<a id="pl.1.3"></a><var>1.3</var>income and corporate franchise, property, sales and use, special, local, and <br/>
<a id="pl.1.4"></a><var>1.4</var>other taxes and tax-related provisions; providing for and expanding credits; <br/>
<a id="pl.1.5"></a><var>1.5</var>authorizing riparian protection aid; providing property tax exemptions and <br/>
<a id="pl.1.6"></a><var>1.6</var>refunds; authorizing sales and use tax exemptions; modifying sales and use tax <br/>
<a id="pl.1.7"></a><var>1.7</var>remittances; providing for and modifying certain local development projects; <br/>
<a id="pl.1.8"></a><var>1.8</var>modifying special taxing districts; authorizing issuance of bonds; providing for <br/>
<a id="pl.1.9"></a><var>1.9</var>paid family and medical leave benefits; transferring approval authority from Iron <br/>
<a id="pl.1.10"></a><var>1.10</var>Range Resources and Rehabilitation Board to the commissioner of Iron Range <br/>
<a id="pl.1.11"></a><var>1.11</var>resources and rehabilitation; authorizing early separation incentive program; <br/>
<a id="pl.1.12"></a><var>1.12</var>appropriating money;amending Minnesota Statutes 2014, sections 13.719, by <br/>
<a id="pl.1.13"></a><var>1.13</var>adding a subdivision; 15.38, subdivision 7; 116J.424; 116J.8737, subdivision <br/>
<a id="pl.1.14"></a><var>1.14</var>2; 181.940, subdivisions 2, 4; 181.941, subdivision 4; 181.942, subdivision 1; <br/>
<a id="pl.1.15"></a><var>1.15</var>181.943; 216B.161, subdivision 1; 256J.561, by adding a subdivision; 256J.95, <br/>
<a id="pl.1.16"></a><var>1.16</var>subdivisions 3, 11; 268.19, subdivision 1; 270B.14, subdivision 2; 272.162; <br/>
<a id="pl.1.17"></a><var>1.17</var>276A.01, subdivisions 8, 17; 282.38, subdivision 1; 290.01, subdivisions 19a, <br/>
<a id="pl.1.18"></a><var>1.18</var>19b, 19c; 290.06, by adding a subdivision; 290.091, subdivision 2; 297A.66, <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivisions 1, 3, 4, by adding subdivisions; 297A.71, by adding subdivisions; <br/>
<a id="pl.1.20"></a><var>1.20</var>297A.75, subdivisions 1, 2, 3; 298.001, subdivision 8; 298.22, subdivisions 1a, <br/>
<a id="pl.1.21"></a><var>1.21</var>5a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 298.2213, subdivisions 4, 5, <br/>
<a id="pl.1.22"></a><var>1.22</var>6; 298.223, subdivisions 1, 2; 298.227; 298.28, subdivisions 7a, 9d; 298.292, <br/>
<a id="pl.1.23"></a><var>1.23</var>subdivision 2; 298.294; 298.296, subdivisions 1, 2, 4; 298.2961, subdivisions 2, <br/>
<a id="pl.1.24"></a><var>1.24</var>4; 298.298; 298.46, subdivision 2; 473.39, by adding a subdivision; Minnesota <br/>
<a id="pl.1.25"></a><var>1.25</var>Statutes 2015 Supplement, sections 256P.01, subdivision 3; 289A.02, subdivision <br/>
<a id="pl.1.26"></a><var>1.26</var>7; 290.01, subdivisions 19, 31; 290.0671, subdivision 1; 290A.03, subdivision <br/>
<a id="pl.1.27"></a><var>1.27</var>15; 291.005, subdivision 1; Laws 1988, chapter 645, section 3, as amended; <br/>
<a id="pl.1.28"></a><var>1.28</var>Laws 2008, chapter 154, article 9, section 21, subdivision 2; Laws 2009, chapter <br/>
<a id="pl.1.29"></a><var>1.29</var>88, article 2, section 46, subdivisions 1, as amended, 2, 3, as amended, 4, 5; <br/>
<a id="pl.1.30"></a><var>1.30</var>Laws 2014, chapter 308, article 6, section 9; proposing coding for new law in <br/>
<a id="pl.1.31"></a><var>1.31</var>Minnesota Statutes, chapters 181; 216B; 270C; 290; 469; 477A; proposing <br/>
<a id="pl.1.32"></a><var>1.32</var>coding for new law as Minnesota Statutes, chapter 268B.<br/>
<a id="pl.1.33"></a><var>1.33</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.2.3"></a><var>2.3</var>    Section 1. Minnesota Statutes 2014, section 116J.8737, subdivision 2, is amended to <br/>
<a id="pl.2.4"></a><var>2.4</var>read:<br/>
<a id="pl.2.5"></a><var>2.5</var>    Subd. 2. <b>Certification of qualified small businesses.</b> (a) Businesses may apply <br/>
<a id="pl.2.6"></a><var>2.6</var>to the commissioner for certification as a qualified small business or qualified greater <br/>
<a id="pl.2.7"></a><var>2.7</var>Minnesota small business for a calendar year. The application must be in the form <br/>
<a id="pl.2.8"></a><var>2.8</var>and be made under the procedures specified by the commissioner, accompanied by an <br/>
<a id="pl.2.9"></a><var>2.9</var>application fee of $150. Application fees are deposited in the small business investment <br/>
<a id="pl.2.10"></a><var>2.10</var>tax credit administration account in the special revenue fund. The application for <br/>
<a id="pl.2.11"></a><var>2.11</var>certification for 2010 must be made available on the department's Web site by August 1, <br/>
<a id="pl.2.12"></a><var>2.12</var>2010. Applications for subsequent years' certification must be made available on the <br/>
<a id="pl.2.13"></a><var>2.13</var>department's Web site by November 1 of the preceding year.<br/>
<a id="pl.2.14"></a><var>2.14</var>(b) Within 30 days of receiving an application for certification under this subdivision, <br/>
<a id="pl.2.15"></a><var>2.15</var>the commissioner must either certify the business as satisfying the conditions required <br/>
<a id="pl.2.16"></a><var>2.16</var>of a qualified small business or qualified greater Minnesota small business, request <br/>
<a id="pl.2.17"></a><var>2.17</var>additional information from the business, or reject the application for certification. If <br/>
<a id="pl.2.18"></a><var>2.18</var>the commissioner requests additional information from the business, the commissioner <br/>
<a id="pl.2.19"></a><var>2.19</var>must either certify the business or reject the application within 30 days of receiving the <br/>
<a id="pl.2.20"></a><var>2.20</var>additional information. If the commissioner neither certifies the business nor rejects <br/>
<a id="pl.2.21"></a><var>2.21</var>the application within 30 days of receiving the original application or within 30 days of <br/>
<a id="pl.2.22"></a><var>2.22</var>receiving the additional information requested, whichever is later, then the application is <br/>
<a id="pl.2.23"></a><var>2.23</var>deemed rejected, and the commissioner must refund the $150 application fee. A business <br/>
<a id="pl.2.24"></a><var>2.24</var>that applies for certification and is rejected may reapply.<br/>
<a id="pl.2.25"></a><var>2.25</var>(c) To receive certification as a qualified small business, a business must satisfy <br/>
<a id="pl.2.26"></a><var>2.26</var>all of the following conditions:<br/>
<a id="pl.2.27"></a><var>2.27</var>(1) the business has its headquarters in Minnesota;<br/>
<a id="pl.2.28"></a><var>2.28</var>(2) at least: (i) 51 percent of the business's employees are employed in Minnesota, <br/>
<a id="pl.2.29"></a><var>2.29</var>and; (ii) 51 percent of the business's total payroll is paid or incurred in the state; and (iii) <br/>
<a id="pl.2.30"></a><var>2.30</var>51 percent of the total value of all contractual agreements to which the business is a party <br/>
<a id="pl.2.31"></a><var>2.31</var>in connection with its primary business activity is for services performed under contract in <br/>
<a id="pl.2.32"></a><var>2.32</var>Minnesota, unless the business obtains a waiver under paragraph (i);<br/>
<a id="pl.2.33"></a><var>2.33</var>(3) the business is engaged in, or is committed to engage in, innovation in Minnesota <br/>
<a id="pl.2.34"></a><var>2.34</var>in one of the following as its primary business activity:<br/>
<a id="pl.3.1"></a><var>3.1</var>(i) using proprietary technology to add value to a product, process, or service in a <br/>
<a id="pl.3.2"></a><var>3.2</var>qualified high-technology field;<br/>
<a id="pl.3.3"></a><var>3.3</var>(ii) researching or developing a proprietary product, process, or service in a qualified <br/>
<a id="pl.3.4"></a><var>3.4</var>high-technology field;<br/>
<a id="pl.3.5"></a><var>3.5</var>(iii) researching or developing a proprietary product, process, or service in the fields <br/>
<a id="pl.3.6"></a><var>3.6</var>of agriculture, tourism, forestry, mining, manufacturing, or transportation; or<br/>
<a id="pl.3.7"></a><var>3.7</var>(iv) researching, developing, or producing a new proprietary technology for use in <br/>
<a id="pl.3.8"></a><var>3.8</var>the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;<br/>
<a id="pl.3.9"></a><var>3.9</var>(4) other than the activities specifically listed in clause (3), the business is not <br/>
<a id="pl.3.10"></a><var>3.10</var>engaged in real estate development, insurance, banking, lending, lobbying, political <br/>
<a id="pl.3.11"></a><var>3.11</var>consulting, information technology consulting, wholesale or retail trade, leisure, <br/>
<a id="pl.3.12"></a><var>3.12</var>hospitality, transportation, construction, ethanol production from corn, or professional <br/>
<a id="pl.3.13"></a><var>3.13</var>services provided by attorneys, accountants, business consultants, physicians, or health <br/>
<a id="pl.3.14"></a><var>3.14</var>care consultants;<br/>
<a id="pl.3.15"></a><var>3.15</var>(5) the business has fewer than 25 employees;<br/>
<a id="pl.3.16"></a><var>3.16</var>(6) the business must pay its employees annual wages of at least 175 percent of the <br/>
<a id="pl.3.17"></a><var>3.17</var>federal poverty guideline for the year for a family of four and must pay its interns annual <br/>
<a id="pl.3.18"></a><var>3.18</var>wages of at least 175 percent of the federal minimum wage used for federally covered <br/>
<a id="pl.3.19"></a><var>3.19</var>employers, except that this requirement must be reduced proportionately for employees <br/>
<a id="pl.3.20"></a><var>3.20</var>and interns who work less than full-time, and does not apply to an executive, officer, or <br/>
<a id="pl.3.21"></a><var>3.21</var>member of the board of the business, or to any employee who owns, controls, or holds <br/>
<a id="pl.3.22"></a><var>3.22</var>power to vote more than 20 percent of the outstanding securities of the business;<br/>
<a id="pl.3.23"></a><var>3.23</var>(7) the business has (i) not been in operation for more than ten years, or (ii) not <br/>
<a id="pl.3.24"></a><var>3.24</var>been in operation for more than 20 years if the business is engaged in the research, <br/>
<a id="pl.3.25"></a><var>3.25</var>development, or production of medical devices or pharmaceuticals for which United <br/>
<a id="pl.3.26"></a><var>3.26</var>States Food and Drug Administration approval is required for use in the treatment or <br/>
<a id="pl.3.27"></a><var>3.27</var>diagnosis of a disease or condition;<br/>
<a id="pl.3.28"></a><var>3.28</var>(8) the business has not previously received private equity investments of more <br/>
<a id="pl.3.29"></a><var>3.29</var>than $4,000,000;<br/>
<a id="pl.3.30"></a><var>3.30</var>    (9) the business is not an entity disqualified under section 
         <statute_ref>80A.50</statute_ref>, paragraph (b), <br/>
<a id="pl.3.31"></a><var>3.31</var>clause (3); and<br/>
<a id="pl.3.32"></a><var>3.32</var>(10) the business has not issued securities that are traded on a public exchange.<br/>
<a id="pl.3.33"></a><var>3.33</var>(d) In applying the limit under paragraph (c), clause (5), the employees in all members <br/>
<a id="pl.3.34"></a><var>3.34</var>of the unitary business, as defined in section 
         <statute_ref>290.17, subdivision 4</statute_ref>, must be included.<br/>
<a id="pl.3.35"></a><var>3.35</var>(e) In order for a qualified investment in a business to be eligible for tax credits:<br/>
<a id="pl.4.1"></a><var>4.1</var>(1) the business must have applied for and received certification for the calendar <br/>
<a id="pl.4.2"></a><var>4.2</var>year in which the investment was made prior to the date on which the qualified investment <br/>
<a id="pl.4.3"></a><var>4.3</var>was made;<br/>
<a id="pl.4.4"></a><var>4.4</var>(2) the business must not have issued securities that are traded on a public exchange;<br/>
<a id="pl.4.5"></a><var>4.5</var>(3) the business must not issue securities that are traded on a public exchange within <br/>
<a id="pl.4.6"></a><var>4.6</var>180 days after the date on which the qualified investment was made; and<br/>
<a id="pl.4.7"></a><var>4.7</var>(4) the business must not have a liquidation event within 180 days after the date on <br/>
<a id="pl.4.8"></a><var>4.8</var>which the qualified investment was made.<br/>
<a id="pl.4.9"></a><var>4.9</var>(f) The commissioner must maintain a list of qualified small businesses and qualified <br/>
<a id="pl.4.10"></a><var>4.10</var>greater Minnesota businesses certified under this subdivision for the calendar year and <br/>
<a id="pl.4.11"></a><var>4.11</var>make the list accessible to the public on the department's Web site.<br/>
<a id="pl.4.12"></a><var>4.12</var>(g) For purposes of this subdivision, the following terms have the meanings given:<br/>
<a id="pl.4.13"></a><var>4.13</var>(1) "qualified high-technology field" includes aerospace, agricultural processing, <br/>
<a id="pl.4.14"></a><var>4.14</var>renewable energy, energy efficiency and conservation, environmental engineering, food <br/>
<a id="pl.4.15"></a><var>4.15</var>technology, cellulosic ethanol, information technology, materials science technology, <br/>
<a id="pl.4.16"></a><var>4.16</var>nanotechnology, telecommunications, biotechnology, medical device products, <br/>
<a id="pl.4.17"></a><var>4.17</var>pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields;<br/>
<a id="pl.4.18"></a><var>4.18</var>(2) "proprietary technology" means the technical innovations that are unique and <br/>
<a id="pl.4.19"></a><var>4.19</var>legally owned or licensed by a business and includes, without limitation, those innovations <br/>
<a id="pl.4.20"></a><var>4.20</var>that are patented, patent pending, a subject of trade secrets, or copyrighted; and<br/>
<a id="pl.4.21"></a><var>4.21</var>(3) "greater Minnesota" means the area of Minnesota located outside of the <br/>
<a id="pl.4.22"></a><var>4.22</var>metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>.<br/>
<a id="pl.4.23"></a><var>4.23</var>(h) To receive certification as a qualified greater Minnesota business, a business must <br/>
<a id="pl.4.24"></a><var>4.24</var>satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:<br/>
<a id="pl.4.25"></a><var>4.25</var>(1) the business has its headquarters in greater Minnesota; and<br/>
<a id="pl.4.26"></a><var>4.26</var>(2) at least: (i) 51 percent of the business's employees are employed in greater <br/>
<a id="pl.4.27"></a><var>4.27</var>Minnesota, and; (ii) 51 percent of the business's total payroll is paid or incurred in greater <br/>
<a id="pl.4.28"></a><var>4.28</var>Minnesota; and (iii) 51 percent of the total value of all contractual agreements to which <br/>
<a id="pl.4.29"></a><var>4.29</var>the business is a party in connection with its primary business activity is for services <br/>
<a id="pl.4.30"></a><var>4.30</var>performed under contract in greater Minnesota, unless the business obtains a waiver <br/>
<a id="pl.4.31"></a><var>4.31</var>under paragraph (i).<br/>
<a id="pl.4.32"></a><var>4.32</var>(i) The commissioner must exempt a business from the requirement under paragraph <br/>
<a id="pl.4.33"></a><var>4.33</var>(c), clause (2), item (iii), if the business certifies to the commissioner that the services <br/>
<a id="pl.4.34"></a><var>4.34</var>required under a contract in connection with the primary business activity cannot be <br/>
<a id="pl.4.35"></a><var>4.35</var>performed in Minnesota if the business otherwise qualifies as a qualified small business, <br/>
<a id="pl.4.36"></a><var>4.36</var>or in greater Minnesota if the business otherwise qualifies as a qualified greater Minnesota <br/>
<a id="pl.5.1"></a><var>5.1</var>business. The business must submit the certification required under this paragraph every <br/>
<a id="pl.5.2"></a><var>5.2</var>six months from the month the exemption was granted. The exemption allowed under this <br/>
<a id="pl.5.3"></a><var>5.3</var>paragraph must be submitted in a form and manner prescribed by the commissioner.<br/>
<a id="pl.5.4"></a><var>5.4</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.5.5"></a><var>5.5</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.5.6"></a><var>5.6</var>    Sec. 2. <b>[270C.22] TAX TIME SAVINGS GRANT PROGRAM.</b><br/>
<a id="pl.5.7"></a><var>5.7</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.5.8"></a><var>5.8</var>have the meanings given.<br/>
<a id="pl.5.9"></a><var>5.9</var>(b) "Financial capability services" means any of the following:<br/>
<a id="pl.5.10"></a><var>5.10</var>(1) assistance with opening a savings or transactional account that meets the Federal <br/>
<a id="pl.5.11"></a><var>5.11</var>Deposit Insurance Corporation's model safe accounts template standards;<br/>
<a id="pl.5.12"></a><var>5.12</var>(2) assistance with depositing all or part of a tax refund into a savings or transactional <br/>
<a id="pl.5.13"></a><var>5.13</var>account;<br/>
<a id="pl.5.14"></a><var>5.14</var>(3) assistance with obtaining and reviewing a consumer report or credit score, as <br/>
<a id="pl.5.15"></a><var>5.15</var>those terms are defined in United States Code, title 15, section 1681a;<br/>
<a id="pl.5.16"></a><var>5.16</var>(4) assistance with obtaining and reviewing a banking history report;<br/>
<a id="pl.5.17"></a><var>5.17</var>(5) financial coaching, or referral to financial coaching services, as provided in <br/>
<a id="pl.5.18"></a><var>5.18</var>section 256E.35, subdivision 4a;<br/>
<a id="pl.5.19"></a><var>5.19</var>(6) National Foundation for Credit Counseling certified consumer credit and debt <br/>
<a id="pl.5.20"></a><var>5.20</var>counseling or referral to these services;<br/>
<a id="pl.5.21"></a><var>5.21</var>(7) enrollment in a matched or incentivized savings program, including the provision <br/>
<a id="pl.5.22"></a><var>5.22</var>of matching or incentive funds;<br/>
<a id="pl.5.23"></a><var>5.23</var>(8) assistance with purchasing federal retirement savings bonds, as described in <br/>
<a id="pl.5.24"></a><var>5.24</var>Code of Federal Regulations, title 31, part 347, or referral to a certified financial planner, <br/>
<a id="pl.5.25"></a><var>5.25</var>registered investment adviser, licensed insurance producer or agent, or a registered <br/>
<a id="pl.5.26"></a><var>5.26</var>securities broker-dealer representative for private sector retirement options; or<br/>
<a id="pl.5.27"></a><var>5.27</var>(9) assistance with purchasing a Series I United States Savings Bond with all or <br/>
<a id="pl.5.28"></a><var>5.28</var>part of a tax refund.<br/>
<a id="pl.5.29"></a><var>5.29</var>(c) "Transactional account" means a traditional demand deposit account or a general <br/>
<a id="pl.5.30"></a><var>5.30</var>purpose reloadable prepaid card offered by a bank or credit union.<br/>
<a id="pl.5.31"></a><var>5.31</var>(d) "TCE" means the Tax Counseling for the Elderly program established by the <br/>
<a id="pl.5.32"></a><var>5.32</var>Internal Revenue Service.<br/>
<a id="pl.5.33"></a><var>5.33</var>(e) "VITA" means the Volunteer Income Tax Assistance program established by the <br/>
<a id="pl.5.34"></a><var>5.34</var>Internal Revenue Service.<br/>
<a id="pl.6.1"></a><var>6.1</var>    Subd. 2. <b>Creation.</b> The commissioner of revenue shall establish a tax time <br/>
<a id="pl.6.2"></a><var>6.2</var>savings grant program to make grants to one or more nonprofit organizations to fund the <br/>
<a id="pl.6.3"></a><var>6.3</var>integration of financial capability services into the delivery of taxpayer assistance services <br/>
<a id="pl.6.4"></a><var>6.4</var>funded by grants under section 270C.21.<br/>
<a id="pl.6.5"></a><var>6.5</var>    Subd. 3. <b>Qualified applicant.</b> To be eligible to receive a grant under the tax time <br/>
<a id="pl.6.6"></a><var>6.6</var>savings grant program, an applicant must:<br/>
<a id="pl.6.7"></a><var>6.7</var>(1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered <br/>
<a id="pl.6.8"></a><var>6.8</var>with the Internal Revenue Service as part of either the VITA or TCE programs; and<br/>
<a id="pl.6.9"></a><var>6.9</var>(2) commit to dedicate at least one staff or volunteer position to coordinate financial <br/>
<a id="pl.6.10"></a><var>6.10</var>capability services at a VITA or TCE program site and to offer VITA or TCE program <br/>
<a id="pl.6.11"></a><var>6.11</var>participants free assistance with the initiation through completion of:<br/>
<a id="pl.6.12"></a><var>6.12</var>(i) opening a savings and a transactional account that meet the Federal Deposit <br/>
<a id="pl.6.13"></a><var>6.13</var>Insurance Corporation's model safe accounts template standards;<br/>
<a id="pl.6.14"></a><var>6.14</var>(ii) depositing all or part of a tax refund into a savings or transactional account; and<br/>
<a id="pl.6.15"></a><var>6.15</var>(iii) purchasing a Series I United States Savings Bond with all or part of a tax refund.<br/>
<a id="pl.6.16"></a><var>6.16</var>    Subd. 4. <b>Conflict of interest.</b> (a) No applicant may receive direct compensation <br/>
<a id="pl.6.17"></a><var>6.17</var>from a bank, credit union, other financial services provider, or vendor in exchange for the <br/>
<a id="pl.6.18"></a><var>6.18</var>applicant offering to program participants the products or services of that bank, credit <br/>
<a id="pl.6.19"></a><var>6.19</var>union, other financial services provider, or vendor.<br/>
<a id="pl.6.20"></a><var>6.20</var>(b) No applicant may receive funding from a bank, credit union, other financial <br/>
<a id="pl.6.21"></a><var>6.21</var>services provider, or vendor that is contingent on the applicant offering products or <br/>
<a id="pl.6.22"></a><var>6.22</var>services of that bank, credit union, other financial services provider, or vendor to program <br/>
<a id="pl.6.23"></a><var>6.23</var>participants.<br/>
<a id="pl.6.24"></a><var>6.24</var>(c) An applicant may receive funding from a bank, credit union, other financial <br/>
<a id="pl.6.25"></a><var>6.25</var>services provider, or vendor that is not in exchange for or contingent upon the applicant <br/>
<a id="pl.6.26"></a><var>6.26</var>offering products or services of that bank, credit union, other financial services provider, <br/>
<a id="pl.6.27"></a><var>6.27</var>or vendor to program participants.<br/>
<a id="pl.6.28"></a><var>6.28</var>    Subd. 5. <b>Permitted use of grant funds.</b> (a) A grant recipient may use grant funds <br/>
<a id="pl.6.29"></a><var>6.29</var>to dedicate a staff or volunteer position to coordinate financial capability services at a <br/>
<a id="pl.6.30"></a><var>6.30</var>VITA or TCE site and to offer VITA or TCE program participants free assistance with the <br/>
<a id="pl.6.31"></a><var>6.31</var>initiation through completion of:<br/>
<a id="pl.6.32"></a><var>6.32</var>(1) opening a savings and a transactional account that meet the Federal Deposit <br/>
<a id="pl.6.33"></a><var>6.33</var>Insurance Corporation's model safe accounts template standards;<br/>
<a id="pl.6.34"></a><var>6.34</var>(2) depositing all or part of a tax refund into a savings or transactional account; and<br/>
<a id="pl.6.35"></a><var>6.35</var>(3) purchasing a Series I United States Savings Bond with all or part of a tax refund.<br/>
<a id="pl.7.1"></a><var>7.1</var>(b) A grant recipient who offers all of the financial capability services enumerated <br/>
<a id="pl.7.2"></a><var>7.2</var>in paragraph (a) may also use grant funds to provide one or more additional financial <br/>
<a id="pl.7.3"></a><var>7.3</var>capability services to VITA or TCE program participants at no cost to the participant.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.7.4"></a><var>7.4</var>    Sec. 3. Minnesota Statutes 2015 Supplement, section 289A.02, subdivision 7, is <br/>
<a id="pl.7.5"></a><var>7.5</var>amended to read:<br/>
<a id="pl.7.6"></a><var>7.6</var>    Subd. 7. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.7.7"></a><var>7.7</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br/>
<a id="pl.7.8"></a><var>7.8</var>31, 2014 2015.<br/>
<a id="pl.7.9"></a><var>7.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.7.10"></a><var>7.10</var>    Sec. 4. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 19, is <br/>
<a id="pl.7.11"></a><var>7.11</var>amended to read:<br/>
<a id="pl.7.12"></a><var>7.12</var>    Subd. 19. <b>Net income.</b> The term "net income" means the federal taxable income, <br/>
<a id="pl.7.13"></a><var>7.13</var>as defined in section 63 of the Internal Revenue Code of 1986, as amended through the <br/>
<a id="pl.7.14"></a><var>7.14</var>date named in this subdivision, incorporating the federal effective dates of changes to the <br/>
<a id="pl.7.15"></a><var>7.15</var>Internal Revenue Code and any elections made by the taxpayer in accordance with the <br/>
<a id="pl.7.16"></a><var>7.16</var>Internal Revenue Code in determining federal taxable income for federal income tax <br/>
<a id="pl.7.17"></a><var>7.17</var>purposes, and with the modifications provided in subdivisions 19a to 19f.<br/>
<a id="pl.7.18"></a><var>7.18</var>    In the case of a regulated investment company or a fund thereof, as defined in section <br/>
<a id="pl.7.19"></a><var>7.19</var>851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment <br/>
<a id="pl.7.20"></a><var>7.20</var>company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, <br/>
<a id="pl.7.21"></a><var>7.21</var>except that:<br/>
<a id="pl.7.22"></a><var>7.22</var>    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal <br/>
<a id="pl.7.23"></a><var>7.23</var>Revenue Code does not apply;<br/>
<a id="pl.7.24"></a><var>7.24</var>    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal <br/>
<a id="pl.7.25"></a><var>7.25</var>Revenue Code must be applied by allowing a deduction for capital gain dividends and <br/>
<a id="pl.7.26"></a><var>7.26</var>exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal <br/>
<a id="pl.7.27"></a><var>7.27</var>Revenue Code; and<br/>
<a id="pl.7.28"></a><var>7.28</var>    (3) the deduction for dividends paid must also be applied in the amount of any <br/>
<a id="pl.7.29"></a><var>7.29</var>undistributed capital gains which the regulated investment company elects to have treated <br/>
<a id="pl.7.30"></a><var>7.30</var>as provided in section 852(b)(3)(D) of the Internal Revenue Code.<br/>
<a id="pl.7.31"></a><var>7.31</var>    The net income of a real estate investment trust as defined and limited by section <br/>
<a id="pl.7.32"></a><var>7.32</var>856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust <br/>
<a id="pl.7.33"></a><var>7.33</var>taxable income as defined in section 857(b)(2) of the Internal Revenue Code.<br/>
<a id="pl.8.1"></a><var>8.1</var>    The net income of a designated settlement fund as defined in section 468B(d) of <br/>
<a id="pl.8.2"></a><var>8.2</var>the Internal Revenue Code means the gross income as defined in section 468B(b) of the <br/>
<a id="pl.8.3"></a><var>8.3</var>Internal Revenue Code.<br/>
<a id="pl.8.4"></a><var>8.4</var>    The Internal Revenue Code of 1986, as amended through December 31, 2014 2015, <br/>
<a id="pl.8.5"></a><var>8.5</var>shall be in effect for taxable years beginning after December 31, 1996.<br/>
<a id="pl.8.6"></a><var>8.6</var>    Except as otherwise provided, references to the Internal Revenue Code in <br/>
<a id="pl.8.7"></a><var>8.7</var>subdivisions 19 to 19f mean the code in effect for purposes of determining net income for <br/>
<a id="pl.8.8"></a><var>8.8</var>the applicable year.<br/>
<a id="pl.8.9"></a><var>8.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.8.10"></a><var>8.10</var>except the changes incorporated by federal changes are effective retroactively at the same <br/>
<a id="pl.8.11"></a><var>8.11</var>time as the changes were effective for federal purposes.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.8.12"></a><var>8.12</var>    Sec. 5. Minnesota Statutes 2014, section 290.01, subdivision 19a, is amended to read:<br/>
<a id="pl.8.13"></a><var>8.13</var>    Subd. 19a. <b>Additions to federal taxable income.</b> For individuals, estates, and <br/>
<a id="pl.8.14"></a><var>8.14</var>trusts, there shall be added to federal taxable income:<br/>
<a id="pl.8.15"></a><var>8.15</var>    (1)(i) interest income on obligations of any state other than Minnesota or a political <br/>
<a id="pl.8.16"></a><var>8.16</var>or governmental subdivision, municipality, or governmental agency or instrumentality <br/>
<a id="pl.8.17"></a><var>8.17</var>of any state other than Minnesota exempt from federal income taxes under the Internal <br/>
<a id="pl.8.18"></a><var>8.18</var>Revenue Code or any other federal statute; and<br/>
<a id="pl.8.19"></a><var>8.19</var>    (ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue <br/>
<a id="pl.8.20"></a><var>8.20</var>Code, except:<br/>
<a id="pl.8.21"></a><var>8.21</var>(A) the portion of the exempt-interest dividends exempt from state taxation under <br/>
<a id="pl.8.22"></a><var>8.22</var>the laws of the United States; and<br/>
<a id="pl.8.23"></a><var>8.23</var>(B) the portion of the exempt-interest dividends derived from interest income <br/>
<a id="pl.8.24"></a><var>8.24</var>on obligations of the state of Minnesota or its political or governmental subdivisions, <br/>
<a id="pl.8.25"></a><var>8.25</var>municipalities, governmental agencies or instrumentalities, but only if the portion of the <br/>
<a id="pl.8.26"></a><var>8.26</var>exempt-interest dividends from such Minnesota sources paid to all shareholders represents <br/>
<a id="pl.8.27"></a><var>8.27</var>95 percent or more of the exempt-interest dividends, including any dividends exempt <br/>
<a id="pl.8.28"></a><var>8.28</var>under subitem (A), that are paid by the regulated investment company as defined in section <br/>
<a id="pl.8.29"></a><var>8.29</var>851(a) of the Internal Revenue Code, or the fund of the regulated investment company as <br/>
<a id="pl.8.30"></a><var>8.30</var>defined in section 851(g) of the Internal Revenue Code, making the payment; and<br/>
<a id="pl.8.31"></a><var>8.31</var>    (iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal <br/>
<a id="pl.8.32"></a><var>8.32</var>government described in section 7871(c) of the Internal Revenue Code shall be treated as <br/>
<a id="pl.8.33"></a><var>8.33</var>interest income on obligations of the state in which the tribe is located;<br/>
<a id="pl.8.34"></a><var>8.34</var>    (2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or <br/>
<a id="pl.8.35"></a><var>8.35</var>accrued within the taxable year under this chapter and the amount of taxes based on net <br/>
<a id="pl.9.1"></a><var>9.1</var>income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or <br/>
<a id="pl.9.2"></a><var>9.2</var>to any province or territory of Canada, to the extent allowed as a deduction under section <br/>
<a id="pl.9.3"></a><var>9.3</var>63(d) of the Internal Revenue Code, but the addition may not be more than the amount <br/>
<a id="pl.9.4"></a><var>9.4</var>by which the state itemized deduction exceeds the amount of the standard deduction as <br/>
<a id="pl.9.5"></a><var>9.5</var>defined in section 63(c) of the Internal Revenue Code, minus any addition that would have <br/>
<a id="pl.9.6"></a><var>9.6</var>been required under clause (17) if the taxpayer had claimed the standard deduction. For <br/>
<a id="pl.9.7"></a><var>9.7</var>the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are <br/>
<a id="pl.9.8"></a><var>9.8</var>the last itemized deductions disallowed under clause (15);<br/>
<a id="pl.9.9"></a><var>9.9</var>    (3) the capital gain amount of a lump-sum distribution to which the special tax under <br/>
<a id="pl.9.10"></a><var>9.10</var>section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;<br/>
<a id="pl.9.11"></a><var>9.11</var>    (4) the amount of income taxes paid or accrued within the taxable year under this <br/>
<a id="pl.9.12"></a><var>9.12</var>chapter and taxes based on net income paid to any other state or any province or territory <br/>
<a id="pl.9.13"></a><var>9.13</var>of Canada, to the extent allowed as a deduction in determining federal adjusted gross <br/>
<a id="pl.9.14"></a><var>9.14</var>income. For the purpose of this paragraph, income taxes do not include the taxes imposed <br/>
<a id="pl.9.15"></a><var>9.15</var>by sections 
         <statute_ref>290.0922, subdivision 1</statute_ref>, paragraph (b), 
         <statute_ref>290.9727</statute_ref>, 
         <statute_ref>290.9728</statute_ref>, and 
         <statute_ref>290.9729</statute_ref>;<br/>
<a id="pl.9.16"></a><var>9.16</var>    (5) the amount of expense, interest, or taxes disallowed pursuant to section 
         <statute_ref>290.10 <br/>
</statute_ref><a id="pl.9.17"></a><var>9.17</var>other than expenses or interest used in computing net interest income for the subtraction <br/>
<a id="pl.9.18"></a><var>9.18</var>allowed under subdivision 19b, clause (1);<br/>
<a id="pl.9.19"></a><var>9.19</var>    (6) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.9.20"></a><var>9.20</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.9.21"></a><var>9.21</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.9.22"></a><var>9.22</var>    (7) 80 percent of the depreciation deduction allowed under section 168(k) of the <br/>
<a id="pl.9.23"></a><var>9.23</var>Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that <br/>
<a id="pl.9.24"></a><var>9.24</var>in the taxable year generates a deduction for depreciation under section 168(k) and the <br/>
<a id="pl.9.25"></a><var>9.25</var>activity generates a loss for the taxable year that the taxpayer is not allowed to claim for <br/>
<a id="pl.9.26"></a><var>9.26</var>the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is <br/>
<a id="pl.9.27"></a><var>9.27</var>limited to excess of the depreciation claimed by the activity under section 168(k) over the <br/>
<a id="pl.9.28"></a><var>9.28</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br/>
<a id="pl.9.29"></a><var>9.29</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br/>
<a id="pl.9.30"></a><var>9.30</var>under section 168(k) is allowed;<br/>
<a id="pl.9.31"></a><var>9.31</var>    (8) 80 percent of the amount by which the deduction allowed by section 179 of the <br/>
<a id="pl.9.32"></a><var>9.32</var>Internal Revenue Code exceeds the deduction allowable by under the dollar limits of <br/>
<a id="pl.9.33"></a><var>9.33</var>section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;<br/>
<a id="pl.9.34"></a><var>9.34</var>    (9) to the extent deducted in computing federal taxable income, the amount of the <br/>
<a id="pl.9.35"></a><var>9.35</var>deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.9.36"></a><var>9.36</var>    (10) the amount of expenses disallowed under section 290.10, subdivision 2;<br/>
<a id="pl.10.1"></a><var>10.1</var>    (11) for taxable years beginning before January 1, 2010, the amount deducted for <br/>
<a id="pl.10.2"></a><var>10.2</var>qualified tuition and related expenses under section 222 of the Internal Revenue Code, to <br/>
<a id="pl.10.3"></a><var>10.3</var>the extent deducted from gross income;<br/>
<a id="pl.10.4"></a><var>10.4</var>    (12) for taxable years beginning before January 1, 2010, the amount deducted for <br/>
<a id="pl.10.5"></a><var>10.5</var>certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) <br/>
<a id="pl.10.6"></a><var>10.6</var>of the Internal Revenue Code, to the extent deducted from gross income;<br/>
<a id="pl.10.7"></a><var>10.7</var>(13) discharge of indebtedness income resulting from reacquisition of business <br/>
<a id="pl.10.8"></a><var>10.8</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code;<br/>
<a id="pl.10.9"></a><var>10.9</var>(14) changes to federal taxable income attributable to a net operating loss that the <br/>
<a id="pl.10.10"></a><var>10.10</var>taxpayer elected to carry back for more than two years for federal purposes but for which <br/>
<a id="pl.10.11"></a><var>10.11</var>the losses can be carried back for only two years under section 
         <statute_ref>290.095, subdivision <br/>
<a id="pl.10.12"></a><var>10.12</var>11
         </statute_ref>, paragraph (c);<br/>
<a id="pl.10.13"></a><var>10.13</var>(15) the amount of disallowed itemized deductions, but the amount of disallowed <br/>
<a id="pl.10.14"></a><var>10.14</var>itemized deductions plus the addition required under clause (2) may not be more than the <br/>
<a id="pl.10.15"></a><var>10.15</var>amount by which the itemized deductions as allowed under section 63(d) of the Internal <br/>
<a id="pl.10.16"></a><var>10.16</var>Revenue Code exceeds the amount of the standard deduction as defined in section 63(c) of <br/>
<a id="pl.10.17"></a><var>10.17</var>the Internal Revenue Code, and reduced by any addition that would have been required <br/>
<a id="pl.10.18"></a><var>10.18</var>under clause (17) if the taxpayer had claimed the standard deduction:<br/>
<a id="pl.10.19"></a><var>10.19</var>(i) the amount of disallowed itemized deductions is equal to the lesser of:<br/>
<a id="pl.10.20"></a><var>10.20</var>(A) three percent of the excess of the taxpayer's federal adjusted gross income <br/>
<a id="pl.10.21"></a><var>10.21</var>over the applicable amount; or<br/>
<a id="pl.10.22"></a><var>10.22</var>(B) 80 percent of the amount of the itemized deductions otherwise allowable to the <br/>
<a id="pl.10.23"></a><var>10.23</var>taxpayer under the Internal Revenue Code for the taxable year;<br/>
<a id="pl.10.24"></a><var>10.24</var>(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a <br/>
<a id="pl.10.25"></a><var>10.25</var>married individual filing a separate return. Each dollar amount shall be increased by <br/>
<a id="pl.10.26"></a><var>10.26</var>an amount equal to:<br/>
<a id="pl.10.27"></a><var>10.27</var>(A) such dollar amount, multiplied by<br/>
<a id="pl.10.28"></a><var>10.28</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br/>
<a id="pl.10.29"></a><var>10.29</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br/>
<a id="pl.10.30"></a><var>10.30</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;<br/>
<a id="pl.10.31"></a><var>10.31</var>(iii) the term "itemized deductions" does not include:<br/>
<a id="pl.10.32"></a><var>10.32</var>(A) the deduction for medical expenses under section 213 of the Internal Revenue <br/>
<a id="pl.10.33"></a><var>10.33</var>Code;<br/>
<a id="pl.10.34"></a><var>10.34</var>(B) any deduction for investment interest as defined in section 163(d) of the Internal <br/>
<a id="pl.10.35"></a><var>10.35</var>Revenue Code; and<br/>
<a id="pl.11.1"></a><var>11.1</var>(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or <br/>
<a id="pl.11.2"></a><var>11.2</var>theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue <br/>
<a id="pl.11.3"></a><var>11.3</var>Code or for losses described in section 165(d) of the Internal Revenue Code;<br/>
<a id="pl.11.4"></a><var>11.4</var>(16) the amount of disallowed personal exemptions for taxpayers with federal <br/>
<a id="pl.11.5"></a><var>11.5</var>adjusted gross income over the threshold amount:<br/>
<a id="pl.11.6"></a><var>11.6</var>(i) the disallowed personal exemption amount is equal to the number of personal <br/>
<a id="pl.11.7"></a><var>11.7</var>exemptions allowed under section 151(b) and (c) of the Internal Revenue Code multiplied <br/>
<a id="pl.11.8"></a><var>11.8</var>by the dollar amount for personal exemptions under section 151(d)(1) and (2) of the <br/>
<a id="pl.11.9"></a><var>11.9</var>Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal <br/>
<a id="pl.11.10"></a><var>11.10</var>Revenue Code, and by the applicable percentage;<br/>
<a id="pl.11.11"></a><var>11.11</var>(ii) "applicable percentage" means two percentage points for each $2,500 (or <br/>
<a id="pl.11.12"></a><var>11.12</var>fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable <br/>
<a id="pl.11.13"></a><var>11.13</var>year exceeds the threshold amount. In the case of a married individual filing a separate <br/>
<a id="pl.11.14"></a><var>11.14</var>return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In <br/>
<a id="pl.11.15"></a><var>11.15</var>no event shall the applicable percentage exceed 100 percent;<br/>
<a id="pl.11.16"></a><var>11.16</var>(iii) the term "threshold amount" means:<br/>
<a id="pl.11.17"></a><var>11.17</var>(A) $150,000 in the case of a joint return or a surviving spouse;<br/>
<a id="pl.11.18"></a><var>11.18</var>(B) $125,000 in the case of a head of a household;<br/>
<a id="pl.11.19"></a><var>11.19</var>(C) $100,000 in the case of an individual who is not married and who is not a <br/>
<a id="pl.11.20"></a><var>11.20</var>surviving spouse or head of a household; and<br/>
<a id="pl.11.21"></a><var>11.21</var>(D) $75,000 in the case of a married individual filing a separate return; and<br/>
<a id="pl.11.22"></a><var>11.22</var>(iv) the thresholds shall be increased by an amount equal to:<br/>
<a id="pl.11.23"></a><var>11.23</var>(A) such dollar amount, multiplied by<br/>
<a id="pl.11.24"></a><var>11.24</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br/>
<a id="pl.11.25"></a><var>11.25</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br/>
<a id="pl.11.26"></a><var>11.26</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and<br/>
<a id="pl.11.27"></a><var>11.27</var>(17) to the extent deducted in the computation of federal taxable income, for taxable <br/>
<a id="pl.11.28"></a><var>11.28</var>years beginning after December 31, 2010, and before January 1, 2014, the difference <br/>
<a id="pl.11.29"></a><var>11.29</var>between the standard deduction allowed under section 63(c) of the Internal Revenue Code <br/>
<a id="pl.11.30"></a><var>11.30</var>and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue <br/>
<a id="pl.11.31"></a><var>11.31</var>Code as amended through December 1, 2010; and<br/>
<a id="pl.11.32"></a><var>11.32</var>(18) to the extent deducted in the computation of federal taxable income, the amount <br/>
<a id="pl.11.33"></a><var>11.33</var>of charitable contributions under section 170 of the Internal Revenue Code used to claim <br/>
<a id="pl.11.34"></a><var>11.34</var>the credit under section 290.06, subdivision 37.<br/>
<a id="pl.11.35"></a><var>11.35</var><b>EFFECTIVE DATE.</b>The change to clause (8) is effective the day following final <br/>
<a id="pl.11.36"></a><var>11.36</var>enactment, except the changes incorporated by federal changes are effective retroactively <br/>
<a id="pl.12.1"></a><var>12.1</var>at the same time as the changes were effective for federal purposes. Clause (18) is <br/>
<a id="pl.12.2"></a><var>12.2</var>effective for taxable years beginning after December 31, 2015.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.12.3"></a><var>12.3</var>    Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:<br/>
<a id="pl.12.4"></a><var>12.4</var>    Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br/>
<a id="pl.12.5"></a><var>12.5</var>and trusts, there shall be subtracted from federal taxable income:<br/>
<a id="pl.12.6"></a><var>12.6</var>    (1) net interest income on obligations of any authority, commission, or <br/>
<a id="pl.12.7"></a><var>12.7</var>instrumentality of the United States to the extent includable in taxable income for federal <br/>
<a id="pl.12.8"></a><var>12.8</var>income tax purposes but exempt from state income tax under the laws of the United States;<br/>
<a id="pl.12.9"></a><var>12.9</var>    (2) if included in federal taxable income, the amount of any overpayment of income <br/>
<a id="pl.12.10"></a><var>12.10</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br/>
<a id="pl.12.11"></a><var>12.11</var>is received as a refund or as a credit to another taxable year's income tax liability;<br/>
<a id="pl.12.12"></a><var>12.12</var>    (3) the amount paid to others, less the amount used to claim the credit allowed under <br/>
<a id="pl.12.13"></a><var>12.13</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br/>
<a id="pl.12.14"></a><var>12.14</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br/>
<a id="pl.12.15"></a><var>12.15</var>transportation of each qualifying child in attending an elementary or secondary school <br/>
<a id="pl.12.16"></a><var>12.16</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br/>
<a id="pl.12.17"></a><var>12.17</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br/>
<a id="pl.12.18"></a><var>12.18</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br/>
<a id="pl.12.19"></a><var>12.19</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br/>
<a id="pl.12.20"></a><var>12.20</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br/>
<a id="pl.12.21"></a><var>12.21</var>"textbooks" includes books and other instructional materials and equipment purchased <br/>
<a id="pl.12.22"></a><var>12.22</var>or leased for use in elementary and secondary schools in teaching only those subjects <br/>
<a id="pl.12.23"></a><var>12.23</var>legally and commonly taught in public elementary and secondary schools in this state. <br/>
<a id="pl.12.24"></a><var>12.24</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br/>
<a id="pl.12.25"></a><var>12.25</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br/>
<a id="pl.12.26"></a><var>12.26</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br/>
<a id="pl.12.27"></a><var>12.27</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br/>
<a id="pl.12.28"></a><var>12.28</var>or materials for, or transportation to, extracurricular activities including sporting events, <br/>
<a id="pl.12.29"></a><var>12.29</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br/>
<a id="pl.12.30"></a><var>12.30</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br/>
<a id="pl.12.31"></a><var>12.31</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br/>
<a id="pl.12.32"></a><var>12.32</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br/>
<a id="pl.12.33"></a><var>12.33</var>given in section 32(c)(3) of the Internal Revenue Code;<br/>
<a id="pl.12.34"></a><var>12.34</var>    (4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br/>
<a id="pl.13.1"></a><var>13.1</var>    (5) to the extent included in federal adjusted gross income, income realized on <br/>
<a id="pl.13.2"></a><var>13.2</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br/>
<a id="pl.13.3"></a><var>13.3</var>    (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br/>
<a id="pl.13.4"></a><var>13.4</var>of the Internal Revenue Code in determining federal taxable income by an individual <br/>
<a id="pl.13.5"></a><var>13.5</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br/>
<a id="pl.13.6"></a><var>13.6</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br/>
<a id="pl.13.7"></a><var>13.7</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, <br/>
<a id="pl.13.8"></a><var>13.8</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br/>
<a id="pl.13.9"></a><var>13.9</var>    (7) for individuals who are allowed a federal foreign tax credit for taxes that do not <br/>
<a id="pl.13.10"></a><var>13.10</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br/>
<a id="pl.13.11"></a><var>13.11</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br/>
<a id="pl.13.12"></a><var>13.12</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br/>
<a id="pl.13.13"></a><var>13.13</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br/>
<a id="pl.13.14"></a><var>13.14</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br/>
<a id="pl.13.15"></a><var>13.15</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br/>
<a id="pl.13.16"></a><var>13.16</var>the extent they exceed the federal foreign tax credit;<br/>
<a id="pl.13.17"></a><var>13.17</var>    (8) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.13.18"></a><var>13.18</var>addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a <br/>
<a id="pl.13.19"></a><var>13.19</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br/>
<a id="pl.13.20"></a><var>13.20</var>delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount <br/>
<a id="pl.13.21"></a><var>13.21</var>of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, <br/>
<a id="pl.13.22"></a><var>13.22</var>clause (12), in the case of a shareholder of an S corporation, minus the positive value of <br/>
<a id="pl.13.23"></a><var>13.23</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br/>
<a id="pl.13.24"></a><var>13.24</var>tax year of the addition. The resulting delayed depreciation cannot be less than zero;<br/>
<a id="pl.13.25"></a><var>13.25</var>    (9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br/>
<a id="pl.13.26"></a><var>13.26</var>    (10) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.13.27"></a><var>13.27</var>paid to members of the Minnesota National Guard or other reserve components of the <br/>
<a id="pl.13.28"></a><var>13.28</var>United States military for active service, including compensation for services performed <br/>
<a id="pl.13.29"></a><var>13.29</var>under the Active Guard Reserve (AGR) program. For purposes of this clause, "active <br/>
<a id="pl.13.30"></a><var>13.30</var>service" means (i) state active service as defined in section 
         <statute_ref>190.05, subdivision 5a</statute_ref>, clause <br/>
<a id="pl.13.31"></a><var>13.31</var>(1); or (ii) federally funded state active service as defined in section 
         <statute_ref>190.05, subdivision <br/>
<a id="pl.13.32"></a><var>13.32</var>5b
         </statute_ref>, and "active service" includes service performed in accordance with section 
         <statute_ref>190.08, <br/>
<a id="pl.13.33"></a><var>13.33</var>subdivision 3
         </statute_ref>;<br/>
<a id="pl.13.34"></a><var>13.34</var>    (11) to the extent included in federal taxable income, the amount of compensation <br/>
<a id="pl.13.35"></a><var>13.35</var>paid to Minnesota residents who are members of the armed forces of the United States <br/>
<a id="pl.14.1"></a><var>14.1</var>or United Nations for active duty performed under United States Code, title 10; or the <br/>
<a id="pl.14.2"></a><var>14.2</var>authority of the United Nations;<br/>
<a id="pl.14.3"></a><var>14.3</var>    (12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br/>
<a id="pl.14.4"></a><var>14.4</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br/>
<a id="pl.14.5"></a><var>14.5</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br/>
<a id="pl.14.6"></a><var>14.6</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br/>
<a id="pl.14.7"></a><var>14.7</var>"human organ transplantation" means the medical procedure by which transfer of a human <br/>
<a id="pl.14.8"></a><var>14.8</var>organ is made from the body of one person to the body of another person; "qualified <br/>
<a id="pl.14.9"></a><var>14.9</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br/>
<a id="pl.14.10"></a><var>14.10</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br/>
<a id="pl.14.11"></a><var>14.11</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br/>
<a id="pl.14.12"></a><var>14.12</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br/>
<a id="pl.14.13"></a><var>14.13</var>individual may claim the subtraction in this clause for each instance of organ donation for <br/>
<a id="pl.14.14"></a><var>14.14</var>transplantation during the taxable year in which the qualified expenses occur;<br/>
<a id="pl.14.15"></a><var>14.15</var>    (13) in each of the five tax years immediately following the tax year in which an <br/>
<a id="pl.14.16"></a><var>14.16</var>addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a <br/>
<a id="pl.14.17"></a><var>14.17</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br/>
<a id="pl.14.18"></a><var>14.18</var>addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the <br/>
<a id="pl.14.19"></a><var>14.19</var>case of a shareholder of a corporation that is an S corporation, minus the positive value of <br/>
<a id="pl.14.20"></a><var>14.20</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br/>
<a id="pl.14.21"></a><var>14.21</var>tax year of the addition. If the net operating loss exceeds the addition for the tax year, a <br/>
<a id="pl.14.22"></a><var>14.22</var>subtraction is not allowed under this clause;<br/>
<a id="pl.14.23"></a><var>14.23</var>    (14) to the extent included in the federal taxable income of a nonresident of <br/>
<a id="pl.14.24"></a><var>14.24</var>Minnesota, compensation paid to a service member as defined in United States Code, title <br/>
<a id="pl.14.25"></a><var>14.25</var>10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief <br/>
<a id="pl.14.26"></a><var>14.26</var>Act, Public Law 108-189, section 101(2);<br/>
<a id="pl.14.27"></a><var>14.27</var>    (15) to the extent included in federal taxable income, the amount of national service <br/>
<a id="pl.14.28"></a><var>14.28</var>educational awards received from the National Service Trust under United States Code, <br/>
<a id="pl.14.29"></a><var>14.29</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br/>
<a id="pl.14.30"></a><var>14.30</var>program;<br/>
<a id="pl.14.31"></a><var>14.31</var>(16) to the extent included in federal taxable income, discharge of indebtedness <br/>
<a id="pl.14.32"></a><var>14.32</var>income resulting from reacquisition of business indebtedness included in federal taxable <br/>
<a id="pl.14.33"></a><var>14.33</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br/>
<a id="pl.14.34"></a><var>14.34</var>to the extent that the income was included in net income in a prior year as a result of the <br/>
<a id="pl.14.35"></a><var>14.35</var>addition under subdivision 19a, clause (13);<br/>
<a id="pl.15.1"></a><var>15.1</var>(17) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br/>
<a id="pl.15.2"></a><var>15.2</var>11
         </statute_ref>, paragraph (c);<br/>
<a id="pl.15.3"></a><var>15.3</var>(18) the amount of expenses not allowed for federal income tax purposes due <br/>
<a id="pl.15.4"></a><var>15.4</var>to claiming the railroad track maintenance credit under section 45G(a) of the Internal <br/>
<a id="pl.15.5"></a><var>15.5</var>Revenue Code;<br/>
<a id="pl.15.6"></a><var>15.6</var>(19) the amount of the limitation on itemized deductions under section 68(b) of <br/>
<a id="pl.15.7"></a><var>15.7</var>the Internal Revenue Code; and<br/>
<a id="pl.15.8"></a><var>15.8</var>(20) the amount of the phaseout of personal exemptions under section 151(d) of <br/>
<a id="pl.15.9"></a><var>15.9</var>the Internal Revenue Code; and.<br/>
<a id="pl.15.10"></a><var>15.10</var>(21) to the extent included in federal taxable income, the amount of qualified <br/>
<a id="pl.15.11"></a><var>15.11</var>transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal <br/>
<a id="pl.15.12"></a><var>15.12</var>Revenue Code. The subtraction is limited to the lesser of the amount of qualified <br/>
<a id="pl.15.13"></a><var>15.13</var>transportation fringe benefits received in excess of the limitations under section <br/>
<a id="pl.15.14"></a><var>15.14</var>132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the <br/>
<a id="pl.15.15"></a><var>15.15</var>maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal <br/>
<a id="pl.15.16"></a><var>15.16</var>Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) <br/>
<a id="pl.15.17"></a><var>15.17</var>of the Internal Revenue Code.<br/>
<a id="pl.15.18"></a><var>15.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.15.19"></a><var>15.19</var>except the changes incorporated by federal changes are effective retroactively at the same <br/>
<a id="pl.15.20"></a><var>15.20</var>time as the changes were effective for federal purposes.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.15.21"></a><var>15.21</var>    Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:<br/>
<a id="pl.15.22"></a><var>15.22</var>    Subd. 19c. <b>Corporations; additions to federal taxable income.</b> For corporations, <br/>
<a id="pl.15.23"></a><var>15.23</var>there shall be added to federal taxable income:<br/>
<a id="pl.15.24"></a><var>15.24</var>    (1) the amount of any deduction taken for federal income tax purposes for income, <br/>
<a id="pl.15.25"></a><var>15.25</var>excise, or franchise taxes based on net income or related minimum taxes, including but not <br/>
<a id="pl.15.26"></a><var>15.26</var>limited to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>, paid by the corporation to Minnesota, <br/>
<a id="pl.15.27"></a><var>15.27</var>another state, a political subdivision of another state, the District of Columbia, or any <br/>
<a id="pl.15.28"></a><var>15.28</var>foreign country or possession of the United States;<br/>
<a id="pl.15.29"></a><var>15.29</var>    (2) interest not subject to federal tax upon obligations of: the United States, its <br/>
<a id="pl.15.30"></a><var>15.30</var>possessions, its agencies, or its instrumentalities; the state of Minnesota or any other <br/>
<a id="pl.15.31"></a><var>15.31</var>state, any of its political or governmental subdivisions, any of its municipalities, or any <br/>
<a id="pl.15.32"></a><var>15.32</var>of its governmental agencies or instrumentalities; the District of Columbia; or Indian <br/>
<a id="pl.15.33"></a><var>15.33</var>tribal governments;<br/>
<a id="pl.15.34"></a><var>15.34</var>    (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal <br/>
<a id="pl.15.35"></a><var>15.35</var>Revenue Code;<br/>
<a id="pl.16.1"></a><var>16.1</var>    (4) the amount of any net operating loss deduction taken for federal income tax <br/>
<a id="pl.16.2"></a><var>16.2</var>purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss <br/>
<a id="pl.16.3"></a><var>16.3</var>deduction under section 810 of the Internal Revenue Code;<br/>
<a id="pl.16.4"></a><var>16.4</var>    (5) the amount of any special deductions taken for federal income tax purposes <br/>
<a id="pl.16.5"></a><var>16.5</var>under sections 241 to 247 and 965 of the Internal Revenue Code;<br/>
<a id="pl.16.6"></a><var>16.6</var>    (6) losses from the business of mining, as defined in section 
         <statute_ref>290.05, subdivision 1</statute_ref>, <br/>
<a id="pl.16.7"></a><var>16.7</var>clause (a), that are not subject to Minnesota income tax;<br/>
<a id="pl.16.8"></a><var>16.8</var>    (7) the amount of any capital losses deducted for federal income tax purposes under <br/>
<a id="pl.16.9"></a><var>16.9</var>sections 1211 and 1212 of the Internal Revenue Code;<br/>
<a id="pl.16.10"></a><var>16.10</var>    (8) the amount of percentage depletion deducted under sections 611 through 614 and <br/>
<a id="pl.16.11"></a><var>16.11</var>291 of the Internal Revenue Code;<br/>
<a id="pl.16.12"></a><var>16.12</var>    (9) for certified pollution control facilities placed in service in a taxable year <br/>
<a id="pl.16.13"></a><var>16.13</var>beginning before December 31, 1986, and for which amortization deductions were elected <br/>
<a id="pl.16.14"></a><var>16.14</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br/>
<a id="pl.16.15"></a><var>16.15</var>31, 1985, the amount of the amortization deduction allowed in computing federal taxable <br/>
<a id="pl.16.16"></a><var>16.16</var>income for those facilities;<br/>
<a id="pl.16.17"></a><var>16.17</var>    (10) the amount of a partner's pro rata share of net income which does not flow <br/>
<a id="pl.16.18"></a><var>16.18</var>through to the partner because the partnership elected to pay the tax on the income under <br/>
<a id="pl.16.19"></a><var>16.19</var>section 6242(a)(2) of the Internal Revenue Code;<br/>
<a id="pl.16.20"></a><var>16.20</var>    (11) any increase in subpart F income, as defined in section 952(a) of the Internal <br/>
<a id="pl.16.21"></a><var>16.21</var>Revenue Code, for the taxable year when subpart F income is calculated without regard to <br/>
<a id="pl.16.22"></a><var>16.22</var>the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br/>
<a id="pl.16.23"></a><var>16.23</var>    (12) 80 percent of the depreciation deduction allowed under section 168(k)(1)(A) <br/>
<a id="pl.16.24"></a><var>16.24</var>and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if the taxpayer <br/>
<a id="pl.16.25"></a><var>16.25</var>has an activity that in the taxable year generates a deduction for depreciation under <br/>
<a id="pl.16.26"></a><var>16.26</var>section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable year <br/>
<a id="pl.16.27"></a><var>16.27</var>that the taxpayer is not allowed to claim for the taxable year, "the depreciation allowed <br/>
<a id="pl.16.28"></a><var>16.28</var>under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of the <br/>
<a id="pl.16.29"></a><var>16.29</var>depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) over the <br/>
<a id="pl.16.30"></a><var>16.30</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br/>
<a id="pl.16.31"></a><var>16.31</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br/>
<a id="pl.16.32"></a><var>16.32</var>under section 168(k)(1)(A) and (k)(4)(A) is allowed;<br/>
<a id="pl.16.33"></a><var>16.33</var>    (13) 80 percent of the amount by which the deduction allowed by section 179 of <br/>
<a id="pl.16.34"></a><var>16.34</var>the Internal Revenue Code exceeds the deduction allowable by under the dollar limits of <br/>
<a id="pl.16.35"></a><var>16.35</var>section 179 of the Internal Revenue Code of 1986, as amended through December 31, 2003;<br/>
<a id="pl.17.1"></a><var>17.1</var>    (14) to the extent deducted in computing federal taxable income, the amount of the <br/>
<a id="pl.17.2"></a><var>17.2</var>deduction allowable under section 199 of the Internal Revenue Code;<br/>
<a id="pl.17.3"></a><var>17.3</var>    (15) the amount of expenses disallowed under section 
         <statute_ref>290.10, subdivision 2</statute_ref>; and<br/>
<a id="pl.17.4"></a><var>17.4</var>(16) discharge of indebtedness income resulting from reacquisition of business <br/>
<a id="pl.17.5"></a><var>17.5</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code; and<br/>
<a id="pl.17.6"></a><var>17.6</var>(17) to the extent deducted in the computation of federal taxable income, the amount <br/>
<a id="pl.17.7"></a><var>17.7</var>of charitable contributions under section 170 of the Internal Revenue Code used to claim <br/>
<a id="pl.17.8"></a><var>17.8</var>the credit under section 290.06, subdivision 37.<br/>
<a id="pl.17.9"></a><var>17.9</var><b>EFFECTIVE DATE.</b>The change to clause (13) is effective the day following final <br/>
<a id="pl.17.10"></a><var>17.10</var>enactment, except the changes incorporated by federal changes are effective retroactively <br/>
<a id="pl.17.11"></a><var>17.11</var>at the same time as the changes were effective for federal purposes. Clause (17) is <br/>
<a id="pl.17.12"></a><var>17.12</var>effective for taxable years beginning after December 31, 2015.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.17.13"></a><var>17.13</var>    Sec. 8. Minnesota Statutes 2015 Supplement, section 290.01, subdivision 31, is <br/>
<a id="pl.17.14"></a><var>17.14</var>amended to read:<br/>
<a id="pl.17.15"></a><var>17.15</var>    Subd. 31. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br/>
<a id="pl.17.16"></a><var>17.16</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br/>
<a id="pl.17.17"></a><var>17.17</var>31, 2014 2015. Internal Revenue Code also includes any uncodified provision in federal <br/>
<a id="pl.17.18"></a><var>17.18</var>law that relates to provisions of the Internal Revenue Code that are incorporated into <br/>
<a id="pl.17.19"></a><var>17.19</var>Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, <br/>
<a id="pl.17.20"></a><var>17.20</var>subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as <br/>
<a id="pl.17.21"></a><var>17.21</var>amended through March 18, 2010.<br/>
<a id="pl.17.22"></a><var>17.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br/>
<a id="pl.17.23"></a><var>17.23</var>except the changes incorporated by federal changes are effective retroactively at the same <br/>
<a id="pl.17.24"></a><var>17.24</var>time as the changes were effective for federal purposes.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.17.25"></a><var>17.25</var>    Sec. 9. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision <br/>
<a id="pl.17.26"></a><var>17.26</var>to read:<br/>
<a id="pl.17.27"></a><var>17.27</var>    Subd. 37. <b>Prepared food donation credit.</b> (a) A qualifying taxpayer is allowed a <br/>
<a id="pl.17.28"></a><var>17.28</var>credit against the tax imposed by this chapter equal to 20 percent of the taxpayer's eligible <br/>
<a id="pl.17.29"></a><var>17.29</var>charitable food donation. The credit may not exceed the taxpayer's liability for tax and <br/>
<a id="pl.17.30"></a><var>17.30</var>may not be carried forward to any other taxable year.<br/>
<a id="pl.17.31"></a><var>17.31</var>(b) For purposes of this subdivision, the following terms have the meanings given:<br/>
<a id="pl.17.32"></a><var>17.32</var>(1) "eligible charitable food donation" means a contribution of prepared food <br/>
<a id="pl.17.33"></a><var>17.33</var>allowable as a charitable deduction for the taxable year under section 170(a) of the Internal <br/>
<a id="pl.18.1"></a><var>18.1</var>Revenue Code, subject to the limitations of section 170(b) of the Internal Revenue Code, <br/>
<a id="pl.18.2"></a><var>18.2</var>and determined without regard to whether or not the taxpayer itemizes deductions;<br/>
<a id="pl.18.3"></a><var>18.3</var>(2) "prepared food" means food that meets all quality and labeling standards <br/>
<a id="pl.18.4"></a><var>18.4</var>imposed by federal, state, and local laws and regulations even though the food may not <br/>
<a id="pl.18.5"></a><var>18.5</var>be readily marketable due to appearance, age, freshness, grade, size, surplus, or other <br/>
<a id="pl.18.6"></a><var>18.6</var>conditions, and includes:<br/>
<a id="pl.18.7"></a><var>18.7</var>(i) food which is cooked or heated by the qualifying taxpayer;<br/>
<a id="pl.18.8"></a><var>18.8</var>(ii) two or more ingredients mixed together to be eaten as a single item; and<br/>
<a id="pl.18.9"></a><var>18.9</var>(iii) any ingredients supplied for ingestion or chewing by humans that are consumed <br/>
<a id="pl.18.10"></a><var>18.10</var>for their taste or nutritional value;<br/>
<a id="pl.18.11"></a><var>18.11</var>(3) "qualifying taxpayer" means any restaurant making a charitable food donation <br/>
<a id="pl.18.12"></a><var>18.12</var>in Minnesota; and<br/>
<a id="pl.18.13"></a><var>18.13</var>(4) "restaurant" means any facility:<br/>
<a id="pl.18.14"></a><var>18.14</var>(i) which is operated for profit;<br/>
<a id="pl.18.15"></a><var>18.15</var>(ii) where the usual and customary business is the serving of meals to consumers;<br/>
<a id="pl.18.16"></a><var>18.16</var>(iii) which has a kitchen within the facility; and<br/>
<a id="pl.18.17"></a><var>18.17</var>(iv) which receives at least 70 percent of its gross receipts from the sale of prepared <br/>
<a id="pl.18.18"></a><var>18.18</var>food.<br/>
<a id="pl.18.19"></a><var>18.19</var>(c) For a nonresident or part-year resident, the credit must be allocated based on the <br/>
<a id="pl.18.20"></a><var>18.20</var>percentage calculated under subdivision 2c, paragraph (e).<br/>
<a id="pl.18.21"></a><var>18.21</var>(d) Credits allowed to a partnership, a limited liability company taxed as a <br/>
<a id="pl.18.22"></a><var>18.22</var>partnership, an S corporation, or multiple owners of property are passed through to the <br/>
<a id="pl.18.23"></a><var>18.23</var>partners, members, shareholders, or owners, respectively, pro rata to each partner, member, <br/>
<a id="pl.18.24"></a><var>18.24</var>shareholder, or owner based on their share of the entity's income for the taxable year.<br/>
<a id="pl.18.25"></a><var>18.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.18.26"></a><var>18.26</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.18.27"></a><var>18.27</var>    Sec. 10. Minnesota Statutes 2015 Supplement, section 290.0671, subdivision 1, <br/>
<a id="pl.18.28"></a><var>18.28</var>is amended to read:<br/>
<a id="pl.18.29"></a><var>18.29</var>    Subdivision 1. <b>Credit allowed.</b> (a) An individual who is a resident of Minnesota is <br/>
<a id="pl.18.30"></a><var>18.30</var>allowed a credit against the tax imposed by this chapter equal to a percentage of earned <br/>
<a id="pl.18.31"></a><var>18.31</var>income. To receive a credit, a taxpayer must be eligible for a credit under section 32 <br/>
<a id="pl.18.32"></a><var>18.32</var>of the Internal Revenue Code without regard to the earned income or adjusted gross <br/>
<a id="pl.18.33"></a><var>18.33</var>income limitations.<br/>
<a id="pl.18.34"></a><var>18.34</var>(b) For individuals with no qualifying children, the credit equals 2.10 3.0 percent <br/>
<a id="pl.18.35"></a><var>18.35</var>of the first $6,180 $6,500 of earned income. The credit is reduced by 2.01 3.0 percent <br/>
<a id="pl.19.1"></a><var>19.1</var>of earned income or adjusted gross income, whichever is greater, in excess of $8,130 <br/>
<a id="pl.19.2"></a><var>19.2</var>$12,000, but in no case is the credit less than zero. For individuals qualifying under <br/>
<a id="pl.19.3"></a><var>19.3</var>this paragraph, the taxpayer must have been at least 21 years of age, but under 65 years <br/>
<a id="pl.19.4"></a><var>19.4</var>of age, at the end of the tax year.<br/>
<a id="pl.19.5"></a><var>19.5</var>(c) For individuals with one qualifying child, the credit equals 9.35 12.71 percent <br/>
<a id="pl.19.6"></a><var>19.6</var>of the first $11,120 $8,350 of earned income. The credit is reduced by 6.02 5.2 percent <br/>
<a id="pl.19.7"></a><var>19.7</var>of earned income or adjusted gross income, whichever is greater, in excess of $21,190 <br/>
<a id="pl.19.8"></a><var>19.8</var>$21,620, but in no case is the credit less than zero.<br/>
<a id="pl.19.9"></a><var>19.9</var>(d) For individuals with two or more qualifying children, the credit equals 11 14.94 <br/>
<a id="pl.19.10"></a><var>19.10</var>percent of the first $18,240 $13,700 of earned income. The credit is reduced by 10.82 <br/>
<a id="pl.19.11"></a><var>19.11</var>9.2 percent of earned income or adjusted gross income, whichever is greater, in excess of <br/>
<a id="pl.19.12"></a><var>19.12</var>$25,130 $25,640, but in no case is the credit less than zero.<br/>
<a id="pl.19.13"></a><var>19.13</var>(e) For a part-year resident, the credit must be allocated based on the percentage <br/>
<a id="pl.19.14"></a><var>19.14</var>calculated under section 
         <statute_ref>290.06, subdivision 2c</statute_ref>, paragraph (e).<br/>
<a id="pl.19.15"></a><var>19.15</var>(f) For a person who was a resident for the entire tax year and has earned income <br/>
<a id="pl.19.16"></a><var>19.16</var>not subject to tax under this chapter, including income excluded under section 
         <statute_ref>290.01, <br/>
<a id="pl.19.17"></a><var>19.17</var>subdivision 19b
         </statute_ref>, clause (9), the credit must be allocated based on the ratio of federal <br/>
<a id="pl.19.18"></a><var>19.18</var>adjusted gross income reduced by the earned income not subject to tax under this chapter <br/>
<a id="pl.19.19"></a><var>19.19</var>over federal adjusted gross income. For purposes of this paragraph, the subtractions <br/>
<a id="pl.19.20"></a><var>19.20</var>for military pay under section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clauses (10) and (11), are not <br/>
<a id="pl.19.21"></a><var>19.21</var>considered "earned income not subject to tax under this chapter."<br/>
<a id="pl.19.22"></a><var>19.22</var>For the purposes of this paragraph, the exclusion of combat pay under section 112 <br/>
<a id="pl.19.23"></a><var>19.23</var>of the Internal Revenue Code is not considered "earned income not subject to tax under <br/>
<a id="pl.19.24"></a><var>19.24</var>this chapter."<br/>
<a id="pl.19.25"></a><var>19.25</var>(g) For tax years beginning after December 31, 2007, and before December 31, <br/>
<a id="pl.19.26"></a><var>19.26</var>2010, and for tax years beginning after December 31, 2017, the $8,130 in paragraph (b), <br/>
<a id="pl.19.27"></a><var>19.27</var>the $21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for <br/>
<a id="pl.19.28"></a><var>19.28</var>inflation under subdivision 7, are each increased by $3,000 for married taxpayers filing joint <br/>
<a id="pl.19.29"></a><var>19.29</var>returns. For tax years beginning after December 31, 2008, the commissioner shall annually <br/>
<a id="pl.19.30"></a><var>19.30</var>adjust the $3,000 by the percentage determined pursuant to the provisions of section 1(f) <br/>
<a id="pl.19.31"></a><var>19.31</var>of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall be <br/>
<a id="pl.19.32"></a><var>19.32</var>substituted for the word "1992." For 2009, the commissioner shall then determine the <br/>
<a id="pl.19.33"></a><var>19.33</var>percent change from the 12 months ending on August 31, 2007, to the 12 months ending on <br/>
<a id="pl.19.34"></a><var>19.34</var>August 31, 2008, and in each subsequent year, from the 12 months ending on August 31, <br/>
<a id="pl.19.35"></a><var>19.35</var>2007, to the 12 months ending on August 31 of the year preceding the taxable year. The <br/>
<a id="pl.19.36"></a><var>19.36</var>earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the <br/>
<a id="pl.20.1"></a><var>20.1</var>amount ends in $5, the amount is rounded up to the nearest $10. The determination of the <br/>
<a id="pl.20.2"></a><var>20.2</var>commissioner under this subdivision is not a rule under the Administrative Procedure Act.<br/>
<a id="pl.20.3"></a><var>20.3</var>(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014, <br/>
<a id="pl.20.4"></a><var>20.4</var>the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph <br/>
<a id="pl.20.5"></a><var>20.5</var>(d), after being adjusted for inflation under subdivision 7, are increased by $5,340 for <br/>
<a id="pl.20.6"></a><var>20.6</var>married taxpayers filing joint returns; and (2) For tax years beginning after December 31, <br/>
<a id="pl.20.7"></a><var>20.7</var>2013 2015, and before January 1, 2018, the $8,130 $12,000 in paragraph (b), the $21,190 <br/>
<a id="pl.20.8"></a><var>20.8</var>$21,620 in paragraph (c), and the $25,130 $25,640 in paragraph (d), after being adjusted for <br/>
<a id="pl.20.9"></a><var>20.9</var>inflation under subdivision 7, are each increased by $5,000 $5,550 for married taxpayers <br/>
<a id="pl.20.10"></a><var>20.10</var>filing joint returns. For tax years beginning after December 31, 2010, and before January <br/>
<a id="pl.20.11"></a><var>20.11</var>1, 2012, and for tax years beginning after December 31, 2013 2016, and before January <br/>
<a id="pl.20.12"></a><var>20.12</var>1, 2018, the commissioner shall annually adjust the $5,000 $5,550 by the percentage <br/>
<a id="pl.20.13"></a><var>20.13</var>determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except <br/>
<a id="pl.20.14"></a><var>20.14</var>that in section 1(f)(3)(B), the word "2008" "2015" shall be substituted for the word "1992." <br/>
<a id="pl.20.15"></a><var>20.15</var>For 2011 2017, the commissioner shall then determine the percent change from the 12 <br/>
<a id="pl.20.16"></a><var>20.16</var>months ending on August 31, 2008 2015, to the 12 months ending on August 31, 2010 <br/>
<a id="pl.20.17"></a><var>20.17</var>2016, and in each subsequent year, from the 12 months ending on August 31, 2008 2015, <br/>
<a id="pl.20.18"></a><var>20.18</var>to the 12 months ending on August 31 of the year preceding the taxable year. The earned <br/>
<a id="pl.20.19"></a><var>20.19</var>income thresholds as adjusted for inflation must be rounded to the nearest $10. If the <br/>
<a id="pl.20.20"></a><var>20.20</var>amount ends in $5, the amount is rounded up to the nearest $10. The determination of the <br/>
<a id="pl.20.21"></a><var>20.21</var>commissioner under this subdivision is not a rule under the Administrative Procedure Act.<br/>
<a id="pl.20.22"></a><var>20.22</var>(i) The commissioner shall construct tables showing the amount of the credit at <br/>
<a id="pl.20.23"></a><var>20.23</var>various income levels and make them available to taxpayers. The tables shall follow <br/>
<a id="pl.20.24"></a><var>20.24</var>the schedule contained in this subdivision, except that the commissioner may graduate <br/>
<a id="pl.20.25"></a><var>20.25</var>the transition between income brackets.<br/>
<a id="pl.20.26"></a><var>20.26</var><b>EFFECTIVE DATE.</b>This section is effective for tax years beginning after <br/>
<a id="pl.20.27"></a><var>20.27</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.20.28"></a><var>20.28</var>    Sec. 11. <b>[290.0693] CITIZENSHIP CREDIT.</b><br/>
<a id="pl.20.29"></a><var>20.29</var>    Subdivision 1. <b>Credit allowed.</b> An individual is allowed a credit against the tax <br/>
<a id="pl.20.30"></a><var>20.30</var>imposed by this chapter equal to qualified citizenship expenses paid for a qualified citizen <br/>
<a id="pl.20.31"></a><var>20.31</var>applicant. The maximum credit per qualified citizen applicant is $700.<br/>
<a id="pl.20.32"></a><var>20.32</var>    Subd. 2. <b>Limitations on credit.</b> (a) The credit is not allowed if the sum of an <br/>
<a id="pl.20.33"></a><var>20.33</var>individual's income and the individual's spouse's income exceeds 200 percent of the <br/>
<a id="pl.20.34"></a><var>20.34</var>federal poverty guideline.<br/>
<a id="pl.21.1"></a><var>21.1</var>(b) For an individual who is not a Minnesota resident for the entire year, the credit <br/>
<a id="pl.21.2"></a><var>21.2</var>must be apportioned using the percentage calculated in section 290.06, subdivision 2c, <br/>
<a id="pl.21.3"></a><var>21.3</var>paragraph (e).<br/>
<a id="pl.21.4"></a><var>21.4</var>(c) The credit is not allowed to an individual who is eligible to be claimed as a <br/>
<a id="pl.21.5"></a><var>21.5</var>dependent.<br/>
<a id="pl.21.6"></a><var>21.6</var>(d) The credit is not allowed for a qualified citizenship applicant who qualifies for a <br/>
<a id="pl.21.7"></a><var>21.7</var>federal waiver of qualified citizenship expenses.<br/>
<a id="pl.21.8"></a><var>21.8</var>    Subd. 3. <b>Definitions.</b> (a) For purposes of this section, the following terms have <br/>
<a id="pl.21.9"></a><var>21.9</var>the meanings given.<br/>
<a id="pl.21.10"></a><var>21.10</var>(b) "Dependent" has the meaning given in sections 151 and 152 of the Internal <br/>
<a id="pl.21.11"></a><var>21.11</var>Revenue Code.<br/>
<a id="pl.21.12"></a><var>21.12</var>(c) "Federal poverty guideline" means the guideline most recently published in the <br/>
<a id="pl.21.13"></a><var>21.13</var>Federal Register, adjusted for family size.<br/>
<a id="pl.21.14"></a><var>21.14</var>(d) "Income" has the meaning given in section 290.067, subdivision 2a.<br/>
<a id="pl.21.15"></a><var>21.15</var>(e) "Qualified citizenship expenses" means filing fees, including both application and <br/>
<a id="pl.21.16"></a><var>21.16</var>biometric fingerprint fees, paid to the United States Citizenship and Immigration Services <br/>
<a id="pl.21.17"></a><var>21.17</var>in connection with an N-400 naturalization application for a qualified citizenship applicant.<br/>
<a id="pl.21.18"></a><var>21.18</var>(f) "Qualified citizenship applicant" means the individual, the individual's spouse, <br/>
<a id="pl.21.19"></a><var>21.19</var>or a dependent of the individual.<br/>
<a id="pl.21.20"></a><var>21.20</var>    Subd. 4. <b>Credit refundable.</b> If the amount of credit that the claimant is eligible to <br/>
<a id="pl.21.21"></a><var>21.21</var>receive under this section exceeds the claimant's liability for tax under this chapter, the <br/>
<a id="pl.21.22"></a><var>21.22</var>commissioner of revenue shall refund the excess to the claimant.<br/>
<a id="pl.21.23"></a><var>21.23</var>    Subd. 5. <b>Appropriation.</b> An amount sufficient to pay the refunds required by this <br/>
<a id="pl.21.24"></a><var>21.24</var>section is appropriated from the general fund to the commissioner of revenue.<br/>
<a id="pl.21.25"></a><var>21.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.21.26"></a><var>21.26</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.21.27"></a><var>21.27</var>    Sec. 12. <b>[290.0694] CREDIT FOR NAMELESS JOB APPLICATION REVIEW </b><br/>
<a id="pl.21.28"></a><var>21.28</var><b>PROCESS IMPLEMENTATION.</b><br/>
<a id="pl.21.29"></a><var>21.29</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following definitions <br/>
<a id="pl.21.30"></a><var>21.30</var>apply.<br/>
<a id="pl.21.31"></a><var>21.31</var>(b) "Nameless job application review process" means a system or process that:<br/>
<a id="pl.21.32"></a><var>21.32</var>(1) removes the name of job applicants prior to review of the applicant's application <br/>
<a id="pl.21.33"></a><var>21.33</var>or request for interview, whether submitted in writing or online; and<br/>
<a id="pl.22.1"></a><var>22.1</var>(2) prevents any person reviewing job applications or requests for interview from <br/>
<a id="pl.22.2"></a><var>22.2</var>knowing the name of the applicant prior to or during review of the applicant's job <br/>
<a id="pl.22.3"></a><var>22.3</var>application or request for interview.<br/>
<a id="pl.22.4"></a><var>22.4</var>(c) "Qualified employer" means an employer that maintains a nameless job <br/>
<a id="pl.22.5"></a><var>22.5</var>application review process registered with the commissioner of human rights under <br/>
<a id="pl.22.6"></a><var>22.6</var>subdivision 3.<br/>
<a id="pl.22.7"></a><var>22.7</var>    Subd. 2. <b>Credit allowed.</b> (a) A qualified employer who is required to file a return <br/>
<a id="pl.22.8"></a><var>22.8</var>under section 289A.08, subdivision 1, 2, or 3, is allowed a credit against the tax due <br/>
<a id="pl.22.9"></a><var>22.9</var>under this chapter equal to $100 per employee employed in Minnesota, up to $40,000 per <br/>
<a id="pl.22.10"></a><var>22.10</var>taxable year. The number of employees equals the average number of full-time equivalent <br/>
<a id="pl.22.11"></a><var>22.11</var>employees employed by the qualified employer in the 12 months immediately preceding <br/>
<a id="pl.22.12"></a><var>22.12</var>registration with the commissioner of human rights.<br/>
<a id="pl.22.13"></a><var>22.13</var>(b) For a nonresident or part-year resident, the credit must be allocated based on the <br/>
<a id="pl.22.14"></a><var>22.14</var>percentage calculated under section 290.06, subdivision 2c, paragraph (e).<br/>
<a id="pl.22.15"></a><var>22.15</var>    Subd. 3. <b>Credit refundable.</b> (a) If the amount of credit that an individual is <br/>
<a id="pl.22.16"></a><var>22.16</var>allowed under this section exceeds the individual's tax liability under this chapter, the <br/>
<a id="pl.22.17"></a><var>22.17</var>commissioner shall refund the excess to the individual.<br/>
<a id="pl.22.18"></a><var>22.18</var>(b) The total amount of credits allocated in a calendar year must not exceed <br/>
<a id="pl.22.19"></a><var>22.19</var>$1,000,000. Credits must be processed and issued in the order that complete and accurate <br/>
<a id="pl.22.20"></a><var>22.20</var>returns are filed by the claimant.<br/>
<a id="pl.22.21"></a><var>22.21</var>    Subd. 4. <b>Registration requirement.</b> (a) An employer must register with the <br/>
<a id="pl.22.22"></a><var>22.22</var>commissioner of human rights to become a qualified employer.  The registration must be <br/>
<a id="pl.22.23"></a><var>22.23</var>in a form and manner prescribed by the commissioner of human rights in consultation <br/>
<a id="pl.22.24"></a><var>22.24</var>with the commissioner of revenue.<br/>
<a id="pl.22.25"></a><var>22.25</var>(b) The commissioner of human rights must implement procedures to verify the <br/>
<a id="pl.22.26"></a><var>22.26</var>information in an employer's registration to become a qualified employer and to monitor a <br/>
<a id="pl.22.27"></a><var>22.27</var>qualified employer's compliance in maintaining a nameless job application review process.<br/>
<a id="pl.22.28"></a><var>22.28</var>(c) A qualified employer must annually renew its registration with the commissioner <br/>
<a id="pl.22.29"></a><var>22.29</var>of human rights. An employer that ceases to be a qualified employer at any time during a <br/>
<a id="pl.22.30"></a><var>22.30</var>taxable year is not allowed the credit under this section.<br/>
<a id="pl.22.31"></a><var>22.31</var>    Subd. 5. <b>Appropriation.</b> An amount sufficient to pay the refunds required by this <br/>
<a id="pl.22.32"></a><var>22.32</var>section is appropriated to the commissioner from the general fund.<br/>
<a id="pl.22.33"></a><var>22.33</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.22.34"></a><var>22.34</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.22.35"></a><var>22.35</var>    Sec. 13. <b>[290.0695] STUDENT LOAN CREDIT.</b><br/>
<a id="pl.23.1"></a><var>23.1</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.23.2"></a><var>23.2</var>have the meanings given.<br/>
<a id="pl.23.3"></a><var>23.3</var>(b) "Education profession" means:<br/>
<a id="pl.23.4"></a><var>23.4</var>(1) a full-time job in public education; early childhood education, including licensed <br/>
<a id="pl.23.5"></a><var>23.5</var>or regulated child care, Head Start, and state-funded prekindergarten; school-based library <br/>
<a id="pl.23.6"></a><var>23.6</var>sciences; and other school-based services; or<br/>
<a id="pl.23.7"></a><var>23.7</var>(2) a full-time job as a faculty member at a tribal college or university as defined in <br/>
<a id="pl.23.8"></a><var>23.8</var>section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs <br/>
<a id="pl.23.9"></a><var>23.9</var>subject areas or areas of shortage, including nurse faculty, foreign language faculty, and <br/>
<a id="pl.23.10"></a><var>23.10</var>part-time faculty at community colleges, as determined by the United States Secretary <br/>
<a id="pl.23.11"></a><var>23.11</var>of Education.<br/>
<a id="pl.23.12"></a><var>23.12</var>(c) "Eligible individual" means an individual who has one or more qualified <br/>
<a id="pl.23.13"></a><var>23.13</var>education loans related to an undergraduate or graduate degree program at a postsecondary <br/>
<a id="pl.23.14"></a><var>23.14</var>educational institution.<br/>
<a id="pl.23.15"></a><var>23.15</var>(d) "Eligible loan payments" means the amount the eligible individual paid during <br/>
<a id="pl.23.16"></a><var>23.16</var>the taxable year to pay principal and interest on qualified education loans.<br/>
<a id="pl.23.17"></a><var>23.17</var>(e) "Adjusted gross income" means federal adjusted gross income as defined in <br/>
<a id="pl.23.18"></a><var>23.18</var>section 62 of the Internal Revenue Code.<br/>
<a id="pl.23.19"></a><var>23.19</var>(f) "Postsecondary educational institution" means a postsecondary institution eligible <br/>
<a id="pl.23.20"></a><var>23.20</var>for state student aid under section 136A.103 or, if the institution is not located in this state, <br/>
<a id="pl.23.21"></a><var>23.21</var>a postsecondary institution participating in the federal Pell Grant program under Title IV <br/>
<a id="pl.23.22"></a><var>23.22</var>of the Higher Education Act of 1965, Public Law 89-329, as amended.<br/>
<a id="pl.23.23"></a><var>23.23</var>(g) "Public service job" means a full-time job in emergency management; <br/>
<a id="pl.23.24"></a><var>23.24</var>government, excluding time served as a member of Congress; military service; public <br/>
<a id="pl.23.25"></a><var>23.25</var>safety; law enforcement; public health, including nurses, nurse practitioners, nurses <br/>
<a id="pl.23.26"></a><var>23.26</var>in a clinical setting, and full-time professionals engaged in health care practitioner <br/>
<a id="pl.23.27"></a><var>23.27</var>occupations and health care support occupations, as such terms are defined by the Bureau <br/>
<a id="pl.23.28"></a><var>23.28</var>of Labor Statistics; social work in a public child or family service agency; public interest <br/>
<a id="pl.23.29"></a><var>23.29</var>law services including prosecution or public defense or legal advocacy on behalf of <br/>
<a id="pl.23.30"></a><var>23.30</var>low-income communities at a nonprofit organization; public service for individuals with <br/>
<a id="pl.23.31"></a><var>23.31</var>disabilities or public service for the elderly; public library sciences; or at an organization <br/>
<a id="pl.23.32"></a><var>23.32</var>that is described in section 501(c)(3) of the Internal Revenue Code and exempt from <br/>
<a id="pl.23.33"></a><var>23.33</var>taxation under section 501(a) of the Internal Revenue Code.<br/>
<a id="pl.23.34"></a><var>23.34</var>(h) "Qualified education loan" has the meaning given in section 221 of the Internal <br/>
<a id="pl.23.35"></a><var>23.35</var>Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual <br/>
<a id="pl.23.36"></a><var>23.36</var>or the eligible individual's spouse.<br/>
<a id="pl.24.1"></a><var>24.1</var>    Subd. 2. <b>Credit allowed.</b> (a) An eligible individual or the parent of an eligible <br/>
<a id="pl.24.2"></a><var>24.2</var>individual is allowed a credit against the tax due under this chapter. The credit equals a <br/>
<a id="pl.24.3"></a><var>24.3</var>percentage of eligible loan payments in excess of ten percent of adjusted gross income, <br/>
<a id="pl.24.4"></a><var>24.4</var>up to $1,000, as follows:<br/>
<a id="pl.24.5"></a><var>24.5</var>(1) for eligible individuals, 50 percent;<br/>
<a id="pl.24.6"></a><var>24.6</var>(2) for eligible individuals in a public service job, 65 percent; and<br/>
<a id="pl.24.7"></a><var>24.7</var>(3) for eligible individuals in an education profession, 75 percent.<br/>
<a id="pl.24.8"></a><var>24.8</var>(b) The credit for the parent of an eligible individual, eligible individual in a public <br/>
<a id="pl.24.9"></a><var>24.9</var>service job, or eligible individual in an education profession equals the amount of eligible <br/>
<a id="pl.24.10"></a><var>24.10</var>loan payments made by the parent of the eligible individual, eligible individual in a public <br/>
<a id="pl.24.11"></a><var>24.11</var>service job, or eligible individual in an education profession  during the taxable year, up to <br/>
<a id="pl.24.12"></a><var>24.12</var>$1,000, less the amount of credit allowed to the eligible individual, eligible individual in a <br/>
<a id="pl.24.13"></a><var>24.13</var>public service job, or eligible individual in an education profession  under paragraph (a).<br/>
<a id="pl.24.14"></a><var>24.14</var>(c) For a nonresident or part-year resident, the credit must be allocated based on the <br/>
<a id="pl.24.15"></a><var>24.15</var>percentage calculated under section 290.06, subdivision 2c, paragraph (e).<br/>
<a id="pl.24.16"></a><var>24.16</var>(d) An eligible individual or the parent of an eligible individual may receive the <br/>
<a id="pl.24.17"></a><var>24.17</var>credit under this section without regard to the individual's eligibility for the public service <br/>
<a id="pl.24.18"></a><var>24.18</var>loan forgiveness program under United States Code, title 20, section 1087e(m).<br/>
<a id="pl.24.19"></a><var>24.19</var>    Subd. 3. <b>Credit refundable.</b> If the amount of credit that an individual who is a <br/>
<a id="pl.24.20"></a><var>24.20</var>resident or part-year resident of Minnesota is eligible to receive under this section exceeds <br/>
<a id="pl.24.21"></a><var>24.21</var>the individual's tax liability under this chapter, the commissioner shall refund the excess <br/>
<a id="pl.24.22"></a><var>24.22</var>to the individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's <br/>
<a id="pl.24.23"></a><var>24.23</var>liability for tax under this chapter.<br/>
<a id="pl.24.24"></a><var>24.24</var>    Subd. 4. <b>Appropriation.</b> An amount sufficient to pay the refunds required by this <br/>
<a id="pl.24.25"></a><var>24.25</var>section is appropriated to the commissioner from the general fund.<br/>
<a id="pl.24.26"></a><var>24.26</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.24.27"></a><var>24.27</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.24.28"></a><var>24.28</var>    Sec. 14. <b>[290.0696] READING CREDIT.</b><br/>
<a id="pl.24.29"></a><var>24.29</var>    Subdivision 1. <b>Reading credit.</b> (a) A taxpayer is allowed a credit, up to $3,000, <br/>
<a id="pl.24.30"></a><var>24.30</var>against the tax imposed by this chapter. The credit amount equals 75 percent of the amount <br/>
<a id="pl.24.31"></a><var>24.31</var>of eligible expenses paid by a taxpayer who is a parent or guardian of a qualifying child:<br/>
<a id="pl.24.32"></a><var>24.32</var>(1) who has been evaluated for determination of a specific learning disability under <br/>
<a id="pl.24.33"></a><var>24.33</var>Minnesota Rules, part 3525.1341, or by a licensed psychologist; and<br/>
<a id="pl.25.1"></a><var>25.1</var>(2) for whom the evaluation indicated a determination of dyslexia, a specific <br/>
<a id="pl.25.2"></a><var>25.2</var>learning disability, or a deficit in basic reading skills, reading comprehension, reading <br/>
<a id="pl.25.3"></a><var>25.3</var>fluency, or spelling.<br/>
<a id="pl.25.4"></a><var>25.4</var>(b) For purposes of this subdivision, the following definitions apply:<br/>
<a id="pl.25.5"></a><var>25.5</var>(1) "eligible expenses" means actual expenses, less the amount of expenses used to <br/>
<a id="pl.25.6"></a><var>25.6</var>claim the credit under section 290.0674, subdivision 1, paid by the taxpayer for tutoring, <br/>
<a id="pl.25.7"></a><var>25.7</var>instruction, treatment by an instructor, or an evaluation under paragraph (a), clause (1), <br/>
<a id="pl.25.8"></a><var>25.8</var>and not compensated by insurance, pretax account, or otherwise, for purposes of meeting <br/>
<a id="pl.25.9"></a><var>25.9</var>the academic standards required under section 120B.021;<br/>
<a id="pl.25.10"></a><var>25.10</var>(2) "instructor" means a person qualifying under section 120A.22, subdivision 10, <br/>
<a id="pl.25.11"></a><var>25.11</var>clauses (1) to (5), who is not a lineal ancestor or sibling of the qualifying child; <br/>
<a id="pl.25.12"></a><var>25.12</var>(3) "treatment" means instruction that:<br/>
<a id="pl.25.13"></a><var>25.13</var>(i) teaches language decoding skills in a systematic manner;<br/>
<a id="pl.25.14"></a><var>25.14</var>(ii) uses recognized diagnostic assessments to determine what intervention would be <br/>
<a id="pl.25.15"></a><var>25.15</var>most appropriate for individual students; and<br/>
<a id="pl.25.16"></a><var>25.16</var>(iii) employs a research-based method; and<br/>
<a id="pl.25.17"></a><var>25.17</var>(4) "qualifying child" has the meaning given in section 32(c)(3) of the Internal <br/>
<a id="pl.25.18"></a><var>25.18</var>Revenue Code.<br/>
<a id="pl.25.19"></a><var>25.19</var>(c) A taxpayer claiming the credit under this subdivision must provide documentation <br/>
<a id="pl.25.20"></a><var>25.20</var>of eligibility for the credit in a form and manner prescribed by the commissioner in <br/>
<a id="pl.25.21"></a><var>25.21</var>consultation with the commissioner of education. The documentation under this paragraph <br/>
<a id="pl.25.22"></a><var>25.22</var>must not disclose any information other than that necessary to prove eligibility for the <br/>
<a id="pl.25.23"></a><var>25.23</var>credit allowed under this subdivision.<br/>
<a id="pl.25.24"></a><var>25.24</var>(d) For a nonresident or part-year resident, the credit determined under this section <br/>
<a id="pl.25.25"></a><var>25.25</var>must be allocated based on the percentage calculated under section 290.06, subdivision <br/>
<a id="pl.25.26"></a><var>25.26</var>2c, paragraph (e).<br/>
<a id="pl.25.27"></a><var>25.27</var>(e) The amount used to claim the credit under this section must be excluded from <br/>
<a id="pl.25.28"></a><var>25.28</var>any amount subtracted from federal taxable income under section 290.01, subdivision <br/>
<a id="pl.25.29"></a><var>25.29</var>19b, clause (3).<br/>
<a id="pl.25.30"></a><var>25.30</var>    Subd. 2. <b>Assignment of refunds.</b> The provisions of section 290.0679, except <br/>
<a id="pl.25.31"></a><var>25.31</var>for subdivision 1, paragraphs (a) and (b), apply to the assignment of refunds authorized <br/>
<a id="pl.25.32"></a><var>25.32</var>under this section. For purposes of assignment of refund under this section, "qualifying <br/>
<a id="pl.25.33"></a><var>25.33</var>taxpayer" means a taxpayer qualified to receive a credit under this section. In no case shall <br/>
<a id="pl.25.34"></a><var>25.34</var>any condition for assignment require disclosure of the specific findings of an evaluation <br/>
<a id="pl.25.35"></a><var>25.35</var>for a specific learning disability.<br/>
<a id="pl.26.1"></a><var>26.1</var>    Subd. 3. <b>Credit refundable.</b> If the amount of total credits that the claimant is <br/>
<a id="pl.26.2"></a><var>26.2</var>eligible to receive under this section exceeds the claimant's tax liability under this chapter, <br/>
<a id="pl.26.3"></a><var>26.3</var>the commissioner shall refund the excess to the claimant.<br/>
<a id="pl.26.4"></a><var>26.4</var>    Subd. 4. <b>Appropriation.</b> An amount sufficient to pay the refunds authorized under <br/>
<a id="pl.26.5"></a><var>26.5</var>this section is appropriated to the commissioner from the general fund.<br/>
<a id="pl.26.6"></a><var>26.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.26.7"></a><var>26.7</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.26.8"></a><var>26.8</var>    Sec. 15. <b>[290.0697] CREDIT FOR PARENTS OF STILLBORN CHILDREN.</b><br/>
<a id="pl.26.9"></a><var>26.9</var>    Subdivision 1. <b>Credit allowed.</b> (a) An individual is allowed a credit against the <br/>
<a id="pl.26.10"></a><var>26.10</var>tax imposed by this chapter equal to $2,000 for each birth for which a certificate of <br/>
<a id="pl.26.11"></a><var>26.11</var>birth resulting in stillbirth has been issued under section 144.2151.  The credit under <br/>
<a id="pl.26.12"></a><var>26.12</var>this section is allowed only in the taxable year in which the stillbirth occurred and if <br/>
<a id="pl.26.13"></a><var>26.13</var>the child would have been a dependent of the taxpayer as defined in section 152 of the <br/>
<a id="pl.26.14"></a><var>26.14</var>Internal Revenue Code.<br/>
<a id="pl.26.15"></a><var>26.15</var>(b) For a part-year resident, the credit must be allocated based on the percentage <br/>
<a id="pl.26.16"></a><var>26.16</var>calculated under section 290.06, subdivision 2c, paragraph (e).<br/>
<a id="pl.26.17"></a><var>26.17</var>    Subd. 2. <b>Credit refundable.</b> If the amount of credit that an individual is <br/>
<a id="pl.26.18"></a><var>26.18</var>allowed under this section exceeds the individual's tax liability under this chapter, the <br/>
<a id="pl.26.19"></a><var>26.19</var>commissioner shall refund the excess to the individual.<br/>
<a id="pl.26.20"></a><var>26.20</var>    Subd. 3. <b>Appropriation.</b> An amount sufficient to pay the refunds required by this <br/>
<a id="pl.26.21"></a><var>26.21</var>section is appropriated to the commissioner from the general fund.<br/>
<a id="pl.26.22"></a><var>26.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br/>
<a id="pl.26.23"></a><var>26.23</var>December 31, 2015.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.26.24"></a><var>26.24</var>    Sec. 16. Minnesota Statutes 2014, section 290.091, subdivision 2, is amended to read:<br/>
<a id="pl.26.25"></a><var>26.25</var>    Subd. 2. <b>Definitions.</b> For purposes of the tax imposed by this section, the following <br/>
<a id="pl.26.26"></a><var>26.26</var>terms have the meanings given:<br/>
<a id="pl.26.27"></a><var>26.27</var>    (a) "Alternative minimum taxable income" means the sum of the following for <br/>
<a id="pl.26.28"></a><var>26.28</var>the taxable year:<br/>
<a id="pl.26.29"></a><var>26.29</var>    (1) the taxpayer's federal alternative minimum taxable income as defined in section <br/>
<a id="pl.26.30"></a><var>26.30</var>55(b)(2) of the Internal Revenue Code;<br/>
<a id="pl.26.31"></a><var>26.31</var>    (2) the taxpayer's itemized deductions allowed in computing federal alternative <br/>
<a id="pl.26.32"></a><var>26.32</var>minimum taxable income, but excluding:<br/>
<a id="pl.27.1"></a><var>27.1</var>    (i) the charitable contribution deduction under section 170 of the Internal Revenue <br/>
<a id="pl.27.2"></a><var>27.2</var>Code;<br/>
<a id="pl.27.3"></a><var>27.3</var>    (ii) the medical expense deduction;<br/>
<a id="pl.27.4"></a><var>27.4</var>    (iii) the casualty, theft, and disaster loss deduction; and<br/>
<a id="pl.27.5"></a><var>27.5</var>    (iv) the impairment-related work expenses of a disabled person;<br/>
<a id="pl.27.6"></a><var>27.6</var>    (3) for depletion allowances computed under section 613A(c) of the Internal <br/>
<a id="pl.27.7"></a><var>27.7</var>Revenue Code, with respect to each property (as defined in section 614 of the Internal <br/>
<a id="pl.27.8"></a><var>27.8</var>Revenue Code), to the extent not included in federal alternative minimum taxable income, <br/>
<a id="pl.27.9"></a><var>27.9</var>the excess of the deduction for depletion allowable under section 611 of the Internal <br/>
<a id="pl.27.10"></a><var>27.10</var>Revenue Code for the taxable year over the adjusted basis of the property at the end of the <br/>
<a id="pl.27.11"></a><var>27.11</var>taxable year (determined without regard to the depletion deduction for the taxable year);<br/>
<a id="pl.27.12"></a><var>27.12</var>    (4) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.27.13"></a><var>27.13</var>amount of the tax preference for intangible drilling cost under section 57(a)(2) of the <br/>
<a id="pl.27.14"></a><var>27.14</var>Internal Revenue Code determined without regard to subparagraph (E);<br/>
<a id="pl.27.15"></a><var>27.15</var>    (5) to the extent not included in federal alternative minimum taxable income, the <br/>
<a id="pl.27.16"></a><var>27.16</var>amount of interest income as provided by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1); and<br/>
<a id="pl.27.17"></a><var>27.17</var>    (6) the amount of addition required by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses <br/>
<a id="pl.27.18"></a><var>27.18</var>(7) to (9), and (11) to (14); and<br/>
<a id="pl.27.19"></a><var>27.19</var>    (7) the amount of the addition required by section 290.01, subdivision 19a, clause <br/>
<a id="pl.27.20"></a><var>27.20</var>(18);<br/>
<a id="pl.27.21"></a><var>27.21</var>    less the sum of the amounts determined under the following:<br/>
<a id="pl.27.22"></a><var>27.22</var>    (1) interest income as defined in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1);<br/>
<a id="pl.27.23"></a><var>27.23</var>    (2) an overpayment of state income tax as provided by section 
         <statute_ref>290.01, subdivision <br/>
<a id="pl.27.24"></a><var>27.24</var>19b
         </statute_ref>, clause (2), to the extent included in federal alternative minimum taxable income;<br/>
<a id="pl.27.25"></a><var>27.25</var>    (3) the amount of investment interest paid or accrued within the taxable year on <br/>
<a id="pl.27.26"></a><var>27.26</var>indebtedness to the extent that the amount does not exceed net investment income, as <br/>
<a id="pl.27.27"></a><var>27.27</var>defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include <br/>
<a id="pl.27.28"></a><var>27.28</var>amounts deducted in computing federal adjusted gross income;<br/>
<a id="pl.27.29"></a><var>27.29</var>    (4) amounts subtracted from federal taxable income as provided by section 
         <statute_ref>290.01, <br/>
<a id="pl.27.30"></a><var>27.30</var>subdivision 19b
         </statute_ref>, clauses (6), (8) to (14), and (16), and (21); and<br/>
<a id="pl.27.31"></a><var>27.31</var>(5) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br/>
<a id="pl.27.32"></a><var>27.32</var>11
         </statute_ref>, paragraph (c).<br/>
<a id="pl.27.33"></a><var>27.33</var>    In the case of an estate or trust, alternative minimum taxable income must be <br/>
<a id="pl.27.34"></a><var>27.34</var>computed as provided in section 59(c) of the Internal Revenue Code.<br/>
<a id="pl.27.35"></a><var>27.35</var>    (b) "Investment interest" means investment interest as defined in section 163(d)(3) <br/>
<a id="pl.27.36"></a><var>27.36</var>of the Internal Revenue Code.<br/>
<a id="pl.28.1"></a><var>28.1</var>    (c) "Net minimum tax" means the minimum tax imposed by this section.<br/>
<a id="pl.28.2"></a><var>28.2</var>    (d) "Regular tax" means the tax that would be imposed under this chapter (without <br/>
<a id="pl.28.3"></a><var>28.3</var>regard to this section and section 290.032), reduced by the sum of the nonrefundable <br/>
<a id="pl.28.4"></a><var>28.4</var>credits allowed under this chapter.<br/>
<a id="pl.28.5"></a><var>28.5</var>    (e) "Tentative minimum tax" equals 
         <statute_ref>6.75</statute_ref> percent of alternative minimum taxable <br/>
<a id="pl.28.6"></a><var>28.6</var>income after subtracting the exemption amount determined under subdivision 3.<br/>
<a id="pl.28.7"></a><var>28.7</var><b>EFFECTIVE DATE.</b>Paragraph (a), clause (7), is effective for taxable years <br/>
<a id="pl.28.8"></a><var>28.8</var>beginning after December 31, 2015. The change to paragraph (a), the second clause <br/>
<a id="pl.28.9"></a><var>28.9</var>(4), is effective the day following final enactment, except the changes incorporated by <br/>
<a id="pl.28.10"></a><var>28.10</var>federal changes are effective retroactively at the same time as the changes were effective <br/>
<a id="pl.28.11"></a><var>28.11</var>for federal purposes.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.28.12"></a><var>28.12</var>    Sec. 17. Minnesota Statutes 2015 Supplement, section 290A.03, subdivision 15, <br/>
<a id="pl.28.13"></a><var>28.13</var>is amended to read:<br/>
<a id="pl.28.14"></a><var>28.14</var>    Subd. 15. <b>Internal Revenue Code.</b>  "Internal Revenue Code" means the Internal <br/>
<a id="pl.28.15"></a><var>28.15</var>Revenue Code of 1986, as amended through December 31, 2014 2015.<br/>
<a id="pl.28.16"></a><var>28.16</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for property tax refunds <br/>
<a id="pl.28.17"></a><var>28.17</var>based on property taxes payable after December 31, 2015, and rent paid after December <br/>
<a id="pl.28.18"></a><var>28.18</var>31, 2014.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.28.19"></a><var>28.19</var>    Sec. 18. Minnesota Statutes 2015 Supplement, section 291.005, subdivision 1, is <br/>
<a id="pl.28.20"></a><var>28.20</var>amended to read:<br/>
<a id="pl.28.21"></a><var>28.21</var>    Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following <br/>
<a id="pl.28.22"></a><var>28.22</var>terms used in this chapter shall have the following meanings:<br/>
<a id="pl.28.23"></a><var>28.23</var>    (1) "Commissioner" means the commissioner of revenue or any person to whom the <br/>
<a id="pl.28.24"></a><var>28.24</var>commissioner has delegated functions under this chapter.<br/>
<a id="pl.28.25"></a><var>28.25</var>    (2) "Federal gross estate" means the gross estate of a decedent as required to be valued <br/>
<a id="pl.28.26"></a><var>28.26</var>and otherwise determined for federal estate tax purposes under the Internal Revenue Code, <br/>
<a id="pl.28.27"></a><var>28.27</var>increased by the value of any property in which the decedent had a qualifying income <br/>
<a id="pl.28.28"></a><var>28.28</var>interest for life and for which an election was made under section 
         <statute_ref>291.03, subdivision 1d</statute_ref>, <br/>
<a id="pl.28.29"></a><var>28.29</var>for Minnesota estate tax purposes, but was not made for federal estate tax purposes.<br/>
<a id="pl.28.30"></a><var>28.30</var>    (3) "Internal Revenue Code" means the United States Internal Revenue Code of <br/>
<a id="pl.28.31"></a><var>28.31</var>1986, as amended through December 31, 2014 2015.<br/>
<a id="pl.28.32"></a><var>28.32</var>    (4) "Minnesota gross estate" means the federal gross estate of a decedent after <br/>
<a id="pl.28.33"></a><var>28.33</var>(a) excluding therefrom any property included in the estate which has its situs outside <br/>
<a id="pl.29.1"></a><var>29.1</var>Minnesota, and (b) including any property omitted from the federal gross estate which <br/>
<a id="pl.29.2"></a><var>29.2</var>is includable in the estate, has its situs in Minnesota, and was not disclosed to federal <br/>
<a id="pl.29.3"></a><var>29.3</var>taxing authorities.<br/>
<a id="pl.29.4"></a><var>29.4</var>    (5) "Nonresident decedent" means an individual whose domicile at the time of <br/>
<a id="pl.29.5"></a><var>29.5</var>death was not in Minnesota.<br/>
<a id="pl.29.6"></a><var>29.6</var>    (6) "Personal representative" means the executor, administrator or other person <br/>
<a id="pl.29.7"></a><var>29.7</var>appointed by the court to administer and dispose of the property of the decedent. If there <br/>
<a id="pl.29.8"></a><var>29.8</var>is no executor, administrator or other person appointed, qualified, and acting within this <br/>
<a id="pl.29.9"></a><var>29.9</var>state, then any person in actual or constructive possession of any property having a situs in <br/>
<a id="pl.29.10"></a><var>29.10</var>this state which is included in the federal gross estate of the decedent shall be deemed <br/>
<a id="pl.29.11"></a><var>29.11</var>to be a personal representative to the extent of the property and the Minnesota estate tax <br/>
<a id="pl.29.12"></a><var>29.12</var>due with respect to the property.<br/>
<a id="pl.29.13"></a><var>29.13</var>    (7) "Resident decedent" means an individual whose domicile at the time of death <br/>
<a id="pl.29.14"></a><var>29.14</var>was in Minnesota.<br/>
<a id="pl.29.15"></a><var>29.15</var>    (8) "Situs of property" means, with respect to:<br/>
<a id="pl.29.16"></a><var>29.16</var>    (i) real property, the state or country in which it is located;<br/>
<a id="pl.29.17"></a><var>29.17</var>    (ii) tangible personal property, the state or country in which it was normally kept <br/>
<a id="pl.29.18"></a><var>29.18</var>or located at the time of the decedent's death or for a gift of tangible personal property <br/>
<a id="pl.29.19"></a><var>29.19</var>within three years of death, the state or country in which it was normally kept or located <br/>
<a id="pl.29.20"></a><var>29.20</var>when the gift was executed;<br/>
<a id="pl.29.21"></a><var>29.21</var>    (iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue <br/>
<a id="pl.29.22"></a><var>29.22</var>Code, owned by a nonresident decedent and that is normally kept or located in this state <br/>
<a id="pl.29.23"></a><var>29.23</var>because it is on loan to an organization, qualifying as exempt from taxation under section <br/>
<a id="pl.29.24"></a><var>29.24</var>501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is <br/>
<a id="pl.29.25"></a><var>29.25</var>deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and<br/>
<a id="pl.29.26"></a><var>29.26</var>    (iv) intangible personal property, the state or country in which the decedent was <br/>
<a id="pl.29.27"></a><var>29.27</var>domiciled at death or for a gift of intangible personal property within three years of death, <br/>
<a id="pl.29.28"></a><var>29.28</var>the state or country in which the decedent was domiciled when the gift was executed.<br/>
<a id="pl.29.29"></a><var>29.29</var>    For a nonresident decedent with an ownership interest in a pass-through entity with <br/>
<a id="pl.29.30"></a><var>29.30</var>assets that include real or tangible personal property, situs of the real or tangible personal <br/>
<a id="pl.29.31"></a><var>29.31</var>property, including qualified works of art, is determined as if the pass-through entity does <br/>
<a id="pl.29.32"></a><var>29.32</var>not exist and the real or tangible personal property is personally owned by the decedent. <br/>
<a id="pl.29.33"></a><var>29.33</var>If the pass-through entity is owned by a person or persons in addition to the decedent, <br/>
<a id="pl.29.34"></a><var>29.34</var>ownership of the property is attributed to the decedent in proportion to the decedent's <br/>
<a id="pl.29.35"></a><var>29.35</var>capital ownership share of the pass-through entity.<br/>
<a id="pl.29.36"></a><var>29.36</var>(9) "Pass-through entity" includes the following:<br/>
<a id="pl.30.1"></a><var>30.1</var>(i) an entity electing S corporation status under section 1362 of the Internal Revenue <br/>
<a id="pl.30.2"></a><var>30.2</var>Code;<br/>
<a id="pl.30.3"></a><var>30.3</var>(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;<br/>
<a id="pl.30.4"></a><var>30.4</var>(iii) a single-member limited liability company or similar entity, regardless of <br/>
<a id="pl.30.5"></a><var>30.5</var>whether it is taxed as an association or is disregarded for federal income tax purposes <br/>
<a id="pl.30.6"></a><var>30.6</var>under Code of Federal Regulations, title 26, section 301.7701-3; or<br/>
<a id="pl.30.7"></a><var>30.7</var>(iv) a trust to the extent the property is includible in the decedent's federal gross <br/>
<a id="pl.30.8"></a><var>30.8</var>estate; but excludes<br/>
<a id="pl.30.9"></a><var>30.9</var>    (v) an entity whose ownership interest securities are traded on an exchange regulated <br/>
<a id="pl.30.10"></a><var>30.10</var>by the Securities and Exchange Commission as a national securities exchange under <br/>
<a id="pl.30.11"></a><var>30.11</var>section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.<br/>
<a id="pl.30.12"></a><var>30.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.30.13"></a><var>30.13</var>    Sec. 19. <b>AMENDED RETURNS.</b><br/>
<a id="pl.30.14"></a><var>30.14</var>    Subdivision 1. <b>Certain IRA rollovers.</b> An individual who excludes an amount <br/>
<a id="pl.30.15"></a><var>30.15</var>from net income in a prior taxable year through rollover of an airline payment amount to <br/>
<a id="pl.30.16"></a><var>30.16</var>a traditional IRA, as authorized under Public Law 114-113, division Q, title III, section <br/>
<a id="pl.30.17"></a><var>30.17</var>307, may file an amended individual income tax return and claim for refund of state taxes <br/>
<a id="pl.30.18"></a><var>30.18</var>as provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by <br/>
<a id="pl.30.19"></a><var>30.19</var>September 1, 2016.<br/>
<a id="pl.30.20"></a><var>30.20</var>    Subd. 2. <b>Exclusion for certain incarcerated individuals.</b> An individual who <br/>
<a id="pl.30.21"></a><var>30.21</var>excludes from net income in a prior taxable year civil damages, restitution, or other <br/>
<a id="pl.30.22"></a><var>30.22</var>monetary award received as compensation for a wrongful incarceration, as authorized <br/>
<a id="pl.30.23"></a><var>30.23</var>under Public Law 114-113, division Q, title III, section 304, may file an amended <br/>
<a id="pl.30.24"></a><var>30.24</var>individual income tax return and claim for refund of state taxes as provided under <br/>
<a id="pl.30.25"></a><var>30.25</var>Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by September 1, 2016.<br/>
<a id="pl.30.26"></a><var>30.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.30.27"></a><var>30.27</var>    Sec. 20. <b>TAX TIME SAVINGS GRANT PROGRAM APPROPRIATION.</b><br/>
<a id="pl.30.28"></a><var>30.28</var>(a) $400,000 is appropriated in fiscal year 2017 from the general fund to the <br/>
<a id="pl.30.29"></a><var>30.29</var>commissioner of revenue to make grants under the tax time savings grant program under <br/>
<a id="pl.30.30"></a><var>30.30</var>Minnesota Statutes, section 270C.22. Of this amount, up to five percent may be used for <br/>
<a id="pl.30.31"></a><var>30.31</var>the administration of the tax time savings grant program.<br/>
<a id="pl.30.32"></a><var>30.32</var>(b) The base funding for the grant program authorized under paragraph (a) is <br/>
<a id="pl.30.33"></a><var>30.33</var>$400,000 each year.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.31.1"></a><var>31.1</var>    Sec. 21. <b>TAXPAYER ASSISTANCE GRANTS APPROPRIATION.</b><br/>
<a id="pl.31.2"></a><var>31.2</var>(a) $400,000 is appropriated in fiscal year 2017 from the general fund to the <br/>
<a id="pl.31.3"></a><var>31.3</var>commissioner of revenue for the provision of taxpayer assistance grants under Minnesota <br/>
<a id="pl.31.4"></a><var>31.4</var>Statutes, section 270C.21, in addition to the current base funding for the program. Of the <br/>
<a id="pl.31.5"></a><var>31.5</var>amount appropriated under this paragraph and the current base funding for the provision <br/>
<a id="pl.31.6"></a><var>31.6</var>of taxpayer assistance grants, up to five percent may be used for the administration of the <br/>
<a id="pl.31.7"></a><var>31.7</var>taxpayer assistance grants program.<br/>
<a id="pl.31.8"></a><var>31.8</var>(b) After fiscal year 2017, the base funding for the program under paragraph (a) is <br/>
<a id="pl.31.9"></a><var>31.9</var>$800,000 each year.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="bill.2.1.0"></a><a id="pl.31.12"></a><var>31.12</var>    Section 1. Minnesota Statutes 2014, section 297A.66, subdivision 1, is amended to read:<br/>
<a id="pl.31.13"></a><var>31.13</var>    Subdivision 1. <b>Definitions.</b> (a) To the extent allowed by the United States <br/>
<a id="pl.31.14"></a><var>31.14</var>Constitution and the laws of the United States, "retailer maintaining a place of business in <br/>
<a id="pl.31.15"></a><var>31.15</var>this state," or a similar term, means a retailer:<br/>
<a id="pl.31.16"></a><var>31.16</var>(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, <br/>
<a id="pl.31.17"></a><var>31.17</var>an office, place of distribution, sales, storage, or sample room or place, warehouse, or <br/>
<a id="pl.31.18"></a><var>31.18</var>other place of business, including the employment of a resident of this state who works <br/>
<a id="pl.31.19"></a><var>31.19</var>from a home office in this state; or<br/>
<a id="pl.31.20"></a><var>31.20</var>(2) having a representative, including, but not limited to, an affiliate, agent, <br/>
<a id="pl.31.21"></a><var>31.21</var>salesperson, canvasser, or marketplace provider,  solicitor, or other third party operating in <br/>
<a id="pl.31.22"></a><var>31.22</var>this state under the authority of the retailer or its subsidiary, for any purpose, including the <br/>
<a id="pl.31.23"></a><var>31.23</var>repairing, selling, delivering, installing, facilitating sales, processing sales, or soliciting <br/>
<a id="pl.31.24"></a><var>31.24</var>of orders for the retailer's goods or services, or the leasing of tangible personal property <br/>
<a id="pl.31.25"></a><var>31.25</var>located in this state, whether the place of business or agent, representative, affiliate, <br/>
<a id="pl.31.26"></a><var>31.26</var>salesperson, canvasser, or solicitor is located in the state permanently or temporarily, or <br/>
<a id="pl.31.27"></a><var>31.27</var>whether or not the retailer, subsidiary, or affiliate is authorized to do business in this state.<br/>
<a id="pl.31.28"></a><var>31.28</var>(b) "Destination of a sale" means the location to which the retailer makes delivery of <br/>
<a id="pl.31.29"></a><var>31.29</var>the property sold, or causes the property to be delivered, to the purchaser of the property, <br/>
<a id="pl.31.30"></a><var>31.30</var>or to the agent or designee of the purchaser. The delivery may be made by any means, <br/>
<a id="pl.31.31"></a><var>31.31</var>including the United States Postal Service or a for-hire carrier.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.31.32"></a><var>31.32</var>    Sec. 2. Minnesota Statutes 2014, section 297A.66, subdivision 3, is amended to read:<br/>
<a id="pl.31.33"></a><var>31.33</var>    Subd. 3. <b>Retailer not maintaining place of business in this state.</b> (a) To the <br/>
<a id="pl.31.34"></a><var>31.34</var>extent allowed by the United States Constitution and in accordance with the terms and <br/>
<a id="pl.32.1"></a><var>32.1</var>conditions of federal remote seller law, a retailer making retail sales from outside this state <br/>
<a id="pl.32.2"></a><var>32.2</var>to a destination within this state and not maintaining a place of business in this state shall <br/>
<a id="pl.32.3"></a><var>32.3</var>collect sales and use taxes and remit them to the commissioner under section 
         <statute_ref>297A.77</statute_ref>.<br/>
<a id="pl.32.4"></a><var>32.4</var>(b) To the extent allowed by the United States Constitution and the laws of the <br/>
<a id="pl.32.5"></a><var>32.5</var>United States, a retailer making retail sales from outside this state to a destination within <br/>
<a id="pl.32.6"></a><var>32.6</var>this state and not maintaining a place of business in this state shall collect sales and use <br/>
<a id="pl.32.7"></a><var>32.7</var>taxes and remit them to the commissioner under section 
         <statute_ref>297A.77</statute_ref>, if the retailer engages in <br/>
<a id="pl.32.8"></a><var>32.8</var>the regular or systematic soliciting of sales from potential customers in this state by:<br/>
<a id="pl.32.9"></a><var>32.9</var>(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or <br/>
<a id="pl.32.10"></a><var>32.10</var>other written solicitations of business to customers in this state;<br/>
<a id="pl.32.11"></a><var>32.11</var>(2) display of advertisements on billboards or other outdoor advertising in this state;<br/>
<a id="pl.32.12"></a><var>32.12</var>(3) advertisements in newspapers published in this state;<br/>
<a id="pl.32.13"></a><var>32.13</var>(4) advertisements in trade journals or other periodicals the circulation of which is <br/>
<a id="pl.32.14"></a><var>32.14</var>primarily within this state;<br/>
<a id="pl.32.15"></a><var>32.15</var>(5) advertisements in a Minnesota edition of a national or regional publication or <br/>
<a id="pl.32.16"></a><var>32.16</var>a limited regional edition in which this state is included as part of a broader regional or <br/>
<a id="pl.32.17"></a><var>32.17</var>national publication which are not placed in other geographically defined editions of the <br/>
<a id="pl.32.18"></a><var>32.18</var>same issue of the same publication;<br/>
<a id="pl.32.19"></a><var>32.19</var>(6) advertisements in regional or national publications in an edition which is not <br/>
<a id="pl.32.20"></a><var>32.20</var>by its contents geographically targeted to Minnesota but which is sold over the counter <br/>
<a id="pl.32.21"></a><var>32.21</var>in Minnesota or by subscription to Minnesota residents;<br/>
<a id="pl.32.22"></a><var>32.22</var>(7) advertisements broadcast on a radio or television station located in Minnesota; or<br/>
<a id="pl.32.23"></a><var>32.23</var>(8) any other solicitation by telegraphy, telephone, computer database, cable, optic, <br/>
<a id="pl.32.24"></a><var>32.24</var>microwave, or other communication system.;<br/>
<a id="pl.32.25"></a><var>32.25</var>(9) engaging in direct response marketing in this state, either directly or indirectly <br/>
<a id="pl.32.26"></a><var>32.26</var>through a marketplace provider or other third party. For purposes of this section, "direct <br/>
<a id="pl.32.27"></a><var>32.27</var>response marketing" includes but is not limited to the following:<br/>
<a id="pl.32.28"></a><var>32.28</var>(i) sending, transmitting, or broadcasting of flyers, newsletters, telephone calls, <br/>
<a id="pl.32.29"></a><var>32.29</var>targeted e-mail, text messages, social media messages, or targeted mailings;<br/>
<a id="pl.32.30"></a><var>32.30</var>(ii) collecting, analyzing, and utilizing individual data on purchasers or potential <br/>
<a id="pl.32.31"></a><var>32.31</var>purchasers in this state;<br/>
<a id="pl.32.32"></a><var>32.32</var>(iii) using information or software, including cached files, cached software, cookies, <br/>
<a id="pl.32.33"></a><var>32.33</var>or other data-tracking tools, that are stored in or distributed within this state; or<br/>
<a id="pl.32.34"></a><var>32.34</var>(iv) conducting any other actions that use persons, tangible property, intangibles, <br/>
<a id="pl.32.35"></a><var>32.35</var>digital files or information, or software in this state in an effort to enhance the probability <br/>
<a id="pl.32.36"></a><var>32.36</var>that a person's contact with a customer in this state will result in a sale to that customer;<br/>
<a id="pl.33.1"></a><var>33.1</var>(10) conducting any part of the sale process in the state, regardless of whether that <br/>
<a id="pl.33.2"></a><var>33.2</var>part of the process has been subcontracted to an affiliate or third party, including listing <br/>
<a id="pl.33.3"></a><var>33.3</var>products or services for sale, soliciting, branding products, selling products, processing <br/>
<a id="pl.33.4"></a><var>33.4</var>orders, fulfilling orders, providing customer service, or accepting or assisting with returns <br/>
<a id="pl.33.5"></a><var>33.5</var>or exchanges. The sale process does not include shipping via a common carrier; or<br/>
<a id="pl.33.6"></a><var>33.6</var>(11) offering its products for sale through one or more marketplaces operated by <br/>
<a id="pl.33.7"></a><var>33.7</var>any marketplace provider required to collect and remit sales and use taxes in this state <br/>
<a id="pl.33.8"></a><var>33.8</var>under this section.<br/>
<a id="pl.33.9"></a><var>33.9</var>This paragraph must be construed without regard to the state from which distribution <br/>
<a id="pl.33.10"></a><var>33.10</var>of the materials originated or in which they were prepared.<br/>
<a id="pl.33.11"></a><var>33.11</var>(c) The location within or without this state of independent vendors that provide <br/>
<a id="pl.33.12"></a><var>33.12</var>products or services to the retailer in connection with its solicitation of customers within this <br/>
<a id="pl.33.13"></a><var>33.13</var>state, including such products and services as creation of copy, printing, distribution, and <br/>
<a id="pl.33.14"></a><var>33.14</var>recording, is not considered in determining whether the retailer is required to collect tax.<br/>
<a id="pl.33.15"></a><var>33.15</var>(d) A retailer not maintaining a place of business in this state is presumed, subject to <br/>
<a id="pl.33.16"></a><var>33.16</var>rebuttal, to be engaged in regular solicitation within this state if it engages in any of the <br/>
<a id="pl.33.17"></a><var>33.17</var>activities in paragraph (b) and:<br/>
<a id="pl.33.18"></a><var>33.18</var>(1) makes 100 or more retail sales from outside this state to destinations in this state <br/>
<a id="pl.33.19"></a><var>33.19</var>during a period of 12 consecutive months; or<br/>
<a id="pl.33.20"></a><var>33.20</var>(2) makes ten or more retail sales totaling more than $100,000 from outside this state <br/>
<a id="pl.33.21"></a><var>33.21</var>to destinations in this state during a period of 12 consecutive months.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.33.22"></a><var>33.22</var>    Sec. 3. Minnesota Statutes 2014, section 297A.66, subdivision 4, is amended to read:<br/>
<a id="pl.33.23"></a><var>33.23</var>    Subd. 4. <b>Affiliated entities.</b> (a) An entity is an "affiliate" of the retailer for purposes <br/>
<a id="pl.33.24"></a><var>33.24</var>of subdivision 1, paragraph (a), if the entity is a related party to the retailer and meets <br/>
<a id="pl.33.25"></a><var>33.25</var>any of the following conditions:<br/>
<a id="pl.33.26"></a><var>33.26</var>(1) the entity uses its facilities or employees in this state to advertise, promote, or <br/>
<a id="pl.33.27"></a><var>33.27</var>facilitate the establishment or maintenance of a market for sales of items by the retailer <br/>
<a id="pl.33.28"></a><var>33.28</var>to purchasers in this state or for the provision of services to the retailer's purchasers in <br/>
<a id="pl.33.29"></a><var>33.29</var>this state, such as accepting returns of purchases for the retailer, providing assistance in <br/>
<a id="pl.33.30"></a><var>33.30</var>resolving customer complaints of the retailer, or providing other services; and<br/>
<a id="pl.33.31"></a><var>33.31</var>(2) the retailer and the entity are related parties. sells under the same or a similar <br/>
<a id="pl.33.32"></a><var>33.32</var>business name tangible personal property or taxable services similar to that sold by the <br/>
<a id="pl.33.33"></a><var>33.33</var>person against whom the presumption is asserted; <br/>
<a id="pl.33.34"></a><var>33.34</var>(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or <br/>
<a id="pl.33.35"></a><var>33.35</var>other similar place of business in this state to facilitate the delivery of tangible personal <br/>
<a id="pl.34.1"></a><var>34.1</var>property or taxable services sold by the person against whom the presumption is asserted <br/>
<a id="pl.34.2"></a><var>34.2</var>to that person's in-state customers; <br/>
<a id="pl.34.3"></a><var>34.3</var>(4) uses, with consent or knowledge of the person against whom the presumption <br/>
<a id="pl.34.4"></a><var>34.4</var>is asserted, trademarks, service marks, or trade names in this state that are the same or <br/>
<a id="pl.34.5"></a><var>34.5</var>substantially similar to those used by the person against whom the presumption is asserted; <br/>
<a id="pl.34.6"></a><var>34.6</var>(5) delivers, installs, or assembles tangible personal property in this state, or <br/>
<a id="pl.34.7"></a><var>34.7</var>performs maintenance or repair services on tangible personal property in this state, if the <br/>
<a id="pl.34.8"></a><var>34.8</var>tangible personal property is sold to in-state customers by the person against whom the <br/>
<a id="pl.34.9"></a><var>34.9</var>presumption is asserted;<br/>
<a id="pl.34.10"></a><var>34.10</var>(6) facilitates the delivery of tangible personal property to in-state customers of the <br/>
<a id="pl.34.11"></a><var>34.11</var>person against whom the presumption is asserted by allowing the customers to pick up <br/>
<a id="pl.34.12"></a><var>34.12</var>tangible personal property sold by the person at an office, distribution facility, salesroom, <br/>
<a id="pl.34.13"></a><var>34.13</var>warehouse, storage place, or other similar place of business maintained in this state; or<br/>
<a id="pl.34.14"></a><var>34.14</var>(7) shares management, business systems, business practices, or employees with the <br/>
<a id="pl.34.15"></a><var>34.15</var>person against whom the presumption is asserted, or engages in intercompany transactions <br/>
<a id="pl.34.16"></a><var>34.16</var>with the person against whom the presumption is asserted related to the activities that <br/>
<a id="pl.34.17"></a><var>34.17</var>establish or maintain the market in this state of the person against whom the presumption <br/>
<a id="pl.34.18"></a><var>34.18</var>is asserted.<br/>
<a id="pl.34.19"></a><var>34.19</var>(b) Two entities are related parties under this section if one of the entities meets at <br/>
<a id="pl.34.20"></a><var>34.20</var>least one of the following tests with respect to the other entity:<br/>
<a id="pl.34.21"></a><var>34.21</var>(1) one or both entities is a corporation, and one entity and any party related to that <br/>
<a id="pl.34.22"></a><var>34.22</var>entity in a manner that would require an attribution of stock from the corporation to the <br/>
<a id="pl.34.23"></a><var>34.23</var>party or from the party to the corporation under the attribution rules of section 318 of the <br/>
<a id="pl.34.24"></a><var>34.24</var>Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 <br/>
<a id="pl.34.25"></a><var>34.25</var>percent of the value of the corporation's outstanding stock;<br/>
<a id="pl.34.26"></a><var>34.26</var>(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary, <br/>
<a id="pl.34.27"></a><var>34.27</var>and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, <br/>
<a id="pl.34.28"></a><var>34.28</var>beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, <br/>
<a id="pl.34.29"></a><var>34.29</var>stock, or value of the other entity or both entities; or<br/>
<a id="pl.34.30"></a><var>34.30</var>(3) an individual stockholder and the members of the stockholder's family (as <br/>
<a id="pl.34.31"></a><var>34.31</var>defined in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, <br/>
<a id="pl.34.32"></a><var>34.32</var>or constructively, in the aggregate, at least 50 percent of the value of both entities' <br/>
<a id="pl.34.33"></a><var>34.33</var>outstanding stock.;<br/>
<a id="pl.34.34"></a><var>34.34</var>(4) the entities are related within the meaning of subsections (b) and (c) of section <br/>
<a id="pl.34.35"></a><var>34.35</var>267 or 707(b)(1) of the Internal Revenue Code; or<br/>
<a id="pl.35.1"></a><var>35.1</var>(5) the entities have one or more ownership relationships and the relationships were <br/>
<a id="pl.35.2"></a><var>35.2</var>designed with a principal purpose of avoiding the application of this section.<br/>
<a id="pl.35.3"></a><var>35.3</var>(c) An entity is an affiliate under the provisions of this subdivision if the requirements <br/>
<a id="pl.35.4"></a><var>35.4</var>of paragraphs (a) and (b) are met during any part of the 12-month period ending on the <br/>
<a id="pl.35.5"></a><var>35.5</var>first day of the month before the month in which the sale was made.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.35.6"></a><var>35.6</var>    Sec. 4. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision <br/>
<a id="pl.35.7"></a><var>35.7</var>to read:<br/>
<a id="pl.35.8"></a><var>35.8</var>    Subd. 4b. <b>Marketplace provider and marketplace seller.</b> (a) For purposes of <br/>
<a id="pl.35.9"></a><var>35.9</var>subdivisions 1, paragraph (a), and 4c, "marketplace provider" means any person who <br/>
<a id="pl.35.10"></a><var>35.10</var>facilitates a retail sale by a seller. A marketplace provider facilitates a retail sale when <br/>
<a id="pl.35.11"></a><var>35.11</var>the marketplace provider:<br/>
<a id="pl.35.12"></a><var>35.12</var>(1) lists or advertises in any forum tangible personal property for sale or taxable <br/>
<a id="pl.35.13"></a><var>35.13</var>services for sale; and<br/>
<a id="pl.35.14"></a><var>35.14</var>(2) either directly or indirectly through agreements or arrangements with third parties <br/>
<a id="pl.35.15"></a><var>35.15</var>collects payment from the customer and transmits that payment to a seller, regardless <br/>
<a id="pl.35.16"></a><var>35.16</var>of whether the marketplace provider receives compensation or other consideration in <br/>
<a id="pl.35.17"></a><var>35.17</var>exchange for its services.<br/>
<a id="pl.35.18"></a><var>35.18</var>(b) "Marketplace seller" means a seller that has any sales facilitated by a marketplace <br/>
<a id="pl.35.19"></a><var>35.19</var>provider.<br/>
<a id="pl.35.20"></a><var>35.20</var>(c) A seller is presumed to have a marketplace provider in this state if the seller <br/>
<a id="pl.35.21"></a><var>35.21</var>enters into an agreement with a marketplace provider that maintains a place of business in <br/>
<a id="pl.35.22"></a><var>35.22</var>the state for the facilitation of retail sales.<br/>
<a id="pl.35.23"></a><var>35.23</var>(d) This subdivision applies only if the seller's total gross receipts are at least <br/>
<a id="pl.35.24"></a><var>35.24</var>$10,000 in the 12-month period ending on the last day of the most recent calendar quarter <br/>
<a id="pl.35.25"></a><var>35.25</var>before the calendar quarter in which the sale is made. For purposes of this paragraph, <br/>
<a id="pl.35.26"></a><var>35.26</var>"gross receipts" means receipts from sales to customers located in the state that were <br/>
<a id="pl.35.27"></a><var>35.27</var>facilitated by the marketplace provider.<br/>
<a id="pl.35.28"></a><var>35.28</var>(e) Nothing in this subdivision shall be construed to narrow the scope of the terms <br/>
<a id="pl.35.29"></a><var>35.29</var>affiliate, agent, salesperson, canvasser, solicitor, or other representative for purposes <br/>
<a id="pl.35.30"></a><var>35.30</var>of subdivision 1, paragraph (a).<br/>
<a id="pl.35.31"></a><var>35.31</var>(f) This subdivision does not apply to chapter 290 and does not expand or contract <br/>
<a id="pl.35.32"></a><var>35.32</var>the jurisdiction to tax a trade or business under chapter 290.<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.35.33"></a><var>35.33</var>    Sec. 5. Minnesota Statutes 2014, section 297A.66, is amended by adding a subdivision <br/>
<a id="pl.35.34"></a><var>35.34</var>to read:<br/>
<a id="pl.36.1"></a><var>36.1</var>    Subd. 4c. <b>Collection and remittance requirements for marketplace providers </b><br/>
<a id="pl.36.2"></a><var>36.2</var><b>and marketplace sellers.</b> (a) A marketplace provider that facilitates sales to customers <br/>
<a id="pl.36.3"></a><var>36.3</var>in this state shall collect sales and use taxes and remit them to the commissioner under <br/>
<a id="pl.36.4"></a><var>36.4</var>section 297A.77.<br/>
<a id="pl.36.5"></a><var>36.5</var>(b) The requirement under paragraph (a) does not apply to a marketplace provider if <br/>
<a id="pl.36.6"></a><var>36.6</var>the marketplace seller for whom the marketplace provider facilitates a sale either:<br/>
<a id="pl.36.7"></a><var>36.7</var>(1) provides a copy of the seller's registration to collect sales and use tax in this state <br/>
<a id="pl.36.8"></a><var>36.8</var>to the marketplace provider before the marketplace provider facilitates a sale; or<br/>
<a id="pl.36.9"></a><var>36.9</var>(2) the marketplace seller appears on a list published by the commissioner of revenue <br/>
<a id="pl.36.10"></a><var>36.10</var>of the entities registered to collect sales and use taxes in this state.<br/>
<a id="pl.36.11"></a><var>36.11</var>(c) The commissioner of revenue shall promulgate regulations regarding the content <br/>
<a id="pl.36.12"></a><var>36.12</var>and publication of the list under paragraph (b), clause (2). Nothing in this subdivision <br/>
<a id="pl.36.13"></a><var>36.13</var>shall be construed to interfere with the ability of a marketplace provider and a marketplace <br/>
<a id="pl.36.14"></a><var>36.14</var>seller to enter into an agreement regarding fulfillment of the requirements of this chapter.<br/>
<a id="pl.36.15"></a><var>36.15</var>(d) A marketplace provider is relieved of liability under this subdivision for failure <br/>
<a id="pl.36.16"></a><var>36.16</var>to collect and remit sales and use taxes to the extent that the marketplace provider <br/>
<a id="pl.36.17"></a><var>36.17</var>demonstrates that the error was due to incorrect or insufficient information given to the <br/>
<a id="pl.36.18"></a><var>36.18</var>marketplace provider by the marketplace seller. This paragraph does not apply if the <br/>
<a id="pl.36.19"></a><var>36.19</var>marketplace provider and the marketplace seller are related as defined in subdivision 4, <br/>
<a id="pl.36.20"></a><var>36.20</var>paragraph (b).<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.36.21"></a><var>36.21</var>    Sec. 6. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision <br/>
<a id="pl.36.22"></a><var>36.22</var>to read:<br/>
<a id="pl.36.23"></a><var>36.23</var>    Subd. 49. <b>Siding production facility materials.</b> Building materials and supplies <br/>
<a id="pl.36.24"></a><var>36.24</var>for constructing a siding production facility that can produce at least 400,000,000 square <br/>
<a id="pl.36.25"></a><var>36.25</var>feet of siding per year are exempt. The tax must be imposed and collected as if the rate <br/>
<a id="pl.36.26"></a><var>36.26</var>under section 297A.62, subdivision 1, applied, and then refunded in the manner provided <br/>
<a id="pl.36.27"></a><var>36.27</var>in section 297A.75.<br/>
<a id="pl.36.28"></a><var>36.28</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.36.29"></a><var>36.29</var>June 30, 2016.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.36.30"></a><var>36.30</var>    Sec. 7. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision <br/>
<a id="pl.36.31"></a><var>36.31</var>to read:<br/>
<a id="pl.36.32"></a><var>36.32</var>    Subd. 50. <b>Properties destroyed by fire.</b> Building materials, equipment, and <br/>
<a id="pl.36.33"></a><var>36.33</var>supplies for constructing or replacing real property that is located in Madelia affected by <br/>
<a id="pl.36.34"></a><var>36.34</var>the fire on February 3, 2016, are exempt. The tax must be imposed and collected as if <br/>
<a id="pl.37.1"></a><var>37.1</var>the rate under section 297A.62, subdivision 1, applied and then refunded in the manner <br/>
<a id="pl.37.2"></a><var>37.2</var>provided in section 297A.75. <br/>
<a id="pl.37.3"></a><var>37.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.37.4"></a><var>37.4</var>June 30, 2016, and before July 1, 2018.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.37.5"></a><var>37.5</var>    Sec. 8. Minnesota Statutes 2014, section 297A.71, is amended by adding a subdivision <br/>
<a id="pl.37.6"></a><var>37.6</var>to read:<br/>
<a id="pl.37.7"></a><var>37.7</var>    Subd. 51. <b>Former Duluth Central High School.</b> Materials and supplies used <br/>
<a id="pl.37.8"></a><var>37.8</var>in and equipment incorporated into a private redevelopment project on the site of the <br/>
<a id="pl.37.9"></a><var>37.9</var>former Duluth Central High School are exempt, provided the resulting development is <br/>
<a id="pl.37.10"></a><var>37.10</var>subject to property taxes. The tax must be imposed and collected as if the rate under <br/>
<a id="pl.37.11"></a><var>37.11</var>section 297A.62, subdivision 1, applied and then refunded in the manner provided in <br/>
<a id="pl.37.12"></a><var>37.12</var>section 297A.75. The commissioner must not pay more than $5,000,000 in refunds for <br/>
<a id="pl.37.13"></a><var>37.13</var>purchases exempt under this section. Refunds must be processed and issued in the order <br/>
<a id="pl.37.14"></a><var>37.14</var>that complete and accurate applications are received by the commissioner.<br/>
<a id="pl.37.15"></a><var>37.15</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.37.16"></a><var>37.16</var>June 30, 2016, and before January 1, 2018.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.37.17"></a><var>37.17</var>    Sec. 9. Minnesota Statutes 2014, section 297A.75, subdivision 1, is amended to read:<br/>
<a id="pl.37.18"></a><var>37.18</var>    Subdivision 1. <b>Tax collected.</b> The tax on the gross receipts from the sale of the <br/>
<a id="pl.37.19"></a><var>37.19</var>following exempt items must be imposed and collected as if the sale were taxable and the <br/>
<a id="pl.37.20"></a><var>37.20</var>rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied. The exempt items include:<br/>
<a id="pl.37.21"></a><var>37.21</var>    (1) building materials for an agricultural processing facility exempt under section <br/>
<statute_ref><a id="pl.37.22"></a><var>37.22</var>297A.71, subdivision 13
         </statute_ref>;<br/>
<a id="pl.37.23"></a><var>37.23</var>    (2) building materials for mineral production facilities exempt under section <br/>
<statute_ref><a id="pl.37.24"></a><var>37.24</var>297A.71, subdivision 14
         </statute_ref>;<br/>
<a id="pl.37.25"></a><var>37.25</var>    (3) building materials for correctional facilities under section 
         <statute_ref>297A.71, subdivision 3</statute_ref>;<br/>
<a id="pl.37.26"></a><var>37.26</var>    (4) building materials used in a residence for disabled veterans exempt under section <br/>
<statute_ref><a id="pl.37.27"></a><var>37.27</var>297A.71, subdivision 11
         </statute_ref>;<br/>
<a id="pl.37.28"></a><var>37.28</var>    (5) elevators and building materials exempt under section 
         <statute_ref>297A.71, subdivision 12</statute_ref>;<br/>
<a id="pl.37.29"></a><var>37.29</var>    (6) materials and supplies for qualified low-income housing under section 
         <statute_ref>297A.71, <br/>
<a id="pl.37.30"></a><var>37.30</var>subdivision 23
         </statute_ref>;<br/>
<a id="pl.37.31"></a><var>37.31</var>    (7) materials, supplies, and equipment for municipal electric utility facilities under <br/>
<a id="pl.37.32"></a><var>37.32</var>section 
         <statute_ref>297A.71, subdivision 35</statute_ref>;<br/>
<a id="pl.38.1"></a><var>38.1</var>    (8) equipment and materials used for the generation, transmission, and distribution <br/>
<a id="pl.38.2"></a><var>38.2</var>of electrical energy and an aerial camera package exempt under section 
         <statute_ref>297A.68</statute_ref>, <br/>
<a id="pl.38.3"></a><var>38.3</var>subdivision 37;<br/>
<a id="pl.38.4"></a><var>38.4</var>    (9) commuter rail vehicle and repair parts under section 
         <statute_ref>297A.70</statute_ref>, subdivision 3, <br/>
<a id="pl.38.5"></a><var>38.5</var>paragraph (a), clause (10);<br/>
<a id="pl.38.6"></a><var>38.6</var>    (10) materials, supplies, and equipment for construction or improvement of projects <br/>
<a id="pl.38.7"></a><var>38.7</var>and facilities under section 
         <statute_ref>297A.71, subdivision 40</statute_ref>;<br/>
<a id="pl.38.8"></a><var>38.8</var>(11) materials, supplies, and equipment for construction, improvement, or expansion <br/>
<a id="pl.38.9"></a><var>38.9</var>of:<br/>
<a id="pl.38.10"></a><var>38.10</var>(i) an aerospace defense manufacturing facility exempt under section 
         <statute_ref>297A.71, <br/>
<a id="pl.38.11"></a><var>38.11</var>subdivision 42
         </statute_ref>;<br/>
<a id="pl.38.12"></a><var>38.12</var>(ii) a biopharmaceutical manufacturing facility exempt under section 
         <statute_ref>297A.71, <br/>
<a id="pl.38.13"></a><var>38.13</var>subdivision 45
         </statute_ref>;<br/>
<a id="pl.38.14"></a><var>38.14</var>(iii) a research and development facility exempt under section 
         <statute_ref>297A.71, subdivision <br/>
<a id="pl.38.15"></a><var>38.15</var>46
         </statute_ref>; and<br/>
<a id="pl.38.16"></a><var>38.16</var>(iv) an industrial measurement manufacturing and controls facility exempt under <br/>
<a id="pl.38.17"></a><var>38.17</var>section 
         <statute_ref>297A.71, subdivision 47</statute_ref>;<br/>
<a id="pl.38.18"></a><var>38.18</var>(12) enterprise information technology equipment and computer software for use in <br/>
<a id="pl.38.19"></a><var>38.19</var>a qualified data center exempt under section 
         <statute_ref>297A.68, subdivision 42</statute_ref>;<br/>
<a id="pl.38.20"></a><var>38.20</var>(13) materials, supplies, and equipment for qualifying capital projects under section <br/>
<statute_ref><a id="pl.38.21"></a><var>38.21</var>297A.71, subdivision 44
         </statute_ref>;<br/>
<a id="pl.38.22"></a><var>38.22</var>(14) items purchased for use in providing critical access dental services exempt <br/>
<a id="pl.38.23"></a><var>38.23</var>under section 
         <statute_ref>297A.70, subdivision 7</statute_ref>, paragraph (c); and<br/>
<a id="pl.38.24"></a><var>38.24</var>(15) items and services purchased under a business subsidy agreement for use or <br/>
<a id="pl.38.25"></a><var>38.25</var>consumption primarily in greater Minnesota exempt under section 
         <statute_ref>297A.68, subdivision 44</statute_ref>;<br/>
<a id="pl.38.26"></a><var>38.26</var>(16) building materials and supplies for constructing a siding facility exempt under <br/>
<a id="pl.38.27"></a><var>38.27</var>section 297A.71, subdivision 49;<br/>
<a id="pl.38.28"></a><var>38.28</var>(17) building materials, equipment, and supplies for constructing or replacing real <br/>
<a id="pl.38.29"></a><var>38.29</var>property exempt under section 297A.71, subdivision 50; and<br/>
<a id="pl.38.30"></a><var>38.30</var>(18) materials and supplies used in and equipment incorporated into a private <br/>
<a id="pl.38.31"></a><var>38.31</var>redevelopment project exempt under section 297A.71, subdivision 51.<br/>
<a id="pl.38.32"></a><var>38.32</var><b>EFFECTIVE DATE.</b>Clause (16) is effective for sales and purchases made after <br/>
<a id="pl.38.33"></a><var>38.33</var>June 30, 2016. Clause (17) is effective for sales and purchases made after June 30, 2016, <br/>
<a id="pl.38.34"></a><var>38.34</var>and before July 1, 2018. Clause (18) is effective for sales and purchases made after June <br/>
<a id="pl.38.35"></a><var>38.35</var>30, 2016, and before January 1, 2018.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.39.1"></a><var>39.1</var>    Sec. 10. Minnesota Statutes 2014, section 297A.75, subdivision 2, is amended to read:<br/>
<a id="pl.39.2"></a><var>39.2</var>    Subd. 2. <b>Refund; eligible persons.</b> Upon application on forms prescribed by the <br/>
<a id="pl.39.3"></a><var>39.3</var>commissioner, a refund equal to the tax paid on the gross receipts of the exempt items <br/>
<a id="pl.39.4"></a><var>39.4</var>must be paid to the applicant. Only the following persons may apply for the refund:<br/>
<a id="pl.39.5"></a><var>39.5</var>    (1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;<br/>
<a id="pl.39.6"></a><var>39.6</var>    (2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;<br/>
<a id="pl.39.7"></a><var>39.7</var>    (3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits <br/>
<a id="pl.39.8"></a><var>39.8</var>provided in United States Code, title 38, chapter 21;<br/>
<a id="pl.39.9"></a><var>39.9</var>    (4) for subdivision 1, clause (5), the applicant must be the owner of the homestead <br/>
<a id="pl.39.10"></a><var>39.10</var>property;<br/>
<a id="pl.39.11"></a><var>39.11</var>    (5) for subdivision 1, clause (6), the owner of the qualified low-income housing <br/>
<a id="pl.39.12"></a><var>39.12</var>project;<br/>
<a id="pl.39.13"></a><var>39.13</var>    (6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or <br/>
<a id="pl.39.14"></a><var>39.14</var>a joint venture of municipal electric utilities;<br/>
<a id="pl.39.15"></a><var>39.15</var>    (7) for subdivision 1, clauses (8), (11), (12), and (15), and (16), the owner of the <br/>
<a id="pl.39.16"></a><var>39.16</var>qualifying business; and<br/>
<a id="pl.39.17"></a><var>39.17</var>    (8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the <br/>
<a id="pl.39.18"></a><var>39.18</var>governmental entity that owns or contracts for the project or facility; and<br/>
<a id="pl.39.19"></a><var>39.19</var>    (9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or <br/>
<a id="pl.39.20"></a><var>39.20</var>developer of the building or project.<br/>
<a id="pl.39.21"></a><var>39.21</var><b>EFFECTIVE DATE.</b>The change to clause (7) is effective for sales and purchases <br/>
<a id="pl.39.22"></a><var>39.22</var>made after June 30, 2016. Clause (9) is effective for sales and purchases made after June <br/>
<a id="pl.39.23"></a><var>39.23</var>30, 2016, and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, <br/>
<a id="pl.39.24"></a><var>39.24</var>subdivision 1, clause (17), and for sales and purchases made after June 30, 2016, and <br/>
<a id="pl.39.25"></a><var>39.25</var>before January 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision <br/>
<a id="pl.39.26"></a><var>39.26</var>1, clause (18).<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.39.27"></a><var>39.27</var>    Sec. 11. Minnesota Statutes 2014, section 297A.75, subdivision 3, is amended to read:<br/>
<a id="pl.39.28"></a><var>39.28</var>    Subd. 3. <b>Application.</b> (a) The application must include sufficient information <br/>
<a id="pl.39.29"></a><var>39.29</var>to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, <br/>
<a id="pl.39.30"></a><var>39.30</var>subcontractor, or builder, under subdivision 1, clauses (3) to (13), or (15), to (18), the <br/>
<a id="pl.39.31"></a><var>39.31</var>contractor, subcontractor, or builder must furnish to the refund applicant a statement <br/>
<a id="pl.39.32"></a><var>39.32</var>including the cost of the exempt items and the taxes paid on the items unless otherwise <br/>
<a id="pl.39.33"></a><var>39.33</var>specifically provided by this subdivision. The provisions of sections 
         <statute_ref>289A.40</statute_ref> and <br/>
<statute_ref><a id="pl.39.34"></a><var>39.34</var>289A.50
         </statute_ref> apply to refunds under this section.<br/>
<a id="pl.40.1"></a><var>40.1</var>    (b) An applicant may not file more than two applications per calendar year for <br/>
<a id="pl.40.2"></a><var>40.2</var>refunds for taxes paid on capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>.<br/>
<a id="pl.40.3"></a><var>40.3</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br/>
<a id="pl.40.4"></a><var>40.4</var>June 30, 2016.<br/>
<br/>
<a id="bill.2.12.0"></a><a id="pl.40.5"></a><var>40.5</var>    Sec. 12. <b>SEVERABILITY.</b><br/>
<a id="pl.40.6"></a><var>40.6</var>If any provision of sections 1 to 5 or 13 or the application thereof is held invalid, <br/>
<a id="pl.40.7"></a><var>40.7</var>such invalidity shall not affect the provisions or applications of the sections which can be <br/>
<a id="pl.40.8"></a><var>40.8</var>given effect without the invalid provisions or applications.<br/>
<a id="pl.40.9"></a><var>40.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.2.13.0"></a><a id="pl.40.10"></a><var>40.10</var>    Sec. 13. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.40.11"></a><var>40.11</var>(a) The provisions of sections 1 to 5 of this article are effective upon a decision by <br/>
<a id="pl.40.12"></a><var>40.12</var>the United States Supreme Court overturning or expanding its decision in Quill Corp. v. <br/>
<a id="pl.40.13"></a><var>40.13</var>North Dakota, 504 U.S. 298 (1992), allowing a state to require retailers without a physical <br/>
<a id="pl.40.14"></a><var>40.14</var>presence in the state to collect and remit sales tax.<br/>
<a id="pl.40.15"></a><var>40.15</var>(b) Notwithstanding paragraph (a) or the provisions of sections 1 to 5, if a federal <br/>
<a id="pl.40.16"></a><var>40.16</var>law is enacted authorizing a state to impose a requirement to collect and remit sales tax <br/>
<a id="pl.40.17"></a><var>40.17</var>on retailers without a physical presence in the state, the commissioner must enforce the <br/>
<a id="pl.40.18"></a><var>40.18</var>provisions of this section and sections 1 to 5 to the extent allowed under federal law.<br/>
<a id="pl.40.19"></a><var>40.19</var>(c) The commissioner of revenue shall notify the revisor of statutes when either of <br/>
<a id="pl.40.20"></a><var>40.20</var>the provisions in paragraphs (a) or (b) apply.<br/>
<br/>
<a id="bill.3.0.0"></a>

<a id="bill.3.1.0"></a><a id="pl.40.23"></a><var>40.23</var>    Section 1. <b>[216B.1647] PROPERTY TAX ADJUSTMENT; COOPERATIVE </b><br/>
<a id="pl.40.24"></a><var>40.24</var><b>ASSOCIATION.</b><br/>
<a id="pl.40.25"></a><var>40.25</var>A cooperative electric association that has elected to be subject to rate regulation <br/>
<a id="pl.40.26"></a><var>40.26</var>under section 216B.026 is eligible to file with the commission for approval of an <br/>
<a id="pl.40.27"></a><var>40.27</var>adjustment for real and personal property taxes, fees, and permits.<br/>
<a id="pl.40.28"></a><var>40.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.2.0"></a><a id="pl.40.29"></a><var>40.29</var>    Sec. 2. Minnesota Statutes 2014, section 272.162, is amended to read:<br/>
<a id="pl.40.30"></a><var>40.30</var><b>272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.</b><br/>
<a id="pl.41.1"></a><var>41.1</var>    Subdivision 1. <b>Conditions restricting transfer.</b> When a deed or other instrument <br/>
<a id="pl.41.2"></a><var>41.2</var>conveying a parcel of land is presented to the county auditor for transfer or division under <br/>
<a id="pl.41.3"></a><var>41.3</var>sections 
         <statute_ref>272.12</statute_ref>, 
         <statute_ref>272.16</statute_ref>, and 
         <statute_ref>272.161</statute_ref>, the auditor shall not transfer or divide the land or its <br/>
<a id="pl.41.4"></a><var>41.4</var>net tax capacity in the official records and shall not certify the instrument as provided in <br/>
<a id="pl.41.5"></a><var>41.5</var>section 
         <statute_ref>272.12</statute_ref>, if:<br/>
<a id="pl.41.6"></a><var>41.6</var>(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;<br/>
<a id="pl.41.7"></a><var>41.7</var>(b) The part conveyed appears within the area of application of municipal or <br/>
<a id="pl.41.8"></a><var>41.8</var>county subdivision regulations adopted and filed under section 394.35 or section 
         <statute_ref>462.36, <br/>
<a id="pl.41.9"></a><var>41.9</var>subdivision 1
         </statute_ref>; and<br/>
<a id="pl.41.10"></a><var>41.10</var>(c) The part conveyed is part of or constitutes a subdivision as defined in section <br/>
<statute_ref><a id="pl.41.11"></a><var>41.11</var>462.352, subdivision 12
         </statute_ref>.<br/>
<a id="pl.41.12"></a><var>41.12</var>    Subd. 2. <b>Conditions allowing transfer.</b> (a) Notwithstanding the provisions of <br/>
<a id="pl.41.13"></a><var>41.13</var>subdivision 1, the county auditor may transfer or divide the land and its net tax capacity <br/>
<a id="pl.41.14"></a><var>41.14</var>and may certify the instrument if the instrument contains a certification by the clerk of <br/>
<a id="pl.41.15"></a><var>41.15</var>the municipality or designated county planning official:<br/>
<a id="pl.41.16"></a><var>41.16</var>(a) (1) that the municipality's or county's subdivision regulations do not apply;<br/>
<a id="pl.41.17"></a><var>41.17</var>(b) (2) that the subdivision has been approved by the governing body of the <br/>
<a id="pl.41.18"></a><var>41.18</var>municipality or county; or<br/>
<a id="pl.41.19"></a><var>41.19</var>(c) (3) that the restrictions on the division of taxes and filing and recording have <br/>
<a id="pl.41.20"></a><var>41.20</var>been waived by resolution of the governing body of the municipality or county in the <br/>
<a id="pl.41.21"></a><var>41.21</var>particular case because compliance would create an unnecessary hardship and failure to <br/>
<a id="pl.41.22"></a><var>41.22</var>comply would not interfere with the purpose of the regulations.<br/>
<a id="pl.41.23"></a><var>41.23</var>(b) If any of the conditions for certification by the municipality or county as provided <br/>
<a id="pl.41.24"></a><var>41.24</var>in this subdivision exist and the municipality or county does not certify that they exist <br/>
<a id="pl.41.25"></a><var>41.25</var>within 24 hours after the instrument of conveyance has been presented to the clerk of <br/>
<a id="pl.41.26"></a><var>41.26</var>the municipality or designated county planning official, the provisions of subdivision 1 <br/>
<a id="pl.41.27"></a><var>41.27</var>do not apply.<br/>
<a id="pl.41.28"></a><var>41.28</var>(c) If an unexecuted instrument is presented to the municipality or county and <br/>
<a id="pl.41.29"></a><var>41.29</var>any of the conditions for certification by the municipality or county as provided in <br/>
<a id="pl.41.30"></a><var>41.30</var>this subdivision exist, the unexecuted instrument must be certified by the clerk of the <br/>
<a id="pl.41.31"></a><var>41.31</var>municipality or the designated county planning official.<br/>
<a id="pl.41.32"></a><var>41.32</var>    Subd. 3. <b>Applicability of restrictions.</b> (a) This section does not apply to the <br/>
<a id="pl.41.33"></a><var>41.33</var>exceptions set forth in section 
         <statute_ref>272.12</statute_ref>.<br/>
<a id="pl.41.34"></a><var>41.34</var>(b) This section applies only to land within municipalities or counties which choose <br/>
<a id="pl.41.35"></a><var>41.35</var>to be governed by its provisions. A municipality or county may choose to have this <br/>
<a id="pl.41.36"></a><var>41.36</var>section apply to the property within its boundaries by filing a certified copy of a resolution <br/>
<a id="pl.42.1"></a><var>42.1</var>of its governing body making that choice with the auditor and recorder of the county in <br/>
<a id="pl.42.2"></a><var>42.2</var>which it is located.<br/>
<a id="pl.42.3"></a><var>42.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.3.0"></a><a id="pl.42.4"></a><var>42.4</var>    Sec. 3. <b>[469.501] STATE GENERAL TAX REFUND.</b><br/>
<a id="pl.42.5"></a><var>42.5</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.42.6"></a><var>42.6</var>have the meanings given them.<br/>
<a id="pl.42.7"></a><var>42.7</var>(b) "Commissioner" means the commissioner of employment and economic <br/>
<a id="pl.42.8"></a><var>42.8</var>development.<br/>
<a id="pl.42.9"></a><var>42.9</var>(c) "Job creation zone" means an area including one or more contiguous census <br/>
<a id="pl.42.10"></a><var>42.10</var>tracts, as determined and measured by the United States Census Bureau, where the <br/>
<a id="pl.42.11"></a><var>42.11</var>unemployment rate average is at least 75 percent higher than the statewide average <br/>
<a id="pl.42.12"></a><var>42.12</var>unemployment rate as estimated by the United States Census Bureau using data collected <br/>
<a id="pl.42.13"></a><var>42.13</var>in the most recent American Community Survey.<br/>
<a id="pl.42.14"></a><var>42.14</var>(d) "Employee" and "wages" have the meanings given in section 290.92, subdivision <br/>
<a id="pl.42.15"></a><var>42.15</var>1.<br/>
<a id="pl.42.16"></a><var>42.16</var>    Subd. 2. <b>Eligible business.</b> (a) An eligible business located within the seven-county <br/>
<a id="pl.42.17"></a><var>42.17</var>metropolitan area, or located outside the seven-county metropolitan area but in a city with <br/>
<a id="pl.42.18"></a><var>42.18</var>a population greater than 40,000, is an employer that: (1) is located in a job creation zone <br/>
<a id="pl.42.19"></a><var>42.19</var>as defined in subdivision 1; (2) pays at least 50 percent of the business's total wages to <br/>
<a id="pl.42.20"></a><var>42.20</var>employees who reside either within the job creation zone where the business is located or <br/>
<a id="pl.42.21"></a><var>42.21</var>any contiguous census tract; and (3) is a for-profit business.<br/>
<a id="pl.42.22"></a><var>42.22</var>(b) An eligible business located outside the seven-county metropolitan area and in a <br/>
<a id="pl.42.23"></a><var>42.23</var>city or township with a population less than 40,000 is an employer that: (1) pays at least <br/>
<a id="pl.42.24"></a><var>42.24</var>50 percent of the business's total wages to employees who reside in any job creation <br/>
<a id="pl.42.25"></a><var>42.25</var>zone not located in either the seven-county metropolitan area or in a city located outside <br/>
<a id="pl.42.26"></a><var>42.26</var>the seven-county metropolitan area with a population greater than 40,000; and (2) is a <br/>
<a id="pl.42.27"></a><var>42.27</var>for-profit business.<br/>
<a id="pl.42.28"></a><var>42.28</var>(c) If a business received a refund under this section in the immediately preceding <br/>
<a id="pl.42.29"></a><var>42.29</var>year, but does not qualify for a refund in the current year because the business is located <br/>
<a id="pl.42.30"></a><var>42.30</var>in an area that no longer meets the requirements of a job creation zone, as defined in <br/>
<a id="pl.42.31"></a><var>42.31</var>subdivision 1, the business may apply for a onetime refund in the current year equal to <br/>
<a id="pl.42.32"></a><var>42.32</var>one-half the amount of the refund issued to the business in the immediately preceding <br/>
<a id="pl.42.33"></a><var>42.33</var>year. A business that relocates outside of a job creation zone shall not be eligible for a <br/>
<a id="pl.42.34"></a><var>42.34</var>refund under this paragraph.<br/>
<a id="pl.43.1"></a><var>43.1</var>    Subd. 3. <b>Refund; authorized.</b> The commissioner may approve an application for a <br/>
<a id="pl.43.2"></a><var>43.2</var>refund of the state general tax paid under section 275.025 applicable to that portion of <br/>
<a id="pl.43.3"></a><var>43.3</var>the property occupied by an eligible business. The owner of an eligible business must <br/>
<a id="pl.43.4"></a><var>43.4</var>apply annually to the commissioner by July 1 of each year on a form prescribed by the <br/>
<a id="pl.43.5"></a><var>43.5</var>commissioner in order to receive a refund for that year. Upon approval, the commissioner <br/>
<a id="pl.43.6"></a><var>43.6</var>shall notify the commissioner of revenue by September 1. The refund is equal to the state <br/>
<a id="pl.43.7"></a><var>43.7</var>general tax payable on the property where the eligible business is located multiplied by a <br/>
<a id="pl.43.8"></a><var>43.8</var>ratio, the numerator of which is the area of the property occupied by the eligible business <br/>
<a id="pl.43.9"></a><var>43.9</var>and the denominator of which is the total area of the property where the business is <br/>
<a id="pl.43.10"></a><var>43.10</var>located. The commissioner of revenue shall pay the amount determined under this section <br/>
<a id="pl.43.11"></a><var>43.11</var>to the eligible business owner by December 1.<br/>
<a id="pl.43.12"></a><var>43.12</var>    Subd. 4. <b>Appropriation.</b> The amount necessary to make the refunds under this <br/>
<a id="pl.43.13"></a><var>43.13</var>section is appropriated annually from the general fund to the commissioner of revenue.<br/>
<a id="pl.43.14"></a><var>43.14</var>    Subd. 5. <b>Report.</b> By January 15, 2023, the commissioner of employment and <br/>
<a id="pl.43.15"></a><var>43.15</var>economic development must provide a written report to the chairs and ranking minority <br/>
<a id="pl.43.16"></a><var>43.16</var>members of the legislative committees with jurisdiction over taxes and employment <br/>
<a id="pl.43.17"></a><var>43.17</var>including information regarding the refunds issued under this section. The report must <br/>
<a id="pl.43.18"></a><var>43.18</var>include, at a minimum, the number of refunds issued, the amount of each refund, the <br/>
<a id="pl.43.19"></a><var>43.19</var>identification and location of each business that received a refund, and employment data <br/>
<a id="pl.43.20"></a><var>43.20</var>used to determine eligibility under this section. The report must comply with sections <br/>
<a id="pl.43.21"></a><var>43.21</var>3.195 and 3.197.<br/>
<a id="pl.43.22"></a><var>43.22</var>    Subd. 6. <b>Sunset.</b> This section applies to refunds for state general tax payments made <br/>
<a id="pl.43.23"></a><var>43.23</var>for taxes payable in 2016 through taxes payable in 2026.<br/>
<a id="pl.43.24"></a><var>43.24</var><b>EFFECTIVE DATE.</b>This section is effective for applications filed in calendar year <br/>
<a id="pl.43.25"></a><var>43.25</var>2016 for refunds of the state general tax payable in 2016 through 2026.<br/>
<br/>
<a id="bill.3.4.0"></a><a id="pl.43.26"></a><var>43.26</var>    Sec. 4. Minnesota Statutes 2014, section 473.39, is amended by adding a subdivision <br/>
<a id="pl.43.27"></a><var>43.27</var>to read:<br/>
<a id="pl.43.28"></a><var>43.28</var>    Subd. 1u. <b>Obligations.</b> (a) In addition to other authority in this section, the council <br/>
<a id="pl.43.29"></a><var>43.29</var>may issue certificates of indebtedness, bonds, or other obligations under this section in an <br/>
<a id="pl.43.30"></a><var>43.30</var>amount not exceeding $82,100,000 for capital expenditures as prescribed in the council's <br/>
<a id="pl.43.31"></a><var>43.31</var>transit capital improvement program and for related costs, including the costs of issuance <br/>
<a id="pl.43.32"></a><var>43.32</var>and sale of the obligations. Of this authorization, after July 1, 2016, the council may <br/>
<a id="pl.43.33"></a><var>43.33</var>issue certificates of indebtedness, bonds, or other obligations in an amount not exceeding <br/>
<a id="pl.43.34"></a><var>43.34</var>$40,100,000, and after July 1, 2017, the council may issue certificates of indebtedness, <br/>
<a id="pl.43.35"></a><var>43.35</var>bonds, or other obligations in an additional amount not exceeding $42,000,000.<br/>
<a id="pl.44.1"></a><var>44.1</var>(b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin, <br/>
<a id="pl.44.2"></a><var>44.2</var>Ramsey, Scott, and Washington.<br/>
<a id="pl.44.3"></a><var>44.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.5.0"></a><a id="pl.44.4"></a><var>44.4</var>    Sec. 5. <b>[477A.21] RIPARIAN PROTECTION AID.</b><br/>
<a id="pl.44.5"></a><var>44.5</var>    Subdivision 1. <b>Definitions.</b> (a) When used in this section, the following terms have <br/>
<a id="pl.44.6"></a><var>44.6</var>the meanings given them in this subdivision.<br/>
<a id="pl.44.7"></a><var>44.7</var>(b) "Public water basins" has the meaning provided in section 103G.005, subdivision <br/>
<a id="pl.44.8"></a><var>44.8</var>15, clauses (1) to (8) and (11).<br/>
<a id="pl.44.9"></a><var>44.9</var>(c) "Public watercourses" has the meaning provided in section 103G.005, <br/>
<a id="pl.44.10"></a><var>44.10</var>subdivision 15, clauses (9) and (10).<br/>
<a id="pl.44.11"></a><var>44.11</var>    Subd. 2. <b>Distribution.</b> (a) Each county is eligible to receive aid under this section to <br/>
<a id="pl.44.12"></a><var>44.12</var>enforce and implement the riparian protection and water quality practices under section <br/>
<a id="pl.44.13"></a><var>44.13</var>103F.48. Aid to each county shall equal: (1) each county's share of the total number of <br/>
<a id="pl.44.14"></a><var>44.14</var>acres in the state classified as class 2a under section 273.13, subdivision 23, divided by <br/>
<a id="pl.44.15"></a><var>44.15</var>two; plus (2) each county's share of the number of miles of shoreline of public water <br/>
<a id="pl.44.16"></a><var>44.16</var>basins, each county's share of the number of centerline miles of public watercourses, and <br/>
<a id="pl.44.17"></a><var>44.17</var>each county's share of the number of miles of public drainage system ditches established <br/>
<a id="pl.44.18"></a><var>44.18</var>under chapter 103E, divided by two; multiplied by (3) $10,000,000.<br/>
<a id="pl.44.19"></a><var>44.19</var>(b) Aid to a county shall not be greater than $200,000 or less than $25,000. If the <br/>
<a id="pl.44.20"></a><var>44.20</var>sum of aids payable to counties under paragraph (a) is greater or less than the limit under <br/>
<a id="pl.44.21"></a><var>44.21</var>subdivision 4, the commissioner of revenue shall calculate the percentage adjustment <br/>
<a id="pl.44.22"></a><var>44.22</var>necessary so that the total of the aid under paragraph (a) equals the total amount available <br/>
<a id="pl.44.23"></a><var>44.23</var>for aid under subdivision 4.<br/>
<a id="pl.44.24"></a><var>44.24</var>    Subd. 3. <b>Payments.</b> The commissioner of revenue must compute the amount of <br/>
<a id="pl.44.25"></a><var>44.25</var>riparian protection aid payable to each county under this section. On or before July 1 of <br/>
<a id="pl.44.26"></a><var>44.26</var>each year, the commissioner of natural resources shall certify to the commissioner of <br/>
<a id="pl.44.27"></a><var>44.27</var>revenue the statewide and countywide total of miles of shoreline of public waters basins, <br/>
<a id="pl.44.28"></a><var>44.28</var>the number of centerline miles of public watercourses, and the miles of public drainage <br/>
<a id="pl.44.29"></a><var>44.29</var>system ditches. On or before August 1 of each year, the commissioner shall certify <br/>
<a id="pl.44.30"></a><var>44.30</var>the amount to be paid to each county in the following year. The commissioner shall <br/>
<a id="pl.44.31"></a><var>44.31</var>pay riparian protection aid to counties in the same manner and at the same time as aid <br/>
<a id="pl.44.32"></a><var>44.32</var>payments under section 477A.015.<br/>
<a id="pl.44.33"></a><var>44.33</var>    Subd. 4. <b>Appropriation.</b> $10,000,000 for aids payable in 2017 and each year <br/>
<a id="pl.44.34"></a><var>44.34</var>thereafter is appropriated from the general fund to the commissioner of revenue to make <br/>
<a id="pl.44.35"></a><var>44.35</var>the payments required under this section.<br/>
<a id="pl.45.1"></a><var>45.1</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2017 <br/>
<a id="pl.45.2"></a><var>45.2</var>and thereafter.<br/>
<br/>
<a id="bill.3.6.0"></a><a id="pl.45.3"></a><var>45.3</var>    Sec. 6. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, <br/>
<a id="pl.45.4"></a><var>45.4</var>article 6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154, <br/>
<a id="pl.45.5"></a><var>45.5</var>article 2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read:<br/>
<a id="pl.45.6"></a><var>45.6</var>    Sec. 3. <b>TAX; PAYMENT OF EXPENSES.</b><br/>
<a id="pl.45.7"></a><var>45.7</var>    (a) The tax levied by the hospital district under Minnesota Statutes, section 
         <statute_ref>447.34</statute_ref>, <br/>
<a id="pl.45.8"></a><var>45.8</var>must not be levied at a rate that exceeds the amount authorized to be levied under that <br/>
<a id="pl.45.9"></a><var>45.9</var>section. The proceeds of the tax may be used for all purposes of the hospital district, <br/>
<a id="pl.45.10"></a><var>45.10</var>except as provided in paragraph (b).<br/>
<a id="pl.45.11"></a><var>45.11</var>    (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by <br/>
<a id="pl.45.12"></a><var>45.12</var>the Cook ambulance service and the Orr ambulance service for the purpose of:<br/>
<a id="pl.45.13"></a><var>45.13</var>    (1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance <br/>
<a id="pl.45.14"></a><var>45.14</var>service;<br/>
<a id="pl.45.15"></a><var>45.15</var>    (2) attached and portable equipment for use in and for the ambulances; and<br/>
<a id="pl.45.16"></a><var>45.16</var>    (3) parts and replacement parts for maintenance and repair of the ambulances, and <br/>
<a id="pl.45.17"></a><var>45.17</var>administrative, operation, or salary expenses for the Cook ambulance service and the <br/>
<a id="pl.45.18"></a><var>45.18</var>Orr ambulance service.<br/>
<a id="pl.45.19"></a><var>45.19</var>The money may not be used for administrative, operation, or salary expenses.<br/>
<a id="pl.45.20"></a><var>45.20</var>    (c) The part of the levy referred to in paragraph (b) must be administered by the <br/>
<a id="pl.45.21"></a><var>45.21</var>Cook Hospital and passed on in equal amounts directly to the Cook area ambulance <br/>
<a id="pl.45.22"></a><var>45.22</var>service board and the city of Orr to be used for the purposes in paragraph (b).<br/>
<a id="pl.45.23"></a><var>45.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.7.0"></a><a id="pl.45.24"></a><var>45.24</var>    Sec. 7. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by <br/>
<a id="pl.45.25"></a><var>45.25</var>Laws 2013, chapter 143, article 4, section 36, is amended to read:<br/>
<a id="pl.45.26"></a><var>45.26</var>    Subdivision 1. <b>Agreement.</b> The city of Cloquet and Perch Lake Township, by <br/>
<a id="pl.45.27"></a><var>45.27</var>resolution of each of their governing bodies, may establish the Cloquet Area Fire and <br/>
<a id="pl.45.28"></a><var>45.28</var>Ambulance Special Taxing District for the purpose of providing fire or ambulance <br/>
<a id="pl.45.29"></a><var>45.29</var>services, or both, throughout the district. In this section, "municipality" means home rule <br/>
<a id="pl.45.30"></a><var>45.30</var>charter and statutory cities, towns, and Indian tribes. The district may exercise all the <br/>
<a id="pl.45.31"></a><var>45.31</var>powers relating to fire and ambulance services of the municipalities that receive fire or <br/>
<a id="pl.45.32"></a><var>45.32</var>ambulance services, or both, from the district. Upon application, any other municipality <br/>
<a id="pl.46.1"></a><var>46.1</var>may join the district with the agreement of the municipalities that comprise the district at <br/>
<a id="pl.46.2"></a><var>46.2</var>the time of its application to join.<br/>
<a id="pl.46.3"></a><var>46.3</var><b>EFFECTIVE DATE.</b>This section is effective in Cloquet and Perch Lake Township <br/>
<a id="pl.46.4"></a><var>46.4</var>the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the <br/>
<a id="pl.46.5"></a><var>46.5</var>governing body of each.<br/>
<br/>
<a id="bill.3.8.0"></a><a id="pl.46.6"></a><var>46.6</var>    Sec. 8. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:<br/>
<a id="pl.46.7"></a><var>46.7</var>    Subd. 2. <b>Board.</b> The Cloquet Area Fire and Ambulance Special Taxing District <br/>
<a id="pl.46.8"></a><var>46.8</var>Board is governed by a board made up initially of one or more elected officials of the <br/>
<a id="pl.46.9"></a><var>46.9</var>governing body of each participating municipality in the proportions set out in the <br/>
<a id="pl.46.10"></a><var>46.10</var>establishing resolution, subject to change as provided in the district's charter, if any, or <br/>
<a id="pl.46.11"></a><var>46.11</var>in the district's bylaws. Each municipality's representatives serve at the pleasure of that <br/>
<a id="pl.46.12"></a><var>46.12</var>municipality's governing body.<br/>
<a id="pl.46.13"></a><var>46.13</var><b>EFFECTIVE DATE.</b>This section is effective in Cloquet and Perch Lake Township <br/>
<a id="pl.46.14"></a><var>46.14</var>the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the <br/>
<a id="pl.46.15"></a><var>46.15</var>governing body of each.<br/>
<br/>
<a id="bill.3.9.0"></a><a id="pl.46.16"></a><var>46.16</var>    Sec. 9. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by <br/>
<a id="pl.46.17"></a><var>46.17</var>Laws 2013, chapter 143, article 4, section 37, is amended to read:<br/>
<a id="pl.46.18"></a><var>46.18</var>    Subd. 3. <b>Tax.</b> (a) The district board may impose a property tax on taxable property <br/>
<a id="pl.46.19"></a><var>46.19</var>as provided in this subdivision to pay the costs of providing fire or ambulance services, <br/>
<a id="pl.46.20"></a><var>46.20</var>or both, throughout the district. The board shall annually determine the total amount of <br/>
<a id="pl.46.21"></a><var>46.21</var>the levy that is attributable to the cost of providing fire services and the cost of providing <br/>
<a id="pl.46.22"></a><var>46.22</var>ambulance services within the primary service area. For those municipalities that only <br/>
<a id="pl.46.23"></a><var>46.23</var>receive ambulance services, the costs for the provision of ambulance services shall <br/>
<a id="pl.46.24"></a><var>46.24</var>be levied against taxable property within those municipalities at a rate necessary not to <br/>
<a id="pl.46.25"></a><var>46.25</var>exceed 0.019 percent of the estimated market value. For those municipalities that receive <br/>
<a id="pl.46.26"></a><var>46.26</var>both fire and ambulance services, the tax shall be imposed at a rate that does not exceed <br/>
<a id="pl.46.27"></a><var>46.27</var>0.2835 percent of estimated market value.<br/>
<a id="pl.46.28"></a><var>46.28</var>(b) When a member municipality opts to receive fire service from the district or <br/>
<a id="pl.46.29"></a><var>46.29</var>an additional municipality becomes a member of the district, the cost of providing fire <br/>
<a id="pl.46.30"></a><var>46.30</var>services to that community shall be determined by the board and added to the maximum <br/>
<a id="pl.46.31"></a><var>46.31</var>levy amount.<br/>
<a id="pl.46.32"></a><var>46.32</var>(c) Each county auditor of a county that contains a municipality subject to the tax <br/>
<a id="pl.46.33"></a><var>46.33</var>under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing <br/>
<a id="pl.47.1"></a><var>47.1</var>District. The district may also impose other fees or charges as allowed by law for the <br/>
<a id="pl.47.2"></a><var>47.2</var>provision of fire and ambulance services.<br/>
<a id="pl.47.3"></a><var>47.3</var><b>EFFECTIVE DATE.</b>This section is effective in Cloquet and Perch Lake Township <br/>
<a id="pl.47.4"></a><var>47.4</var>the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the <br/>
<a id="pl.47.5"></a><var>47.5</var>governing body of each.<br/>
<br/>
<a id="bill.3.10.0"></a><a id="pl.47.6"></a><var>47.6</var>    Sec. 10. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:<br/>
<a id="pl.47.7"></a><var>47.7</var>    Subd. 4. <b>Public indebtedness.</b> (a) The district may incur debt in the manner <br/>
<a id="pl.47.8"></a><var>47.8</var>provided for a municipality by Minnesota Statutes, chapter 475, and may issue certificates <br/>
<a id="pl.47.9"></a><var>47.9</var>of indebtedness or capital notes in the manner provided for a city by Minnesota Statutes, <br/>
<a id="pl.47.10"></a><var>47.10</var>section 412.301, when necessary to accomplish its duties, except that the district may <br/>
<a id="pl.47.11"></a><var>47.11</var>not incur debt or issue obligations until first obtaining the approval of a majority of the <br/>
<a id="pl.47.12"></a><var>47.12</var>electors voting on the question of issuing the obligation. The debt service for debt used to <br/>
<a id="pl.47.13"></a><var>47.13</var>finance capital costs for ambulance service shall be levied against taxable property within <br/>
<a id="pl.47.14"></a><var>47.14</var>the municipalities in the primary service area. The debt service for debt used to finance <br/>
<a id="pl.47.15"></a><var>47.15</var>capital costs for fire service shall be levied against taxable property within municipalities <br/>
<a id="pl.47.16"></a><var>47.16</var>receiving fire services. The district board shall pledge its full faith and credit and taxing <br/>
<a id="pl.47.17"></a><var>47.17</var>power without limitation as to rate or amount for the payment of the district's debt.<br/>
<a id="pl.47.18"></a><var>47.18</var>(b) For purposes of this subdivision, "municipality" has the definition given in <br/>
<a id="pl.47.19"></a><var>47.19</var>Minnesota Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph <br/>
<a id="pl.47.20"></a><var>47.20</var>(c).<br/>
<a id="pl.47.21"></a><var>47.21</var><b>EFFECTIVE DATE.</b>This section is effective in Cloquet and Perch Lake Township <br/>
<a id="pl.47.22"></a><var>47.22</var>the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the <br/>
<a id="pl.47.23"></a><var>47.23</var>governing body of each.<br/>
<br/>
<a id="bill.3.11.0"></a><a id="pl.47.24"></a><var>47.24</var>    Sec. 11. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:<br/>
<a id="pl.47.25"></a><var>47.25</var>    Subd. 5. <b>Withdrawal.</b> Notice of intent to withdraw from participation in the district <br/>
<a id="pl.47.26"></a><var>47.26</var>may be given only in the month of January, with a minimum of twelve months notice of <br/>
<a id="pl.47.27"></a><var>47.27</var>intent to withdraw. Withdrawal becomes effective for taxes levied pursuant to subdivision <br/>
<a id="pl.47.28"></a><var>47.28</var>3 in the year when the notice is given. A property tax on taxable property located in a <br/>
<a id="pl.47.29"></a><var>47.29</var>withdrawing municipality that has been levied by the district pursuant to subdivision 4 <br/>
<a id="pl.47.30"></a><var>47.30</var>remains in effect until the obligations outstanding on the date of withdrawal are satisfied, <br/>
<a id="pl.47.31"></a><var>47.31</var>including any property tax levied in connection with refunding such obligations. The <br/>
<a id="pl.47.32"></a><var>47.32</var>district and its members may also develop and agree upon other continuing obligations <br/>
<a id="pl.47.33"></a><var>47.33</var>after withdrawal of a municipality.<br/>
<a id="pl.48.1"></a><var>48.1</var><b>EFFECTIVE DATE.</b>This section is effective in Cloquet and Perch Lake Township <br/>
<a id="pl.48.2"></a><var>48.2</var>the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the <br/>
<a id="pl.48.3"></a><var>48.3</var>governing body of each.<br/>
<br/>
<a id="bill.3.12.0"></a><a id="pl.48.4"></a><var>48.4</var>    Sec. 12. <b>2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE </b><br/>
<a id="pl.48.5"></a><var>48.5</var><b>WAIVER.</b><br/>
<a id="pl.48.6"></a><var>48.6</var>If a city or town that conducts local board of appeal and equalization meetings <br/>
<a id="pl.48.7"></a><var>48.7</var>certified by February 1, 2016, that it was in compliance with the requirements of <br/>
<a id="pl.48.8"></a><var>48.8</var>Minnesota Statutes, section 274.014, subdivision 2, but no member of the local board <br/>
<a id="pl.48.9"></a><var>48.9</var>who has attended an appeal and equalization course training within the preceding four <br/>
<a id="pl.48.10"></a><var>48.10</var>years attended the local board's meeting for 2016, that local board shall have its powers <br/>
<a id="pl.48.11"></a><var>48.11</var>reinstated for the 2017 assessment by resolution of the governing body of the city or <br/>
<a id="pl.48.12"></a><var>48.12</var>town, and by certifying it is in compliance with the requirements of Minnesota Statutes, <br/>
<a id="pl.48.13"></a><var>48.13</var>section 274.014, subdivision 2. The resolution and certification must be provided to <br/>
<a id="pl.48.14"></a><var>48.14</var>the county assessor by February 1, 2017.<br/>
<a id="pl.48.15"></a><var>48.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.13.0"></a><a id="pl.48.16"></a><var>48.16</var>    Sec. 13. <b>LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT </b><br/>
<a id="pl.48.17"></a><var>48.17</var><b>RECOMMENDATION.</b><br/>
<a id="pl.48.18"></a><var>48.18</var>The commissioner of revenue must prepare a written recommendation to the house <br/>
<a id="pl.48.19"></a><var>48.19</var>of representatives and senate taxes committees regarding the potential use of property tax <br/>
<a id="pl.48.20"></a><var>48.20</var>abatements in providing economic relief for businesses in the vicinity of Lake Mille Lacs <br/>
<a id="pl.48.21"></a><var>48.21</var>that were negatively affected by early closing of the walleye fishing season in 2015. The <br/>
<a id="pl.48.22"></a><var>48.22</var>recommendations must include:<br/>
<a id="pl.48.23"></a><var>48.23</var>(1) a proposed definition of an economic relief area in the vicinity of the lake;<br/>
<a id="pl.48.24"></a><var>48.24</var>(2) an overview of the impact of the early closing on businesses in the relief area;<br/>
<a id="pl.48.25"></a><var>48.25</var>(3) a discussion of the economic benefits a property tax abatement program would <br/>
<a id="pl.48.26"></a><var>48.26</var>provide to businesses in the relief area; and<br/>
<a id="pl.48.27"></a><var>48.27</var>(4) parameters for an abatement program.<br/>
<a id="pl.48.28"></a><var>48.28</var>The recommendation required under this section is due by January 2, 2017.<br/>
<a id="pl.48.29"></a><var>48.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.3.14.0"></a><a id="pl.48.30"></a><var>48.30</var>    Sec. 14. <b>SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL </b><br/>
<a id="pl.48.31"></a><var>48.31</var><b>ASSESSMENT.</b><br/>
<a id="pl.49.1"></a><var>49.1</var>Any real or personal property acquired, owned, leased, controlled, used, or occupied <br/>
<a id="pl.49.2"></a><var>49.2</var>by the city of St. Paul for the primary purpose of providing a stadium for a Major League <br/>
<a id="pl.49.3"></a><var>49.3</var>Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for <br/>
<a id="pl.49.4"></a><var>49.4</var>public, governmental, and municipal purposes, and is exempt from ad valorem taxation by <br/>
<a id="pl.49.5"></a><var>49.5</var>the state or any political subdivision of the state, provided that the properties are subject to <br/>
<a id="pl.49.6"></a><var>49.6</var>special assessments levied by a political subdivision for a local improvement in amounts <br/>
<a id="pl.49.7"></a><var>49.7</var>proportionate to and not exceeding the special benefit received by the properties from the <br/>
<a id="pl.49.8"></a><var>49.8</var>improvement. In determining the special benefit received by the properties, no possible <br/>
<a id="pl.49.9"></a><var>49.9</var>use of any of the properties in any manner different from their intended use for providing a <br/>
<a id="pl.49.10"></a><var>49.10</var>Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota <br/>
<a id="pl.49.11"></a><var>49.11</var>Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a <br/>
<a id="pl.49.12"></a><var>49.12</var>lease or use agreement between the city and another person for uses related to the purposes <br/>
<a id="pl.49.13"></a><var>49.13</var>of the operation of the stadium and related parking facilities is exempt from taxation <br/>
<a id="pl.49.14"></a><var>49.14</var>regardless of the length of the lease or use agreement. This section, insofar as it provides <br/>
<a id="pl.49.15"></a><var>49.15</var>an exemption or special treatment, does not apply to any real property that is leased for <br/>
<a id="pl.49.16"></a><var>49.16</var>residential, business, or commercial development or other purposes different from those <br/>
<a id="pl.49.17"></a><var>49.17</var>necessary to the provision and operation of the stadium.<br/>
<a id="pl.49.18"></a><var>49.18</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the St. Paul City <br/>
<a id="pl.49.19"></a><var>49.19</var>Council and compliance with Minnesota Statutes, section 645.021.<br/>
<br/>
<a id="bill.3.15.0"></a><a id="pl.49.20"></a><var>49.20</var>    Sec. 15. <b>APPROPRIATION.</b><br/>
<a id="pl.49.21"></a><var>49.21</var>$1,200,000 in fiscal year 2016 is appropriated from the general fund to the <br/>
<a id="pl.49.22"></a><var>49.22</var>commissioner of revenue for a grant to the city of Madelia that shall be paid by June <br/>
<a id="pl.49.23"></a><var>49.23</var>30, 2016. This appropriation is onetime.<br/>
<a id="pl.49.24"></a><var>49.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.4.0.0"></a>

<a id="bill.4.1.0"></a><a id="pl.49.27"></a><var>49.27</var>    Section 1. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to <br/>
<a id="pl.49.28"></a><var>49.28</var>read:<br/>
<a id="pl.49.29"></a><var>49.29</var>    Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br/>
<a id="pl.49.30"></a><var>49.30</var>financing plan for a district, the rules under this section apply to a redevelopment district, <br/>
<a id="pl.49.31"></a><var>49.31</var>renewal and renovation district, economic development district, soil condition district, <br/>
<a id="pl.49.32"></a><var>49.32</var>or a soil deficiency district established by the city or a development authority of the city <br/>
<a id="pl.49.33"></a><var>49.33</var>in the project area.<br/>
<a id="pl.50.1"></a><var>50.1</var>    (b) Prior to or upon the adoption of the first tax increment plan subject to the special <br/>
<a id="pl.50.2"></a><var>50.2</var>rules under this subdivision, the city must find by resolution that parcels consisting of at <br/>
<a id="pl.50.3"></a><var>50.3</var>least 80 percent of the acreage of the project area (excluding street and railroad right of <br/>
<a id="pl.50.4"></a><var>50.4</var>way) are characterized by one or more of the following conditions:<br/>
<a id="pl.50.5"></a><var>50.5</var>    (1) peat or other soils with geotechnical deficiencies that impair development of <br/>
<a id="pl.50.6"></a><var>50.6</var>residential or commercial buildings or infrastructure;<br/>
<a id="pl.50.7"></a><var>50.7</var>    (2) soils or terrain that requires substantial filling in order to permit the development <br/>
<a id="pl.50.8"></a><var>50.8</var>of commercial or residential buildings or infrastructure;<br/>
<a id="pl.50.9"></a><var>50.9</var>    (3) landfills, dumps, or similar deposits of municipal or private waste;<br/>
<a id="pl.50.10"></a><var>50.10</var>    (4) quarries or similar resource extraction sites;<br/>
<a id="pl.50.11"></a><var>50.11</var>    (5) floodway; and<br/>
<a id="pl.50.12"></a><var>50.12</var>    (6) substandard buildings within the meaning of Minnesota Statutes, section <br/>
<statute_ref><a id="pl.50.13"></a><var>50.13</var>469.174, subdivision 10
         </statute_ref>.<br/>
<a id="pl.50.14"></a><var>50.14</var>    (c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to <br/>
<a id="pl.50.15"></a><var>50.15</var>be characterized by the relevant condition if at least 70 percent of the area of the parcel <br/>
<a id="pl.50.16"></a><var>50.16</var>contains the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is <br/>
<a id="pl.50.17"></a><var>50.17</var>deemed to be characterized by substandard buildings if the buildings occupy at least 30 <br/>
<a id="pl.50.18"></a><var>50.18</var>percent of the area of the parcel.<br/>
<a id="pl.50.19"></a><var>50.19</var>    (d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, <br/>
<a id="pl.50.20"></a><var>50.20</var>is extended to nine years for any district. The five-year rule under Minnesota Statutes, <br/>
<a id="pl.50.21"></a><var>50.21</var>section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, is extended to ten years for any district, and section <br/>
<statute_ref><a id="pl.50.22"></a><var>50.22</var>469.1763, subdivision 4
         </statute_ref>, does not apply to any district.<br/>
<a id="pl.50.23"></a><var>50.23</var>    (e) Notwithstanding anything to the contrary in section 
         <statute_ref>469.1763, subdivision 2</statute_ref>, <br/>
<a id="pl.50.24"></a><var>50.24</var>paragraph (a), not more than 80 percent of the total revenue derived from tax increments <br/>
<a id="pl.50.25"></a><var>50.25</var>paid by properties in any district (measured over the life of the district) may be expended <br/>
<a id="pl.50.26"></a><var>50.26</var>on activities outside the district but within the project area.<br/>
<a id="pl.50.27"></a><var>50.27</var>    (f) For a soil deficiency district:<br/>
<a id="pl.50.28"></a><var>50.28</var>    (1) increments may be collected through 20 years after the receipt by the authority of <br/>
<a id="pl.50.29"></a><var>50.29</var>the first increment from the district; and<br/>
<a id="pl.50.30"></a><var>50.30</var>    (2) except as otherwise provided in this subdivision, increments may be used only to:<br/>
<a id="pl.50.31"></a><var>50.31</var>    (i) acquire parcels on which the improvements described in item (ii) will occur;<br/>
<a id="pl.50.32"></a><var>50.32</var>    (ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the <br/>
<a id="pl.50.33"></a><var>50.33</var>additional cost of installing public improvements directly caused by the deficiencies; and<br/>
<a id="pl.50.34"></a><var>50.34</var>    (iii) pay for the administrative expenses of the authority allocable to the district.<br/>
<a id="pl.51.1"></a><var>51.1</var>    (g) Increments spent for any infrastructure costs, whether inside a district or outside <br/>
<a id="pl.51.2"></a><var>51.2</var>a district but within the project area, are deemed to satisfy the requirements of paragraph <br/>
<a id="pl.51.3"></a><var>51.3</var>(f) and Minnesota Statutes, section 
         <statute_ref>469.176, subdivisions 4b, 4c,</statute_ref> and 4j.<br/>
<a id="pl.51.4"></a><var>51.4</var>    (h) Increments from any district may not be used to pay the costs of landfill closure or <br/>
<a id="pl.51.5"></a><var>51.5</var>public infrastructure located on the following parcels within the plat known as Burnsville <br/>
<a id="pl.51.6"></a><var>51.6</var>Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.<br/>
<a id="pl.51.7"></a><var>51.7</var>    (i) The authority to approve tax increment financing plans to establish tax increment <br/>
<a id="pl.51.8"></a><var>51.8</var>financing districts under this section expires on December 31, 2018 2020.<br/>
<a id="pl.51.9"></a><var>51.9</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.51.10"></a><var>51.10</var>of the city of Burnsville and compliance with the requirements of Minnesota Statutes, <br/>
<a id="pl.51.11"></a><var>51.11</var>section 645.021.<br/>
<br/>
<a id="bill.4.2.0"></a><a id="pl.51.12"></a><var>51.12</var>    Sec. 2. Laws 2014, chapter 308, article 6, section 9, is amended to read:<br/>
<a id="pl.51.13"></a><var>51.13</var>    Sec. 9. <b>CITY OF MAPLE GROVE; TAX INCREMENT FINANCING </b><br/>
<a id="pl.51.14"></a><var>51.14</var><b>DISTRICT.</b><br/>
<a id="pl.51.15"></a><var>51.15</var>    Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br/>
<a id="pl.51.16"></a><var>51.16</var>have the meanings given them.<br/>
<a id="pl.51.17"></a><var>51.17</var>(b) "City" means the city of Maple Grove.<br/>
<a id="pl.51.18"></a><var>51.18</var>(c) "Project area" means all or a portion of the area in the city commencing at a point <br/>
<a id="pl.51.19"></a><var>51.19</var>130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of <br/>
<a id="pl.51.20"></a><var>51.20</var>Section 23, Township 119, Range 22, Hennepin County, said point being on the easterly <br/>
<a id="pl.51.21"></a><var>51.21</var>right-of-way line of Hemlock Lane; thence northerly along said easterly right-of-way line <br/>
<a id="pl.51.22"></a><var>51.22</var>of Hemlock Lane to a point on the west line of the east one-half of the Southeast Quarter of <br/>
<a id="pl.51.23"></a><var>51.23</var>section 23, thence south along said west line a distance of 1,200 feet; thence easterly to the <br/>
<a id="pl.51.24"></a><var>51.24</var>east line of Section 23, 1,030 feet North from the southeast corner thereof; thence South <br/>
<a id="pl.51.25"></a><var>51.25</var>74 degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees <br/>
<a id="pl.51.26"></a><var>51.26</var>West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line <br/>
<a id="pl.51.27"></a><var>51.27</var>of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of <br/>
<a id="pl.51.28"></a><var>51.28</var>the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795 <br/>
<a id="pl.51.29"></a><var>51.29</var>feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of <br/>
<a id="pl.51.30"></a><var>51.30</var>Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the <br/>
<a id="pl.51.31"></a><var>51.31</var>Northwest Quarter of Section 24; thence West along said south line to the east right-of-way <br/>
<a id="pl.51.32"></a><var>51.32</var>line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to <br/>
<a id="pl.51.33"></a><var>51.33</var>the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence <br/>
<a id="pl.51.34"></a><var>51.34</var>East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan <br/>
<a id="pl.51.35"></a><var>51.35</var>Industrial Park 5th Addition; thence South along the east line of said Outlot A and its <br/>
<a id="pl.52.1"></a><var>52.1</var>southerly extension to the south right-of-way line of County State-Aid Highway (CSAH) <br/>
<a id="pl.52.2"></a><var>52.2</var>109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the <br/>
<a id="pl.52.3"></a><var>52.3</var>Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east <br/>
<a id="pl.52.4"></a><var>52.4</var>line to the north line of the South Half of the Northeast Quarter of Section 24; thence East <br/>
<a id="pl.52.5"></a><var>52.5</var>along said north line to the westerly right-of-way line of Jefferson Highway North; thence <br/>
<a id="pl.52.6"></a><var>52.6</var>southerly along the westerly right-of-way line of Jefferson Highway to the centerline of <br/>
<a id="pl.52.7"></a><var>52.7</var>CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane <br/>
<a id="pl.52.8"></a><var>52.8</var>North to the westerly extension of the north line of Outlot A, Park North Fourth Addition; <br/>
<a id="pl.52.9"></a><var>52.9</var>thence easterly along the north line of Outlot A, Park North Fourth Addition to the <br/>
<a id="pl.52.10"></a><var>52.10</var>northeast corner of said Outlot A; thence southerly along the east line of said Outlot A <br/>
<a id="pl.52.11"></a><var>52.11</var>to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1, <br/>
<a id="pl.52.12"></a><var>52.12</var>Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway <br/>
<a id="pl.52.13"></a><var>52.13</var>169; thence southerly, southwesterly, westerly, and northwesterly along the westerly <br/>
<a id="pl.52.14"></a><var>52.14</var>right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate <br/>
<a id="pl.52.15"></a><var>52.15</var>694 to its intersection with the southerly extension of the easterly right-of-way line of <br/>
<a id="pl.52.16"></a><var>52.16</var>Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary <br/>
<a id="pl.52.17"></a><var>52.17</var>Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence <br/>
<a id="pl.52.18"></a><var>52.18</var>westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning <br/>
<a id="pl.52.19"></a><var>52.19</var>and there terminating, provided that the project area includes the rights-of-way for all <br/>
<a id="pl.52.20"></a><var>52.20</var>present and future highway interchanges abutting the area described in this paragraph, and <br/>
<a id="pl.52.21"></a><var>52.21</var>may include any additional property necessary to cause the property included in the tax <br/>
<a id="pl.52.22"></a><var>52.22</var>increment financing district to consist of complete parcels.<br/>
<a id="pl.52.23"></a><var>52.23</var>(d) "Soil deficiency district" means a type of tax increment financing district <br/>
<a id="pl.52.24"></a><var>52.24</var>consisting of a portion of the project area in which the city finds by resolution that the <br/>
<a id="pl.52.25"></a><var>52.25</var>following conditions exist:<br/>
<a id="pl.52.26"></a><var>52.26</var>(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in <br/>
<a id="pl.52.27"></a><var>52.27</var>the district require substantial filling, grading, or other physical preparation for use; and<br/>
<a id="pl.52.28"></a><var>52.28</var>(2) the estimated cost of the physical preparation under clause (1), but excluding <br/>
<a id="pl.52.29"></a><var>52.29</var>costs directly related to roads as defined in Minnesota Statutes, section 
         <statute_ref>160.01</statute_ref>, and <br/>
<a id="pl.52.30"></a><var>52.30</var>local improvements as described in Minnesota Statutes, sections 
         <statute_ref>429.021, subdivision 1</statute_ref>, <br/>
<a id="pl.52.31"></a><var>52.31</var>clauses (1) to (7), (11), and (12), and 
         <statute_ref>430.01</statute_ref>, exceeds the fair market value of the land <br/>
<a id="pl.52.32"></a><var>52.32</var>before completion of the preparation.<br/>
<a id="pl.52.33"></a><var>52.33</var>    Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br/>
<a id="pl.52.34"></a><var>52.34</var>financing plan for a district, the rules under this section apply to a redevelopment <br/>
<a id="pl.52.35"></a><var>52.35</var>district, renewal and renovation district, soil condition district, or soil deficiency district <br/>
<a id="pl.52.36"></a><var>52.36</var>established by the city or a development authority of the city in the project area.<br/>
<a id="pl.53.1"></a><var>53.1</var>(b) Prior to or upon the adoption of the first tax increment plan subject to the special <br/>
<a id="pl.53.2"></a><var>53.2</var>rules under this subdivision, the city must find by resolution that parcels consisting <br/>
<a id="pl.53.3"></a><var>53.3</var>of at least 80 percent of the acreage of the project area, excluding street and railroad <br/>
<a id="pl.53.4"></a><var>53.4</var>rights-of-way, are characterized by one or more of the following conditions:<br/>
<a id="pl.53.5"></a><var>53.5</var>(1) peat or other soils with geotechnical deficiencies that impair development of <br/>
<a id="pl.53.6"></a><var>53.6</var>commercial buildings or infrastructure;<br/>
<a id="pl.53.7"></a><var>53.7</var>(2) soils or terrain that require substantial filling in order to permit the development <br/>
<a id="pl.53.8"></a><var>53.8</var>of commercial buildings or infrastructure;<br/>
<a id="pl.53.9"></a><var>53.9</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br/>
<a id="pl.53.10"></a><var>53.10</var>(4) quarries or similar resource extraction sites;<br/>
<a id="pl.53.11"></a><var>53.11</var>(5) floodway; and<br/>
<a id="pl.53.12"></a><var>53.12</var>(6) substandard buildings, within the meaning of Minnesota Statutes, section <br/>
<statute_ref><a id="pl.53.13"></a><var>53.13</var>469.174, subdivision 10
         </statute_ref>.<br/>
<a id="pl.53.14"></a><var>53.14</var>(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by <br/>
<a id="pl.53.15"></a><var>53.15</var>the relevant condition if at least 70 percent of the area of the parcel contains the relevant <br/>
<a id="pl.53.16"></a><var>53.16</var>condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by <br/>
<a id="pl.53.17"></a><var>53.17</var>substandard buildings if substandard buildings occupy at least 30 percent of the area <br/>
<a id="pl.53.18"></a><var>53.18</var>of the parcel.<br/>
<a id="pl.53.19"></a><var>53.19</var>(d) The five-year rule under Minnesota Statutes, section 
         <statute_ref>469.1763, subdivision 3</statute_ref>, <br/>
<a id="pl.53.20"></a><var>53.20</var>is extended to eight years for any district, and Minnesota Statutes, section 
         <statute_ref>469.1763, <br/>
<a id="pl.53.21"></a><var>53.21</var>subdivision 4
         </statute_ref>, does not apply to any district.<br/>
<a id="pl.53.22"></a><var>53.22</var>(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section <br/>
<statute_ref><a id="pl.53.23"></a><var>53.23</var>469.1763, subdivision 2
         </statute_ref>, paragraph (a), not more than 40 percent of the total revenue <br/>
<a id="pl.53.24"></a><var>53.24</var>derived from tax increments paid by properties in any district, measured over the life of <br/>
<a id="pl.53.25"></a><var>53.25</var>the district, may be expended on activities outside the district but within the project area.<br/>
<a id="pl.53.26"></a><var>53.26</var>(f) For a soil deficiency district:<br/>
<a id="pl.53.27"></a><var>53.27</var>(1) increments may be collected through 20 years after the receipt by the authority of <br/>
<a id="pl.53.28"></a><var>53.28</var>the first increment from the district;<br/>
<a id="pl.53.29"></a><var>53.29</var>(2) increments may be used only to:<br/>
<a id="pl.53.30"></a><var>53.30</var>(i) acquire parcels on which the improvements described in item (ii) will occur;<br/>
<a id="pl.53.31"></a><var>53.31</var>(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the <br/>
<a id="pl.53.32"></a><var>53.32</var>additional cost of installing public improvements directly caused by the deficiencies; and<br/>
<a id="pl.53.33"></a><var>53.33</var>(iii) pay for the administrative expenses of the authority allocable to the district; and<br/>
<a id="pl.53.34"></a><var>53.34</var>(3) any parcel acquired with increments from the district must be sold at no less <br/>
<a id="pl.53.35"></a><var>53.35</var>than their fair market value.<br/>
<a id="pl.54.1"></a><var>54.1</var>(g) Increments spent for any infrastructure costs, whether inside a district or outside <br/>
<a id="pl.54.2"></a><var>54.2</var>a district but within the project area, are deemed to satisfy the requirements of Minnesota <br/>
<a id="pl.54.3"></a><var>54.3</var>Statutes, section 
         <statute_ref>469.176, subdivision 4j</statute_ref>.<br/>
<a id="pl.54.4"></a><var>54.4</var>(h) The authority to approve tax increment financing plans to establish tax increment <br/>
<a id="pl.54.5"></a><var>54.5</var>financing districts under this section expires June 30, 2020.<br/>
<a id="pl.54.6"></a><var>54.6</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing <br/>
<a id="pl.54.7"></a><var>54.7</var>body of the city of Maple Grove and compliance with the requirements of Minnesota <br/>
<a id="pl.54.8"></a><var>54.8</var>Statutes, section 645.021.<br/>
<br/>
<a id="bill.4.3.0"></a><a id="pl.54.9"></a><var>54.9</var>    Sec. 3. <b>CITY OF ANOKA; TIF DISTRICT.</b><br/>
<a id="pl.54.10"></a><var>54.10</var>For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), <br/>
<a id="pl.54.11"></a><var>54.11</var>the city of Anoka's Greens of Anoka redevelopment tax increment financing district is <br/>
<a id="pl.54.12"></a><var>54.12</var>deemed to be certified on June 29, 2012, rather than its actual certification date of July 2, <br/>
<a id="pl.54.13"></a><var>54.13</var>2012, and the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, <br/>
<a id="pl.54.14"></a><var>54.14</var>apply as if the district were certified on that date.<br/>
<a id="pl.54.15"></a><var>54.15</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br/>
<a id="pl.54.16"></a><var>54.16</var>of the city of Anoka and upon compliance by the city with Minnesota Statutes, section <br/>
<a id="pl.54.17"></a><var>54.17</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.4.4.0"></a><a id="pl.54.18"></a><var>54.18</var>    Sec. 4. <b>CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.</b><br/>
<a id="pl.54.19"></a><var>54.19</var>Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision <br/>
<a id="pl.54.20"></a><var>54.20</var>3, the chief clerical officer of the city of Edina may file the city's certificate of its approval <br/>
<a id="pl.54.21"></a><var>54.21</var>of Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate <br/>
<a id="pl.54.22"></a><var>54.22</var>is so filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3, <br/>
<a id="pl.54.23"></a><var>54.23</var>are otherwise complied with, the special law is deemed approved, and all actions taken <br/>
<a id="pl.54.24"></a><var>54.24</var>by the city prior to the effective date of this section in reliance on Laws 2014, chapter <br/>
<a id="pl.54.25"></a><var>54.25</var>308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article <br/>
<a id="pl.54.26"></a><var>54.26</var>6, section 8, and this act.<br/>
<a id="pl.54.27"></a><var>54.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.54.28"></a><var>54.28</var>without local approval as an amendment to the provisions of Laws 2014, chapter 308, <br/>
<a id="pl.54.29"></a><var>54.29</var>article 6, section 8.<br/>
<br/>
<a id="bill.4.5.0"></a><a id="pl.54.30"></a><var>54.30</var>    Sec. 5. <b>CITY OF NORTHFIELD; TAX INCREMENT FINANCING.</b><br/>
<a id="pl.54.31"></a><var>54.31</var>The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that <br/>
<a id="pl.54.32"></a><var>54.32</var>activities must be undertaken within a five-year period from the date of certification of a <br/>
<a id="pl.55.1"></a><var>55.1</var>tax increment financing district, are considered to be met for the Riverfront Tax Increment <br/>
<a id="pl.55.2"></a><var>55.2</var>Financing District in the city of Northfield, if the activities are undertaken prior to July <br/>
<a id="pl.55.3"></a><var>55.3</var>12, 2017.<br/>
<a id="pl.55.4"></a><var>55.4</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br/>
<a id="pl.55.5"></a><var>55.5</var>the city of Northfield and its chief clerical officer comply with Minnesota Statutes, section <br/>
<a id="pl.55.6"></a><var>55.6</var>645.021, subdivisions 2 and 3.<br/>
<br/>
<a id="bill.5.0.0"></a>

<a id="bill.5.1.0"></a><a id="pl.55.9"></a><var>55.9</var>    Section 1. Minnesota Statutes 2014, section 15.38, subdivision 7, is amended to read:<br/>
<a id="pl.55.10"></a><var>55.10</var>    Subd. 7. <b>Iron Range resources and rehabilitation </b><b>Board</b><b>.</b> After seeking <br/>
<a id="pl.55.11"></a><var>55.11</var>a recommendation from the Iron Range Resources and Rehabilitation Board, the <br/>
<a id="pl.55.12"></a><var>55.12</var>commissioner of Iron Range resources and rehabilitation Board may purchase insurance it <br/>
<a id="pl.55.13"></a><var>55.13</var>considers the commissioner deems necessary and appropriate to insure facilities operated <br/>
<a id="pl.55.14"></a><var>55.14</var>by the board.<br/>
<br/>
<a id="bill.5.2.0"></a><a id="pl.55.15"></a><var>55.15</var>    Sec. 2. Minnesota Statutes 2014, section 116J.424, is amended to read:<br/>
<a id="pl.55.16"></a><var>55.16</var><b>116J.424 IRON RANGE RESOURCES AND REHABILITATION </b><b>BOARD</b><b> </b><br/>
<a id="pl.55.17"></a><var>55.17</var><b>CONTRIBUTION.</b><br/>
<a id="pl.55.18"></a><var>55.18</var>The commissioner of the Iron Range resources and rehabilitation Board with <br/>
<a id="pl.55.19"></a><var>55.19</var>approval by the board, shall provide an equal match for any loan or equity investment <br/>
<a id="pl.55.20"></a><var>55.20</var>made for a facility located in the tax relief area defined in section 
         <statute_ref>273.134, paragraph (b)</statute_ref>, <br/>
<a id="pl.55.21"></a><var>55.21</var>by the Minnesota minerals 21st century fund created by section 
         <statute_ref>116J.423</statute_ref>. The match may <br/>
<a id="pl.55.22"></a><var>55.22</var>be in the form of a loan or equity investment, notwithstanding whether the fund makes <br/>
<a id="pl.55.23"></a><var>55.23</var>a loan or equity investment. The state shall not acquire an equity interest because of an <br/>
<a id="pl.55.24"></a><var>55.24</var>equity investment or loan by the board under this section and the board at its sole discretion <br/>
<a id="pl.55.25"></a><var>55.25</var>commissioner, after consultation with the Iron Range Resources and Rehabilitation Board, <br/>
<a id="pl.55.26"></a><var>55.26</var>shall have the sole discretion to decide what interest it the board acquires in a project. The <br/>
<a id="pl.55.27"></a><var>55.27</var>commissioner of employment and economic development may require a commitment <br/>
<a id="pl.55.28"></a><var>55.28</var>from the board commissioner to make the match prior to disbursing money from the fund.<br/>
<br/>
<a id="bill.5.3.0"></a><a id="pl.55.29"></a><var>55.29</var>    Sec. 3. Minnesota Statutes 2014, section 216B.161, subdivision 1, is amended to read:<br/>
<a id="pl.55.30"></a><var>55.30</var>    Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br/>
<a id="pl.55.31"></a><var>55.31</var>have the meanings given them in this subdivision.<br/>
<a id="pl.56.1"></a><var>56.1</var>(b) "Area development rate" means a rate schedule established by a utility that <br/>
<a id="pl.56.2"></a><var>56.2</var>provides customers within an area development zone service under a base utility rate <br/>
<a id="pl.56.3"></a><var>56.3</var>schedule, except that charges may be reduced from the base rate as agreed upon by the <br/>
<a id="pl.56.4"></a><var>56.4</var>utility and the customer consistent with this section.<br/>
<a id="pl.56.5"></a><var>56.5</var>(c) "Area development zone" means a contiguous or noncontiguous area designated <br/>
<a id="pl.56.6"></a><var>56.6</var>by an authority or municipality for development or redevelopment and within which one <br/>
<a id="pl.56.7"></a><var>56.7</var>of the following conditions exists:<br/>
<a id="pl.56.8"></a><var>56.8</var>(1) obsolete buildings not suitable for improvement or conversion or other identified <br/>
<a id="pl.56.9"></a><var>56.9</var>hazards to the health, safety, and general well-being of the community;<br/>
<a id="pl.56.10"></a><var>56.10</var>(2) buildings in need of substantial rehabilitation or in substandard condition; or<br/>
<a id="pl.56.11"></a><var>56.11</var>(3) low values and damaged investments.<br/>
<a id="pl.56.12"></a><var>56.12</var>(d) "Authority" means a rural development financing authority established under <br/>
<a id="pl.56.13"></a><var>56.13</var>sections 
         <statute_ref>469.142</statute_ref> to 
         <statute_ref>469.151</statute_ref>; a housing and redevelopment authority established under <br/>
<a id="pl.56.14"></a><var>56.14</var>sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>; a port authority established under sections 
         <statute_ref>469.048</statute_ref> to <br/>
<statute_ref><a id="pl.56.15"></a><var>56.15</var>469.068
         </statute_ref>; an economic development authority established under sections 
         <statute_ref>469.090</statute_ref> <br/>
<a id="pl.56.16"></a><var>56.16</var>to 
         <statute_ref>469.108</statute_ref>; a redevelopment agency as defined in sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>; the <br/>
<a id="pl.56.17"></a><var>56.17</var>commissioner of Iron Range resources and rehabilitation, acting after consultation <br/>
<a id="pl.56.18"></a><var>56.18</var>with the board established under section 
         <statute_ref>298.22</statute_ref>; a municipality that is administering a <br/>
<a id="pl.56.19"></a><var>56.19</var>development district created under sections 
         <statute_ref>469.124</statute_ref> to 
         <statute_ref>469.133</statute_ref> or any special law; a <br/>
<a id="pl.56.20"></a><var>56.20</var>municipality that undertakes a project under sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, except a town <br/>
<a id="pl.56.21"></a><var>56.21</var>located outside the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>, or with <br/>
<a id="pl.56.22"></a><var>56.22</var>a population of 5,000 persons or less; or a municipality that exercises the powers of a port <br/>
<a id="pl.56.23"></a><var>56.23</var>authority under any general or special law.<br/>
<a id="pl.56.24"></a><var>56.24</var>(e) "Municipality" means a city, however organized, and, with respect to a project <br/>
<a id="pl.56.25"></a><var>56.25</var>undertaken under sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, "municipality" has the meaning given in <br/>
<a id="pl.56.26"></a><var>56.26</var>sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, and, with respect to a project undertaken under sections <br/>
<statute_ref><a id="pl.56.27"></a><var>56.27</var>469.142
         </statute_ref> to 
         <statute_ref>469.151</statute_ref> or a county or multicounty project undertaken under sections 
         <statute_ref>469.004</statute_ref> <br/>
<a id="pl.56.28"></a><var>56.28</var>to 
         <statute_ref>469.008</statute_ref>, also includes any county.<br/>
<br/>
<a id="bill.5.4.0"></a><a id="pl.56.29"></a><var>56.29</var>    Sec. 4. Minnesota Statutes 2014, section 276A.01, subdivision 8, is amended to read:<br/>
<a id="pl.56.30"></a><var>56.30</var>    Subd. 8. <b>Municipality.</b> "Municipality" means a city, town, or township located <br/>
<a id="pl.56.31"></a><var>56.31</var>in whole or part within the area. If a municipality is located partly within and partly <br/>
<a id="pl.56.32"></a><var>56.32</var>without the area, the references in sections 
         <statute_ref>276A.01</statute_ref> to 
         <statute_ref>276A.09</statute_ref> to property or any portion <br/>
<a id="pl.56.33"></a><var>56.33</var>thereof subject to taxation or taxing jurisdiction within the municipality are to the property <br/>
<a id="pl.56.34"></a><var>56.34</var>or portion thereof that is located in that portion of the municipality within the area, <br/>
<a id="pl.56.35"></a><var>56.35</var>except that the fiscal capacity of the municipality must be computed upon the basis of the <br/>
<a id="pl.57.1"></a><var>57.1</var>valuation and population of the entire municipality. A municipality shall be excluded from <br/>
<a id="pl.57.2"></a><var>57.2</var>the area if its municipal comprehensive zoning and planning policies conscientiously <br/>
<a id="pl.57.3"></a><var>57.3</var>exclude most commercial-industrial development, for reasons other than preserving an <br/>
<a id="pl.57.4"></a><var>57.4</var>agricultural use. The commissioner of Iron Range resources and rehabilitation Board and <br/>
<a id="pl.57.5"></a><var>57.5</var>the commissioner of revenue shall jointly make this determination annually and shall <br/>
<a id="pl.57.6"></a><var>57.6</var>notify those municipalities that are ineligible to participate in the tax base sharing program <br/>
<a id="pl.57.7"></a><var>57.7</var>provided in this chapter for the following year. Before making the joint determination, the <br/>
<a id="pl.57.8"></a><var>57.8</var>commissioner of Iron Range resources and rehabilitation shall seek a recommendation <br/>
<a id="pl.57.9"></a><var>57.9</var>from the Iron Range Resources and Rehabilitation Board.<br/>
<br/>
<a id="bill.5.5.0"></a><a id="pl.57.10"></a><var>57.10</var>    Sec. 5. Minnesota Statutes 2014, section 276A.01, subdivision 17, is amended to read:<br/>
<a id="pl.57.11"></a><var>57.11</var>    Subd. 17. <b>School fund allocation.</b> (a) "School fund allocation" means an amount up <br/>
<a id="pl.57.12"></a><var>57.12</var>to 25 percent of the areawide levy certified by the commissioner of Iron Range resources <br/>
<a id="pl.57.13"></a><var>57.13</var>and rehabilitation, after seeking a recommendation from the Iron Range Resources and <br/>
<a id="pl.57.14"></a><var>57.14</var>Rehabilitation Board, to be used for the purposes of the Iron Range school consolidation <br/>
<a id="pl.57.15"></a><var>57.15</var>and cooperatively operated school account under section 
         <statute_ref>298.28, subdivision 7a</statute_ref>.<br/>
<a id="pl.57.16"></a><var>57.16</var>(b) The allocation under paragraph (a) shall only be made after the commissioner of <br/>
<a id="pl.57.17"></a><var>57.17</var>Iron Range resources and rehabilitation, after seeking a recommendation from the Iron <br/>
<a id="pl.57.18"></a><var>57.18</var>Range Resources and Rehabilitation Board, has certified by June 30 that the Iron Range <br/>
<a id="pl.57.19"></a><var>57.19</var>school consolidation and cooperatively operated account has insufficient funds to make <br/>
<a id="pl.57.20"></a><var>57.20</var>payments as authorized under section 
         <statute_ref>298.28, subdivision 7a</statute_ref>.<br/>
<br/>
<a id="bill.5.6.0"></a><a id="pl.57.21"></a><var>57.21</var>    Sec. 6. Minnesota Statutes 2014, section 282.38, subdivision 1, is amended to read:<br/>
<a id="pl.57.22"></a><var>57.22</var>    Subdivision 1. <b>Development.</b> In any county where the county board by proper <br/>
<a id="pl.57.23"></a><var>57.23</var>resolution sets aside funds for forest development pursuant to section 
         <statute_ref>282.08</statute_ref>, clause (5), <br/>
<a id="pl.57.24"></a><var>57.24</var>item (i), or section 
         <statute_ref>459.06, subdivision 2</statute_ref>, the commissioner of Iron Range resources <br/>
<a id="pl.57.25"></a><var>57.25</var>and rehabilitation with the approval of the, after seeking a recommendation from the <br/>
<a id="pl.57.26"></a><var>57.26</var>Iron Range Resources and Rehabilitation Board, may upon request of the county board <br/>
<a id="pl.57.27"></a><var>57.27</var>assist said county in carrying out any project for the long range development of its forest <br/>
<a id="pl.57.28"></a><var>57.28</var>resources through matching of funds or otherwise.<br/>
<br/>
<a id="bill.5.7.0"></a><a id="pl.57.29"></a><var>57.29</var>    Sec. 7. Minnesota Statutes 2014, section 298.001, subdivision 8, is amended to read:<br/>
<a id="pl.57.30"></a><var>57.30</var>    Subd. 8. <b>Commissioner.</b> "Commissioner" means the commissioner of revenue <br/>
<a id="pl.57.31"></a><var>57.31</var>of the state of Minnesota, except that when used in sections 298.22 to 298.227, and <br/>
<a id="pl.57.32"></a><var>57.32</var>298.291 to 298.298, "commissioner" means the commissioner of Iron Range resources <br/>
<a id="pl.57.33"></a><var>57.33</var>and rehabilitation.<br/>
<br/>
<a id="bill.5.8.0"></a><a id="pl.58.1"></a><var>58.1</var>    Sec. 8. Minnesota Statutes 2014, section 298.22, subdivision 1a, is amended to read:<br/>
<a id="pl.58.2"></a><var>58.2</var>    Subd. 1a. <b>Iron Range Resources and Rehabilitation Board.</b> The Iron Range <br/>
<a id="pl.58.3"></a><var>58.3</var>Resources and Rehabilitation Board consists of the state senators and representatives <br/>
<a id="pl.58.4"></a><var>58.4</var>elected from state senatorial or legislative districts in which one-third or more of the <br/>
<a id="pl.58.5"></a><var>58.5</var>residents reside in a taconite assistance area as defined in section 
         <statute_ref>273.1341</statute_ref>. One additional <br/>
<a id="pl.58.6"></a><var>58.6</var>state senator shall also be appointed by the senate Subcommittee on Committees of the <br/>
<a id="pl.58.7"></a><var>58.7</var>Committee on Rules and Administration. All expenditures and projects made by the <br/>
<a id="pl.58.8"></a><var>58.8</var>commissioner shall first be submitted to the board for approval. The board shall recommend <br/>
<a id="pl.58.9"></a><var>58.9</var>approval or disapproval or modification of the expenditures and projects. The expenses <br/>
<a id="pl.58.10"></a><var>58.10</var>of the board shall be paid by the state from the funds raised pursuant to this section. <br/>
<a id="pl.58.11"></a><var>58.11</var>Members of the board may be reimbursed for expenses in the manner provided in sections <br/>
<statute_ref><a id="pl.58.12"></a><var>58.12</var>3.099
         </statute_ref>, subdivision 1, and 
         <statute_ref>3.101</statute_ref>, and may receive per diem payments during the interims <br/>
<a id="pl.58.13"></a><var>58.13</var>between legislative sessions in the manner provided in section 
         <statute_ref>3.099, subdivision 1</statute_ref>.<br/>
<a id="pl.58.14"></a><var>58.14</var>The members shall be appointed in January of every odd-numbered year, and shall <br/>
<a id="pl.58.15"></a><var>58.15</var>serve until January of the next odd-numbered year. Vacancies on the board shall be filled <br/>
<a id="pl.58.16"></a><var>58.16</var>in the same manner as original members were chosen.<br/>
<br/>
<a id="bill.5.9.0"></a><a id="pl.58.17"></a><var>58.17</var>    Sec. 9. Minnesota Statutes 2014, section 298.22, subdivision 5a, is amended to read:<br/>
<a id="pl.58.18"></a><var>58.18</var>    Subd. 5a. <b>Forest trust.</b> The commissioner, upon approval by after requesting a <br/>
<a id="pl.58.19"></a><var>58.19</var>recommendation from the board, may purchase forest lands in the taconite assistance area <br/>
<a id="pl.58.20"></a><var>58.20</var>defined in under section 
         <statute_ref>273.1341 </statute_ref>with funds specifically authorized for the purchase. The <br/>
<a id="pl.58.21"></a><var>58.21</var>acquired forest lands must be held in trust for the benefit of the citizens of the taconite <br/>
<a id="pl.58.22"></a><var>58.22</var>assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall <br/>
<a id="pl.58.23"></a><var>58.23</var>be managed and developed for recreation and economic development purposes. The <br/>
<a id="pl.58.24"></a><var>58.24</var>commissioner, upon approval by after requesting a recommendation from the board, <br/>
<a id="pl.58.25"></a><var>58.25</var>may sell forest lands purchased under this subdivision if the board finds commissioner <br/>
<a id="pl.58.26"></a><var>58.26</var>determines that the sale advances the purposes of the trust. Proceeds derived from the <br/>
<a id="pl.58.27"></a><var>58.27</var>management or sale of the lands and from the sale of timber or removal of gravel or <br/>
<a id="pl.58.28"></a><var>58.28</var>other minerals from these forest lands shall be deposited into an Iron Range Miners' <br/>
<a id="pl.58.29"></a><var>58.29</var>Memorial Forest account that is established within the state financial accounts. Funds may <br/>
<a id="pl.58.30"></a><var>58.30</var>be expended from the account upon approval by after the commissioner has sought a <br/>
<a id="pl.58.31"></a><var>58.31</var>recommendation from the board, to purchase, manage, administer, convey interests in, <br/>
<a id="pl.58.32"></a><var>58.32</var>and improve the forest lands. With approval by After the commissioner has sought a <br/>
<a id="pl.58.33"></a><var>58.33</var>recommendation from the board, money in the Iron Range Miners' Memorial Forest <br/>
<a id="pl.58.34"></a><var>58.34</var>account may be transferred into the corpus of the Douglas J. Johnson economic protection <br/>
<a id="pl.58.35"></a><var>58.35</var>trust fund established under sections 
         <statute_ref>298.291 </statute_ref>to 
         <statute_ref>298.294</statute_ref>. The property acquired under <br/>
<a id="pl.59.1"></a><var>59.1</var>the authority granted by this subdivision and income derived from the property or the <br/>
<a id="pl.59.2"></a><var>59.2</var>operation or management of the property are exempt from taxation by the state or its <br/>
<a id="pl.59.3"></a><var>59.3</var>political subdivisions while held by the forest trust.<br/>
<br/>
<a id="bill.5.10.0"></a><a id="pl.59.4"></a><var>59.4</var>    Sec. 10. Minnesota Statutes 2014, section 298.22, subdivision 6, is amended to read:<br/>
<a id="pl.59.5"></a><var>59.5</var>    Subd. 6. <b>Private entity participation.</b> After seeking a recommendation from the <br/>
<a id="pl.59.6"></a><var>59.6</var>board, the commissioner may acquire an equity interest in any project for which it the <br/>
<a id="pl.59.7"></a><var>59.7</var>commissioner provides funding. The commissioner may establish, participate in the <br/>
<a id="pl.59.8"></a><var>59.8</var>management of, and dispose of the assets of charitable foundations, nonprofit limited <br/>
<a id="pl.59.9"></a><var>59.9</var>liability companies, and nonprofit corporations associated with any project for which it <br/>
<a id="pl.59.10"></a><var>59.10</var>provides funding, including specifically, but without limitation, a corporation within the <br/>
<a id="pl.59.11"></a><var>59.11</var>meaning of section 
         <statute_ref>317A.011, subdivision 6</statute_ref>.<br/>
<br/>
<a id="bill.5.11.0"></a><a id="pl.59.12"></a><var>59.12</var>    Sec. 11. Minnesota Statutes 2014, section 298.22, subdivision 8, is amended to read:<br/>
<a id="pl.59.13"></a><var>59.13</var>    Subd. 8. <b>Spending priority.</b> In making or approving recommending any <br/>
<a id="pl.59.14"></a><var>59.14</var>expenditures on programs or projects, the commissioner and the board shall give the <br/>
<a id="pl.59.15"></a><var>59.15</var>highest priority to programs and projects that target relief to those areas of the taconite <br/>
<a id="pl.59.16"></a><var>59.16</var>assistance area as defined in section 
         <statute_ref>273.1341</statute_ref>, that have the largest percentages of job <br/>
<a id="pl.59.17"></a><var>59.17</var>losses and population losses directly attributable to the economic downturn in the taconite <br/>
<a id="pl.59.18"></a><var>59.18</var>industry since the 1980s. The commissioner and the board shall compare the 1980 <br/>
<a id="pl.59.19"></a><var>59.19</var>population and employment figures with the 2000 population and employment figures, <br/>
<a id="pl.59.20"></a><var>59.20</var>and shall specifically consider the job losses in 2000 and 2001 resulting from the closure <br/>
<a id="pl.59.21"></a><var>59.21</var>of LTV Steel Mining Company, in making or approving recommending expenditures <br/>
<a id="pl.59.22"></a><var>59.22</var>consistent with this subdivision, as well as the areas of residence of persons who suffered <br/>
<a id="pl.59.23"></a><var>59.23</var>job loss for which relief is to be targeted under this subdivision. The commissioner <br/>
<a id="pl.59.24"></a><var>59.24</var>may lease, for a term not exceeding 50 years and upon the terms determined by the <br/>
<a id="pl.59.25"></a><var>59.25</var>commissioner and approved after seeking review by the board, surface and mineral <br/>
<a id="pl.59.26"></a><var>59.26</var>interests owned or acquired by the state of Minnesota acting by and through the office of <br/>
<a id="pl.59.27"></a><var>59.27</var>the commissioner of Iron Range resources and rehabilitation within those portions of the <br/>
<a id="pl.59.28"></a><var>59.28</var>taconite assistance area affected by the closure of the LTV Steel Mining Company facility <br/>
<a id="pl.59.29"></a><var>59.29</var>near Hoyt Lakes. The payments and royalties from these leases must be deposited into the <br/>
<a id="pl.59.30"></a><var>59.30</var>fund established in section 
         <statute_ref>298.292</statute_ref>. This subdivision supersedes any other conflicting <br/>
<a id="pl.59.31"></a><var>59.31</var>provisions of law and does not preclude the commissioner and the board from making <br/>
<a id="pl.59.32"></a><var>59.32</var>expenditures for programs and projects in other areas after seeking review by the board.<br/>
<br/>
<a id="bill.5.12.0"></a><a id="pl.59.33"></a><var>59.33</var>    Sec. 12. Minnesota Statutes 2014, section 298.22, subdivision 10, is amended to read:<br/>
<a id="pl.60.1"></a><var>60.1</var>    Subd. 10. <b>Sale or privatization of functions.</b> The commissioner of Iron <br/>
<a id="pl.60.2"></a><var>60.2</var>Range resources and rehabilitation may not sell or privatize the Ironworld Discovery <br/>
<a id="pl.60.3"></a><var>60.3</var>Center or Giants Ridge Golf and Ski Resort without prior approval by first seeking a <br/>
<a id="pl.60.4"></a><var>60.4</var>recommendation from the board.<br/>
<br/>
<a id="bill.5.13.0"></a><a id="pl.60.5"></a><var>60.5</var>    Sec. 13. Minnesota Statutes 2014, section 298.22, subdivision 11, is amended to read:<br/>
<a id="pl.60.6"></a><var>60.6</var>    Subd. 11. <b>Budgeting.</b> The commissioner of Iron Range resources and rehabilitation <br/>
<a id="pl.60.7"></a><var>60.7</var>shall annually prepare a budget for operational expenditures, programs, and projects, and <br/>
<a id="pl.60.8"></a><var>60.8</var>submit it to the Iron Range Resources and Rehabilitation Board for a recommendation. <br/>
<a id="pl.60.9"></a><var>60.9</var>After the budget is approved by the board and the governor, the commissioner may spend <br/>
<a id="pl.60.10"></a><var>60.10</var>money in accordance with the approved budget.<br/>
<br/>
<a id="bill.5.14.0"></a><a id="pl.60.11"></a><var>60.11</var>    Sec. 14. Minnesota Statutes 2014, section 298.221, is amended to read:<br/>
<a id="pl.60.12"></a><var>60.12</var><b>298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.</b><br/>
<a id="pl.60.13"></a><var>60.13</var>(a) Except as provided in paragraph (c), all money paid to the state of Minnesota <br/>
<a id="pl.60.14"></a><var>60.14</var>pursuant to the terms of any contract entered into by the state under authority of section <br/>
<statute_ref><a id="pl.60.15"></a><var>60.15</var>298.22
         </statute_ref> and any fees which may, in the discretion of the commissioner of Iron Range <br/>
<a id="pl.60.16"></a><var>60.16</var>resources and rehabilitation, be charged in connection with any project pursuant to that <br/>
<a id="pl.60.17"></a><var>60.17</var>section as amended, shall be deposited in the state treasury to the credit of the Iron Range <br/>
<a id="pl.60.18"></a><var>60.18</var>Resources and Rehabilitation Board account in the special revenue fund and are hereby <br/>
<a id="pl.60.19"></a><var>60.19</var>appropriated for the purposes of section 
         <statute_ref>298.22</statute_ref>.<br/>
<a id="pl.60.20"></a><var>60.20</var>(b) Notwithstanding section 
         <statute_ref>16A.013</statute_ref>, merchandise may be accepted by the <br/>
<a id="pl.60.21"></a><var>60.21</var>commissioner of the Iron Range Resources and Rehabilitation Board for payment of <br/>
<a id="pl.60.22"></a><var>60.22</var>advertising contracts if the commissioner determines that the merchandise can be used <br/>
<a id="pl.60.23"></a><var>60.23</var>for special event prizes or mementos at facilities operated by the board. Nothing in this <br/>
<a id="pl.60.24"></a><var>60.24</var>paragraph authorizes the commissioner or a member of the board to receive merchandise <br/>
<a id="pl.60.25"></a><var>60.25</var>for personal use.<br/>
<a id="pl.60.26"></a><var>60.26</var>(c) All fees charged by the commissioner in connection with public use of the <br/>
<a id="pl.60.27"></a><var>60.27</var>state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other <br/>
<a id="pl.60.28"></a><var>60.28</var>revenues derived by the commissioner from the operation or lease of those facilities <br/>
<a id="pl.60.29"></a><var>60.29</var>and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge <br/>
<a id="pl.60.30"></a><var>60.30</var>Recreation Area must be deposited into an Iron Range Resources and Rehabilitation <br/>
<a id="pl.60.31"></a><var>60.31</var>Board account that is created within the state enterprise fund. All funds deposited in the <br/>
<a id="pl.60.32"></a><var>60.32</var>enterprise fund account are appropriated to the commissioner to be expended, subject to <br/>
<a id="pl.60.33"></a><var>60.33</var>approval by after seeking a recommendation from the board, as follows:<br/>
<a id="pl.61.1"></a><var>61.1</var>(1) to pay costs associated with the construction, equipping, operation, repair, or <br/>
<a id="pl.61.2"></a><var>61.2</var>improvement of the Giants Ridge Recreation Area facilities or lands;<br/>
<a id="pl.61.3"></a><var>61.3</var>(2) to pay principal, interest and associated bond issuance, reserve, and servicing <br/>
<a id="pl.61.4"></a><var>61.4</var>costs associated with the financing of the facilities; and<br/>
<a id="pl.61.5"></a><var>61.5</var>(3) to pay the costs of any other project authorized under section 
         <statute_ref>298.22</statute_ref>.<br/>
<br/>
<a id="bill.5.15.0"></a><a id="pl.61.6"></a><var>61.6</var>    Sec. 15. Minnesota Statutes 2014, section 298.2211, subdivision 3, is amended to read:<br/>
<a id="pl.61.7"></a><var>61.7</var>    Subd. 3. <b>Project approval.</b> All projects authorized by this section shall be submitted <br/>
<a id="pl.61.8"></a><var>61.8</var>by the commissioner to the Iron Range Resources and Rehabilitation Board for approval <br/>
<a id="pl.61.9"></a><var>61.9</var>by a recommendation from the board. Prior to the commencement of a project involving <br/>
<a id="pl.61.10"></a><var>61.10</var>the exercise by the commissioner of any authority of sections 
         <statute_ref>469.174</statute_ref> to 
         <statute_ref>469.179</statute_ref>, the <br/>
<a id="pl.61.11"></a><var>61.11</var>governing body of each municipality in which any part of the project is located and the <br/>
<a id="pl.61.12"></a><var>61.12</var>county board of any county containing portions of the project not located in an incorporated <br/>
<a id="pl.61.13"></a><var>61.13</var>area shall by majority vote approve or disapprove the project. Any project approved by <br/>
<a id="pl.61.14"></a><var>61.14</var>the board commissioner and the applicable governing bodies, if any, together with detailed <br/>
<a id="pl.61.15"></a><var>61.15</var>information concerning the project, its costs, the sources of its funding, and the amount of <br/>
<a id="pl.61.16"></a><var>61.16</var>any bonded indebtedness to be incurred in connection with the project, shall be transmitted <br/>
<a id="pl.61.17"></a><var>61.17</var>to the governor, who shall approve, disapprove, or return the proposal for additional <br/>
<a id="pl.61.18"></a><var>61.18</var>consideration within 30 days of receipt. No project authorized under this section shall be <br/>
<a id="pl.61.19"></a><var>61.19</var>undertaken, and no obligations shall be issued and no tax increments shall be expended for <br/>
<a id="pl.61.20"></a><var>61.20</var>a project authorized under this section until the project has been approved by the governor.<br/>
<br/>
<a id="bill.5.16.0"></a><a id="pl.61.21"></a><var>61.21</var>    Sec. 16. Minnesota Statutes 2014, section 298.2213, subdivision 4, is amended to read:<br/>
<a id="pl.61.22"></a><var>61.22</var>    Subd. 4. <b>Project approval.</b> After seeking a recommendation from the board and, <br/>
<a id="pl.61.23"></a><var>61.23</var>the commissioner shall by August 1 each year prepare a list of projects to be funded from <br/>
<a id="pl.61.24"></a><var>61.24</var>the money appropriated in this section with necessary supporting information including <br/>
<a id="pl.61.25"></a><var>61.25</var>descriptions of the projects, plans, and cost estimates. A project must not be approved by <br/>
<a id="pl.61.26"></a><var>61.26</var>the board commissioner unless it the commissioner finds that:<br/>
<a id="pl.61.27"></a><var>61.27</var>(1) the project will materially assist, directly or indirectly, the creation of additional <br/>
<a id="pl.61.28"></a><var>61.28</var>long-term employment opportunities;<br/>
<a id="pl.61.29"></a><var>61.29</var>(2) the prospective benefits of the expenditure exceed the anticipated costs; and<br/>
<a id="pl.61.30"></a><var>61.30</var>(3) in the case of assistance to private enterprise, the project will serve a sound <br/>
<a id="pl.61.31"></a><var>61.31</var>business purpose.<br/>
<a id="pl.61.32"></a><var>61.32</var>Each project must be approved by the board and the commissioner of Iron Range <br/>
<a id="pl.61.33"></a><var>61.33</var>resources and rehabilitation. The list of projects must be submitted to the governor, <br/>
<a id="pl.61.34"></a><var>61.34</var>who shall, by November 15 of each year, approve, disapprove, or return for further <br/>
<a id="pl.62.1"></a><var>62.1</var>consideration, each project. The money for a project may be spent only upon approval of <br/>
<a id="pl.62.2"></a><var>62.2</var>the project by the governor. The board commissioner may submit supplemental projects <br/>
<a id="pl.62.3"></a><var>62.3</var>for approval at any time, after seeking a recommendation from the board.<br/>
<br/>
<a id="bill.5.17.0"></a><a id="pl.62.4"></a><var>62.4</var>    Sec. 17. Minnesota Statutes 2014, section 298.2213, subdivision 5, is amended to read:<br/>
<a id="pl.62.5"></a><var>62.5</var>    Subd. 5. <b>Advisory committees.</b> Before submission to the board of a proposal for <br/>
<a id="pl.62.6"></a><var>62.6</var>a project for expenditure of money appropriated under this section, The commissioner <br/>
<a id="pl.62.7"></a><var>62.7</var>of Iron Range resources and rehabilitation shall appoint a technical advisory committee <br/>
<a id="pl.62.8"></a><var>62.8</var>consisting of at least seven persons who are knowledgeable in areas related to the <br/>
<a id="pl.62.9"></a><var>62.9</var>objectives of the proposal. If the project involves investment in a scientific research <br/>
<a id="pl.62.10"></a><var>62.10</var>proposal, at least four of the committee members must be knowledgeable in the specific <br/>
<a id="pl.62.11"></a><var>62.11</var>scientific research area relating to the project. Members of the committees must be <br/>
<a id="pl.62.12"></a><var>62.12</var>compensated as provided in section 
         <statute_ref>15.059, subdivision 3</statute_ref>. The board commissioner shall <br/>
<a id="pl.62.13"></a><var>62.13</var>not act on a proposal for a request for expenditure of money appropriated under this <br/>
<a id="pl.62.14"></a><var>62.14</var>section until it has received the commissioner has sought review from the board of the <br/>
<a id="pl.62.15"></a><var>62.15</var>evaluation and recommendations of the technical advisory committee.<br/>
<br/>
<a id="bill.5.18.0"></a><a id="pl.62.16"></a><var>62.16</var>    Sec. 18. Minnesota Statutes 2014, section 298.2213, subdivision 6, is amended to read:<br/>
<a id="pl.62.17"></a><var>62.17</var>    Subd. 6. <b>Use of repayments and earnings.</b> Principal and interest received in <br/>
<a id="pl.62.18"></a><var>62.18</var>repayment of loans made under this section must be deposited in the state treasury <br/>
<a id="pl.62.19"></a><var>62.19</var>and are appropriated to the board for the purposes of this section northeast Minnesota <br/>
<a id="pl.62.20"></a><var>62.20</var>economic development fund account in the special revenue fund in the state treasury. The <br/>
<a id="pl.62.21"></a><var>62.21</var>commissioner of Iron Range resources and rehabilitation must seek a recommendation <br/>
<a id="pl.62.22"></a><var>62.22</var>from the Iron Range Resources and Rehabilitation Board for any use of funds appropriated <br/>
<a id="pl.62.23"></a><var>62.23</var>under this section.<br/>
<br/>
<a id="bill.5.19.0"></a><a id="pl.62.24"></a><var>62.24</var>    Sec. 19. Minnesota Statutes 2014, section 298.223, subdivision 1, is amended to read:<br/>
<a id="pl.62.25"></a><var>62.25</var>    Subdivision 1. <b>Creation; purposes.</b> A fund called the taconite environmental <br/>
<a id="pl.62.26"></a><var>62.26</var>protection fund is created for the purpose of reclaiming, restoring and enhancing those <br/>
<a id="pl.62.27"></a><var>62.27</var>areas of northeast Minnesota located within the taconite assistance area defined in section <br/>
<statute_ref><a id="pl.62.28"></a><var>62.28</var>273.1341
         </statute_ref>, that are adversely affected by the environmentally damaging operations <br/>
<a id="pl.62.29"></a><var>62.29</var>involved in mining taconite and iron ore and producing iron ore concentrate and for the <br/>
<a id="pl.62.30"></a><var>62.30</var>purpose of promoting the economic development of northeast Minnesota. The taconite <br/>
<a id="pl.62.31"></a><var>62.31</var>environmental protection fund shall be used for the following purposes:<br/>
<a id="pl.63.1"></a><var>63.1</var>(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation <br/>
<a id="pl.63.2"></a><var>63.2</var>Board determines are in need of study and which will determine the environmental <br/>
<a id="pl.63.3"></a><var>63.3</var>problems requiring remedial action;<br/>
<a id="pl.63.4"></a><var>63.4</var>(2) reclamation, restoration, or reforestation of mine lands not otherwise provided <br/>
<a id="pl.63.5"></a><var>63.5</var>for by state law;<br/>
<a id="pl.63.6"></a><var>63.6</var>(3) local economic development projects but only if those projects are approved by <br/>
<a id="pl.63.7"></a><var>63.7</var>the board commissioner after seeking a recommendation of the projects from the board, <br/>
<a id="pl.63.8"></a><var>63.8</var>and public works, including construction of sewer and water systems located within the <br/>
<a id="pl.63.9"></a><var>63.9</var>taconite assistance area defined in section 
         <statute_ref>273.1341</statute_ref>;<br/>
<a id="pl.63.10"></a><var>63.10</var>(4) monitoring of mineral industry related health problems among mining employees;<br/>
<a id="pl.63.11"></a><var>63.11</var>(5) local public works projects under section 
         <statute_ref>298.227</statute_ref>, paragraph (c); and<br/>
<a id="pl.63.12"></a><var>63.12</var>(6) local public works projects as provided under this clause. The following amounts <br/>
<a id="pl.63.13"></a><var>63.13</var>shall be distributed in 2009 based upon the taxable tonnage of production in 2008:<br/>
<a id="pl.63.14"></a><var>63.14</var>(i) .4651 cent per ton to the city of Aurora for street repair and renovation;<br/>
<a id="pl.63.15"></a><var>63.15</var>(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure <br/>
<a id="pl.63.16"></a><var>63.16</var>improvements to the south side industrial site;<br/>
<a id="pl.63.17"></a><var>63.17</var>(iii) .6460 cent per ton to the city of Buhl for street repair;<br/>
<a id="pl.63.18"></a><var>63.18</var>(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;<br/>
<a id="pl.63.19"></a><var>63.19</var>(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure <br/>
<a id="pl.63.20"></a><var>63.20</var>upgrades;<br/>
<a id="pl.63.21"></a><var>63.21</var>(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure <br/>
<a id="pl.63.22"></a><var>63.22</var>upgrades;<br/>
<a id="pl.63.23"></a><var>63.23</var>(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;<br/>
<a id="pl.63.24"></a><var>63.24</var>(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility <br/>
<a id="pl.63.25"></a><var>63.25</var>modifications for the miners' memorial;<br/>
<a id="pl.63.26"></a><var>63.26</var>(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;<br/>
<a id="pl.63.27"></a><var>63.27</var>(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;<br/>
<a id="pl.63.28"></a><var>63.28</var>(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;<br/>
<a id="pl.63.29"></a><var>63.29</var>(xii) .6460 cent per ton to the town of Balkan for community center repairs;<br/>
<a id="pl.63.30"></a><var>63.30</var>(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;<br/>
<a id="pl.63.31"></a><var>63.31</var>(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;<br/>
<a id="pl.63.32"></a><var>63.32</var>(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;<br/>
<a id="pl.63.33"></a><var>63.33</var>(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;<br/>
<a id="pl.63.34"></a><var>63.34</var>(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;<br/>
<a id="pl.63.35"></a><var>63.35</var>(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;<br/>
<a id="pl.63.36"></a><var>63.36</var>(xix) .3230 cent per ton to Lake County for trail construction;<br/>
<a id="pl.64.1"></a><var>64.1</var>(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand <br/>
<a id="pl.64.2"></a><var>64.2</var>Marais;<br/>
<a id="pl.64.3"></a><var>64.3</var>(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure <br/>
<a id="pl.64.4"></a><var>64.4</var>improvements;<br/>
<a id="pl.64.5"></a><var>64.5</var>(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;<br/>
<a id="pl.64.6"></a><var>64.6</var>(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer <br/>
<a id="pl.64.7"></a><var>64.7</var>improvements along Gayley Avenue;<br/>
<a id="pl.64.8"></a><var>64.8</var>(xxiv) .3876 cent per ton to the city of Marble for construction of a city <br/>
<a id="pl.64.9"></a><var>64.9</var>administration facility;<br/>
<a id="pl.64.10"></a><var>64.10</var>(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the <br/>
<a id="pl.64.11"></a><var>64.11</var>community center;<br/>
<a id="pl.64.12"></a><var>64.12</var>(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure <br/>
<a id="pl.64.13"></a><var>64.13</var>upgrades;<br/>
<a id="pl.64.14"></a><var>64.14</var>(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades <br/>
<a id="pl.64.15"></a><var>64.15</var>along Depot Street;<br/>
<a id="pl.64.16"></a><var>64.16</var>(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter <br/>
<a id="pl.64.17"></a><var>64.17</var>improvements;<br/>
<a id="pl.64.18"></a><var>64.18</var>(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer <br/>
<a id="pl.64.19"></a><var>64.19</var>infrastructure upgrades at Pokegema Golf Course and Park Place;<br/>
<a id="pl.64.20"></a><var>64.20</var>(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades <br/>
<a id="pl.64.21"></a><var>64.21</var>for 1st Avenue from River Road to 3rd Street SE; and<br/>
<a id="pl.64.22"></a><var>64.22</var>(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing <br/>
<a id="pl.64.23"></a><var>64.23</var>at Highway 2 and County Road 62.<br/>
<br/>
<a id="bill.5.20.0"></a><a id="pl.64.24"></a><var>64.24</var>    Sec. 20. Minnesota Statutes 2014, section 298.223, subdivision 2, is amended to read:<br/>
<a id="pl.64.25"></a><var>64.25</var>    Subd. 2. <b>Administration.</b> (a) The taconite area environmental protection fund shall <br/>
<a id="pl.64.26"></a><var>64.26</var>be administered by the commissioner of the Iron Range Resources and Rehabilitation <br/>
<a id="pl.64.27"></a><var>64.27</var>Board. The commissioner shall by September 1 of each year submit to the board a list <br/>
<a id="pl.64.28"></a><var>64.28</var>of projects to be funded from the taconite area environmental protection fund, with such <br/>
<a id="pl.64.29"></a><var>64.29</var>supporting information including description of the projects, plans, and cost estimates as <br/>
<a id="pl.64.30"></a><var>64.30</var>may be necessary.<br/>
<a id="pl.64.31"></a><var>64.31</var>    (b) Each year no less than one-half of the amounts deposited into the taconite <br/>
<a id="pl.64.32"></a><var>64.32</var>environmental protection fund must be used for public works projects, including <br/>
<a id="pl.64.33"></a><var>64.33</var>construction of sewer and water systems, as specified under subdivision 1, clause (3). <br/>
<a id="pl.64.34"></a><var>64.34</var>After seeking a recommendation from the Iron Range Resources and Rehabilitation Board, <br/>
<a id="pl.64.35"></a><var>64.35</var>the commissioner may waive the requirements of this paragraph.<br/>
<a id="pl.65.1"></a><var>65.1</var>    (c) Upon approval by the board, The list of projects approved by the commissioner <br/>
<a id="pl.65.2"></a><var>65.2</var>under this subdivision, after the commissioner has sought review of the projects by the <br/>
<a id="pl.65.3"></a><var>65.3</var>board, shall be submitted to the governor by November 1 of each year. By December 1 of <br/>
<a id="pl.65.4"></a><var>65.4</var>each year, the governor shall approve or disapprove, or return for further consideration, <br/>
<a id="pl.65.5"></a><var>65.5</var>each project. Funds for a project may be expended only upon approval of the project by <br/>
<a id="pl.65.6"></a><var>65.6</var>the board commissioner and the governor. The commissioner may submit supplemental <br/>
<a id="pl.65.7"></a><var>65.7</var>projects to the board and for approval from the governor for approval after seeking review <br/>
<a id="pl.65.8"></a><var>65.8</var>of the supplemental projects from the board at any time.<br/>
<br/>
<a id="bill.5.21.0"></a><a id="pl.65.9"></a><var>65.9</var>    Sec. 21. Minnesota Statutes 2014, section 298.227, is amended to read:<br/>
<a id="pl.65.10"></a><var>65.10</var><b>298.227 TACONITE ECONOMIC DEVELOPMENT FUND.</b><br/>
<a id="pl.65.11"></a><var>65.11</var>    (a) An amount equal to that distributed pursuant to each taconite producer's taxable <br/>
<a id="pl.65.12"></a><var>65.12</var>production and qualifying sales under section 
         <statute_ref>298.28, subdivision 9a</statute_ref>, shall be held by <br/>
<a id="pl.65.13"></a><var>65.13</var>the Iron Range Resources and Rehabilitation Board in a separate taconite economic <br/>
<a id="pl.65.14"></a><var>65.14</var>development fund for each taconite and direct reduced ore producer. Money from the <br/>
<a id="pl.65.15"></a><var>65.15</var>fund for each producer shall be released by the commissioner after review by a joint <br/>
<a id="pl.65.16"></a><var>65.16</var>committee consisting of an equal number of representatives of the salaried employees and <br/>
<a id="pl.65.17"></a><var>65.17</var>the nonsalaried production and maintenance employees of that producer. The District 11 <br/>
<a id="pl.65.18"></a><var>65.18</var>director of the United States Steelworkers of America, on advice of each local employee <br/>
<a id="pl.65.19"></a><var>65.19</var>president, shall select the employee members. In nonorganized operations, the employee <br/>
<a id="pl.65.20"></a><var>65.20</var>committee shall be elected by the nonsalaried production and maintenance employees. The <br/>
<a id="pl.65.21"></a><var>65.21</var>review must be completed no later than six months after the producer presents a proposal <br/>
<a id="pl.65.22"></a><var>65.22</var>for expenditure of the funds to the committee. The funds held pursuant to this section may <br/>
<a id="pl.65.23"></a><var>65.23</var>be released only for workforce development and associated public facility improvement, <br/>
<a id="pl.65.24"></a><var>65.24</var>or for acquisition of plant and stationary mining equipment and facilities for the producer <br/>
<a id="pl.65.25"></a><var>65.25</var>or for research and development in Minnesota on new mining, or taconite, iron, or steel <br/>
<a id="pl.65.26"></a><var>65.26</var>production technology, but only if the producer provides a matching expenditure equal to <br/>
<a id="pl.65.27"></a><var>65.27</var>the amount of the distribution to be used for the same purpose beginning with distributions <br/>
<a id="pl.65.28"></a><var>65.28</var>in 2014. Effective for proposals for expenditures of money from the fund beginning May <br/>
<a id="pl.65.29"></a><var>65.29</var>26, 2007, the commissioner may not release the funds before the next scheduled meeting <br/>
<a id="pl.65.30"></a><var>65.30</var>of the board. If a proposed expenditure is not approved by the commissioner, after <br/>
<a id="pl.65.31"></a><var>65.31</var>seeking a recommendation from the board, the funds must be deposited in the Taconite <br/>
<a id="pl.65.32"></a><var>65.32</var>Environmental Protection Fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a producer uses <br/>
<a id="pl.65.33"></a><var>65.33</var>money which has been released from the fund prior to May 26, 2007 to procure haulage <br/>
<a id="pl.65.34"></a><var>65.34</var>trucks, mobile equipment, or mining shovels, and the producer removes the piece of <br/>
<a id="pl.65.35"></a><var>65.35</var>equipment from the taconite tax relief area defined in section 
         <statute_ref>273.134</statute_ref> within ten years <br/>
<a id="pl.66.1"></a><var>66.1</var>from the date of receipt of the money from the fund, a portion of the money granted <br/>
<a id="pl.66.2"></a><var>66.2</var>from the fund must be repaid to the taconite economic development fund. The portion <br/>
<a id="pl.66.3"></a><var>66.3</var>of the money to be repaid is 100 percent of the grant if the equipment is removed from <br/>
<a id="pl.66.4"></a><var>66.4</var>the taconite tax relief area within 12 months after receipt of the money from the fund, <br/>
<a id="pl.66.5"></a><var>66.5</var>declining by ten percent for each of the subsequent nine years during which the equipment <br/>
<a id="pl.66.6"></a><var>66.6</var>remains within the taconite tax relief area. If a taconite production facility is sold after <br/>
<a id="pl.66.7"></a><var>66.7</var>operations at the facility had ceased, any money remaining in the fund for the former <br/>
<a id="pl.66.8"></a><var>66.8</var>producer may be released to the purchaser of the facility on the terms otherwise applicable <br/>
<a id="pl.66.9"></a><var>66.9</var>to the former producer under this section. If a producer fails to provide matching funds <br/>
<a id="pl.66.10"></a><var>66.10</var>for a proposed expenditure within six months after the commissioner approves release <br/>
<a id="pl.66.11"></a><var>66.11</var>of the funds, the funds are available for release to another producer in proportion to the <br/>
<a id="pl.66.12"></a><var>66.12</var>distribution provided and under the conditions of this section. Any portion of the fund <br/>
<a id="pl.66.13"></a><var>66.13</var>which is not released by the commissioner within one year of its deposit in the fund shall <br/>
<a id="pl.66.14"></a><var>66.14</var>be divided between the taconite environmental protection fund created in section 
         <statute_ref>298.223 <br/>
</statute_ref><a id="pl.66.15"></a><var>66.15</var>and the Douglas J. Johnson economic protection trust fund created in section 
         <statute_ref>298.292</statute_ref> for <br/>
<a id="pl.66.16"></a><var>66.16</var>placement in their respective special accounts. Two-thirds of the unreleased funds shall be <br/>
<a id="pl.66.17"></a><var>66.17</var>distributed to the taconite environmental protection fund and one-third to the Douglas J. <br/>
<a id="pl.66.18"></a><var>66.18</var>Johnson economic protection trust fund.<br/>
<a id="pl.66.19"></a><var>66.19</var>    (b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of <br/>
<a id="pl.66.20"></a><var>66.20</var>distributions and the review process, an amount equal to ten cents per taxable ton of <br/>
<a id="pl.66.21"></a><var>66.21</var>production in 2007, for distribution in 2008 only, that would otherwise be distributed <br/>
<a id="pl.66.22"></a><var>66.22</var>under paragraph (a), may be used for a loan or grant for the cost of providing for a <br/>
<a id="pl.66.23"></a><var>66.23</var>value-added wood product facility located in the taconite tax relief area and in a county <br/>
<a id="pl.66.24"></a><var>66.24</var>that contains a city of the first class. This amount must be deducted from the distribution <br/>
<a id="pl.66.25"></a><var>66.25</var>under paragraph (a) for which a matching expenditure by the producer is not required. The <br/>
<a id="pl.66.26"></a><var>66.26</var>granting of the loan or grant is subject to approval by the board. If the money is provided <br/>
<a id="pl.66.27"></a><var>66.27</var>as a loan, interest must be payable on the loan at the rate prescribed in section 
         <statute_ref>298.2213, <br/>
<a id="pl.66.28"></a><var>66.28</var>subdivision 3
         </statute_ref>. (ii) Repayments of the loan and interest, if any, must be deposited in the <br/>
<a id="pl.66.29"></a><var>66.29</var>taconite environment protection fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. If a loan or <br/>
<a id="pl.66.30"></a><var>66.30</var>grant is not made under this paragraph by July 1, 2012, the amount that had been made <br/>
<a id="pl.66.31"></a><var>66.31</var>available for the loan under this paragraph must be transferred to the taconite environment <br/>
<a id="pl.66.32"></a><var>66.32</var>protection fund under sections 
         <statute_ref>298.222</statute_ref> to 
         <statute_ref>298.225</statute_ref>. (iii) Money distributed in 2008 to the <br/>
<a id="pl.66.33"></a><var>66.33</var>fund established under this section that exceeds ten cents per ton is available to qualifying <br/>
<a id="pl.66.34"></a><var>66.34</var>producers under paragraph (a) on a pro rata basis.<br/>
<a id="pl.66.35"></a><var>66.35</var>(c) Repayment or transfer of money to the taconite environmental protection fund <br/>
<a id="pl.66.36"></a><var>66.36</var>under paragraph (b), item (ii), must be allocated by the commissioner of Iron Range <br/>
<a id="pl.67.1"></a><var>67.1</var>resources and rehabilitation, after seeking a recommendation from the Iron Range <br/>
<a id="pl.67.2"></a><var>67.2</var>Resources and Rehabilitation Board for public works projects in house legislative districts <br/>
<a id="pl.67.3"></a><var>67.3</var>in the same proportion as taxable tonnage of production in 2007 in each house legislative <br/>
<a id="pl.67.4"></a><var>67.4</var>district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for <br/>
<a id="pl.67.5"></a><var>67.5</var>distribution in 2008. Notwithstanding any other law to the contrary, expenditures under <br/>
<a id="pl.67.6"></a><var>67.6</var>this paragraph do not require approval by the governor. For purposes of this paragraph, <br/>
<a id="pl.67.7"></a><var>67.7</var>"house legislative districts" means the legislative districts in existence on May 15, 2009.<br/>
<br/>
<a id="bill.5.22.0"></a><a id="pl.67.8"></a><var>67.8</var>    Sec. 22. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:<br/>
<a id="pl.67.9"></a><var>67.9</var>    Subd. 7a. <b>Iron Range school consolidation and cooperatively operated school </b><br/>
<a id="pl.67.10"></a><var>67.10</var><b>account.</b> The following amounts must be allocated to the Iron Range Resources and <br/>
<a id="pl.67.11"></a><var>67.11</var>Rehabilitation Board to be deposited in the Iron Range school consolidation and <br/>
<a id="pl.67.12"></a><var>67.12</var>cooperatively operated school account that is hereby created:<br/>
<a id="pl.67.13"></a><var>67.13</var>(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax <br/>
<a id="pl.67.14"></a><var>67.14</var>imposed under section 
         <statute_ref>298.24</statute_ref>; and (ii) for distributions beginning in 2024, five cents per <br/>
<a id="pl.67.15"></a><var>67.15</var>taxable ton of the tax imposed under section 
         <statute_ref>298.24</statute_ref>;<br/>
<a id="pl.67.16"></a><var>67.16</var>(2) the amount as determined under section 
         <statute_ref>298.17</statute_ref>, paragraph (b), clause (3);<br/>
<a id="pl.67.17"></a><var>67.17</var>(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax <br/>
<a id="pl.67.18"></a><var>67.18</var>proceeds attributable to the increase in the implicit price deflator as provided in section <br/>
<statute_ref><a id="pl.67.19"></a><var>67.19</var>298.24, subdivision 1
         </statute_ref>, with the remaining one-third to be distributed to the Douglas J. <br/>
<a id="pl.67.20"></a><var>67.20</var>Johnson economic protection trust fund;<br/>
<a id="pl.67.21"></a><var>67.21</var>(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the <br/>
<a id="pl.67.22"></a><var>67.22</var>increased tax proceeds attributable to the increase in the implicit price deflator as provided <br/>
<a id="pl.67.23"></a><var>67.23</var>in section 
         <statute_ref>298.24, subdivision 1</statute_ref>, for distribution years 2015 and 2016, with the remaining <br/>
<a id="pl.67.24"></a><var>67.24</var>one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and<br/>
<a id="pl.67.25"></a><var>67.25</var>(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the <br/>
<a id="pl.67.26"></a><var>67.26</var>increased tax proceeds attributable to the increase in the implicit price deflator as provided <br/>
<a id="pl.67.27"></a><var>67.27</var>in section 
         <statute_ref>298.24, subdivision 1</statute_ref>, for distribution years 2015, 2016, and 2017, with the <br/>
<a id="pl.67.28"></a><var>67.28</var>remaining one-third to be distributed to the Douglas J. Johnson economic protection <br/>
<a id="pl.67.29"></a><var>67.29</var>trust fund; and<br/>
<a id="pl.67.30"></a><var>67.30</var>(4) any other amount as provided by law.<br/>
<a id="pl.67.31"></a><var>67.31</var>Expenditures from this account may be approved as ongoing annual expenditures and <br/>
<a id="pl.67.32"></a><var>67.32</var>shall be made only to provide disbursements to assist school districts with the payment of <br/>
<a id="pl.67.33"></a><var>67.33</var>bonds that were issued for qualified school projects, or for any other school disbursement <br/>
<a id="pl.67.34"></a><var>67.34</var>as approved by the commissioner after the commissioner has sought review of the <br/>
<a id="pl.67.35"></a><var>67.35</var>expenditures by the Iron Range Resources and Rehabilitation Board. For purposes of this <br/>
<a id="pl.68.1"></a><var>68.1</var>section, "qualified school projects" means school projects within the taconite assistance <br/>
<a id="pl.68.2"></a><var>68.2</var>area as defined in section 
         <statute_ref>273.1341</statute_ref>, that were (1) approved, by referendum, after April 3, <br/>
<a id="pl.68.3"></a><var>68.3</var>2006; and (2) approved by the commissioner of education pursuant to section 
         <statute_ref>123B.71</statute_ref>.<br/>
<a id="pl.68.4"></a><var>68.4</var>Beginning in fiscal year 2019, the disbursement to school districts for payments for <br/>
<a id="pl.68.5"></a><var>68.5</var>bonds issued under section 
         <statute_ref>123A.482</statute_ref>, subdivision 9, must be increased each year to <br/>
<a id="pl.68.6"></a><var>68.6</var>offset any reduction in debt service equalization aid that the school district qualifies for in <br/>
<a id="pl.68.7"></a><var>68.7</var>that year, under section 
         <statute_ref>123B.53, subdivision 6</statute_ref>, compared with the amount the school <br/>
<a id="pl.68.8"></a><var>68.8</var>district qualified for in fiscal year 2018.<br/>
<a id="pl.68.9"></a><var>68.9</var>No expenditure under this section shall be made unless approved by seven members <br/>
<a id="pl.68.10"></a><var>68.10</var>of the commissioner after seeking review of the expenditure from the Iron Range <br/>
<a id="pl.68.11"></a><var>68.11</var>Resources and Rehabilitation Board.<br/>
<br/>
<a id="bill.5.23.0"></a><a id="pl.68.12"></a><var>68.12</var>    Sec. 23. Minnesota Statutes 2014, section 298.28, subdivision 9d, is amended to read:<br/>
<a id="pl.68.13"></a><var>68.13</var>    Subd. 9d. <b>Iron Range higher education account.</b> Five cents per taxable ton must <br/>
<a id="pl.68.14"></a><var>68.14</var>be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in <br/>
<a id="pl.68.15"></a><var>68.15</var>an Iron Range higher education account that is hereby created, to be used for higher <br/>
<a id="pl.68.16"></a><var>68.16</var>education programs conducted at educational institutions in the taconite assistance area <br/>
<a id="pl.68.17"></a><var>68.17</var>defined in section 
         <statute_ref>273.1341</statute_ref>. The Iron Range Higher Education committee under section <br/>
<statute_ref><a id="pl.68.18"></a><var>68.18</var>298.2214,
         </statute_ref> and the Iron Range Resources and Rehabilitation Board commissioner must <br/>
<a id="pl.68.19"></a><var>68.19</var>approve all expenditures from the account, after seeking review and recommendation of <br/>
<a id="pl.68.20"></a><var>68.20</var>the expenditures from the Iron Range Resources and Rehabilitation Board.<br/>
<br/>
<a id="bill.5.24.0"></a><a id="pl.68.21"></a><var>68.21</var>    Sec. 24. Minnesota Statutes 2014, section 298.292, subdivision 2, is amended to read:<br/>
<a id="pl.68.22"></a><var>68.22</var>    Subd. 2. <b>Use of money.</b> Money in the Douglas J. Johnson economic protection trust <br/>
<a id="pl.68.23"></a><var>68.23</var>fund may be used for the following purposes:<br/>
<a id="pl.68.24"></a><var>68.24</var>    (1) to provide loans, loan guarantees, interest buy-downs and other forms of <br/>
<a id="pl.68.25"></a><var>68.25</var>participation with private sources of financing, but a loan to a private enterprise shall be <br/>
<a id="pl.68.26"></a><var>68.26</var>for a principal amount not to exceed one-half of the cost of the project for which financing <br/>
<a id="pl.68.27"></a><var>68.27</var>is sought, and the rate of interest on a loan to a private enterprise shall be no less than the <br/>
<a id="pl.68.28"></a><var>68.28</var>lesser of eight percent or an interest rate three percentage points less than a full faith <br/>
<a id="pl.68.29"></a><var>68.29</var>and credit obligation of the United States government of comparable maturity, at the <br/>
<a id="pl.68.30"></a><var>68.30</var>time that the loan is approved;<br/>
<a id="pl.68.31"></a><var>68.31</var>    (2) to fund reserve accounts established to secure the payment when due of the <br/>
<a id="pl.68.32"></a><var>68.32</var>principal of and interest on bonds issued pursuant to section 
         <statute_ref>298.2211</statute_ref>;<br/>
<a id="pl.68.33"></a><var>68.33</var>    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest <br/>
<a id="pl.68.34"></a><var>68.34</var>on bonds issued pursuant to chapter 474 for the purpose of constructing, converting, <br/>
<a id="pl.69.1"></a><var>69.1</var>or retrofitting heating facilities in connection with district heating systems or systems <br/>
<a id="pl.69.2"></a><var>69.2</var>utilizing alternative energy sources;<br/>
<a id="pl.69.3"></a><var>69.3</var>    (4) to invest in a venture capital fund or enterprise that will provide capital to other <br/>
<a id="pl.69.4"></a><var>69.4</var>entities that are engaging in, or that will engage in, projects or programs that have the <br/>
<a id="pl.69.5"></a><var>69.5</var>purposes set forth in subdivision 1. No investments may be made in a venture capital fund <br/>
<a id="pl.69.6"></a><var>69.6</var>or enterprise unless at least two other unrelated investors make investments of at least <br/>
<a id="pl.69.7"></a><var>69.7</var>$500,000 in the venture capital fund or enterprise, and the investment by the Douglas <br/>
<a id="pl.69.8"></a><var>69.8</var>J. Johnson economic protection trust fund may not exceed the amount of the largest <br/>
<a id="pl.69.9"></a><var>69.9</var>investment by an unrelated investor in the venture capital fund or enterprise. For purposes <br/>
<a id="pl.69.10"></a><var>69.10</var>of this subdivision, an "unrelated investor" is a person or entity that is not related to <br/>
<a id="pl.69.11"></a><var>69.11</var>the entity in which the investment is made or to any individual who owns more than 40 <br/>
<a id="pl.69.12"></a><var>69.12</var>percent of the value of the entity, in any of the following relationships: spouse, parent, <br/>
<a id="pl.69.13"></a><var>69.13</var>child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of <br/>
<a id="pl.69.14"></a><var>69.14</var>the value of all interests in it. For purposes of determining the limitations under this <br/>
<a id="pl.69.15"></a><var>69.15</var>clause, the amount of investments made by an investor other than the Douglas J. Johnson <br/>
<a id="pl.69.16"></a><var>69.16</var>economic protection trust fund is the sum of all investments made in the venture capital <br/>
<a id="pl.69.17"></a><var>69.17</var>fund or enterprise during the period beginning one year before the date of the investment <br/>
<a id="pl.69.18"></a><var>69.18</var>by the Douglas J. Johnson economic protection trust fund; and<br/>
<a id="pl.69.19"></a><var>69.19</var>    (5) to purchase forest land in the taconite assistance area defined in section 
         <statute_ref>273.1341 <br/>
</statute_ref><a id="pl.69.20"></a><var>69.20</var>to be held and managed as a public trust for the benefit of the area for the purposes <br/>
<a id="pl.69.21"></a><var>69.21</var>authorized in section 
         <statute_ref>298.22, subdivision 5a</statute_ref>. Property purchased under this section may <br/>
<a id="pl.69.22"></a><var>69.22</var>be sold by the commissioner upon approval by after seeking a recommendation from <br/>
<a id="pl.69.23"></a><var>69.23</var>the board. The net proceeds must be deposited in the trust fund for the purposes and <br/>
<a id="pl.69.24"></a><var>69.24</var>uses of this section.<br/>
<a id="pl.69.25"></a><var>69.25</var>    Money from the trust fund shall be expended only in or for the benefit of the taconite <br/>
<a id="pl.69.26"></a><var>69.26</var>assistance area defined in section 
         <statute_ref>273.1341</statute_ref>.<br/>
<br/>
<a id="bill.5.25.0"></a><a id="pl.69.27"></a><var>69.27</var>    Sec. 25. Minnesota Statutes 2014, section 298.294, is amended to read:<br/>
<a id="pl.69.28"></a><var>69.28</var><b>298.294 INVESTMENT OF FUND.</b><br/>
<a id="pl.69.29"></a><var>69.29</var>(a) The trust fund established by section 
         <statute_ref>298.292</statute_ref> shall be invested pursuant to law <br/>
<a id="pl.69.30"></a><var>69.30</var>by the State Board of Investment and the net interest, dividends, and other earnings arising <br/>
<a id="pl.69.31"></a><var>69.31</var>from the investments shall be transferred, except as provided in paragraph (b), on the first <br/>
<a id="pl.69.32"></a><var>69.32</var>day of each month to the trust and shall be included and become part of the trust fund. <br/>
<a id="pl.69.33"></a><var>69.33</var>The amounts transferred, including the interest, dividends, and other earnings earned <br/>
<a id="pl.69.34"></a><var>69.34</var>prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year <br/>
<a id="pl.69.35"></a><var>69.35</var>1983, which is appropriated April 21, 1983, are appropriated from the trust fund to the <br/>
<a id="pl.70.1"></a><var>70.1</var>commissioner of Iron Range resources and rehabilitation for deposit in a separate account <br/>
<a id="pl.70.2"></a><var>70.2</var>for expenditure for the purposes set forth in section 
         <statute_ref>298.292</statute_ref>. Amounts appropriated <br/>
<a id="pl.70.3"></a><var>70.3</var>pursuant to this section shall not cancel but shall remain available unless expended.<br/>
<a id="pl.70.4"></a><var>70.4</var>(b) For fiscal years 2010 and 2011 only, $1,500,000 of the net interest, dividends, <br/>
<a id="pl.70.5"></a><var>70.5</var>and other earnings under paragraph (a) shall be transferred to a special account. Funds <br/>
<a id="pl.70.6"></a><var>70.6</var>in the special account are available for loans or grants to businesses, with priority given <br/>
<a id="pl.70.7"></a><var>70.7</var>to businesses with 25 or fewer employees. Funds may be used for wage subsidies for <br/>
<a id="pl.70.8"></a><var>70.8</var>up to 52 weeks of up to $5 per hour or other activities, including, but not limited to, <br/>
<a id="pl.70.9"></a><var>70.9</var>short-term operating expenses and purchase of equipment and materials by businesses <br/>
<a id="pl.70.10"></a><var>70.10</var>under financial duress, that will create additional jobs in the taconite assistance area <br/>
<a id="pl.70.11"></a><var>70.11</var>under section 
         <statute_ref>273.1341</statute_ref>. Expenditures from the special account must be approved by the <br/>
<a id="pl.70.12"></a><var>70.12</var>commissioner after seeking a recommendation from the board.<br/>
<a id="pl.70.13"></a><var>70.13</var>(c) To qualify for a grant or loan, a business must be currently operating and have <br/>
<a id="pl.70.14"></a><var>70.14</var>been operating for one year immediately prior to its application for a loan or grant, and its <br/>
<a id="pl.70.15"></a><var>70.15</var>corporate headquarters must be located in the taconite assistance area.<br/>
<br/>
<a id="bill.5.26.0"></a><a id="pl.70.16"></a><var>70.16</var>    Sec. 26. Minnesota Statutes 2014, section 298.296, subdivision 1, is amended to read:<br/>
<a id="pl.70.17"></a><var>70.17</var>    Subdivision 1. <b>Project approval.</b> (a) The commissioner of Iron Range resources and <br/>
<a id="pl.70.18"></a><var>70.18</var>rehabilitation, after seeking a recommendation from the board and commissioner, shall by <br/>
<a id="pl.70.19"></a><var>70.19</var>August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson <br/>
<a id="pl.70.20"></a><var>70.20</var>economic protection trust with necessary supporting information including description of <br/>
<a id="pl.70.21"></a><var>70.21</var>the projects, plans, and cost estimates. These projects shall be consistent with the priorities <br/>
<a id="pl.70.22"></a><var>70.22</var>established in section 
         <statute_ref>298.292</statute_ref> and shall not be approved by the board commissioner <br/>
<a id="pl.70.23"></a><var>70.23</var>unless it the commissioner, after seeking a recommendation from the board, finds that:<br/>
<a id="pl.70.24"></a><var>70.24</var>(a) (1) the project will materially assist, directly or indirectly, the creation of <br/>
<a id="pl.70.25"></a><var>70.25</var>additional long-term employment opportunities;<br/>
<a id="pl.70.26"></a><var>70.26</var>(b) (2) the prospective benefits of the expenditure exceed the anticipated costs; and<br/>
<a id="pl.70.27"></a><var>70.27</var>(c) (3) in the case of assistance to private enterprise, the project will serve a sound <br/>
<a id="pl.70.28"></a><var>70.28</var>business purpose. <br/>
<a id="pl.70.29"></a><var>70.29</var>(b) Each project must be approved by over one-half of all of the members of the <br/>
<a id="pl.70.30"></a><var>70.30</var>board and the commissioner of Iron Range resources and rehabilitation after seeking a <br/>
<a id="pl.70.31"></a><var>70.31</var>recommendation from the board for the project. The list of projects shall be submitted to <br/>
<a id="pl.70.32"></a><var>70.32</var>the governor, who shall, by November 15 of each year, approve or disapprove, or return <br/>
<a id="pl.70.33"></a><var>70.33</var>for further consideration, each project. The money for a project may be expended only <br/>
<a id="pl.70.34"></a><var>70.34</var>upon approval of the project by the governor. The board commissioner may submit a <br/>
<a id="pl.71.1"></a><var>71.1</var>supplemental projects project for approval at any time after seeking a recommendation for <br/>
<a id="pl.71.2"></a><var>71.2</var>the project from the board.<br/>
<br/>
<a id="bill.5.27.0"></a><a id="pl.71.3"></a><var>71.3</var>    Sec. 27. Minnesota Statutes 2014, section 298.296, subdivision 2, is amended to read:<br/>
<a id="pl.71.4"></a><var>71.4</var>    Subd. 2. <b>Expenditure of funds.</b> (a) Before January 1, 2028, funds may be expended <br/>
<a id="pl.71.5"></a><var>71.5</var>on projects and for administration of the trust fund only from the net interest, earnings, <br/>
<a id="pl.71.6"></a><var>71.6</var>and dividends arising from the investment of the trust at any time, including net interest, <br/>
<a id="pl.71.7"></a><var>71.7</var>earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made <br/>
<a id="pl.71.8"></a><var>71.8</var>available for use in fiscal year 1983, except that any amount required to be paid out of the <br/>
<a id="pl.71.9"></a><var>71.9</var>trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article <br/>
<a id="pl.71.10"></a><var>71.10</var>X, section 4, and to make school bond payments and payments to recipients of taconite <br/>
<a id="pl.71.11"></a><var>71.11</var>production tax proceeds pursuant to section 
         <statute_ref>298.225</statute_ref>, may be taken from the corpus of <br/>
<a id="pl.71.12"></a><var>71.12</var>the trust.<br/>
<a id="pl.71.13"></a><var>71.13</var>    (b) Additionally, upon recommendation by the commissioner after seeking a <br/>
<a id="pl.71.14"></a><var>71.14</var>recommendation from the board, up to $13,000,000 from the corpus of the trust may be <br/>
<a id="pl.71.15"></a><var>71.15</var>made available for use as provided in subdivision 4, and up to $10,000,000 from the <br/>
<a id="pl.71.16"></a><var>71.16</var>corpus of the trust may be made available for use as provided in section 
         <statute_ref>298.2961</statute_ref>.<br/>
<a id="pl.71.17"></a><var>71.17</var>    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust <br/>
<a id="pl.71.18"></a><var>71.18</var>on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts <br/>
<a id="pl.71.19"></a><var>71.19</var>made available under section 
         <statute_ref>298.28, subdivision 4</statute_ref>, and Laws 2002, chapter 377, article <br/>
<a id="pl.71.20"></a><var>71.20</var>8, section 17, may be expended on projects. Funds may be expended for projects under <br/>
<a id="pl.71.21"></a><var>71.21</var>this paragraph only if the project:<br/>
<a id="pl.71.22"></a><var>71.22</var>    (1) is for the purposes established under section 
         <statute_ref>298.292, subdivision 1</statute_ref>, clause <br/>
<a id="pl.71.23"></a><var>71.23</var>(1) or (2); and<br/>
<a id="pl.71.24"></a><var>71.24</var>    (2) is approved by two-thirds of all of the members of the commissioner after <br/>
<a id="pl.71.25"></a><var>71.25</var>seeking a recommendation from the board.<br/>
<a id="pl.71.26"></a><var>71.26</var>No money made available under this paragraph or paragraph (d) can be used for <br/>
<a id="pl.71.27"></a><var>71.27</var>administrative or operating expenses of the Iron Range Resources and Rehabilitation Board <br/>
<a id="pl.71.28"></a><var>71.28</var>or expenses relating to any facilities owned or operated by the board on May 18, 2002.<br/>
<a id="pl.71.29"></a><var>71.29</var>    (d) Upon recommendation by a unanimous vote of all members the commissioner <br/>
<a id="pl.71.30"></a><var>71.30</var>after seeking a unanimous recommendation of the board, amounts in addition to those <br/>
<a id="pl.71.31"></a><var>71.31</var>authorized under paragraphs (a), (b), and (c) may be expended on projects described in <br/>
<a id="pl.71.32"></a><var>71.32</var>section 
         <statute_ref>298.292, subdivision 1</statute_ref>.<br/>
<a id="pl.71.33"></a><var>71.33</var>    (e) Annual administrative costs, not including detailed engineering expenses for the <br/>
<a id="pl.71.34"></a><var>71.34</var>projects, shall not exceed five percent of the net interest, dividends, and earnings arising <br/>
<a id="pl.71.35"></a><var>71.35</var>from the trust in the preceding fiscal year.<br/>
<a id="pl.72.1"></a><var>72.1</var>    (f) Principal and interest received in repayment of loans made pursuant to this <br/>
<a id="pl.72.2"></a><var>72.2</var>section, and earnings on other investments made under section 
         <statute_ref>298.292, subdivision 2</statute_ref>, <br/>
<a id="pl.72.3"></a><var>72.3</var>clause (4), shall be deposited in the state treasury and credited to the trust. These receipts <br/>
<a id="pl.72.4"></a><var>72.4</var>are appropriated to the board for the purposes of sections 
         <statute_ref>298.291</statute_ref> to 
         <statute_ref>298.298</statute_ref>.<br/>
<a id="pl.72.5"></a><var>72.5</var>    (g) Additionally, notwithstanding section 
         <statute_ref>298.293</statute_ref>, upon the approval of the <br/>
<a id="pl.72.6"></a><var>72.6</var>commissioner of Iron Range resources and rehabilitation, after seeking a recommendation <br/>
<a id="pl.72.7"></a><var>72.7</var>from the board, money from the corpus of the trust may be expanded to purchase forest <br/>
<a id="pl.72.8"></a><var>72.8</var>lands within the taconite assistance area as provided in sections 
         <statute_ref>298.22</statute_ref>, subdivision 5a, <br/>
<a id="pl.72.9"></a><var>72.9</var>and 
         <statute_ref>298.292, subdivision 2</statute_ref>, clause (5).<br/>
<br/>
<a id="bill.5.28.0"></a><a id="pl.72.10"></a><var>72.10</var>    Sec. 28. Minnesota Statutes 2014, section 298.296, subdivision 4, is amended to read:<br/>
<a id="pl.72.11"></a><var>72.11</var>    Subd. 4. <b>Temporary loan authority.</b> (a) After seeking a recommendation from the <br/>
<a id="pl.72.12"></a><var>72.12</var>board, the commissioner of Iron Range resources and rehabilitation  may recommend that <br/>
<a id="pl.72.13"></a><var>72.13</var>use up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees, <br/>
<a id="pl.72.14"></a><var>72.14</var>grants, or equity investments as provided in this subdivision. The money would be <br/>
<a id="pl.72.15"></a><var>72.15</var>available for loans for construction and equipping of facilities constituting (1) a value <br/>
<a id="pl.72.16"></a><var>72.16</var>added iron products plant, which may be either a new plant or a facility incorporated into <br/>
<a id="pl.72.17"></a><var>72.17</var>an existing plant that produces iron upgraded to a minimum of 75 percent iron content or <br/>
<a id="pl.72.18"></a><var>72.18</var>any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine <br/>
<a id="pl.72.19"></a><var>72.19</var>or minerals processing plant for any mineral subject to the net proceeds tax imposed <br/>
<a id="pl.72.20"></a><var>72.20</var>under section 
         <statute_ref>298.015</statute_ref>. A loan or loan guarantee under this paragraph may not exceed <br/>
<a id="pl.72.21"></a><var>72.21</var>$5,000,000 for any facility.<br/>
<a id="pl.72.22"></a><var>72.22</var>(b) Additionally, the board commissioner of Iron Range resources and rehabilitation <br/>
<a id="pl.72.23"></a><var>72.23</var>must reserve the first $2,000,000 of the net interest, dividends, and earnings arising <br/>
<a id="pl.72.24"></a><var>72.24</var>from the investment of the trust after June 30, 1996, to be used for grants, loans, loan <br/>
<a id="pl.72.25"></a><var>72.25</var>guarantees, or equity investments for the purposes set forth in paragraph (a). This amount <br/>
<a id="pl.72.26"></a><var>72.26</var>must be reserved until it is used as described in this subdivision.<br/>
<a id="pl.72.27"></a><var>72.27</var>(c) Additionally, the board commissioner may recommend that up to $5,500,000 <br/>
<a id="pl.72.28"></a><var>72.28</var>from the corpus of the trust may be used for additional grants, loans, loan guarantees, or <br/>
<a id="pl.72.29"></a><var>72.29</var>equity investments for the purposes set forth in paragraph (a).<br/>
<a id="pl.72.30"></a><var>72.30</var>(d) The commissioner of Iron Range resources and rehabilitation, after seeking a <br/>
<a id="pl.72.31"></a><var>72.31</var>recommendation from the board, may require that it the board receive an equity percentage <br/>
<a id="pl.72.32"></a><var>72.32</var>in any project to which it contributes under this section.<br/>
<br/>
<a id="bill.5.29.0"></a><a id="pl.72.33"></a><var>72.33</var>    Sec. 29. Minnesota Statutes 2014, section 298.2961, subdivision 2, is amended to read:<br/>
<a id="pl.72.34"></a><var>72.34</var>    Subd. 2. <b>Projects; approval.</b> (a) Projects funded must be for:<br/>
<a id="pl.73.1"></a><var>73.1</var>    (1) environmentally unique reclamation projects; or<br/>
<a id="pl.73.2"></a><var>73.2</var>    (2) pit or plant repairs, expansions, or modernizations other than for a value added <br/>
<a id="pl.73.3"></a><var>73.3</var>iron products plant.<br/>
<a id="pl.73.4"></a><var>73.4</var>    (b) To be proposed by the board, a project must be approved by Before the <br/>
<a id="pl.73.5"></a><var>73.5</var>commissioner may propose a project, the commissioner must seek a recommendation <br/>
<a id="pl.73.6"></a><var>73.6</var>from the board. The money for a project may be spent only upon approval of the project <br/>
<a id="pl.73.7"></a><var>73.7</var>by the governor. The board commissioner may submit a supplemental projects project for <br/>
<a id="pl.73.8"></a><var>73.8</var>approval at any time after seeking a recommendation for the project from the board.<br/>
<a id="pl.73.9"></a><var>73.9</var>    (c) The board commissioner may require that it the board receive an equity <br/>
<a id="pl.73.10"></a><var>73.10</var>percentage in any project to which it contributes under this section.<br/>
<br/>
<a id="bill.5.30.0"></a><a id="pl.73.11"></a><var>73.11</var>    Sec. 30. Minnesota Statutes 2014, section 298.2961, subdivision 4, is amended to read:<br/>
<a id="pl.73.12"></a><var>73.12</var>    Subd. 4. <b>Grant and loan fund.</b> (a) A fund is established to receive distributions <br/>
<a id="pl.73.13"></a><var>73.13</var>under section 
         <statute_ref>298.28, subdivision 9b</statute_ref>, and to make grants or loans as provided in this <br/>
<a id="pl.73.14"></a><var>73.14</var>subdivision. Any grant or loan made under this subdivision must first be approved by <br/>
<a id="pl.73.15"></a><var>73.15</var>the commissioner after seeking a recommendation from the board, established under <br/>
<a id="pl.73.16"></a><var>73.16</var>section 
         <statute_ref>298.22</statute_ref>.<br/>
<a id="pl.73.17"></a><var>73.17</var>    (b) Distributions received in calendar year 2005 are allocated to the city of Virginia <br/>
<a id="pl.73.18"></a><var>73.18</var>for improvements and repairs to the city's steam heating system.<br/>
<a id="pl.73.19"></a><var>73.19</var>    (c) Distributions received in calendar year 2006 are allocated to a project of the <br/>
<a id="pl.73.20"></a><var>73.20</var>public utilities commissions of the cities of Hibbing and Virginia to convert their electrical <br/>
<a id="pl.73.21"></a><var>73.21</var>generating plants to the use of biomass products, such as wood.<br/>
<a id="pl.73.22"></a><var>73.22</var>    (d) Distributions received in calendar year 2007 must be paid to the city of Tower to <br/>
<a id="pl.73.23"></a><var>73.23</var>be used for the East Two Rivers project in or near the city of Tower.<br/>
<a id="pl.73.24"></a><var>73.24</var>    (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution <br/>
<a id="pl.73.25"></a><var>73.25</var>must be paid to St. Louis County for deposit in its county road and bridge fund to be <br/>
<a id="pl.73.26"></a><var>73.26</var>used for relocation of St. Louis County Road 715, commonly referred to as Pike River <br/>
<a id="pl.73.27"></a><var>73.27</var>Road. The remainder of the 2008 distribution must be paid to St. Louis County for a <br/>
<a id="pl.73.28"></a><var>73.28</var>grant to the city of Virginia for connecting sewer and water lines to the St. Louis County <br/>
<a id="pl.73.29"></a><var>73.29</var>maintenance garage on Highway 135, further extending the lines to interconnect with the <br/>
<a id="pl.73.30"></a><var>73.30</var>city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent <br/>
<a id="pl.73.31"></a><var>73.31</var>years are allocated for projects under section 
         <statute_ref>298.223</statute_ref>, subdivision 1.<br/>
<br/>
<a id="bill.5.31.0"></a><a id="pl.73.32"></a><var>73.32</var>    Sec. 31. Minnesota Statutes 2014, section 298.298, is amended to read:<br/>
<a id="pl.73.33"></a><var>73.33</var><b>298.298 LONG-RANGE PLAN.</b><br/>
<a id="pl.74.1"></a><var>74.1</var>Consistent with the policy established in sections 
         <statute_ref>298.291</statute_ref> to 
         <statute_ref>298.298</statute_ref>, the Iron <br/>
<a id="pl.74.2"></a><var>74.2</var>Range Resources and Rehabilitation Board shall prepare and present to the governor and <br/>
<a id="pl.74.3"></a><var>74.3</var>the legislature by December 31, 2006, a long-range plan for the use of the Douglas J. <br/>
<a id="pl.74.4"></a><var>74.4</var>Johnson economic protection trust fund for the economic development and diversification <br/>
<a id="pl.74.5"></a><var>74.5</var>of the taconite assistance area defined in section 
         <statute_ref>273.1341</statute_ref>. No project shall be approved <br/>
<a id="pl.74.6"></a><var>74.6</var>recommended by the Iron Range Resources and Rehabilitation Board which if the board <br/>
<a id="pl.74.7"></a><var>74.7</var>finds that the project is not consistent with the goals and objectives established in the <br/>
<a id="pl.74.8"></a><var>74.8</var>long-range plan.<br/>
<br/>
<a id="bill.5.32.0"></a><a id="pl.74.9"></a><var>74.9</var>    Sec. 32. Minnesota Statutes 2014, section 298.46, subdivision 2, is amended to read:<br/>
<a id="pl.74.10"></a><var>74.10</var>    Subd. 2. <b>Unmined iron ore; valuation petition.</b> When in the opinion of the duly <br/>
<a id="pl.74.11"></a><var>74.11</var>constituted authorities of a taxing district there are in existence reserves of unmined iron <br/>
<a id="pl.74.12"></a><var>74.12</var>ore located in such district, these authorities may petition the commissioner of Iron Range <br/>
<a id="pl.74.13"></a><var>74.13</var>resources and rehabilitation Board for authority to petition the county assessor to verify <br/>
<a id="pl.74.14"></a><var>74.14</var>the existence of such reserves and to ascertain the value thereof by drilling in a manner <br/>
<a id="pl.74.15"></a><var>74.15</var>consistent with established engineering and geological exploration methods, in order that <br/>
<a id="pl.74.16"></a><var>74.16</var>such taxing district may be able to forecast in a proper manner its future economic and <br/>
<a id="pl.74.17"></a><var>74.17</var>fiscal potentials. The commissioner may grant the authority to petition after seeking a <br/>
<a id="pl.74.18"></a><var>74.18</var>recommendation from the Iron Range Resources and Rehabilitation Board.<br/>
<br/>
<a id="bill.5.33.0"></a><a id="pl.74.19"></a><var>74.19</var>    Sec. 33. <b>IRON RANGE RESOURCES AND REHABILITATION BOARD; </b><br/>
<a id="pl.74.20"></a><var>74.20</var><b>EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.</b><br/>
<a id="pl.74.21"></a><var>74.21</var>(a) "Commissioner" as used in this section means the commissioner of the Iron <br/>
<a id="pl.74.22"></a><var>74.22</var>Range Resources and Rehabilitation Board unless otherwise specified.<br/>
<a id="pl.74.23"></a><var>74.23</var>(b) Notwithstanding any law to the contrary, the commissioner, in consultation <br/>
<a id="pl.74.24"></a><var>74.24</var>with the commissioner of management and budget, shall offer a targeted early separation <br/>
<a id="pl.74.25"></a><var>74.25</var>incentive program for employees of the commissioner who have attained the age of 60 <br/>
<a id="pl.74.26"></a><var>74.26</var>years or who have received credit for at least 30 years of allowable service under the <br/>
<a id="pl.74.27"></a><var>74.27</var>provisions of Minnesota Statutes, chapter 352.  The commissioner shall also offer a <br/>
<a id="pl.74.28"></a><var>74.28</var>targeted separation incentive program for employees of the commissioner whose positions <br/>
<a id="pl.74.29"></a><var>74.29</var>are in support of operations at Giants Ridge and will be eliminated if the agency no longer <br/>
<a id="pl.74.30"></a><var>74.30</var>directly manages Giants Ridge operations.<br/>
<a id="pl.74.31"></a><var>74.31</var>(c) The early separation incentive program may include one or more of the following:<br/>
<a id="pl.74.32"></a><var>74.32</var>(1) employer-paid postseparation health, medical, and dental insurance until age <br/>
<a id="pl.74.33"></a><var>74.33</var>65; and<br/>
<a id="pl.75.1"></a><var>75.1</var>(2) cash incentives that may, but are not required to be, used to purchase additional <br/>
<a id="pl.75.2"></a><var>75.2</var>years of service credit through the Minnesota State Retirement System, to the extent that <br/>
<a id="pl.75.3"></a><var>75.3</var>the purchases are otherwise authorized by law.<br/>
<a id="pl.75.4"></a><var>75.4</var>(d) The commissioner shall establish eligibility requirements for employees to <br/>
<a id="pl.75.5"></a><var>75.5</var>receive an incentive.<br/>
<a id="pl.75.6"></a><var>75.6</var>(e) The commissioner, consistent with the established program provisions under <br/>
<a id="pl.75.7"></a><var>75.7</var>paragraph (b), and with the eligibility requirements under paragraph (f), may designate <br/>
<a id="pl.75.8"></a><var>75.8</var>specific programs or employees as eligible to be offered the incentive program.<br/>
<a id="pl.75.9"></a><var>75.9</var>(f) Acceptance of the offered incentive must be voluntary on the part of the <br/>
<a id="pl.75.10"></a><var>75.10</var>employee and must be in writing. The incentive may only be offered at the sole discretion <br/>
<a id="pl.75.11"></a><var>75.11</var>of the commissioner.<br/>
<a id="pl.75.12"></a><var>75.12</var>(g) The cost of the incentive is payable solely by funds made available to the <br/>
<a id="pl.75.13"></a><var>75.13</var>commissioner by law, but only on prior approval of the expenditures by the commissioner, <br/>
<a id="pl.75.14"></a><var>75.14</var>after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.<br/>
<a id="pl.75.15"></a><var>75.15</var>(h) Unilateral implementation of this section by the commissioner is not an unfair <br/>
<a id="pl.75.16"></a><var>75.16</var>labor practice under Minnesota Statutes, chapter 179A.<br/>
<a id="pl.75.17"></a><var>75.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment. <br/>
<a id="pl.75.18"></a><var>75.18</var>This section is repealed June 30, 2017.<br/>
<br/>
<a id="bill.5.34.0"></a><a id="pl.75.19"></a><var>75.19</var>    Sec. 34. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.75.20"></a><var>75.20</var>The revisor of statutes shall identify and propose necessary changes to Minnesota <br/>
<a id="pl.75.21"></a><var>75.21</var>Statutes and Minnesota Rules that are consistent with the goals of this act to (i) transfer <br/>
<a id="pl.75.22"></a><var>75.22</var>discretionary approval authority for all expenditures and projects from the Iron Range <br/>
<a id="pl.75.23"></a><var>75.23</var>Resources and Rehabilitation Board to the commissioner of Iron Range resources and <br/>
<a id="pl.75.24"></a><var>75.24</var>rehabilitation, and (ii) provide that the commissioner must, in good faith, seek the review <br/>
<a id="pl.75.25"></a><var>75.25</var>and recommendation of the board, as required, before exercising approval authority. The <br/>
<a id="pl.75.26"></a><var>75.26</var>revisor shall submit the proposal, in a form ready for introduction, during the 2017 regular <br/>
<a id="pl.75.27"></a><var>75.27</var>legislative session to the chairs and ranking minority members of the senate and house of <br/>
<a id="pl.75.28"></a><var>75.28</var>representatives committees with jurisdiction over taxes.<br/>
<br/>
<a id="bill.6.0.0"></a>

<a id="bill.6.1.0"></a><a id="pl.75.31"></a><var>75.31</var>    Section 1. Minnesota Statutes 2014, section 13.719, is amended by adding a <br/>
<a id="pl.75.32"></a><var>75.32</var>subdivision to read:<br/>
<a id="pl.76.1"></a><var>76.1</var>    Subd. 7. <b>Family and medical insurance data.</b> (a) For the purposes of this <br/>
<a id="pl.76.2"></a><var>76.2</var>subdivision, the terms used have the meanings given them in section 268B.01.<br/>
<a id="pl.76.3"></a><var>76.3</var>(b) Data on applicants, family members, or employers under chapter 268B are <br/>
<a id="pl.76.4"></a><var>76.4</var>private or nonpublic data, provided that the department may share data collected from <br/>
<a id="pl.76.5"></a><var>76.5</var>applicants with employers or health care providers to the extent necessary to meet the <br/>
<a id="pl.76.6"></a><var>76.6</var>requirements of chapter 268B or other applicable law.<br/>
<br/>
<a id="bill.6.2.0"></a><a id="pl.76.7"></a><var>76.7</var>    Sec. 2. Minnesota Statutes 2014, section 181.940, subdivision 2, is amended to read:<br/>
<a id="pl.76.8"></a><var>76.8</var>    Subd. 2. <b>Employee.</b> "Employee" means a person who performs services for hire for <br/>
<a id="pl.76.9"></a><var>76.9</var>an employer from whom a leave is requested under sections 
         <statute_ref>181.940</statute_ref> to 
         <statute_ref>181.944</statute_ref> for:<br/>
<a id="pl.76.10"></a><var>76.10</var>(1) at least 12 six months preceding the request; and<br/>
<a id="pl.76.11"></a><var>76.11</var>(2) for an average number of hours per week equal to one-half the full-time <br/>
<a id="pl.76.12"></a><var>76.12</var>equivalent position in the employee's job classification as defined by the employer's <br/>
<a id="pl.76.13"></a><var>76.13</var>personnel policies or practices or pursuant to the provisions of a collective bargaining <br/>
<a id="pl.76.14"></a><var>76.14</var>agreement, during the 12-month six-month period immediately preceding the leave.<br/>
<a id="pl.76.15"></a><var>76.15</var>For leaves under sections 181.9412 and 181.9413, the periods of time required by <br/>
<a id="pl.76.16"></a><var>76.16</var>clauses (1) and (2) are 12 months rather than six months.<br/>
<a id="pl.76.17"></a><var>76.17</var>Employee includes all individuals employed at any site owned or operated by the <br/>
<a id="pl.76.18"></a><var>76.18</var>employer but does not include an independent contractor.<br/>
<br/>
<a id="bill.6.3.0"></a><a id="pl.76.19"></a><var>76.19</var>    Sec. 3. Minnesota Statutes 2014, section 181.940, subdivision 4, is amended to read:<br/>
<a id="pl.76.20"></a><var>76.20</var>    Subd. 4. <b>Child.</b> "Child" means, except for the purposes of section 181.9411, an <br/>
<a id="pl.76.21"></a><var>76.21</var>individual under 18 years of age or an individual under age 20 who is still attending <br/>
<a id="pl.76.22"></a><var>76.22</var>secondary school.<br/>
<br/>
<a id="bill.6.4.0"></a><a id="pl.76.23"></a><var>76.23</var>    Sec. 4. Minnesota Statutes 2014, section 181.941, subdivision 4, is amended to read:<br/>
<a id="pl.76.24"></a><var>76.24</var>    Subd. 4. <b>Continued insurance.</b> The employer must continue to make coverage <br/>
<a id="pl.76.25"></a><var>76.25</var>available to the employee while on leave of absence under any group insurance policy, <br/>
<a id="pl.76.26"></a><var>76.26</var>group subscriber contract, or health care plan for the employee and any dependents. <br/>
<a id="pl.76.27"></a><var>76.27</var>Nothing in this section requires the employer to pay the costs of the insurance or health <br/>
<a id="pl.76.28"></a><var>76.28</var>care while the employee is on leave of absence. During any period that an employee <br/>
<a id="pl.76.29"></a><var>76.29</var>takes leave under this section, the employer shall maintain coverage under any group <br/>
<a id="pl.76.30"></a><var>76.30</var>health plan for the duration of such leave at the level and under the conditions coverage <br/>
<a id="pl.76.31"></a><var>76.31</var>would have been provided if the employee had continued in employment continuously <br/>
<a id="pl.76.32"></a><var>76.32</var>for the duration of leave.<br/>
<br/>
<a id="bill.6.5.0"></a><a id="pl.77.1"></a><var>77.1</var>    Sec. 5. <b>[181.9411] FAMILY CARE LEAVE.</b><br/>
<a id="pl.77.2"></a><var>77.2</var>    Subdivision 1. <b>Definition; family member.</b> For the purpose of this section, "family <br/>
<a id="pl.77.3"></a><var>77.3</var>member" means an employee's child, adult child, spouse, sibling, parent, foster parent, <br/>
<a id="pl.77.4"></a><var>77.4</var>mother-in-law, father-in-law, grandchild, grandparent, or stepparent. "Child" means a <br/>
<a id="pl.77.5"></a><var>77.5</var>child under the age of 18 and includes a biological child, adopted child, or foster child.<br/>
<a id="pl.77.6"></a><var>77.6</var>    Subd. 2. <b>Definition; health care provider.</b> For the purpose of this section, "health <br/>
<a id="pl.77.7"></a><var>77.7</var>care provider" means an individual who is licensed, certified, or otherwise authorized <br/>
<a id="pl.77.8"></a><var>77.8</var>under law to practice in the individual's state of practice as a physician, osteopath, <br/>
<a id="pl.77.9"></a><var>77.9</var>physician assistant, chiropractor, advanced practice registered nurse, optometrist, <br/>
<a id="pl.77.10"></a><var>77.10</var>licensed psychologist, licensed independent clinical social worker, dentist, or podiatrist. <br/>
<a id="pl.77.11"></a><var>77.11</var>"Chiropractor" means only a chiropractor who provides manual manipulation of the spine <br/>
<a id="pl.77.12"></a><var>77.12</var>to correct a subluxation demonstrated to exist by an x-ray.<br/>
<a id="pl.77.13"></a><var>77.13</var>    Subd. 3. <b>Definition; serious health condition.</b> For the purpose of this section, <br/>
<a id="pl.77.14"></a><var>77.14</var>"serious health condition" means an illness, injury, impairment, or physical or mental <br/>
<a id="pl.77.15"></a><var>77.15</var>condition that involves:<br/>
<a id="pl.77.16"></a><var>77.16</var>(1) inpatient care in a hospital, hospice, or residential medical care facility; or<br/>
<a id="pl.77.17"></a><var>77.17</var>(2) continuing treatment by a health care provider.<br/>
<a id="pl.77.18"></a><var>77.18</var>    Subd. 4. <b>Twelve-week leave.</b> An employer must grant an unpaid leave of absence <br/>
<a id="pl.77.19"></a><var>77.19</var>to an employee in order to care for a family member with a serious health condition. The <br/>
<a id="pl.77.20"></a><var>77.20</var>length of the leave shall be determined by the employee, but must not exceed 12 weeks <br/>
<a id="pl.77.21"></a><var>77.21</var>during any 12-month period, unless agreed to by the employer. The leave provided under <br/>
<a id="pl.77.22"></a><var>77.22</var>this section may be reduced by any period of leave taken under section 181.941 for the same <br/>
<a id="pl.77.23"></a><var>77.23</var>period. Leave under this section may be taken intermittently when medically necessary.<br/>
<a id="pl.77.24"></a><var>77.24</var>    Subd. 5. <b>Terms of  leave.</b> The leave shall begin at a time requested by the employee. <br/>
<a id="pl.77.25"></a><var>77.25</var>The employer may adopt reasonable policies governing the timing of requests for unpaid <br/>
<a id="pl.77.26"></a><var>77.26</var>leave and may require an employee to provide notice of the need for leave as soon <br/>
<a id="pl.77.27"></a><var>77.27</var>as practicable. An employer may require that a request for leave be supported by a <br/>
<a id="pl.77.28"></a><var>77.28</var>certification issued by the health care provider of the family member. <br/>
<a id="pl.77.29"></a><var>77.29</var>    Subd. 6. <b>No employer retribution.</b> An employer shall not retaliate against an <br/>
<a id="pl.77.30"></a><var>77.30</var>employee for requesting or obtaining a leave of absence under this section.<br/>
<a id="pl.77.31"></a><var>77.31</var>    Subd. 7. <b>Continued insurance.</b> During any period that an employee takes leave <br/>
<a id="pl.77.32"></a><var>77.32</var>under this section, the employer shall maintain coverage under any group health plan for <br/>
<a id="pl.77.33"></a><var>77.33</var>the duration of such leave at the level and under the conditions coverage would have been <br/>
<a id="pl.77.34"></a><var>77.34</var>provided if the employee had continued in employment continuously for the duration <br/>
<a id="pl.77.35"></a><var>77.35</var>of leave.<br/>
<br/>
<a id="bill.6.6.0"></a><a id="pl.78.1"></a><var>78.1</var>    Sec. 6. Minnesota Statutes 2014, section 181.942, subdivision 1, is amended to read:<br/>
<a id="pl.78.2"></a><var>78.2</var>    Subdivision 1. <b>Comparable position.</b> (a) An employee returning from a leave <br/>
<a id="pl.78.3"></a><var>78.3</var>of absence under section 
         <statute_ref>181.941</statute_ref> or 181.9411 is entitled to return to employment in <br/>
<a id="pl.78.4"></a><var>78.4</var>the employee's former position or in a position of comparable duties, number of hours, <br/>
<a id="pl.78.5"></a><var>78.5</var>and pay. An employee returning from a leave of absence longer than one month must <br/>
<a id="pl.78.6"></a><var>78.6</var>notify a supervisor at least two weeks prior to return from leave. An employee returning <br/>
<a id="pl.78.7"></a><var>78.7</var>from a leave under section 
         <statute_ref>181.9412</statute_ref> or 
         <statute_ref>181.9413</statute_ref> is entitled to return to employment in <br/>
<a id="pl.78.8"></a><var>78.8</var>the employee's former position.<br/>
<a id="pl.78.9"></a><var>78.9</var>(b) If, during a leave under sections 
         <statute_ref>181.940</statute_ref> to 
         <statute_ref>181.944</statute_ref>, the employer experiences <br/>
<a id="pl.78.10"></a><var>78.10</var>a layoff and the employee would have lost a position had the employee not been on <br/>
<a id="pl.78.11"></a><var>78.11</var>leave, pursuant to the good faith operation of a bona fide layoff and recall system, <br/>
<a id="pl.78.12"></a><var>78.12</var>including a system under a collective bargaining agreement, the employee is not entitled to <br/>
<a id="pl.78.13"></a><var>78.13</var>reinstatement in the former or comparable position. In such circumstances, the employee <br/>
<a id="pl.78.14"></a><var>78.14</var>retains all rights under the layoff and recall system, including a system under a collective <br/>
<a id="pl.78.15"></a><var>78.15</var>bargaining agreement, as if the employee had not taken the leave.<br/>
<br/>
<a id="bill.6.7.0"></a><a id="pl.78.16"></a><var>78.16</var>    Sec. 7. Minnesota Statutes 2014, section 181.943, is amended to read:<br/>
<a id="pl.78.17"></a><var>78.17</var><b>181.943 RELATIONSHIP TO OTHER LEAVE.</b><br/>
<a id="pl.78.18"></a><var>78.18</var>(a) The length of leave provided under section 
         <statute_ref>181.941</statute_ref> or 181.9411 may be reduced <br/>
<a id="pl.78.19"></a><var>78.19</var>by any period of:<br/>
<a id="pl.78.20"></a><var>78.20</var>(1) paid parental, disability, personal, medical, or sick leave, or accrued vacation <br/>
<a id="pl.78.21"></a><var>78.21</var>provided by the employer so that the total leave does not exceed 12 weeks, unless agreed <br/>
<a id="pl.78.22"></a><var>78.22</var>to by the employer; or<br/>
<a id="pl.78.23"></a><var>78.23</var>(2) leave taken for the same purpose by the employee under United States Code, <br/>
<a id="pl.78.24"></a><var>78.24</var>title 29, chapter 28.<br/>
<a id="pl.78.25"></a><var>78.25</var>(b) Nothing in sections 
         <statute_ref>181.940</statute_ref> to 
         <statute_ref>181.943</statute_ref> prevents any employer from providing <br/>
<a id="pl.78.26"></a><var>78.26</var>leave benefits in addition to those provided in sections 
         <statute_ref>181.940</statute_ref> to 
         <statute_ref>181.944</statute_ref> or otherwise <br/>
<a id="pl.78.27"></a><var>78.27</var>affects an employee's rights with respect to any other employment benefit.<br/>
<a id="pl.78.28"></a><var>78.28</var>(c) For the purpose of this section, benefits paid under chapter 268B are not provided <br/>
<a id="pl.78.29"></a><var>78.29</var>by an employer.<br/>
<a id="pl.78.30"></a><var>78.30</var>(d) An employer may not require an employee to take more than two weeks of paid <br/>
<a id="pl.78.31"></a><var>78.31</var>parental, disability, personal, medical, or sick leave, or accrued vacation provided by an <br/>
<a id="pl.78.32"></a><var>78.32</var>employer for the purpose of a leave under section 181.941 or 181.9411, unless agreed to <br/>
<a id="pl.78.33"></a><var>78.33</var>by an employee. This paragraph applies only to an employee who is eligible for benefits <br/>
<a id="pl.78.34"></a><var>78.34</var>under chapter 268B based on the same event for which leave is provided under section <br/>
<a id="pl.78.35"></a><var>78.35</var>181.941 or 181.9411.<br/>
<br/>
<a id="bill.6.8.0"></a><a id="pl.79.1"></a><var>79.1</var>    Sec. 8. Minnesota Statutes 2014, section 256J.561, is amended by adding a subdivision <br/>
<a id="pl.79.2"></a><var>79.2</var>to read:<br/>
<a id="pl.79.3"></a><var>79.3</var>    Subd. 4. <b>Parents receiving family and medical leave benefits.</b> A parent who <br/>
<a id="pl.79.4"></a><var>79.4</var>meets the criteria under subdivision 2 and who receives family and medical leave benefits <br/>
<a id="pl.79.5"></a><var>79.5</var>under chapter 268B is not required to participate in employment services.<br/>
<br/>
<a id="bill.6.9.0"></a><a id="pl.79.6"></a><var>79.6</var>    Sec. 9. Minnesota Statutes 2014, section 256J.95, subdivision 3, is amended to read:<br/>
<a id="pl.79.7"></a><var>79.7</var>    Subd. 3. <b>Eligibility for diversionary work program.</b> (a) Except for the categories <br/>
<a id="pl.79.8"></a><var>79.8</var>of family units listed in clauses (1) to (8), all family units who apply for cash benefits and <br/>
<a id="pl.79.9"></a><var>79.9</var>who meet MFIP eligibility as required in sections 
         <statute_ref>256J.11</statute_ref> to 
         <statute_ref>256J.15</statute_ref> are eligible and <br/>
<a id="pl.79.10"></a><var>79.10</var>must participate in the diversionary work program. Family units or individuals that are <br/>
<a id="pl.79.11"></a><var>79.11</var>not eligible for the diversionary work program include:<br/>
<a id="pl.79.12"></a><var>79.12</var>    (1) child only cases;<br/>
<a id="pl.79.13"></a><var>79.13</var>    (2) single-parent family units that include a child under 12 months of age. A parent <br/>
<a id="pl.79.14"></a><var>79.14</var>is eligible for this exception once in a parent's lifetime;<br/>
<a id="pl.79.15"></a><var>79.15</var>    (3) family units with a minor parent without a high school diploma or its equivalent;<br/>
<a id="pl.79.16"></a><var>79.16</var>    (4) family units with an 18- or 19-year-old caregiver without a high school diploma <br/>
<a id="pl.79.17"></a><var>79.17</var>or its equivalent who chooses to have an employment plan with an education option;<br/>
<a id="pl.79.18"></a><var>79.18</var>    (5) family units with a caregiver who received DWP benefits within the 12 months <br/>
<a id="pl.79.19"></a><var>79.19</var>prior to the month the family applied for DWP, except as provided in paragraph (c);<br/>
<a id="pl.79.20"></a><var>79.20</var>    (6) family units with a caregiver who received MFIP within the 12 months prior to <br/>
<a id="pl.79.21"></a><var>79.21</var>the month the family applied for DWP;<br/>
<a id="pl.79.22"></a><var>79.22</var>    (7) family units with a caregiver who received 60 or more months of TANF <br/>
<a id="pl.79.23"></a><var>79.23</var>assistance; and<br/>
<a id="pl.79.24"></a><var>79.24</var>    (8) family units with a caregiver who is disqualified from the work participation <br/>
<a id="pl.79.25"></a><var>79.25</var>cash benefit program, DWP, or MFIP due to fraud; and<br/>
<a id="pl.79.26"></a><var>79.26</var>    (9) single-parent family units where a parent is receiving family and medical leave <br/>
<a id="pl.79.27"></a><var>79.27</var>benefits under chapter 268B.<br/>
<a id="pl.79.28"></a><var>79.28</var>    (b) A two-parent family must participate in DWP unless both caregivers meet the <br/>
<a id="pl.79.29"></a><var>79.29</var>criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit <br/>
<a id="pl.79.30"></a><var>79.30</var>includes a parent who meets the criteria in paragraph (a), clause (6), (7), or (8).<br/>
<a id="pl.79.31"></a><var>79.31</var>    (c) Once DWP eligibility is determined, the four months run consecutively. If a <br/>
<a id="pl.79.32"></a><var>79.32</var>participant leaves the program for any reason and reapplies during the four-month period, <br/>
<a id="pl.79.33"></a><var>79.33</var>the county must redetermine eligibility for DWP.<br/>
<br/>
<a id="bill.6.10.0"></a><a id="pl.79.34"></a><var>79.34</var>    Sec. 10. Minnesota Statutes 2014, section 256J.95, subdivision 11, is amended to read:<br/>
<a id="pl.80.1"></a><var>80.1</var>    Subd. 11. <b>Universal participation required.</b> (a) All DWP caregivers, except <br/>
<a id="pl.80.2"></a><var>80.2</var>caregivers who meet the criteria in paragraph (d), are required to participate in DWP <br/>
<a id="pl.80.3"></a><var>80.3</var>employment services. Except as specified in paragraphs (b) and (c), employment plans <br/>
<a id="pl.80.4"></a><var>80.4</var>under DWP must, at a minimum, meet the requirements in section 
         <statute_ref>256J.55, subdivision 1</statute_ref>.<br/>
<a id="pl.80.5"></a><var>80.5</var>(b) A caregiver who is a member of a two-parent family that is required to participate <br/>
<a id="pl.80.6"></a><var>80.6</var>in DWP who would otherwise be ineligible for DWP under subdivision 3 may be allowed <br/>
<a id="pl.80.7"></a><var>80.7</var>to develop an employment plan under section 
         <statute_ref>256J.521, subdivision 2</statute_ref>, that may contain <br/>
<a id="pl.80.8"></a><var>80.8</var>alternate activities and reduced hours.<br/>
<a id="pl.80.9"></a><var>80.9</var>(c) A participant who is a victim of family violence shall be allowed to develop an <br/>
<a id="pl.80.10"></a><var>80.10</var>employment plan under section 
         <statute_ref>256J.521, subdivision 3</statute_ref>. A claim of family violence must <br/>
<a id="pl.80.11"></a><var>80.11</var>be documented by the applicant or participant by providing a sworn statement which is <br/>
<a id="pl.80.12"></a><var>80.12</var>supported by collateral documentation in section 
         <statute_ref>256J.545</statute_ref>, paragraph (b).<br/>
<a id="pl.80.13"></a><var>80.13</var>(d) One parent in a two-parent family unit that has a natural born child under <br/>
<a id="pl.80.14"></a><var>80.14</var>12 months of age is not required to have an employment plan until the child reaches <br/>
<a id="pl.80.15"></a><var>80.15</var>12 months of age unless the family unit has already used the exclusion under section <br/>
<a id="pl.80.16"></a><var>80.16</var><statute_ref>256J.561, subdivision 3</statute_ref>, or the previously allowed child under age one exemption under <br/>
<a id="pl.80.17"></a><var>80.17</var>section 
<statute_ref>256J.56</statute_ref>, paragraph (a), clause (5) if that parent:<br/>
<a id="pl.80.18"></a><var>80.18</var>(1) receives family and medical leave benefits under chapter 268B; or<br/>
<a id="pl.80.19"></a><var>80.19</var>(2) has a natural born child under 12 months of age until the child reaches 12 months <br/>
<a id="pl.80.20"></a><var>80.20</var>of age unless the family unit has already used the exclusion under section 256J.561, <br/>
<a id="pl.80.21"></a><var>80.21</var>subdivision 3, or the previously allowed child under age one exemption under section <br/>
<a id="pl.80.22"></a><var>80.22</var>256J.56, paragraph (a), clause (5).<br/>
<a id="pl.80.23"></a><var>80.23</var>(e) The provision in paragraph (d) ends the first full month after the child reaches <br/>
<a id="pl.80.24"></a><var>80.24</var>12 months of age. This provision is allowable only once in a caregiver's lifetime. In a <br/>
<a id="pl.80.25"></a><var>80.25</var>two-parent household, only one parent shall be allowed to use this category.<br/>
<a id="pl.80.26"></a><var>80.26</var>(f) The participant and job counselor must meet in the month after the month <br/>
<a id="pl.80.27"></a><var>80.27</var>the child reaches 12 months of age to revise the participant's employment plan. The <br/>
<a id="pl.80.28"></a><var>80.28</var>employment plan for a family unit that has a child under 12 months of age that has already <br/>
<a id="pl.80.29"></a><var>80.29</var>used the exclusion in section 
         <statute_ref>256J.561</statute_ref> must be tailored to recognize the caregiving needs <br/>
<a id="pl.80.30"></a><var>80.30</var>of the parent.<br/>
<br/>
<a id="bill.6.11.0"></a><a id="pl.80.31"></a><var>80.31</var>    Sec. 11. Minnesota Statutes 2015 Supplement, section 256P.01, subdivision 3, is <br/>
<a id="pl.80.32"></a><var>80.32</var>amended to read:<br/>
<a id="pl.80.33"></a><var>80.33</var>    Subd. 3. <b>Earned income.</b> "Earned income" means cash or in-kind income earned <br/>
<a id="pl.80.34"></a><var>80.34</var>through the receipt of wages, salary, commissions, bonuses, tips, gratuities, profit from <br/>
<a id="pl.80.35"></a><var>80.35</var>employment activities, net profit from self-employment activities, payments made by an <br/>
<a id="pl.81.1"></a><var>81.1</var>employer for regularly accrued vacation or sick leave, severance pay based on accrued <br/>
<a id="pl.81.2"></a><var>81.2</var>leave time, family and medical leave benefits under chapter 268B, payments from training <br/>
<a id="pl.81.3"></a><var>81.3</var>programs at a rate at or greater than the state's minimum wage, royalties, honoraria, or <br/>
<a id="pl.81.4"></a><var>81.4</var>other profit from activity that results from the client's work, service, effort, or labor. The <br/>
<a id="pl.81.5"></a><var>81.5</var>income must be in return for, or as a result of, legal activity.<br/>
<br/>
<a id="bill.6.12.0"></a><a id="pl.81.6"></a><var>81.6</var>    Sec. 12. Minnesota Statutes 2014, section 268.19, subdivision 1, is amended to read:<br/>
<a id="pl.81.7"></a><var>81.7</var>    Subdivision 1. <b>Use of data.</b> (a) Except as provided by this section, data gathered <br/>
<a id="pl.81.8"></a><var>81.8</var>from any person under the administration of the Minnesota Unemployment Insurance Law <br/>
<a id="pl.81.9"></a><var>81.9</var>are private data on individuals or nonpublic data not on individuals as defined in section <br/>
<statute_ref><a id="pl.81.10"></a><var>81.10</var>13.02
         </statute_ref>, subdivisions 9 and 12, and may not be disclosed except according to a district court <br/>
<a id="pl.81.11"></a><var>81.11</var>order or section 
         <statute_ref>13.05</statute_ref>. A subpoena is not considered a district court order. These data <br/>
<a id="pl.81.12"></a><var>81.12</var>may be disseminated to and used by the following agencies without the consent of the <br/>
<a id="pl.81.13"></a><var>81.13</var>subject of the data:<br/>
<a id="pl.81.14"></a><var>81.14</var>    (1) state and federal agencies specifically authorized access to the data by state <br/>
<a id="pl.81.15"></a><var>81.15</var>or federal law;<br/>
<a id="pl.81.16"></a><var>81.16</var>    (2) any agency of any other state or any federal agency charged with the <br/>
<a id="pl.81.17"></a><var>81.17</var>administration of an unemployment insurance program;<br/>
<a id="pl.81.18"></a><var>81.18</var>    (3) any agency responsible for the maintenance of a system of public employment <br/>
<a id="pl.81.19"></a><var>81.19</var>offices for the purpose of assisting individuals in obtaining employment;<br/>
<a id="pl.81.20"></a><var>81.20</var>    (4) the public authority responsible for child support in Minnesota or any other <br/>
<a id="pl.81.21"></a><var>81.21</var>state in accordance with section 
         <statute_ref>256.978</statute_ref>;<br/>
<a id="pl.81.22"></a><var>81.22</var>    (5) human rights agencies within Minnesota that have enforcement powers;<br/>
<a id="pl.81.23"></a><var>81.23</var>    (6) the Department of Revenue to the extent necessary for its duties under Minnesota <br/>
<a id="pl.81.24"></a><var>81.24</var>laws;<br/>
<a id="pl.81.25"></a><var>81.25</var>    (7) public and private agencies responsible for administering publicly financed <br/>
<a id="pl.81.26"></a><var>81.26</var>assistance programs for the purpose of monitoring the eligibility of the program's recipients;<br/>
<a id="pl.81.27"></a><var>81.27</var>    (8) the Department of Labor and Industry and the Commerce Fraud Bureau in the <br/>
<a id="pl.81.28"></a><var>81.28</var>Department of Commerce for uses consistent with the administration of their duties under <br/>
<a id="pl.81.29"></a><var>81.29</var>Minnesota law;<br/>
<a id="pl.81.30"></a><var>81.30</var>    (9) the Department of Human Services and the Office of Inspector General and its <br/>
<a id="pl.81.31"></a><var>81.31</var>agents within the Department of Human Services, including county fraud investigators, <br/>
<a id="pl.81.32"></a><var>81.32</var>for investigations related to recipient or provider fraud and employees of providers when <br/>
<a id="pl.81.33"></a><var>81.33</var>the provider is suspected of committing public assistance fraud;<br/>
<a id="pl.81.34"></a><var>81.34</var>    (10) local and state welfare agencies for monitoring the eligibility of the data subject <br/>
<a id="pl.81.35"></a><var>81.35</var>for assistance programs, or for any employment or training program administered by those <br/>
<a id="pl.82.1"></a><var>82.1</var>agencies, whether alone, in combination with another welfare agency, or in conjunction <br/>
<a id="pl.82.2"></a><var>82.2</var>with the department or to monitor and evaluate the statewide Minnesota family investment <br/>
<a id="pl.82.3"></a><var>82.3</var>program by providing data on recipients and former recipients of food stamps or food <br/>
<a id="pl.82.4"></a><var>82.4</var>support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance <br/>
<a id="pl.82.5"></a><var>82.5</var>under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;<br/>
<a id="pl.82.6"></a><var>82.6</var>    (11) local and state welfare agencies for the purpose of identifying employment, <br/>
<a id="pl.82.7"></a><var>82.7</var>wages, and other information to assist in the collection of an overpayment debt in an <br/>
<a id="pl.82.8"></a><var>82.8</var>assistance program;<br/>
<a id="pl.82.9"></a><var>82.9</var>    (12) local, state, and federal law enforcement agencies for the purpose of <br/>
<a id="pl.82.10"></a><var>82.10</var>ascertaining the last known address and employment location of an individual who is the <br/>
<a id="pl.82.11"></a><var>82.11</var>subject of a criminal investigation;<br/>
<a id="pl.82.12"></a><var>82.12</var>    (13) the United States Immigration and Customs Enforcement has access to data on <br/>
<a id="pl.82.13"></a><var>82.13</var>specific individuals and specific employers provided the specific individual or specific <br/>
<a id="pl.82.14"></a><var>82.14</var>employer is the subject of an investigation by that agency;<br/>
<a id="pl.82.15"></a><var>82.15</var>    (14) the Department of Health for the purposes of epidemiologic investigations;<br/>
<a id="pl.82.16"></a><var>82.16</var>    (15) the Department of Corrections for the purpose of case planning for preprobation <br/>
<a id="pl.82.17"></a><var>82.17</var>and postprobation employment tracking of offenders sentenced to probation and <br/>
<a id="pl.82.18"></a><var>82.18</var>preconfinement and postconfinement employment tracking of committed offenders;<br/>
<a id="pl.82.19"></a><var>82.19</var>    (16) the state auditor to the extent necessary to conduct audits of job opportunity <br/>
<a id="pl.82.20"></a><var>82.20</var>building zones as required under section 
         <statute_ref>469.3201</statute_ref>; and<br/>
<a id="pl.82.21"></a><var>82.21</var>    (17) the Office of Higher Education for purposes of supporting program <br/>
<a id="pl.82.22"></a><var>82.22</var>improvement, system evaluation, and research initiatives including the Statewide <br/>
<a id="pl.82.23"></a><var>82.23</var>Longitudinal Education Data System; and<br/>
<a id="pl.82.24"></a><var>82.24</var>    (18) the Family and Medical Benefits Division of the Department of Employment <br/>
<a id="pl.82.25"></a><var>82.25</var>and Economic Development to be used as necessary to administer chapter 268B.<br/>
<a id="pl.82.26"></a><var>82.26</var>    (b) Data on individuals and employers that are collected, maintained, or used by <br/>
<a id="pl.82.27"></a><var>82.27</var>the department in an investigation under section 
         <statute_ref>268.182</statute_ref> are confidential as to data <br/>
<a id="pl.82.28"></a><var>82.28</var>on individuals and protected nonpublic data not on individuals as defined in section <br/>
<statute_ref><a id="pl.82.29"></a><var>82.29</var>13.02
         </statute_ref>, subdivisions 3 and 13, and must not be disclosed except under statute or district <br/>
<a id="pl.82.30"></a><var>82.30</var>court order or to a party named in a criminal proceeding, administrative or judicial, for <br/>
<a id="pl.82.31"></a><var>82.31</var>preparation of a defense.<br/>
<a id="pl.82.32"></a><var>82.32</var>    (c) Data gathered by the department in the administration of the Minnesota <br/>
<a id="pl.82.33"></a><var>82.33</var>unemployment insurance program must not be made the subject or the basis for any <br/>
<a id="pl.82.34"></a><var>82.34</var>suit in any civil proceedings, administrative or judicial, unless the action is initiated by <br/>
<a id="pl.82.35"></a><var>82.35</var>the department.<br/>
<br/>
<a id="bill.6.13.0"></a><a id="pl.83.1"></a><var>83.1</var>    Sec. 13. <b>[268B.01] DEFINITIONS.</b><br/>
<a id="pl.83.2"></a><var>83.2</var>    Subdivision 1. <b>Scope.</b> For the purposes of this chapter, the terms defined in this <br/>
<a id="pl.83.3"></a><var>83.3</var>section have the meanings given them.<br/>
<a id="pl.83.4"></a><var>83.4</var>    Subd. 2. <b>Account.</b> "Account" means the family and medical benefit insurance <br/>
<a id="pl.83.5"></a><var>83.5</var>account in the special revenue fund in the state treasury under section 268B.02.<br/>
<a id="pl.83.6"></a><var>83.6</var>    Subd. 3. <b>Applicant.</b> "Applicant" means an individual applying for benefits under <br/>
<a id="pl.83.7"></a><var>83.7</var>this chapter.<br/>
<a id="pl.83.8"></a><var>83.8</var>    Subd. 4. <b>Benefit.</b> "Benefit" means monetary payments under this chapter associated <br/>
<a id="pl.83.9"></a><var>83.9</var>with qualifying bonding, family, or pregnancy events.<br/>
<a id="pl.83.10"></a><var>83.10</var>    Subd. 5. <b>Commissioner.</b> "Commissioner" means the commissioner of employment <br/>
<a id="pl.83.11"></a><var>83.11</var>and economic development.<br/>
<a id="pl.83.12"></a><var>83.12</var>    Subd. 6. <b>Department.</b> "Department" means the Department of Employment and <br/>
<a id="pl.83.13"></a><var>83.13</var>Economic Development.<br/>
<a id="pl.83.14"></a><var>83.14</var>    Subd. 7. <b>Employee.</b> "Employee" means an individual for whom taxes are paid on <br/>
<a id="pl.83.15"></a><var>83.15</var>wages under this chapter.<br/>
<a id="pl.83.16"></a><var>83.16</var>    Subd. 8. <b>Employer.</b> "Employer" means a person or entity that employed 21 or <br/>
<a id="pl.83.17"></a><var>83.17</var>more employees within the state at any one time within the last four completed calendar <br/>
<a id="pl.83.18"></a><var>83.18</var>quarters, other than an employee, required to pay taxes under this chapter.<br/>
<a id="pl.83.19"></a><var>83.19</var>    Subd. 9. <b>Health care provider.</b> "Health care provider" means an individual who is <br/>
<a id="pl.83.20"></a><var>83.20</var>licensed, certified, or otherwise authorized under law to practice in the individual's state <br/>
<a id="pl.83.21"></a><var>83.21</var>of practice as a physician, osteopath, physician assistant, chiropractor, advanced practice <br/>
<a id="pl.83.22"></a><var>83.22</var>registered nurse, optometrist, licensed psychologist, licensed independent clinical social <br/>
<a id="pl.83.23"></a><var>83.23</var>worker, dentist, or podiatrist. "Chiropractor" means only a chiropractor who provides <br/>
<a id="pl.83.24"></a><var>83.24</var>manual manipulation of the spine to correct a subluxation demonstrated to exist by an x-ray.<br/>
<a id="pl.83.25"></a><var>83.25</var>    Subd. 10. <b>Pregnancy.</b> "Pregnancy" means prenatal care or incapacity of a woman <br/>
<a id="pl.83.26"></a><var>83.26</var>due to pregnancy, childbirth, or related health conditions.<br/>
<a id="pl.83.27"></a><var>83.27</var>    Subd. 11. <b>Family care.</b> "Family care" means an applicant caring for a family <br/>
<a id="pl.83.28"></a><var>83.28</var>member with a serious health condition.<br/>
<a id="pl.83.29"></a><var>83.29</var>    Subd. 12. <b>Bonding.</b> "Bonding" means a biological or adoptive parent in conjunction <br/>
<a id="pl.83.30"></a><var>83.30</var>with the birth or adoption of a child, or a foster parent in conjunction with the placement <br/>
<a id="pl.83.31"></a><var>83.31</var>of a child in foster care.<br/>
<a id="pl.83.32"></a><var>83.32</var>    Subd. 13. <b>Covered employment.</b> "Covered employment" has the meaning given in <br/>
<a id="pl.83.33"></a><var>83.33</var>section 268.035, subdivision 12.<br/>
<a id="pl.83.34"></a><var>83.34</var>    Subd. 14. <b>Noncovered employment.</b> "Noncovered employment" has the meaning <br/>
<a id="pl.83.35"></a><var>83.35</var>given in section 268.035, subdivision 20.<br/>
<a id="pl.84.1"></a><var>84.1</var>    Subd. 15. <b>Qualified health care provider.</b> "Qualified health care provider" means <br/>
<a id="pl.84.2"></a><var>84.2</var>a health care provider who, in the judgment of the commissioner, has the qualifications <br/>
<a id="pl.84.3"></a><var>84.3</var>necessary to diagnose or treat a particular health condition or conditions associated with <br/>
<a id="pl.84.4"></a><var>84.4</var>benefits sought under this chapter.<br/>
<a id="pl.84.5"></a><var>84.5</var>    Subd. 16. <b>Serious health condition.</b> "Serious health condition" means an illness, <br/>
<a id="pl.84.6"></a><var>84.6</var>injury, impairment, or physical or mental condition that involves:<br/>
<a id="pl.84.7"></a><var>84.7</var>(1) inpatient care in a hospital, hospice, or residential medical care facility; or<br/>
<a id="pl.84.8"></a><var>84.8</var>(2) continuing treatment by a health care provider.<br/>
<a id="pl.84.9"></a><var>84.9</var>    Subd. 17. <b>Wage credits.</b> "Wage credits" has the meaning given in section 268.035, <br/>
<a id="pl.84.10"></a><var>84.10</var>subdivision 27.<br/>
<a id="pl.84.11"></a><var>84.11</var>    Subd. 18. <b>High quarter.</b> "High quarter" has the meaning given in section 268.035, <br/>
<a id="pl.84.12"></a><var>84.12</var>subdivision 19.<br/>
<a id="pl.84.13"></a><var>84.13</var>    Subd. 19. <b>Maximum weekly benefit amount.</b> "Maximum weekly benefit amount" <br/>
<a id="pl.84.14"></a><var>84.14</var>means the state's average weekly wage as calculated under section 268.035, subdivision 23.<br/>
<a id="pl.84.15"></a><var>84.15</var>    Subd. 20. <b>ICD code.</b> "ICD code" means the code under the International <br/>
<a id="pl.84.16"></a><var>84.16</var>Classification of Diseases, Clinical Modification/Coding System, for the most recent <br/>
<a id="pl.84.17"></a><var>84.17</var>edition commonly used.<br/>
<a id="pl.84.18"></a><var>84.18</var>    Subd. 21. <b>Medical benefit program.</b> "Medical benefit program" means the program <br/>
<a id="pl.84.19"></a><var>84.19</var>administered under this chapter for the collection of taxes and payment of benefits related <br/>
<a id="pl.84.20"></a><var>84.20</var>to pregnancy benefits.<br/>
<a id="pl.84.21"></a><var>84.21</var>    Subd. 22. <b>Family benefit program.</b> "Family benefit program" means the program <br/>
<a id="pl.84.22"></a><var>84.22</var>administered under this chapter for the collection of taxes and payment of benefits related <br/>
<a id="pl.84.23"></a><var>84.23</var>to family care and bonding.<br/>
<a id="pl.84.24"></a><var>84.24</var>    Subd. 23. <b>State's average weekly wage.</b> "State's average weekly wage" means the <br/>
<a id="pl.84.25"></a><var>84.25</var>weekly wage calculated under section 268.035, subdivision 23.<br/>
<a id="pl.84.26"></a><var>84.26</var>    Subd. 24. <b>Family member.</b> "Family member" means an employee's child, adult <br/>
<a id="pl.84.27"></a><var>84.27</var>child, spouse, sibling, parent, foster parent, mother-in-law, father-in-law, grandchild, <br/>
<a id="pl.84.28"></a><var>84.28</var>grandparent, or stepparent.<br/>
<br/>
<a id="bill.6.14.0"></a><a id="pl.84.29"></a><var>84.29</var>    Sec. 14. <b>[268B.02] FAMILY AND MEDICAL BENEFIT INSURANCE </b><br/>
<a id="pl.84.30"></a><var>84.30</var><b>PROGRAM CREATION.</b><br/>
<a id="pl.84.31"></a><var>84.31</var>    Subdivision 1. <b>Creation.</b> A family and medical benefit insurance program is created <br/>
<a id="pl.84.32"></a><var>84.32</var>to be administered by the commissioner according to the terms of this chapter.<br/>
<a id="pl.84.33"></a><var>84.33</var>    Subd. 2. <b>Creation of division.</b> A Family and Medical Benefit Insurance Division is <br/>
<a id="pl.84.34"></a><var>84.34</var>created within the department under the authority of the commissioner. The commissioner <br/>
<a id="pl.85.1"></a><var>85.1</var>shall appoint a director of the division. The division shall administer and operate the <br/>
<a id="pl.85.2"></a><var>85.2</var>benefit program under this chapter.<br/>
<a id="pl.85.3"></a><var>85.3</var>    Subd. 3. <b>Rulemaking.</b> The commissioner may adopt rules to implement the <br/>
<a id="pl.85.4"></a><var>85.4</var>provisions of this chapter.<br/>
<a id="pl.85.5"></a><var>85.5</var>    Subd. 4. <b>Account creation; appropriation.</b> The family and medical benefit <br/>
<a id="pl.85.6"></a><var>85.6</var>insurance account is created in the special revenue fund in the state treasury. Money in <br/>
<a id="pl.85.7"></a><var>85.7</var>this account is appropriated to the commissioner to pay benefits under and to administer <br/>
<a id="pl.85.8"></a><var>85.8</var>this chapter.<br/>
<br/>
<a id="bill.6.15.0"></a><a id="pl.85.9"></a><var>85.9</var>    Sec. 15. <b>[268B.03] ELIGIBILITY.</b><br/>
<a id="pl.85.10"></a><var>85.10</var>    Subdivision 1. <b>Applicant.</b> An applicant who is providing family care, is bonding, <br/>
<a id="pl.85.11"></a><var>85.11</var>or is pregnant, who satisfies the conditions of this section is eligible to receive benefits <br/>
<a id="pl.85.12"></a><var>85.12</var>subject to the provisions of this chapter.<br/>
<a id="pl.85.13"></a><var>85.13</var>    Subd. 2. <b>Wage credits.</b> An applicant must have sufficient wage credits from an <br/>
<a id="pl.85.14"></a><var>85.14</var>employer as defined in section 268B.01, subdivision 8, to establish a benefit account under <br/>
<a id="pl.85.15"></a><var>85.15</var>section 268.07, subdivision 2. Wage credits from an employer during a period in which <br/>
<a id="pl.85.16"></a><var>85.16</var>the employer has successfully opted out of the benefit program being applied for may not <br/>
<a id="pl.85.17"></a><var>85.17</var>be used for the purposes of this subdivision.<br/>
<a id="pl.85.18"></a><var>85.18</var>    Subd. 3. <b>Seven-day qualifying event.</b> The period for which an applicant is seeking <br/>
<a id="pl.85.19"></a><var>85.19</var>benefits must be or have been based on a single period of at least seven days related to <br/>
<a id="pl.85.20"></a><var>85.20</var>pregnancy, family care, or bonding. The days need not be consecutive.<br/>
<a id="pl.85.21"></a><var>85.21</var>    Subd. 4. <b>Ineligible.</b> An applicant is not eligible for benefits for any day in which the <br/>
<a id="pl.85.22"></a><var>85.22</var>applicant worked for pay.<br/>
<a id="pl.85.23"></a><var>85.23</var>    Subd. 5. <b>Certification by health care provider.</b> Except for bonding benefits, the <br/>
<a id="pl.85.24"></a><var>85.24</var>application for benefits must be certified in writing by a qualified health care professional.<br/>
<a id="pl.85.25"></a><var>85.25</var>    Subd. 6. <b>Records release.</b> An individual whose medical records are necessary to <br/>
<a id="pl.85.26"></a><var>85.26</var>determine eligibility for benefits under this chapter must sign and date a legally effective <br/>
<a id="pl.85.27"></a><var>85.27</var>waiver authorizing release to the department of medical and other records to the limited <br/>
<a id="pl.85.28"></a><var>85.28</var>extent necessary to administer this chapter.<br/>
<a id="pl.85.29"></a><var>85.29</var>    Subd. 7. <b>Self-employed applicant.</b> (a) To be eligible for benefits, a self-employed <br/>
<a id="pl.85.30"></a><var>85.30</var>individual who has elected coverage under section 268B.11 must fulfill only the <br/>
<a id="pl.85.31"></a><var>85.31</var>requirements, to the extent possible, of subdivisions 3, 4, 5, and 6 in addition to the <br/>
<a id="pl.85.32"></a><var>85.32</var>requirements under paragraph (b).<br/>
<a id="pl.85.33"></a><var>85.33</var>(b) A self-employed individual must provide documents sufficient to prove the <br/>
<a id="pl.85.34"></a><var>85.34</var>existence of the individual's business as well as how long that business has been in <br/>
<a id="pl.86.1"></a><var>86.1</var>operation. The commissioner must determine that the business was not created for the <br/>
<a id="pl.86.2"></a><var>86.2</var>purpose of obtaining benefits under this chapter.<br/>
<br/>
<a id="bill.6.16.0"></a><a id="pl.86.3"></a><var>86.3</var>    Sec. 16. <b>[268B.04] APPLICATIONS.</b><br/>
<a id="pl.86.4"></a><var>86.4</var>    Subdivision 1. <b>Application forms.</b> The commissioner must create application <br/>
<a id="pl.86.5"></a><var>86.5</var>forms, to be available both online and on paper, for each of the following:<br/>
<a id="pl.86.6"></a><var>86.6</var>(1) an application for family care benefits;<br/>
<a id="pl.86.7"></a><var>86.7</var>(2) an application for bonding benefits; and<br/>
<a id="pl.86.8"></a><var>86.8</var>(3) an application for pregnancy benefits.<br/>
<a id="pl.86.9"></a><var>86.9</var>    Subd. 2. <b> Content of applications.</b> (a) All three application forms under subdivision <br/>
<a id="pl.86.10"></a><var>86.10</var>1 must require, at a minimum, the following:<br/>
<a id="pl.86.11"></a><var>86.11</var>(1) the name, birth date, home address, and mailing address of the applicant;<br/>
<a id="pl.86.12"></a><var>86.12</var>(2) the Social Security number, or other unique identification number, of the applicant;<br/>
<a id="pl.86.13"></a><var>86.13</var>(3) a description of the qualifying event underlying the requested benefit;<br/>
<a id="pl.86.14"></a><var>86.14</var>(4) the date for which benefits are sought began or will begin, if known;<br/>
<a id="pl.86.15"></a><var>86.15</var>(5) the date for which benefits are sought ended or will end, if known;<br/>
<a id="pl.86.16"></a><var>86.16</var>(6) whether the benefits are sought on an intermittent basis;<br/>
<a id="pl.86.17"></a><var>86.17</var>(7) whether the applicant has applied for or received any other paid benefits, whether <br/>
<a id="pl.86.18"></a><var>86.18</var>public or private, based on the same event underlying the benefits sought or during the <br/>
<a id="pl.86.19"></a><var>86.19</var>same time period for which the applicant is seeking benefits;<br/>
<a id="pl.86.20"></a><var>86.20</var>(8) a description of any benefits listed under clause (7);<br/>
<a id="pl.86.21"></a><var>86.21</var>(9) a signed and dated certification that all the information contained in the <br/>
<a id="pl.86.22"></a><var>86.22</var>application is true and correct, to the best of the applicant's knowledge; and<br/>
<a id="pl.86.23"></a><var>86.23</var>(10) a list of all the applicant's employers for the past 79 weeks.<br/>
<a id="pl.86.24"></a><var>86.24</var>(b) In addition to the requirements of paragraph (a), an application for family care <br/>
<a id="pl.86.25"></a><var>86.25</var>benefits must contain, at a minimum, the following:<br/>
<a id="pl.86.26"></a><var>86.26</var>(1) the name, birth date, home address, and mailing address of the family member <br/>
<a id="pl.86.27"></a><var>86.27</var>for whom the applicant has provided or will be providing care;<br/>
<a id="pl.86.28"></a><var>86.28</var>(2) the family member's relationship to the applicant;<br/>
<a id="pl.86.29"></a><var>86.29</var>(3) the Social Security number, or other unique identification number, of the family <br/>
<a id="pl.86.30"></a><var>86.30</var>member for whom the applicant has provided or will be providing care;<br/>
<a id="pl.86.31"></a><var>86.31</var>(4) a certification from the care recipient, or the care recipient's authorized <br/>
<a id="pl.86.32"></a><var>86.32</var>representative, that all the information contained in the application is true and correct, <br/>
<a id="pl.86.33"></a><var>86.33</var>to the best of that individual's knowledge;<br/>
<a id="pl.87.1"></a><var>87.1</var>(5) a legally effective authorization, signed and dated by the care recipient or the <br/>
<a id="pl.87.2"></a><var>87.2</var>care recipient's authorized representative, for disclosure of medical information needed by <br/>
<a id="pl.87.3"></a><var>87.3</var>the department to fulfill its duties under this chapter; and <br/>
<a id="pl.87.4"></a><var>87.4</var>(6) a signed and dated certification by a qualified health care provider treating the <br/>
<a id="pl.87.5"></a><var>87.5</var>care recipient:<br/>
<a id="pl.87.6"></a><var>87.6</var>(i) describing the nature of the serious medical condition or conditions of the care <br/>
<a id="pl.87.7"></a><var>87.7</var>recipient;<br/>
<a id="pl.87.8"></a><var>87.8</var>(ii) stating whether care by another individual is necessary in the treatment, or will <br/>
<a id="pl.87.9"></a><var>87.9</var>aid in the recovery, of the care recipient;<br/>
<a id="pl.87.10"></a><var>87.10</var>(iii) describing the nature of the care under item (ii);<br/>
<a id="pl.87.11"></a><var>87.11</var>(iv) stating or estimating the dates benefits are needed; and<br/>
<a id="pl.87.12"></a><var>87.12</var>(v) listing the ICD code or codes, if any, of the serious medical condition or <br/>
<a id="pl.87.13"></a><var>87.13</var>conditions underlying the application for benefits.<br/>
<a id="pl.87.14"></a><var>87.14</var>(c) In addition to the requirements of paragraph (a), an application for benefits for <br/>
<a id="pl.87.15"></a><var>87.15</var>bonding must contain, at a minimum, the following:<br/>
<a id="pl.87.16"></a><var>87.16</var>(1) proof of the birth, adoption, or placement in foster care, as appropriate, of the <br/>
<a id="pl.87.17"></a><var>87.17</var>child for whom bonding benefits are sought; and<br/>
<a id="pl.87.18"></a><var>87.18</var>(2) a legally effective authorization, signed and dated by the applicant or other <br/>
<a id="pl.87.19"></a><var>87.19</var>authorized representative of the child for whom bonding benefits are sought, for disclosure <br/>
<a id="pl.87.20"></a><var>87.20</var>of medical information needed by the department to fulfill its duties under this chapter.<br/>
<a id="pl.87.21"></a><var>87.21</var>(d) In addition to the requirements of paragraph (a), an application for pregnancy <br/>
<a id="pl.87.22"></a><var>87.22</var>benefits must contain, at a minimum, the following:<br/>
<a id="pl.87.23"></a><var>87.23</var>(1) a legally effective authorization, signed and dated by the applicant or the <br/>
<a id="pl.87.24"></a><var>87.24</var>applicant's authorized representative, for disclosure of medical information needed by the <br/>
<a id="pl.87.25"></a><var>87.25</var>department to fulfill its duties under this chapter; and <br/>
<a id="pl.87.26"></a><var>87.26</var>(2) a signed and dated certification by a qualified health care provider treating the <br/>
<a id="pl.87.27"></a><var>87.27</var>applicant:<br/>
<a id="pl.87.28"></a><var>87.28</var>(i) describing the reason or reasons that pregnancy care is needed;<br/>
<a id="pl.87.29"></a><var>87.29</var>(ii) stating or estimating the dates care is needed; and<br/>
<a id="pl.87.30"></a><var>87.30</var>(iii) listing the ICD code or codes, if any, of the condition or conditions underlying <br/>
<a id="pl.87.31"></a><var>87.31</var>the application for benefits.<br/>
<a id="pl.87.32"></a><var>87.32</var>    Subd. 3. <b>Online access.</b> The commissioner must, to the extent possible, create a <br/>
<a id="pl.87.33"></a><var>87.33</var>system allowing for all aspects of the applications under this section to be completed <br/>
<a id="pl.87.34"></a><var>87.34</var>online. This includes the use of electronic signatures.<br/>
<a id="pl.88.1"></a><var>88.1</var>    Subd. 4. <b>Administrative efficiencies.</b> To the maximum extent feasible, the <br/>
<a id="pl.88.2"></a><var>88.2</var>commissioner must use the same or similar procedures for applications under this section <br/>
<a id="pl.88.3"></a><var>88.3</var>as for applications for benefits under chapter 268.<br/>
<br/>
<a id="bill.6.17.0"></a><a id="pl.88.4"></a><var>88.4</var>    Sec. 17. <b>[268B.05] DETERMINATION OF APPLICATION.</b><br/>
<a id="pl.88.5"></a><var>88.5</var>Upon the filing of a complete application for benefits, the commissioner shall examine <br/>
<a id="pl.88.6"></a><var>88.6</var>the application and on the basis of facts found by the commissioner and records maintained <br/>
<a id="pl.88.7"></a><var>88.7</var>by the department, the application shall be determined to be valid or invalid within two <br/>
<a id="pl.88.8"></a><var>88.8</var>weeks. If the application is determined to be valid, the commissioner shall promptly notify <br/>
<a id="pl.88.9"></a><var>88.9</var>the applicant and any other interested party as to the week when benefits commence, <br/>
<a id="pl.88.10"></a><var>88.10</var>the weekly benefit amount payable, and the maximum duration of those benefits. If the <br/>
<a id="pl.88.11"></a><var>88.11</var>application is determined to be invalid, the commissioner shall notify the applicant and <br/>
<a id="pl.88.12"></a><var>88.12</var>any other interested party of that determination and the reasons for it. If the processing <br/>
<a id="pl.88.13"></a><var>88.13</var>of the application is delayed for any reason, the commissioner shall notify the applicant, <br/>
<a id="pl.88.14"></a><var>88.14</var>in writing, within two weeks of the date the application for benefits is filed of the reason <br/>
<a id="pl.88.15"></a><var>88.15</var>for the delay. Unless the applicant or any other interested party, within 30 days, requests <br/>
<a id="pl.88.16"></a><var>88.16</var>a hearing before a benefit judge, the determination is final. For good cause shown, the <br/>
<a id="pl.88.17"></a><var>88.17</var>30-day period may be extended. At any time within one year from the date of a monetary <br/>
<a id="pl.88.18"></a><var>88.18</var>determination, the commissioner, upon request of the applicant or on the commissioner's <br/>
<a id="pl.88.19"></a><var>88.19</var>own initiative, may reconsider the determination if it is found that an error in computation <br/>
<a id="pl.88.20"></a><var>88.20</var>or identity has occurred in connection with the determination or that additional wages <br/>
<a id="pl.88.21"></a><var>88.21</var>pertinent to the applicant's status have become available, or if that determination has been <br/>
<a id="pl.88.22"></a><var>88.22</var>made as a result of a nondisclosure or misrepresentation of a material fact.<br/>
<br/>
<a id="bill.6.18.0"></a><a id="pl.88.23"></a><var>88.23</var>    Sec. 18. <b>[268B.06] EMPLOYER NOTIFICATION.</b><br/>
<a id="pl.88.24"></a><var>88.24</var>(a) Upon a determination under section 268B.05 that an applicant is entitled to <br/>
<a id="pl.88.25"></a><var>88.25</var>benefits, the commissioner must promptly send a notification to each current employer <br/>
<a id="pl.88.26"></a><var>88.26</var>of the applicant, if any, in accordance with paragraph (b).<br/>
<a id="pl.88.27"></a><var>88.27</var>(b) The notification under paragraph (a) must include, at a minimum:<br/>
<a id="pl.88.28"></a><var>88.28</var>(1) the name of the applicant;<br/>
<a id="pl.88.29"></a><var>88.29</var>(2) that the applicant has applied for and received benefits;<br/>
<a id="pl.88.30"></a><var>88.30</var>(3) that the applicant has been identified as an employee of the employer;<br/>
<a id="pl.88.31"></a><var>88.31</var>(4) the week the benefits commence;<br/>
<a id="pl.88.32"></a><var>88.32</var>(5) the weekly benefit amount payable;<br/>
<a id="pl.88.33"></a><var>88.33</var>(6) the maximum duration of benefits;<br/>
<a id="pl.88.34"></a><var>88.34</var>(7) an explanation of why the notification has been sent; and<br/>
<a id="pl.89.1"></a><var>89.1</var>(8) descriptions of the employer's right to participate in a hearing under section <br/>
<a id="pl.89.2"></a><var>89.2</var>268B.05, and appeal process under section 268B.07.<br/>
<br/>
<a id="bill.6.19.0"></a><a id="pl.89.3"></a><var>89.3</var>    Sec. 19. <b>[268B.07] APPEAL PROCESS.</b><br/>
<a id="pl.89.4"></a><var>89.4</var>    Subdivision 1. <b>Hearing.</b> (a) The commissioner shall designate a chief benefit judge.<br/>
<a id="pl.89.5"></a><var>89.5</var>    (b) Upon a timely appeal to a determination having been filed or upon a referral <br/>
<a id="pl.89.6"></a><var>89.6</var>for direct hearing, the chief benefit judge must set a time and date for a de novo due <br/>
<a id="pl.89.7"></a><var>89.7</var>process hearing and send notice to an applicant and an employer, by mail or electronic <br/>
<a id="pl.89.8"></a><var>89.8</var>transmission, not less than ten calendar days before the date of the hearing.<br/>
<a id="pl.89.9"></a><var>89.9</var>    (c) The commissioner may adopt rules on procedures for hearings. The rules need <br/>
<a id="pl.89.10"></a><var>89.10</var>not conform to common law or statutory rules of evidence and other technical rules of <br/>
<a id="pl.89.11"></a><var>89.11</var>procedure.<br/>
<a id="pl.89.12"></a><var>89.12</var>    (d) The chief benefit judge has discretion regarding the method by which the hearing <br/>
<a id="pl.89.13"></a><var>89.13</var>is conducted.<br/>
<a id="pl.89.14"></a><var>89.14</var>    Subd. 2. <b>Decision.</b> (a) After the conclusion of the hearing, upon the evidence <br/>
<a id="pl.89.15"></a><var>89.15</var>obtained, the benefit judge must send by mail or electronic transmission to all parties, the <br/>
<a id="pl.89.16"></a><var>89.16</var>decision, reasons for the decision, and written findings of fact.<br/>
<a id="pl.89.17"></a><var>89.17</var>    (b) Decisions of a benefit judge are not precedential.<br/>
<a id="pl.89.18"></a><var>89.18</var>    Subd. 3. <b>Request for reconsideration.</b> Any party, or the commissioner, may, <br/>
<a id="pl.89.19"></a><var>89.19</var>within 30 calendar days of the receipt of the benefit judge's decision, file a request for <br/>
<a id="pl.89.20"></a><var>89.20</var>reconsideration asking the judge to reconsider that decision.<br/>
<a id="pl.89.21"></a><var>89.21</var>    Subd. 4. <b>Appeal to Court of Appeals.</b> Any final determination on a request for <br/>
<a id="pl.89.22"></a><var>89.22</var>reconsideration may be appealed by any party directly to the Minnesota Court of Appeals.<br/>
<a id="pl.89.23"></a><var>89.23</var>    Subd. 5. <b>Benefit judges.</b> (a) Only employees of the department who are attorneys <br/>
<a id="pl.89.24"></a><var>89.24</var>licensed to practice law in Minnesota may serve as a chief benefit judge, senior benefit <br/>
<a id="pl.89.25"></a><var>89.25</var>judges who are supervisors, or benefit judges.<br/>
<a id="pl.89.26"></a><var>89.26</var>    (b) The chief benefit judge must assign a benefit judge to conduct a hearing and may <br/>
<a id="pl.89.27"></a><var>89.27</var>transfer to another benefit judge any proceedings pending before another benefit judge.<br/>
<br/>
<a id="bill.6.20.0"></a><a id="pl.89.28"></a><var>89.28</var>    Sec. 20. <b>[268B.08] BENEFITS.</b><br/>
<a id="pl.89.29"></a><var>89.29</var>    Subdivision 1. <b>Weekly benefit amount.</b> (a) Subject to the maximum weekly benefit <br/>
<a id="pl.89.30"></a><var>89.30</var>amount, an applicant's weekly benefit is calculated by adding the amounts obtained by <br/>
<a id="pl.89.31"></a><var>89.31</var>applying the following percentage to an applicant's average weekly wage earned with an <br/>
<a id="pl.89.32"></a><var>89.32</var>employer as defined in section 268B.01, subdivision 8:<br/>
<a id="pl.89.33"></a><var>89.33</var>(1) 80 percent of wages that do not exceed 50 percent of the state's average weekly <br/>
<a id="pl.89.34"></a><var>89.34</var>wage; plus<br/>
<a id="pl.90.1"></a><var>90.1</var>(2) 66 percent of wages that exceed 50 percent of the state's average weekly wage <br/>
<a id="pl.90.2"></a><var>90.2</var>but not 100 percent; plus <br/>
<a id="pl.90.3"></a><var>90.3</var>(3) 55 percent of wages that exceed 100 percent of the state's average weekly wage.<br/>
<a id="pl.90.4"></a><var>90.4</var>(b) The average weekly wage of the applicant under paragraph (a) must be calculated <br/>
<a id="pl.90.5"></a><var>90.5</var>by dividing the high quarter wage credits of the applicant by 13.<br/>
<a id="pl.90.6"></a><var>90.6</var>(c) The state's average weekly wage is the average wage as calculated under section <br/>
<a id="pl.90.7"></a><var>90.7</var>268.035, subdivision 23, at the time a benefit amount is first determined.<br/>
<a id="pl.90.8"></a><var>90.8</var>(d) Notwithstanding any other provision in this section, weekly benefits must not <br/>
<a id="pl.90.9"></a><var>90.9</var>exceed the maximum weekly benefit amount applicable at the time benefit payments <br/>
<a id="pl.90.10"></a><var>90.10</var>commence.<br/>
<a id="pl.90.11"></a><var>90.11</var>    Subd. 2. <b>Timing of payment.</b> Except as otherwise provided for in this chapter, <br/>
<a id="pl.90.12"></a><var>90.12</var>benefits must be paid weekly.<br/>
<a id="pl.90.13"></a><var>90.13</var>    Subd. 3. <b>Method of payment.</b> The commissioner may pay benefits using any <br/>
<a id="pl.90.14"></a><var>90.14</var>method or methods authorized for the payment of unemployment insurance benefits <br/>
<a id="pl.90.15"></a><var>90.15</var>under chapter 268.<br/>
<a id="pl.90.16"></a><var>90.16</var>    Subd. 4. <b>Maximum length of benefits.</b> In a 52-week period, an applicant may <br/>
<a id="pl.90.17"></a><var>90.17</var>receive a total of 12 weeks of benefits under this chapter.<br/>
<a id="pl.90.18"></a><var>90.18</var>    Subd. 5. <b>Minimum period for which benefits payable.</b> Any claim for benefits <br/>
<a id="pl.90.19"></a><var>90.19</var>must be based on a single-qualifying benefit period of at least seven days; thereafter, <br/>
<a id="pl.90.20"></a><var>90.20</var>benefits may be paid for a minimum increment of one day.<br/>
<a id="pl.90.21"></a><var>90.21</var>    Subd. 6. <b>Total paid benefits not to exceed average weekly wage.</b> An applicant's <br/>
<a id="pl.90.22"></a><var>90.22</var>combined weekly employer-paid wage replacement benefits and benefits under this <br/>
<a id="pl.90.23"></a><var>90.23</var>chapter must not exceed an applicant's average weekly wage. Benefits under this chapter <br/>
<a id="pl.90.24"></a><var>90.24</var>must be reduced so those combined benefits do not exceed that amount.<br/>
<a id="pl.90.25"></a><var>90.25</var>    Subd. 7. <b>Withholding of federal tax.</b> If the Internal Revenue Service determines <br/>
<a id="pl.90.26"></a><var>90.26</var>that benefits are subject to federal income tax, and an applicant elects to have federal <br/>
<a id="pl.90.27"></a><var>90.27</var>income tax deducted and withheld from the applicant's benefits, the commissioner must <br/>
<a id="pl.90.28"></a><var>90.28</var>deduct and withhold the amount specified in the Internal Revenue Code in a manner <br/>
<a id="pl.90.29"></a><var>90.29</var>consistent with state law.<br/>
<a id="pl.90.30"></a><var>90.30</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2020.<br/>
<br/>
<a id="bill.6.21.0"></a><a id="pl.90.31"></a><var>90.31</var>    Sec. 21. <b>[268B.09] EMPLOYMENT PROTECTIONS.</b><br/>
<a id="pl.90.32"></a><var>90.32</var>    Subdivision 1. <b>Retaliation prohibited.</b> An employer must not retaliate against an <br/>
<a id="pl.90.33"></a><var>90.33</var>employee for requesting or obtaining benefits, or for exercising any other right under <br/>
<a id="pl.90.34"></a><var>90.34</var>this chapter.<br/>
<a id="pl.91.1"></a><var>91.1</var>    Subd. 2. <b>Waiver of rights void.</b>  An agreement by an individual to waive, release, <br/>
<a id="pl.91.2"></a><var>91.2</var>or commute rights to benefits under this chapter is void. An employer may not obstruct or <br/>
<a id="pl.91.3"></a><var>91.3</var>impede an application for benefits.<br/>
<a id="pl.91.4"></a><var>91.4</var>    Subd. 3. <b>No assignment of benefits.</b>  Any assignment, pledge, or encumbrance <br/>
<a id="pl.91.5"></a><var>91.5</var>of benefits is void. Benefits are exempt from levy, execution, attachment, or any other <br/>
<a id="pl.91.6"></a><var>91.6</var>remedy provided for the collection of debt. Any waiver of this subdivision is void.<br/>
<a id="pl.91.7"></a><var>91.7</var>    Subd. 4. <b>Remedies.</b> In addition to any other remedies available by law, an individual <br/>
<a id="pl.91.8"></a><var>91.8</var>injured by a violation of this section may bring a civil action seeking any damages <br/>
<a id="pl.91.9"></a><var>91.9</var>recoverable by law, together with costs and disbursements, including reasonable attorney <br/>
<a id="pl.91.10"></a><var>91.10</var>fees, and may receive injunctive and other equitable relief as determined by a court.<br/>
<a id="pl.91.11"></a><var>91.11</var>    Subd. 5. <b>Leave and employment rights not created.</b> This chapter does not create <br/>
<a id="pl.91.12"></a><var>91.12</var>a right to employment leave to an individual receiving benefits under this chapter. This <br/>
<a id="pl.91.13"></a><var>91.13</var>chapter does not create a right to return to an employment position before, during, or after <br/>
<a id="pl.91.14"></a><var>91.14</var>the receipt of benefits under this chapter.<br/>
<br/>
<a id="bill.6.22.0"></a><a id="pl.91.15"></a><var>91.15</var>    Sec. 22. <b>[268B.10] SUBSTITUTION OF OTHER PLAN; EMPLOYER </b><br/>
<a id="pl.91.16"></a><var>91.16</var><b>EXCLUSION.</b><br/>
<a id="pl.91.17"></a><var>91.17</var>    Subdivision 1. <b>Application for exclusion.</b> An employer may apply to the <br/>
<a id="pl.91.18"></a><var>91.18</var>commissioner to be excluded from either or both the family and medical benefit programs <br/>
<a id="pl.91.19"></a><var>91.19</var>under this chapter.<br/>
<a id="pl.91.20"></a><var>91.20</var>    Subd. 2. <b>Requirements for approving exclusion.</b> The commissioner must approve <br/>
<a id="pl.91.21"></a><var>91.21</var>an application for exclusion from a program under this chapter if the commissioner finds <br/>
<a id="pl.91.22"></a><var>91.22</var>that the employer provides a benefit plan that:<br/>
<a id="pl.91.23"></a><var>91.23</var>(1) covers all of the employees that would be covered by a program under this chapter;<br/>
<a id="pl.91.24"></a><var>91.24</var>(2) provides an amount of employer-provided wage benefits that when combined <br/>
<a id="pl.91.25"></a><var>91.25</var>with other employer-paid and employee-paid wage benefits is approximately equal to or <br/>
<a id="pl.91.26"></a><var>91.26</var>greater than that provided under the program; and<br/>
<a id="pl.91.27"></a><var>91.27</var>(3) does not require employee payments that exceed employee payments required <br/>
<a id="pl.91.28"></a><var>91.28</var>under this chapter.<br/>
<a id="pl.91.29"></a><var>91.29</var>    Subd. 3. <b>Audit and investigation.</b> The commissioner may investigate and audit <br/>
<a id="pl.91.30"></a><var>91.30</var>plans for which an exclusion was approved under this section both before and after an <br/>
<a id="pl.91.31"></a><var>91.31</var>exclusion is approved.<br/>
<a id="pl.91.32"></a><var>91.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2019, for exclusions <br/>
<a id="pl.91.33"></a><var>91.33</var>commencing January 1, 2020, and thereafter.<br/>
<br/>
<a id="bill.6.23.0"></a><a id="pl.91.34"></a><var>91.34</var>    Sec. 23. <b>[268B.11] SELF-EMPLOYED ELECTION OF COVERAGE.</b><br/>
<a id="pl.92.1"></a><var>92.1</var>(a) A self-employed individual may file with the commissioner, by electronic <br/>
<a id="pl.92.2"></a><var>92.2</var>transmission in a format prescribed by the commissioner, an election that the individual is <br/>
<a id="pl.92.3"></a><var>92.3</var>covered as an employee for not less than two calendar years. Upon the approval of the <br/>
<a id="pl.92.4"></a><var>92.4</var>commissioner, sent by United States mail or electronic transmission, the individual is <br/>
<a id="pl.92.5"></a><var>92.5</var>covered as an employee under this chapter beginning the calendar quarter after the date <br/>
<a id="pl.92.6"></a><var>92.6</var>of approval or beginning in a later calendar quarter if requested by the employer. The <br/>
<a id="pl.92.7"></a><var>92.7</var>individual ceases to be covered as of the first day of January of any calendar year only if, <br/>
<a id="pl.92.8"></a><var>92.8</var>at least 30 calendar days before the first day of January, the individual has filed with the <br/>
<a id="pl.92.9"></a><var>92.9</var>commissioner, by electronic transmission in a format prescribed by the commissioner, a <br/>
<a id="pl.92.10"></a><var>92.10</var>notice to that effect.<br/>
<a id="pl.92.11"></a><var>92.11</var>(b) The commissioner must terminate any election agreement under this section <br/>
<a id="pl.92.12"></a><var>92.12</var>upon 30 calendar days' notice sent by mail or electronic transmission if the individual is <br/>
<a id="pl.92.13"></a><var>92.13</var>delinquent on any taxes due under this chapter.<br/>
<a id="pl.92.14"></a><var>92.14</var>(c) The individual electing under this section must pay both the employer and <br/>
<a id="pl.92.15"></a><var>92.15</var>employee taxes under section 268B.12.<br/>
<a id="pl.92.16"></a><var>92.16</var>(d) The individual must comply with the requirements imposed on employers and <br/>
<a id="pl.92.17"></a><var>92.17</var>employees under this chapter except to the extent the commissioner determines requiring <br/>
<a id="pl.92.18"></a><var>92.18</var>compliance is unreasonable.<br/>
<br/>
<a id="bill.6.24.0"></a><a id="pl.92.19"></a><var>92.19</var>    Sec. 24. <b>[268B.111] SMALL EMPLOYER ELECTION OF COVERAGE.</b><br/>
<a id="pl.92.20"></a><var>92.20</var>An employer of less than 21 employees may elect to be an employer subject to <br/>
<a id="pl.92.21"></a><var>92.21</var>chapter 268B. An election must be filed with the commissioner by electronic transmission <br/>
<a id="pl.92.22"></a><var>92.22</var>in a format prescribed by the commissioner. An election must be for not less than two <br/>
<a id="pl.92.23"></a><var>92.23</var>calendar years following the year of election. The commissioner shall notify an employer <br/>
<a id="pl.92.24"></a><var>92.24</var>of the effective date of an election which must be the beginning of the first quarter the <br/>
<a id="pl.92.25"></a><var>92.25</var>commissioner determines is administratively practical.<br/>
<br/>
<a id="bill.6.25.0"></a><a id="pl.92.26"></a><var>92.26</var>    Sec. 25. <b>[268B.12] TAXATION.</b><br/>
<a id="pl.92.27"></a><var>92.27</var>    Subdivision 1. <b>Employer.</b> (a) Each taxpaying employer under the state's <br/>
<a id="pl.92.28"></a><var>92.28</var>unemployment insurance program must pay a tax on the wages paid to employees in <br/>
<a id="pl.92.29"></a><var>92.29</var>covered employment for each calendar year. The tax must be paid on all wages up to the <br/>
<a id="pl.92.30"></a><var>92.30</var>maximum specified by this section.<br/>
<a id="pl.92.31"></a><var>92.31</var>(b) Each reimbursing employer under the state's unemployment insurance law must <br/>
<a id="pl.92.32"></a><var>92.32</var>pay a tax on the wages paid to employees in covered employment in the same amount <br/>
<a id="pl.92.33"></a><var>92.33</var>and manner as provided by paragraph (a).<br/>
<a id="pl.93.1"></a><var>93.1</var>    Subd. 2. <b>Employee.</b> Each employee on whose wages a tax is paid under this <br/>
<a id="pl.93.2"></a><var>93.2</var>section must pay a tax equal to that of the employer under this section. The employer <br/>
<a id="pl.93.3"></a><var>93.3</var>shall withhold employee taxes from the wages of an employee and make payment to the <br/>
<a id="pl.93.4"></a><var>93.4</var>commissioner on behalf of an employee.<br/>
<a id="pl.93.5"></a><var>93.5</var>    Subd. 3. <b>Wages subject to tax.</b> The maximum wages subject to tax in a calendar <br/>
<a id="pl.93.6"></a><var>93.6</var>year is equal to the maximum earnings in that year subject to the FICA Old-Age, <br/>
<a id="pl.93.7"></a><var>93.7</var>Survivors, and Disability Insurance tax.<br/>
<a id="pl.93.8"></a><var>93.8</var>    Subd. 4. <b>Annual tax rates.</b> The employer tax rates for the calendar year beginning <br/>
<a id="pl.93.9"></a><var>93.9</var>January 1, 2020, shall be as follows:<br/>
<a id="pl.93.10"></a><var>93.10</var>(1) for employers participating in both family and medical benefit programs, 0.09 <br/>
<a id="pl.93.11"></a><var>93.11</var>percent;<br/>
<a id="pl.93.12"></a><var>93.12</var>(2) for an employer participating in only the medical benefit program and opting out <br/>
<a id="pl.93.13"></a><var>93.13</var>of the family benefit program, 0.08 percent; and<br/>
<a id="pl.93.14"></a><var>93.14</var>(3) for an employer participating in only the family benefit program and opting out <br/>
<a id="pl.93.15"></a><var>93.15</var>of the medical benefit program, 0.01 percent.<br/>
<a id="pl.93.16"></a><var>93.16</var>    Subd. 5. <b>Tax rate adjustments.</b> (a) Each calendar year following the calendar year <br/>
<a id="pl.93.17"></a><var>93.17</var>beginning January 1, 2020, except calendar year 2021, the commissioner must adjust the <br/>
<a id="pl.93.18"></a><var>93.18</var>annual tax rates using the formula in paragraph (b).<br/>
<a id="pl.93.19"></a><var>93.19</var>(b) To calculate the employer tax rates for a calendar year, the commissioner must:<br/>
<a id="pl.93.20"></a><var>93.20</var>(1) multiply 1.45 times the amount disbursed from the account for the 52-week <br/>
<a id="pl.93.21"></a><var>93.21</var>period ending September 30 of the prior year;<br/>
<a id="pl.93.22"></a><var>93.22</var>(2) subtract the amount in the account on that September 30 from the resulting figure;<br/>
<a id="pl.93.23"></a><var>93.23</var>(3) divide the resulting figure by twice the total wages in covered employment of <br/>
<a id="pl.93.24"></a><var>93.24</var>employees of employers that have not opted out of both the family and medical benefit <br/>
<a id="pl.93.25"></a><var>93.25</var>programs. For employees of employers that have opted out of one of the two programs, <br/>
<a id="pl.93.26"></a><var>93.26</var>count only the proportion of wages in covered employment associated with the program of <br/>
<a id="pl.93.27"></a><var>93.27</var>which the employer did not opt out; and<br/>
<a id="pl.93.28"></a><var>93.28</var>(4) round the resulting figure down to the nearest one-tenth of one percent.<br/>
<a id="pl.93.29"></a><var>93.29</var>(c) For calendar year 2021, the calculation shall be as provided in paragraph <br/>
<a id="pl.93.30"></a><var>93.30</var>(b), except that the disbursements in clause (1) shall be those for the 39 weeks ending <br/>
<a id="pl.93.31"></a><var>93.31</var>September 30, and projected disbursements for the next 13 weeks.<br/>
<a id="pl.93.32"></a><var>93.32</var>(d) The commissioner must not increase or decrease the employer tax rate by more <br/>
<a id="pl.93.33"></a><var>93.33</var>than 0.1 percent each year.<br/>
<a id="pl.93.34"></a><var>93.34</var>(e) The commissioner must apportion the tax rate between the family and medical <br/>
<a id="pl.93.35"></a><var>93.35</var>benefit programs based on the relative proportion of expenditures for each program during <br/>
<a id="pl.93.36"></a><var>93.36</var>the preceding year.<br/>
<a id="pl.94.1"></a><var>94.1</var>    Subd. 6. <b>Tax rate limits.</b> The aggregate tax rate of employers and employees under <br/>
<a id="pl.94.2"></a><var>94.2</var>this chapter must not be less than 0.01 percent or more than 1.5 percent annually.<br/>
<a id="pl.94.3"></a><var>94.3</var>    Subd. 7. <b>Collection of taxes; efficiencies.</b> For collection of taxes under this section, <br/>
<a id="pl.94.4"></a><var>94.4</var>the commissioner must, to the maximum extent possible, use the same collection process <br/>
<a id="pl.94.5"></a><var>94.5</var>as that used for collection of unemployment insurance taxes.<br/>
<a id="pl.94.6"></a><var>94.6</var>    Subd. 8. <b>Deposit of taxes.</b> All taxes collected under this section must be deposited <br/>
<a id="pl.94.7"></a><var>94.7</var>into the account.<br/>
<br/>
<a id="bill.6.26.0"></a><a id="pl.94.8"></a><var>94.8</var>    Sec. 26. <b>[268B.13] COLLECTION OF TAXES.</b><br/>
<a id="pl.94.9"></a><var>94.9</var>    Subdivision 1. <b>Amount computed presumed correct.</b> Any amount due from an <br/>
<a id="pl.94.10"></a><var>94.10</var>employer, as computed by the commissioner, is presumed to be correctly determined and <br/>
<a id="pl.94.11"></a><var>94.11</var>assessed, and the burden is upon the employer to show its incorrectness. A statement <br/>
<a id="pl.94.12"></a><var>94.12</var>by the commissioner of the amount due is admissible in evidence in any court or <br/>
<a id="pl.94.13"></a><var>94.13</var>administrative proceeding and is prima facie evidence of the facts in the statement.<br/>
<a id="pl.94.14"></a><var>94.14</var>    Subd. 2. <b>Priority of payments.</b> (a) Any payment received from an employer must <br/>
<a id="pl.94.15"></a><var>94.15</var>be applied in the following order:<br/>
<a id="pl.94.16"></a><var>94.16</var>(1) taxes due under this chapter; then<br/>
<a id="pl.94.17"></a><var>94.17</var>(2) interest on past due taxes; then<br/>
<a id="pl.94.18"></a><var>94.18</var>(3) penalties, late fees, administrative service fees, and costs.<br/>
<a id="pl.94.19"></a><var>94.19</var>    (b) Paragraph (a) is the priority used for all payments received from an employer, <br/>
<a id="pl.94.20"></a><var>94.20</var>regardless of how the employer may designate the payment to be applied, except when:<br/>
<a id="pl.94.21"></a><var>94.21</var>    (1) there is an outstanding lien and the employer designates that the payment made <br/>
<a id="pl.94.22"></a><var>94.22</var>should be applied to satisfy the lien;<br/>
<a id="pl.94.23"></a><var>94.23</var>    (2) a court or administrative order directs that the payment be applied to a specific <br/>
<a id="pl.94.24"></a><var>94.24</var>obligation;<br/>
<a id="pl.94.25"></a><var>94.25</var>    (3) a preexisting payment plan provides for the application of payment; or<br/>
<a id="pl.94.26"></a><var>94.26</var>    (4) the commissioner agrees to apply the payment to a different priority.<br/>
<a id="pl.94.27"></a><var>94.27</var>    Subd. 3. <b>Costs.</b> (a) Any employer that fails to pay any amount when due under this <br/>
<a id="pl.94.28"></a><var>94.28</var>chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral <br/>
<a id="pl.94.29"></a><var>94.29</var>to any public or private collection agency, or litigation costs, including attorney fees, <br/>
<a id="pl.94.30"></a><var>94.30</var>incurred in the collection of the amounts due.<br/>
<a id="pl.94.31"></a><var>94.31</var>    (b) If any tendered payment of any amount due is not honored when presented to a <br/>
<a id="pl.94.32"></a><var>94.32</var>financial institution for payment, any costs assessed to the department by the financial <br/>
<a id="pl.94.33"></a><var>94.33</var>institution and a fee of $25 must be assessed to the person.<br/>
<a id="pl.94.34"></a><var>94.34</var>    (c) Costs and fees collected under this subdivision are credited to the account.<br/>
<a id="pl.95.1"></a><var>95.1</var>    Subd. 4. <b>Interest on amounts past due.</b> If any amounts due from an employer <br/>
<a id="pl.95.2"></a><var>95.2</var>under this chapter, except late fees, are not received on the date due, the unpaid balance <br/>
<a id="pl.95.3"></a><var>95.3</var>bears interest at the rate of one percent per month or any part of a month. Interest collected <br/>
<a id="pl.95.4"></a><var>95.4</var>under this subdivision is payable to the account.<br/>
<a id="pl.95.5"></a><var>95.5</var>    Subd. 5. <b>Interest on judgments.</b> Regardless of section 
<statute_ref>549.09</statute_ref>, if judgment is <br/>
<a id="pl.95.6"></a><var>95.6</var>entered upon any past due amounts from an employer under this chapter, the unpaid <br/>
<a id="pl.95.7"></a><var>95.7</var>judgment bears interest at the rate specified in subdivision 4 until the date of payment.<br/>
<a id="pl.95.8"></a><var>95.8</var>    Subd. 6. <b>Credit adjustments; refunds.</b> (a) If an employer makes an application for <br/>
<a id="pl.95.9"></a><var>95.9</var>a credit adjustment of any amount paid under this chapter within four years of the date <br/>
<a id="pl.95.10"></a><var>95.10</var>that the payment was due, in a manner and format prescribed by the commissioner, and <br/>
<a id="pl.95.11"></a><var>95.11</var>the commissioner determines that the payment or any portion thereof was erroneous, <br/>
<a id="pl.95.12"></a><var>95.12</var>the commissioner must make an adjustment and issue a credit without interest. If a <br/>
<a id="pl.95.13"></a><var>95.13</var>credit cannot be used, the commissioner must refund, without interest, the amount <br/>
<a id="pl.95.14"></a><var>95.14</var>erroneously paid. The commissioner, on the commissioner's own motion, may make a <br/>
<a id="pl.95.15"></a><var>95.15</var>credit adjustment or refund under this subdivision.<br/>
<a id="pl.95.16"></a><var>95.16</var>    (b) Any refund returned to the commissioner is considered unclaimed property <br/>
<a id="pl.95.17"></a><var>95.17</var>under chapter 345.<br/>
<a id="pl.95.18"></a><var>95.18</var>    (c) If a credit adjustment or refund is denied in whole or in part, a determination of <br/>
<a id="pl.95.19"></a><var>95.19</var>denial must be sent to the employer by United States mail or electronic transmission. The <br/>
<a id="pl.95.20"></a><var>95.20</var>determination of denial is final unless an employer files an appeal within 20 calendar days <br/>
<a id="pl.95.21"></a><var>95.21</var>after receipt of the determination.<br/>
<a id="pl.95.22"></a><var>95.22</var>    Subd. 7. <b>Priorities under legal dissolutions or distributions.</b> In the event of <br/>
<a id="pl.95.23"></a><var>95.23</var>any distribution of an employer's assets according to an order of any court, including <br/>
<a id="pl.95.24"></a><var>95.24</var>any receivership, assignment for benefit of creditors, adjudicated insolvency, or similar <br/>
<a id="pl.95.25"></a><var>95.25</var>proceeding, taxes then or thereafter due must be paid in full before all other claims, <br/>
<a id="pl.95.26"></a><var>95.26</var>except claims for wages of not more than $1,000 per former employee that are earned <br/>
<a id="pl.95.27"></a><var>95.27</var>within six months of the commencement of the proceedings. In the event of an employer's <br/>
<a id="pl.95.28"></a><var>95.28</var>adjudication in bankruptcy under federal law, taxes then or thereafter due are entitled to <br/>
<a id="pl.95.29"></a><var>95.29</var>the priority provided in that law for taxes due.<br/>
<br/>
<a id="bill.6.27.0"></a><a id="pl.95.30"></a><var>95.30</var>    Sec. 27. <b>[268B.14] ADMINISTRATIVE COSTS.</b><br/>
<a id="pl.95.31"></a><var>95.31</var>For the calendar year beginning January 1, 2020, and each calendar year thereafter, <br/>
<a id="pl.95.32"></a><var>95.32</var>the commissioner may spend up to seven percent of projected benefit payments for that <br/>
<a id="pl.95.33"></a><var>95.33</var>calendar year for the administration of this chapter.<br/>
<br/>
<a id="bill.6.28.0"></a><a id="pl.95.34"></a><var>95.34</var>    Sec. 28. <b>[268B.15] PUBLIC OUTREACH.</b><br/>
<a id="pl.96.1"></a><var>96.1</var>The commissioner may use administrative funds for the purpose of outreach and <br/>
<a id="pl.96.2"></a><var>96.2</var>education for employees regarding this chapter. This may include providing grants to <br/>
<a id="pl.96.3"></a><var>96.3</var>public and private persons and entities.<br/>
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<a id="bill.6.29.0"></a><a id="pl.96.4"></a><var>96.4</var>    Sec. 29. <b>[268B.16] APPLICANT'S FALSE REPRESENTATIONS; </b><br/>
<a id="pl.96.5"></a><var>96.5</var><b>CONCEALMENT OF FACTS; PENALTY.</b><br/>
<a id="pl.96.6"></a><var>96.6</var>(a) Any applicant who knowingly makes a false statement or representation, <br/>
<a id="pl.96.7"></a><var>96.7</var>knowingly fails to disclose a material fact, or makes a false statement or representation <br/>
<a id="pl.96.8"></a><var>96.8</var>without a good-faith belief as to the correctness of the statement or representation, in order <br/>
<a id="pl.96.9"></a><var>96.9</var>to obtain or in an attempt to obtain benefits may be assessed, in addition to any other <br/>
<a id="pl.96.10"></a><var>96.10</var>penalties, an administrative penalty of ineligibility of benefits for 13 to 104 weeks.<br/>
<a id="pl.96.11"></a><var>96.11</var>(b) A determination of ineligibility setting out the weeks the applicant is ineligible <br/>
<a id="pl.96.12"></a><var>96.12</var>must be sent to the applicant by United States mail or electronic transmission. The <br/>
<a id="pl.96.13"></a><var>96.13</var>determination is final unless an appeal is filed within 30 calendar days after receipt of <br/>
<a id="pl.96.14"></a><var>96.14</var>the determination.<br/>
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<a id="bill.6.30.0"></a><a id="pl.96.15"></a><var>96.15</var>    Sec. 30. <b>[268B.17] EMPLOYER MISCONDUCT; PENALTY.</b><br/>
<a id="pl.96.16"></a><var>96.16</var>(a) The commissioner must penalize an employer if that employer or any employee, <br/>
<a id="pl.96.17"></a><var>96.17</var>officer, or agent of that employer is in collusion with any applicant for the purpose of <br/>
<a id="pl.96.18"></a><var>96.18</var>assisting the applicant in receiving benefits fraudulently. The penalty is $500 or the <br/>
<a id="pl.96.19"></a><var>96.19</var>amount of benefits determined to be overpaid, whichever is greater.<br/>
<a id="pl.96.20"></a><var>96.20</var>    (b) The commissioner must penalize an employer if that employer or any employee, <br/>
<a id="pl.96.21"></a><var>96.21</var>officer, or agent of that employer:<br/>
<a id="pl.96.22"></a><var>96.22</var>    (1) made a false statement or representation knowing it to be false;<br/>
<a id="pl.96.23"></a><var>96.23</var>    (2) made a false statement or representation without a good-faith belief as to the <br/>
<a id="pl.96.24"></a><var>96.24</var>correctness of the statement or representation; or<br/>
<a id="pl.96.25"></a><var>96.25</var>    (3) knowingly failed to disclose a material fact.<br/>
<a id="pl.96.26"></a><var>96.26</var>    (c) The penalty is the greater of $500 or 50 percent of the following resulting from <br/>
<a id="pl.96.27"></a><var>96.27</var>the employer's action:<br/>
<a id="pl.96.28"></a><var>96.28</var>(1) the amount of any overpaid benefits to an applicant;<br/>
<a id="pl.96.29"></a><var>96.29</var>(2) the amount of benefits not paid to an applicant that would otherwise have <br/>
<a id="pl.96.30"></a><var>96.30</var>been paid; or<br/>
<a id="pl.96.31"></a><var>96.31</var>(3) the amount of any payment required from the employer under this chapter that <br/>
<a id="pl.96.32"></a><var>96.32</var>was not paid.<br/>
<a id="pl.96.33"></a><var>96.33</var>    (d) Penalties must be paid within 30 calendar days of issuance of the determination <br/>
<a id="pl.96.34"></a><var>96.34</var>of penalty and credited to the account.<br/>
<a id="pl.97.1"></a><var>97.1</var>    (e) The determination of penalty is final unless the employer files an appeal within <br/>
<a id="pl.97.2"></a><var>97.2</var>30 calendar days after the sending of the determination of penalty to the employer by <br/>
<a id="pl.97.3"></a><var>97.3</var>United States mail or electronic transmission.<br/>
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<a id="bill.6.31.0"></a><a id="pl.97.4"></a><var>97.4</var>    Sec. 31. <b>[268B.18] RECORDS; AUDITS.</b><br/>
<a id="pl.97.5"></a><var>97.5</var>(a) Each employer must keep true and accurate records on individuals performing <br/>
<a id="pl.97.6"></a><var>97.6</var>services for the employer, containing the information the commissioner may require <br/>
<a id="pl.97.7"></a><var>97.7</var>under this chapter. The records must be kept for a period of not less than four years <br/>
<a id="pl.97.8"></a><var>97.8</var>in addition to the current calendar year.<br/>
<a id="pl.97.9"></a><var>97.9</var>    (b) For the purpose of administering this chapter, the commissioner has the power to <br/>
<a id="pl.97.10"></a><var>97.10</var>investigate, audit, examine, or cause to be supplied or copied, any books, correspondence, <br/>
<a id="pl.97.11"></a><var>97.11</var>papers, records, or memoranda that are the property of, or in the possession of, an <br/>
<a id="pl.97.12"></a><var>97.12</var>employer or any other person at any reasonable time and as often as may be necessary.<br/>
<a id="pl.97.13"></a><var>97.13</var>    (c) An employer or other person that refuses to allow an audit of its records by the <br/>
<a id="pl.97.14"></a><var>97.14</var>department or that fails to make all necessary records available for audit in the state upon <br/>
<a id="pl.97.15"></a><var>97.15</var>request of the commissioner may be assessed an administrative penalty of $500. The <br/>
<a id="pl.97.16"></a><var>97.16</var>penalty collected is credited to the account.<br/>
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<a id="bill.6.32.0"></a><a id="pl.97.17"></a><var>97.17</var>    Sec. 32. <b>[268B.19] SUBPOENAS; OATHS.</b><br/>
<a id="pl.97.18"></a><var>97.18</var>    (a) The commissioner or benefit judge has authority to administer oaths and <br/>
<a id="pl.97.19"></a><var>97.19</var>affirmations, take depositions, certify to official acts, and issue subpoenas to compel the <br/>
<a id="pl.97.20"></a><var>97.20</var>attendance of individuals and the production of documents and other personal property <br/>
<a id="pl.97.21"></a><var>97.21</var>necessary in connection with the administration of this chapter.<br/>
<a id="pl.97.22"></a><var>97.22</var>    (b) Individuals subpoenaed, other than applicants or officers and employees of an <br/>
<a id="pl.97.23"></a><var>97.23</var>employer that is the subject of the inquiry, must be paid witness fees the same as witness <br/>
<a id="pl.97.24"></a><var>97.24</var>fees in civil actions in district court. The fees need not be paid in advance.<br/>
<a id="pl.97.25"></a><var>97.25</var>    (c) The subpoena is enforceable through the district court in Ramsey County.<br/>
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<a id="bill.6.33.0"></a><a id="pl.97.26"></a><var>97.26</var>    Sec. 33. <b>[268B.20] MEDIATION AND CONCILIATION.</b><br/>
<a id="pl.97.27"></a><var>97.27</var>The department must offer mediation and conciliation services to employers and <br/>
<a id="pl.97.28"></a><var>97.28</var>applicants to resolve disputes concerning benefits under this chapter. The commissioner <br/>
<a id="pl.97.29"></a><var>97.29</var>shall notify parties of the availability of those services and may by rule extend appeal <br/>
<a id="pl.97.30"></a><var>97.30</var>deadlines to accommodate conciliation and mediation.<br/>
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<a id="bill.6.34.0"></a><a id="pl.97.31"></a><var>97.31</var>    Sec. 34. Minnesota Statutes 2014, section 270B.14, subdivision 2, is amended to read:<br/>
<a id="pl.98.1"></a><var>98.1</var>    Subd. 2. <b>Disclosure to Department of Employment and Economic Development.</b><br/>
<a id="pl.98.2"></a><var>98.2</var>(a) Data relating to individuals are treated as follows:<br/>
<a id="pl.98.3"></a><var>98.3</var>(1) Return information may be disclosed to the Department of Employment and <br/>
<a id="pl.98.4"></a><var>98.4</var>Economic Development to the extent provided in clause (2) and for the purposes provided <br/>
<a id="pl.98.5"></a><var>98.5</var>in clause (3).<br/>
<a id="pl.98.6"></a><var>98.6</var>(2) The data that may be disclosed is limited to the amount of gross income earned by <br/>
<a id="pl.98.7"></a><var>98.7</var>an individual, the total amounts of earnings from each employer, and the employer's name.<br/>
<a id="pl.98.8"></a><var>98.8</var>(3) Data may be requested pertaining only to individuals who have claimed benefits <br/>
<a id="pl.98.9"></a><var>98.9</var>under sections 
         <statute_ref>268.03</statute_ref> to 
         <statute_ref>268.23</statute_ref> and 268B.01 to 268B.20 and only if the individuals are <br/>
<a id="pl.98.10"></a><var>98.10</var>the subject of investigations based on other information available to the Department of <br/>
<a id="pl.98.11"></a><var>98.11</var>Employment and Economic Development. Data received may be used only as set forth in <br/>
<a id="pl.98.12"></a><var>98.12</var>section 
         <statute_ref>268.19, subdivision 1</statute_ref>, paragraph (b).<br/>
<a id="pl.98.13"></a><var>98.13</var>(b) Data pertaining to corporations or other employing units may be disclosed to <br/>
<a id="pl.98.14"></a><var>98.14</var>the Department of Employment and Economic Development to the extent necessary for <br/>
<a id="pl.98.15"></a><var>98.15</var>the proper enforcement of chapter chapters 268 and 268B.<br/>
<a id="pl.98.16"></a><var>98.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
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<a id="bill.6.35.0"></a><a id="pl.98.17"></a><var>98.17</var>    Sec. 35. <b>INITIAL TAX RATES FOR FAMILY AND MEDICAL BENEFIT </b><br/>
<a id="pl.98.18"></a><var>98.18</var><b>PROGRAM.</b><br/>
<a id="pl.98.19"></a><var>98.19</var>Notwithstanding any other law to the contrary, the tax rate for employers subject <br/>
<a id="pl.98.20"></a><var>98.20</var>to tax under Minnesota Statutes, section 268B.12, and employees in an equal amount, is <br/>
<a id="pl.98.21"></a><var>98.21</var>0.045 percent in calendar year 2019.<br/>
<a id="pl.98.22"></a><var>98.22</var><b>EFFECTIVE DATE.</b>This section is effective August 1, 2016.<br/>
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<a id="bill.6.36.0"></a><a id="pl.98.23"></a><var>98.23</var>    Sec. 36. <b>FAMILY AND MEDICAL LEAVE BENEFIT PROGRAM; </b><br/>
<a id="pl.98.24"></a><var>98.24</var><b>APPROPRIATION.</b><br/>
<a id="pl.98.25"></a><var>98.25</var>$6,983,000 in fiscal year 2017 is appropriated from the general fund to the <br/>
<a id="pl.98.26"></a><var>98.26</var>commissioner of employment and economic development for the purposes of Minnesota <br/>
<a id="pl.98.27"></a><var>98.27</var>Statutes, chapter 268B. The base for fiscal year 2018 is $9,201,000, the base for fiscal year <br/>
<a id="pl.98.28"></a><var>98.28</var>2019 is $9,667,000, and the base for fiscal years 2020 and later is zero.<br/>
<a id="pl.98.29"></a><var>98.29</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2016.<br/>
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<a id="bill.6.37.0"></a><a id="pl.98.30"></a><var>98.30</var>    Sec. 37. <b>EFFECTIVE DATE INTENTION.</b><br/>
<a id="pl.98.31"></a><var>98.31</var>The intention of the legislature is that benefits under Minnesota Statutes, chapter <br/>
<a id="pl.98.32"></a><var>98.32</var>268B, shall not be applied for nor paid until January 1, 2020, and thereafter. The sections <br/>
<a id="pl.99.1"></a><var>99.1</var>of this article are effective August 1, 2016, unless specifically provided otherwise in <br/>
<a id="pl.99.2"></a><var>99.2</var>this article.<br/>