; public new text end 23.25 new text begin safety; law enforcement; public health, including nurses, nurse practitioners, nurses new text end 23.26 new text begin in a clinical setting, and full-time professionals engaged in health care practitioner new text end 23.27 new text begin occupations and health care support occupations, as such terms are defined by the Bureau new text end 23.28 new text begin of Labor Statistics; social work in a public child or family service agency; public interest new text end 23.29 new text begin law services including prosecution or public defense or legal advocacy on behalf of new text end 23.30 new text begin low-income communities at a nonprofit organization; public service for individuals with new text end 23.31 new text begin disabilities or public service for the elderly; public library sciences; or at an organization new text end 23.32 new text begin that is described in section 501(c)(3) of the Internal Revenue Code and exempt from new text end 23.33 new text begin taxation under section 501(a) of the Internal Revenue Code. new text end 23.34 new text begin (h) "Qualified education loan" has the meaning given in section 221 of the Internal new text end 23.35 new text begin Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual new text end 23.36 new text begin or the eligible individual's spouse. new text end 24.1     new text begin Subd. 2. new text end new text begin Credit allowed. new text end new text begin (a) An eligible individual or the parent of an eligible new text end 24.2 new text begin individual is allowed a credit against the tax due under this chapter. The credit equals a new text end 24.3 new text begin percentage of eligible loan payments in excess of ten percent of adjusted gross income, new text end 24.4 new text begin up to $1,000, as follows: new text end 24.5 new text begin (1) for eligible individuals, 50 percent; new text end 24.6 new text begin (2) for eligible individuals in a public service job, 65 percent; and new text end 24.7 new text begin (3) for eligible individuals in an education profession, 75 percent. new text end 24.8 new text begin (b) The credit for the parent of an eligible individual, eligible individual in a public new text end 24.9 new text begin service job, or eligible individual in an education profession equals the amount of eligible new text end 24.10 new text begin loan payments made by the parent of the eligible individual, eligible individual in a public new text end 24.11 new text begin service job, or eligible individual in an education profession during the taxable year, up to new text end 24.12 new text begin $1,000, less the amount of credit allowed to the eligible individual, eligible individual in a new text end 24.13 new text begin public service job, or eligible individual in an education profession under paragraph (a). new text end 24.14 new text begin (c) For a nonresident or part-year resident, the credit must be allocated based on the new text end 24.15 new text begin percentage calculated under section 290.06, subdivision 2c, paragraph (e). new text end 24.16 new text begin (d) An eligible individual or the parent of an eligible individual may receive the new text end 24.17 new text begin credit under this section without regard to the individual's eligibility for the public service new text end 24.18 new text begin loan forgiveness program under United States Code, title 20, section 1087e(m). new text end 24.19     new text begin Subd. 3. new text end new text begin Credit refundable. new text end new text begin If the amount of credit that an individual who is a new text end 24.20 new text begin resident or part-year resident of Minnesota is eligible to receive under this section exceeds new text end 24.21 new text begin the individual's tax liability under this chapter, the commissioner shall refund the excess new text end 24.22 new text begin to the individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's new text end 24.23 new text begin liability for tax under this chapter. new text end 24.24     new text begin Subd. 4. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay the refunds required by this new text end 24.25 new text begin section is appropriated to the commissioner from the general fund. new text end 24.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 24.27 new text begin December 31, 2015. new text end 24.28    Sec. 14. new text begin [290.0696] READING CREDIT. new text end 24.29     new text begin Subdivision 1. new text end new text begin Reading credit. new text end new text begin (a) A taxpayer is allowed a credit, up to $3,000, new text end 24.30 new text begin against the tax imposed by this chapter. The credit amount equals 75 percent of the amount new text end 24.31 new text begin of eligible expenses paid by a taxpayer who is a parent or guardian of a qualifying child: new text end 24.32 new text begin (1) who has been evaluated for determination of a specific learning disability under new text end 24.33 new text begin Minnesota Rules, part 3525.1341, or by a licensed psychologist; and new text end 25.1 new text begin (2) for whom the evaluation indicated a determination of dyslexia, a specific new text end 25.2 new text begin learning disability, or a deficit in basic reading skills, reading comprehension, reading new text end 25.3 new text begin fluency, or spelling. new text end 25.4 new text begin (b) For purposes of this subdivision, the following definitions apply: new text end 25.5 new text begin (1) "eligible expenses" means actual expenses, less the amount of expenses used to new text end 25.6 new text begin claim the credit under section 290.0674, subdivision 1, paid by the taxpayer for tutoring, new text end 25.7 new text begin instruction, treatment by an instructor, or an evaluation under paragraph (a), clause (1), new text end 25.8 new text begin and not compensated by insurance, pretax account, or otherwise, for purposes of meeting new text end 25.9 new text begin the academic standards required under section 120B.021; new text end 25.10 new text begin (2) "instructor" means a person qualifying under section 120A.22, subdivision 10, new text end 25.11 new text begin clauses (1) to (5), who is not a lineal ancestor or sibling of the qualifying child; new text end 25.12 new text begin (3) "treatment" means instruction that: new text end 25.13 new text begin (i) teaches language decoding skills in a systematic manner; new text end 25.14 new text begin (ii) uses recognized diagnostic assessments to determine what intervention would be new text end 25.15 new text begin most appropriate for individual students; and new text end 25.16 new text begin (iii) employs a research-based method; and new text end 25.17 new text begin (4) "qualifying child" has the meaning given in section 32(c)(3) of the Internal new text end 25.18 new text begin Revenue Code. new text end 25.19 new text begin (c) A taxpayer claiming the credit under this subdivision must provide documentation new text end 25.20 new text begin of eligibility for the credit in a form and manner prescribed by the commissioner in new text end 25.21 new text begin consultation with the commissioner of education. The documentation under this paragraph new text end 25.22 new text begin must not disclose any information other than that necessary to prove eligibility for the new text end 25.23 new text begin credit allowed under this subdivision. new text end 25.24 new text begin (d) For a nonresident or part-year resident, the credit determined under this section new text end 25.25 new text begin must be allocated based on the percentage calculated under section 290.06, subdivision new text end 25.26 new text begin 2c, paragraph (e). new text end 25.27 new text begin (e) The amount used to claim the credit under this section must be excluded from new text end 25.28 new text begin any amount subtracted from federal taxable income under section 290.01, subdivision new text end 25.29 new text begin 19b, clause (3). new text end 25.30     new text begin Subd. 2. new text end new text begin Assignment of refunds. new text end new text begin The provisions of section 290.0679, except new text end 25.31 new text begin for subdivision 1, paragraphs (a) and (b), apply to the assignment of refunds authorized new text end 25.32 new text begin under this section. For purposes of assignment of refund under this section, "qualifying new text end 25.33 new text begin taxpayer" means a taxpayer qualified to receive a credit under this section. In no case shall new text end 25.34 new text begin any condition for assignment require disclosure of the specific findings of an evaluation new text end 25.35 new text begin for a specific learning disability. new text end 26.1     new text begin Subd. 3. new text end new text begin Credit refundable. new text end new text begin If the amount of total credits that the claimant is new text end 26.2 new text begin eligible to receive under this section exceeds the claimant's tax liability under this chapter, new text end 26.3 new text begin the commissioner shall refund the excess to the claimant. new text end 26.4     new text begin Subd. 4. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay the refunds authorized under new text end 26.5 new text begin this section is appropriated to the commissioner from the general fund. new text end 26.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 26.7 new text begin December 31, 2015. new text end 26.8    Sec. 15. new text begin [290.0697] CREDIT FOR PARENTS OF STILLBORN CHILDREN. new text end 26.9     new text begin Subdivision 1. new text end new text begin Credit allowed. new text end new text begin (a) An individual is allowed a credit against the new text end 26.10 new text begin tax imposed by this chapter equal to $2,000 for each birth for which a certificate of new text end 26.11 new text begin birth resulting in stillbirth has been issued under section 144.2151. The credit under new text end 26.12 new text begin this section is allowed only in the taxable year in which the stillbirth occurred and if new text end 26.13 new text begin the child would have been a dependent of the taxpayer as defined in section 152 of the new text end 26.14 new text begin Internal Revenue Code. new text end 26.15 new text begin (b) For a part-year resident, the credit must be allocated based on the percentage new text end 26.16 new text begin calculated under section 290.06, subdivision 2c, paragraph (e). new text end 26.17     new text begin Subd. 2. new text end new text begin Credit refundable. new text end new text begin If the amount of credit that an individual is new text end 26.18 new text begin allowed under this section exceeds the individual's tax liability under this chapter, the new text end 26.19 new text begin commissioner shall refund the excess to the individual. new text end 26.20     new text begin Subd. 3. new text end new text begin Appropriation. new text end new text begin An amount sufficient to pay the refunds required by this new text end 26.21 new text begin section is appropriated to the commissioner from the general fund. new text end 26.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxable years beginning after new text end 26.23 new text begin December 31, 2015. new text end 26.24    Sec. 16. Minnesota Statutes 2014, section 290.091, subdivision 2, is amended to read: 26.25    Subd. 2. Definitions. For purposes of the tax imposed by this section, the following 26.26terms have the meanings given: 26.27    (a) "Alternative minimum taxable income" means the sum of the following for 26.28the taxable year: 26.29    (1) the taxpayer's federal alternative minimum taxable income as defined in section 26.3055(b)(2) of the Internal Revenue Code; 26.31    (2) the taxpayer's itemized deductions allowed in computing federal alternative 26.32minimum taxable income, but excluding: 27.1    (i) the charitable contribution deduction under section 170 of the Internal Revenue 27.2Code; 27.3    (ii) the medical expense deduction; 27.4    (iii) the casualty, theft, and disaster loss deduction; and 27.5    (iv) the impairment-related work expenses of a disabled person; 27.6    (3) for depletion allowances computed under section 613A(c) of the Internal 27.7Revenue Code, with respect to each property (as defined in section 614 of the Internal 27.8Revenue Code), to the extent not included in federal alternative minimum taxable income, 27.9the excess of the deduction for depletion allowable under section 611 of the Internal 27.10Revenue Code for the taxable year over the adjusted basis of the property at the end of the 27.11taxable year (determined without regard to the depletion deduction for the taxable year); 27.12    (4) to the extent not included in federal alternative minimum taxable income, the 27.13amount of the tax preference for intangible drilling cost under section 57(a)(2) of the 27.14Internal Revenue Code determined without regard to subparagraph (E); 27.15    (5) to the extent not included in federal alternative minimum taxable income, the 27.16amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and 27.17    (6) the amount of addition required by section 290.01, subdivision 19a, clauses 27.18(7) to (9), and (11) to (14); new text begin and new text end 27.19     new text begin (7) the amount of the addition required by section 290.01, subdivision 19a, clause new text end 27.20 new text begin (18); new text end 27.21    less the sum of the amounts determined under the following: 27.22    (1) interest income as defined in section 290.01, subdivision 19b, clause (1); 27.23    (2) an overpayment of state income tax as provided by section 290.01, subdivision 27.2419b , clause (2), to the extent included in federal alternative minimum taxable income; 27.25    (3) the amount of investment interest paid or accrued within the taxable year on 27.26indebtedness to the extent that the amount does not exceed net investment income, as 27.27defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include 27.28amounts deducted in computing federal adjusted gross income; 27.29    (4) amounts subtracted from federal taxable income as provided by section 290.01, 27.30subdivision 19b , clauses (6), (8) to (14), new text begin and new text end (16), and (21); and 27.31(5) the amount of the net operating loss allowed under section 290.095, subdivision 27.3211 , paragraph (c). 27.33    In the case of an estate or trust, alternative minimum taxable income must be 27.34computed as provided in section 59(c) of the Internal Revenue Code. 27.35    (b) "Investment interest" means investment interest as defined in section 163(d)(3) 27.36of the Internal Revenue Code. 28.1    (c) "Net minimum tax" means the minimum tax imposed by this section. 28.2    (d) "Regular tax" means the tax that would be imposed under this chapter (without 28.3regard to this section and section 290.032), reduced by the sum of the nonrefundable 28.4credits allowed under this chapter. 28.5    (e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable 28.6income after subtracting the exemption amount determined under subdivision 3. 28.7 new text begin EFFECTIVE DATE. new text end new text begin Paragraph (a), clause (7), is effective for taxable years new text end 28.8 new text begin beginning after December 31, 2015. The change to paragraph (a), the second clause new text end 28.9 new text begin (4), is effective the day following final enactment, except the changes incorporated by new text end 28.10 new text begin federal changes are effective retroactively at the same time as the changes were effective new text end 28.11 new text begin for federal purposes. new text end 28.12    Sec. 17. Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15, 28.13is amended to read: 28.14    Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal 28.15Revenue Code of 1986, as amended through December 31, 2014 new text begin 2015 new text end . 28.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for property tax refunds new text end 28.17 new text begin based on property taxes payable after December 31, 2015, and rent paid after December new text end 28.18 new text begin 31, 2014. new text end 28.19    Sec. 18. Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is 28.20amended to read: 28.21    Subdivision 1. Scope. Unless the context otherwise clearly requires, the following 28.22terms used in this chapter shall have the following meanings: 28.23    (1) "Commissioner" means the commissioner of revenue or any person to whom the 28.24commissioner has delegated functions under this chapter. 28.25    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued 28.26and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 28.27increased by the value of any property in which the decedent had a qualifying income 28.28interest for life and for which an election was made under section 291.03, subdivision 1d, 28.29for Minnesota estate tax purposes, but was not made for federal estate tax purposes. 28.30    (3) "Internal Revenue Code" means the United States Internal Revenue Code of 28.311986, as amended through December 31, 2014 new text begin 2015 new text end . 28.32    (4) "Minnesota gross estate" means the federal gross estate of a decedent after 28.33(a) excluding therefrom any property included in the estate which has its situs outside 29.1Minnesota, and (b) including any property omitted from the federal gross estate which 29.2is includable in the estate, has its situs in Minnesota, and was not disclosed to federal 29.3taxing authorities. 29.4    (5) "Nonresident decedent" means an individual whose domicile at the time of 29.5death was not in Minnesota. 29.6    (6) "Personal representative" means the executor, administrator or other person 29.7appointed by the court to administer and dispose of the property of the decedent. If there 29.8is no executor, administrator or other person appointed, qualified, and acting within this 29.9state, then any person in actual or constructive possession of any property having a situs in 29.10this state which is included in the federal gross estate of the decedent shall be deemed 29.11to be a personal representative to the extent of the property and the Minnesota estate tax 29.12due with respect to the property. 29.13    (7) "Resident decedent" means an individual whose domicile at the time of death 29.14was in Minnesota. 29.15    (8) "Situs of property" means, with respect to: 29.16    (i) real property, the state or country in which it is located; 29.17    (ii) tangible personal property, the state or country in which it was normally kept 29.18or located at the time of the decedent's death or for a gift of tangible personal property 29.19within three years of death, the state or country in which it was normally kept or located 29.20when the gift was executed; 29.21    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 29.22Code, owned by a nonresident decedent and that is normally kept or located in this state 29.23because it is on loan to an organization, qualifying as exempt from taxation under section 29.24501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 29.25deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and 29.26    (iv) intangible personal property, the state or country in which the decedent was 29.27domiciled at death or for a gift of intangible personal property within three years of death, 29.28the state or country in which the decedent was domiciled when the gift was executed. 29.29    For a nonresident decedent with an ownership interest in a pass-through entity with 29.30assets that include real or tangible personal property, situs of the real or tangible personal 29.31property, including qualified works of art, is determined as if the pass-through entity does 29.32not exist and the real or tangible personal property is personally owned by the decedent. 29.33If the pass-through entity is owned by a person or persons in addition to the decedent, 29.34ownership of the property is attributed to the decedent in proportion to the decedent's 29.35capital ownership share of the pass-through entity. 29.36(9) "Pass-through entity" includes the following: 30.1(i) an entity electing S corporation status under section 1362 of the Internal Revenue 30.2Code; 30.3(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code; 30.4(iii) a single-member limited liability company or similar entity, regardless of 30.5whether it is taxed as an association or is disregarded for federal income tax purposes 30.6under Code of Federal Regulations, title 26, section 301.7701-3; or 30.7(iv) a trust to the extent the property is includible in the decedent's federal gross 30.8estate; but excludes 30.9    (v) an entity whose ownership interest securities are traded on an exchange regulated 30.10by the Securities and Exchange Commission as a national securities exchange under 30.11section 6 of the Securities Exchange Act, United States Code, title 15, section 78f. 30.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 30.13    Sec. 19. new text begin AMENDED RETURNS. new text end 30.14     new text begin Subdivision 1. new text end new text begin Certain IRA rollovers. new text end new text begin An individual who excludes an amount new text end 30.15 new text begin from net income in a prior taxable year through rollover of an airline payment amount to new text end 30.16 new text begin a traditional IRA, as authorized under Public Law 114-113, division Q, title III, section new text end 30.17 new text begin 307, may file an amended individual income tax return and claim for refund of state taxes new text end 30.18 new text begin as provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by new text end 30.19 new text begin September 1, 2016. new text end 30.20     new text begin Subd. 2. new text end new text begin Exclusion for certain incarcerated individuals. new text end new text begin An individual who new text end 30.21 new text begin excludes from net income in a prior taxable year civil damages, restitution, or other new text end 30.22 new text begin monetary award received as compensation for a wrongful incarceration, as authorized new text end 30.23 new text begin under Public Law 114-113, division Q, title III, section 304, may file an amended new text end 30.24 new text begin individual income tax return and claim for refund of state taxes as provided under new text end 30.25 new text begin Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September 1, 2016. new text end 30.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 30.27    Sec. 20. new text begin TAX TIME SAVINGS GRANT PROGRAM APPROPRIATION. new text end 30.28 new text begin (a) $400,000 is appropriated in fiscal year 2017 from the general fund to the new text end 30.29 new text begin commissioner of revenue to make grants under the tax time savings grant program under new text end 30.30 new text begin Minnesota Statutes, section 270C.22. Of this amount, up to five percent may be used for new text end 30.31 new text begin the administration of the tax time savings grant program. new text end 30.32 new text begin (b) The base funding for the grant program authorized under paragraph (a) is new text end 30.33 new text begin $400,000 each year. new text end 31.1    Sec. 21. new text begin TAXPAYER ASSISTANCE GRANTS APPROPRIATION. new text end 31.2 new text begin (a) $400,000 is appropriated in fiscal year 2017 from the general fund to the new text end 31.3 new text begin commissioner of revenue for the provision of taxpayer assistance grants under Minnesota new text end 31.4 new text begin Statutes, section 270C.21, in addition to the current base funding for the program. Of the new text end 31.5 new text begin amount appropriated under this paragraph and the current base funding for the provision new text end 31.6 new text begin of taxpayer assistance grants, up to five percent may be used for the administration of the new text end 31.7 new text begin taxpayer assistance grants program. new text end 31.8 new text begin (b) After fiscal year 2017, the base funding for the program under paragraph (a) is new text end 31.9 new text begin $800,000 each year. new text end 31.10ARTICLE 2 31.11SALES AND USE 31.12    Section 1. Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read: 31.13    Subdivision 1. Definitions. (a) To the extent allowed by the United States 31.14Constitution and the laws of the United States, "retailer maintaining a place of business in 31.15this state," or a similar term, means a retailer: 31.16(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, 31.17an office, place of distribution, sales new text begin , storage, new text end or sample room or place, warehouse, or 31.18other place of business new text begin , including the employment of a resident of this state who works new text end 31.19 new text begin from a home office in this state new text end ; or 31.20(2) having a representative, including, but not limited to, an affiliate, agent, 31.21salesperson, canvasser, or new text begin marketplace provider, new text end solicitor new text begin , or other third party new text end operating in 31.22this state under the authority of the retailer or its subsidiary, for any purpose, including the 31.23repairing, selling, delivering, installing, new text begin facilitating sales, processing sales, new text end or soliciting 31.24of orders for the retailer's goods or services, or the leasing of tangible personal property 31.25located in this state, whether the place of business or agent, representative, affiliate, 31.26salesperson, canvasser, or solicitor is located in the state permanently or temporarily, or 31.27whether or not the retailer, subsidiary, or affiliate is authorized to do business in this state. 31.28(b) "Destination of a sale" means the location to which the retailer makes delivery of 31.29the property sold, or causes the property to be delivered, to the purchaser of the property, 31.30or to the agent or designee of the purchaser. The delivery may be made by any means, 31.31including the United States Postal Service or a for-hire carrier. 31.32    Sec. 2. Minnesota Statutes 2014, section 297A.66, subdivision 3, is amended to read: 31.33    Subd. 3. Retailer not maintaining place of business in this state. (a) To the 31.34extent allowed by the United States Constitution and in accordance with the terms and 32.1conditions of federal remote seller law, a retailer making retail sales from outside this state 32.2to a destination within this state and not maintaining a place of business in this state shall 32.3collect sales and use taxes and remit them to the commissioner under section 297A.77. 32.4(b) To the extent allowed by the United States Constitution and the laws of the 32.5United States, a retailer making retail sales from outside this state to a destination within 32.6this state and not maintaining a place of business in this state shall collect sales and use 32.7taxes and remit them to the commissioner under section 297A.77, if the retailer engages in 32.8the regular or systematic soliciting of sales from potential customers in this state by: 32.9(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or 32.10other written solicitations of business to customers in this state; 32.11(2) display of advertisements on billboards or other outdoor advertising in this state; 32.12(3) advertisements in newspapers published in this state; 32.13(4) advertisements in trade journals or other periodicals the circulation of which is 32.14primarily within this state; 32.15(5) advertisements in a Minnesota edition of a national or regional publication or 32.16a limited regional edition in which this state is included as part of a broader regional or 32.17national publication which are not placed in other geographically defined editions of the 32.18same issue of the same publication; 32.19(6) advertisements in regional or national publications in an edition which is not 32.20by its contents geographically targeted to Minnesota but which is sold over the counter 32.21in Minnesota or by subscription to Minnesota residents; 32.22(7) advertisements broadcast on a radio or television station located in Minnesota; or 32.23(8) any other solicitation by telegraphy, telephone, computer database, cable, optic, 32.24microwave, or other communication system. new text begin ; new text end 32.25 new text begin (9) engaging in direct response marketing in this state, either directly or indirectly new text end 32.26 new text begin through a marketplace provider or other third party. For purposes of this section, "direct new text end 32.27 new text begin response marketing" includes but is not limited to the following: new text end 32.28 new text begin (i) sending, transmitting, or broadcasting of flyers, newsletters, telephone calls, new text end 32.29 new text begin targeted e-mail, text messages, social media messages, or targeted mailings; new text end 32.30 new text begin (ii) collecting, analyzing, and utilizing individual data on purchasers or potential new text end 32.31 new text begin purchasers in this state; new text end 32.32 new text begin (iii) using information or software, including cached files, cached software, cookies, new text end 32.33 new text begin or other data-tracking tools, that are stored in or distributed within this state; or new text end 32.34 new text begin (iv) conducting any other actions that use persons, tangible property, intangibles, new text end 32.35 new text begin digital files or information, or software in this state in an effort to enhance the probability new text end 32.36 new text begin that a person's contact with a customer in this state will result in a sale to that customer; new text end 33.1 new text begin (10) conducting any part of the sale process in the state, regardless of whether that new text end 33.2 new text begin part of the process has been subcontracted to an affiliate or third party, including listing new text end 33.3 new text begin products or services for sale, soliciting, branding products, selling products, processing new text end 33.4 new text begin orders, fulfilling orders, providing customer service, or accepting or assisting with returns new text end 33.5 new text begin or exchanges. The sale process does not include shipping via a common carrier; or new text end 33.6 new text begin (11) offering its products for sale through one or more marketplaces operated by new text end 33.7 new text begin any marketplace provider required to collect and remit sales and use taxes in this state new text end 33.8 new text begin under this section. new text end 33.9This paragraph must be construed without regard to the state from which distribution 33.10of the materials originated or in which they were prepared. 33.11(c) The location within or without this state of independent vendors that provide 33.12products or services to the retailer in connection with its solicitation of customers within this 33.13state, including such products and services as creation of copy, printing, distribution, and 33.14recording, is not considered in determining whether the retailer is required to collect tax. 33.15(d) A retailer not maintaining a place of business in this state is presumed, subject to 33.16rebuttal, to be engaged in regular solicitation within this state if it engages in any of the 33.17activities in paragraph (b) and: 33.18(1) makes 100 or more retail sales from outside this state to destinations in this state 33.19during a period of 12 consecutive months; or 33.20(2) makes ten or more retail sales totaling more than $100,000 from outside this state 33.21to destinations in this state during a period of 12 consecutive months. 33.22    Sec. 3. Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read: 33.23    Subd. 4. Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes 33.24of subdivision 1, paragraph (a), if new text begin the entity is a related party to the retailer and meets new text end 33.25 new text begin any of the following conditions new text end : 33.26(1) the entity uses its facilities or employees in this state to advertise, promote, or 33.27facilitate the establishment or maintenance of a market for sales of items by the retailer 33.28to purchasers in this state or for the provision of services to the retailer's purchasers in 33.29this state, such as accepting returns of purchases for the retailer, providing assistance in 33.30resolving customer complaints of the retailer, or providing other services; and 33.31(2) the retailer and the entity are related parties. new text begin sells under the same or a similar new text end 33.32 new text begin business name tangible personal property or taxable services similar to that sold by the new text end 33.33 new text begin person against whom the presumption is asserted; new text end 33.34 new text begin (3) maintains an office, distribution facility, salesroom, warehouse, storage place, or new text end 33.35 new text begin other similar place of business in this state to facilitate the delivery of tangible personal new text end 34.1 new text begin property or taxable services sold by the person against whom the presumption is asserted new text end 34.2 new text begin to that person's in-state customers; new text end 34.3 new text begin (4) uses, with consent or knowledge of the person against whom the presumption new text end 34.4 new text begin is asserted, trademarks, service marks, or trade names in this state that are the same or new text end 34.5 new text begin substantially similar to those used by the person against whom the presumption is asserted; new text end 34.6 new text begin (5) delivers, installs, or assembles tangible personal property in this state, or new text end 34.7 new text begin performs maintenance or repair services on tangible personal property in this state, if the new text end 34.8 new text begin tangible personal property is sold to in-state customers by the person against whom the new text end 34.9 new text begin presumption is asserted; new text end 34.10 new text begin (6) facilitates the delivery of tangible personal property to in-state customers of the new text end 34.11 new text begin person against whom the presumption is asserted by allowing the customers to pick up new text end 34.12 new text begin tangible personal property sold by the person at an office, distribution facility, salesroom, new text end 34.13 new text begin warehouse, storage place, or other similar place of business maintained in this state; or new text end 34.14 new text begin (7) shares management, business systems, business practices, or employees with the new text end 34.15 new text begin person against whom the presumption is asserted, or engages in intercompany transactions new text end 34.16 new text begin with the person against whom the presumption is asserted related to the activities that new text end 34.17 new text begin establish or maintain the market in this state of the person against whom the presumption new text end 34.18 new text begin is asserted. new text end 34.19(b) Two entities are related parties under this section if one of the entities meets at 34.20least one of the following tests with respect to the other entity: 34.21(1) one or both entities is a corporation, and one entity and any party related to that 34.22entity in a manner that would require an attribution of stock from the corporation to the 34.23party or from the party to the corporation under the attribution rules of section 318 of the 34.24Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 34.25percent of the value of the corporation's outstanding stock; 34.26(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary, 34.27and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, 34.28beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, 34.29stock, or value of the other entity or both entities; or 34.30(3) an individual stockholder and the members of the stockholder's family (as 34.31defined in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, 34.32or constructively, in the aggregate, at least 50 percent of the value of both entities' 34.33outstanding stock. new text begin ; new text end 34.34 new text begin (4) the entities are related within the meaning of subsections (b) and (c) of section new text end 34.35 new text begin 267 or 707(b)(1) of the Internal Revenue Code; or new text end 35.1 new text begin (5) the entities have one or more ownership relationships and the relationships were new text end 35.2 new text begin designed with a principal purpose of avoiding the application of this section. new text end 35.3(c) An entity is an affiliate under the provisions of this subdivision if the requirements 35.4of paragraphs (a) and (b) are met during any part of the 12-month period ending on the 35.5first day of the month before the month in which the sale was made. 35.6    Sec. 4. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision 35.7to read: 35.8     new text begin Subd. 4b. new text end new text begin Marketplace provider and marketplace seller. new text end new text begin (a) For purposes of new text end 35.9 new text begin subdivisions 1, paragraph (a), and 4c, "marketplace provider" means any person who new text end 35.10 new text begin facilitates a retail sale by a seller. A marketplace provider facilitates a retail sale when new text end 35.11 new text begin the marketplace provider: new text end 35.12 new text begin (1) lists or advertises in any forum tangible personal property for sale or taxable new text end 35.13 new text begin services for sale; and new text end 35.14 new text begin (2) either directly or indirectly through agreements or arrangements with third parties new text end 35.15 new text begin collects payment from the customer and transmits that payment to a seller, regardless new text end 35.16 new text begin of whether the marketplace provider receives compensation or other consideration in new text end 35.17 new text begin exchange for its services. new text end 35.18 new text begin (b) "Marketplace seller" means a seller that has any sales facilitated by a marketplace new text end 35.19 new text begin provider. new text end 35.20 new text begin (c) A seller is presumed to have a marketplace provider in this state if the seller new text end 35.21 new text begin enters into an agreement with a marketplace provider that maintains a place of business in new text end 35.22 new text begin the state for the facilitation of retail sales. new text end 35.23 new text begin (d) This subdivision applies only if the seller's total gross receipts are at least new text end 35.24 new text begin $10,000 in the 12-month period ending on the last day of the most recent calendar quarter new text end 35.25 new text begin before the calendar quarter in which the sale is made. For purposes of this paragraph, new text end 35.26 new text begin "gross receipts" means receipts from sales to customers located in the state that were new text end 35.27 new text begin facilitated by the marketplace provider. new text end 35.28 new text begin (e) Nothing in this subdivision shall be construed to narrow the scope of the terms new text end 35.29 new text begin affiliate, agent, salesperson, canvasser, solicitor, or other representative for purposes new text end 35.30 new text begin of subdivision 1, paragraph (a). new text end 35.31 new text begin (f) This subdivision does not apply to chapter 290 and does not expand or contract new text end 35.32 new text begin the jurisdiction to tax a trade or business under chapter 290. new text end 35.33    Sec. 5. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision 35.34to read: 36.1     new text begin Subd. 4c. new text end new text begin Collection and remittance requirements for marketplace providers new text end 36.2 new text begin and marketplace sellers. new text end new text begin (a) A marketplace provider that facilitates sales to customers new text end 36.3 new text begin in this state shall collect sales and use taxes and remit them to the commissioner under new text end 36.4 new text begin section 297A.77. new text end 36.5 new text begin (b) The requirement under paragraph (a) does not apply to a marketplace provider if new text end 36.6 new text begin the marketplace seller for whom the marketplace provider facilitates a sale either: new text end 36.7 new text begin (1) provides a copy of the seller's registration to collect sales and use tax in this state new text end 36.8 new text begin to the marketplace provider before the marketplace provider facilitates a sale; or new text end 36.9 new text begin (2) the marketplace seller appears on a list published by the commissioner of revenue new text end 36.10 new text begin of the entities registered to collect sales and use taxes in this state. new text end 36.11 new text begin (c) The commissioner of revenue shall promulgate regulations regarding the content new text end 36.12 new text begin and publication of the list under paragraph (b), clause (2). Nothing in this subdivision new text end 36.13 new text begin shall be construed to interfere with the ability of a marketplace provider and a marketplace new text end 36.14 new text begin seller to enter into an agreement regarding fulfillment of the requirements of this chapter. new text end 36.15 new text begin (d) A marketplace provider is relieved of liability under this subdivision for failure new text end 36.16 new text begin to collect and remit sales and use taxes to the extent that the marketplace provider new text end 36.17 new text begin demonstrates that the error was due to incorrect or insufficient information given to the new text end 36.18 new text begin marketplace provider by the marketplace seller. This paragraph does not apply if the new text end 36.19 new text begin marketplace provider and the marketplace seller are related as defined in subdivision 4, new text end 36.20 new text begin paragraph (b). new text end 36.21    Sec. 6. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision 36.22to read: 36.23     new text begin Subd. 49. new text end new text begin Siding production facility materials. new text end new text begin Building materials and supplies new text end 36.24 new text begin for constructing a siding production facility that can produce at least 400,000,000 square new text end 36.25 new text begin feet of siding per year are exempt. The tax must be imposed and collected as if the rate new text end 36.26 new text begin under section 297A.62, subdivision 1, applied, and then refunded in the manner provided new text end 36.27 new text begin in section 297A.75. new text end 36.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 36.29 new text begin June 30, 2016. new text end 36.30    Sec. 7. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision 36.31to read: 36.32     new text begin Subd. 50. new text end new text begin Properties destroyed by fire. new text end new text begin Building materials, equipment, and new text end 36.33 new text begin supplies for constructing or replacing real property that is located in Madelia affected by new text end 36.34 new text begin the fire on February 3, 2016, are exempt. The tax must be imposed and collected as if new text end 37.1 new text begin the rate under section 297A.62, subdivision 1, applied and then refunded in the manner new text end 37.2 new text begin provided in section 297A.75. new text end 37.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 37.4 new text begin June 30, 2016, and before July 1, 2018. new text end 37.5    Sec. 8. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision 37.6to read: 37.7     new text begin Subd. 51. new text end new text begin Former Duluth Central High School. new text end new text begin Materials and supplies used new text end 37.8 new text begin in and equipment incorporated into a private redevelopment project on the site of the new text end 37.9 new text begin former Duluth Central High School are exempt, provided the resulting development is new text end 37.10 new text begin subject to property taxes. The tax must be imposed and collected as if the rate under new text end 37.11 new text begin section 297A.62, subdivision 1, applied and then refunded in the manner provided in new text end 37.12 new text begin section 297A.75. The commissioner must not pay more than $5,000,000 in refunds for new text end 37.13 new text begin purchases exempt under this section. Refunds must be processed and issued in the order new text end 37.14 new text begin that complete and accurate applications are received by the commissioner. new text end 37.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 37.16 new text begin June 30, 2016, and before January 1, 2018. new text end 37.17    Sec. 9. Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read: 37.18    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the 37.19following exempt items must be imposed and collected as if the sale were taxable and the 37.20rate under section 297A.62, subdivision 1, applied. The exempt items include: 37.21    (1) building materials for an agricultural processing facility exempt under section 37.22297A.71, subdivision 13 ; 37.23    (2) building materials for mineral production facilities exempt under section 37.24297A.71, subdivision 14 ; 37.25    (3) building materials for correctional facilities under section 297A.71, subdivision 3; 37.26    (4) building materials used in a residence for disabled veterans exempt under section 37.27297A.71, subdivision 11 ; 37.28    (5) elevators and building materials exempt under section 297A.71, subdivision 12; 37.29    (6) materials and supplies for qualified low-income housing under section 297A.71, 37.30subdivision 23 ; 37.31    (7) materials, supplies, and equipment for municipal electric utility facilities under 37.32section 297A.71, subdivision 35; 38.1    (8) equipment and materials used for the generation, transmission, and distribution 38.2of electrical energy and an aerial camera package exempt under section 297A.68, 38.3subdivision 37; 38.4    (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, 38.5paragraph (a), clause (10); 38.6    (10) materials, supplies, and equipment for construction or improvement of projects 38.7and facilities under section 297A.71, subdivision 40; 38.8(11) materials, supplies, and equipment for construction, improvement, or expansion 38.9of: 38.10(i) an aerospace defense manufacturing facility exempt under section 297A.71, 38.11subdivision 42 ; 38.12(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, 38.13subdivision 45 ; 38.14(iii) a research and development facility exempt under section 297A.71, subdivision 38.1546 ; and 38.16(iv) an industrial measurement manufacturing and controls facility exempt under 38.17section 297A.71, subdivision 47; 38.18(12) enterprise information technology equipment and computer software for use in 38.19a qualified data center exempt under section 297A.68, subdivision 42; 38.20(13) materials, supplies, and equipment for qualifying capital projects under section 38.21297A.71, subdivision 44 ; 38.22(14) items purchased for use in providing critical access dental services exempt 38.23under section 297A.70, subdivision 7, paragraph (c); and 38.24(15) items and services purchased under a business subsidy agreement for use or 38.25consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44 new text begin ; new text end 38.26 new text begin (16) building materials and supplies for constructing a siding facility exempt under new text end 38.27 new text begin section 297A.71, subdivision 49; new text end 38.28 new text begin (17) building materials, equipment, and supplies for constructing or replacing real new text end 38.29 new text begin property exempt under section 297A.71, subdivision 50; and new text end 38.30 new text begin (18) materials and supplies used in and equipment incorporated into a private new text end 38.31 new text begin redevelopment project exempt under section 297A.71, subdivision 51 new text end . 38.32 new text begin EFFECTIVE DATE. new text end new text begin Clause (16) is effective for sales and purchases made after new text end 38.33 new text begin June 30, 2016. Clause (17) is effective for sales and purchases made after June 30, 2016, new text end 38.34 new text begin and before July 1, 2018. Clause (18) is effective for sales and purchases made after June new text end 38.35 new text begin 30, 2016, and before January 1, 2018. new text end 39.1    Sec. 10. Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read: 39.2    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the 39.3commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 39.4must be paid to the applicant. Only the following persons may apply for the refund: 39.5    (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser; 39.6    (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision; 39.7    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 39.8provided in United States Code, title 38, chapter 21; 39.9    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 39.10property; 39.11    (5) for subdivision 1, clause (6), the owner of the qualified low-income housing 39.12project; 39.13    (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or 39.14a joint venture of municipal electric utilities; 39.15    (7) for subdivision 1, clauses (8), (11), (12), and (15), new text begin and (16), new text end the owner of the 39.16qualifying business; and 39.17    (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the 39.18governmental entity that owns or contracts for the project or facility new text begin ; and new text end 39.19     new text begin (9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or new text end 39.20 new text begin developer of the building or project new text end . 39.21 new text begin EFFECTIVE DATE. new text end new text begin The change to clause (7) is effective for sales and purchases new text end 39.22 new text begin made after June 30, 2016. Clause (9) is effective for sales and purchases made after June new text end 39.23 new text begin 30, 2016, and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, new text end 39.24 new text begin subdivision 1, clause (17), and for sales and purchases made after June 30, 2016, and new text end 39.25 new text begin before January 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision new text end 39.26 new text begin 1, clause (18). new text end 39.27    Sec. 11. Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read: 39.28    Subd. 3. Application. (a) The application must include sufficient information 39.29to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 39.30subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15), new text begin to (18), new text end the 39.31contractor, subcontractor, or builder must furnish to the refund applicant a statement 39.32including the cost of the exempt items and the taxes paid on the items unless otherwise 39.33specifically provided by this subdivision. The provisions of sections 289A.40 and 39.34289A.50 apply to refunds under this section. 40.1    (b) An applicant may not file more than two applications per calendar year for 40.2refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5. 40.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for sales and purchases made after new text end 40.4 new text begin June 30, 2016. new text end 40.5    Sec. 12. new text begin SEVERABILITY. new text end 40.6 new text begin If any provision of sections 1 to 5 or 13 or the application thereof is held invalid, new text end 40.7 new text begin such invalidity shall not affect the provisions or applications of the sections which can be new text end 40.8 new text begin given effect without the invalid provisions or applications. new text end 40.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 40.10    Sec. 13. new text begin EFFECTIVE DATE. new text end 40.11 new text begin (a) The provisions of sections 1 to 5 of this article are effective upon a decision by new text end 40.12 new text begin the United States Supreme Court overturning or expanding its decision in Quill Corp. v. new text end 40.13 new text begin North Dakota, 504 U.S. 298 (1992), allowing a state to require retailers without a physical new text end 40.14 new text begin presence in the state to collect and remit sales tax. new text end 40.15 new text begin (b) Notwithstanding paragraph (a) or the provisions of sections 1 to 5, if a federal new text end 40.16 new text begin law is enacted authorizing a state to impose a requirement to collect and remit sales tax new text end 40.17 new text begin on retailers without a physical presence in the state, the commissioner must enforce the new text end 40.18 new text begin provisions of this section and sections 1 to 5 to the extent allowed under federal law. new text end 40.19 new text begin (c) The commissioner of revenue shall notify the revisor of statutes when either of new text end 40.20 new text begin the provisions in paragraphs (a) or (b) apply. new text end 40.21ARTICLE 3 40.22PROPERTY TAX 40.23    Section 1. new text begin [216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE new text end 40.24 new text begin ASSOCIATION. new text end 40.25 new text begin A cooperative electric association that has elected to be subject to rate regulation new text end 40.26 new text begin under section 216B.026 is eligible to file with the commission for approval of an new text end 40.27 new text begin adjustment for real and personal property taxes, fees, and permits. new text end 40.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 40.29    Sec. 2. Minnesota Statutes 2014, section 272.162, is amended to read: 40.30272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS. 41.1    Subdivision 1. Conditions restricting transfer. When a deed or other instrument 41.2conveying a parcel of land is presented to the county auditor for transfer or division under 41.3sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its 41.4net tax capacity in the official records and shall not certify the instrument as provided in 41.5section 272.12, if: 41.6(a) The land conveyed is less than a whole parcel of land as charged in the tax lists; 41.7(b) The part conveyed appears within the area of application of municipal new text begin or new text end 41.8 new text begin county new text end subdivision regulations adopted and filed under new text begin section 394.35 or new text end section 462.36, 41.9subdivision 1 ; and 41.10(c) The part conveyed is part of or constitutes a subdivision as defined in section 41.11462.352, subdivision 12 . 41.12    Subd. 2. Conditions allowing transfer. new text begin (a) new text end Notwithstanding the provisions of 41.13subdivision 1, the county auditor may transfer or divide the land and its net tax capacity 41.14and may certify the instrument if the instrument contains a certification by the clerk of 41.15the municipality new text begin or designated county planning official new text end : 41.16(a) new text begin (1) new text end that the municipality's new text begin or county's new text end subdivision regulations do not apply; 41.17(b) new text begin (2) new text end that the subdivision has been approved by the governing body of the 41.18municipality new text begin or county new text end ; or 41.19(c) new text begin (3) new text end that the restrictions on the division of taxes and filing and recording have 41.20been waived by resolution of the governing body of the municipality new text begin or county new text end in the 41.21particular case because compliance would create an unnecessary hardship and failure to 41.22comply would not interfere with the purpose of the regulations. 41.23 new text begin (b) new text end If any of the conditions for certification by the municipality new text begin or county new text end as provided 41.24in this subdivision exist and the municipality new text begin or county new text end does not certify that they exist 41.25within 24 hours after the instrument of conveyance has been presented to the clerk of 41.26the municipality new text begin or designated county planning official new text end , the provisions of subdivision 1 41.27do not apply. 41.28 new text begin (c) new text end If an unexecuted instrument is presented to the municipality new text begin or county new text end and 41.29any of the conditions for certification by the municipality new text begin or county new text end as provided in 41.30this subdivision exist, the unexecuted instrument must be certified by the clerk of the 41.31municipality new text begin or the designated county planning official new text end . 41.32    Subd. 3. Applicability of restrictions. new text begin (a) new text end This section does not apply to the 41.33exceptions set forth in section 272.12. 41.34 new text begin (b) new text end This section applies only to land within municipalities new text begin or counties new text end which choose 41.35to be governed by its provisions. A municipality new text begin or county new text end may choose to have this 41.36section apply to the property within its boundaries by filing a certified copy of a resolution 42.1of its governing body making that choice with the auditor and recorder of the county in 42.2which it is located. 42.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 42.4    Sec. 3. new text begin [469.501] STATE GENERAL TAX REFUND. new text end 42.5     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For the purposes of this section, the following terms new text end 42.6 new text begin have the meanings given them. new text end 42.7 new text begin (b) "Commissioner" means the commissioner of employment and economic new text end 42.8 new text begin development. new text end 42.9 new text begin (c) "Job creation zone" means an area including one or more contiguous census new text end 42.10 new text begin tracts, as determined and measured by the United States Census Bureau, where the new text end 42.11 new text begin unemployment rate average is at least 75 percent higher than the statewide average new text end 42.12 new text begin unemployment rate as estimated by the United States Census Bureau using data collected new text end 42.13 new text begin in the most recent American Community Survey. new text end 42.14 new text begin (d) "Employee" and "wages" have the meanings given in section 290.92, subdivision new text end 42.15 new text begin 1. new text end 42.16     new text begin Subd. 2. new text end new text begin Eligible business. new text end new text begin (a) An eligible business located within the seven-county new text end 42.17 new text begin metropolitan area, or located outside the seven-county metropolitan area but in a city with new text end 42.18 new text begin a population greater than 40,000, is an employer that: (1) is located in a job creation zone new text end 42.19 new text begin as defined in subdivision 1; (2) pays at least 50 percent of the business's total wages to new text end 42.20 new text begin employees who reside either within the job creation zone where the business is located or new text end 42.21 new text begin any contiguous census tract; and (3) is a for-profit business. new text end 42.22 new text begin (b) An eligible business located outside the seven-county metropolitan area and in a new text end 42.23 new text begin city or township with a population less than 40,000 is an employer that: (1) pays at least new text end 42.24 new text begin 50 percent of the business's total wages to employees who reside in any job creation new text end 42.25 new text begin zone not located in either the seven-county metropolitan area or in a city located outside new text end 42.26 new text begin the seven-county metropolitan area with a population greater than 40,000; and (2) is a new text end 42.27 new text begin for-profit business. new text end 42.28 new text begin (c) If a business received a refund under this section in the immediately preceding new text end 42.29 new text begin year, but does not qualify for a refund in the current year because the business is located new text end 42.30 new text begin in an area that no longer meets the requirements of a job creation zone, as defined in new text end 42.31 new text begin subdivision 1, the business may apply for a onetime refund in the current year equal to new text end 42.32 new text begin one-half the amount of the refund issued to the business in the immediately preceding new text end 42.33 new text begin year. A business that relocates outside of a job creation zone shall not be eligible for a new text end 42.34 new text begin refund under this paragraph. new text end 43.1     new text begin Subd. 3. new text end new text begin Refund; authorized. new text end new text begin The commissioner may approve an application for a new text end 43.2 new text begin refund of the state general tax paid under section 275.025 applicable to that portion of new text end 43.3 new text begin the property occupied by an eligible business. The owner of an eligible business must new text end 43.4 new text begin apply annually to the commissioner by July 1 of each year on a form prescribed by the new text end 43.5 new text begin commissioner in order to receive a refund for that year. Upon approval, the commissioner new text end 43.6 new text begin shall notify the commissioner of revenue by September 1. The refund is equal to the state new text end 43.7 new text begin general tax payable on the property where the eligible business is located multiplied by a new text end 43.8 new text begin ratio, the numerator of which is the area of the property occupied by the eligible business new text end 43.9 new text begin and the denominator of which is the total area of the property where the business is new text end 43.10 new text begin located. The commissioner of revenue shall pay the amount determined under this section new text end 43.11 new text begin to the eligible business owner by December 1. new text end 43.12     new text begin Subd. 4. new text end new text begin Appropriation. new text end new text begin The amount necessary to make the refunds under this new text end 43.13 new text begin section is appropriated annually from the general fund to the commissioner of revenue. new text end 43.14     new text begin Subd. 5. new text end new text begin Report. new text end new text begin By January 15, 2023, the commissioner of employment and new text end 43.15 new text begin economic development must provide a written report to the chairs and ranking minority new text end 43.16 new text begin members of the legislative committees with jurisdiction over taxes and employment new text end 43.17 new text begin including information regarding the refunds issued under this section. The report must new text end 43.18 new text begin include, at a minimum, the number of refunds issued, the amount of each refund, the new text end 43.19 new text begin identification and location of each business that received a refund, and employment data new text end 43.20 new text begin used to determine eligibility under this section. The report must comply with sections new text end 43.21 new text begin 3.195 and 3.197. new text end 43.22     new text begin Subd. 6. new text end new text begin Sunset. new text end new text begin This section applies to refunds for state general tax payments made new text end 43.23 new text begin for taxes payable in 2016 through taxes payable in 2026. new text end 43.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for applications filed in calendar year new text end 43.25 new text begin 2016 for refunds of the state general tax payable in 2016 through 2026. new text end 43.26    Sec. 4. Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision 43.27to read: 43.28     new text begin Subd. 1u. new text end new text begin Obligations. new text end new text begin (a) In addition to other authority in this section, the council new text end 43.29 new text begin may issue certificates of indebtedness, bonds, or other obligations under this section in an new text end 43.30 new text begin amount not exceeding $82,100,000 for capital expenditures as prescribed in the council's new text end 43.31 new text begin transit capital improvement program and for related costs, including the costs of issuance new text end 43.32 new text begin and sale of the obligations. Of this authorization, after July 1, 2016, the council may new text end 43.33 new text begin issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding new text end 43.34 new text begin $40,100,000, and after July 1, 2017, the council may issue certificates of indebtedness, new text end 43.35 new text begin bonds, or other obligations in an additional amount not exceeding $42,000,000. new text end 44.1 new text begin (b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin, new text end 44.2 new text begin Ramsey, Scott, and Washington. new text end 44.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 44.4    Sec. 5. new text begin [477A.21] RIPARIAN PROTECTION AID. new text end 44.5     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) When used in this section, the following terms have new text end 44.6 new text begin the meanings given them in this subdivision. new text end 44.7 new text begin (b) "Public water basins" has the meaning provided in section 103G.005, subdivision new text end 44.8 new text begin 15, clauses (1) to (8) and (11). new text end 44.9 new text begin (c) "Public watercourses" has the meaning provided in section 103G.005, new text end 44.10 new text begin subdivision 15, clauses (9) and (10). new text end 44.11     new text begin Subd. 2. new text end new text begin Distribution. new text end new text begin (a) Each county is eligible to receive aid under this section to new text end 44.12 new text begin enforce and implement the riparian protection and water quality practices under section new text end 44.13 new text begin 103F.48. Aid to each county shall equal: (1) each county's share of the total number of new text end 44.14 new text begin acres in the state classified as class 2a under section 273.13, subdivision 23, divided by new text end 44.15 new text begin two; plus (2) each county's share of the number of miles of shoreline of public water new text end 44.16 new text begin basins, each county's share of the number of centerline miles of public watercourses, and new text end 44.17 new text begin each county's share of the number of miles of public drainage system ditches established new text end 44.18 new text begin under chapter 103E, divided by two; multiplied by (3) $10,000,000. new text end 44.19 new text begin (b) Aid to a county shall not be greater than $200,000 or less than $25,000. If the new text end 44.20 new text begin sum of aids payable to counties under paragraph (a) is greater or less than the limit under new text end 44.21 new text begin subdivision 4, the commissioner of revenue shall calculate the percentage adjustment new text end 44.22 new text begin necessary so that the total of the aid under paragraph (a) equals the total amount available new text end 44.23 new text begin for aid under subdivision 4. new text end 44.24     new text begin Subd. 3. new text end new text begin Payments. new text end new text begin The commissioner of revenue must compute the amount of new text end 44.25 new text begin riparian protection aid payable to each county under this section. On or before July 1 of new text end 44.26 new text begin each year, the commissioner of natural resources shall certify to the commissioner of new text end 44.27 new text begin revenue the statewide and countywide total of miles of shoreline of public waters basins, new text end 44.28 new text begin the number of centerline miles of public watercourses, and the miles of public drainage new text end 44.29 new text begin system ditches. On or before August 1 of each year, the commissioner shall certify new text end 44.30 new text begin the amount to be paid to each county in the following year. The commissioner shall new text end 44.31 new text begin pay riparian protection aid to counties in the same manner and at the same time as aid new text end 44.32 new text begin payments under section 477A.015. new text end 44.33     new text begin Subd. 4. new text end new text begin Appropriation. new text end new text begin $10,000,000 for aids payable in 2017 and each year new text end 44.34 new text begin thereafter is appropriated from the general fund to the commissioner of revenue to make new text end 44.35 new text begin the payments required under this section. new text end 45.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with aids payable in 2017 new text end 45.2 new text begin and thereafter. new text end 45.3    Sec. 6. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, 45.4article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154, 45.5article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read: 45.6    Sec. 3. TAX; PAYMENT OF EXPENSES. 45.7    (a) The tax levied by the hospital district under Minnesota Statutes, section 447.34, 45.8must not be levied at a rate that exceeds the amount authorized to be levied under that 45.9section. The proceeds of the tax may be used for all purposes of the hospital district, 45.10except as provided in paragraph (b). 45.11    (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by 45.12the Cook ambulance service and the Orr ambulance service for the purpose of: 45.13    (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance 45.14service; 45.15    (2) attached and portable equipment for use in and for the ambulances; and 45.16    (3) parts and replacement parts for maintenance and repair of the ambulances new text begin , and new text end 45.17 new text begin administrative, operation, or salary expenses for the Cook ambulance service and the new text end 45.18 new text begin Orr ambulance service new text end . 45.19The money may not be used for administrative, operation, or salary expenses. 45.20    (c) The part of the levy referred to in paragraph (b) must be administered by the 45.21Cook Hospital and passed on in equal amounts directly to the Cook area ambulance 45.22service board and the city of Orr to be used for the purposes in paragraph (b). 45.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 45.24    Sec. 7. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by 45.25Laws 2013, chapter 143, article 4, section 36, is amended to read: 45.26    Subdivision 1. Agreement. The city of Cloquet and Perch Lake Township, by 45.27resolution of each of their governing bodies, may establish the Cloquet Area Fire and 45.28Ambulance new text begin Special new text end Taxing District for the purpose of providing fire or ambulance 45.29services, or both, throughout the district. In this section, "municipality" means home rule 45.30charter and statutory cities, towns, and Indian tribes. The district may exercise all the 45.31powers relating to fire and ambulance services of the municipalities that receive fire or 45.32ambulance services, or both, from the district. Upon application, any other municipality 46.1may join the district with the agreement of the municipalities that comprise the district at 46.2the time of its application to join. 46.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective in Cloquet and Perch Lake Township new text end 46.4 new text begin the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the new text end 46.5 new text begin governing body of each. new text end 46.6    Sec. 8. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read: 46.7    Subd. 2. Board. The Cloquet Area Fire and Ambulance new text begin Special new text end Taxing District 46.8Board is governed by a board made up initially of one or more elected officials of the 46.9governing body of each participating municipality in the proportions set out in the 46.10establishing resolution, subject to change as provided in the district's charter, if any, or 46.11in the district's bylaws. Each municipality's representatives serve at the pleasure of that 46.12municipality's governing body. 46.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective in Cloquet and Perch Lake Township new text end 46.14 new text begin the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the new text end 46.15 new text begin governing body of each. new text end 46.16    Sec. 9. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by 46.17Laws 2013, chapter 143, article 4, section 37, is amended to read: 46.18    Subd. 3. Tax. new text begin (a) new text end The district board may impose a property tax on taxable property 46.19as provided in this subdivision new text begin to pay the costs of providing fire or ambulance services, new text end 46.20 new text begin or both, throughout the district new text end . The board shall annually determine the total amount of 46.21the levy that is attributable to the cost of providing fire services and the cost of providing 46.22ambulance services within the primary service area. For those municipalities that only 46.23receive ambulance services, the costs for the provision of ambulance services shall 46.24be levied against taxable property within those municipalities at a rate necessary not to 46.25exceed 0.019 percent of the estimated market value. For those municipalities that receive 46.26both fire and ambulance services, the tax shall be imposed at a rate that does not exceed 46.270.2835 percent of estimated market value. 46.28 new text begin (b) new text end When a member municipality opts to receive fire service from the district or 46.29an additional municipality becomes a member of the district, the cost of providing fire 46.30services to that community shall be determined by the board and added to the maximum 46.31levy amount. 46.32 new text begin (c) new text end Each county auditor of a county that contains a municipality subject to the tax 46.33under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing 47.1District. The district may also impose other fees or charges as allowed by law for the 47.2provision of fire and ambulance services. 47.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective in Cloquet and Perch Lake Township new text end 47.4 new text begin the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the new text end 47.5 new text begin governing body of each. new text end 47.6    Sec. 10. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read: 47.7    Subd. 4. Public indebtedness. new text begin (a) new text end The district may incur debt in the manner 47.8provided for a municipality by Minnesota Statutes, chapter 475, new text begin and may issue certificates new text end 47.9 new text begin of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes, new text end 47.10 new text begin section 412.301, new text end when necessary to accomplish its duties new text begin , except that the district may new text end 47.11 new text begin not incur debt or issue obligations until first obtaining the approval of a majority of the new text end 47.12 new text begin electors voting on the question of issuing the obligation. The debt service for debt used to new text end 47.13 new text begin finance capital costs for ambulance service shall be levied against taxable property within new text end 47.14 new text begin the municipalities in the primary service area. The debt service for debt used to finance new text end 47.15 new text begin capital costs for fire service shall be levied against taxable property within municipalities new text end 47.16 new text begin receiving fire services. The district board shall pledge its full faith and credit and taxing new text end 47.17 new text begin power without limitation as to rate or amount for the payment of the district's debt new text end . 47.18 new text begin (b) For purposes of this subdivision, "municipality" has the definition given in new text end 47.19 new text begin Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph new text end 47.20 new text begin (c). new text end 47.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective in Cloquet and Perch Lake Township new text end 47.22 new text begin the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the new text end 47.23 new text begin governing body of each. new text end 47.24    Sec. 11. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read: 47.25    Subd. 5. Withdrawal. Notice of intent to withdraw from participation in the district 47.26may be given only in the month of January, with a minimum of twelve months notice of 47.27intent to withdraw. Withdrawal becomes effective for taxes levied new text begin pursuant to subdivision new text end 47.28 new text begin 3 new text end in the year when the notice is given. new text begin A property tax on taxable property located in a new text end 47.29 new text begin withdrawing municipality that has been levied by the district pursuant to subdivision 4 new text end 47.30 new text begin remains in effect until the obligations outstanding on the date of withdrawal are satisfied, new text end 47.31 new text begin including any property tax levied in connection with refunding such obligations. new text end The 47.32district and its members may new text begin also new text end develop and agree upon new text begin other new text end continuing obligations 47.33after withdrawal of a municipality. 48.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective in Cloquet and Perch Lake Township new text end 48.2 new text begin the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the new text end 48.3 new text begin governing body of each. new text end 48.4    Sec. 12. new text begin 2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE new text end 48.5 new text begin WAIVER. new text end 48.6 new text begin If a city or town that conducts local board of appeal and equalization meetings new text end 48.7 new text begin certified by February 1, 2016, that it was in compliance with the requirements of new text end 48.8 new text begin Minnesota Statutes, section 274.014, subdivision 2, but no member of the local board new text end 48.9 new text begin who has attended an appeal and equalization course training within the preceding four new text end 48.10 new text begin years attended the local board's meeting for 2016, that local board shall have its powers new text end 48.11 new text begin reinstated for the 2017 assessment by resolution of the governing body of the city or new text end 48.12 new text begin town, and by certifying it is in compliance with the requirements of Minnesota Statutes, new text end 48.13 new text begin section 274.014, subdivision 2. The resolution and certification must be provided to new text end 48.14 new text begin the county assessor by February 1, 2017. new text end 48.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 48.16    Sec. 13. new text begin LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT new text end 48.17 new text begin RECOMMENDATION. new text end 48.18 new text begin The commissioner of revenue must prepare a written recommendation to the house new text end 48.19 new text begin of representatives and senate taxes committees regarding the potential use of property tax new text end 48.20 new text begin abatements in providing economic relief for businesses in the vicinity of Lake Mille Lacs new text end 48.21 new text begin that were negatively affected by early closing of the walleye fishing season in 2015. The new text end 48.22 new text begin recommendations must include: new text end 48.23 new text begin (1) a proposed definition of an economic relief area in the vicinity of the lake; new text end 48.24 new text begin (2) an overview of the impact of the early closing on businesses in the relief area; new text end 48.25 new text begin (3) a discussion of the economic benefits a property tax abatement program would new text end 48.26 new text begin provide to businesses in the relief area; and new text end 48.27 new text begin (4) parameters for an abatement program. new text end 48.28 new text begin The recommendation required under this section is due by January 2, 2017. new text end 48.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 48.30    Sec. 14. new text begin SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL new text end 48.31 new text begin ASSESSMENT. new text end 49.1 new text begin Any real or personal property acquired, owned, leased, controlled, used, or occupied new text end 49.2 new text begin by the city of St. Paul for the primary purpose of providing a stadium for a Major League new text end 49.3 new text begin Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for new text end 49.4 new text begin public, governmental, and municipal purposes, and is exempt from ad valorem taxation by new text end 49.5 new text begin the state or any political subdivision of the state, provided that the properties are subject to new text end 49.6 new text begin special assessments levied by a political subdivision for a local improvement in amounts new text end 49.7 new text begin proportionate to and not exceeding the special benefit received by the properties from the new text end 49.8 new text begin improvement. In determining the special benefit received by the properties, no possible new text end 49.9 new text begin use of any of the properties in any manner different from their intended use for providing a new text end 49.10 new text begin Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota new text end 49.11 new text begin Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a new text end 49.12 new text begin lease or use agreement between the city and another person for uses related to the purposes new text end 49.13 new text begin of the operation of the stadium and related parking facilities is exempt from taxation new text end 49.14 new text begin regardless of the length of the lease or use agreement. This section, insofar as it provides new text end 49.15 new text begin an exemption or special treatment, does not apply to any real property that is leased for new text end 49.16 new text begin residential, business, or commercial development or other purposes different from those new text end 49.17 new text begin necessary to the provision and operation of the stadium. new text end 49.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the St. Paul City new text end 49.19 new text begin Council and compliance with Minnesota Statutes, section 645.021. new text end 49.20    Sec. 15. new text begin APPROPRIATION. new text end 49.21 new text begin $1,200,000 in fiscal year 2016 is appropriated from the general fund to the new text end 49.22 new text begin commissioner of revenue for a grant to the city of Madelia that shall be paid by June new text end 49.23 new text begin 30, 2016. This appropriation is onetime. new text end 49.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 49.25ARTICLE 4 49.26LOCAL DEVELOPMENT 49.27    Section 1. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to 49.28read: 49.29    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 49.30financing plan for a district, the rules under this section apply to a redevelopment district, 49.31renewal and renovation district, new text begin economic development district, new text end soil condition district, 49.32or a soil deficiency district established by the city or a development authority of the city 49.33in the project area. 50.1    (b) Prior to or upon the adoption of the first tax increment plan subject to the special 50.2rules under this subdivision, the city must find by resolution that parcels consisting of at 50.3least 80 percent of the acreage of the project area (excluding street and railroad right of 50.4way) are characterized by one or more of the following conditions: 50.5    (1) peat or other soils with geotechnical deficiencies that impair development of 50.6residential or commercial buildings or infrastructure; 50.7    (2) soils or terrain that requires substantial filling in order to permit the development 50.8of commercial or residential buildings or infrastructure; 50.9    (3) landfills, dumps, or similar deposits of municipal or private waste; 50.10    (4) quarries or similar resource extraction sites; 50.11    (5) floodway; and 50.12    (6) substandard buildings within the meaning of Minnesota Statutes, section 50.13469.174, subdivision 10 . 50.14    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to 50.15be characterized by the relevant condition if at least 70 percent of the area of the parcel 50.16contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is 50.17deemed to be characterized by substandard buildings if the buildings occupy at least 30 50.18percent of the area of the parcel. 50.19    (d) new text begin The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, new text end 50.20 new text begin is extended to nine years for any district. new text end The five-year rule under Minnesota Statutes, 50.21section 469.1763, subdivision 3, is extended to ten years for any district, and section 50.22469.1763, subdivision 4 , does not apply to any district. 50.23    (e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, 50.24paragraph (a), not more than 80 percent of the total revenue derived from tax increments 50.25paid by properties in any district (measured over the life of the district) may be expended 50.26on activities outside the district but within the project area. 50.27    (f) For a soil deficiency district: 50.28    (1) increments may be collected through 20 years after the receipt by the authority of 50.29the first increment from the district; and 50.30    (2) except as otherwise provided in this subdivision, increments may be used only to: 50.31    (i) acquire parcels on which the improvements described in item (ii) will occur; 50.32    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the 50.33additional cost of installing public improvements directly caused by the deficiencies; and 50.34    (iii) pay for the administrative expenses of the authority allocable to the district. 51.1    (g) Increments spent for any infrastructure costs, whether inside a district or outside 51.2a district but within the project area, are deemed to satisfy the requirements of paragraph 51.3(f) and Minnesota Statutes, section 469.176, subdivisions 4b new text begin , 4c, new text end and 4j. 51.4    (h) Increments from any district may not be used to pay the costs of landfill closure or 51.5public infrastructure located on the following parcels within the plat known as Burnsville 51.6Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D. 51.7    (i) The authority to approve tax increment financing plans to establish tax increment 51.8financing districts under this section expires on December 31, 2018 new text begin 2020 new text end . 51.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 51.10 new text begin of the city of Burnsville and compliance with the requirements of Minnesota Statutes, new text end 51.11 new text begin section 645.021. new text end 51.12    Sec. 2. Laws 2014, chapter 308, article 6, section 9, is amended to read: 51.13    Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING 51.14DISTRICT. 51.15    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms 51.16have the meanings given them. 51.17(b) "City" means the city of Maple Grove. 51.18(c) "Project area" means new text begin all or a portion of new text end the area in the city commencing at a point 51.19130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of 51.20Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly 51.21right-of-way line of Hemlock Lane; thence northerly along said easterly right-of-way line 51.22of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of 51.23section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the 51.24east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South 51.2574 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees 51.26West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line 51.27of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of 51.28the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795 51.29feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of 51.30Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the 51.31Northwest Quarter of Section 24; thence West along said south line to the east right-of-way 51.32line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to 51.33the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence 51.34East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan 51.35Industrial Park 5th Addition; thence South along the east line of said Outlot A and its 52.1southerly extension to the south right-of-way line of County State-Aid Highway (CSAH) 52.2109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the 52.3Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east 52.4line to the north line of the South Half of the Northeast Quarter of Section 24; thence East 52.5along said north line to the westerly right-of-way line of Jefferson Highway North; thence 52.6southerly along the westerly right-of-way line of Jefferson Highway to the centerline of 52.7CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane 52.8North to the westerly extension of the north line of Outlot A, Park North Fourth Addition; 52.9thence easterly along the north line of Outlot A, Park North Fourth Addition to the 52.10northeast corner of said Outlot A; thence southerly along the east line of said Outlot A 52.11to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1, 52.12Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway 52.13169; thence southerly, southwesterly, westerly, and northwesterly along the westerly 52.14right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate 52.15694 to its intersection with the southerly extension of the easterly right-of-way line of 52.16Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 52.17Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 52.18westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 52.19and there terminating, provided that the project area includes the rights-of-way for all 52.20present and future highway interchanges abutting the area described in this paragraph new text begin , and new text end 52.21 new text begin may include any additional property necessary to cause the property included in the tax new text end 52.22 new text begin increment financing district to consist of complete parcels new text end . 52.23(d) "Soil deficiency district" means a type of tax increment financing district 52.24consisting of a portion of the project area in which the city finds by resolution that the 52.25following conditions exist: 52.26(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 52.27the district require substantial filling, grading, or other physical preparation for use; and 52.28(2) the estimated cost of the physical preparation under clause (1), but excluding 52.29costs directly related to roads as defined in Minnesota Statutes, section 160.01, and 52.30local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, 52.31clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land 52.32before completion of the preparation. 52.33    Subd. 2. Special rules. (a) If the city elects, upon the adoption of the tax increment 52.34financing plan for a district, the rules under this section apply to a redevelopment 52.35district, renewal and renovation district, soil condition district, or soil deficiency district 52.36established by the city or a development authority of the city in the project area. 53.1(b) Prior to or upon the adoption of the first tax increment plan subject to the special 53.2rules under this subdivision, the city must find by resolution that parcels consisting 53.3of at least 80 percent of the acreage of the project area, excluding street and railroad 53.4rights-of-way, are characterized by one or more of the following conditions: 53.5(1) peat or other soils with geotechnical deficiencies that impair development of 53.6commercial buildings or infrastructure; 53.7(2) soils or terrain that require substantial filling in order to permit the development 53.8of commercial buildings or infrastructure; 53.9(3) landfills, dumps, or similar deposits of municipal or private waste; 53.10(4) quarries or similar resource extraction sites; 53.11(5) floodway; and 53.12(6) substandard buildings, within the meaning of Minnesota Statutes, section 53.13469.174, subdivision 10 . 53.14(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by 53.15the relevant condition if at least 70 percent of the area of the parcel contains the relevant 53.16condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 53.17substandard buildings if substandard buildings occupy at least 30 percent of the area 53.18of the parcel. 53.19(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, 53.20is extended to eight years for any district, and Minnesota Statutes, section 469.1763, 53.21subdivision 4 , does not apply to any district. 53.22(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 53.23469.1763, subdivision 2 , paragraph (a), not more than 40 percent of the total revenue 53.24derived from tax increments paid by properties in any district, measured over the life of 53.25the district, may be expended on activities outside the district but within the project area. 53.26(f) For a soil deficiency district: 53.27(1) increments may be collected through 20 years after the receipt by the authority of 53.28the first increment from the district; 53.29(2) increments may be used only to: 53.30(i) acquire parcels on which the improvements described in item (ii) will occur; 53.31(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the 53.32additional cost of installing public improvements directly caused by the deficiencies; and 53.33(iii) pay for the administrative expenses of the authority allocable to the district; and 53.34(3) any parcel acquired with increments from the district must be sold at no less 53.35than their fair market value. 54.1(g) Increments spent for any infrastructure costs, whether inside a district or outside 54.2a district but within the project area, are deemed to satisfy the requirements of Minnesota 54.3Statutes, section 469.176, subdivision 4j. 54.4(h) The authority to approve tax increment financing plans to establish tax increment 54.5financing districts under this section expires June 30, 2020. 54.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing new text end 54.7 new text begin body of the city of Maple Grove and compliance with the requirements of Minnesota new text end 54.8 new text begin Statutes, section 645.021. new text end 54.9    Sec. 3. new text begin CITY OF ANOKA; TIF DISTRICT. new text end 54.10 new text begin For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), new text end 54.11 new text begin the city of Anoka's Greens of Anoka redevelopment tax increment financing district is new text end 54.12 new text begin deemed to be certified on June 29, 2012, rather than its actual certification date of July 2, new text end 54.13 new text begin 2012, and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, new text end 54.14 new text begin apply as if the district were certified on that date. new text end 54.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective upon approval by the governing body new text end 54.16 new text begin of the city of Anoka and upon compliance by the city with Minnesota Statutes, section new text end 54.17 new text begin 645.021, subdivisions 2 and 3. new text end 54.18    Sec. 4. new text begin CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW. new text end 54.19 new text begin Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision new text end 54.20 new text begin 3, the chief clerical officer of the city of Edina may file the city's certificate of its approval new text end 54.21 new text begin of Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate new text end 54.22 new text begin is so filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3, new text end 54.23 new text begin are otherwise complied with, the special law is deemed approved, and all actions taken new text end 54.24 new text begin by the city prior to the effective date of this section in reliance on Laws 2014, chapter new text end 54.25 new text begin 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article new text end 54.26 new text begin 6, section 8, and this act. new text end 54.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 54.28 new text begin without local approval as an amendment to the provisions of Laws 2014, chapter 308, new text end 54.29 new text begin article 6, section 8. new text end 54.30    Sec. 5. new text begin CITY OF NORTHFIELD; TAX INCREMENT FINANCING. new text end 54.31 new text begin The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that new text end 54.32 new text begin activities must be undertaken within a five-year period from the date of certification of a new text end 55.1 new text begin tax increment financing district, are considered to be met for the Riverfront Tax Increment new text end 55.2 new text begin Financing District in the city of Northfield, if the activities are undertaken prior to July new text end 55.3 new text begin 12, 2017. new text end 55.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the governing body of new text end 55.5 new text begin the city of Northfield and its chief clerical officer comply with Minnesota Statutes, section new text end 55.6 new text begin 645.021, subdivisions 2 and 3. new text end 55.7ARTICLE 5 55.8IRON RANGE RESOURCES AND REHABILITATION BOARD 55.9    Section 1. Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read: 55.10    Subd. 7. Iron Range resources and rehabilitation Board. new text begin After seeking new text end 55.11 new text begin a recommendation from the Iron Range Resources and Rehabilitation Board, new text end the 55.12 new text begin commissioner of new text end Iron Range resources and rehabilitation Board may purchase insurance it 55.13considers new text begin the commissioner deems new text end necessary and appropriate to insure facilities operated 55.14by the board. 55.15    Sec. 2. Minnesota Statutes 2014, section 116J.424, is amended to read: 55.16116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD 55.17CONTRIBUTION. 55.18The commissioner of the Iron Range resources and rehabilitation Board with 55.19approval by the board, shall provide an equal match for any loan or equity investment 55.20made for a facility located in the tax relief area defined in section 273.134, paragraph (b), 55.21by the Minnesota minerals 21st century fund created by section 116J.423. The match may 55.22be in the form of a loan or equity investment, notwithstanding whether the fund makes 55.23a loan or equity investment. The state shall not acquire an equity interest because of an 55.24equity investment or loan by the board new text begin under this section new text end and the board at its sole discretion new text begin new text end 55.25 new text begin commissioner, after consultation with the Iron Range Resources and Rehabilitation Board, new text end 55.26shall new text begin have the sole discretion to new text end decide what interest it new text begin the board new text end acquires in a project. The 55.27commissioner of employment and economic development may require a commitment 55.28from the board new text begin commissioner new text end to make the match prior to disbursing money from the fund. 55.29    Sec. 3. Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read: 55.30    Subdivision 1. Definitions. (a) For purposes of this section, the following terms 55.31have the meanings given them in this subdivision. 56.1(b) "Area development rate" means a rate schedule established by a utility that 56.2provides customers within an area development zone service under a base utility rate 56.3schedule, except that charges may be reduced from the base rate as agreed upon by the 56.4utility and the customer consistent with this section. 56.5(c) "Area development zone" means a contiguous or noncontiguous area designated 56.6by an authority or municipality for development or redevelopment and within which one 56.7of the following conditions exists: 56.8(1) obsolete buildings not suitable for improvement or conversion or other identified 56.9hazards to the health, safety, and general well-being of the community; 56.10(2) buildings in need of substantial rehabilitation or in substandard condition; or 56.11(3) low values and damaged investments. 56.12(d) "Authority" means a rural development financing authority established under 56.13sections 469.142 to 469.151; a housing and redevelopment authority established under 56.14sections 469.001 to 469.047; a port authority established under sections 469.048 to 56.15469.068 ; an economic development authority established under sections 469.090 56.16to 469.108; a redevelopment agency as defined in sections 469.152 to 469.165; the 56.17 new text begin commissioner of new text end Iron Range resources and rehabilitation new text begin , acting after consultation new text end 56.18 new text begin with the new text end board established under section 298.22; a municipality that is administering a 56.19development district created under sections 469.124 to 469.133 or any special law; a 56.20municipality that undertakes a project under sections 469.152 to 469.165, except a town 56.21located outside the metropolitan area as defined in section 473.121, subdivision 2, or with 56.22a population of 5,000 persons or less; or a municipality that exercises the powers of a port 56.23authority under any general or special law. 56.24(e) "Municipality" means a city, however organized, and, with respect to a project 56.25undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in 56.26sections 469.152 to 469.165, and, with respect to a project undertaken under sections 56.27469.142 to 469.151 or a county or multicounty project undertaken under sections 469.004 56.28to 469.008, also includes any county. 56.29    Sec. 4. Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read: 56.30    Subd. 8. Municipality. "Municipality" means a city, town, or township located 56.31in whole or part within the area. If a municipality is located partly within and partly 56.32without the area, the references in sections 276A.01 to 276A.09 to property or any portion 56.33thereof subject to taxation or taxing jurisdiction within the municipality are to the property 56.34or portion thereof that is located in that portion of the municipality within the area, 56.35except that the fiscal capacity of the municipality must be computed upon the basis of the 57.1valuation and population of the entire municipality. A municipality shall be excluded from 57.2the area if its municipal comprehensive zoning and planning policies conscientiously 57.3exclude most commercial-industrial development, for reasons other than preserving an 57.4agricultural use. The new text begin commissioner of new text end Iron Range resources and rehabilitation Board and 57.5the commissioner of revenue shall jointly make this determination annually and shall 57.6notify those municipalities that are ineligible to participate in the tax base sharing program 57.7provided in this chapter for the following year. new text begin Before making the joint determination, the new text end 57.8 new text begin commissioner of Iron Range resources and rehabilitation shall seek a recommendation new text end 57.9 new text begin from the Iron Range Resources and Rehabilitation Board. new text end 57.10    Sec. 5. Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read: 57.11    Subd. 17. School fund allocation. (a) "School fund allocation" means an amount up 57.12to 25 percent of the areawide levy certified by the new text begin commissioner of Iron Range resources new text end 57.13 new text begin and rehabilitation, after seeking a recommendation from the new text end Iron Range Resources and 57.14Rehabilitation Board new text begin , new text end to be used for the purposes of the Iron Range school consolidation 57.15and cooperatively operated school account under section 298.28, subdivision 7a. 57.16(b) The allocation under paragraph (a) shall only be made after the new text begin commissioner of new text end 57.17 new text begin Iron Range resources and rehabilitation, after seeking a recommendation from the new text end Iron 57.18Range Resources and Rehabilitation Board new text begin , new text end has certified by June 30 that the Iron Range 57.19school consolidation and cooperatively operated account has insufficient funds to make 57.20payments as authorized under section 298.28, subdivision 7a. 57.21    Sec. 6. Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read: 57.22    Subdivision 1. Development. In any county where the county board by proper 57.23resolution sets aside funds for forest development pursuant to section 282.08, clause (5), 57.24item (i), or section 459.06, subdivision 2, the commissioner of Iron Range resources 57.25and rehabilitation with the approval of the new text begin , after seeking a recommendation from the new text end 57.26 new text begin Iron Range Resources and Rehabilitation new text end Board new text begin , new text end may upon request of the county board 57.27assist said county in carrying out any project for the long range development of its forest 57.28resources through matching of funds or otherwise. 57.29    Sec. 7. Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read: 57.30    Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue 57.31of the state of Minnesota new text begin , except that when used in sections 298.22 to 298.227, and new text end 57.32 new text begin 298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources new text end 57.33 new text begin and rehabilitation new text end . 58.1    Sec. 8. Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read: 58.2    Subd. 1a. Iron Range Resources and Rehabilitation Board. The Iron Range 58.3Resources and Rehabilitation Board consists of the state senators and representatives 58.4elected from state senatorial or legislative districts in which one-third or more of the 58.5residents reside in a taconite assistance area as defined in section 273.1341. One additional 58.6state senator shall also be appointed by the senate Subcommittee on Committees of the 58.7Committee on Rules and Administration. All expenditures and projects made by the 58.8commissioner shall first be submitted to the board for approval. new text begin The board shall recommend new text end 58.9 new text begin approval or disapproval or modification of the expenditures and projects. new text end The expenses 58.10of the board shall be paid by the state from the funds raised pursuant to this section. 58.11Members of the board may be reimbursed for expenses in the manner provided in sections 58.123.099 , subdivision 1, and 3.101, and may receive per diem payments during the interims 58.13between legislative sessions in the manner provided in section 3.099, subdivision 1. 58.14The members shall be appointed in January of every odd-numbered year, and shall 58.15serve until January of the next odd-numbered year. Vacancies on the board shall be filled 58.16in the same manner as original members were chosen. 58.17    Sec. 9. Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read: 58.18    Subd. 5a. Forest trust. The commissioner, upon approval by new text begin after requesting a new text end 58.19 new text begin recommendation from new text end the board, may purchase forest lands in the taconite assistance area 58.20defined in under section 273.1341 with funds specifically authorized for the purchase. The 58.21acquired forest lands must be held in trust for the benefit of the citizens of the taconite 58.22assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall 58.23be managed and developed for recreation and economic development purposes. The 58.24commissioner, upon approval by new text begin after requesting a recommendation from new text end the board, 58.25may sell forest lands purchased under this subdivision if the board finds new text begin commissioner new text end 58.26 new text begin determines new text end that the sale advances the purposes of the trust. Proceeds derived from the 58.27management or sale of the lands and from the sale of timber or removal of gravel or 58.28other minerals from these forest lands shall be deposited into an Iron Range Miners' 58.29Memorial Forest account that is established within the state financial accounts. Funds may 58.30be expended from the account upon approval by new text begin after the commissioner has sought a new text end 58.31 new text begin recommendation from new text end the board, to purchase, manage, administer, convey interests in, 58.32and improve the forest lands. With approval by new text begin After the commissioner has sought a new text end 58.33 new text begin recommendation from new text end the board, money in the Iron Range Miners' Memorial Forest 58.34account may be transferred into the corpus of the Douglas J. Johnson economic protection 58.35trust fund established under sections 298.291 to 298.294. The property acquired under 59.1the authority granted by this subdivision and income derived from the property or the 59.2operation or management of the property are exempt from taxation by the state or its 59.3political subdivisions while held by the forest trust. 59.4    Sec. 10. Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read: 59.5    Subd. 6. Private entity participation. new text begin After seeking a recommendation from new text end the 59.6board new text begin , the commissioner new text end may acquire an equity interest in any project for which it new text begin the new text end 59.7 new text begin commissioner new text end provides funding. The commissioner may establish, participate in the 59.8management of, and dispose of the assets of charitable foundations, nonprofit limited 59.9liability companies, and nonprofit corporations associated with any project for which it 59.10provides funding, including specifically, but without limitation, a corporation within the 59.11meaning of section 317A.011, subdivision 6. 59.12    Sec. 11. Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read: 59.13    Subd. 8. Spending priority. In making or approving new text begin recommending new text end any 59.14expenditures on programs or projects, the commissioner and the board shall give the 59.15highest priority to programs and projects that target relief to those areas of the taconite 59.16assistance area as defined in section 273.1341, that have the largest percentages of job 59.17losses and population losses directly attributable to the economic downturn in the taconite 59.18industry since the 1980s. The commissioner and the board shall compare the 1980 59.19population and employment figures with the 2000 population and employment figures, 59.20and shall specifically consider the job losses in 2000 and 2001 resulting from the closure 59.21of LTV Steel Mining Company, in making or approving new text begin recommending new text end expenditures 59.22consistent with this subdivision, as well as the areas of residence of persons who suffered 59.23job loss for which relief is to be targeted under this subdivision. The commissioner 59.24may lease, for a term not exceeding 50 years and upon the terms determined by the 59.25commissioner and approved new text begin after seeking review new text end by the board, surface and mineral 59.26interests owned or acquired by the state of Minnesota acting by and through the office of 59.27the commissioner of Iron Range resources and rehabilitation within those portions of the 59.28taconite assistance area affected by the closure of the LTV Steel Mining Company facility 59.29near Hoyt Lakes. The payments and royalties from these leases must be deposited into the 59.30fund established in section 298.292. This subdivision supersedes any other conflicting 59.31provisions of law and does not preclude the commissioner and the board from making 59.32expenditures for programs and projects in other areas new text begin after seeking review by the board new text end . 59.33    Sec. 12. Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read: 60.1    Subd. 10. Sale or privatization of functions. The commissioner of Iron 60.2Range resources and rehabilitation may not sell or privatize the Ironworld Discovery 60.3Center or Giants Ridge Golf and Ski Resort without prior approval by new text begin first seeking a new text end 60.4 new text begin recommendation from new text end the board. 60.5    Sec. 13. Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read: 60.6    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation 60.7shall annually prepare a budget for operational expenditures, programs, and projects, and 60.8submit it to the Iron Range Resources and Rehabilitation Board new text begin for a recommendation new text end . 60.9After the budget is approved by the board and the governor, the commissioner may spend 60.10money in accordance with the approved budget. 60.11    Sec. 14. Minnesota Statutes 2014, section 298.221, is amended to read: 60.12298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION. 60.13(a) Except as provided in paragraph (c), all money paid to the state of Minnesota 60.14pursuant to the terms of any contract entered into by the state under authority of section 60.15298.22 and any fees which may, in the discretion of the commissioner of Iron Range 60.16resources and rehabilitation, be charged in connection with any project pursuant to that 60.17section as amended, shall be deposited in the state treasury to the credit of the Iron Range 60.18Resources and Rehabilitation Board account in the special revenue fund and are hereby 60.19appropriated for the purposes of section 298.22. 60.20(b) Notwithstanding section 16A.013, merchandise may be accepted by the 60.21commissioner of the Iron Range Resources and Rehabilitation Board for payment of 60.22advertising contracts if the commissioner determines that the merchandise can be used 60.23for special event prizes or mementos at facilities operated by the board. Nothing in this 60.24paragraph authorizes the commissioner or a member of the board to receive merchandise 60.25for personal use. 60.26(c) All fees charged by the commissioner in connection with public use of the 60.27state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other 60.28revenues derived by the commissioner from the operation or lease of those facilities 60.29and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge 60.30Recreation Area must be deposited into an Iron Range Resources and Rehabilitation 60.31Board account that is created within the state enterprise fund. All funds deposited in the 60.32enterprise fund account are appropriated to the commissioner to be expended, subject to 60.33approval by new text begin after seeking a recommendation from new text end the board, as follows: 61.1(1) to pay costs associated with the construction, equipping, operation, repair, or 61.2improvement of the Giants Ridge Recreation Area facilities or lands; 61.3(2) to pay principal, interest and associated bond issuance, reserve, and servicing 61.4costs associated with the financing of the facilities; and 61.5(3) to pay the costs of any other project authorized under section 298.22. 61.6    Sec. 15. Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read: 61.7    Subd. 3. Project approval. All projects authorized by this section shall be submitted 61.8by the commissioner to the Iron Range Resources and Rehabilitation Board for approval 61.9by new text begin a recommendation from new text end the board. Prior to the commencement of a project involving 61.10the exercise by the commissioner of any authority of sections 469.174 to 469.179, the 61.11governing body of each municipality in which any part of the project is located and the 61.12county board of any county containing portions of the project not located in an incorporated 61.13area shall by majority vote approve or disapprove the project. Any project approved by 61.14the board new text begin commissioner new text end and the applicable governing bodies, if any, together with detailed 61.15information concerning the project, its costs, the sources of its funding, and the amount of 61.16any bonded indebtedness to be incurred in connection with the project, shall be transmitted 61.17to the governor, who shall approve, disapprove, or return the proposal for additional 61.18consideration within 30 days of receipt. No project authorized under this section shall be 61.19undertaken, and no obligations shall be issued and no tax increments shall be expended for 61.20a project authorized under this section until the project has been approved by the governor. 61.21    Sec. 16. Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read: 61.22    Subd. 4. Project approval. new text begin After seeking a recommendation from new text end the board and new text begin , new text end 61.23 new text begin the new text end commissioner shall by August 1 each year prepare a list of projects to be funded from 61.24the money appropriated in this section with necessary supporting information including 61.25descriptions of the projects, plans, and cost estimates. A project must not be approved by 61.26the board new text begin commissioner new text end unless it new text begin the commissioner new text end finds that: 61.27(1) the project will materially assist, directly or indirectly, the creation of additional 61.28long-term employment opportunities; 61.29(2) the prospective benefits of the expenditure exceed the anticipated costs; and 61.30(3) in the case of assistance to private enterprise, the project will serve a sound 61.31business purpose. 61.32Each project must be approved by the board and the commissioner of Iron Range 61.33resources and rehabilitation. The list of projects must be submitted to the governor, 61.34who shall, by November 15 of each year, approve, disapprove, or return for further 62.1consideration, each project. The money for a project may be spent only upon approval of 62.2the project by the governor. The board new text begin commissioner new text end may submit supplemental projects 62.3for approval at any time new text begin , after seeking a recommendation from the board new text end . 62.4    Sec. 17. Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read: 62.5    Subd. 5. Advisory committees. Before submission to the board of a proposal for 62.6a project for expenditure of money appropriated under this section, The commissioner 62.7of Iron Range resources and rehabilitation shall appoint a technical advisory committee 62.8consisting of at least seven persons who are knowledgeable in areas related to the 62.9objectives of the proposal. If the project involves investment in a scientific research 62.10proposal, at least four of the committee members must be knowledgeable in the specific 62.11scientific research area relating to the project. Members of the committees must be 62.12compensated as provided in section 15.059, subdivision 3. The board new text begin commissioner new text end shall 62.13not act on a proposal new text begin for a request for expenditure of money appropriated under this new text end 62.14 new text begin section new text end until it has received new text begin the commissioner has sought review from the board of new text end the 62.15evaluation and recommendations of the technical advisory committee. 62.16    Sec. 18. Minnesota Statutes 2014, section 298.2213, subdivision 6, is amended to read: 62.17    Subd. 6. Use of repayments and earnings. Principal and interest received in 62.18repayment of loans made under this section must be deposited in the state treasury 62.19and are appropriated to the board for the purposes of this section new text begin northeast Minnesota new text end 62.20 new text begin economic development fund account in the special revenue fund in the state treasury. The new text end 62.21 new text begin commissioner of Iron Range resources and rehabilitation must seek a recommendation new text end 62.22 new text begin from the Iron Range Resources and Rehabilitation Board for any use of funds appropriated new text end 62.23 new text begin under this section new text end . 62.24    Sec. 19. Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read: 62.25    Subdivision 1. Creation; purposes. A fund called the taconite environmental 62.26protection fund is created for the purpose of reclaiming, restoring and enhancing those 62.27areas of northeast Minnesota located within the taconite assistance area defined in section 62.28273.1341 , that are adversely affected by the environmentally damaging operations 62.29involved in mining taconite and iron ore and producing iron ore concentrate and for the 62.30purpose of promoting the economic development of northeast Minnesota. The taconite 62.31environmental protection fund shall be used for the following purposes: 63.1(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation 63.2Board determines are in need of study and which will determine the environmental 63.3problems requiring remedial action; 63.4(2) reclamation, restoration, or reforestation of mine lands not otherwise provided 63.5for by state law; 63.6(3) local economic development projects but only if those projects are approved by 63.7the board new text begin commissioner after seeking a recommendation of the projects from the board new text end , 63.8and public works, including construction of sewer and water systems located within the 63.9taconite assistance area defined in section 273.1341; 63.10(4) monitoring of mineral industry related health problems among mining employees; 63.11(5) local public works projects under section 298.227, paragraph (c); and 63.12(6) local public works projects as provided under this clause. The following amounts 63.13shall be distributed in 2009 based upon the taxable tonnage of production in 2008: 63.14(i) .4651 cent per ton to the city of Aurora for street repair and renovation; 63.15(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure 63.16improvements to the south side industrial site; 63.17(iii) .6460 cent per ton to the city of Buhl for street repair; 63.18(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements; 63.19(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure 63.20upgrades; 63.21(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure 63.22upgrades; 63.23(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure; 63.24(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility 63.25modifications for the miners' memorial; 63.26(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades; 63.27(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects; 63.28(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair; 63.29(xii) .6460 cent per ton to the town of Balkan for community center repairs; 63.30(xiii) .9044 cent per ton to the city of Babbitt for city garage construction; 63.31(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects; 63.32(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West; 63.33(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades; 63.34(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades; 63.35(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup; 63.36(xix) .3230 cent per ton to Lake County for trail construction; 64.1(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand 64.2Marais; 64.3(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure 64.4improvements; 64.5(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project; 64.6(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer 64.7improvements along Gayley Avenue; 64.8(xxiv) .3876 cent per ton to the city of Marble for construction of a city 64.9administration facility; 64.10(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the 64.11community center; 64.12(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure 64.13upgrades; 64.14(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades 64.15along Depot Street; 64.16(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter 64.17improvements; 64.18(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer 64.19infrastructure upgrades at Pokegema Golf Course and Park Place; 64.20(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades 64.21for 1st Avenue from River Road to 3rd Street SE; and 64.22(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing 64.23at Highway 2 and County Road 62. 64.24    Sec. 20. Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read: 64.25    Subd. 2. Administration. (a) The taconite area environmental protection fund shall 64.26be administered by the commissioner of the Iron Range Resources and Rehabilitation 64.27Board. The commissioner shall by September 1 of each year submit to the board a list 64.28of projects to be funded from the taconite area environmental protection fund, with such 64.29supporting information including description of the projects, plans, and cost estimates as 64.30may be necessary. 64.31    (b) Each year no less than one-half of the amounts deposited into the taconite 64.32environmental protection fund must be used for public works projects, including 64.33construction of sewer and water systems, as specified under subdivision 1, clause (3). 64.34 new text begin After seeking a recommendation from new text end the Iron Range Resources and Rehabilitation Board new text begin , new text end 64.35 new text begin the commissioner new text end may waive the requirements of this paragraph. 65.1    (c) Upon approval by the board, The list of projects approved new text begin by the commissioner new text end 65.2under this subdivision new text begin , after the commissioner has sought review of the projects by the new text end 65.3 new text begin board, new text end shall be submitted to the governor by November 1 of each year. By December 1 of 65.4each year, the governor shall approve or disapprove, or return for further consideration, 65.5each project. Funds for a project may be expended only upon approval of the project by 65.6the board new text begin commissioner new text end and the governor. The commissioner may submit supplemental 65.7projects to the board and new text begin for approval from the new text end governor for approval new text begin after seeking review new text end 65.8 new text begin of the supplemental projects from the board new text end at any time. 65.9    Sec. 21. Minnesota Statutes 2014, section 298.227, is amended to read: 65.10298.227 TACONITE ECONOMIC DEVELOPMENT FUND. 65.11    (a) An amount equal to that distributed pursuant to each taconite producer's taxable 65.12production and qualifying sales under section 298.28, subdivision 9a, shall be held by 65.13the Iron Range Resources and Rehabilitation Board in a separate taconite economic 65.14development fund for each taconite and direct reduced ore producer. Money from the 65.15fund for each producer shall be released by the commissioner after review by a joint 65.16committee consisting of an equal number of representatives of the salaried employees and 65.17the nonsalaried production and maintenance employees of that producer. The District 11 65.18director of the United States Steelworkers of America, on advice of each local employee 65.19president, shall select the employee members. In nonorganized operations, the employee 65.20committee shall be elected by the nonsalaried production and maintenance employees. The 65.21review must be completed no later than six months after the producer presents a proposal 65.22for expenditure of the funds to the committee. The funds held pursuant to this section may 65.23be released only for workforce development and associated public facility improvement, 65.24or for acquisition of plant and stationary mining equipment and facilities for the producer 65.25or for research and development in Minnesota on new mining, or taconite, iron, or steel 65.26production technology, but only if the producer provides a matching expenditure equal to 65.27the amount of the distribution to be used for the same purpose beginning with distributions 65.28in 2014. Effective for proposals for expenditures of money from the fund beginning May 65.2926, 2007, the commissioner may not release the funds before the next scheduled meeting 65.30of the board. If a proposed expenditure is not approved by the new text begin commissioner, after new text end 65.31 new text begin seeking a recommendation from the new text end board, the funds must be deposited in the Taconite 65.32Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses 65.33money which has been released from the fund prior to May 26, 2007 to procure haulage 65.34trucks, mobile equipment, or mining shovels, and the producer removes the piece of 65.35equipment from the taconite tax relief area defined in section 273.134 within ten years 66.1from the date of receipt of the money from the fund, a portion of the money granted 66.2from the fund must be repaid to the taconite economic development fund. The portion 66.3of the money to be repaid is 100 percent of the grant if the equipment is removed from 66.4the taconite tax relief area within 12 months after receipt of the money from the fund, 66.5declining by ten percent for each of the subsequent nine years during which the equipment 66.6remains within the taconite tax relief area. If a taconite production facility is sold after 66.7operations at the facility had ceased, any money remaining in the fund for the former 66.8producer may be released to the purchaser of the facility on the terms otherwise applicable 66.9to the former producer under this section. If a producer fails to provide matching funds 66.10for a proposed expenditure within six months after the commissioner approves release 66.11of the funds, the funds are available for release to another producer in proportion to the 66.12distribution provided and under the conditions of this section. Any portion of the fund 66.13which is not released by the commissioner within one year of its deposit in the fund shall 66.14be divided between the taconite environmental protection fund created in section 298.223 66.15and the Douglas J. Johnson economic protection trust fund created in section 298.292 for 66.16placement in their respective special accounts. Two-thirds of the unreleased funds shall be 66.17distributed to the taconite environmental protection fund and one-third to the Douglas J. 66.18Johnson economic protection trust fund. 66.19    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 66.20distributions and the review process, an amount equal to ten cents per taxable ton of 66.21production in 2007, for distribution in 2008 only, that would otherwise be distributed 66.22under paragraph (a), may be used for a loan or grant for the cost of providing for a 66.23value-added wood product facility located in the taconite tax relief area and in a county 66.24that contains a city of the first class. This amount must be deducted from the distribution 66.25under paragraph (a) for which a matching expenditure by the producer is not required. The 66.26granting of the loan or grant is subject to approval by the board. If the money is provided 66.27as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213, 66.28subdivision 3 . (ii) Repayments of the loan and interest, if any, must be deposited in the 66.29taconite environment protection fund under sections 298.222 to 298.225. If a loan or 66.30grant is not made under this paragraph by July 1, 2012, the amount that had been made 66.31available for the loan under this paragraph must be transferred to the taconite environment 66.32protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the 66.33fund established under this section that exceeds ten cents per ton is available to qualifying 66.34producers under paragraph (a) on a pro rata basis. 66.35(c) Repayment or transfer of money to the taconite environmental protection fund 66.36under paragraph (b), item (ii), must be allocated by the new text begin commissioner of new text end Iron Range 67.1resources and rehabilitation new text begin , after seeking a recommendation from the Iron Range new text end 67.2 new text begin Resources and Rehabilitation new text end Board for public works projects in house legislative districts 67.3in the same proportion as taxable tonnage of production in 2007 in each house legislative 67.4district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for 67.5distribution in 2008. Notwithstanding any other law to the contrary, expenditures under 67.6this paragraph do not require approval by the governor. For purposes of this paragraph, 67.7"house legislative districts" means the legislative districts in existence on May 15, 2009. 67.8    Sec. 22. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read: 67.9    Subd. 7a. Iron Range school consolidation and cooperatively operated school 67.10account. The following amounts must be allocated to the Iron Range Resources and 67.11Rehabilitation Board to be deposited in the Iron Range school consolidation and 67.12cooperatively operated school account that is hereby created: 67.13(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax 67.14imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per 67.15taxable ton of the tax imposed under section 298.24; 67.16(2) the amount as determined under section 298.17, paragraph (b), clause (3); 67.17(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 67.18proceeds attributable to the increase in the implicit price deflator as provided in section 67.19298.24, subdivision 1 , with the remaining one-third to be distributed to the Douglas J. 67.20Johnson economic protection trust fund; 67.21(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the 67.22increased tax proceeds attributable to the increase in the implicit price deflator as provided 67.23in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining 67.24one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and 67.25(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the 67.26increased tax proceeds attributable to the increase in the implicit price deflator as provided 67.27in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the 67.28remaining one-third to be distributed to the Douglas J. Johnson economic protection 67.29trust fund; and 67.30(4) any other amount as provided by law. 67.31Expenditures from this account new text begin may be approved as ongoing annual expenditures and new text end 67.32shall be made only to provide disbursements to assist school districts with the payment of 67.33bonds that were issued for qualified school projects, or for any other school disbursement 67.34as approved by the new text begin commissioner after the commissioner has sought review of the new text end 67.35 new text begin expenditures by the new text end Iron Range Resources and Rehabilitation Board. For purposes of this 68.1section, "qualified school projects" means school projects within the taconite assistance 68.2area as defined in section 273.1341, that were (1) approved, by referendum, after April 3, 68.32006; and (2) approved by the commissioner of education pursuant to section 123B.71. 68.4Beginning in fiscal year 2019, the disbursement to school districts for payments for 68.5bonds issued under section 123A.482, subdivision 9, must be increased each year to 68.6offset any reduction in debt service equalization aid that the school district qualifies for in 68.7that year, under section 123B.53, subdivision 6, compared with the amount the school 68.8district qualified for in fiscal year 2018. 68.9No expenditure under this section shall be made unless approved by seven members 68.10of new text begin the commissioner after seeking review of the expenditure from new text end the Iron Range 68.11Resources and Rehabilitation Board. 68.12    Sec. 23. Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read: 68.13    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must 68.14be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in 68.15an Iron Range higher education account that is hereby created, to be used for higher 68.16education programs conducted at educational institutions in the taconite assistance area 68.17defined in section 273.1341. The Iron Range Higher Education committee under section 68.18298.2214, and the Iron Range Resources and Rehabilitation Board new text begin commissioner new text end must 68.19approve all expenditures from the account new text begin , after seeking review and recommendation of new text end 68.20 new text begin the expenditures from the Iron Range Resources and Rehabilitation Board new text end . 68.21    Sec. 24. Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read: 68.22    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust 68.23fund may be used for the following purposes: 68.24    (1) to provide loans, loan guarantees, interest buy-downs and other forms of 68.25participation with private sources of financing, but a loan to a private enterprise shall be 68.26for a principal amount not to exceed one-half of the cost of the project for which financing 68.27is sought, and the rate of interest on a loan to a private enterprise shall be no less than the 68.28lesser of eight percent or an interest rate three percentage points less than a full faith 68.29and credit obligation of the United States government of comparable maturity, at the 68.30time that the loan is approved; 68.31    (2) to fund reserve accounts established to secure the payment when due of the 68.32principal of and interest on bonds issued pursuant to section 298.2211; 68.33    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest 68.34on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, 69.1or retrofitting heating facilities in connection with district heating systems or systems 69.2utilizing alternative energy sources; 69.3    (4) to invest in a venture capital fund or enterprise that will provide capital to other 69.4entities that are engaging in, or that will engage in, projects or programs that have the 69.5purposes set forth in subdivision 1. No investments may be made in a venture capital fund 69.6or enterprise unless at least two other unrelated investors make investments of at least 69.7$500,000 in the venture capital fund or enterprise, and the investment by the Douglas 69.8J. Johnson economic protection trust fund may not exceed the amount of the largest 69.9investment by an unrelated investor in the venture capital fund or enterprise. For purposes 69.10of this subdivision, an "unrelated investor" is a person or entity that is not related to 69.11the entity in which the investment is made or to any individual who owns more than 40 69.12percent of the value of the entity, in any of the following relationships: spouse, parent, 69.13child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of 69.14the value of all interests in it. For purposes of determining the limitations under this 69.15clause, the amount of investments made by an investor other than the Douglas J. Johnson 69.16economic protection trust fund is the sum of all investments made in the venture capital 69.17fund or enterprise during the period beginning one year before the date of the investment 69.18by the Douglas J. Johnson economic protection trust fund; and 69.19    (5) to purchase forest land in the taconite assistance area defined in section 273.1341 69.20to be held and managed as a public trust for the benefit of the area for the purposes 69.21authorized in section 298.22, subdivision 5a. Property purchased under this section may 69.22be sold by the commissioner upon approval by new text begin after seeking a recommendation from new text end 69.23the board. The net proceeds must be deposited in the trust fund for the purposes and 69.24uses of this section. 69.25    Money from the trust fund shall be expended only in or for the benefit of the taconite 69.26assistance area defined in section 273.1341. 69.27    Sec. 25. Minnesota Statutes 2014, section 298.294, is amended to read: 69.28298.294 INVESTMENT OF FUND. 69.29(a) The trust fund established by section 298.292 shall be invested pursuant to law 69.30by the State Board of Investment and the net interest, dividends, and other earnings arising 69.31from the investments shall be transferred, except as provided in paragraph (b), on the first 69.32day of each month to the trust and shall be included and become part of the trust fund. 69.33The amounts transferred, including the interest, dividends, and other earnings earned 69.34prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year 69.351983, which is appropriated April 21, 1983, are appropriated from the trust fund to the 70.1commissioner of Iron Range resources and rehabilitation for deposit in a separate account 70.2for expenditure for the purposes set forth in section 298.292. Amounts appropriated 70.3pursuant to this section shall not cancel but shall remain available unless expended. 70.4(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends, 70.5and other earnings under paragraph (a) shall be transferred to a special account. Funds 70.6in the special account are available for loans or grants to businesses, with priority given 70.7to businesses with 25 or fewer employees. Funds may be used for wage subsidies for 70.8up to 52 weeks of up to $5 per hour or other activities, including, but not limited to, 70.9short-term operating expenses and purchase of equipment and materials by businesses 70.10under financial duress, that will create additional jobs in the taconite assistance area 70.11under section 273.1341. Expenditures from the special account must be approved by the 70.12 new text begin commissioner after seeking a recommendation from the new text end board. 70.13(c) To qualify for a grant or loan, a business must be currently operating and have 70.14been operating for one year immediately prior to its application for a loan or grant, and its 70.15corporate headquarters must be located in the taconite assistance area. 70.16    Sec. 26. Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read: 70.17    Subdivision 1. Project approval. new text begin (a) new text end The new text begin commissioner of Iron Range resources and new text end 70.18 new text begin rehabilitation, after seeking a recommendation from the new text end board and commissioner new text begin , new text end shall by 70.19August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson 70.20economic protection trust with necessary supporting information including description of 70.21the projects, plans, and cost estimates. These projects shall be consistent with the priorities 70.22established in section 298.292 and shall not be approved by the board new text begin commissioner new text end 70.23unless it new text begin the commissioner, after seeking a recommendation from the board, new text end finds that: 70.24(a) new text begin (1) new text end the project will materially assist, directly or indirectly, the creation of 70.25additional long-term employment opportunities; 70.26(b) new text begin (2) new text end the prospective benefits of the expenditure exceed the anticipated costs; and 70.27(c) new text begin (3) new text end in the case of assistance to private enterprise, the project will serve a sound 70.28business purpose. 70.29 new text begin (b) new text end Each project must be approved by over one-half of all of the members of the 70.30board and the commissioner of Iron Range resources and rehabilitation new text begin after seeking a new text end 70.31 new text begin recommendation from the board for the project new text end . The list of projects shall be submitted to 70.32the governor, who shall, by November 15 of each year, approve or disapprove, or return 70.33for further consideration, each project. The money for a project may be expended only 70.34upon approval of the project by the governor. The board new text begin commissioner new text end may submit new text begin a new text end 71.1supplemental projects new text begin project new text end for approval at any time new text begin after seeking a recommendation for new text end 71.2 new text begin the project from the board new text end . 71.3    Sec. 27. Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read: 71.4    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended 71.5on projects and for administration of the trust fund only from the net interest, earnings, 71.6and dividends arising from the investment of the trust at any time, including net interest, 71.7earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made 71.8available for use in fiscal year 1983, except that any amount required to be paid out of the 71.9trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article 71.10X, section 4, and to make school bond payments and payments to recipients of taconite 71.11production tax proceeds pursuant to section 298.225, may be taken from the corpus of 71.12the trust. 71.13    (b) Additionally, upon recommendation by the new text begin commissioner after seeking a new text end 71.14 new text begin recommendation from the new text end board, up to $13,000,000 from the corpus of the trust may be 71.15made available for use as provided in subdivision 4, and up to $10,000,000 from the 71.16corpus of the trust may be made available for use as provided in section 298.2961. 71.17    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust 71.18on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts 71.19made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 71.208, section 17, may be expended on projects. Funds may be expended for projects under 71.21this paragraph only if the project: 71.22    (1) is for the purposes established under section 298.292, subdivision 1, clause 71.23(1) or (2); and 71.24    (2) is approved by two-thirds of all of the members of new text begin the commissioner after new text end 71.25 new text begin seeking a recommendation from new text end the board. 71.26No money made available under this paragraph or paragraph (d) can be used for 71.27administrative or operating expenses of the Iron Range Resources and Rehabilitation Board 71.28or expenses relating to any facilities owned or operated by the board on May 18, 2002. 71.29    (d) Upon recommendation by a unanimous vote of all members new text begin the commissioner new text end 71.30 new text begin after seeking a unanimous recommendation new text end of the board, amounts in addition to those 71.31authorized under paragraphs (a), (b), and (c) may be expended on projects described in 71.32section 298.292, subdivision 1. 71.33    (e) Annual administrative costs, not including detailed engineering expenses for the 71.34projects, shall not exceed five percent of the net interest, dividends, and earnings arising 71.35from the trust in the preceding fiscal year. 72.1    (f) Principal and interest received in repayment of loans made pursuant to this 72.2section, and earnings on other investments made under section 298.292, subdivision 2, 72.3clause (4), shall be deposited in the state treasury and credited to the trust. These receipts 72.4are appropriated to the board for the purposes of sections 298.291 to 298.298. 72.5    (g) Additionally, notwithstanding section 298.293, upon the approval of new text begin the new text end 72.6 new text begin commissioner of Iron Range resources and rehabilitation, after seeking a recommendation new text end 72.7 new text begin from new text end the board, money from the corpus of the trust may be expanded to purchase forest 72.8lands within the taconite assistance area as provided in sections 298.22, subdivision 5a, 72.9and 298.292, subdivision 2, clause (5). 72.10    Sec. 28. Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read: 72.11    Subd. 4. Temporary loan authority. (a) new text begin After seeking a recommendation from new text end the 72.12board new text begin , the commissioner of Iron Range resources and rehabilitation new text end may recommend that new text begin new text end 72.13 new text begin use new text end up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees, 72.14grants, or equity investments as provided in this subdivision. The money would be 72.15available for loans for construction and equipping of facilities constituting (1) a value 72.16added iron products plant, which may be either a new plant or a facility incorporated into 72.17an existing plant that produces iron upgraded to a minimum of 75 percent iron content or 72.18any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine 72.19or minerals processing plant for any mineral subject to the net proceeds tax imposed 72.20under section 298.015. A loan or loan guarantee under this paragraph may not exceed 72.21$5,000,000 for any facility. 72.22(b) Additionally, the board new text begin commissioner of Iron Range resources and rehabilitation new text end 72.23must reserve the first $2,000,000 of the net interest, dividends, and earnings arising 72.24from the investment of the trust after June 30, 1996, to be used for grants, loans, loan 72.25guarantees, or equity investments for the purposes set forth in paragraph (a). This amount 72.26must be reserved until it is used as described in this subdivision. 72.27(c) Additionally, the board new text begin commissioner new text end may recommend that up to $5,500,000 72.28from the corpus of the trust may be used for additional grants, loans, loan guarantees, or 72.29equity investments for the purposes set forth in paragraph (a). 72.30(d) The new text begin commissioner of Iron Range resources and rehabilitation, after seeking a new text end 72.31 new text begin recommendation from the new text end board new text begin , new text end may require that it new text begin the board new text end receive an equity percentage 72.32in any project to which it contributes under this section. 72.33    Sec. 29. Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read: 72.34    Subd. 2. Projects; approval. (a) Projects funded must be for: 73.1    (1) environmentally unique reclamation projects; or 73.2    (2) pit or plant repairs, expansions, or modernizations other than for a value added 73.3iron products plant. 73.4    (b) To be proposed by the board, a project must be approved by new text begin Before the new text end 73.5 new text begin commissioner may propose a project, the commissioner must seek a recommendation new text end 73.6 new text begin from new text end the board. The money for a project may be spent only upon approval of the project 73.7by the governor. The board new text begin commissioner new text end may submit new text begin a new text end supplemental projects new text begin project new text end for 73.8approval at any time new text begin after seeking a recommendation for the project from the board new text end . 73.9    (c) The board new text begin commissioner new text end may require that it new text begin the board new text end receive an equity 73.10percentage in any project to which it contributes under this section. 73.11    Sec. 30. Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read: 73.12    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions 73.13under section 298.28, subdivision 9b, and to make grants or loans as provided in this 73.14subdivision. Any grant or loan made under this subdivision must new text begin first new text end be approved by 73.15the new text begin commissioner after seeking a recommendation from the new text end board, established under 73.16section 298.22. 73.17    (b) Distributions received in calendar year 2005 are allocated to the city of Virginia 73.18for improvements and repairs to the city's steam heating system. 73.19    (c) Distributions received in calendar year 2006 are allocated to a project of the 73.20public utilities commissions of the cities of Hibbing and Virginia to convert their electrical 73.21generating plants to the use of biomass products, such as wood. 73.22    (d) Distributions received in calendar year 2007 must be paid to the city of Tower to 73.23be used for the East Two Rivers project in or near the city of Tower. 73.24    (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution 73.25must be paid to St. Louis County for deposit in its county road and bridge fund to be 73.26used for relocation of St. Louis County Road 715, commonly referred to as Pike River 73.27Road. The remainder of the 2008 distribution must be paid to St. Louis County for a 73.28grant to the city of Virginia for connecting sewer and water lines to the St. Louis County 73.29maintenance garage on Highway 135, further extending the lines to interconnect with the 73.30city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent 73.31years are allocated for projects under section 298.223, subdivision 1. 73.32    Sec. 31. Minnesota Statutes 2014, section 298.298, is amended to read: 73.33298.298 LONG-RANGE PLAN. 74.1Consistent with the policy established in sections 298.291 to 298.298, the Iron 74.2Range Resources and Rehabilitation Board shall prepare and present to the governor and 74.3the legislature by December 31, 2006, a long-range plan for the use of the Douglas J. 74.4Johnson economic protection trust fund for the economic development and diversification 74.5of the taconite assistance area defined in section 273.1341. No project shall be approved new text begin new text end 74.6 new text begin recommended new text end by the Iron Range Resources and Rehabilitation Board which new text begin if the board new text end 74.7 new text begin finds that the project new text end is not consistent with the goals and objectives established in the 74.8long-range plan. 74.9    Sec. 32. Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read: 74.10    Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly 74.11constituted authorities of a taxing district there are in existence reserves of unmined iron 74.12ore located in such district, these authorities may petition the new text begin commissioner of new text end Iron Range 74.13resources and rehabilitation Board for authority to petition the county assessor to verify 74.14the existence of such reserves and to ascertain the value thereof by drilling in a manner 74.15consistent with established engineering and geological exploration methods, in order that 74.16such taxing district may be able to forecast in a proper manner its future economic and 74.17fiscal potentials. new text begin The commissioner may grant the authority to petition after seeking a new text end 74.18 new text begin recommendation from the Iron Range Resources and Rehabilitation Board. new text end 74.19    Sec. 33. new text begin IRON RANGE RESOURCES AND REHABILITATION BOARD; new text end 74.20 new text begin EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION. new text end 74.21 new text begin (a) "Commissioner" as used in this section means the commissioner of the Iron new text end 74.22 new text begin Range Resources and Rehabilitation Board unless otherwise specified. new text end 74.23 new text begin (b) Notwithstanding any law to the contrary, the commissioner, in consultation new text end 74.24 new text begin with the commissioner of management and budget, shall offer a targeted early separation new text end 74.25 new text begin incentive program for employees of the commissioner who have attained the age of 60 new text end 74.26 new text begin years or who have received credit for at least 30 years of allowable service under the new text end 74.27 new text begin provisions of Minnesota Statutes, chapter 352. The commissioner shall also offer a new text end 74.28 new text begin targeted separation incentive program for employees of the commissioner whose positions new text end 74.29 new text begin are in support of operations at Giants Ridge and will be eliminated if the agency no longer new text end 74.30 new text begin directly manages Giants Ridge operations. new text end 74.31 new text begin (c) The early separation incentive program may include one or more of the following: new text end 74.32 new text begin (1) employer-paid postseparation health, medical, and dental insurance until age new text end 74.33 new text begin 65; and new text end 75.1 new text begin (2) cash incentives that may, but are not required to be, used to purchase additional new text end 75.2 new text begin years of service credit through the Minnesota State Retirement System, to the extent that new text end 75.3 new text begin the purchases are otherwise authorized by law. new text end 75.4 new text begin (d) The commissioner shall establish eligibility requirements for employees to new text end 75.5 new text begin receive an incentive. new text end 75.6 new text begin (e) The commissioner, consistent with the established program provisions under new text end 75.7 new text begin paragraph (b), and with the eligibility requirements under paragraph (f), may designate new text end 75.8 new text begin specific programs or employees as eligible to be offered the incentive program. new text end 75.9 new text begin (f) Acceptance of the offered incentive must be voluntary on the part of the new text end 75.10 new text begin employee and must be in writing. The incentive may only be offered at the sole discretion new text end 75.11 new text begin of the commissioner. new text end 75.12 new text begin (g) The cost of the incentive is payable solely by funds made available to the new text end 75.13 new text begin commissioner by law, but only on prior approval of the expenditures by the commissioner, new text end 75.14 new text begin after seeking a recommendation from the Iron Range Resources and Rehabilitation Board. new text end 75.15 new text begin (h) Unilateral implementation of this section by the commissioner is not an unfair new text end 75.16 new text begin labor practice under Minnesota Statutes, chapter 179A. new text end 75.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 75.18 new text begin This section is repealed June 30, 2017. new text end 75.19    Sec. 34. new text begin REVISOR'S INSTRUCTION. new text end 75.20 new text begin The revisor of statutes shall identify and propose necessary changes to Minnesota new text end 75.21 new text begin Statutes and Minnesota Rules that are consistent with the goals of this act to (i) transfer new text end 75.22 new text begin discretionary approval authority for all expenditures and projects from the Iron Range new text end 75.23 new text begin Resources and Rehabilitation Board to the commissioner of Iron Range resources and new text end 75.24 new text begin rehabilitation, and (ii) provide that the commissioner must, in good faith, seek the review new text end 75.25 new text begin and recommendation of the board, as required, before exercising approval authority. The new text end 75.26 new text begin revisor shall submit the proposal, in a form ready for introduction, during the 2017 regular new text end 75.27 new text begin legislative session to the chairs and ranking minority members of the senate and house of new text end 75.28 new text begin representatives committees with jurisdiction over taxes. new text end 75.29ARTICLE 6 75.30FAMILY AND MEDICAL BENEFITS 75.31    Section 1. Minnesota Statutes 2014, section 13.719, is amended by adding a 75.32subdivision to read: 76.1     new text begin Subd. 7. new text end new text begin Family and medical insurance data. new text end new text begin (a) For the purposes of this new text end 76.2 new text begin subdivision, the terms used have the meanings given them in section 268B.01. new text end 76.3 new text begin (b) Data on applicants, family members, or employers under chapter 268B are new text end 76.4 new text begin private or nonpublic data, provided that the department may share data collected from new text end 76.5 new text begin applicants with employers or health care providers to the extent necessary to meet the new text end 76.6 new text begin requirements of chapter 268B or other applicable law. new text end 76.7    Sec. 2. Minnesota Statutes 2014, section 181.940, subdivision 2, is amended to read: 76.8    Subd. 2. Employee. "Employee" means a person who performs services for hire for 76.9an employer from whom a leave is requested under sections 181.940 to 181.944 for: 76.10(1) at least 12 new text begin six new text end months preceding the request; and 76.11(2) for an average number of hours per week equal to one-half the full-time 76.12equivalent position in the employee's job classification as defined by the employer's 76.13personnel policies or practices or pursuant to the provisions of a collective bargaining 76.14agreement, during the 12-month new text begin six-month new text end period immediately preceding the leave. 76.15 new text begin For leaves under sections 181.9412 and 181.9413, the periods of time required by new text end 76.16 new text begin clauses (1) and (2) are 12 months rather than six months. new text end 76.17Employee includes all individuals employed at any site owned or operated by the 76.18employer but does not include an independent contractor. 76.19    Sec. 3. Minnesota Statutes 2014, section 181.940, subdivision 4, is amended to read: 76.20    Subd. 4. Child. "Child" means new text begin , except for the purposes of section 181.9411, new text end an 76.21individual under 18 years of age or an individual under age 20 who is still attending 76.22secondary school. 76.23    Sec. 4. Minnesota Statutes 2014, section 181.941, subdivision 4, is amended to read: 76.24    Subd. 4. Continued insurance. The employer must continue to make coverage 76.25available to the employee while on leave of absence under any group insurance policy, 76.26group subscriber contract, or health care plan for the employee and any dependents. 76.27Nothing in this section requires the employer to pay the costs of the insurance or health 76.28care while the employee is on leave of absence. new text begin During any period that an employee new text end 76.29 new text begin takes leave under this section, the employer shall maintain coverage under any group new text end 76.30 new text begin health plan for the duration of such leave at the level and under the conditions coverage new text end 76.31 new text begin would have been provided if the employee had continued in employment continuously new text end 76.32 new text begin for the duration of leave. new text end 77.1    Sec. 5. new text begin [181.9411] FAMILY CARE LEAVE. new text end 77.2     new text begin Subdivision 1. new text end new text begin Definition; family member. new text end new text begin For the purpose of this section, "family new text end 77.3 new text begin member" means an employee's child, adult child, spouse, sibling, parent, foster parent, new text end 77.4 new text begin mother-in-law, father-in-law, grandchild, grandparent, or stepparent. "Child" means a new text end 77.5 new text begin child under the age of 18 and includes a biological child, adopted child, or foster child. new text end 77.6     new text begin Subd. 2. new text end new text begin Definition; health care provider. new text end new text begin For the purpose of this section, "health new text end 77.7 new text begin care provider" means an individual who is licensed, certified, or otherwise authorized new text end 77.8 new text begin under law to practice in the individual's state of practice as a physician, osteopath, new text end 77.9 new text begin physician assistant, chiropractor, advanced practice registered nurse, optometrist, new text end 77.10 new text begin licensed psychologist, licensed independent clinical social worker, dentist, or podiatrist. new text end 77.11 new text begin "Chiropractor" means only a chiropractor who provides manual manipulation of the spine new text end 77.12 new text begin to correct a subluxation demonstrated to exist by an x-ray. new text end 77.13     new text begin Subd. 3. new text end new text begin Definition; serious health condition. new text end new text begin For the purpose of this section, new text end 77.14 new text begin "serious health condition" means an illness, injury, impairment, or physical or mental new text end 77.15 new text begin condition that involves: new text end 77.16 new text begin (1) inpatient care in a hospital, hospice, or residential medical care facility; or new text end 77.17 new text begin (2) continuing treatment by a health care provider. new text end 77.18     new text begin Subd. 4. new text end new text begin Twelve-week leave. new text end new text begin An employer must grant an unpaid leave of absence new text end 77.19 new text begin to an employee in order to care for a family member with a serious health condition. The new text end 77.20 new text begin length of the leave shall be determined by the employee, but must not exceed 12 weeks new text end 77.21 new text begin during any 12-month period, unless agreed to by the employer. The leave provided under new text end 77.22 new text begin this section may be reduced by any period of leave taken under section 181.941 for the same new text end 77.23 new text begin period. Leave under this section may be taken intermittently when medically necessary. new text end 77.24     new text begin Subd. 5. new text end new text begin Terms of leave. new text end new text begin The leave shall begin at a time requested by the employee. new text end 77.25 new text begin The employer may adopt reasonable policies governing the timing of requests for unpaid new text end 77.26 new text begin leave and may require an employee to provide notice of the need for leave as soon new text end 77.27 new text begin as practicable. An employer may require that a request for leave be supported by a new text end 77.28 new text begin certification issued by the health care provider of the family member. new text end 77.29     new text begin Subd. 6. new text end new text begin No employer retribution. new text end new text begin An employer shall not retaliate against an new text end 77.30 new text begin employee for requesting or obtaining a leave of absence under this section. new text end 77.31     new text begin Subd. 7. new text end new text begin Continued insurance. new text end new text begin During any period that an employee takes leave new text end 77.32 new text begin under this section, the employer shall maintain coverage under any group health plan for new text end 77.33 new text begin the duration of such leave at the level and under the conditions coverage would have been new text end 77.34 new text begin provided if the employee had continued in employment continuously for the duration new text end 77.35 new text begin of leave. new text end 78.1    Sec. 6. Minnesota Statutes 2014, section 181.942, subdivision 1, is amended to read: 78.2    Subdivision 1. Comparable position. (a) An employee returning from a leave 78.3of absence under section 181.941 new text begin or 181.9411 new text end is entitled to return to employment in 78.4the employee's former position or in a position of comparable duties, number of hours, 78.5and pay. An employee returning from a leave of absence longer than one month must 78.6notify a supervisor at least two weeks prior to return from leave. An employee returning 78.7from a leave under section 181.9412 or 181.9413 is entitled to return to employment in 78.8the employee's former position. 78.9(b) If, during a leave under sections 181.940 to 181.944, the employer experiences 78.10a layoff and the employee would have lost a position had the employee not been on 78.11leave, pursuant to the good faith operation of a bona fide layoff and recall system, 78.12including a system under a collective bargaining agreement, the employee is not entitled to 78.13reinstatement in the former or comparable position. In such circumstances, the employee 78.14retains all rights under the layoff and recall system, including a system under a collective 78.15bargaining agreement, as if the employee had not taken the leave. 78.16    Sec. 7. Minnesota Statutes 2014, section 181.943, is amended to read: 78.17181.943 RELATIONSHIP TO OTHER LEAVE. 78.18(a) The length of leave provided under section 181.941 new text begin or 181.9411 new text end may be reduced 78.19by any period of: 78.20(1) paid parental, disability, personal, medical, or sick leave, or accrued vacation 78.21provided by the employer so that the total leave does not exceed 12 weeks, unless agreed 78.22to by the employer; or 78.23(2) leave taken for the same purpose by the employee under United States Code, 78.24title 29, chapter 28. 78.25(b) Nothing in sections 181.940 to 181.943 prevents any employer from providing 78.26leave benefits in addition to those provided in sections 181.940 to 181.944 or otherwise 78.27affects an employee's rights with respect to any other employment benefit. 78.28 new text begin (c) For the purpose of this section, benefits paid under chapter 268B are not provided new text end 78.29 new text begin by an employer. new text end 78.30 new text begin (d) An employer may not require an employee to take more than two weeks of paid new text end 78.31 new text begin parental, disability, personal, medical, or sick leave, or accrued vacation provided by an new text end 78.32 new text begin employer for the purpose of a leave under section 181.941 or 181.9411, unless agreed to new text end 78.33 new text begin by an employee. This paragraph applies only to an employee who is eligible for benefits new text end 78.34 new text begin under chapter 268B based on the same event for which leave is provided under section new text end 78.35 new text begin 181.941 or 181.9411. new text end 79.1    Sec. 8. Minnesota Statutes 2014, section 256J.561, is amended by adding a subdivision 79.2to read: 79.3     new text begin Subd. 4. new text end new text begin Parents receiving family and medical leave benefits. new text end new text begin A parent who new text end 79.4 new text begin meets the criteria under subdivision 2 and who receives family and medical leave benefits new text end 79.5 new text begin under chapter 268B is not required to participate in employment services. new text end 79.6    Sec. 9. Minnesota Statutes 2014, section 256J.95, subdivision 3, is amended to read: 79.7    Subd. 3. Eligibility for diversionary work program. (a) Except for the categories 79.8of family units listed in clauses (1) to (8), all family units who apply for cash benefits and 79.9who meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and 79.10must participate in the diversionary work program. Family units or individuals that are 79.11not eligible for the diversionary work program include: 79.12    (1) child only cases; 79.13    (2) single-parent family units that include a child under 12 months of age. A parent 79.14is eligible for this exception once in a parent's lifetime; 79.15    (3) family units with a minor parent without a high school diploma or its equivalent; 79.16    (4) family units with an 18- or 19-year-old caregiver without a high school diploma 79.17or its equivalent who chooses to have an employment plan with an education option; 79.18    (5) family units with a caregiver who received DWP benefits within the 12 months 79.19prior to the month the family applied for DWP, except as provided in paragraph (c); 79.20    (6) family units with a caregiver who received MFIP within the 12 months prior to 79.21the month the family applied for DWP; 79.22    (7) family units with a caregiver who received 60 or more months of TANF 79.23assistance; and 79.24    (8) family units with a caregiver who is disqualified from the work participation 79.25cash benefit program, DWP, or MFIP due to fraud new text begin ; and new text end 79.26     new text begin (9) single-parent family units where a parent is receiving family and medical leave new text end 79.27 new text begin benefits under chapter 268B new text end . 79.28    (b) A two-parent family must participate in DWP unless both caregivers meet the 79.29criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit 79.30includes a parent who meets the criteria in paragraph (a), clause (6), (7), or (8). 79.31    (c) Once DWP eligibility is determined, the four months run consecutively. If a 79.32participant leaves the program for any reason and reapplies during the four-month period, 79.33the county must redetermine eligibility for DWP. 79.34    Sec. 10. Minnesota Statutes 2014, section 256J.95, subdivision 11, is amended to read: 80.1    Subd. 11. Universal participation required. (a) All DWP caregivers, except 80.2caregivers who meet the criteria in paragraph (d), are required to participate in DWP 80.3employment services. Except as specified in paragraphs (b) and (c), employment plans 80.4under DWP must, at a minimum, meet the requirements in section 256J.55, subdivision 1. 80.5(b) A caregiver who is a member of a two-parent family that is required to participate 80.6in DWP who would otherwise be ineligible for DWP under subdivision 3 may be allowed 80.7to develop an employment plan under section 256J.521, subdivision 2, that may contain 80.8alternate activities and reduced hours. 80.9(c) A participant who is a victim of family violence shall be allowed to develop an 80.10employment plan under section 256J.521, subdivision 3. A claim of family violence must 80.11be documented by the applicant or participant by providing a sworn statement which is 80.12supported by collateral documentation in section 256J.545, paragraph (b). 80.13(d) One parent in a two-parent family unit that has a natural born child under 80.1412 months of age is not required to have an employment plan until the child reaches 80.1512 months of age unless the family unit has already used the exclusion under section 80.16256J.561, subdivision 3, or the previously allowed child under age one exemption under 80.17section , paragraph (a), clause (5) new text begin if that parent: new text end 80.18 new text begin (1) receives family and medical leave benefits under chapter 268B; or new text end 80.19 new text begin (2) has a natural born child under 12 months of age until the child reaches 12 months new text end 80.20 new text begin of age unless the family unit has already used the exclusion under section 256J.561, new text end 80.21 new text begin subdivision 3, or the previously allowed child under age one exemption under section new text end 80.22 new text begin 256J.56, paragraph (a), clause (5) new text end . 80.23(e) The provision in paragraph (d) ends the first full month after the child reaches 80.2412 months of age. This provision is allowable only once in a caregiver's lifetime. In a 80.25two-parent household, only one parent shall be allowed to use this category. 80.26(f) The participant and job counselor must meet in the month after the month 80.27the child reaches 12 months of age to revise the participant's employment plan. The 80.28employment plan for a family unit that has a child under 12 months of age that has already 80.29used the exclusion in section 256J.561 must be tailored to recognize the caregiving needs 80.30of the parent. 80.31    Sec. 11. Minnesota Statutes 2015 Supplement, section 256P.01, subdivision 3, is 80.32amended to read: 80.33    Subd. 3. Earned income. "Earned income" means cash or in-kind income earned 80.34through the receipt of wages, salary, commissions, bonuses, tips, gratuities, profit from 80.35employment activities, net profit from self-employment activities, payments made by an 81.1employer for regularly accrued vacation or sick leave, severance pay based on accrued 81.2leave time, new text begin family and medical leave benefits under chapter 268B, new text end payments from training 81.3programs at a rate at or greater than the state's minimum wage, royalties, honoraria, or 81.4other profit from activity that results from the client's work, service, effort, or labor. The 81.5income must be in return for, or as a result of, legal activity. 81.6    Sec. 12. Minnesota Statutes 2014, section 268.19, subdivision 1, is amended to read: 81.7    Subdivision 1. Use of data. (a) Except as provided by this section, data gathered 81.8from any person under the administration of the Minnesota Unemployment Insurance Law 81.9are private data on individuals or nonpublic data not on individuals as defined in section 81.1013.02 , subdivisions 9 and 12, and may not be disclosed except according to a district court 81.11order or section 13.05. A subpoena is not considered a district court order. These data 81.12may be disseminated to and used by the following agencies without the consent of the 81.13subject of the data: 81.14    (1) state and federal agencies specifically authorized access to the data by state 81.15or federal law; 81.16    (2) any agency of any other state or any federal agency charged with the 81.17administration of an unemployment insurance program; 81.18    (3) any agency responsible for the maintenance of a system of public employment 81.19offices for the purpose of assisting individuals in obtaining employment; 81.20    (4) the public authority responsible for child support in Minnesota or any other 81.21state in accordance with section 256.978; 81.22    (5) human rights agencies within Minnesota that have enforcement powers; 81.23    (6) the Department of Revenue to the extent necessary for its duties under Minnesota 81.24laws; 81.25    (7) public and private agencies responsible for administering publicly financed 81.26assistance programs for the purpose of monitoring the eligibility of the program's recipients; 81.27    (8) the Department of Labor and Industry and the Commerce Fraud Bureau in the 81.28Department of Commerce for uses consistent with the administration of their duties under 81.29Minnesota law; 81.30    (9) the Department of Human Services and the Office of Inspector General and its 81.31agents within the Department of Human Services, including county fraud investigators, 81.32for investigations related to recipient or provider fraud and employees of providers when 81.33the provider is suspected of committing public assistance fraud; 81.34    (10) local and state welfare agencies for monitoring the eligibility of the data subject 81.35for assistance programs, or for any employment or training program administered by those 82.1agencies, whether alone, in combination with another welfare agency, or in conjunction 82.2with the department or to monitor and evaluate the statewide Minnesota family investment 82.3program by providing data on recipients and former recipients of food stamps or food 82.4support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance 82.5under chapter 119B, or medical programs under chapter 256B, 256D, or 256L; 82.6    (11) local and state welfare agencies for the purpose of identifying employment, 82.7wages, and other information to assist in the collection of an overpayment debt in an 82.8assistance program; 82.9    (12) local, state, and federal law enforcement agencies for the purpose of 82.10ascertaining the last known address and employment location of an individual who is the 82.11subject of a criminal investigation; 82.12    (13) the United States Immigration and Customs Enforcement has access to data on 82.13specific individuals and specific employers provided the specific individual or specific 82.14employer is the subject of an investigation by that agency; 82.15    (14) the Department of Health for the purposes of epidemiologic investigations; 82.16    (15) the Department of Corrections for the purpose of case planning for preprobation 82.17and postprobation employment tracking of offenders sentenced to probation and 82.18preconfinement and postconfinement employment tracking of committed offenders; 82.19    (16) the state auditor to the extent necessary to conduct audits of job opportunity 82.20building zones as required under section 469.3201; and 82.21    (17) the Office of Higher Education for purposes of supporting program 82.22improvement, system evaluation, and research initiatives including the Statewide 82.23Longitudinal Education Data System new text begin ; and new text end 82.24     new text begin (18) the Family and Medical Benefits Division of the Department of Employment new text end 82.25 new text begin and Economic Development to be used as necessary to administer chapter 268B new text end . 82.26    (b) Data on individuals and employers that are collected, maintained, or used by 82.27the department in an investigation under section 268.182 are confidential as to data 82.28on individuals and protected nonpublic data not on individuals as defined in section 82.2913.02 , subdivisions 3 and 13, and must not be disclosed except under statute or district 82.30court order or to a party named in a criminal proceeding, administrative or judicial, for 82.31preparation of a defense. 82.32    (c) Data gathered by the department in the administration of the Minnesota 82.33unemployment insurance program must not be made the subject or the basis for any 82.34suit in any civil proceedings, administrative or judicial, unless the action is initiated by 82.35the department. 83.1    Sec. 13. new text begin [268B.01] DEFINITIONS. new text end 83.2     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin For the purposes of this chapter, the terms defined in this new text end 83.3 new text begin section have the meanings given them. new text end 83.4     new text begin Subd. 2. new text end new text begin Account. new text end new text begin "Account" means the family and medical benefit insurance new text end 83.5 new text begin account in the special revenue fund in the state treasury under section 268B.02. new text end 83.6     new text begin Subd. 3. new text end new text begin Applicant. new text end new text begin "Applicant" means an individual applying for benefits under new text end 83.7 new text begin this chapter. new text end 83.8     new text begin Subd. 4. new text end new text begin Benefit. new text end new text begin "Benefit" means monetary payments under this chapter associated new text end 83.9 new text begin with qualifying bonding, family, or pregnancy events. new text end 83.10     new text begin Subd. 5. new text end new text begin Commissioner. new text end new text begin "Commissioner" means the commissioner of employment new text end 83.11 new text begin and economic development. new text end 83.12     new text begin Subd. 6. new text end new text begin Department. new text end new text begin "Department" means the Department of Employment and new text end 83.13 new text begin Economic Development. new text end 83.14     new text begin Subd. 7. new text end new text begin Employee. new text end new text begin "Employee" means an individual for whom taxes are paid on new text end 83.15 new text begin wages under this chapter. new text end 83.16     new text begin Subd. 8. new text end new text begin Employer. new text end new text begin "Employer" means a person or entity that employed 21 or new text end 83.17 new text begin more employees within the state at any one time within the last four completed calendar new text end 83.18 new text begin quarters, other than an employee, required to pay taxes under this chapter. new text end 83.19     new text begin Subd. 9. new text end new text begin Health care provider. new text end new text begin "Health care provider" means an individual who is new text end 83.20 new text begin licensed, certified, or otherwise authorized under law to practice in the individual's state new text end 83.21 new text begin of practice as a physician, osteopath, physician assistant, chiropractor, advanced practice new text end 83.22 new text begin registered nurse, optometrist, licensed psychologist, licensed independent clinical social new text end 83.23 new text begin worker, dentist, or podiatrist. "Chiropractor" means only a chiropractor who provides new text end 83.24 new text begin manual manipulation of the spine to correct a subluxation demonstrated to exist by an x-ray. new text end 83.25     new text begin Subd. 10. new text end new text begin Pregnancy. new text end new text begin "Pregnancy" means prenatal care or incapacity of a woman new text end 83.26 new text begin due to pregnancy, childbirth, or related health conditions. new text end 83.27     new text begin Subd. 11. new text end new text begin Family care. new text end new text begin "Family care" means an applicant caring for a family new text end 83.28 new text begin member with a serious health condition. new text end 83.29     new text begin Subd. 12. new text end new text begin Bonding. new text end new text begin "Bonding" means a biological or adoptive parent in conjunction new text end 83.30 new text begin with the birth or adoption of a child, or a foster parent in conjunction with the placement new text end 83.31 new text begin of a child in foster care. new text end 83.32     new text begin Subd. 13. new text end new text begin Covered employment. new text end new text begin "Covered employment" has the meaning given in new text end 83.33 new text begin section 268.035, subdivision 12. new text end 83.34     new text begin Subd. 14. new text end new text begin Noncovered employment. new text end new text begin "Noncovered employment" has the meaning new text end 83.35 new text begin given in section 268.035, subdivision 20. new text end 84.1     new text begin Subd. 15. new text end new text begin Qualified health care provider. new text end new text begin "Qualified health care provider" means new text end 84.2 new text begin a health care provider who, in the judgment of the commissioner, has the qualifications new text end 84.3 new text begin necessary to diagnose or treat a particular health condition or conditions associated with new text end 84.4 new text begin benefits sought under this chapter. new text end 84.5     new text begin Subd. 16. new text end new text begin Serious health condition. new text end new text begin "Serious health condition" means an illness, new text end 84.6 new text begin injury, impairment, or physical or mental condition that involves: new text end 84.7 new text begin (1) inpatient care in a hospital, hospice, or residential medical care facility; or new text end 84.8 new text begin (2) continuing treatment by a health care provider. new text end 84.9     new text begin Subd. 17. new text end new text begin Wage credits. new text end new text begin "Wage credits" has the meaning given in section 268.035, new text end 84.10 new text begin subdivision 27. new text end 84.11     new text begin Subd. 18. new text end new text begin High quarter. new text end new text begin "High quarter" has the meaning given in section 268.035, new text end 84.12 new text begin subdivision 19. new text end 84.13     new text begin Subd. 19. new text end new text begin Maximum weekly benefit amount. new text end new text begin "Maximum weekly benefit amount" new text end 84.14 new text begin means the state's average weekly wage as calculated under section 268.035, subdivision 23. new text end 84.15     new text begin Subd. 20. new text end new text begin ICD code. new text end new text begin "ICD code" means the code under the International new text end 84.16 new text begin Classification of Diseases, Clinical Modification/Coding System, for the most recent new text end 84.17 new text begin edition commonly used. new text end 84.18     new text begin Subd. 21. new text end new text begin Medical benefit program. new text end new text begin "Medical benefit program" means the program new text end 84.19 new text begin administered under this chapter for the collection of taxes and payment of benefits related new text end 84.20 new text begin to pregnancy benefits. new text end 84.21     new text begin Subd. 22. new text end new text begin Family benefit program. new text end new text begin "Family benefit program" means the program new text end 84.22 new text begin administered under this chapter for the collection of taxes and payment of benefits related new text end 84.23 new text begin to family care and bonding. new text end 84.24     new text begin Subd. 23. new text end new text begin State's average weekly wage. new text end new text begin "State's average weekly wage" means the new text end 84.25 new text begin weekly wage calculated under section 268.035, subdivision 23. new text end 84.26     new text begin Subd. 24. new text end new text begin Family member. new text end new text begin "Family member" means an employee's child, adult new text end 84.27 new text begin child, spouse, sibling, parent, foster parent, mother-in-law, father-in-law, grandchild, new text end 84.28 new text begin grandparent, or stepparent. new text end 84.29    Sec. 14. new text begin [268B.02] FAMILY AND MEDICAL BENEFIT INSURANCE new text end 84.30 new text begin PROGRAM CREATION. new text end 84.31     new text begin Subdivision 1. new text end new text begin Creation. new text end new text begin A family and medical benefit insurance program is created new text end 84.32 new text begin to be administered by the commissioner according to the terms of this chapter. new text end 84.33     new text begin Subd. 2. new text end new text begin Creation of division. new text end new text begin A Family and Medical Benefit Insurance Division is new text end 84.34 new text begin created within the department under the authority of the commissioner. The commissioner new text end 85.1 new text begin shall appoint a director of the division. The division shall administer and operate the new text end 85.2 new text begin benefit program under this chapter. new text end 85.3     new text begin Subd. 3. new text end new text begin Rulemaking. new text end new text begin The commissioner may adopt rules to implement the new text end 85.4 new text begin provisions of this chapter. new text end 85.5     new text begin Subd. 4. new text end new text begin Account creation; appropriation. new text end new text begin The family and medical benefit new text end 85.6 new text begin insurance account is created in the special revenue fund in the state treasury. Money in new text end 85.7 new text begin this account is appropriated to the commissioner to pay benefits under and to administer new text end 85.8 new text begin this chapter. new text end 85.9    Sec. 15. new text begin [268B.03] ELIGIBILITY. new text end 85.10     new text begin Subdivision 1. new text end new text begin Applicant. new text end new text begin An applicant who is providing family care, is bonding, new text end 85.11 new text begin or is pregnant, who satisfies the conditions of this section is eligible to receive benefits new text end 85.12 new text begin subject to the provisions of this chapter. new text end 85.13     new text begin Subd. 2. new text end new text begin Wage credits. new text end new text begin An applicant must have sufficient wage credits from an new text end 85.14 new text begin employer as defined in section 268B.01, subdivision 8, to establish a benefit account under new text end 85.15 new text begin section 268.07, subdivision 2. Wage credits from an employer during a period in which new text end 85.16 new text begin the employer has successfully opted out of the benefit program being applied for may not new text end 85.17 new text begin be used for the purposes of this subdivision. new text end 85.18     new text begin Subd. 3. new text end new text begin Seven-day qualifying event. new text end new text begin The period for which an applicant is seeking new text end 85.19 new text begin benefits must be or have been based on a single period of at least seven days related to new text end 85.20 new text begin pregnancy, family care, or bonding. The days need not be consecutive. new text end 85.21     new text begin Subd. 4. new text end new text begin Ineligible. new text end new text begin An applicant is not eligible for benefits for any day in which the new text end 85.22 new text begin applicant worked for pay. new text end 85.23     new text begin Subd. 5. new text end new text begin Certification by health care provider. new text end new text begin Except for bonding benefits, the new text end 85.24 new text begin application for benefits must be certified in writing by a qualified health care professional. new text end 85.25     new text begin Subd. 6. new text end new text begin Records release. new text end new text begin An individual whose medical records are necessary to new text end 85.26 new text begin determine eligibility for benefits under this chapter must sign and date a legally effective new text end 85.27 new text begin waiver authorizing release to the department of medical and other records to the limited new text end 85.28 new text begin extent necessary to administer this chapter. new text end 85.29     new text begin Subd. 7. new text end new text begin Self-employed applicant. new text end new text begin (a) To be eligible for benefits, a self-employed new text end 85.30 new text begin individual who has elected coverage under section 268B.11 must fulfill only the new text end 85.31 new text begin requirements, to the extent possible, of subdivisions 3, 4, 5, and 6 in addition to the new text end 85.32 new text begin requirements under paragraph (b). new text end 85.33 new text begin (b) A self-employed individual must provide documents sufficient to prove the new text end 85.34 new text begin existence of the individual's business as well as how long that business has been in new text end 86.1 new text begin operation. The commissioner must determine that the business was not created for the new text end 86.2 new text begin purpose of obtaining benefits under this chapter. new text end 86.3    Sec. 16. new text begin [268B.04] APPLICATIONS. new text end 86.4     new text begin Subdivision 1. new text end new text begin Application forms. new text end new text begin The commissioner must create application new text end 86.5 new text begin forms, to be available both online and on paper, for each of the following: new text end 86.6 new text begin (1) an application for family care benefits; new text end 86.7 new text begin (2) an application for bonding benefits; and new text end 86.8 new text begin (3) an application for pregnancy benefits. new text end 86.9     new text begin Subd. 2. new text end new text begin Content of applications. new text end new text begin (a) All three application forms under subdivision new text end 86.10 new text begin 1 must require, at a minimum, the following: new text end 86.11 new text begin (1) the name, birth date, home address, and mailing address of the applicant; new text end 86.12 new text begin (2) the Social Security number, or other unique identification number, of the applicant; new text end 86.13 new text begin (3) a description of the qualifying event underlying the requested benefit; new text end 86.14 new text begin (4) the date for which benefits are sought began or will begin, if known; new text end 86.15 new text begin (5) the date for which benefits are sought ended or will end, if known; new text end 86.16 new text begin (6) whether the benefits are sought on an intermittent basis; new text end 86.17 new text begin (7) whether the applicant has applied for or received any other paid benefits, whether new text end 86.18 new text begin public or private, based on the same event underlying the benefits sought or during the new text end 86.19 new text begin same time period for which the applicant is seeking benefits; new text end 86.20 new text begin (8) a description of any benefits listed under clause (7); new text end 86.21 new text begin (9) a signed and dated certification that all the information contained in the new text end 86.22 new text begin application is true and correct, to the best of the applicant's knowledge; and new text end 86.23 new text begin (10) a list of all the applicant's employers for the past 79 weeks. new text end 86.24 new text begin (b) In addition to the requirements of paragraph (a), an application for family care new text end 86.25 new text begin benefits must contain, at a minimum, the following: new text end 86.26 new text begin (1) the name, birth date, home address, and mailing address of the family member new text end 86.27 new text begin for whom the applicant has provided or will be providing care; new text end 86.28 new text begin (2) the family member's relationship to the applicant; new text end 86.29 new text begin (3) the Social Security number, or other unique identification number, of the family new text end 86.30 new text begin member for whom the applicant has provided or will be providing care; new text end 86.31 new text begin (4) a certification from the care recipient, or the care recipient's authorized new text end 86.32 new text begin representative, that all the information contained in the application is true and correct, new text end 86.33 new text begin to the best of that individual's knowledge; new text end 87.1 new text begin (5) a legally effective authorization, signed and dated by the care recipient or the new text end 87.2 new text begin care recipient's authorized representative, for disclosure of medical information needed by new text end 87.3 new text begin the department to fulfill its duties under this chapter; and new text end 87.4 new text begin (6) a signed and dated certification by a qualified health care provider treating the new text end 87.5 new text begin care recipient: new text end 87.6 new text begin (i) describing the nature of the serious medical condition or conditions of the care new text end 87.7 new text begin recipient; new text end 87.8 new text begin (ii) stating whether care by another individual is necessary in the treatment, or will new text end 87.9 new text begin aid in the recovery, of the care recipient; new text end 87.10 new text begin (iii) describing the nature of the care under item (ii); new text end 87.11 new text begin (iv) stating or estimating the dates benefits are needed; and new text end 87.12 new text begin (v) listing the ICD code or codes, if any, of the serious medical condition or new text end 87.13 new text begin conditions underlying the application for benefits. new text end 87.14 new text begin (c) In addition to the requirements of paragraph (a), an application for benefits for new text end 87.15 new text begin bonding must contain, at a minimum, the following: new text end 87.16 new text begin (1) proof of the birth, adoption, or placement in foster care, as appropriate, of the new text end 87.17 new text begin child for whom bonding benefits are sought; and new text end 87.18 new text begin (2) a legally effective authorization, signed and dated by the applicant or other new text end 87.19 new text begin authorized representative of the child for whom bonding benefits are sought, for disclosure new text end 87.20 new text begin of medical information needed by the department to fulfill its duties under this chapter. new text end 87.21 new text begin (d) In addition to the requirements of paragraph (a), an application for pregnancy new text end 87.22 new text begin benefits must contain, at a minimum, the following: new text end 87.23 new text begin (1) a legally effective authorization, signed and dated by the applicant or the new text end 87.24 new text begin applicant's authorized representative, for disclosure of medical information needed by the new text end 87.25 new text begin department to fulfill its duties under this chapter; and new text end 87.26 new text begin (2) a signed and dated certification by a qualified health care provider treating the new text end 87.27 new text begin applicant: new text end 87.28 new text begin (i) describing the reason or reasons that pregnancy care is needed; new text end 87.29 new text begin (ii) stating or estimating the dates care is needed; and new text end 87.30 new text begin (iii) listing the ICD code or codes, if any, of the condition or conditions underlying new text end 87.31 new text begin the application for benefits. new text end 87.32     new text begin Subd. 3. new text end new text begin Online access. new text end new text begin The commissioner must, to the extent possible, create a new text end 87.33 new text begin system allowing for all aspects of the applications under this section to be completed new text end 87.34 new text begin online. This includes the use of electronic signatures. new text end 88.1     new text begin Subd. 4. new text end new text begin Administrative efficiencies. new text end new text begin To the maximum extent feasible, the new text end 88.2 new text begin commissioner must use the same or similar procedures for applications under this section new text end 88.3 new text begin as for applications for benefits under chapter 268. new text end 88.4    Sec. 17. new text begin [268B.05] DETERMINATION OF APPLICATION. new text end 88.5 new text begin Upon the filing of a complete application for benefits, the commissioner shall examine new text end 88.6 new text begin the application and on the basis of facts found by the commissioner and records maintained new text end 88.7 new text begin by the department, the application shall be determined to be valid or invalid within two new text end 88.8 new text begin weeks. If the application is determined to be valid, the commissioner shall promptly notify new text end 88.9 new text begin the applicant and any other interested party as to the week when benefits commence, new text end 88.10 new text begin the weekly benefit amount payable, and the maximum duration of those benefits. If the new text end 88.11 new text begin application is determined to be invalid, the commissioner shall notify the applicant and new text end 88.12 new text begin any other interested party of that determination and the reasons for it. If the processing new text end 88.13 new text begin of the application is delayed for any reason, the commissioner shall notify the applicant, new text end 88.14 new text begin in writing, within two weeks of the date the application for benefits is filed of the reason new text end 88.15 new text begin for the delay. Unless the applicant or any other interested party, within 30 days, requests new text end 88.16 new text begin a hearing before a benefit judge, the determination is final. For good cause shown, the new text end 88.17 new text begin 30-day period may be extended. At any time within one year from the date of a monetary new text end 88.18 new text begin determination, the commissioner, upon request of the applicant or on the commissioner's new text end 88.19 new text begin own initiative, may reconsider the determination if it is found that an error in computation new text end 88.20 new text begin or identity has occurred in connection with the determination or that additional wages new text end 88.21 new text begin pertinent to the applicant's status have become available, or if that determination has been new text end 88.22 new text begin made as a result of a nondisclosure or misrepresentation of a material fact. new text end 88.23    Sec. 18. new text begin [268B.06] EMPLOYER NOTIFICATION. new text end 88.24 new text begin (a) Upon a determination under section 268B.05 that an applicant is entitled to new text end 88.25 new text begin benefits, the commissioner must promptly send a notification to each current employer new text end 88.26 new text begin of the applicant, if any, in accordance with paragraph (b). new text end 88.27 new text begin (b) The notification under paragraph (a) must include, at a minimum: new text end 88.28 new text begin (1) the name of the applicant; new text end 88.29 new text begin (2) that the applicant has applied for and received benefits; new text end 88.30 new text begin (3) that the applicant has been identified as an employee of the employer; new text end 88.31 new text begin (4) the week the benefits commence; new text end 88.32 new text begin (5) the weekly benefit amount payable; new text end 88.33 new text begin (6) the maximum duration of benefits; new text end 88.34 new text begin (7) an explanation of why the notification has been sent; and new text end 89.1 new text begin (8) descriptions of the employer's right to participate in a hearing under section new text end 89.2 new text begin 268B.05, and appeal process under section 268B.07. new text end 89.3    Sec. 19. new text begin [268B.07] APPEAL PROCESS. new text end 89.4     new text begin Subdivision 1. new text end new text begin Hearing. new text end new text begin (a) The commissioner shall designate a chief benefit judge. new text end 89.5     new text begin (b) Upon a timely appeal to a determination having been filed or upon a referral new text end 89.6 new text begin for direct hearing, the chief benefit judge must set a time and date for a de novo due new text end 89.7 new text begin process hearing and send notice to an applicant and an employer, by mail or electronic new text end 89.8 new text begin transmission, not less than ten calendar days before the date of the hearing. new text end 89.9     new text begin (c) The commissioner may adopt rules on procedures for hearings. The rules need new text end 89.10 new text begin not conform to common law or statutory rules of evidence and other technical rules of new text end 89.11 new text begin procedure. new text end 89.12     new text begin (d) The chief benefit judge has discretion regarding the method by which the hearing new text end 89.13 new text begin is conducted. new text end 89.14     new text begin Subd. 2. new text end new text begin Decision. new text end new text begin (a) After the conclusion of the hearing, upon the evidence new text end 89.15 new text begin obtained, the benefit judge must send by mail or electronic transmission to all parties, the new text end 89.16 new text begin decision, reasons for the decision, and written findings of fact. new text end 89.17     new text begin (b) Decisions of a benefit judge are not precedential. new text end 89.18     new text begin Subd. 3. new text end new text begin Request for reconsideration. new text end new text begin Any party, or the commissioner, may, new text end 89.19 new text begin within 30 calendar days of the receipt of the benefit judge's decision, file a request for new text end 89.20 new text begin reconsideration asking the judge to reconsider that decision. new text end 89.21     new text begin Subd. 4. new text end new text begin Appeal to Court of Appeals. new text end new text begin Any final determination on a request for new text end 89.22 new text begin reconsideration may be appealed by any party directly to the Minnesota Court of Appeals. new text end 89.23     new text begin Subd. 5. new text end new text begin Benefit judges. new text end new text begin (a) Only employees of the department who are attorneys new text end 89.24 new text begin licensed to practice law in Minnesota may serve as a chief benefit judge, senior benefit new text end 89.25 new text begin judges who are supervisors, or benefit judges. new text end 89.26     new text begin (b) The chief benefit judge must assign a benefit judge to conduct a hearing and may new text end 89.27 new text begin transfer to another benefit judge any proceedings pending before another benefit judge. new text end 89.28    Sec. 20. new text begin [268B.08] BENEFITS. new text end 89.29     new text begin Subdivision 1. new text end new text begin Weekly benefit amount. new text end new text begin (a) Subject to the maximum weekly benefit new text end 89.30 new text begin amount, an applicant's weekly benefit is calculated by adding the amounts obtained by new text end 89.31 new text begin applying the following percentage to an applicant's average weekly wage earned with an new text end 89.32 new text begin employer as defined in section 268B.01, subdivision 8: new text end 89.33 new text begin (1) 80 percent of wages that do not exceed 50 percent of the state's average weekly new text end 89.34 new text begin wage; plus new text end 90.1 new text begin (2) 66 percent of wages that exceed 50 percent of the state's average weekly wage new text end 90.2 new text begin but not 100 percent; plus new text end 90.3 new text begin (3) 55 percent of wages that exceed 100 percent of the state's average weekly wage. new text end 90.4 new text begin (b) The average weekly wage of the applicant under paragraph (a) must be calculated new text end 90.5 new text begin by dividing the high quarter wage credits of the applicant by 13. new text end 90.6 new text begin (c) The state's average weekly wage is the average wage as calculated under section new text end 90.7 new text begin 268.035, subdivision 23, at the time a benefit amount is first determined. new text end 90.8 new text begin (d) Notwithstanding any other provision in this section, weekly benefits must not new text end 90.9 new text begin exceed the maximum weekly benefit amount applicable at the time benefit payments new text end 90.10 new text begin commence. new text end 90.11     new text begin Subd. 2. new text end new text begin Timing of payment. new text end new text begin Except as otherwise provided for in this chapter, new text end 90.12 new text begin benefits must be paid weekly. new text end 90.13     new text begin Subd. 3. new text end new text begin Method of payment. new text end new text begin The commissioner may pay benefits using any new text end 90.14 new text begin method or methods authorized for the payment of unemployment insurance benefits new text end 90.15 new text begin under chapter 268. new text end 90.16     new text begin Subd. 4. new text end new text begin Maximum length of benefits. new text end new text begin In a 52-week period, an applicant may new text end 90.17 new text begin receive a total of 12 weeks of benefits under this chapter. new text end 90.18     new text begin Subd. 5. new text end new text begin Minimum period for which benefits payable. new text end new text begin Any claim for benefits new text end 90.19 new text begin must be based on a single-qualifying benefit period of at least seven days; thereafter, new text end 90.20 new text begin benefits may be paid for a minimum increment of one day. new text end 90.21     new text begin Subd. 6. new text end new text begin Total paid benefits not to exceed average weekly wage. new text end new text begin An applicant's new text end 90.22 new text begin combined weekly employer-paid wage replacement benefits and benefits under this new text end 90.23 new text begin chapter must not exceed an applicant's average weekly wage. Benefits under this chapter new text end 90.24 new text begin must be reduced so those combined benefits do not exceed that amount. new text end 90.25     new text begin Subd. 7. new text end new text begin Withholding of federal tax. new text end new text begin If the Internal Revenue Service determines new text end 90.26 new text begin that benefits are subject to federal income tax, and an applicant elects to have federal new text end 90.27 new text begin income tax deducted and withheld from the applicant's benefits, the commissioner must new text end 90.28 new text begin deduct and withhold the amount specified in the Internal Revenue Code in a manner new text end 90.29 new text begin consistent with state law. new text end 90.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2020. new text end 90.31    Sec. 21. new text begin [268B.09] EMPLOYMENT PROTECTIONS. new text end 90.32     new text begin Subdivision 1. new text end new text begin Retaliation prohibited. new text end new text begin An employer must not retaliate against an new text end 90.33 new text begin employee for requesting or obtaining benefits, or for exercising any other right under new text end 90.34 new text begin this chapter. new text end 91.1     new text begin Subd. 2. new text end new text begin Waiver of rights void. new text end new text begin An agreement by an individual to waive, release, new text end 91.2 new text begin or commute rights to benefits under this chapter is void. An employer may not obstruct or new text end 91.3 new text begin impede an application for benefits. new text end 91.4     new text begin Subd. 3. new text end new text begin No assignment of benefits. new text end new text begin Any assignment, pledge, or encumbrance new text end 91.5 new text begin of benefits is void. Benefits are exempt from levy, execution, attachment, or any other new text end 91.6 new text begin remedy provided for the collection of debt. Any waiver of this subdivision is void. new text end 91.7     new text begin Subd. 4. new text end new text begin Remedies. new text end new text begin In addition to any other remedies available by law, an individual new text end 91.8 new text begin injured by a violation of this section may bring a civil action seeking any damages new text end 91.9 new text begin recoverable by law, together with costs and disbursements, including reasonable attorney new text end 91.10 new text begin fees, and may receive injunctive and other equitable relief as determined by a court. new text end 91.11     new text begin Subd. 5. new text end new text begin Leave and employment rights not created. new text end new text begin This chapter does not create new text end 91.12 new text begin a right to employment leave to an individual receiving benefits under this chapter. This new text end 91.13 new text begin chapter does not create a right to return to an employment position before, during, or after new text end 91.14 new text begin the receipt of benefits under this chapter. new text end 91.15    Sec. 22. new text begin [268B.10] SUBSTITUTION OF OTHER PLAN; EMPLOYER new text end 91.16 new text begin EXCLUSION. new text end 91.17     new text begin Subdivision 1. new text end new text begin Application for exclusion. new text end new text begin An employer may apply to the new text end 91.18 new text begin commissioner to be excluded from either or both the family and medical benefit programs new text end 91.19 new text begin under this chapter. new text end 91.20     new text begin Subd. 2. new text end new text begin Requirements for approving exclusion. new text end new text begin The commissioner must approve new text end 91.21 new text begin an application for exclusion from a program under this chapter if the commissioner finds new text end 91.22 new text begin that the employer provides a benefit plan that: new text end 91.23 new text begin (1) covers all of the employees that would be covered by a program under this chapter; new text end 91.24 new text begin (2) provides an amount of employer-provided wage benefits that when combined new text end 91.25 new text begin with other employer-paid and employee-paid wage benefits is approximately equal to or new text end 91.26 new text begin greater than that provided under the program; and new text end 91.27 new text begin (3) does not require employee payments that exceed employee payments required new text end 91.28 new text begin under this chapter. new text end 91.29     new text begin Subd. 3. new text end new text begin Audit and investigation. new text end new text begin The commissioner may investigate and audit new text end 91.30 new text begin plans for which an exclusion was approved under this section both before and after an new text end 91.31 new text begin exclusion is approved. new text end 91.32 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2019, for exclusions new text end 91.33 new text begin commencing January 1, 2020, and thereafter. new text end 91.34    Sec. 23. new text begin [268B.11] SELF-EMPLOYED ELECTION OF COVERAGE. new text end 92.1 new text begin (a) A self-employed individual may file with the commissioner, by electronic new text end 92.2 new text begin transmission in a format prescribed by the commissioner, an election that the individual is new text end 92.3 new text begin covered as an employee for not less than two calendar years. Upon the approval of the new text end 92.4 new text begin commissioner, sent by United States mail or electronic transmission, the individual is new text end 92.5 new text begin covered as an employee under this chapter beginning the calendar quarter after the date new text end 92.6 new text begin of approval or beginning in a later calendar quarter if requested by the employer. The new text end 92.7 new text begin individual ceases to be covered as of the first day of January of any calendar year only if, new text end 92.8 new text begin at least 30 calendar days before the first day of January, the individual has filed with the new text end 92.9 new text begin commissioner, by electronic transmission in a format prescribed by the commissioner, a new text end 92.10 new text begin notice to that effect. new text end 92.11 new text begin (b) The commissioner must terminate any election agreement under this section new text end 92.12 new text begin upon 30 calendar days' notice sent by mail or electronic transmission if the individual is new text end 92.13 new text begin delinquent on any taxes due under this chapter. new text end 92.14 new text begin (c) The individual electing under this section must pay both the employer and new text end 92.15 new text begin employee taxes under section 268B.12. new text end 92.16 new text begin (d) The individual must comply with the requirements imposed on employers and new text end 92.17 new text begin employees under this chapter except to the extent the commissioner determines requiring new text end 92.18 new text begin compliance is unreasonable. new text end 92.19    Sec. 24. new text begin [268B.111] SMALL EMPLOYER ELECTION OF COVERAGE. new text end 92.20 new text begin An employer of less than 21 employees may elect to be an employer subject to new text end 92.21 new text begin chapter 268B. An election must be filed with the commissioner by electronic transmission new text end 92.22 new text begin in a format prescribed by the commissioner. An election must be for not less than two new text end 92.23 new text begin calendar years following the year of election. The commissioner shall notify an employer new text end 92.24 new text begin of the effective date of an election which must be the beginning of the first quarter the new text end 92.25 new text begin commissioner determines is administratively practical. new text end 92.26    Sec. 25. new text begin [268B.12] TAXATION. new text end 92.27     new text begin Subdivision 1. new text end new text begin Employer. new text end new text begin (a) Each taxpaying employer under the state's new text end 92.28 new text begin unemployment insurance program must pay a tax on the wages paid to employees in new text end 92.29 new text begin covered employment for each calendar year. The tax must be paid on all wages up to the new text end 92.30 new text begin maximum specified by this section. new text end 92.31 new text begin (b) Each reimbursing employer under the state's unemployment insurance law must new text end 92.32 new text begin pay a tax on the wages paid to employees in covered employment in the same amount new text end 92.33 new text begin and manner as provided by paragraph (a). new text end 93.1     new text begin Subd. 2. new text end new text begin Employee. new text end new text begin Each employee on whose wages a tax is paid under this new text end 93.2 new text begin section must pay a tax equal to that of the employer under this section. The employer new text end 93.3 new text begin shall withhold employee taxes from the wages of an employee and make payment to the new text end 93.4 new text begin commissioner on behalf of an employee. new text end 93.5     new text begin Subd. 3. new text end new text begin Wages subject to tax. new text end new text begin The maximum wages subject to tax in a calendar new text end 93.6 new text begin year is equal to the maximum earnings in that year subject to the FICA Old-Age, new text end 93.7 new text begin Survivors, and Disability Insurance tax. new text end 93.8     new text begin Subd. 4. new text end new text begin Annual tax rates. new text end new text begin The employer tax rates for the calendar year beginning new text end 93.9 new text begin January 1, 2020, shall be as follows: new text end 93.10 new text begin (1) for employers participating in both family and medical benefit programs, 0.09 new text end 93.11 new text begin percent; new text end 93.12 new text begin (2) for an employer participating in only the medical benefit program and opting out new text end 93.13 new text begin of the family benefit program, 0.08 percent; and new text end 93.14 new text begin (3) for an employer participating in only the family benefit program and opting out new text end 93.15 new text begin of the medical benefit program, 0.01 percent. new text end 93.16     new text begin Subd. 5. new text end new text begin Tax rate adjustments. new text end new text begin (a) Each calendar year following the calendar year new text end 93.17 new text begin beginning January 1, 2020, except calendar year 2021, the commissioner must adjust the new text end 93.18 new text begin annual tax rates using the formula in paragraph (b). new text end 93.19 new text begin (b) To calculate the employer tax rates for a calendar year, the commissioner must: new text end 93.20 new text begin (1) multiply 1.45 times the amount disbursed from the account for the 52-week new text end 93.21 new text begin period ending September 30 of the prior year; new text end 93.22 new text begin (2) subtract the amount in the account on that September 30 from the resulting figure; new text end 93.23 new text begin (3) divide the resulting figure by twice the total wages in covered employment of new text end 93.24 new text begin employees of employers that have not opted out of both the family and medical benefit new text end 93.25 new text begin programs. For employees of employers that have opted out of one of the two programs, new text end 93.26 new text begin count only the proportion of wages in covered employment associated with the program of new text end 93.27 new text begin which the employer did not opt out; and new text end 93.28 new text begin (4) round the resulting figure down to the nearest one-tenth of one percent. new text end 93.29 new text begin (c) For calendar year 2021, the calculation shall be as provided in paragraph new text end 93.30 new text begin (b), except that the disbursements in clause (1) shall be those for the 39 weeks ending new text end 93.31 new text begin September 30, and projected disbursements for the next 13 weeks. new text end 93.32 new text begin (d) The commissioner must not increase or decrease the employer tax rate by more new text end 93.33 new text begin than 0.1 percent each year. new text end 93.34 new text begin (e) The commissioner must apportion the tax rate between the family and medical new text end 93.35 new text begin benefit programs based on the relative proportion of expenditures for each program during new text end 93.36 new text begin the preceding year. new text end 94.1     new text begin Subd. 6. new text end new text begin Tax rate limits. new text end new text begin The aggregate tax rate of employers and employees under new text end 94.2 new text begin this chapter must not be less than 0.01 percent or more than 1.5 percent annually. new text end 94.3     new text begin Subd. 7. new text end new text begin Collection of taxes; efficiencies. new text end new text begin For collection of taxes under this section, new text end 94.4 new text begin the commissioner must, to the maximum extent possible, use the same collection process new text end 94.5 new text begin as that used for collection of unemployment insurance taxes. new text end 94.6     new text begin Subd. 8. new text end new text begin Deposit of taxes. new text end new text begin All taxes collected under this section must be deposited new text end 94.7 new text begin into the account. new text end 94.8    Sec. 26. new text begin [268B.13] COLLECTION OF TAXES. new text end 94.9     new text begin Subdivision 1. new text end new text begin Amount computed presumed correct. new text end new text begin Any amount due from an new text end 94.10 new text begin employer, as computed by the commissioner, is presumed to be correctly determined and new text end 94.11 new text begin assessed, and the burden is upon the employer to show its incorrectness. A statement new text end 94.12 new text begin by the commissioner of the amount due is admissible in evidence in any court or new text end 94.13 new text begin administrative proceeding and is prima facie evidence of the facts in the statement. new text end 94.14     new text begin Subd. 2. new text end new text begin Priority of payments. new text end new text begin (a) Any payment received from an employer must new text end 94.15 new text begin be applied in the following order: new text end 94.16 new text begin (1) taxes due under this chapter; then new text end 94.17 new text begin (2) interest on past due taxes; then new text end 94.18 new text begin (3) penalties, late fees, administrative service fees, and costs. new text end 94.19     new text begin (b) Paragraph (a) is the priority used for all payments received from an employer, new text end 94.20 new text begin regardless of how the employer may designate the payment to be applied, except when: new text end 94.21     new text begin (1) there is an outstanding lien and the employer designates that the payment made new text end 94.22 new text begin should be applied to satisfy the lien; new text end 94.23     new text begin (2) a court or administrative order directs that the payment be applied to a specific new text end 94.24 new text begin obligation; new text end 94.25     new text begin (3) a preexisting payment plan provides for the application of payment; or new text end 94.26     new text begin (4) the commissioner agrees to apply the payment to a different priority. new text end 94.27     new text begin Subd. 3. new text end new text begin Costs. new text end new text begin (a) Any employer that fails to pay any amount when due under this new text end 94.28 new text begin chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral new text end 94.29 new text begin to any public or private collection agency, or litigation costs, including attorney fees, new text end 94.30 new text begin incurred in the collection of the amounts due. new text end 94.31     new text begin (b) If any tendered payment of any amount due is not honored when presented to a new text end 94.32 new text begin financial institution for payment, any costs assessed to the department by the financial new text end 94.33 new text begin institution and a fee of $25 must be assessed to the person. new text end 94.34     new text begin (c) Costs and fees collected under this subdivision are credited to the account. new text end 95.1     new text begin Subd. 4. new text end new text begin Interest on amounts past due. new text end new text begin If any amounts due from an employer new text end 95.2 new text begin under this chapter, except late fees, are not received on the date due, the unpaid balance new text end 95.3 new text begin bears interest at the rate of one percent per month or any part of a month. Interest collected new text end 95.4 new text begin under this subdivision is payable to the account. new text end 95.5     new text begin Subd. 5. new text end new text begin Interest on judgments. new text end new text begin Regardless of section new text end new text begin , if judgment is new text end 95.6 new text begin entered upon any past due amounts from an employer under this chapter, the unpaid new text end 95.7 new text begin judgment bears interest at the rate specified in subdivision 4 until the date of payment. new text end 95.8     new text begin Subd. 6. new text end new text begin Credit adjustments; refunds. new text end new text begin (a) If an employer makes an application for new text end 95.9 new text begin a credit adjustment of any amount paid under this chapter within four years of the date new text end 95.10 new text begin that the payment was due, in a manner and format prescribed by the commissioner, and new text end 95.11 new text begin the commissioner determines that the payment or any portion thereof was erroneous, new text end 95.12 new text begin the commissioner must make an adjustment and issue a credit without interest. If a new text end 95.13 new text begin credit cannot be used, the commissioner must refund, without interest, the amount new text end 95.14 new text begin erroneously paid. The commissioner, on the commissioner's own motion, may make a new text end 95.15 new text begin credit adjustment or refund under this subdivision. new text end 95.16     new text begin (b) Any refund returned to the commissioner is considered unclaimed property new text end 95.17 new text begin under chapter 345. new text end 95.18     new text begin (c) If a credit adjustment or refund is denied in whole or in part, a determination of new text end 95.19 new text begin denial must be sent to the employer by United States mail or electronic transmission. The new text end 95.20 new text begin determination of denial is final unless an employer files an appeal within 20 calendar days new text end 95.21 new text begin after receipt of the determination. new text end 95.22     new text begin Subd. 7. new text end new text begin Priorities under legal dissolutions or distributions. new text end new text begin In the event of new text end 95.23 new text begin any distribution of an employer's assets according to an order of any court, including new text end 95.24 new text begin any receivership, assignment for benefit of creditors, adjudicated insolvency, or similar new text end 95.25 new text begin proceeding, taxes then or thereafter due must be paid in full before all other claims, new text end 95.26 new text begin except claims for wages of not more than $1,000 per former employee that are earned new text end 95.27 new text begin within six months of the commencement of the proceedings. In the event of an employer's new text end 95.28 new text begin adjudication in bankruptcy under federal law, taxes then or thereafter due are entitled to new text end 95.29 new text begin the priority provided in that law for taxes due. new text end 95.30    Sec. 27. new text begin [268B.14] ADMINISTRATIVE COSTS. new text end 95.31 new text begin For the calendar year beginning January 1, 2020, and each calendar year thereafter, new text end 95.32 new text begin the commissioner may spend up to seven percent of projected benefit payments for that new text end 95.33 new text begin calendar year for the administration of this chapter. new text end 95.34    Sec. 28. new text begin [268B.15] PUBLIC OUTREACH. new text end 96.1 new text begin The commissioner may use administrative funds for the purpose of outreach and new text end 96.2 new text begin education for employees regarding this chapter. This may include providing grants to new text end 96.3 new text begin public and private persons and entities. new text end 96.4    Sec. 29. new text begin [268B.16] APPLICANT'S FALSE REPRESENTATIONS; new text end 96.5 new text begin CONCEALMENT OF FACTS; PENALTY. new text end 96.6 new text begin (a) Any applicant who knowingly makes a false statement or representation, new text end 96.7 new text begin knowingly fails to disclose a material fact, or makes a false statement or representation new text end 96.8 new text begin without a good-faith belief as to the correctness of the statement or representation, in order new text end 96.9 new text begin to obtain or in an attempt to obtain benefits may be assessed, in addition to any other new text end 96.10 new text begin penalties, an administrative penalty of ineligibility of benefits for 13 to 104 weeks. new text end 96.11 new text begin (b) A determination of ineligibility setting out the weeks the applicant is ineligible new text end 96.12 new text begin must be sent to the applicant by United States mail or electronic transmission. The new text end 96.13 new text begin determination is final unless an appeal is filed within 30 calendar days after receipt of new text end 96.14 new text begin the determination. new text end 96.15    Sec. 30. new text begin [268B.17] EMPLOYER MISCONDUCT; PENALTY. new text end 96.16 new text begin (a) The commissioner must penalize an employer if that employer or any employee, new text end 96.17 new text begin officer, or agent of that employer is in collusion with any applicant for the purpose of new text end 96.18 new text begin assisting the applicant in receiving benefits fraudulently. The penalty is $500 or the new text end 96.19 new text begin amount of benefits determined to be overpaid, whichever is greater. new text end 96.20     new text begin (b) The commissioner must penalize an employer if that employer or any employee, new text end 96.21 new text begin officer, or agent of that employer: new text end 96.22     new text begin (1) made a false statement or representation knowing it to be false; new text end 96.23     new text begin (2) made a false statement or representation without a good-faith belief as to the new text end 96.24 new text begin correctness of the statement or representation; or new text end 96.25     new text begin (3) knowingly failed to disclose a material fact. new text end 96.26     new text begin (c) The penalty is the greater of $500 or 50 percent of the following resulting from new text end 96.27 new text begin the employer's action: new text end 96.28 new text begin (1) the amount of any overpaid benefits to an applicant; new text end 96.29 new text begin (2) the amount of benefits not paid to an applicant that would otherwise have new text end 96.30 new text begin been paid; or new text end 96.31 new text begin (3) the amount of any payment required from the employer under this chapter that new text end 96.32 new text begin was not paid. new text end 96.33     new text begin (d) Penalties must be paid within 30 calendar days of issuance of the determination new text end 96.34 new text begin of penalty and credited to the account. new text end 97.1     new text begin (e) The determination of penalty is final unless the employer files an appeal within new text end 97.2 new text begin 30 calendar days after the sending of the determination of penalty to the employer by new text end 97.3 new text begin United States mail or electronic transmission. new text end 97.4    Sec. 31. new text begin [268B.18] RECORDS; AUDITS. new text end 97.5 new text begin (a) Each employer must keep true and accurate records on individuals performing new text end 97.6 new text begin services for the employer, containing the information the commissioner may require new text end 97.7 new text begin under this chapter. The records must be kept for a period of not less than four years new text end 97.8 new text begin in addition to the current calendar year. new text end 97.9     new text begin (b) For the purpose of administering this chapter, the commissioner has the power to new text end 97.10 new text begin investigate, audit, examine, or cause to be supplied or copied, any books, correspondence, new text end 97.11 new text begin papers, records, or memoranda that are the property of, or in the possession of, an new text end 97.12 new text begin employer or any other person at any reasonable time and as often as may be necessary. new text end 97.13     new text begin (c) An employer or other person that refuses to allow an audit of its records by the new text end 97.14 new text begin department or that fails to make all necessary records available for audit in the state upon new text end 97.15 new text begin request of the commissioner may be assessed an administrative penalty of $500. The new text end 97.16 new text begin penalty collected is credited to the account. new text end 97.17    Sec. 32. new text begin [268B.19] SUBPOENAS; OATHS. new text end 97.18     new text begin (a) The commissioner or benefit judge has authority to administer oaths and new text end 97.19 new text begin affirmations, take depositions, certify to official acts, and issue subpoenas to compel the new text end 97.20 new text begin attendance of individuals and the production of documents and other personal property new text end 97.21 new text begin necessary in connection with the administration of this chapter. new text end 97.22     new text begin (b) Individuals subpoenaed, other than applicants or officers and employees of an new text end 97.23 new text begin employer that is the subject of the inquiry, must be paid witness fees the same as witness new text end 97.24 new text begin fees in civil actions in district court. The fees need not be paid in advance. new text end 97.25     new text begin (c) The subpoena is enforceable through the district court in Ramsey County. new text end 97.26    Sec. 33. new text begin [268B.20] MEDIATION AND CONCILIATION. new text end 97.27 new text begin The department must offer mediation and conciliation services to employers and new text end 97.28 new text begin applicants to resolve disputes concerning benefits under this chapter. The commissioner new text end 97.29 new text begin shall notify parties of the availability of those services and may by rule extend appeal new text end 97.30 new text begin deadlines to accommodate conciliation and mediation. new text end 97.31    Sec. 34. Minnesota Statutes 2014, section 270B.14, subdivision 2, is amended to read: 98.1    Subd. 2. Disclosure to Department of Employment and Economic Development. 98.2(a) Data relating to individuals are treated as follows: 98.3(1) Return information may be disclosed to the Department of Employment and 98.4Economic Development to the extent provided in clause (2) and for the purposes provided 98.5in clause (3). 98.6(2) The data that may be disclosed is limited to the amount of gross income earned by 98.7an individual, the total amounts of earnings from each employer, and the employer's name. 98.8(3) Data may be requested pertaining only to individuals who have claimed benefits 98.9under sections 268.03 to 268.23 new text begin and 268B.01 to 268B.20 new text end and only if the individuals are 98.10the subject of investigations based on other information available to the Department of 98.11Employment and Economic Development. Data received may be used only as set forth in 98.12section 268.19, subdivision 1, paragraph (b). 98.13(b) Data pertaining to corporations or other employing units may be disclosed to 98.14the Department of Employment and Economic Development to the extent necessary for 98.15the proper enforcement of chapter new text begin chapters new text end 268 new text begin and 268B new text end . 98.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 98.17    Sec. 35. new text begin INITIAL TAX RATES FOR FAMILY AND MEDICAL BENEFIT new text end 98.18 new text begin PROGRAM. new text end 98.19 new text begin Notwithstanding any other law to the contrary, the tax rate for employers subject new text end 98.20 new text begin to tax under Minnesota Statutes, section 268B.12, and employees in an equal amount, is new text end 98.21 new text begin 0.045 percent in calendar year 2019. new text end 98.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective August 1, 2016. new text end 98.23    Sec. 36. new text begin FAMILY AND MEDICAL LEAVE BENEFIT PROGRAM; new text end 98.24 new text begin APPROPRIATION. new text end 98.25 new text begin $6,983,000 in fiscal year 2017 is appropriated from the general fund to the new text end 98.26 new text begin commissioner of employment and economic development for the purposes of Minnesota new text end 98.27 new text begin Statutes, chapter 268B. The base for fiscal year 2018 is $9,201,000, the base for fiscal year new text end 98.28 new text begin 2019 is $9,667,000, and the base for fiscal years 2020 and later is zero. new text end 98.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2016. new text end 98.30    Sec. 37. new text begin EFFECTIVE DATE INTENTION. new text end 98.31 new text begin The intention of the legislature is that benefits under Minnesota Statutes, chapter new text end 98.32 new text begin 268B, shall not be applied for nor paid until January 1, 2020, and thereafter. The sections new text end 99.1 new text begin of this article are effective August 1, 2016, unless specifically provided otherwise in new text end 99.2 new text begin this article. new text end